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An Analysis Of The Members' Desire And Their Action In Cooperative

Posted on:2010-05-19Degree:DoctorType:Dissertation
Country:ChinaCandidate:Y X LiuFull Text:PDF
GTID:1119360302474763Subject:Agricultural Economics and Management
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New democratic cooperatives, with its development for more than 20 years, play an important role in the construction of rural market, the increase in the income and the development of the agricultural industry. However, cooperatives has not achieved much in its development due to the fact that farmers are less educated and cannot perform efficient management, and the fact that farmers does not show much confidence in the cooperatives and its leaders and would not like to invest in the cooperatives. Thus, a lack of capital and human resource is caused, which is urgent and needs to be dealt with from the angle of "human-centered". Farmers' sentiment needs to be taken into consideration so as to improve their professional knowledge and team spirit.Most of the researches available focus on analysis of the system and economy of the cooperatives. There are theoretical discussion and demonstrative description of the characteristics and the development of cooperatives, as well as the property right system, the management structure, the system condition, the government's policies and model of cooperatives, all of which have urged the development of cooperatives, but there is one important aspect, research on the subject of cooperatives-farmers- have been neglected. A cooperative can not live without farmers' participation. This paper, with the perspective of farmer-centered, by introducing the sociology and psychology, makes an analysis of the attitudes of farmers with the help of TPB(Theory of Planned Behavior). All the 400 questionnaires are from surveys in Finland, and Baoji, Yangling, Yanliang, Lingtong, China. After a qualitative and quantitative analysis of the "human-factor", some factors which show effects on the participation of farmers in the management and the desire of farmers to invest in cooperatives are found. A detailed analysis of the factors and its influences will lay foundation for the improvement of the activity of farmers and the cooperative system.The premise for research on the "human" factor is to hypothesize humanity. This paper, after a review of the humanity hypothesis, puts forward the humanity forecast model, seven hypothesis of humanity:⑴cooperation on the basis of self-interest;⑵opportunism;⑶s eeking for equity;⑷hate of risks;⑸i ndependence;⑹i nnovation;⑺voluntary team spirit and sense of belonging。These hypotheses are basic to study the desire and action of cooperative members, the "human" factors. The desire of members consists of their desire to join in the cooperatives, to be involved in management, to invest, to avoid the commitment, to quit. The action covers to vote, to take part in the meeting, to communicate with the managers, and to quit. With the members being the basis of cooperatives, their desire and action dominate the development of cooperatives. There are specific conditions for the transfer from the desire to action, and managers can make full use of these conditions so as to lead the action to achieve a harmony for both of the aims. This paper, besides the key analyzing frame, uses, also, the theory of property right, the theory of Agency , theory of Transaction Costs, and theory collective behavior.The desire cannot lead directly to the action although they are interacted. The transference is confined by the environment. The subject of the questionnaire is members of the cooperatives, and analysis of their desire may offer some references. The factors that influence the desire to join in cooperatives are the education, the support from the government, the gap between the rich and the poor, family type and the capital and scale of the cooperatives. The education and the support bear, first a proportional and then and indirectly proportional relationship. The support from the government lead to first an increase in the marginal utility by degrees, and than an decrease by degrees. That means government should focus more on the establishment of the cooperatives and gives the micro-economical support. The gap between the rich and the poor is indirectly correlated to the desire, but the family type is correlated to the desire.Lack of capital is another problem, which is because it is relatively difficult for agriculture industry to attract investment. Support and subsidies from the government cannot satisfy the needs, so investment from the farmers is a must, and the study of the desire to invest is essential. The more confidence of farmers in the society, the more caring about the election of the managers, and the more desire to invest. Also, the desire to invest in the cooperatives is indirectly affected by the subsidies from the government, which shows that an excessive support from the government may lead to the Crowding Out Effect. Another factors influencing the desire are the way to obtain loan, the integrity of the laws and the training given to farmers.The unbalance in investment is another problem. According to the survey, farmers with an income less than$13,000 would not like to invest, but those with more than $15,000 would like to pay as much as $6,273。As a result, with the democracy and inequality as principle, this paper holds that, farmers with $13,000 need to offer an investment of $1,500-2,000. As for those bearing a higher need to invest, they can choose the stock without vote right or bond, which can guarantee both the equity and the investor's yield.This paper also makes a detailed analysis of the desire of members to join in cooperatives, to avoid commitment and to quit. The more confidence from the members, the more desire to join and the less possibility to quit. The observations show that the reasons for quitting is that they are too old to farm, or their needs cannot be satisfied in the cooperatives.Farmers' desire to support reform, to sell stocks, and to sell inappropriately is harmful to the development of the cooperatives. A detailed study of these factors may help to prevent or change the desire, or control the conditions for actions to happen. It follows from the study that differences need to be reduced in order to get a harmonious environment, healthy law system and cooperative system are needed, the team spirit and sense of belonging are essential, and confidence in the managers should be encouraged.The subjects of the survey are members of the cooperatives and they affect the cooperatives by joining in the management, which is the key element in the study of action. The actions in management cover the action to vote, the action to take part in meetings, and to communicate with managers. The paper gives a study of the observations from both Finland and China with the purpose of using as reference of the experiences from the Finnish Valio cooperatives and of finding the influencing factors in China.The experience learned from the Finnish cooperatives are as follows. Firstly, trusts in leaders promote their enthusiasm in participation. So in China, leaders should come from those with high prestige, party members or people of ability. Secondly, leaders should take into considerations both the economical interest and farmers desire. Nowadays in China, leaders or sponsors focus more on economical interest, and less on the "human factors". It is of vital importance to lead farmers to management, strengthen their confidence in leaders, offer them appropriate training, and to increase farmers' professional knowledge in order to increase their loyalty, communication and confidence in the cooperatives. Thirdly, a higher specialization is needed. In China, the cultivated land per capita is short, so an increase in the specialization can save cost and motivate farmers to join in cooperatives. Finally, cooperatives treat their members equally and intend to increase the income of farmers. In China exists the state of disunity. A fair equity, a satisfying confidence and unity are essential to its cooperatives.It follows from the data above that, firstly, farmers join in cooperatives with the purpose of increasing their income, which proves the first humanity hypothesis, the cooperation on the basis of self-interest. Of all the factors, human factor should be the first. Secondly, since the sense of belonging and the confidence exert influences on the enthusiasm of farmers, and the psychological factors play the key role with the external material condition being not so obvious, it is essential to give some incentives to farmers during the beginning of cooperatives. Then a strengthening of training farmers is needed in order to make them realize that there should be harmony between self- interest and interest of cooperatives, which is the basis of existence of cooperatives. Thirdly, a high heterogeneity may motivate the participation, but a great difference may lead to an increase in the cost and in the possibility of quitting. It is needed to consider the differences in recruiting members. Fourthly, members are the bedrock of cooperatives. The Chinese traditional organizations go without corresponding punishing policies, so the freedom to join and quit make the breach of faith go without punishment. Some cooperatives absorb members with no fees in the purpose of attracting more members, which indulges the breach of faith. Members obtain in their breach of faith nothing but the denouncement from other members. The more breach of faith, the less stability for the cooperatives. As a result it is urgent to develop a restricting system to manage member from both the aspects of system and sentiment. Thirdly, a high heterogeneity may motivate the participation, but a great difference may lead to an increase in the cost and in the possibility of quitting. It is needed to consider the differences in recruiting members. Fourthly, members are the bedrock of cooperatives. The Chinese traditional organizations go without corresponding punishing policies, so the freedom to join and quit make the breach of faith go without punishment. Some cooperatives absorb members with no fees in the purpose of attracting more members, which indulges the breach of faith. Members obtain in their breach of faith nothing but the denouncement from other members. The more breach of faith, the less stability for the cooperatives. As a result it is urgent to develop a restricting system to manage member from both the aspects of system and sentiment.From the analysis above arises a fact that the credit plays the key role in affecting members' desire and action. Credit, as an important communicating attitude, is of great significance to the success of cooperatives. It consists of the trust among farmers, trust among members and the confidence between members and the organizations. Confidence as the basis of cooperation can speed the development of cooperatives. This paper makes a detailed analysis of the beginning and development of "trust-cooperation" system, followed by some suggestions and strategies of promoting the confidence from the perspectives of "relationship" and "system". The measures are as follows. The punishing system needs to be perfected, the contract system needs to be insisted, the property right system dominates the confidence in system, member system and cooperation in small scale should be restricted, the confidence in the informal system should be reshaped, agricultural individual credit system should be set up, and the system of cooperatives itself needs to be improved. The desire and action of members show great effect on the development of cooperatives, typically on the human resource and capital, the necessary condition for cooperative development. Whether the managers can be guaranteed the realization of the aims or not depends on whether the system can meet the need of their members. That asks leaders to develop a positive understanding of the essential needs and the desire and action of their members. The desire is the premise for the action and other outside conditions affect realization of actions, so the most important job for leaders is to know how to lead the desire to action.According to the survey, some suggestions are put forward to help leaders to manage:⑴establishing the instant communicating system;⑵meeting the technical need of members;⑶p utting the increase in the income first;⑷guaranteeing the equity and openness of the cooperatives;⑸reducing the differences between members;⑹increasing the training about the working in teams;⑺encouraging members to take part in the management. A healthy system can lead the members towards the positive action, and increase their confidence and loyalty in the organizations. In order to motivate members to develop positive desire and action, and restrict their negative desire and action, leaders should try to make some improvements in the system, which includes the improvement in the Property Right System, investment system, membership system, punishment system, decision-making system,membership system, punishment system, mechanism of communication, distribution system and training system.
Keywords/Search Tags:cooperatives, members' desire, members' action, influence factors, system amelioration
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