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Planning and Control System in PUSKUD-Bengkulu Agricultural Secondary Cooperative: An Evaluation (Bengkulu Province, Indonesia)
Field Study Abstract:
This field study mainly evaluated the existing planning and control system of PUSKUD-Bengkulu as a basis for formulating a better design for its planning and control system to achieve a better performance for the benefit of its member-patrons. Specifically, it aimed to (1) determine the organization’s management and activities, (2) determine the respondents’ assessment of the management system, (3) review the existing planning and control system, and (4) recommend the necessary adjustment in its orientation and direction.
KUD samples taken were 10 percent of the 106 KUD-members of PUSKUDBengkulu coming from the four municipalities of Bengkulu Province. The total sample size was 11 KUDs distributed as follows: Bengkulu municipality (1), South Bengkulu District (3), North Bengkulu District (4), and Rejang Lebong (3). From each KUD, the manager or a member of the Board of Directors was interviewed. From PUSKUD-Bengkulu, the General Manager, two Board members and six employees coming from different divisions were also interviewed. Simple description, SWOT and financial analysis were used to analyze the data.
PUSKUD-Bengkulu had internal and external investments. The gross sales were dominated by internal investment. Demand side of the contribution of members who patronized PUSKUD-Bengkulu’s services increased over 1996-1998. IMAR activity increased in gross sales. However, DMAR decreased in gross sales in the same period.
There was wide discrepancy between decisions made at GA and implementation. KUD did not have enough cash to patronize PUSKUD-Bengkulu commodities. Services and delivery of PUSKUD-Bengkulu lagged or discontinued. BOD’s monthly meeting was held to monitor, evaluate and solve the problems. Heads of division and employees evaluated the business of PUSKUD-Bengkulu as increasing every year. The organization was very active and they were satisfied with the top management. The problems they encountered were low salaries, lack of computers, and inconsistency of delivery by suppliers.
In the existing planning system, short-term planning was used by PUSKUD-Bengkulu. There were three kinds of planning approach used in PUSKUD-Bengkulu: (1) top-down approach, (2) bottom-up approach, and (3) combination of top-down and bottom-up approaches.
As a means of internal control, cooperative used official receipts and cash vouchers, cash books and ledgers, and other tools. Since PUSKUD-Bengkulu has a General Manager, the control function was taken over by BOD. The highest control system was on the members, which was demonstrated in any general assembly meeting. The tool that was used in internal control analysis was the analysis of financial performance of the cooperative.
PUSKUD-Bengkulu realized a high net savings because it was able to sell much more than what was targeted, i.e., sugar, salt, rice, and cooking oil (outside the program) businesses. The cooperative performed better in critical times during 1996-1998, but in 1998, its net savings was still below the average of other secondary cooperatives. PUSKUD-Bengkulu’s sales, profit, and other performance factors seemed to be growing with the increase in the size of the operation. However, other secondary cooperatives were more efficient.
For its external control, PUSKUD-Bengkulu had public accountants, the government, and societies. PUSKUD-Bengkulu had Koperasi Jasa Audit (KJA) or Audit Cooperative (AC) as external auditors.
As a result of SWOT analysis, some operations must be maintained by PUSKUD-Bengkulu and some must be expanded. The operations that must be expanded are those of cooking oil and sugar, which were demanded by members.
The strategies for marketing mixes are the positioning of product, price, promotion, and placement (4P), and these must be considered as important agenda for the cooperative. The motto, “PUSKUD-Bengkulu gives the best services to KUDs” should be used to create awareness on the members that they have the qualified institution. All efforts must be concentrated around this motto.
In the case of PUSKUD-Bengkulu, for the purpose of a better control by the members, there must be a change in the organizational structure. Audit and education committees should be created to help BOD in discharging its responsibilities. Therefore, its By-laws and Articles should be amended.