Ou CCD CCD - Uo

OTS Organization Understanding
1 INTRODUCTION
Center for Collective Development (CCD) is an NGO started in June 2003. The organization is
registered as society under Andhra Pradesh state society act. The head office of the organization
is situated in Hyderabad and it is working in two district of Andhra Pradesh- Anantpur and
Adilabad. In Adilabad, operations were started in August 2004 whereas in Anantpur CCD started
functioning in January 2005.
2 OBJECTIVES OF THE STUDY
 To develop an understanding of what an organisation is all about, to know about its

evolution, to learn about its functioning in the nascent stage.
 To understand about its structure, activities, resource mobilisation, strengths and
weaknesses, stake holders and also, strategies adopted over a period of time and the
emerging dimensions.
 To understand the driving forces for the organisation.
3 METHODOLOGY-
As the organization is in nascent stage and very small in size, a simple framework comprising of
five basic questions was developed to understand it. The questions deal with need for the
organization in its area of operation, its philosophy, structural dimension, resources and stake
holders. Few existing frameworks are used to understand the issues of leadership, emergence of
organization and nascent organization’s future based on the policies adopted towards employees.
In the end, an attempt is been made to understand about the driving forces for the organization
i.e. what makes the organization run.
4 SOURCE OF DATA-
Insights were gathered from interaction and observation, and from interviews with various staff.
The primary sources comprised of information obtained from the employees of the organization
(see annexure for employee questionnaire) and the beneficiaries of the organization. On the other
CCD 4 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

hand, the secondary sources consisted of books, organization’s documents and information
available on the internet.
5 SCOPE AND LIMITATION OF THE STUDY-
The branch offices in Adilabad and Anantapur were studied during the fieldwork for organisation
action component whereas head office functioning was observed during the beginning and
concluding sessions of OTS with the CEO of the organization.
No interaction could be held with the trustees as most of the time, during the OTS, was spent in
the field. Further the trustees are very high profile and there was no facilitation from the CEO of
the organization to have any meeting with them.
6 FRAMEWORK TO STUDY THE ORGANIZATION-
The whole report is based on answering following 5 questions which are relevant to any
organization in general and to small and new organization in particular. This framework in one
sense is the overarching framework developed to understand the organization.

What is the Organisation for?
How is it going about it?
What are the resources it has, to follow its strategies?
How are these resources maintained?
Who are all linked with this organization and how?
6.1 Question 1: What is the Organisation for?
To answer the first question it is required to understand that what is the need for the organization,
and whether the organization has the ideology to address the need or not.
6.1.1 Need- Where did it all start?

In Andhra Pradesh there has been no substantial intervention on commodity cooperatives
targeting particularly small and marginal farmers. The Interventions strategies by the government
and other institution are neutral to the question of poverty, largely arguing that if wealth is

created, everyone including the marginal farmers will be benefited. However, experience shows
that large numbers of the poor – several million – continue to be marginalized. Commodity
cooperatives focused on the poor person’s crops would fill this gap in the development efforts.
Small and marginal farmers suffer from at least five losses of income which can be shown by the
following figure-
1. Lack of credit and high
interest rates
5. Distress Sales at 2. Poor quality seed

harvest and inputs
4. Tied Sales 3. Poor farming

practices
(i) Credit: Either credit is not available, or they pay high interest rates for loans,
sometimes more than 50%. This translates for instance into Rs.1250 for interest for a
loan of Rs.5000 for one acre over 6 months. At 15%, they would pay only Rs.375 and
save Rs.875. Sometimes farmers choose to take smaller loans than what is required
for proper cultivation.
(ii) Poor quality seeds, fertilizers and pesticides obtained at higher price: This sometimes
happens because the dealer provides credit for purchase of agricultural inputs and
palms off substandard items to the farmer. Also, prices are sometimes higher in
interior villages.
(iii) Poor farming practices: They are unable to apply fertilizer and pesticide at the right
time in the right quantities during the season, often because of lack of money. As a
result of (i) (ii) and (iii), their output is low, sometimes 50% of what a well off farmer
obtains.

(iv) Tied sales: they are forced to sell their output to the money lender at low prices as
part of the loan condition.
(v) Distress sale of any left over produce immediately after harvesting when prices are
low: Well off farmers can hold on to stocks and sell when prices rise a few months
later, but small and marginal farmers need immediate cash for their daily expenses.
The difference in price between the flush and lean season for some crops cultivated
by the poor could be 100% or more.
These five factors place them in a vicious cycle from which they are unable to escape.
Conventional thinking has focused on rural credit. The idea is that once this is available, all
problems will be solved. However this has not worked. Firstly, credit itself continues to elude the
small and marginal farmers and they continue to be dependent on the informal credit networks.
Even if this credit is available, it still does not address the problem of low yields or distress sales.
Credit is only a partial solution. Perhaps no intervention other than a cooperative can bring long
term sustained benefits to farmers. Further the cooperatives should be owned and run by the
members only. Institutions that are run by outsiders are not answerable to the poor and eventually
decline over time. Several well intentioned ‘cooperatives’ run by the Government have not
performed well (in a sense this is against the cooperative principles since by definition a
cooperative is owned by its members).
6.1.2 Mission of CCD:
“Promoting vibrant, member owned and member controlled cooperatives, primarily of the poor,
for their economic well being”. The mission comprises of following objectives-
Social objective- Forming the cooperatives: As small or marginal farmer cannot do what the
cooperative can do. CCD will facilitate farmers to come together and get the advantage of scale.
Financial objective: Establish initial credit linkages with formal banking system. CCD will use
its resources to connect the thrift and credit cooperatives with banking institutions so that the
farmers need not to borrow money from private money lender.

Marketing objective: Establish initial linkages with country wide markets. CCD will explore the
available market options and provide the details to the cooperatives. This will help the
cooperative to sell the products with maximum profit.
Technical objective: Linkages with agriculture specialists, food processing later. CCD will
facilitate the farmers to get the information about advanced methods of farming so that the
average yield can be improved. In case of commodities value addition through processing solves
the problem of glut. As the cooperatives’ scale of operating will increase CCD will facilitate
them to establish the linkage with food technology institutes.
Educational objective: Intense capacity building of cooperatives. As the cooperative functioning

and success is based on certain principles CCD will facilitate the cooperatives to obtain the
guidance for their capacity building.
6.1.3 Vision of CCD:
CCD wants to achieve the status for agricultural commodities akin to what NDDB accomplished
for the dairy sector. Initially CCD wants to expand its area of operation across Andhra Pradesh
and later on across the nation.
6.2 Question 2: How is it going about it?
After knowing the need for the organization and its vision and mission, it is required to
understand that what are the strategies of the organization and what activities is it involved in.
The organisation would face many challenges in achieving the objectives for which the activities
need to be fine-tuned and continuously improved upon.

6.2.1 Strategies of CCD-
CCD’s strategy is to act as a catalyst and as capacity builder and let the poor manage their own
affairs. For this, approach of CCD is
1. To facilitate the formation of commodity cooperatives initially- CCD will first try to
establish credit and thrift cooperatives as an entry point activity so that the farmers come
together. This will also help the employees of CCD to discuss with farmers’ about
commodity cooperatives.
2. To focus on one or two chief crop in each district- At present CCD’s is trying to explore
the available opportunities for collective action for Soya bean and Tuar Dal in Adilabad
and for groundnut in Anantpur.
3. To focus on single commodity, multi service cooperative- CCD will facilitate the
formation of single commodity cooperatives which will provide all the backward and
forward linkages for that particular crop to the farmers.
4. To find the best value adding proposition for the commodity- CCD will suggest to the
cooperatives the maximum profit generating ways. This may be storing the produce till
the time when the market rates are higher than the cost of interest involved in storage.
The other possible options can be processing the commodities so that maximum returns
can be gained after recovering the cost of value addition.
5. To hand over the ownership of cooperative to the farmers- CCD after demonstrating the
increase returns through collective action and value addition will transfer the ownership
of the trading to farmers to make it a cooperative. As CCD wants that the ownership
should lie in the hands of farmers, it is not interested in formation of multi purpose
cooperatives. Multi purpose cooperative’s functioning involved intricacies which may not
be understood by the members.

6.2.2 Current and proposed activities-
As the organization is very new some of the activities are going on and some others are about to
start. These activities are-
Adilabad district- The Utnoor office is the headquarters for operations in Adilabad District.
Activities being done and those proposed are:
 Promoting Thrift and Credit cooperatives: Presently 13 cooperatives are promoted with a
total strength of around 395 members with monthly saving in the range of Rs.10 to Rs. 30 in
every village. The Grameen model is used for the formation of thrift cooperative i.e. 5 person
should form a group first and then such five groups at least should come to be the part of
cooperative. After that the cooperative is formed. All the members contribute a fixed amount
every month and if anybody is taking any loan each of his group members has to sign. Earlier
loan repayment time was fixed three months but it was found that poorer people were not
able to repay. Thus the repayment time was increased to six months.
 CCD disseminates daily price of the various commodities relevant to the place in Narnoor
mandal from the price of NCDEX website. NCDEX in association with CCD has installed a
price ticker which displays real-time prices in all the major markets of India for the relevant
commodities.
 After a year of work in a village where thrift and credit society members and the villagers
gain belief in CCD, the commodity cooperatives are to be promoted. (Soya bean and tuar dal
cooperatives only as of now in Utnoor)
 Facilitation in support and extension activities of agriculture like helping the villagers find
the good quality seeds, soil testing, etc.
Anantpur district- Brahmanapally (near Puttaparthy) office is the headquarters for operations in
Anantpur district. Activities there are:
 Promoting thrift and credit cooperative: On the line of Adilabad operations nine credit and
thrift cooperatives are promoted.

 Providing groundnut seeds to the farmers: The farmers are provided good quality seeds from
CCD. The need for seed distribution is that the seeds provided by the government are
infected with disease and if the farmers want to purchase from other source they have to
incur the cost of transportation. CCD provides good quality seeds which were purchased
earlier. The price for the seeds includes the cost of seed and the interest incurred till the date
of sale.
 Proposal for formation of groundnut cooperative and installation of decorticator: To increase
the returns to the farmers CCD has got consultancy from Prerna organization and we have
also done a project under organization action component to find out the best available
alternative for the groundnut cooperatives. As per the findings and analysis of our project,
CCD has decided to install a decorticator so that the groundnuts can be processed and sold as
HPS. After successful operation in the first year the farmers will be handed over the
functioning of the cooperative.
6.3 Question 3: What are the resources it has, to follow its strategies?
It includes human as well as financial resources. As the organization has no income generating
activities other than interest on the funds it has its survival depends upon the grants from funding
agencies. Same time its survival depends upon employees’ competency and their involvement in
the work.
Board Members
CEO
Field Field Field

Project Account and Field
Manageme Clerk and Officer Officer Officer
Officer Administratio Officer
n Officer nt Trainee Accountant Anantapur Anantapur Anantapur
Adilabad Anantapur
Asst Field Asst Field Asst Field

Asst Field
Officer Officer Officer
Officer

6.3.1 Human resources-
The organizations’ board committee includes all the trustees who promoted it. All of them are
renowned people coming from diverse backgrounds and mostly have a long experience in the
development sector. Professor S Trilochan Sastry is secretary, founder and chief executive officer
of the organization. Earlier Chairperson was Shashi Rekha Rajagopalan, who is a development
consultant. As of now she has resigned from the board of CCD. Presently there is no chairperson
of CCD. The new board member is Mr. Y.V. Rao, having a vast experience in insurance sector.
Interesting thing is that those trustees, who have founded their own organization, have Professor
Sastry as trustee in their organization. (For the details about trustees, see annexure 2)
The organization has got thirteen employees in total including Prof Sastry. The break up of the
employees with respect to their posting in different offices is as follows-
Office Hyderabad Anantpur Adilabad
Number of employees 3 4 6
Number of employees in Adilabad is higher than that of Hyderabad and Anantpur because there
operations started in 2004 whereas in Anantpur the operations were started in 2005. In
Hyderabad number is less because these employees are involved with administrative activities
and higher number will add up to the administrative cost. The average age of the employees is 32
years which can be considered good for the organization as most of its work is related to field
visit. Only 2 female employees are there because of the nature of work performed by the
organization. All the employees are having work experience in the development sector except
Ms. Mallika Srivastav who has done PRM from IRMA and joined the organization in May, 2005.
Apart from experience, employees are having professional qualification also. (For the details
about the employees’ work experience and their qualification, see annexure 3) All the employees
except Ms. Mallika are well acquainted with the regional language which is essential to convince
the farmers for formation of cooperatives.
6.3.2 Financial resources-

If we see the income and expenditure statement of the organization, it is evident hat less than 5%
of total money comes from income generating activities or interest on saving accounts. Rest of
the amount is arranged through grants from other organizations. CCD got grants from HIVOS
(Netherlands), Sir Ratan Tata Trust (SRTT), Friends of Women World Banking (FWWB), and
Cooperative Development Fund (CDF) for its first two years of functioning. HIVOS is the major
contributor as it has donated Rs 22, 55,133 which is almost 80% of the total grant. Following
table shows where the grants from different organizations are used.
Organization HIVOS SRTT FWWB CDF

Use of grant For capital, For market For market For promotion
recurring expenses study purpose study purpose of cooperatives
and study purpose
Important thing to mention here is that CCD had Rs 13,44,714 as unutilized fund at the end of
last financial year which was higher than the total expenses of the organization in the year.
Implication is that CCD would not suffer from lack of funds in the current year also, if it does
not expand much.
Consolidated income and expenditure statement of CCD for the last financial year shows that the
FWWB and SRTT’s grants are specifically used for conducting market studies. The following
table shows the break up of expenditure under administrative activities and for studies and
consultancy.
Activity Administrative Studies and consultancy

Expenditure (in Rs and Rs 8, 01,662 (69.9%) Rs 345188 (30.1%)
as % of total)
The reasoning behind higher percentage of administrative cost is that the organization’s main
activity is promoting cooperatives. For that there is requirement of staff in proportion to its plan

about number of cooperatives to be formed. The head under which maximum expenses (26.4%
of total expenses) are incurred is salaries. (For income and expenditure statement of last year, see
annexure 4). In the years to come the administrative cost will further increase as the number of
cooperatives to be promoted every year will grow and more staff will be required for that.
One more important thing to be mentioned here is that income exceeds expenditure by Rs
12,784. This is after considering depreciation Rs 81,388 for the fixed assets worth Rs 3, 96,624.
It indicates that the funds are utilized judiciously and there is no over expenditure in aggregate
terms.
6.4 Question 4. How are these resources maintained?
6.4.1 Recruitment & Selection:

The total strength of CCD presently is thirteen. The recruitment in CCD has gone through
different phases. In order to kick start the operations Prof. Sastry toured extensively
understanding about feasibility of the concept of the commodity cooperatives and he himself was
the founding member and the first employee of CCD starting since the day CCD got registered in
June 2003.
Then in September 2004 he recruited his first employee Mr. Sesha Rao Rathod as a Project
Manager of operations in Adilabad district. He was earlier working as a Deputy Project Manager
in Velugu scheme promoted by Government of Andhra Pradesh through SERP (Society for
elimination of Rural Poverty). Mr. Sesha Rao is very important in the organisation only next to
Prof. Sastry as he has got a lot of experience in promoting collective marketing, etc. From
September 2004 to December 2004 Mr.Sesha Rao worked in Adilabad in association with a paid
consultant to demonstrate the concept of commodity cooperatives by procuring the commodities
at the market price and there by encourage people into forming a cooperative for mutual benefit
in two villages namely Bhimpur and Patnapur of Narnoor and Jainoor mandals respectively.
In December 2004, two more employees Mr. Gangu who was also working in Velugu as a
community coordinator with 4 yrs experience was taken in along with Mr. Prahlad who was

working as a community facilitator with an experience of two years. Mean while three people
were recruited in Hyderabad office for administrative work. Mr. Ravi Shankar(Manager-
Administration), Ms. Madhavi(Accounts Incharge), and Ms. Taramma(Office Help). All the three
members have come from CDF (Cooperative Development Foundation). This shows how CCD
wants its administration to be on similar lines of CDF.
In February 2005 the recruitment process changed with a set of more formalized procedures. An
IRMA graduate Ms. Malika Srivastava was recruited with an official interview being conducted
at IRMA. From that point on all the recruitments are being formalized. Each employee has to
undergo a written test and those who clear the test can attend the interview. In May 2005 four
people were recruited through this process in Anantapur and two were recruited in Adilabad. The
quality of people coming into CCD seems to be very good. All those who come in have a
graduate degree at least and relevant work experience (if any).
6.4.2 Monitoring and Supervision:

As the organisation is pretty flat in structure the monitoring and supervision is informal and
mostly centralized with the CEO Prof.Sastry. The monitoring of operations are two fold in
Adilabad. Prof. Sastry keeps in continuous touch with the project manger Mr. Sesha Rao in
Adilabad. Mr. Sesha Rao monitors the people in Adilabad regularly. A project manager is needed
in Anantapur for better monitoring and supervision of activities. Presently Prof Sastry gives
targets and is in continuous touch with the Asst Field Officers in Anantpur. All in all it can be
said that the monitoring and supervision is simple and informal. Some new changes are being
introduced at the Adilabad office like monthly progress reports, bimonthly review meeting with
the project manager, etc.
6.4.3 Leadership

6.4.3.1 Brief introduction of “NHS leadership qualities” framework

There are fifteen qualities within the framework covering a range of personal, cognitive, and
social qualities. They are arranged in three clusters – Personal Qualities, Setting Direction and
Delivering the Service.
The personal qualities and values are at the core of the framework. The scale and complexity of
the change agenda and the level of accountability means that NHS leaders need to draw deeply
upon their personal qualities to see them through the demands of the job. The outstanding leader
sets a vision for the future, drawing on their political awareness of the health and social care
context. This political astuteness and their vision for the future is underpinned by intellectual
flexibility. Coupled with Drive for results, this sense of Seizing the future is key in inspiring and
motivating others to work with them. High performing leaders provide leadership across the
organisation as well as the wider health and social care context to make things happen – to
deliver service results. They use a range of styles which challenge traditional organizational
boundaries and ways of working and emphasize integration and partnership. The very best of
these leaders at senior levels also help to shape national policy.

Each qualities clustered under different clusters can be analyzed based on a scale ranging from 0
to 3(few of the qualities has up to 4) depending upon the leadership qualities shown by the
leader.
6.4.3.2 Application of “NHS Leadership qualities” framework to the leadership in CCD
The rationale of applying the NHS leadership framework to analyze the leadership in CCD is
that, in this organization the leadership of the founder, secretary and CEO Mr. S. Trilochan
Sastry plays an important role in its every activity. Being the founder, the vision and mission of
the organization is strongly influenced by his visions. Being the secretary in the board, the
decisions taken also has an influence of him and finally coming to the implementation part, being
the CEO and the organization being a simple flat structure, the influence of his qualities and
philosophies on the activities is high. We analyzed each quality in the framework. In each quality
the CEO got the maximum figure except for three qualities. Those qualities are self awareness in
personal qualities cluster and empowering others and effective and strategic influence in the
delivering the service cluster. In these qualities, the CEO got the lowest number. Here self
awareness includes
Leader being aware of their personal impact on others. Which we felt is very low in the CEO of
the organization. Empowering others includes creating the space for others to take the lead on
particular issues and to grow in confidence and capability, being able to spot potential and
support the development of people across the organisation and Engaging and involving users in
service improvement. The CEO scores very low in this quality also. There was always a teacher-
student relationship between the CEO and the employees. The CEO is to tell what to do and how
to do the work. He sets deadlines and monitors directly. People scoring low in Effective and
Strategic influencing over relies on their own impact. They does not use subtle or informal
influencing, failing to understand the networks and coalitions across the health context and relies
too much on the force of their own impact, seeing only their side of the ‘argument’. This quality
of the CEO is much evident in the meetings we observed and also from the responses of the
employees. This make us give the CEO, the lowest in this quality. After analyzing the
framework, we feel that the CEO should be empathetic to the employees of the organization and

should give some freedom to the employees and give opportunity to nurture their creativity and
grow both in the organization and the career.
6.4.3.3 Brief introduction about the Framework Used- The Road Taken
Over seven years, the research group comprising James N. Baron, M. Diane Burton and Michael
T. Hannan Of Graduate School of Business, Stanford University did the Stanford Project on
Emerging Companies (“SPEC”) and has tracked a large sample of start-ups. The project aimed
to examine how founders approached key organizational and human resource challenges in the
early days of building their enterprises and to learn whether these activities have had enduring
effects on the companies. They constructed a detailed record of the evolution of nearly 200
young start-ups. They found notions about how to structure work and employment varied along
three main dimensions—attachment, coordination/control, and selection—each characterized by
a small number of distinct approaches from which organizational architects seemed to be
choosing.
Attachment. Founders articulated three different bases of employee attachment, which we label
love, work, and money. Some founders envisioned creating a family-like feeling and strong
emotional bonds between the firm and its workforce to inspire motivation and help retain
valuable knowledge workers. In this model, employees are bound to the firm by a sense of
personal belonging and identification with the company—in a sense, love. Within many other
SPEC firms, the primary motivator for employees is the desire to work at the technological
cutting-edge. Recognizing this, many founders anticipated providing opportunities for
interesting and challenging work to attract, motivate, and (perhaps) retain personnel. Here,
employees were not expected to be loyal to the company, the supervisor, or even co-workers per
se, but instead to a project. Finally, other founders stated that they regarded the employment
relationship as a simple exchange of labour for money.
Basis of Coordination and Control. A second dimension concerned the principal means
of coordinating and controlling work. The most common conception involved reliance on
informal control through peers or organizational culture. Other founders intended to rely on
professional control; they implicitly assumed that workers were committed and could do
outstanding work because they had been professionally socialized to do so. Not surprisingly, this

approach tends to be accompanied by an emphasis on hiring high-potential individuals from elite

institutions. Professional control emphasizes autonomy and independence, rather than
enculturation. A third group of founders envisioned achieving control via formal procedures and
systems.
Selection. The third dimension concerns the primary basis for selecting employees.
Some founders conceived of the firm as a bundle of tasks, seeking employees to carry out
particular tasks effectively. Because time and money tended to be their paramount concerns, the
focus was on selecting employees who could be brought up to speed as quickly and cheaply as
possible. In these cases, founders envisioned selecting employees having the skills and
experience needed to accomplish some immediate task(s). Other founders focused less on
immediate and well-defined tasks than on a series of projects—often not yet even envisioned—
through which employees would transition over time. Accordingly, they focused on long-term
potential. Finally, some founders focused primarily on values and cultural fit, emphasizing how
a prospective hire would relate with others in the organization.
Relationships Among the Three Dimensions. These blueprints can be classified into three
types of attachment and selection and four types of control, yielding 3 × 3 × 4 =
36 possible combinations. However, they found that the observations cluster into a few cells,
which we call the five basic model types for employment relations, summarized in
Figure 2
DI MENSIONS EMPLOYMENT
Coordination/ MODEL
Basis of  Compensation (“money”) Attachment Selection Control
Work Potential Professional STAR
Attachment &  Qualities of the work (“work”)
Work group as community (“love”)
Retention 
Work Skills Peer/cultural ENGI NEERI NG
 Skills
Criterion for  Exceptional talent/potential Love Fit Peer/cultural COMMI TMENT
Selection  Fit with the team or organization
Work Skills Formal BUREAUCRACY
 Direct monitoring
Means of  Peer and/or cultural control Money Skills Direct AUTOCRACY OR DI RECT
Control &  Reliance on professional standards CONTROL
Coordination  Formal processes and procedures
Figure 1 Figure 2

6.4.3.4 Application of “The Road Taken” Frame work to the organization CCD
The rationale of applying this framework for the organization is that, this framework is
applicable to the start up organizations and is useful to project organization’s future prospects.
This framework fits well for those organizations which has a high influence because of its
founder. Here CCD is also a nascent organization and is also highly influenced by its founder,
Mr. Trilochan Sastry. We examined the organization from all the three dimensions i.e.
attachment, coordination/control, and selection. We are able to fit the organization into one of the
five employment models.
Analyzing CCD on the dimension of attachment, the motivational factor to work of the
employee is the type of work rather than money and love. The employees in the organization has
other various offers from which they can get more money and also CCD doesn’t provide any
high pay salaries to the employees. So the attachment of the employees towards the organization
because of money does not fit. The observations and the responses of the employees clearly
showed the attachment is not because of the love in the organization. There is no family type
relationship in the organization. In fact, few employees responded that they are in need of love in
the organization from the CEO and the other employees. For all the employees, the primary
motivation to work in the organization is to work under the renowned person i.e. CEO coupled
with the working for the farmers and promoting commodity cooperatives. They find this work
interesting and are producing results for their efforts. So after analysing all the above situations,
we found that from the dimension of attachment, CCD falls under ‘work’ in the framework.
Regarding Criteria for selection, we analyzed the recruitment process and the employees’
qualifications and the positions offered and the type of work done by the employees. Most of the
employees does not have the background or experience relating to the present work done by the
employees. They were not selected for working on a particular task. Each employee is given
different tasks and are also most of them interchanged between the employees. These shows the
employees were not taken for meeting an immediate task. The employees were selected based on
the potential they have, the experience they have and their qualifications. So the criterion for
selection of employees in CCD is the potential of the employee. Thus CCD falls under ‘potential’
in the framework regarding the dimension of selection.

Regarding the means of control and coordination, in CCD each employee maintains his/her own
record. Documents his/her work, accomplishments, learning. Employees are expected to
maintain their work properly. All the employees are committed to the work that they are doing.
Recruitment of Miss Mallika from IRMA is an additional factor to put CCD under professional
control in the dimension of control and coordination in the framework.
Attachment : WORK
Selection : POTENTIAL STAR

Means of Control : PROFESSIONAL
And Coordination
After fitting the dimensions in the framework, CCD’s employment model came out to be as
“star” model. CCD can be highly successful in efficiently performing its activities as in the study,
star model start ups turned out to be the most successful organizations in achieving performance.
But regarding the organizations sustaining or failing, commitment model rates the best followed
by the star model. The organization to approach its employment model towards commitment
model should make changes like adding love to the work attachment and increasing peer control.
The organization needs to give more freedom to the employee and should do activities which
create a family type relationship in the organization. This outcome of the framework matches
with the employees’ responses in the interviews we conducted.
6.5 Question 5. Who are all linked with the organization and how?
6.5.1 Stakeholders:
The stake holders involved in CCD are as explained in the following diagram:

Funding Organizations
E
m B
p o
l CCD a
o r
y d
e
e
s
Farmers
The stake holders in CCD are basically four fold as shown in the above diagram.
Farmer members:
The organisation basically exists for the farmer members whom CCD is working with. These are
the most crucial ones out of all the stake holders because if the work being done CCD is not
relevant to the farmer members sooner or later the organisation will not be effective and the basic
purpose and the organisation will disappear. Everything that is done should be and is being
evaluated by the organisation with farmers in the mind.
The other stake holders are no less important in the organisation.

Funding Agencies Or Donors:

As CCD doesn’t charge any fee for the consultancy it provides to the nascent Commodity and
Thrift & Credit cooperatives it has to entirely depend on the funding agencies for the income at
least in the near future until the cooperatives get strengthened. The ability to manage the terms
and conditions of the funding agencies would be a key challenge in front of CCD. From the
analysis on funding given in this report it is clear that funding is not a problem for CCD at least
in the short run. But the pressure to show the results may act as a threat of not allowing enough
time for the process of development intended.
Board of Trustees:
The board of trustees, decide in which way, the organisation is making progress and make
suitable adjustments if required. CCD has an elite board from diverse backgrounds. Annexure 2
carries a brief about the board of trustees. The presence of an elite board has many benefits. For
example, the presence of Mr. Rama Reddy on the board acted as a catalyst in CCDs negotiation
with the international donor HIVOS which is now funding CCD till July 2006.
Employees:
Any organisation is only as good as its employees are. From the recruitment and selection policy
of CCD it is clear that only quality people are entering in this organisation up till now. The first
challenge of getting the right people in is not the only challenge. The bigger challenge would be
to retain them for a relatively longer period of time. For addressing this issue the remuneration
package an employee gets may be an indicator. CCD believes in paying its employees well. It
pays more than the industry standards. But retention would only be not possible with more salary
for long. The work the employees are doing is a good motivating factor and the leader they are
working for is the reason enough for remaining in the organisation at least in the short to medium
term.
Managing the dynamics between various stakeholders is also a very important challenge in front
of CCD.
We analyzed the fit of the organization using David C Korten Framework

6.6 David c Korten’s framework:

This framework is about the fit of the program run by the organisation. Analysis through this
framework provides us a means to understand the future of the organisation. As, this is a new
organisation therefore its future also depends on the success and impact of the initial programs
run by the organisation. Following figure shows this framework:
Program
Task
Outputs
requirements
Competencies
Needs
Organisation
Stakeholders
Expression Decision
Process
Organisation: centre for collective development.

Stakeholders: Here the stakeholders are the beneficiaries for which the program is running,
employees and board of directors of CCD and funding agencies who are funding this
organisation for carrying the program.
Program: Main program of the organisation is the promotion of thrift cooperatives in the initial
stage and than promoting the commodity cooperatives. Here only the major commodity of the
area is traded in the cooperative in the initial phase.
Now we will try to understand the fitness of the above three to measure the effectiveness of the
program.

Needs: In the villages where CCD is working we find that nonavailability of credit at lower rate
of interest and market for the produce of the farmers are prevalent problems apart from various
political and social problems. Farmers have to give their produce to the moneylenders at lower
prices because they have to pay back the loans they have taken at a very high rate of interest.
Farmers also have to suffer losses because of the faulty weighing practices which is very
common in that place. Therefore presence of a system where farmers can get loans at the lower
rate of interest and free themselves from the clutches of moneylenders and get better rate for
their produce are the needs in that place.
Outputs: As the program run by CCD is promotion of thrift and commodity cooperatives.
Therefore the output will be in the form of availability of credit to the farmers at lower rate and
availability of an efficient market for their produce. These two things answer very important
needs of the farmers.
Task requirements: To make this program successful, it requires understanding the village profile
and dynamics between the people. Promotion of commodity cooperatives requires understanding
of the market and various value addition possibilities available with it. It requires human
resource which can work efficiently at the ground level and act as a binding force in the initial
phase. It requires people who have some experience in such works and wanted to work for the
people.
Competencies: Looking at the above requirements we found that CCD contains people who has
prior experience in this field or has studied specifically in this field. Two of the staff at adilabad
had already worked in velugu, one staff has done her PRM from IRMA, two staff in anantpur has
done its MSW and other two has experience in this field. CEO of the organisation itself is a
highly experienced person and has a strong determination of serving people. This organisation
also carries out training session for their employees. Before entering into any business, thorough
analysis about that business is carried out through professionals to decrease the chances of
failure. One of the problem areas which can be found is inexperience of employees in Anantpur
area in the field of commodity trading. There is no employee in that area which has earlier
experience in this field. This problem is sorted out by regular guidance of Prof. shatri.

Expression and Decision process: We found that the place where needs are expressed and the
place where decision is taken is quite close to each other. Prof. Shastri himself goes to the each
village to understand their problems. This helps in reducing any type of distortion due to
different understanding.
After analyzing the program through this framework we found that there are high chances that
this program will be successful. Leaving apart few things, we found that there is a fit between the
needs and output, Task requirements and competencies. Therefore we can predict a bright future
for the organisation in the coming years.
7 CCD AS A LEARNING ORGANIZATION
Here we have tried to understand this organisation on the basis of the learning process approach.
We are trying to study the growth of the organisation over the last two years.
This overall process is broken into three stages:

Stage 1: Learning to be effective: This requires an exploring mind and in this stage energy is
focussed on finding what is vital and working in that direction. As CCD has came into existence
two years back. First one year is spent by Prof. shastri in doing the extensive fieldwork in
Anantpur and Adilabad district of Andhra Pradesh. Here they developed a familiarity with the
problem in question from the beneficiary’s perspective as finding out the most important activity
that will provide them highest economical benefit. Here they found that providing better prices
for the agricultural produce of the farmers and providing them money at lower interest will have
the highest impact on their livelihood. In the initial stage they formed thrift cooperative with the
basic intention of later forming the commodity cooperatives to provide better price to the
farmers. These thrift cooperatives are helping them to bring the farmers together on a common
platform and also helping to fulfill their small credit needs. All this is done with the fund
provided by the donor agencies and with the help of local resource person. Now they are
working in the direction of addressing these needs.

Stage 2: Learning to be efficient: In the starting period they tried to find out vital few which can
have maximum impact on the life of beneficiary. In the recent time energy of the employee is
focused on efficiently implementing those vital few. In adilabad, farmers pooled all their
soyabean and tur dal produce with the help of CCD and sold it at higher rates. This provided
them higher returns than earlier. Similarly, in anantpur district they are working in the direction
of setting up a decortication plant and selling the graded output which provides them higher
returns. Efforts are still carried out to find the new feasible ways for adding value to these
agricultural products. Employees in both the districts are working on finding the new ways to
efficiently use the main agriculture produce of the farmers in cooperative.
Stage 3: Learning to expand: This organisation is very new to enter into this phase. Right now
efforts are made to increase the number of cooperatives in the different villages. Seeing at the
vision of Prof. sastry, he wants to replicate the model of commodity cooperatives at a very large
scale.
Effective Efficient Expand
I
P N T T
E R R M
I
R A A A
T
F N N T
I
O S S U
A
R I I R
T
M T T I
I
A I I T
O
N O O Y
N
C N N
E
TIME

Above is the diagram that shows the learning process approach in an organisation. We find this
organisation in the first phase of this approach. As, here most of the energy is used for learning
an effective way of intervention and implementation. Also, efforts are carried on to increase the
efficiency. Looking at this framework we find that this organisation will expand in the future
once it proves himself in the existing places.
8 SOUL OF THE ORGANIZATION
An organisation can be thought of an analogy to living beings. Just as life needs some vital
things to live (function) an organisation also needs some ‘vital’ things to survive. Every living
being has a set of systems ((nervous, respiratory etc.) (System as defined here is the part of the
organism which performs a particular process)) which help it to achieve the ultimate objective of
life i.e. to survive. However the systems must be linked, coordinated and made to work. It has
been proved that each system on its own is vital for the survival of the organism. The
coordinating entity is called the
soul of the organism which is
driving the organism in its
Funding
endeavor for its survival. As
part of our study of the
organization, we tried to
identify and understand the
drive or the source of energy
Trilochan
for the organization. i.e. the Sastry
crucial thing which is

responsible for the survival and
Beneficiarie
functioning of the organization, s
Employees
which may also be called the

soul of the organization. We
started trying to understand this
drive from different angles.
Firstly we start with the beneficiaries. Beneficiaries are really important for this organization

since this organization carries out functions which primarily involve beneficiaries. On our
interview with the beneficiaries we came to know that the primary reason for them to join the
cooperatives (thrift and farmers cooperatives) being facilitated by the organisation is the
inspiration they derived from Professor Sastry’s talks and his way of working with them when he
had helped them to procure seeds and linked them to fertilizer traders. Secondly, our observation
of the employees showed that they are highly committed to their work. They are vital to the
working of the organisation since all the activities are done by them. During our interviews with
the employees all of the employees have told us that the very reason they are working in the
organisation is their liking to be under the guidance of a person like Mr. Sastry. As discussed
earlier, each employee directly interacts with the CEO and performs according to his instructions
and guidelines. This may be because of the less number of employees in the organization but at
present, without the CEO’s guidelines we doubt that any activities including the minor one can
be performed. Thirdly, money is important for the running of the organisation. Most of the funds
for the organisation are due to the linkages of Mr. Sastry with different companies, organisations
and people. During our stay, Mr. Sastry was negotiating with the Infosys chairman Mr. Narayan
Murthy for a grant of twenty crores to make a corpus for the organization. This shows the
importance of Mr.Sastry regarding the funding for the organization. We have seen that the
different stakeholders mentioned above seem to have an analogy with different parts of the living
organism each having a priority for the survival of the living being. However a common base is
needed to ensure the survival of the organisation. The soul acts as the base for all the systems
(nervous, digestive etc.) in an organism to survive. In this endeavor we identified Mr. S.
Trilochan Sastry as the soul of the organization who is making this organisation run.
9 CONCLUSION AND RECOMMENDATIONS
The organization’s success depends upon the performance of the farmers’ cooperatives and the
benefits returned to the small and marginal farmers. The organization is still in its early stage and
the farmers’ cooperatives are not yet running on full scale. It takes time to see the success of the
organization till the farmers’ cooperatives gets successful and particularly the small and marginal
farmers get benefited. The organization having the vision of reaching the status of NDDB, needs
to develop a clear model for these cooperatives. Presently, there is no particular clear model and

the cooperatives are being promoted based the situation then and there aroused. There may be a
problem while the organization tries to replicate the cooperatives at a large scale. The
organization while trying to promote cooperatives is also needed to meet the targets given by the
funding organizations. The targets given are in terms of number of cooperatives to be promoted
by the end of the year. This may pressurise the organization to work as target based which in turn
may reduce the quality of its work. The CEO of the organization also believes that without the
corpus fund, NDDB would not have achieved such a success. The organization needs to create a
corpus fund to get out of this target based work and work independently. The employees of the
organization need to be given more freedom to work. They should be provided opportunities to
nurture their own skills and perform to the maximum. The present employee relationships
concerning with work should be added with love.

1 Introduction.................................................................................................................................4
2 Objectives of the study...............................................................................................................4
3 Methodology-...............................................................................................................................4
4 Source of data- ...........................................................................................................................4
5 Scope and limitation of the study- ............................................................................................5
6 Framework to study the organization- ....................................................................................5
6.1 Question 1: What is the Organisation for? ............................................................................6
6.1.1 Need- Where did it all start?...........................................................................................6
6.1.2 Mission of CCD: ............................................................................................................8
6.1.3 Vision of CCD:...............................................................................................................9
6.2 Question 2: How is it going about it?....................................................................................9
6.2.1 Strategies of CCD- .......................................................................................................10
6.2.2 Current and proposed activities-...................................................................................11
6.3 Question 3: What are the resources it has, to follow its strategies?.....................................12
6.3.1 Human resources- ........................................................................................................13
6.3.2 Financial resources- .....................................................................................................13
6.4 Question 4. How are these resources maintained?...............................................................15
6.4.1 Recruitment & Selection:..............................................................................................15
6.4.2 Monitoring and Supervision:........................................................................................16
6.4.3 Leadership.....................................................................................................................16
6.5 Question 5. Who are all linked with the organization and how?.........................................22
6.5.1 Stakeholders:.................................................................................................................22
6.6 David c Korten’s framework:...............................................................................................25
7 CCD as a Learning Organization............................................................................................27
8 SOUL of the Organization.......................................................................................................29
9 CONCLUSION AND RECOMMENDATIONS....................................................................30

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OTS Organization Understanding

2 OBJECTIVES OF THE STUDY

 To develop an understanding of what an organisation is all about, to know about its

CCD 4 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

5 SCOPE AND LIMITATION OF THE STUDY-

6 FRAMEWORK TO STUDY THE ORGANIZATION-

CCD 5 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

What is the Organisation for?

How is it going about it?

What are the resources it has, to follow its strategies?

How are these resources maintained?

Who are all linked with this organization and how?

6.1 Question 1: What is the Organisation for?

6.1.1 Need- Where did it all start?

CCD 6 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

5. Distress Sales at 2. Poor quality seed

4. Tied Sales 3. Poor farming

CCD 7 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

6.1.2 Mission of CCD:

CCD 8 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

Educational objective: Intense capacity building of cooperatives. As the cooperative functioning

6.1.3 Vision of CCD:

6.2 Question 2: How is it going about it?

CCD 9 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

6.2.1 Strategies of CCD-

CCD 10 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

6.2.2 Current and proposed activities-

CCD 11 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

Field Field Field

Asst Field Asst Field Asst Field

CCD 12 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

6.3.1 Human resources-

6.3.2 Financial resources-

CCD 13 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

Organization HIVOS SRTT FWWB CDF

Activity Administrative Studies and consultancy

CCD 14 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

6.4 Question 4. How are these resources maintained?

6.4.1 Recruitment & Selection:

CCD 15 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

6.4.2 Monitoring and Supervision:

CCD 16 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

6.4.3.1 Brief introduction of “NHS leadership qualities” framework

CCD 17 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

6.4.3.2 Application of “NHS Leadership qualities” framework to the leadership in CCD

CCD 18 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

CCD 19 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

approach tends to be accompanied by an emphasis on hiring high-potential individuals from elite

CCD 20 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

CCD 21 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

Selection : POTENTIAL STAR

CCD 22 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

CCD 23 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

Funding Agencies Or Donors:

We analyzed the fit of the organization using David C Korten Framework

CCD 24 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

6.6 David c Korten’s framework:

Organisation: centre for collective development.

CCD 25 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

CCD 26 Arun, Kanti, Lokesh, Satish, Reddy, Vinod

7 CCD AS A LEARNING ORGANIZATION

This overall process is broken into three stages: