Sample Management Essay: Companies vs. Cooperatives (Demo)

Each organization has its own style of managing its people depending on the principles and values it is pursuing. The set of principles also differs according to the type of organization and how each task has been divided among the members. It is not only with the style of principles that these organizations differ but with the values as well. They also claim that pursuing the values is the key to achieving their goals and success. However, the path towards success is not a smooth road for there will always be challenges along the way. One of the challenges is how their values affect the organization’s processes and the way they manage everyone who is part of it.

Differences in Objectives

Understanding the difference between a company and a cooperative will help us learn more about how each of the organization works its way to pursuing its set of values to make its management efficient and effective. It is with their differences that we may be able to identify their objectives and values to assess the chances of attaining it. To easily distinguish the basic differences between the two, we need to define each organization. A company is a voluntary and legal association formed and organized to carry on business may it be commercial or industrial (Business Dictionary, 2016). On the other hand, cooperative is owned, managed and operated by a group of people with common bond for their own benefit. Each member of the group shares equally to fund the capital and with how they control the operations through the principle of one-member, one-vote regardless if one has a significant share or not. The definitions alone can help us distinguish how each organization functions and sets their goals. In terms of objectives, cooperatives aim to provide service and also earn profit which will benefit its members while companies seek to earn profit and render service as well as part of their way of generating profit.

Differences in Management Style

Aside from their differences in terms of objectives and organization setup, they also have their own management style. In cooperatives, they practice democracy, and each member is entitled to have one vote, but there is no system of proxy while in a company, the number of votes of the member depends on the number of shares and proxies. Due to limited and local membership, there is a slim separation between ownership and management in a cooperative (Singh, 2012). The management style also goes to show how each organization differs in terms of liability. Companies have limited liability depending on the amount of share one member has while cooperatives have unlimited liability.

It is not entirely with the organization’s setup, liability, and definition that we can assess if they can pursue their set of values but with the kind of values they would try to imbibe in each one of the members. These values should be clear from the start to make sure that their decisions, actions, and perspective should be aligned. It is with the values that these organizations are being driven to achieve their goals and perform better. Companies are built on the value of ethical behavior, and these serve as their guiding principles to fulfill their goals in business. Each business company has its core values that will help them in their decision-making processes to evaluate their needs and how to respond to the demands of their customers. It helps them bring out their identity to the public and act more responsibly in dealing with challenges. A company who is vocal and firm with their values can have a competitive advantage compared to the others. This is one indicator that the company is established and confident with how they are guided by their goals according to their values. These values shape the company’s image to the public and is a reflection of their vision towards success.

Differences in Values

The common values a company has are accountability, commitment, diversity, empowerment, innovation, integrity, ownership, community, balance, and safety. These values fuel up the company’s drive towards success. The company’s work attitude should be within the context of their values to continuously pursue excellence and to have people who are agents of these values.

It is not only the companies who have their values but the cooperatives as well. There is such a unique trait for cooperatives that separate them from the other types of organizations. Its people have been united under common bond and merely motivated to render service which will eventually gain profit. Cooperatives are built under solidarity and mutual goals with interests larger than what they have for themselves. The people in a cooperative live in solidarity and at the same time democracy. For a cooperative to achieve solidarity, there is a need that each one of the members should connect with one another. It is a simple value that they live for but also a challenge. Deep awareness of having a connection to each one of the member may lead to a more sensitive and shared responsibility for everything (Johnson, 2012). It can also serve as a pressure for one to look after the other. Each member has to make sure that everyone is doing their part and if one fails to fulfill it, another member has the accountability to impart what is expected for that person to do. With solidarity and democracy practiced in the cooperative, everyone should be aware that they have roles to play and tasks to do. Other values that they have are self-help, self-responsibility, equality and equity.

Problems for Cooperative

These aforementioned values are ideal and promising which they believe will help them pursue their goals for their organization. These are also the same values which might serve as their obstacles in the long run. It is not easy to manage members who are driven by democracy, and there is no dominant voice who will decide for the group. There are possible dilemmas that might be faced by the organization and to unify the group’s response can be a challenging task for everyone is free to voice out their opinion. Furthermore, it is with their values that they might ironically create division among the members.

It is given that the members share their goals and unified efforts but it is sometimes hard to control the members with the kind of management that the organization practice. This could be a problem for the cooperative for the connection to be strengthened among the members. They should always remind the members to practice democracy, yet they live in solidarity. In a democracy, members should be united in making decisions and sharing their thoughts. This should not be the cause for them to isolate themselves from the organization and bring their sentiments to another venue. They should always go back to where they have started and that is their common goal to render service that will benefit all of them. If one member feels like they are no longer aligned with their goals, it is the time that they should re-assess their objectives to make things right again. They also need to take into consideration that they have an immediate community to look after and their actions will affect the community.

The pursuit of values can be a challenge for the organization but the leadership should remain strong, and members should always be there to support the group. It is a necessary that individual members can consciously connect with one another and with the people outside the organization. With a positive feedback, it will help them gain the confidence to continue with that what they are doing and to improve the services they are rendering to the community. With this, they will be able to achieve their goal to serve the common good of all. A cooperative must not only serve an organization who provides services but also a role model to the community as well. They should continue to integrate their self-interests with the interests of their fellow members be and be open to constructive criticism to improve one’s self and continuously improving the organization as well. It is a challenge to pursue the values set for the organization but is going to be worth it.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Business Dictionary (2016) Definition of Company. Business Dictionary. Retrieved from <http://www.businessdictionary.com/definition/company.html>

Evans, M (2016) Value through Ethical Behavior. Retrieved from <http://www.exinfm.com/board/value_through_ethical_behavior.htm>

Johnson, M. (2012) The Cooperative Principles, the Common Good, and Solidarity. Grassroots Economic Organizing. Retrieved from <http://www.geo.coop/story/cooperative-principles-common-good-and-solidarity>

Singh, S. (2012) How will you distinguish between a Cooperative Society and a Joint Stock Company? Preserve Articles. Retrieved from <http://www.preservearticles.com/2012022923837/how-will-you-distinguish-between-a-cooperative-society-and-a-joint-stock-company.html>

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