Effect of Managers’ Professional Efficiency on the Net Sale of Cooperative Union in Oromia Regional State, Ethiopia

: Employee involvement affected the financial performance of the cooperatives and in successful cooperatives, professional issues play a crucial role in harnessing the different associative and business forces at play in a cooperative. It is often inferred that agency problems are more prevalent, disturbing and acute in cooperatives than in other (non-investor owned) businesses. Therefore this study focused on the assessment of the effect of professionalism on the net sale of cooperative unions. 228 respondents were calculated from the selected nine cooperative unions in oromia regional state, Ethiopia. Both primary and secondary data sources were collected and analyzed using multiple regression model through SPSS. The result of the research concluded that managers’ professional efficiency has significant influences on the net sale and there are also differences in the influence among the managers’ professional related independent variables on the net sale of the selected cooperative union (CC 4.0) International License.


INTRODUCTION
According to Homayara L. et al. (2008) given the very large volume of business that agribusiness cooperatives in India handle and given the tough competition that they now face in the wake of large scale entry of domestic and foreign companies in the agribusiness sector in the country after the launching of New Economic Policy, it is essential for the survival and growth of agribusiness cooperatives that they are professionally managed. Mobilizing funds for diversification and modernizing of operations, management of funds, procurement of produce of members in small quantities from remote rural areas, processing the produce using the latest technologies available, exploring and tapping new markets for inputs and outputs, marketing of products at competitive prices in a free market regime, ensuring high quality of products, keeping production and other operating costs under control, attracting and retaining good staff, securing and using right information at right time for making decisions activities require professional managers to handle them efficiently. In the twenty-first century, it will be the manager's knowledge, foresights, insights, management skills, and ability to access and use the right information at the right time for making various decisions that will determine the prospects of survival and growth of business enterprises. Therefore, agribusiness cooperatives will have to professionalize their management and sooner they do so, the better it is for them. In the absence of professional management, money, manpower and material resources of agribusiness cooperatives worth thousands of resources are wasted annually. Liu et al. (2015) showed positive effect between professionalism and performance and performance difference between professional and unprofessional people. This motivated the researcher to conduct a research on the effect of managers' professional efficiency on net sale of cooperative union in Oromia region, Ethiopia.

Statement of Problem of the Study
According to MOCDM (2008),there exist opportunities for mismanagement namely: Insufficient commitment by stakeholders, insufficient clarity of roles and responsibilities by stakeholders, inadequate professionalism and discipline, inadequate internal management and operational system, elections are not free and fair and inadequate management committee education. Successful cooperatives are results oriented and creative with marketable products. They invest in quality management, and their pricing as well as interest rate policies are inspired by the prevailing market conditions (Develtere et al., 2008: 20). Research related to auditor professionals with the auditor's performance has been studied by many researchers before, but research has been more directed to the professionalism influence on the performance of auditors (Nasrabadia & Arbabian, 2015) But not much to examine whether there are differences in the effect on the performance of the auditor's professionalism among men and women auditors. To fill this gap the researcher conducted this research on this area.

Objective of the study
To study the effect of managers' professional efficiency on the net sale of cooperative union in Oromia region, Ethiopia.

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Published By: Embar Publishers Hypothesis Ho: Managers' professional efficiency in the cooperative has no significant effect on net sale of cooperatives union in Oromia regional state, Ethiopia. H1: Managers' professional efficiency in the cooperative has significant effect on net sale of cooperatives union in the Oromia regional state, Ethiopia.

Research design
Co-relational design will enable the researcher to map out the effect of professionals efficiency and governance of cooperative on business performance of cooperatives.

Samples
The research sample is determined by purposive sampling counted 228 respondents sample from cooperative union employees. Data were collected from both primary and secondary sources. Analysed using multiple regression model through SPSS.  Teaming Skill: the findings from Table 4.16 above, indicated that managers' teaming skills has positive statistically significant effect on the business performance (net sale) of the cooperative union β = 16492; t-value = 0.478 and p-value 0.033<0.05). This result implies that, one unit Published By: Embar Publishers increase in managers 'teaming skill increases the business performance (net sale) of the cooperative union by 16492 units. Table 4.16 above, indicated that managers' motivational skills has positive statistically significant effect on the business performance (net sale) of the cooperative union (β = 14351; t-value = 0.419 and p-value 0.007<0.05). From this result one can conclude that, one unit increase in managers' motivational skill increases the business performance of the cooperative union by 14351units.

Motivational Skill: the result from
Communication Skill: the output from Table 4.16 above, indicated that managers' communication skill has negative statistically significant effect on the business performance (net sale) of the cooperative union (β = -94304; t-value =-2.280 and p < 0.024 < 0.05). From this result one can conclude that, one unit change in managers' communication skill with boards, members and other stakeholders of the unions changes the business performance(net sale) of the cooperative union by -94304 units.
Leading Skill: as evident from the output from Table 4.16 above, indicated that managers' leading skills has positively statistically significant effect on the business performance (net sale) of the cooperative union (β = 2225; t-value =0.745 and p < 0.0057 < 0.05). From this result one can conclude that, one unit raise in managers' leading skill of the business activities raises the business performance(net sale) of the cooperative union by 2225 units. Table 4.16 above, indicated that managers' decision making skill has positively statistically significant effect on the business performance (net sale) of the cooperative union (β = 3824154; t-value =0.009 and p < 0.002 < 0.05). The result indicates that, one unit increase in managers' decision making skill in the unions increases the business performance (net sale) of the cooperative union by -3824154 units. Table 4.16 above, indicated that managers' Conflict resolution Skill has positively statistically significant effect on the business performance (net sale) of the cooperative union (β = 50487001; tvalue =1.171 and p < 0.043 < 0.05). From this result one can conclude that, one unit move up in managers' conflict resolution skill concerning the leadership and business issues of the unions' moves up the business performance (net sale) of the cooperative union by 504870 units. Table 4.16 above, indicated that managers' staff maintenance skill has positively statistically significant effect on the business performance (net sale) of the cooperative union (β = 178638; t-value =-0.286 and p < 0.000 < 0.001). From this result one can conclude that, one unit change in managers' staff maintenance skill with boards, members and other stakeholders of the unions changes the business performance(net sale) of the cooperative union by -178638 units.

CONCLUSION
The findings from the multiple regression models revealed that managers professional efficiency variables were found significant at less than 5% probability level. This implies that the explanatory variables were shown to have more powerful effect on the dependent variable. Lack of efficient professional managers in cooperatives posses a big challenge to efficiently run and manage the day to day business activities of the cooperatives. The study result has shown that respondents have witnessed that cooperative unions were not managed by well-qualified, energetic, matured and competent professional managers.

Acknowledgement
First and foremost, Glory to Almighty God for providing me good health and who helped me to do my research successfully. I would like to thank my supervisor, Professor S.Nakkiran (PhD), for his guidance dedicated support, supervision throughout this dissertation work. I deeply thankful to Cooperative Department College of Business & Economics for providing me the opportunity to pursue the Doctoral Program. I express my heartfelt thanks to Ambo University for research funding for successful completion of the study. I am most deeply indebted to thank the study respondents for their open, honest and truthful answers and for the considerable time and insight they dedicated despite their already full schedules. I also need to acknowledge my parents my beloved wife S/r Desistu Gadisa Wakjira beside her very huge burden of house works and caring to child, she contributed a lot to this dissertation.