060 218 Icm2011 Pg0804 0837 Multipurpose Cooperatives

INTERNATIONAL CONFERENCE ON MANAGEMENT (ICM 2011) PROCEEDING
804

THE PERFORMANCE OF MULTI-PURPOSE
COOPERATIVES IN THE FIRST DISTRICT OF THE
PROVINCE OF ORIENTAL MINDORO, PHILIPPINES

Jesse T. Zamora, Ed.D. and
Christian Anthony C. Agutaya, Ph.D.
College President and Research and Evaluation In-charge
Mindoro State College of Agriculture
and Technology (MINSCAT)
Alcate, Victoria
Oriental Mindoro, Philippines

Contact Numbers: +639205353899, +63432884229
christian_agutaya@yahoo.com

Abstract

Cooperativism today is a growing movement that appears to have been
widely appreciated in Third World Countries. Cooperatives have been perceived
to effect meaningful changes particularly to the masses. Specifically, through
cooperativism, an individual can increase his income and purchasing power; he
can stimulate capital formation through systematic and continuous savings for
productive and development purposes and he can develop human resources as
tools in community development.

Cooperatives are products of group cooperation. People with
common interests and needs for work together satisfy these needs.
However, the abilities of people to promote their common interests and
satisfy their needs greatly depend on the available human, financial and
material resources they possess.

The highlight of this study included the different views on the role of
members, possible areas of their involvement and the performance of multi-
purpose cooperatives in the First District of the Province of Oriental Mindoro,
Philippines.

Field Research: Operation and Management Performance

805

Introduction

Integral to human nature is for man to associate with others for his
own welfare and well-being. This need for mutuality and fellowship is the
foundation of cooperative efforts.

Cooperation is being seriously considered as the best possible
alternative mode of organizing business to assure economic and social
stability.

The best way for people to participate in the local development and
local governance is through the cooperatives. Cooperatives are
advantageous to the people because they advocate democratic and
voluntary membership with common needs and interests, bonded by the
shared spirit of mutual understanding, cooperation and respect. These are
where development permits can be better met and carried out. Sustainable
development prospers in an environment of peace, cooperation, unity,
understanding, respect, equity and social justice.

Cooperatives when imbued with these very elements can be a fast-
tracking mechanism in ensuring sustainable development. Governed by the
universal principles of cooperativism, the cooperatives play a vital role in
educating their members and through which the economic, political,
cultural and social, scientific and technological as well as moral aspects of
development can be enhanced. People are the center piece of all
developmental efforts and interests of cooperatives, therefore, people in the
communities, when harnessed through their continuing cooperative
education and training programs, can indeed be effective partners of
sustainable development activities.

The Philippine government, in the past, took an active and
aggressive role in the promotion and organization of cooperatives. By
means of crash programs, the government extended technical and
financial assistance to cooperatives. The result was a dismal and expensive
failure. Learning from such mistakes, the government has assumed a more
rational role in cooperative development.

Oriental Mindoro is highly dependent upon agriculture. More than
half of the populations were engaged in agriculture, hunting and forestry.
806

Exports comprise primarily agricultural products. The province remains to
be the food basket in Region IV.

The development of commercial and industrial sectors is some parts
of the province have led to the formation of multi-purpose cooperatives
which have also made their mark in the local economy.

First District is located in the upper half portion of the Province of
Oriental Mindoro. It lies just south of Metro Manila and Batangas and is
composed of seven (7) towns and one (1) city such as Puerto Galera, San
Teodoro, Baco, Calapan City, Naujan, Victoria, Socorro, and Pola.

First District of Oriental Mindoro, despite the technological
development that happens in the country remains basically an agricultural
district. The principal crops are rice, corn, fruits, vegetables, coconut and
lumber. The major industries are farming, fishing, tourism and cottage
industries.

Currently, First District is the hub of investments due to its
proximity to Metro Manila, its rich natural resources and availability of
skilled/trained labor force, and favorable peace and order climate.

Food security and agro-industrialization have turned the First
District into one of the countrys tap agricultural and economic zones.
Hence, 15 multi-purpose cooperatives contribute to the development of the
district.

The premised of the foregoing ideas inspired the researcher to
conduct a study on the performance of multi-purpose cooperatives in the
First District of the Province of Oriental Mindoro, Philippines.

Theoretical Framework

This study was anchored on the most important theories about
organization.
Katz and Kahn (2004) revealed that system theory is basically
concerned with problems of relationships, of structures, and of
interdependence, rather than with the constant attributes of object. Webster
defines a system as a regularly interacting or interdependent group of items
forming a unified whole, which is in, or tends to be in, equilibrium.
807

Negandi, as cited in the book of Katz and Kahn, said that a system's
attributes, which are the interdependence and interlinking of various
subsystems within a given system, and the tendency toward attaining a
balance, or equilibrium forces one to think in terms of multiple causation in
contrast to the common habit of thinking in single-cause terms.
In addition, an organization must be an open system that includes
interaction between subsystem and its external environment. Open systems
can be defined as a system of interdependent activities, that is, systems are
neither a formal structure nor as an organic entity. As described by Scott in
the book of Katz and Kahn, the parts of systems join and leave or engage in
ongoing exchanges with the organization depending on the bargains they
can strike. Some of these activities are tightly connected; others are loosely
coupled. That is, all of the parts must be continuously motivated to
produce and reproduce in a system. Scott also emphasized that systems are
interdependent activities linking shifting coalitions of participants; the
systems are embedded in - dependent on continuing exchanges with and
constituted by - the environments in which they operate.
The salient characteristic of an open system is a self-maintenance
based on a process of resources from the environment and interaction with
the environment. Katz and Kahn summarized the essential characteristics of
open systems as follows: The open-system approach begins by identifying
and mapping the repeated cycles of inputs, transformation, output and
renewed inputs which comprise the organizational patterns. Organizations
as a special class of open systems have properties of their own, but they
share other properties in common with all open systems. These include the
importation of energy from the environment, the through-put or
transformation of the imported energy into some product form... the
exporting of that product into the environment, and the re-energizing of the
system from sources in the environment. Open systems also share the
characteristics of negative entropy, feedback, homeostasis, differentiation,
and equifinality. The law of negative entropy states that systems survive
and maintain their characteristic internal order only as long as they import
from the environment more energy than they expend in the process of
transformation and exportation." A system is a functional whole composed
of set of subsystems and components, when coupled together, generate a
level of organization that is fundamentally different from the level of each
individual subsystem. General systems theorists believe that, in spite of
the obvious differences among the many kinds of living and nonliving
systems, they share very general characteristics and that it is important to
808

discover what these are. The study of systems is by definition concerned
with change.
More so, subsystems or parts of a system are systems at the level
below the one of which they are parts. Each of a living system's subsystem,
like the system as a whole, keeps a number of variables in steady state
(Levine and Fitzgerald, 1992). A system's function and structure may be
studied, analyzed and described through basic subsystems.
Hoy and Miskel (2006) outlined the following subsystems with
genotype functions:
1. Production and Technical Subsystem. This subsystem is
concerned with converting inputs into outputs and may also be classified as
a productive or economic part, which creates wealth, manufactures goods,
and provides services, that is an organization that provides services.
2. Supportive Subsystem. Two major functions of concern here are:
(a) procuring input and disposing output; and (b) promoting and
maintaining good relationships between the organization and its
environment.
3. Maintenance Subsystem. Activities of this subsystem deal with
personnel in the organization in all facets (e.g. role, arrangements,
recruiting, selecting, motivating, disciplining, and socializing). The focus
is on maintaining stability of the organization.
4. Adaptive subsystem. The functions of this subsystem are
designed to insure that the organization can meet the changing needs of the
environment (e.g. research, planning, development and so on).
5. Managerial subsystem. The function of this subsystem is to
coordinate the functions of the other subsystems, settle conflicts among
them and hierarchical levels, and relate the total organization to its
environment. This subsystem cuts across all subsystems of the
organization in its goal to encourage all the subsystems to obtain a
concerted effort to achieve the highest level of functioning of the total
system.

Systems theory is very related to the present research because
cooperatives are vitally considered as system which depend on the three
809

dimensions like input, process and output. The researcher perceives that
resources (described as inputs) are very important in transforming them into
outputs. In this study, the cooperatives personnel complement financial
resources and programs could help them satisfy their members through the
economic related projects they undertake. However, the manner by which
these programs are undertaken is dependent on what process will be
employed. Management practice advanced by these cooperatives are
attributed to be the effective use of techniques in program implementation.

Corollary to the systems theory is the path-goal theory. The life
and future of cooperative greatly depend on dynamic leadership. It has to
sustain its increasing roles and responsibilities. It has to anticipate needs
and problems and move forward. Otherwise, it remains stagnant, its
relevance and economic viability may likely disappear. And this dynamic
leadership is best defined in the Path-Goal Approach to Leadership
Effectiveness by Robert House (Santos, 1999).

According to this theory, the behavior of the leader is acceptable and
satisfies subordinates to the extent that they see it as a source for their
satisfaction. Another proposition of the theory is that behavior of the leader
increases the effort of subordinates, that is, it is motivating, in so far as this
behavior makes satisfaction of the needs of subordinates dependent on
effective performance and the behavior enhances the subordinates
environment through coaching, directing, supporting and rewarding.

Therefore, the leaders function consists of increasing the number
and kinds of personal payoffs to subordinates for work-goal attainment, and
making paths for these payoffs easier to travel by clarifying the paths,
reducing the roadblocks and pitfalls, and increasing opportunities for
personal satisfaction. The theory is more a research tool for understanding
leadership style than a proven guide for managerial action.

The key to the theory is that the leader influences the paths between
behavior goals. The leader can do this by defining positions and task roles,
by removing obstacles to performance, by enlisting the assistance of group
members in setting goals, by promoting group cohesiveness and team
effort, by increasing opportunities for personal satisfaction in work
performance, by reducing stresses and external controls, by making
expectation clear and by doing other things that meet people expectation.

810

The path goal theory guides the practicing cooperative managers. At
the same time, one must realize that models further testing before the
approach can be used as a definite guide for managerial action.

In addition, the theory of Social Change by Durkheim
(Todaro, 1997) states that economic development only occurs in the
community if the need is perceived by the people who depend on the social,
economic and political agenda of a nation. Cooperatives, which have been
acknowledged to fill the void created by corrupt and inept government
officials and the bureaucratic system, are very popular and hailed to have
improved the quality of life of their beneficiaries. This is because
cooperatives are helpful in delivering basic services like health nutrition,
education and credit facility. This goal of cooperatives, anchored on their
visions and ultimate aims, liberate the beneficiaries from the clutches of
economic deprivation, cultural backwardness and political slavery.

Durkheim expanded this theory by saying that the beneficiaries of
economic changes are bonded by common outlooks, values, ideas and life
principles wherein development evolves from simple to highly beneficial
ones. The organizations, states and entities delivering economic benefits,
in particular, accompany social advancements and political awakening as
chain reaction wrought by the program. Durkheim found that people
benefited by social developments should be closely bonded.

This theory is binding to the present research study. It explicitly
explains that cooperatives are very instrumental in delivering benefits that
serviced beneficiaries, thus bringing development to the members in
particular and to the community in general. In this study, multi-purpose
cooperatives are credited for creating many development and changes that
occurred in the lives of their members. These are undoubtedly as results of
unity of ideas, values and perceptions. People's dealings of benefits require
them to be bonded in the name of the cooperatives articles of cooperation
and principles governing their existence. Economic change is supported by
social changes that is made to exist by these cooperatives through their
programs and projects.
In connection with the previous theory mentioned, economic
development theory is also worth mentioning for the purpose of
justification.
811

Myrdal (Villegas and Abola, 2000), meanwhile opines that
economic progress is a very essential component of development although
non-economic factors such as values, attitudes, institutions and policies are
just as important.

In addition, he views the condition of the South Asias' Regions as a
social system which is made up of a number of conditions with the
following categories:

a. Output and incomes. What a country produces and how
much its people earn for their efforts play a central role in the
study of development.

b. Levels of productivity. Closely related with the same
category, it directly affects the directions and intensity of
economic activity. Myrdal mentions that in an
underdeveloped country, the industrial sector is small, the
techniques used in agricultural and traditional industries are
crude and capital investment is not significant.

c. Levels of Living. The amount and quality of goods and
services regularly consumed by the average person. Low
levels of living is one of the components of
underdevelopment.

d. Institutions. Social institutions that need to be changed are
outmoded and land-tenure system, social and economic
monopolies, educational and religious structures and systems
of administration and planning. Myrdal has the concept of
the modern man attitudes, integrity, honesty, diligence,
efficiency, punctuality, fragility, self-reliance,
resourcefulness, cooperativeness and willingness to take the
long view.

e. Rationality. Economic policies and strategies should be
relevant and rooted as deeply as possible in the knowledge of
relevant facts. There should be a search for a coordinated
system of policy and measures that can bring about economic
growth and development.
812

It was further explained that for an economic structural change to be
very meaningful, it has to create changes in attitudes and institutions and
policies are even or often deemed very necessary.

Myrdal also holds that Third World Countries like the Philippines
are soft states which are characterized by lack of social discipline such as
deficiencies in legislation's, in low observance, the widespread
disobedience by public officials to rules and directives and their collusion
with the powerful elite.

Thus, the theory of economic development by Myrdal is closely
linked to the present research study because it mentions the five significant
indicators with which cooperatives have seriously taken them along
economic perspectives. Cooperatives work committedly by improving the
outputs and income, level of productivity, levels of living, institutions and
rationality of the people by providing significant programs purported to
develop plights of the cooperatives' beneficiaries.

Of these theories presented, the Social Change by Durkheim and
Myrdals economic theory greatly support the present study. These
theories take development as effects of economic progress any social
institution undertakes.

813

Conceptual Framework
Based on the theoretical discussions, the conceptual framework is drawn.

Factors Affecting the Performance of Multi-
Purpose Cooperatives in the First District of
Oriental Mindoro

Profile of Multi-Purpose Cooperatives
a. number of years of operation
b. number of members
c. capitalization
Success of Multi-Purpose
Cooperatives in the First
District of Oriental Mindoro

Level of Commitment
a. board of directors
b. operations group
c. members

Services Rendered
a. providential services
b. consumer services
c. credit services
d. marketing services

Financial Aspect
a. liquidity
b. profitability
c. stability

Cooperative Development Program
a. expansion/diversification
b. members' financing support
c. affiliation with cooperatives for tie-
up agreements

Economic Success

a. self-sufficiency

b. increase in income

c. increase in
opportunities

d. livelihood program

Social Success

a. community bonding/
cooperativism

b. organizational
leadership

814

Figure 1 in the preceding page presents the conceptual framework of
this study. Two (2) variables are included in the paradigm.

The first variable are the factors affecting the performance of multi-
purpose cooperatives in the First District of Oriental Mindoro in terms of
profile of multi-purpose cooperatives-number of years of operations,
number of members and capitalization; level of commitment- board of
directors, operations group and members; services rendered- providential
services, consumer services, credit services, and marketing services;
financial aspect, liquidity, profitability and stability; and the cooperative
development-expansion/diversification, members' financing support and
affiliation with cooperatives for tie-up agreements.

The second variable is the success of multi-purpose cooperatives in
the First District of Oriental Mindoro in terms of economic success- self-
sufficiency, increase in income, increase in opportunities and livelihood
program; and social success in terms of community bonding/cooperativism
and organizational leadership.

Statement of the Problem

This study sought to determine the performance of the multi-purpose
cooperatives in the First District of Oriental Mindoro, Philippines.

Specifically, this study answered the following questions.

1. How do the respondents perceive the factors affecting the
performance of multi-purpose cooperatives in the First District of Oriental
Mindoro in terms of:

a. profile of multi-purpose cooperatives
1. number of years of operation;
2. number of members; and
3. capitalization

b. level of commitment of;
1. board of directors;
2. operations group; and
3. members

815

c. services rendered;
1. providential services;
2. consumer services;
3. credit services; and
4. marketing services

d. financial aspect like;
1. liquidity;
2. profitability;
3. stability; and

e. cooperative development program
1. expansion/diversification;
2. members' financing support;
3. affiliation with cooperatives for tie-up agreements?

2. How do the respondents perceive the success of multi-purpose
cooperatives in the First District of Oriental Mindoro in terms of:

a. economic success;
1. self-sufficiency;
2. increase in income;
3. increase in opportunities;
4. livelihood program; and

b. social success
1. community bonding/cooperativism;
2. organizational leadership?

816

Literature Review

The book entitled "Environment and Development: A Pacific Island
Perspective," published by Asian Development Bank (1992) summarizes
the significant constraints and issues perceived to be of alarming derailment
in achieving sustainable development in South Pacific Regions as follows:
a) lack of communications and coordination among government agencies
and between government and private sector; b) scarcity of well-trained
personnel; c) weakness of education programs; d) serious lack of awareness
about the contribution of resource issues, especially their cumulative and
long-term effects; e) commercial intrusions into subsistence sector; f)
aspects of land tenure; g) weakness in environmental planning, monitoring,
planning and legislation; h) lack of recurrent funding; i) short-term aid and
projects; and j) low community price.

It is a glaring fact that cooperatives never focus so much on a single
dimension of operations. The cooperatives studied have their plan to
indulge in environmental protection program to better extend their areas of
services to the people. Cooperatives' linkage with private and public
agencies is vital in realizing its pursuit for environmental development
through consciously integrating the development of environmental values
among cooperative members.

The document of United Nations Conference on Environment and
Development (UNCED), Agenda 21 (1992) reviews the priorities of
developing countries and suggests essential ways to attain sustainability.
Developing countries must facilitate their own priority actions and needs
for support and that plans must be established through public participation
and community involvement so that every sector will be committed to carry
them out.
Economic growth, social development, and poverty eradication are
the first and overriding priorities in developing countries and are
themselves essential to meeting national and global sustainability
objectives.

The literature presented by UNCED manifests relationship to the
present research. Cooperative movement is the people's ideal and viable
means to participate in the implementation of development efforts by the
government, which is true on the members of the cooperatives.

817

Methodology

Research Design

To carry out the purpose of this study, the researchers used
descriptive method in order to describe the situation systematically.

Sanchez (1998) says that a descriptive research method, in some
extent, helped the researcher identified and described the performance of
the multi-purpose cooperatives in the First District of Oriental Mindoro,
Philippines.

Respondents of the Study

This study was conducted in fifteen (15) multi-purpose cooperatives
in the First District of Oriental Mindoro.

818

Table 1
Respondents of the Study

Respondents of the Study (Members) Population Sample Taken Percentage

San Teodoro
1. JOSTMPC

Baco
2. ARC Cooperative of Water

Calapan City
3. CALSEDECO
4. CALFAMCO
5. ORMECO MPC
6. Calapan Vendors Multi-Purpose
Cooperative

Naujan
7. Naujan MPC

Victoria
8. Mabini Farm Family MPC
9. Victoria Balikatan MPC
10. Livestocks Producers and Raisers
MPC
11. Bagong Buhay II MPC

Soccorro
12. Socorro Plan Credit and
Development Cooperative

Pola
13. Putting Cacao MPC
14. Sist Paluwagan ng mga Guro MPC
15. Matulatula ARC Cooperative

49

48

844
533
202

1,306

528

156
52

139
283

38

59
100
135

4

4

69
44
17

107

43

13
4

12
23

3

5
8
11

8.16%

8.33%

8.18%
8.26%
8.42%

8.19%

8.14%

8.33%
7.69%

8.63%
8.12%

7.89%

8.47%
8.00%
8.15%
TOTAL 4,472 367 8.21%

Table 1 shows the representation of respondents, the population and
the corresponding percentage derived from the data available in their
documents.

It is shown that the fifteen (15) multi-purpose cooperatives have
4,472 regular members. The researcher used area sampling in choosing the
15 multi-purpose cooperatives.

819

In determining the 367 sample respondents, the researchers used the
Slovins Formula. The resultant sample was proportionately distributed
according to their total population. Finally in the selection of the
respondents, the researchers used simple random sampling.

Formula:
N
n = ----------------
1 + Ne
2

Where:

n = sample size
N = population size
e = desired margin or error; 5%
(percent allowance for non-precision because of the
use of the sample instead of the population)
N
n = ----------------
1 + Ne
2

Where:
N = 4,472

4,472
n = ----------------
1 + 4,472 (.05)
2

4,472
= ----------------
1 + 4,472 (.0025)
2

4,472
= ----------------
1 + 11.18

3,196
= ----------------
12.18

n = 367
820

Sources of Data

To attain the purpose of the study, the researchers utilized
documentary and empirical data which were gathered from the members of
15 multi-purpose cooperatives. Other vital records were taken from their
offices.

Documents enumerated below are deemed vital to enhance the
valuation and analysis.

1. Republic Act No. 6938 - An Act to Ordain a Cooperative Code of
the Philippines

2. 1987 Constitution

3. Accomplishment Reports of Cooperative Development Authority
(CDA) 2002- 2006

Data-Gathering Procedures

The researchers distributed and retrieved the questionnaire
personally from the respondents.

After the retrieval of the questionnaire, the researchers tabulated and
processed the data manually and by machine. Quantitative and qualitative
data processing were done to arrive at precise analysis and interpretation of
results. Tables were devised in order to organize, summarize and analyze
the data gathered to show how variables related with each other.

Instrumentation

The researchers used standard questionnaire which is consists of two
parts to gather all pertinent data needed.

Part I consisted of the factors affecting the performance of multi-
purpose cooperatives in the First District of Oriental Mindoro in terms of
profile of multi-purpose cooperatives-number of years of operations,
number of members and capitalization; level of commitment- board of
directors, operations group and members; services rendered- providential
services, consumer services, credit services, and marketing services;
financial aspect, liquidity, profitability and stability; and the cooperative
821

development-expansion/diversification, members' financing support and
affiliation with cooperatives for tie-up agreements.

Part II contained the success of multi-purpose cooperatives in the
First District of Oriental Mindoro in terms of economic success- self-
sufficiency, increase in income, increase in opportunities and livelihood
program; and social success in terms of community bonding/cooperativism
and organizational leadership.

The instrument was based on the questionnaire of the researchers
used in his masteral study.

This was presented and ordered based on the arrangement of the
specific questions in the statement of the problem.

Tabulation and Scoring of Data

All responses provided by the respondents were tabulated.

Scoring of data, on the other hand, was based on the 5-point
numerical scales which were used by the researcher. Each point had its
corresponding verbal descriptions and statistical limits presented in table 1.

822

Table 2
Numerical Value, Statistical Limits
and Value Descriptions

Numerical
Value
Stat.
Limits
Verbal Description
Part II Part III Part IV

5

4

3

2

1

4.50-5.00

4.50-4.49

2.50-3.49

1.50-2.49

1.00-1.49

V.H. Extent

H. Extent

M. Extent

L. Extent

V. L. Extent

V.H. Extent

H. Extent

M. Extent

L. Extent

V. L. Extent

V.H. Extent

H. Extent

M. Extent

L. Extent

V.L. Extent

Statistical Tools Used

In numerically treating, interpreting and analyzing all the gathered
data, the researchers used the mean, frequency, percentage and ranking, all
forms of descriptive statistics, were utilized in answering question numbers
1, 2, 3, and 4.

823

Results and Discussions

Table 3
Profile of the Multi-Purpose
Cooperatives in the First District of Oriental Mindoro

Multi-Purpose Cooperatives Number of
Years of
Operation
Number of
Members
Capitalization
(in Million)

San Teodoro
1. JOSTMPC

Baco
2. ARC Cooperative of Water

Calapan City
3. CALSEDECO
4. CALFAMCO
5. ORMECO MPC
6. Calapan Vendors Multi-
Purpose Cooperative

Naujan
7. Naujan MPC

Victoria
8. Mabini Farm Family MPC
9. Victoria Balikatan MPC
10. Livestocks Producers and
Raisers MPC
11. Bagong Buhay II MPC

Soccorro
12. Socorro Plan Credit and
Development Cooperative

Pola
13. Putting Cacao MPC
14. Sist Paluwagan ng mga Guro
MPC
15. Matulatula ARC Cooperative

10

9

16
16
15

12

16

15
15

15
10

7

13

10
9

49

48

844
533
202

1,306

528

156
52

139
283

38

59

100
135

0.25

0.05

15.40
1.61
9.71

6.31

1.80

0.77
0.20

0.22
1.90

0.13

0.06

0.29
0.15

824

Table 3 presents the profile of the multi-purpose cooperatives in the
First District of Oriental Mindoro in terms of number of years of operation,
number of members and capitalization.

As registered multi-purpose cooperatives, CALSEDECO,
CALFAMCO and Naujan MPC have been operating for 16 years while
Socorro Plan Credit and Development Cooperative has been in the service
for 7 years.

As regards membership, Calapan Vendors Multi-Purpose
Cooperatives has a total of 1,306 while Socorro Plan Credit and
Development Cooperative has the least number of members which is 38.

Concerning capital, CALDECO has about Php.15.4 million while
Putting Cacao MPC has the least total capital of Php. 0.06 million.

Findings imply that these multi-purpose cooperatives are properly
managed. This is made evidently by financial records and reports which
are up-to-date and are available to members. Moreover, opinions of each
member are recognized and respected. Rules are made clear for all the
members. Leaders of the cooperatives attributed the success of their
cooperative through hardwork, perseverance and cooperation of the
members. The concern of the multi-purpose cooperatives in the First
District of Oriental Mindoro for total human development likewise
contributes to their success after long years of operation.

The researcher finds that the extrinsic qualities of the multi-purpose
cooperatives namely, the number of years of operations, number of
members and capitalization is partly contributory to success.

Intrinsic qualities, however, could be serve as bases in coming up
with an in-depth analysis by the researcher considering determining factors
of operation, economic and social success which are fairly and
unprejudicedly evaluated.

825

Table 4

Summary Results of the Computed Mean Scores
of Respondents Perception on the Determining Factors
of Performance of the Multi-Purpose Cooperatives
in the First District of Oriental Mindoro

Items Overall Mean Description

1. level of commitment
of:
a. board of directors
b. operations group
c. members

2. services rendered
a. providential services
b. consumer services
c. credit services
d. marketing services

3. financial aspect like
a. liquidity
b. profitability
c. stability

4. cooperative
development program
a. expansion/
diversification
b. members financing
support
c. affiliation with
cooperatives for tie-up
agreements

3.65
3.17
3.78

3.77
4.12
4.02
3.85

3.91
3.66
3.70

3.82

3.68

2.94

High Extent
Moderate Extent
High Extent

High Extent
High Extent
High Extent
High Extent

High Extent
High Extent
High Extent

High Extent

High Extent

Moderate Extent

Grand Mean 3.70 High Extent

826

Table 4 presents the summary results of the computed mean scores
of respondents perceptions on the determining factors of performance of
the multi-purpose cooperatives in the First District of Oriental Mindoro.

Results showed that the determining factors of performance of the
multi-purpose cooperatives in the First District of Oriental Mindoro
received a computed grand mean of 3.70 described as high extent in
consideration of the above indicators.

Looking in the items, members of Operation Group need the much
needed and necessary training to make sure they could perform their jobs
fully well.

The multi-purpose cooperatives have human resources and
manpower that are deeply committed to uplift individual and group interest
through cooperative movement.

Commitment has much to do with the cooperatives' pursuit of
development in decision-making, policy and program execution and
support.

Furthermore, these cooperatives would most even amplify business
operations, manifest thrifty use of financial resources and desire for
financial sufficiency because they strictly want to live up the principle of
cooperativism with profit and service orientation.

On the other hand, these cooperatives are truly offering their various
types of services in their most efficient and effective manner.

The cooperatives have been able to make themselves the people's
tough partner in attaining development goals, especially those that are very
economic in nature.

The cooperatives' effectiveness in delivering services is a result of
their manpowers' untiring effort to innovate planning, policy-formulation
and management. Finally, individual member's support to all activities of
the cooperative accounts for this very desirable outcome.

Finally, member development through supporting their business and
expansion of current business operations are the due concerns of these
cooperatives. To a moderate extent, affiliation is not much taken into
827

account. This is because they focused on making the organization's
members truly attached to one another which could be substantiated by the
economic gains the members mutually benefit from effective performance
of their cooperative's operation functions.

These cooperatives may be driven by their desires to get affiliated,
however, its tough foundation in the local level is their priority.

In light of the foregoing findings, Gangoso's (1993) study entitled
"Performance Evaluation of a Cooperative Credit Union: The Case Study of
the University of San Agustin Faculty Association Kilusang Bayan for
Credit Inc." provides parallel findings to the current research study.
Gangoso concentrated on the evaluation of the credit union's management
in terms of exercise of functions of Board of Directors, officers, committee
members and organizational leadership. Her study which also delved on
extensive member's participation in the formulation, implementation and
evaluation of the credit union's programs and activities strengthens the
result of this present study.

A part of Gangoso's study conducted in 1993 binds closely to the
present research in which she found out that cooperative and credit union
should be effectively managed in terms of liquidity, stability and
profitability and growth in membership aspect, assets, savings deposit and
loan repayment
.
The present research and that of Gangoso's are of similarity and
quite related to each other.

On the other hand, the study of Ang (1994) entitled "The Evaluation
of the Projects by Mindoro Kabuhayan Foundation, Inc. (MKFI) in
Calapan, Oriental Mindoro" also strengthens the findings of the present
research study.

As to micro lending, benefits derived by the beneficiaries was
described to a very high extent evidenced by the tabulated overall mean
score of 4.54.

In subordination to this, Ang's evaluation conducted in 1991
revealed that Tambuyog was credited for the very satisfying performance of
this NGO leading to the positive outlook of fisherfolk on the services it
offered such as education, social awareness, program and the likes.
828

Satisfaction of MKFI's beneficiaries on the micro-lending program it
offered and the various programs delivered by Tambuyog to fisherfolk
beneficiaries to which the same are satisfied sustain the current findings.

Finally, the two current studies one by Peet (1998) and the other by
Pomerada (1990) strengthen the findings of the present research work.

Peet found out that involvement of government, non-government
agencies and the people in policy development could greatly contribute to
the achievement of sustainable development agenda. It was suggested by
the study that government around the world should make changes in
institutional and economic structures. Experts should make themselves as
resource persons who contribute to but not control the process.

Pomerada (1990), in his study entitled "Institutional Challenges in
the Development of Sustainable Agriculture" found that sustainable
agricultural development requires a fundamental change in attitudes of
people and institutions to better value the future and thus make
commitment with future generations. Achieving sustainability requires
efforts that are multi-disciplinary, multi-participatory, multi-sectoral and
multi-national.

Both studies have findings that closely link to
expansion/diversification and affiliation.

829

Table 5

of Respondents Perception on the Economic Success
of Multi-Purpose Cooperatives in the First District
of Oriental Mindoro


1. self-sufficiency

2. increase in income

3. increase in
opportunities

4. livelihood program

3.55

3.74

3.93

3.85

High Extent

High Extent

High Extent

High Extent

of respondents perceptions on the economic success of multi-purpose
cooperatives in the First District of Oriental Mindoro.

Gleaning to the results, the multi-purpose cooperatives are
successful to a high extent as indicated by the grand mean score of 3.77.

This could be justified by the current status of these cooperatives
where they are formidably on top of their economic activities. These
cooperatives have been so far very stable in many years leading their
members to concentrate now on the economic side of development because
all members have generally gained substantial improvement in their living.

Parallel and supportive to the present findings is the independent
study conducted by Redublo (1991).

Redublo (1991) credited Tambuyog for the socio-economic
development experienced by its fisher folk beneficiaries in Calapan City.
Tambuyog made this possible because of proper organization and unity
between the project proponent and beneficiaries.
830

These findings strengthen the current research study.

Table 6

of Respondents Perception on the Social Success
of Multi-Purpose Cooperatives in the First District
of Oriental Mindoro


1. community bonding/
cooperativism

2. organizational
leadership

3.74

3.85

High Extent

High Extent


of respondents perceptions on the social success of multi-purpose
cooperatives in the First District of Oriental Mindoro.

The tables overall mean score of 3.80 indicated that the respondents
have desirable community bonding/ cooperativism and organizational
leadership. These lead to social success.

This points out that these cooperatives simultaneously concentrates
on social development of members considering that it is just new in the
world of cooperative. This could be fully explained by their ultimate
desire to achieve organizational stability. Critically, the group needs
nonetheless but the support from its BOD and OG members including the
members themselves.

Ang's (1995) study revealed that beneficiaries of MKFI in Naujan
had gained a significant amount of social development. MKFI services
have been so instrumental in improving the quality of life of the benefited
sectors.

831

The foregoing findings by Ang sustain and support the findings of
the current research on social development as contributions of the multi-
purpose cooperatives to their respective members. The relevant findings
bind the aforementioned research studies because they have focus and
concerns on the area of social development.

Summary of Findings

1. Factors Affecting the Performance of the Multi-Purpose
Cooperatives in the First District of Oriental Mindoro

a. Majority of the multi-purpose cooperatives in the First District of
Oriental Mindoro are operating for 14 years, with 702 members and Php 6
million capitalization.

b. Members of the Board of Directors (BOD) are committed in
performing their task to a high extent just like their members and operations
group.

c. The multi-purpose cooperatives have been offering providential,
consumer, credit and marketing services to a high extent to their members.
d. The multi-purpose cooperatives are performing quite well in their
financial aspects of operations in terms of liquidity, profitability and
stability to a high extent.

e. The multi-purpose cooperatives prioritize expansion/
diversification and members financing support to a high extent. With
regard to affiliation, they expand through it to a moderate extent.

2. Success of Multi-Purpose Cooperatives

a. Based on the ordered mean score, the multi-purpose cooperatives
contributed to its members' self-sufficiency, increase in income and
opportunities and livelihood program to a high extent.

b. Values of cooperativism, bonding and traits for effective
organizational leadership have been contributed by multi-purpose
cooperatives to their members to a high extent.

832

Conclusions

1. The multi-purpose cooperatives had long been advancing
cooperative movement from which membership and capitalization rise.
Officials and members of the multi-purpose cooperatives were
unqualifiedly committed to perform their functions well relative to financial
operations, expansion/diversification program and members financing
support but not so much in affiliation. They also made providential,
consumer, credit and marketing of all members to which they are satisfied.

2. Members' economic well-being was fully enhanced by the multi-
purpose cooperatives because a great number of members attested to their
contribution achieving access to increase income, increase in opportunities
and livelihood program for self-sufficiency. The multi-purpose
cooperatives were also merited positively developing in their members the
value of cooperativism, mutuality and concern over others which also
helped hone leadership potentials.

Recommendations

1. Special seminars about cooperative management should be
provided for the board of directors, operations group and members of multi-
purpose cooperatives by the Cooperative Development Authority (CDA).
This also includes discussions about adequate character and moral
responsibility of management and basic principles and practices of
cooperatives. It is intended to provide them with the necessary facts and
information about assessment of felt need of the community, continuous
expansion, suitable cooperative and financial structure, competent
management and dynamic leadership.

2. The suggestions to improve the operation of multi-purpose
cooperatives should be taken into consideration so that this can be properly
used in accordance with the needs of the members. The cooperative
planners therefore, should prioritize the activities according to the identified
needs.
3. Bold efforts to expand and strengthen multi-purpose
cooperatives tough affiliation with confederation of local, regional and
national based cooperatives should be seriously worked out through
identifying potential supporters and constantly link the group with target
support groups.

833

4. An independent, periodic evaluation on the efficiency of services
delivered to the members should be undertaken to guide board of directors
and operation groups on the prioritization of programs and activities.

5. A much maintained linkage and coordination of the multi-purpose
cooperatives with private and government intermediaries like Land Bank of
the Philippines (LBP), NGO's and PO's should be done through constantly
making these groups as partners in undertaking development.

6. The multi-purpose cooperatives should prepare a comprehensive
program and social preparation activities geared towards development of
the beneficiaries social, economic, cultural and political domains.

7. Further research on growth in membership, assets, savings
deposits and loan repayments and members participation in formulation,
implementation and evaluation of multi-purpose cooperatives activities
should be conducted for more comprehensive results of the study.

834

BIBLIOGRAPHY

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835

DOCUMENTS

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836

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__________ Philippine Daily Inquirer July 21, 1991.

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Gangoso, Marivic A. Performance Evaluation of A Cooperative Credit
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837

Kikuchi, Masao. Sustainable Agriculture in Asian Developing Countries:
An Economist's Perspective. Chiba University, Japan, 1994.

Paas, Ofelia and Narca Marjorie. A Case Study of Selected Multi-Purpose
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Peet, N.J. With People's Wisdom Community Based Perspectives on
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Pomerada, Carlos F. Institutional Challenges in the Achievement of
Sustainable Agriculture. Costa Rica:Inter American Institute for
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