Question

Provide a graduate level response to the following:

Several advantages and shortcomings of the cooperative model are described by the authors. (Comparative Economics, Chapter 8)
They note that cooperatives are relatively rare in practice, and one possible reason is that the link between labor and management becomes stretched in large-scale enterprises. Workers may still collectively own the enterprise, but the management tasks are handled by a few specialists and are no longer shared by all.

Could cooperatives overcome this issue by rotating the management of the enterprise? For example, suppose all of the management positions in the cooperative are held for a two years, and then other workers are rotated into these positions. What are the pros and cons of this policy? Can you think of actual organizations that operate in this fashion?

Answer 1

Yes cooperatives can overcome this issue by rotating tha job profiles on the management.

Pros of this policy:

1. It will help workers to explore more job profiles within the organization.
2. Gap between workers and management will decrease.
3. Workers will learn new skills and will be able to enhance thoer capabilities.

Cons:

1. When management workers are demoted they experience demotivation and may not be able to work efficiently.
2. Change in postions frequently may cause confusion in the organization.
3. People working in management when demoted may create conflicts in the organization
4. Workers who are promoted to management level may not possess necessary skills and knowledge.

Due to more cons and less pros, no organization operates in this fashion.