What do young university students think about working in co-operatives?
Introduction
Hoping to stimulate student interest within the professional cycle of the Faculty of Economic Science at the University of Buenos Aires, we undertook a study to determine how students perceived working in a co-operative venture . In conducting our research, we linked theoretical perspectives concerning the structure and the functioning of different types of organisations to the students’ opinion about working in co-operatives. We wanted:
- to understand how they viewed work in those ventures; and
- to investigate what kind of organisation they would wish to join when they completed their degrees.
In essence, this study is an analysis of opinions: that is, of the attitudes or judgments people form about something in question, in this case the opinions of young people on working in co-operatives. We define “opinions” as a reflection of “what people think” or “what they believe”; they represent a person’s mental disposition when they are asked to respond to various situations and questions. They can be based on values, on relatively stable beliefs, on convictions, or occasional circumstances through which people pick up or represent elements of social reality; they emerge from owned or shared observations and experiences.
The study’s data is the result of a survey done among 497 students enrolled in the course Sociology of Organisations in the year 2004.
Methodology
We used a questionnaire containing three sections: the first was made up of a grid in which we gathered information on the students’ basic socio-demographic characteristics, focusing on their life as students and on their working experience. The second section of the questionnaire examined the way they visualized work in co-operative ventures. This included the recruitment of personnel and their incorporation, their training and their compensation. In the third section, we investigated students’ preferences for future professional placements and the reasons why they made their choices.
The issues related to working in co-operatives were identified in keeping with the approach common in human resources texts, and it was gathered through interviews with key informants. This information was used to design the closed questions of the final survey.
The survey tool was a 24-question questionnaire (21 closed and 3 open). Following a pre-test, we formulated specific questions on co-operative ventures. We used a Likert type scale (5 showing maximum agreement and 1 minimum) to measure responses.
The open questions were used to analyse the choices students would make when they selected the type of organisation in which they would like to be placed after they completed their studies. We were particularly interested in the reasons they chose for supporting their decision.
Analysis of the results
To conduct the analysis of the descriptive questions of the sampled population, we proceeded with the usual technique of variable construction, starting from the encoding of several questions. In the case of the answers to the open questions, related to the choice of organisation and their motives, we systematised the analysis using two procedures:
- the construction of categories to codify and extract frequency of answers; and
- the organisation of the ideas evident within the context of the answers.
The population
The population under study was made up of 497 students enrolled in Business Administration (468) and Information Systems (27). For both degrees, a course in Sociology of Organisations is mandatory. For the remaining students, those taking degrees in Public Accounting, Court Clerking and Economics (15), this sociology course in an elective.
The ratio of males to females was 96.4 (number of males per 100 females). The distribution according to socio-demographic characteristics was as follows:
Interviewed students
|
Socio-demographic characteristics |
Work |
Do not work |
Total |
||
|
Gender Age group |
Fem. |
Masc. |
Fem. |
Masc. |
|
|
20 - 25 |
123 |
138 |
103 |
55 |
419 |
|
26 - 29 |
17 |
34 |
4 |
1 |
56 |
|
30 and over |
4 |
14 |
2 |
2 |
22 |
|
|
144 |
186 |
109 |
58 |
497 |
Of those polled, 60.5 per cent were admitted into the faculty between the years 2001 and 2002 and 67.3 per cent had successfully passed between 11 and 15 subjects in their degree programme.
Within the sample, 66.4 per cent of the student’s presently work. The majority (226) do so in business organisations, among which the INC. and the LTD. are dominant. The remainder of the participants work in sole proprietorship business (50), self-employed (20), or in public administration (28). Only one of the students works in a co-operative venture.
The tasks they performed in those working areas were mostly administrative (41.6 per cent). They are followed in importance by marketing activities (16.9 per cent) and duties linked to computer science and production.
How do they view working in a co-operative?
The topics the students were asked about were linked to working in co-operatives; procedures used in recruiting and incorporating personnel; training activities, and the nature of workers’ compensation.
The formulated questions concerning the first topic refer to the nature of the job and the range of tasks. Here we investigated the worker’s degree of autonomy relative to the execution of the job (task sequence, methods, tools, etc.); to the time of work (rhythm, breaks, schedules, etc.); and to the work organisation itself (objectives, norms, etc.). The goal was to differentiate strategic extrinsic attributes (salary, schedules, social benefits, working conditions) from intrinsic or expressive attributes that make work itself a source of satisfaction (use of abilities, responsibility, recognition, etc.). This way, students were asked to evaluate the work according to the resources it implicitly uses and what it contributes to the individual. They also had to consider the co-operative organisation’s functional structure from the point of view of the roles played by its member.
The students’ responses supported the view that, when it comes to co-operatives, the intrinsic factors are perceived as very positive and help to motivate workers. The students tended to highlight the greater level of autonomy presented in the co-operatives (66.6 per cent) and emphasized the importance of teamwork and network tasks involved (73.4 per cent). An important agreement was found between the incentives the worker received for taking decisions (59.6 per cent) and the rotation of tasks that are considered typical for these organisations (52.2 per cent).
The diversity of tasks included in the work in a co-operative was perceived as a unique characteristic of these organisations by 69 per cent of the students. They also underlined the importance of being able to help incorporate changes into the work they performed. This variable usually translated into intrinsic gratification for the job itself, inasmuch as it allowed options or a degree of freedom relative to methods and work schedules, as well as to quality criteria on the worker’s side. Just as the lack of variety that makes a job easily programmable can alienate the employee from the work process, it is widely documented that variety increases worker satisfaction.
The second part of the survey considered the processes of personnel incorporation in the co-operatives. In this area we need to acknowledge the lack of information about numerous issues related to the resources and techniques used in the selection and recruitment of workers. Nevertheless, students did express opinions. Their responses indicate that the workers’ capacity in collaborating and working in a team within co-operatives is taken into account (75 per cent) and their capacity for contributing to the strategic objectives of the venture is valued (69.2 per cent). The tendency to value the employee’s potential for learning was recognized by 51.5 per cent of those polled.
The third part referred to training activities and contained questions related to the objectives and modalities that these activities present. Similar to the attributes that were highlighted above, the strongest level of agreement occurred around the objectives of such activities as promoting teamwork and interpersonal relationships (71.1 per cent), advancing job positions (53.5 per cent) and expanding on work experiences (58.7 per cent). The answers indicate some lack of understanding concerning the degree of continuity these activities present, as well as the time and money investment that they require and their relationship to the individual’s career path.
In examining workers’ compensations in the co-operatives, we took into account that the achievement of the workers’ co-operation in the collective execution of some common objectives helps define and preserve the permanent equilibrium between each and everyone’s contributions and also affects the agreed upon compensation rewards. These rewards differ in nature: they can be tied to the actual nature of the exercised activities (challenge, autonomy, responsibility, risk, etc.); to the possibilities of the social relationships they share (with colleagues, clients, providers, etc.); to the financial or symbolic status they confer (work security, prestige, prerogatives, and various advantages); and to the objectives that they help meet.
In principle, such rewards are important as workers compare them with the rewards offered by other kinds of venture, including salaries. Put another way, management has many ways in which to encourage employees to enthusiastically support an organisation’s objectives. In that regard, financial incentives play an important role, though not enough in themselves to ensure a worker’s full engagement in the accomplishment of a common task.
Thus, it can be argued, the worker’s perceived intangible compensation not only plays an instrumental role but constitutes a determining factor in the organisation’s existence. What is more, it shapes the strategic alignment of the objectives and activities of all groups in the organisation towards a common purpose, its internal equity, external competitiveness, and the quality of people’s performance. The perceived intangible compensation is related to the person’s type of work, the results that are expected, and, ultimately it affects the remuneration level as well. This exogenous variable is perhaps the best-known predictor of satisfaction because it translates into the daily rewards that indirectly communicate the degree to which the organisation values its employees.
Recognising the importance and the reach of the above-mentioned basic functions in co-operative enterprises, we formulated the questionnaire items relating to the employees’ compensation in these organisations. Close to one half of those polled considered that compensation is established according to a formal system, although there was less agreement than expected considering that they all know the system by which it is based. According to most of the respondents, their desired compensation was based more on personal than on economic incentives, meaning that they placed professional career development and recognition above salary issues. Although they also highlight that other benefits are included in the compensation, most of those polled could not specify what the gap was between the workers and administrative employees’ compensation and those of managers.
In summary, the shared opinions on the four topics mentioned above reveal that the students’ limitations in understanding work in co-operatives in a precise manner lies in the scarce information they had available. They were limited in their knowledge because co-operatives are inadequately studied in the faculty’s degree programme.
There are few incentives within the faculty to encourage, produce and disseminate research on the topic and, within the university; it is considered foreign to professional concerns and, in many cases, co-operatives are not visualised as serious business ventures; the different but important aspects of the work that should be included when evaluating their effectiveness are simply avoided. Thus students had difficulty in understanding the unusual aspects of co-operatives as an organisational form as compared with the classic capital enterprise. This is a serious problem because it means that they have not developed within their professional training the practical skills that such ventures require.
The students’ preferences
Complementarily, the study focused on the students’ potential choices as future professionals for placement in various types of organisations and the reasons for supporting their decision.
In this topic we considered the bilateral character of every recruiting process, in the sense that, just as the enterprise selects the ideal candidate in relation to the characteristics of the post it wishes to cover, the candidates also select the companies that are most attractive to them.
In this respect, the literature on the issue establishes a certain correlation between auto-selective tendencies and the image of the organisation. The auto-selective tendencies are determined by the image that potential members of an organisation form about what is requested and what is offered to them. This image significantly influences the disposition toward being recruited. When the potential member can choose from several organisations, it is assumed that the organisation with the more attractive image will be more attractive for a prospective employee. Such firms will also find it easier to receive from the surrounding world what it needs to function successfully: that is, not only employees, but also clients, capital, incentives, and help.
From this perspective and based on the apparent factors that determined preference, we assumed that students would be most attracted to enterprises offering more lucrative rewards, notably the multinational corporations of great size.
Although 67.0 per cent prefer to be placed in business organisations, within this group 50.1 per cent express their preference for the small and medium sized enterprises, (SMEs) while 16.9 per cent prefer multinational corporations of great size. While 11.1 per cent have not yet decided in what organisation they would like to work, 10.9 per cent would consider working in co-operatives or being self-employed (9.9 per cent). Only 6 of those polled (1.2 per cent) opted for working in the public sector.
The small group of students who expressed a preference for working in co-operatives did so for a number of reasons. First and foremost, they valued the work as it contributes to the individual. To support this decision, they primarily referred to the relationships of work with their co-workers and the possibility of developing professionally and personally to obtain experience, to advance themselves professionally, to learn and to acquire knowledge.
In addition, they cited reasons that are particular to working in co-operatives. They emphasized that co-ops are often less structured and have a less formal character, that responsibilities are better understood, that the workplace is pleasant, that there is more freedom, and that it fosters constant productivity and improvement.
Taken as a whole, the respondents who preferred co-operatives saw them as enterprises that provided particular satisfaction in the areas of ability, extending responsibility and recognition, fostering professional progress, and encouraging personal growth and development. Clearly, this group of respondents perceives work as a combination of economic income, personal freedom, opportunities for socialization and involvement in an activity that contributes to one’s quality of life in general.
In the students’ words, “the work grants greater freedom to the employees, who can improve it according to their criteria”; they also said, “through group activities you obtain benefits for the enterprise as you co-operate with others to obtain them” and “the existing participation incentives allows the worker self-fulfillment”. Thus the result is that “in the co-operatives the individual is more valued as a person” and therefore they “present greater possibilities to grow and develop professionally”, so “economic well-being is achieved simultaneously with professional and personal development.”
Conclusion
The attributes and dimensions highlighted by the students as they visualize the work in co-operative enterprises leads us to think about the importance of the equilibrium between 1) the incorporation of organisational values on the side of the employees and 2) the incorporation of organisational priorities, which reflects an economic dimension whose consequences are expressed in the organisation‘s strategic alignment. This no doubt represents a dimension of a cultural nature whose consequences are translated on the plane of the social implications within the organisation.
As long as the equilibrium is long-lasting, it is possible from an analytical perspective, to differentiate issues, such as the implication, satisfaction and motivation of the workers and to realise that the co-operative enterprise can go beyond its immediate economic objectives to become a place where employees can more fully realise their personal goals.
In this way, the co-operatives’ employees will want to channel their energies to improve the quality of work in the organisation, to align themselves with the organisation’s priorities, and to spontaneously co-ordinate their own work with that of the team.
Mirta Vuotto is a member of the Faculty of Economic Sciences, University of Buenos Aires, and Vice-chair South America ICA Committee on Co-operative Research (ICACCR).
