Managing The Cooperative Enterprise

This book revolves around the idea that capitalism is not a democratic system and that a system of producer cooperatives, or democratically managed enterprises, gives rise to a new mode of production which is authentically socialist in essence and fully consistent with the ultimate rationale underlying Marx’s theoretical approach. The author argues that the cooperative firm system outlined in this book offers a rich array of non-economic benefits that justify its classification as a ‘genuinely socialist’ entity, with real potential for achieving true economic democracy.

This book presents a study of cooperatives as a two-layer entrepreneurial model, and analyzes cooperative enterprises. Above all, it explores how inducements (from the firm) and contributions (from its members, in their respective roles) are aligned, and seeks to answer the question of what this means for managing each cooperative as a firm as well as a group. The book is divided into three parts, the first of which begins with an analysis of specific aspects of cooperative enterprises, with a focus on the added value of cooperation, the weighing of interests, and a behavioral perspective on the imminent communities and their goals. In a structured approach, the book examines the various facets of relationships in cooperatives on a transactional, financial and control level. Further, a case study on the Dutch cooperative Rabobank illustrates what happens when members fail. In turn, part two concentrates on integrating the lessons learned with the existing economic literature on cooperatives, so as to contribute to a theory of cooperative management. Finally, the book links the theoretical approach to practice: in the third part, it reports on the outcomes of using a computerized simulation game to show members of cooperatives how to manage their business and the cooperative business at the same time, enabling them to understand and actively practice two-level entrepreneurship.

This book is the fruit of our work on and with cooperatives of the last 20 years. Throughout this period, we have conducted extensive research on the management of cooperatives, many using the research-action methodology, i.e., directly involving teams of managers, employees and administrators. We also wrote many cooperative management cases while sitting on different (cooperative) boards. On the theoretical level, our work has allowed us to develop three key ideas on which is based our conception of the management of cooperatives. First, a cooperative equilibrium model that aligns values and cooperative principles leading to a proper management framework better adapted for cooperatives. A second key model, developed in the late 1990s, introduces what we have called the identity malaise observed in many cooperatives. This identity malaise needs to be understood for a solution to be found. The third key model in our management approach to cooperative identifies the strategic levers leading to what we have named a new cooperative paradigm (NPC). Started more than 20 years ago, this reflection leads us today to recognize a significant competitive advantage inherent in cooperative organizations. The basic idea of this NPC is focused on finding inherent benefits embedded in the cooperative values and principles when confronted with current and future market challenges, compared to other modes of organization. Today, our vision of these challenges is fuelled by the recognition of emerging strategies namely the congruence of organization-employee values, the shift from customer orientation to engagement orientation to enhance customer loyalty, the feeling of psychological ownership as a differentiator and the democratization and value cocreation process. This book also presents several cases studies of cooperatives in different sectors (agricultural, credit union, insurance, food retail). These cases were written over the last 20 years. They illustrate the different facets and components of the three ideas (models) at the heart of this book.

Co-operatives provide a different approach to organizing business through their ideals of member ownership and democratic practice. Every co-operative member has an equal vote regardless of his or her own personal capital investment. The contemporary significance of co-operatives was highlighted by the United Nations declaration of 2012 as the International Year of Co-operatives. This book provides an international perspective on the development of co-operatives since the mid-nineteenth century, exploring the economic, political, and social factors that explain their varying fortunes and transformation into different forms. By looking at what co-operatives are; how they have changed; the developments as well as the persecutions of the co-operative movement; and how it is an important force in promoting development and self-sufficiency in non-industrialized areas, this book provides valuable insight not only to academics, but also to practitioners and policy makers.

COOPNET: Human Resources Development for Cooperative Management and Networking.

Enterprises all over the world are experiencing a rapid development of networked computing for applications that are required for the daily survival of an organization. Client-server computing offers great potential for cost-effective networked computing. However, many organizations have now learned that the cost of maintenance and support of these networked distributed systems far exceeds the cost of buying them. Computer Supported Creative Work (CSCW) is the new evolving area that promotes the understanding of business processes and relevant communication technologies. Cooperative Management of Enterprise Networks uses CSCW as the medium for conveying ideas on the integration of business processes with network and systems management. This book will be useful for systems management professionals wishing to know about business process integration; business managers wishing to integrate their tasks with network/systems management; software system developers wishing to adopt participatory design practices; and students and researchers.

The purpose of this book is to introduce you in considerable detail to what we call the ‘co-operative enterprise’, and to explore with you the broader question of why co-operatives are important in today’s world. This is not a “how to” book, in the normal sense. It is however (we hope) an excellent foundation upon which to broaden your understanding and appreciation of co-operative forms of enterprise, not only in your country - but around the globe. You will learn why co-operation works and also see why sometimes it may not work, and you will learn about best practices and success factors within co-operatives. If you are an employee, a manager, or an elected official within a co-operative, you will also learn about why and how leadership and management effectiveness are different in co-operative forms of enterprise. The book is divided into five parts. The first part is called “Setting the Stage”, and contains two chapters. The first chapter introduces the reader to the nature of co-operation, while the second chapter looks at the evolution of co-operation all the way from social movements to business systems of enterprise. The second part is entitled “How Co-operatives Are Different” and begins by presenting what we call the “co-operative value proposition”. The third and fourth chapters provide details on the difference between the co-operative sector, the private sector, and the public sector. Chapter Five describes why and how leadership and management effectiveness are different in a co-operative. The third part is entitled “Co-operatives Today” and it includes three chapters. Chapter Six describes “National and International Co-operative Development”, and Chapter Seven looks at the role co-operatives have played and are playing in “Wealth Creation, Community Development ,and Poverty Reduction” around the globe. The last chapter in this section describes the “Pivotal Role for Government in Enabling Development.” Part Four is entitled “Building a Better World” and it includes three chapters. The first chapter, Chapter Nine is entitled “Some Strategies and Tactics for Success”. Chapter Ten is entitled “Towards a World Vision for Co-operatives”. Chapter Eleven is “The Challenges and Opportunities Ahead”, and it invites and challenges readers - and all co-operators - to seriously imagine what the future might be for co-operative forms of enterprise. No small undertaking to be sure! Just for fun we have included a final part called “Everything Else Co-operative” into which we cram additional co-operative website links and interesting content which we think you might like and which didn’t exactly seem to fit anywhere else. You decide! We also include some of our parting after thoughts (post scripts) in this section.