fr»d t. Herndon 



TOO many generals can lose a war. 

 The North was losing the Gvil 

 War until they consolidated their 

 armies under one command. In 

 World War I and in World War 

 II history again re- 

 peated itself. In the 

 field of spxjrts there 

 is one manager and 

 trained coaches. 



The trainer tells 

 the jockey the strate- 

 gy to use to win the 

 race. The war, the 

 game, or the race is 

 won by those who 

 have the best coordi- 

 nation of strong in- 

 dividuals after the 

 program is outlined. Team play and 

 respect for authority are necessary. Re- 

 spect does not came with position — it 

 is gained by results. 



These fundamentals are as true and 

 applicable in business as they are in the 

 field of war and sports. 



The future of America is limited to 

 the degree we can coordinate and con- 

 solidate our human relations and convert 

 our raw materials into finished products 

 for the benefit of mankind. The love of 

 liberty is as old as life itself, and educa- 

 tion tends to intensify it. As self-re- 

 straint is necessary for the good of the 

 individual, discipline is necessary in 

 group action. 



With this foreword, I am ready to dis- 

 cuss qualifications of and relationships 

 between directors and management of 

 farm cooperatives. 



It is hard to get a good finished prod- 

 uct from poor material. So let us first 

 give some thought to the selection of 

 directors. The value of a director is 

 limited to the efiFort he will put forth. 

 So let's see if he will give the time neces- 

 sary to promote the best interests of the 

 cooperative. 



Is he a patron, or is he a bargain seek- 

 er with personal influence? Is he or 

 his near relatives in competition with 

 the cooperative? Does he support farm 

 organizations by membership and par- 

 ticipation, or is he a so-called "rugged 

 individualist?" Is he worthy of the 

 position? If he seeks the position, is 

 there an ulterior motive? Is he a radi- 

 cal who loves to debate on any and all 

 subjects? Does he pay his accounts 

 promptly, or will he oppose a good credit 

 policy? Is a member of his family an 

 employee? Does he use good judgment 

 in managing his own business? Will 

 he support the majority board action 

 without carrying differences of opinion 

 out of board meetings? Is he a "yes" 

 man? Will he place himself under 

 obligation to employees? Will he read 



and understand the articles of incorpora- 

 tion, and all company agreements? 



Can he understand, or will he learn 

 the value of all items in the balance 

 sheet, and income and expense state- 

 ment? 



Will he demand that the financial 

 status be presented with the manager's 

 report each month? Can he stand criti- 

 cism? 



And last, but not least — when he is 

 defeated for office, can he take the de- 

 cision of the membership gracefully? 



Assuming that the directors are well 

 qualified under these standards, it is their 

 responsibility to select a manager. These 

 are some desirable qualifications: the 

 applicant should possess excellent charac- 

 ter; he should be courageous, energetic 

 and loyal to his God, his country, his 

 family and to the people he serves. Care- 

 ful consideration also should be given 

 to his educational background pertaining 

 to the position he seeks. His knowledge 

 and value of the general farm organiza- 

 tion should be such that he maintains 

 membership paid by him and not by the 

 cooperative. 



Responsibilities and lines of author- 

 ity should be discussed and understood 

 between boards and managers. The 

 board is the policy-making body. The 

 manager is the administrative head of 

 the business and has control of all other 

 employees, material and moneys. 



Policies should be adopted by majority 

 board action and be a matter of record 

 in the minutes of board meetings. Man- 

 agers should make detailed reports on the 

 company at least monthly to the board 

 of directors. 



The manager should cultivate a friend- 



ly relationship with employees holding 

 responsible positions in other coopera- 

 tives or farm organizations in the county, 

 but he should remember that they are 

 not his "boss". 



He should lend his moral support to 

 help others serve farm people better, but 

 should not give or receive financial re- 

 muneration for any personal services, 

 make no commitments for others — 

 neither should they make adjustments 

 for him. 



The manager should remember that 

 his time belongs primarily to the coop- 

 erative that employs him. 



When complaints are made by a pa- 

 tron, the manager should assume that 

 the member is honest, at least until he 

 has told his story twice, and if there are 

 some discrepancies, he should still treat 

 him kindly. 



A manager should never criticize his 

 employees to the patron if he expects 

 either of them to respect him. Man- 

 agers should always give their employees 

 an opportunity to tell their side of the 

 story. Loyalty with honesty of purpose 

 builds and maintains company morale. 



Problems can easily develop if the 

 manager goes hunting, fishing, or partic- 

 ipates in too many outside activities with 

 board members or employees. 



Directors and managers should keep 

 out of jKjlitical or religious discussions 

 that may lead to unpleasant situations. 



A manager should not take up the 

 board's time with minor problems. They 

 are not paying him for the privilege of 

 doing his thinking for him. The man- 

 ager should always be ready to explain 

 employee problems to the board, but 

 many times the least discussion possible 

 serves best the morale of the cooperative. 

 Directors should beware of managers who 

 are always reporting sharp bargaining. 

 Fair-trade practices and merchandising 

 methods with fair treatment to suppliers 

 and members are the foundation stones 

 of permanent success. 



When great baseball teams fail to win, 

 the problem usually is within the organi- 

 zation. They lack team spirit. They 

 may have some temperamental "Prima 

 Donnas." Their batting averages may 

 look well, their fielding may head the 

 list, but they lack the will to win because 

 of dissension within the group. 



The same situation can exist in coop- 

 eratives. If and when it does, it may 

 be necessary for the good of the owner- 

 ship to select a new manager if he is at 

 fault, or to make a change of other em- 

 ployees — or in some instances elect 

 some new directors to the board. 



In private business the so-called "big 

 shots" are the owners of the business. 

 That being true, then in cooperatives 



{Continued on page J4) 



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APRIL. 1949 



