Assessment of Managerial Efficiency and Effectiveness of Multipurpose Primary Agricultural Cooperatives in East Wollega Zone, Ethiopia

Abstract

The study was designed to examine the managerial efficiency and effectiveness of primary multipurpose agricultural cooperative leaders in serving their member in East Wollega Zone, Oromia region, Ethiopia. The data were collected from 245 respondents and descriptive statistics and multiple linear regressions were used for data analysis. The result of the research indicated that the cooperative leaders in the study area are managerially inefficient and ineffective for which the services delivered were inadequate, with no quality, they fail to minimize cost of operation, service are not timely provided as per member need and weak capital mobilization. Thus, the overall management performances of the cooperatives are low consequently resulted in low member satisfaction. The main factors that affect the managerial efficiency and effectiveness of the cooperative leaders negatively are commitment and competency of management committee; market information and market research, cooperative training, incentive and capital inadequacy. For improving the managerial efficiency and effectiveness of the cooperative leaders the cooperatives need to provide programed training and elect leaders with relatively educated and committed among the members; the leaders need to be hunt market information and conduct member need assessment to provide demand driven services so as satisfying members in service. And also cooperative promotion office or the cooperative policy maker required to device motivational, training, education and cooperative professionalization schemes which would be inspire the leader for their striving efforts to serve members efficiently and effectively.