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by Joel_Mckay
1298 days ago
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Some of the worst politics I ever saw were in nonprofit entities. Primarily, it was because some with dominant personalities made decisions that were not rational, informed, and or fair. The faithful talent tend to get hurt the most, as they invest more resources being driven by their ideals. I am all for profit sharing, but someone has to take responsibility for risk mitigation. The worst firms are ones where every narcissist thinks they are the CEO. The more money at stake... the quicker things tend to turn nasty. Best of luck =) |
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The claim that cooperatives act irrationally (and the implication that they're less efficient) requires some factual data to back that claim up, otherwise it's just that – an anecdotal claim. Here's academic data to dismiss those claims:
> Labor-managed firms are as productive as conventional firms, or more productive, in all industries, and use their inputs efficiently; but in several industries conventional firms would produce more with their current input levels if they organized production like labor-managed firms. On average overall, firms would produce more using the labor-managed firms’ industry-specific technologies. Labor-managed firms do not produce at inefficiently low scales
Source: Fakhfakh, F., Pérotin, V., & Gago, Mó. (2012). Productivity, Capital, and Labor in Labor-Managed and Conventional Firms: An Investigation on French Data. ILR Review, 65(4), 847–879. doi:10.1177/001979391206500404
Similar results were also found to hold in an older study by Craig and Pencavel in 1995.