Chapter 7 Participation and Control
Both owners of organizations and workers in organizations have tried to find ways for workers to participate in the process of making decisions and to have some control over their working lives. One way is for owners to redesign tasks to make them more satisfying for workers, usually by forming work groups or teams. Another way is for the workers to become the owners of the organization. This form of participation is called a co-operative.
7.1 Co-operatives
(1) Co-operatives are organizations in which people have joined together to meet common needs and achieve common goals. They are owned by their members, who share the profits and take decisions democratically. There are many different types of co-operatives, depending on the shared needs and goals of the members. For example, consumer co-operatives are owned by customers who join together to make sure that the goods and services they want to buy are good quality and a fair price. Worker co-operatives are owned by the workers in an industry.
(2) The modern concept of co-operatives began in the north of England in 1844, when a group of workers in the town of Rochdale opened a small shop. They became known as the Rochdale Pioneers. At this time, working practices were changing as a result of the Industrial Revolution. Goods were made cheaply in factories, but workers had to move from the countryside to the cities where the factories were located. Working conditions were poor, and workers received low wages and lived in crowded communities. These new communities grew rapidly, but the number of shops did not expand to meet their needs. The local shopkeepers were able to charge high prices because people had no choice about where to buy their food. The workers in Rochdale could not afford the high prices for food in these local shops. They decided that, by working together, they could find basic food items at a lower price. Initially, the shop only sold flour, oatmeal, sugar and butter.
(3) The first co-operative was based on values of self-help, democracy, honesty and taking responsibility for other people. Their way of doing business was unusual at that time, because every customer of the shop became a member of the co-operative and so had a true stake in the business. Anyone could become a member if they bought goods at the shop. Purchases could only be made in cash and the profits were shared among the members, depending on how much money they spent in the shop.
(4) The reputation of the co-op shop was quickly established. It attracted large numbers of customers, who knew that they could buy quality products at fair prices. By 1880, the co-operative movement had spread throughout the UK, and by the end of the 19th
Key words century, membership had reached 1.7 million people
in over 1,000 co-operative societies. From that small beginning in Rochdale, the co-operative expanded to become a worldwide movement.
(5) The principles of the Rochdale Pioneers in 1844 about the right way to do business are the basis for all co-operatives today. However, these same principles make it difficult for co-operatives to compete with modern supermarkets.
Dyson, J. R. (2008) Business organizations. London: Roadhouse Publishers.
to redesign satisfying common needs/goals share the profits take decisions democratically depending on consumer a fair price pioneers working practices factories the countryside working conditions low wages grew rapidly the local shopkeepers to charge high prices afford basic food items at a lower price initially values self-help democracy taking responsibility doing business a member had a stake in purchases in cash the profits money they spent the reputation established attracted customers spread throughout had reached worldwide the principles the basis to compete
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