Factors Affecting Managerial Effectiveness of Cooperatives as Local Development Actors: the Case of Becho Weliso Farmers’ Cooperative Union
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Date
2015-06
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Addis Ababa University
Abstract
Recent studies have underlined the importance of effective management for effective
organizational performance. Cooperatives being unique forms of enterprises are working to meet
two conflicting goals, viz. efficiency and associational (democracy) goals. The focus of this
paper is therefore to descriptively investigate factors affecting managerial effectiveness of the
coop union understudy with the aim of suggesting possible solutions for the improvement of
problems identified and also draw lessons as best practice for others.
The case study was conducted based on the 29 samples taken from within the case population of
the cooperative union, i.e. GA members, BOD members, and employees of the coop unions
based on two stage sampling procedure. The sample also included 5 individuals from employees
of organizing and regulating organ (Oromia Cooperative Promotion Agency/OCPA).
The findings from the analysis made on data obtained from sampled sources have shown that
significant gaps/problems the coop union has been facing in its journey towards meeting stated
mission. These come under two major categories, viz. the contribution that the coop union makes
to the local development of the wereda and the various problems that constrain its capacity in
playing more significant role in governance (local development endeavor).
The findings of this study revealed that the coop union has been making significant contribution
in the local development endeavor in both economic and social aspects. However, there have
also been various problems limiting the coop union form fully playing its role in the local
development of the wereda. These include leadership related gaps and other problems emanating
thereof (such as lack of competence and commitment leaders, incomprehensiveness of the
byelaw of the coop union, lack of established communication system, lack of well-developed
system/standards of accountability, lack of established organizational culture and shared view on
the coop values, principles and laws, missing link in the organizational structure of the coop
union, direction of growth of the coop union’s business); managers related gaps; weak members
participation; government role related gaps (weak enforcement of rules and regulations, lack of
knowledge center specifically designed for cooperatives, outdated provisions of cooperative
laws) and the negative effect of competition
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Keywords
Cooperative Union