I.

EXECUTIVE SUMMARY

The idea of putting up a Cooperative in the Center came about as a result of the meeting of the

minds of two (2) members of the Medical Records Section Staff, namely Mrs. Evelyn V. Sayson

and Mrs. Julieta L. Nuñez. Mrs. Sayson and Mrs. Nuñez felt a deep concern about the plight of

a number of hospital employees, majority of whom belong to the rank-and-file, who are forced to

go to the “loan sharks” to ‘make both ends meet’. The two friends felt a deep need for an

employee organization which will be responsive to the needs of the low-salaried employees, at

the same time, will encourage and promote among themselves, self-reliance. The idea was

verbalized to their immediate supervisor, Miss Lourdes T. Verdadero. Inspired by the support

and encouragement of their section head, the two embarked on a campaign for membership. Mrs

Sayson prepared the Feasibility Study/ Economic Survey and CDA requirements, while Mrs.

Nuñez busied herself with the information, and extended the invitation/notice of an

organizational meeting with the rank-and-file employees. There were 84 attendees to the Pre-

Membership Seminar conducted on August 14, 1992. Immediately thereafter, the first Special

General Assembly was held, where it was decided that the first seven (7) elected officers during

the organizational meeting on July 24, 1992. After compliance with all the statutory

requirements, the Cooperative was finally registered on September 4, 1992, with 89 Cooperators

and a Paid-Up Capital of Php 17,000.00. From the name of the organization BMC G110 Multi-

Purpose Cooperative, G110 stands for Salary Grades 1-10, the rank-and-file employees of the

Center who are most affected by the economic crisis. Hence, regular membership was limited to

employees with salary grade 1-10 where management and voting power is vested. However,

associate members coming from higher salary grade level may be entertained.

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 At present, BMG G110 Multi-Purpose Cooperative has at least 600 members. As this

number rose today, so are the level of challenges in management and accounting matters. Under

the accounting department, errors in recording transactions and delayed generation of financial

reports are the short-term major problems while full computerization of the accounting system

and the absence of a full-time accountant are the long-term major problems. In managing

department, handling people and aiming the daily/monthly target sales are the short-term

problems while lack of manpower and limited area (Office, canteen, stockroom) are their long-

term challenges.

To improve the services and operations of the cooperative, the accounting department

must (1) hire an experienced accountant, (2) strict adherence to deadlines in accomplishing

financial reports and (3) computerization of sales, purchases and inventory are advised to be

done while the managerial department must (1) apply up-to-date recommendations from studies

on human resource management, (2) proper division of labor and (3) having a spacious work

area must be done.

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II. STATEMENT OF THE PROBLEM

This study aims to identify the managerial and accounting problem of a certain cooperative

particularly BMC G110 Multi-Purpose Cooperative in the short and long term to further study

the causes and roots of the problems and to provide solutions that will lessen the problem from

happening again.

The common problems that a cooperative encounters in accounting department are the

following:

1. Errors in recording transactions (Short term)

2. Delayed generation of financial reports (Short term)

3. Full computerization of the accounting system (Long term)

4. Loan delinquency (Long term)

5. The absence of a full time accountant (Long term)

The common problems that a cooperative encounters in managerial are the following:

1. Handling people (Short term)

2. Hitting daily/monthly target sales (Short term)

3. Lack of manpower (Long term)

4. Limited Area for office, canteen and stockroom (Long term)

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Symptoms and roots causes of the problems

1. Wrong posting of accounting transactions

2. Inventory and/or sales shortages and/or overages which needs to be verified, traced

and corrected

3. Unintentional errors due to manual computations of voluminous financial

transactions.

4. Employees have personal problems which affects their work performances resulting

to absences, tardiness and poor work performance.

5. Out of stock products which causes lower sales; customer complaints due to bad

customer service

6. Applicants for the vacant key positions are very seldom

7. Applicants for service crew positions are at times none

8. Expansion of our facilities (canteen, office, stockroom, café & mart) is needed, but

we cannot do so because we are inside BMC compound which is a government

property, not ours.

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III. CAUSES OF THE PROBLEMS

In a small office like that of G110 every member of the staff lends a hand during phases of

each operation. Versatility rather than a specialized skill is what should command in a small

office. It is the responsibility of the management specifically the manager to make sure every

problem faced by the cooperative be met and solved. G110 have identified 2 short-term

problems affecting the operation of the cooperative. First, they have identified handling people

as one of its concerns, this include tardiness, absenteeism and poor work performance of

employees. A marked uptrend in absenteeism and tardiness means there is a red flag that needs

to be addressed whether it be on a personal issue or a work related problem. Second, hitting the

daily or monthly target sales of the cooperative. Since G110 was created in order to help rank-

and-file employees of BMC from financial difficulties, the cooperative put up businesses that

would help increase the invested capital to grow. Most of the cooperative’s income comes from

retail. A low return in retail is due to some factors which are inevitable but could be prevented.

The root causes of these problems would come from the delay in the delivery of products from

suppliers resulting to out of stock products, and complaints from poor customer service by the

employees in charge.

The cooperative has also identified 2 long-term problems affecting its operation. First,

having lack of key personnel and staff. Only a few to none would apply for vacant positions and

this is because people nowadays would rather choose to apply and work in big companies and

have higher paying jobs. Second, because G110 is an organization within the employees of BMC

expansion of their facilities are limited and impossible. The government owns the compound to

which it is located, so expanding their facilities would mean they would have to buy land within

the area in order-6 to cater their members and clients.

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 G110’s accounting department also experiences a number of problems. 2 long-term

problems affecting the accounting division were pinpointed, first, the full computerization of the

accounting system. Being able to use an accounting system has it’s perks but it also has a

downside. For one, the cost, the coop need not only to purchase the system but it also need to

upgrade its computers in order to obtain at least the minimum requirement for the system to

work. Next, the difficulty in transitioning to the system especially to non-accountants that have

never used an accounting system before. Lastly, the time and maintenance, processing expenses

and invoices will usually take more time in using a system than by simply logging it manually in

a spreadsheet, and because the coop need it to work properly every time, in needs to be upgraded

and maintained. Second long-term problem identified by the coop is the need for a full-time

accounting personnel, preferably a CPA in order to supervise the accounting department.

2 short-term problems were distinguished. First, are errors in the recording of transactions. This

is due to the wrong postings of accounting transactions. Second, is the delay in the generation of

financial reports. Due to the inventory and sales overages and shortages that needs to be verified

and corrected by the accounting personnel a delay is sometimes inevitable. And because of the

absence of a full-time accountant who would supervise the accounting personnel both identified

problems would continue to happen from time to time

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IV. DECISION CRITERIA AND ALTERNATIVE SOLUTIONS

Accounting Department

Short Term

1. Daily/monthly record of transactions being done.

2. Constant reminder to the accounting personnel to finish the reports on time.

Long term

1. They need to hire more employees to help in consolidating financial reports, because they

record it manually.

2. They should hire a full-time accountant that could help their cooperative in recording

transactions more easily and supervise the department.

They should offer a higher salary and add more benefits to encourage applicants.

Managing department

Short term

1. They should provide a comfortable workplace for their employees to motivate while

working.

2. Expansion of area for their business.

Short term

1. Their employees should extend their time of work in order to finish the assigned tasks.

2. They are able to maximize the space available in each area.

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V. RECOMMENDED SOLUTION, IMPLEMENTATION AND JUSTIFICATION

This plan of action is to have a certain financial growth and be able to maintain its reserves.

Accounting Department

1. Keeping the books organized is very significant to minimize errors in recording

transactions. An experienced accountant or CPA can help avoid all the accounting

mistakes: such as wrong posting of accounting transactions.

2. An accountant has its own goal to finish the financial reports on time. And a constant

reminder to any of the office personnel is important to ensure that they could finish the

reports on time.

1. G110 Multipurpose cooperative consolidates their financial reports manually (thru

MS Excel). There are many accounting software options available on the market that

could help G110 organize reports in one database.

2. By the reason of not having a full time accountant they conducted a partial

computerization of sales, purchases and inventory. But then their financial reports are

still being done by the Compliance Officer together with the Accounting Officer and

Bookkeeper.

Managing Department

1. Handling people with problems such as tardiness, absenteeism and poor work

performance provide a valuable start in understanding important relation. These can be

solved by conducting counseling of erring employees, implement disciplinary measures,

including firing of employees after due process.

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2. To hit the daily/monthly target sales, they need to conduct daily monitoring of sales and

inventory to avoid having out of stock items, suppliers should also be reminded of the

dates of delivery to avoid delay. Employees should also be trained on how to handle

customers properly in order to avoid complaints.

1. The employees should be assigned with the job that suits their skill, experience and

training. The right person for the job has higher output. All Cooperatives were accorded

by the Cooperative Development Authority(CDA) with support system thru regulation

and supervision and some were given updates and educational training based on the law

prescribed.

2. They should scout for a lot near BMC which they could purchase to accommodate

their expansion. Expansion would allow them to cater new customers outside of BMC,

they could also acquire new business ideas that would help in the cooperative’s growth

and higher revenue.

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sVI. EXTERNAL SOURCING

Mustar, D. Marketing of Pineapple in Selected cooperative in Camarines Norte, 1993, pp. 47.

Workforce, 2001, pp. 66. A Plan for keeping Employees Motivated

Workforce, 2001, pp. 64. When an Employee’s Crisis becomes HR’s Problem

Workforce, 2001, pp. 66. Happy Employees means Satisfied Customer

Strategic Management Journal, 1991. pp. 515-517

Small Business Management Series, pp. 26, 27, 31, 41, 42, 45

www.workforce.com (Dealing with Disgruntled Employee)

The Management of Organizations, Jose P. Leveriza, 1986

https://smallbusiness.chron.com The Disadvantages of Using Accounting Software

https://www-allbusiness-com.cdn.ampproject.org 6 Tips for Expanding Your Business

Caritos Brenda Paano and Convocar dela Cru. Operation Management assessment of

Barangay Resources and Environment Development Cooperative, Inc. Unpublished

undergrade thesis. Camarines Sur Agricultural College. 1999.

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