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Cooperative management is often incorrectly thought of as including only the manager hired by the board of trustees and the manager's key staff. This is far from the truth. Cooperative management should be regarded as a team consisting of four (4) elements.

• members as the owner-users,
• board of directors, as the policy making body,
• hired management, as the General Manager, and
• employees as the work force.

Each part of the team has its own distinctive duties and responsibilities for performing management functions at the cooperative. This allows them definite, reserved rights in the ownership and control of the business. These  important rights give them the privilege of taking an active part in the management of the cooperative. To be effective, each must exercise rights; otherwise, they will have no voice.

Successful management of a cooperative is based on intelligent and active cooperation of the members with the board and with the manager/employees with each group shouldering its own responsibilities to the best of its ability.

Part 1, General Manager/CEO: In a cooperative, the board of directors decides what the cooperative will do; the general manager and immediate staff decide how it can best be done (subject to board review)so as to achieve the basic objective of serving members effectively. Under ideal conditions, the general manager's principle tasks are planning, reporting to the board of directors, conferring with key supervisors, maintaining good organizational relations, and controlling the cooperative's operations.

Responsibilities of the General Manager:
• Supervises and coordinates (under board direction) the business activities of the co-op by managing people, capital, and physical resources.

• Oversees the detailed operations of the cooperative, within the policies established by the board of directors and recommends changes and additions when necessary. Management's job is to implement those policies. For example, the purchase of inventory and sale of commodities, the general appearance of the co-op, and employees of the cooperative.

• Hires, trains, supervises, and sets compensation for employees. He/she also needs to review the performance and replaces those employees not meeting acceptable performance levels. This reinforces the need for having clear job descriptions for all employees.

• Maintains and revises as necessary an adequate bookkeeping and accounting system; develops for board approval a financial budget annually; prepares proper financial reports regularly for board review; and presents to the co-op membership at the annual meeting, a report of the cooperative's operational highlights.

• Furnishes information needed for long-range planning. This will bring matters such as fixed asset additions or revisions to the board's attention for review. He/she also should make recommendations that assist in reviewing the organization's objectives and goals establishing policies, regulations, and programs, and making related plans. Based on those objectives, the manager sets goals and makes short-range plans involving the daily business of the
co-op, subject to board approval.

• Represents the cooperative and portrays a positive image to members and others in the community. He/she needs to: 1) encourage membership and active patronage; 2) communicate developments of the cooperative to members; 3) educate the general public about the co-op and its activities; and 4) keep current on issues, local, state, and federal regulations, and pending legislation affecting cooperatives.

Next month I will discuss the responsibilities of employees. I pray everyone has a safe month.