HR Structure and Responsibilities in Dairy Cooperative Unions

HR Structure and Responsibilities in Dairy Cooperative Unions: A Journey and Learning

Working in a dairy cooperative is not the same as working in a private sector company or a government department. Here, Human Resource Management goes beyond administration and workforce planning. Every HR decision connects back to the livelihoods of milk producers who depend on the cooperative for their daily income. The cooperative system stands on trust, fairness, transparency and collective progress.

Over the years at our Union, we have learned that HR in a cooperative requires patience, sensitivity and the ability to balance human values with organizational efficiency. Even today, after decades of experience, the cooperative environment continues to teach us something new each day.

Understanding the Cooperative Environment

Dairy cooperatives work within a three-tier democratic system, where milk producers are not only suppliers, but owners and decision-makers.

1. Village Level – Milk Producer Cooperative Societies

Milk producers form societies at the village level. They elect their own managing committees. The society collects and tests milk, ensures fair payment and provides support services to members.

2. District/Regional Level – Dairy Cooperative Union

Multiple societies form the membership of a district dairy cooperative union. The Union operates milk processing plants, engineering services, veterinary support, laboratories, distribution systems, field operations and administrative departments. It is governed by an elected Board of Directors, while the day-to-day functioning is led by the Managing Director (MD).

3. State/National Level – Federation

The Federation manages brand identity, product marketing, distribution networks and strategic market development. It ensures that the value created reaches back to the farmers.

This structure ensures that value addition is not centralized; it is shared. In this system, HR plays a crucial role in maintaining discipline, professionalism, welfare and organizational values while enabling development and modernization.

HR Structure in Dairy Cooperatives

A typical HR structure in a dairy union includes:

Head (HRM) / General Manager (HR)

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Deputy / Assistant Managers (Recruitment, Industrial Relations, Training, Administration)

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HR & IR Officers, Welfare Officer, Time Office Team, Administrative Assistants

This structure supports operations across:

• Milk procurement

• Production and maintenance

• Quality control / Assurance

• Supply chain and distribution

• Sales and marketing

• Central office administration

HR becomes the coordination hub, ensuring smooth workflow and consistent application of organizational rules and cooperative values.

Approval Authority and Delegation

In a cooperative structure:

• The Board of Directors holds the ultimate authority for HR policies, cadre structure and key service rules.

• The Managing Director (MD) is vested with powers for appointments, promotions, disciplinary actions and organizational deployment.

• The Head of HRM prepares proposals, verifies eligibility, ensures documentation and if authority delegated by MD, then issues orders including offer letter, appointment letters and so on.

This allows efficiency in operations while maintaining transparency, accountability and alignment with cooperative by-laws.

Key HR Responsibilities: What the Work Actually Involves

Manpower Planning and Recruitment

Manpower planning begins by understanding organizational workload and operational priorities. Recruitment must be transparent, merit-based and in accordance with service rules. We document every step so that decisions are fair and defensible. Candidates often value stability, welfare benefits and dignity of service over high salaries. When expectations are clearly communicated from the beginning, trust is built even before joining.

Performance Management and Promotions

Performance evaluation requires clarity and consistent communication. Appraisals are documented objectively to avoid ambiguity. Promotions are processed with care and aligned to demonstrated capability, not influence or tenure. When fairness is visible, it strengthens confidence in the HR system. Balancing transparency and sensitivity is essential, especially because attrition in cooperatives is naturally low and career progression is gradual.

Training and Capacity Building

Skill levels vary widely across departments and technology keeps evolving. We coordinate training through NDDB, GCMMF, Federations, professional institutes and internal trainers. Technical training, leadership development and cooperative value orientation are equally important. When employees apply learnings at the workplace, growth becomes visible across the organization.

Industrial Relations and Employee Welfare

Harmonious industrial relations are essential for uninterrupted operations. Our approach emphasizes listening, understanding and engaging in respectful dialogue. Welfare programs, safety measures and fair grievance handling strengthen trust. When employees feel valued, cooperation becomes natural and workplace peace follows.

Legal and Statutory Compliance

Compliance is not an occasional exercise. It is part of the daily work culture. We maintain registers, audits, contract labour documentation, safety records, statutory filings and policy adherence under labour laws, factory act, food safety and cooperative service regulations. Preventive compliance protects both employees and the organization.

How to Tackle Challenges in a Cooperative Setup

Working in a cooperative means working in an environment where participation and consultation guide decisions. This sometimes makes processes slower, but it builds collective ownership. Over time, we learned:

• During recruitment, highlight purpose and long-term stability instead of financial comparisons.

• In performance evaluation, communicate expectations early and record every step for clarity.

• With unions, keep discussions respectful; ego has no place in cooperative working.

• When adopting new systems, involve people from the start and move gradually.

• For compliance, maintain calendars and internal checking systems to prevent last-minute pressure.

These approaches have helped us turn challenges into learning and growth.

At the last say..

HR in dairy cooperative unions is not only about managing employees but it is about supporting the system that sustains rural livelihoods. Our role carries responsibility, fairness and service. The cooperative model has taught us that systems matter, but values matter more. People are not resources here but they are contributors and partners.

Even after many years, the cooperative continues to teach us patience, humility, consistency and fairness.

For us, HR is not just a function.

It is service to the organization, to the workforce and ultimately, to the farmers who are the heart of the cooperative movement.

By Mit

HR Professional