Aligning values and practice : a comparative analysis of management practices in worker managed co-ops using the co-operative index tool

Abstract

Co-operative organizations operate as an economic commons and focus on meeting the needs of their members. Co-operatives operate through an identity of values and principles that center the actions of the organization on the well-being of the members, not the return on investment. The co-operative difference translates into a cooperative advantage in the marketplace through the democratic control of the business by the member-owners that results in a high level of trust in the organization. Management of co-operatives follow three basic formats: a traditional hierarchy similar to most corporate modes of business, a collective model in which all members participate in the key decisions of the organization, and a sociocracy model in which interlinked autonomous teams manage the co-operative by consent. This dissertation considers how the method of managing either facilitates or hinders the expression of the co-operative identity, an internationally agreed-upon definition of the co-operative organizations that includes a set of values and principles. By using the Co-op Index Tool to measure the adherence to co-op values and principles in the organizational systems, climate and outcomes of worker-owned and worker-controlled co-operatives, it is possible to compare different management methods used by co-operatives. The comparative analysis indicates that sociocracy as a method of decision-making best supports adherence to the co-operative identity.