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CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

Democratic Control are democratic organization controlled by their members, who actively participate in setting their policies and making decision. Members are the source of all authority in cooperative, the basic unit in democratic control are the members. Decision in democratic control are made jointly by members irrespective of their financial consideration or position without any respect to the amount of shares or others capital interest that he may have in the society, will not make him have more vote/control than other members. The controlled  as mentioned as earlier is in the hands of members, whos loyalty and activeness are necessary in setting their policies and making decision.

Onuoha (2002) men and women serving as elected representative have equal voting right (one member, one vote) and cooperative at other levels are organized in democratic member and participating in decision affecting their society.The Democratic Principle emanates from the Rockdale equitable pioneers as it was seen that every member interest needs to be covered and to maintain the importance of each and everyone decision making in order to improve upon member loyalty when decision are made.This democratic principle is held by many authors as the foremost principle of cooperation.

The believe at this principle is that every member is equal as person and as human being who wish to be held. The peculiarity of cooperative which believe that cooperative belong to member and they have the right to manage it in such a way that the organization function like a democratic institution. The supreme authority is vested on the entire members irrespective of one's financial position, this make the member's loyalty improve, knowing fully we that the society appreciate and accommodate them.Necessitate this research which is mproving upon member loyalty through the application of the principle of democratic control. A study of two (2) society which are mainly Surulere Cooperative Society and National Archives Multipurpose Cooperative Society. The research will like to know how member co-exist, how do organs of the society co-exist, or who make the members loyalty improve, who makes laws and rules for the society and what is the criteria for knowing member loyalty.

1.2  STATEMENT OF THE PROBLEM

Improving upon members’ loyalty through the application of the principle of democratic control cannot be over emphasized. In the real sense of cooperative it should be a guide to enable/improve member loyalty if properly executed. There is likelihood of the success to the society. However, it is clear that most of these procedures are not followed, hence creating a lot of problem in improving upon member loyalty and it is based on that, that this research is carried out.

1.3  OBJECTIVE OF THE STUDY

To determine upon member loyalty through the principle or democratic control.

To find out the problem of member loyalty through the principle of democratic control.

To identify the factors affecting members loyalty.

1.4  RESEARCH QUESTIONS

What is the extent of improving member loyalty through the application of the principle of Democratic Control?

What is the effect derivable from the application of the democratic control?

What are the problems of application of the principle of democratic control?

1.5  SIGNIFICANCE OF THE STUDY

The study examines improving upon member loyalty through the application of the principle of democratic control. The significant of the study cannot be underestimated, as this research work will be a reference for the incoming students, so they can borrow form it. This research or finding shall be very effective in enacting policies that will help regulate the activities of the types of cooperative in question for improving upon member loyalty to the general public who are interested in cooperative, they will use the result as a base for formation of viable for improving member loyalty. It will help create more awareness of the application of democratic control and improving upon member loyalty.

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