Factors Affecting Managerial Effectiveness of Cooperatives as Local Development Actors: the Case of Becho Weliso Farmers’ Cooperative Union

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Addis Ababa University


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



Cooperative Union