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Cooperative Management

Course abstract

The course provides students with better understanding on the nature of cooperatives, their historical roots, the role of different types of cooperatives in economy, and gives an overview on different theoretical perspectives on cooperatives, collective action and cooperative governance. The course draws on institutional economics, organisational behaviour, industrial organisation, transaction costs theory, and political economy, and specific focus is on agricultural cooperatives and producer organisations in agri-food sector.

Learning outcomes and their assessment

Knowledge – students will be able to:
• Demonstrate knowledge of contemporary theory and techniques of economics and business administration –test, exam.
• Utilize scientific research in business administration - individual work, group work.

Skills – students will be able to:
• Evaluate competitive situation in their field of operation to design management and marketing strategies for improvement of the competitive position of their organisation in global marketplace - individual work, group work.
• Organize and participate in joint decision making process -group work.
• Demonstrate understanding of the ethical consequences of their business decisions - individual work, group work.
Competences
• Demonstrate understanding of global issues in context of agricultural business, concerning social, economic, political and environmental problems –test, exam.

Course Content(Calendar)

1. Cooperation and collective action.
2. Cooperative values and principles.
3. History of cooperative movement.
4. Different types of cooperatives.
5. Institutional, economic, policy and legal contexts for cooperatives.
6. Different theoretical perspectives on cooperatives: institutional economics, transaction costs, agency theory.
7. Institutional economics.
8. Contract theory.
9. Network theory.
10. Agency theory.
11. Governance of organisations and cooperative governance.
12. Inherent problems of cooperatives.
13. Vertical markets.
14. Market failures.
15. Agricultural cooperatives and industrial organisation of agri-food system.

Requirements for awarding credit points

Individual task
Written test
Group task
Exam

Description of the organization and tasks of students’ independent work

Individual task on literature
Group task of case study of cooperatives

Criteria for Evaluating Learning Outcomes

Individual task on literature – 0.1
Written test -0.2
Group task of case study of cooperatives -0.2
Exam – 0.5

Compulsory reading

1. Birchall, J. (2010). People-centred Businesses: Co-operatives, Mutuals and the Idea of Membership. London: Palgrave Macmillan.
2. Groenewegen,J:, Spithoven, A., Van den Berg, A. (2010). “Institutional Economics: An Introduction, Palgrave Macmillan.
3. Zeuli, K., Cropp, R. (2004) Cooperatives: principles and practices in the 21st century. Cooperative Extension Publishing, University of Wisconsin-Madison. http://learningstore.uwex.edu/Assets/pdfs/A1457.pdf
4. Harris, A., Stefanson, B., Fulton, M. (1996). New Generation Cooperatives and Cooperative Theory. Journal of Co-operatives 11: 15-28.
5. Ostrom, E. (2000). Collective action and the evolution of social norms. Journal of Economic Perspectives, 14(3): 137–158.
6. Fulton, M.E., Ketilson, L.H. (1992). The role of cooperatives in communities: Examples from Saskatchewan. Journal of Agricultural Cooperation 7: 15-42.
7. Hansmann, H. (2013). All Firms Are Cooperatives and So Are Governments. Journal Of Entrepreneurial and Organizational Diversity 2 (2):1–10.
8. Simon, H. (1991). Organizations and Markets. The Journal of Economic Perspectives, 5 (2):25- 44.

Further reading

1. Carlton, D.W., Perloff, J.M. (2005). Modern Industrial Organization. 4th ed. Pearson Addison Wesley.
2. Cornforth, C. J. 2004. The governance of co- operatives and mutual associations: a paradox perspective.”
3. Annals of Public and Co-operative Economics 75:11-‐32.

Periodicals and other sources

1. International Co-operative Alliance (ICA). http://ica.coop/
2. University of Wisconsin Center for Cooperatives. http://www.uwcc.wisc.edu/
3. United States Department of Agriculture (USDA). Rural Development. Publications for Cooperatives. https://www.rd.usda.gov/publications/publications-cooperatives
4. Journal of Cooperatives