Factors Affecting Managerial Effectiveness Of Cooperatives As Local Development Actors The Case Of Becho Weliso Farmers Cooperative Union

Recent studies have underlined the importance of effective management for effectivernorganizational performance. Cooperatives being unique forms of enterprises are working to meetrntwo conflicting goals, viz. efficiency and associational (democracy) goals. The focus of thisrnpaper is therefore to descriptively investigate factors affecting managerial effectiveness of therncoop union understudy with the aim of suggesting possible solutions for the improvement ofrnproblems identified and also draw lessons as best practice for others.rnThe case study was conducted based on the 29 samples taken from within the case population ofrnthe cooperative union, i.e. GA members, BOD members, and employees of the coop unionsrnbased on two stage sampling procedure. The sample also included 5 individuals from employeesrnof organizing and regulating organ (Oromia Cooperative Promotion Agency/OCPA).rnThe findings from the analysis made on data obtained from sampled sources have shown thatrnsignificant gaps/problems the coop union has been facing in its journey towards meeting statedrnmission. These come under two major categories, viz. the contribution that the coop union makesrnto the local development of the wereda and the various problems that constrain its capacity inrnplaying more significant role in governance (local development endeavor).rnThe findings of this study revealed that the coop union has been making significant contributionrnin the local development endeavor in both economic and social aspects. However, there havernalso been various problems limiting the coop union form fully playing its role in the localrndevelopment of the wereda. These include leadership related gaps and other problems emanatingrnthereof (such as lack of competence and commitment leaders, incomprehensiveness of thernbyelaw of the coop union, lack of established communication system, lack of well-developedrnsystem/standards of accountability, lack of established organizational culture and shared view onrnthe coop values, principles and laws, missing link in the organizational structure of the cooprnunion, direction of growth of the coop union’s business); managers related gaps; weak membersrnparticipation; government role related gaps (weak enforcement of rules and regulations, lack ofrnknowledge center specifically designed for cooperatives, outdated provisions of cooperativernlaws) and the negative effect of competition

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