Manager and Employees

Managers

Success of a cooperative largely depends on good board/ manager relationships. The working relationship between board and general manager requires respect and an understanding of each other's responsibilities.

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.

The manager is selected by the board and accountable to it for his/her actions. The manager should therefore not be a part of the board. The manager should, however, attend all board meetings and be an active, nonvoting participant.

The manager controls the ongoing activity of the cooperative. Responsibilities of the general manager include:

Supervise and coordinate, under board direction, the business activities of the co-op by managing the people, capital, and physical resources.

Hire, train, supervise, and set compensation for employees. The manager also needs to review their performance and train, reassign, or replace those employees not meeting acceptable performance levels.

Oversee the detailed operations of the cooperative, within policies established by the board of directors, such as purchasing inventory and selling commodities, maintaining the general appearance of the co-op, and making sure employees respond to member needs.

Maintain, and revise as necessary, an adequate bookkeeping and accounting system; develop for board approval a financial budget annually; prepare proper financial reports regularly for board review; and present a report of the cooperative's operational highlights to the membership at the annual meeting.

Furnish information needed for long-range planning. This will bring matters, such as fixed asset additions or revisions, to the board's attention for review.

Represent the cooperative and portray a positive image to members and others in the community.

Encourage membership and active patronage.

Communicate developments at the cooperative to members.

Keep current on local, State, and Federal legislative and regulatory developments affecting cooperatives.

Employees

In many ways, working for a cooperative is similar to doing the same job at a noncooperative firm. But special features of a cooperative--the role of the member-owner as user and the emphasis on service over bottom-line numbers--place unique obligations on the employees.

1. Understand the purpose and objectives of the cooperative. Employees need to know how cooperatives are different from other methods of doing business. By understanding cooperative purposes, objectives, operations and their role as employees, they can help improve member relations, the cooperative's image and the general public's understanding of cooperatives.

2. Fully perform duties. In many cooperatives, like other business firms, the largest operating expense is for personnel. While the cooperative has responsibility for recruiting and providing training, the employee is responsible for using these opportunities to provide the best possible service to members.

3. Understand the relationship to member-owners. All employees have a responsibility to maintain a high level of customer satisfaction and good relations between the cooperative organization and its member-users. Immediate feedback from members should be encouraged to keep the manager informed of problems, needs and customer satisfaction.
The employee role is particularly important in larger cooperatives. The only cooperative employees that members may encounter regularly, from annual meeting to annual meeting, may be the individual pumping the gas, the cashier, the person answering the telephone, the truck driver picking up their milk or delivering a product. To the average member, they are the voice of the cooperative.

4. Favorably represent the cooperative. Employees help build the cooperative's image as they serve members and the community--both on and off the cooperative's premises. Employees should keep the premises clean and attractive; make sure equipment and service tools are operating; serve members pleasantly, promptly, and in the order promised and take an extra step to give members satisfactory service.
Employees, like their manager, can be community boosters by taking part in religious, school or community affairs. Their efforts can positively affect the cooperative image held by members, the general public and other businesses.