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Cooperatives in Ethiopia, specifically agricultural cooperatives have multi-dimensional problems. Nevertheless, these problems have mainly laid on lack of management skills and Capacity to lead cooperative business activities. Poor sense of ownership and inadequate members' participation are serious problems for successful cooperative development. The cooperative societies could not meet members' satisfaction. Many cooperative members and leaders have very less understanding about cooperative rules and regulation. Leaders and staffs have only word commitment which will not implement well. They are unable to plan, organize, lead, coordinate and control their cooperatives main activities. Better management had not practiced at all level of cooperative organization. This study shows that better management will come through effective education, training and development. Training and development of human resources are inputs to bring changes. Without effective education, training, meaning full membership and efficient staffs/ managers cooperative sustainable development is impossible.So the involvement of all key elements can create the cooperatives' total quality management.