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Aligning Values and Practice: a Comparative Analysis of Management Practices In ALIGNING VALUES AND PRACTICE 1 Aligning Values and Practice: A Comparative Analysis of Management Practices in Worker Managed Co-ops Using the Co-operative Index Tool By John Alexander McNamara A Thesis Submitted to Saint Mary’s University, Halifax, Nova Scotia in Partial Fulfillment of the Requirements for the Degree of Ph.D. Business Administration November, 2018, Halifax, Nova Scotia Copyright 2018 John A. McNamara Approved: Larry Haiven Supervisor Approved: Rory Ridley-Duff Examiner Approved: Stephen Dutcher Reader Approved: Sonja Novkovic Reader Approved: Wendy Carroll Reader November 29, 2018 ALIGNING VALUES AND PRACTICE 2 Aligning Values and Practice: A Comparative Analysis of Management Practices in Worker Managed Co-ops Using the Co-operative Index Tool By John Alexander McNamara Abstract November 29, 2018 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 co- operative 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. Keywords: co-op index, co-op management, worker-ownership ALIGNING VALUES AND PRACTICE 3 Table of Contents Abstract ...........................................................................................................................................................2 Chapter 1: The Co-operative Commons .....................................................................................................7 The Co-operative Model ..................................................................................... 9 Governance versus Management ...................................................................... 24 Research Question ............................................................................................ 31 Gaps in the Literature ........................................................................................ 34 Management Case Studies ................................................................................ 36 Chapter 2: Managing the Co-operative .................................................................................................... 46 Labour Process Theory ..................................................................................... 53 Principal-Agent Dilemma ................................................................................. 57 Isomorphism ..................................................................................................... 60 Conclusion ........................................................................................................ 61 Chapter 3: Methodology -- Comparative Case Studies .......................................................................... 63 Philosophical Assumptions ............................................................................... 64 Comparative Case Study ................................................................................... 66 Co-operative Index Tool as Source Document ................................................. 67 Structure of the Co-op Index Tool .................................................................... 71 Origins of the Co-op Index ............................................................................... 76 Strategy ............................................................................................................. 79 Sampling Method .............................................................................................. 83 ALIGNING VALUES AND PRACTICE 4 Strengths ........................................................................................................... 83 Limitations ........................................................................................................ 84 Ethical Considerations ...................................................................................... 85 Conclusion ........................................................................................................ 86 Chapter 4: Case Study – Coffee Co-operative and Hierarchy ............................................................... 89 About the Co-operative ..................................................................................... 93 Organizational Structure ................................................................................... 97 The Co-op Index Report ................................................................................. 103 Dynamics of Voice Expression and Exit Threshold ....................................... 107 Loyalty Effects, Attitudes, and Outcomes ...................................................... 117 Discussion ....................................................................................................... 118 Conclusion ...................................................................................................... 123 Chapter 5 – Collective Management: Western Food Co-operative .................................................... 125 About the Co-operative ................................................................................... 126 Eastern Food Co-operative ............................................................................. 134 Co-op Index Report ......................................................................................... 136 Dynamics of Voice Expression and Exit Threshold ....................................... 143 Loyalty Effects, Attitudes, and Outcomes ...................................................... 160 Discussion ....................................................................................................... 161 Conclusion ...................................................................................................... 165 ALIGNING VALUES AND PRACTICE 5 Chapter 6 – Case Study: Bakery Co-op and Sociocratic Management .............................................. 168 About the Co-operative ................................................................................... 169 Co-op Index Report ......................................................................................... 174 Dynamics of Voice and Thresholds of Exit .................................................... 178 Loyalty Effects, Attitudes, and Outcomes ...................................................... 200 Discussion ....................................................................................................... 203 Conclusion ...................................................................................................... 206 Chapter 7 – Comparative Analysis of Three Cases .............................................................................. 208 Managing the Commons ................................................................................. 213 Exit and Voice ................................................................................................. 217 Theoretical Considerations ............................................................................. 224 Co-op Index Tool Lessons .............................................................................. 237 Limitations of the Study .................................................................................. 245 Areas for Further ResearcH ............................................................................. 247 Comparative Summary ................................................................................... 248 Conclusion ...................................................................................................... 250 Chapter 8: Conclusion .............................................................................................................................. 254 Research Questions ......................................................................................... 255 References .................................................................................................................................................. 261 Appendix A: Statement on the Co-operative Identity .......................................................................... 290 Deleted: 289 Definition: ....................................................................................................... 290 Deleted: 289 ALIGNING VALUES AND PRACTICE 6 Values: ...........................................................................................................
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