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University of Reading
Department of
Agricultural Economics 8c Management
AGRICULTURAL CO-OPERATIVE
MANAGERSA pilot study of the recruitment and training of
the managers of U.K. agricultural co-operatives
11:>,F. D. MILLS 40,6
‘71.
Miscellaneous Study No. 65
1978 Price £1.00
University of Reading
Department of
Agricultural Economics & Management
AGRICULTURAL CO-OPERATIVE MANAGERS
A pilot study of the recruitment and training of
the managers of U.K. agricultural co-operatives
F. D. Mills
Miscellaneous Study No. 65
1978 Price E1.00
0 7049 0680 5
ACKNOWLEDGal int TS
would like to acknowledge with gratitude, the assistance of
the following:-
The Central Council for Agricultura3. and Horticultural Co-operation
for their financial support.
Officers of the Central Council - particularly those chiefly
responsible for Co-operative Planning, Training and Development.
, The chief executives who together with their colleagues gave so
generously of their time in interview and questionnaire completion.
Colleagues in the Department of Agricultural Economics and Management
at the University of Reading - for help in data recording, typing and
publication of the final report.
Readers will appreciate that the views expressed in this publication
are those of the author and. not necessarily to be regarded as those
of the Department as a whole nor of the University.
CONMNTS
Page
I. Introduction
Co-operative Manages as people: education,
training and employment history 3
Job Description 18
IV. Job Evaluation 27
V. Recruitment 33
VI. Summary and implications for the future 41
References 46
Appendices A. The Questionnaire and accompanying letters) 47
B. The Sample 55
C. Additional Tables 57
D. Previous occupations 59
E. Special training needs 60
F. Recent updatings or extension of training 63
G. Managerial training given to others 64
H. Adequacy of role definition 65
I. Differences between co-op and non co-op
management 66
J. Management Recruitment Policy 69
K. Management Development Policy 70
L. Career Publicity 72
M. Future Changes in Managerial qualifications 75
N. Other likely future changes in the
management of agricultural co-operatives 78
I. INTRODUCTION
Managerial ability is a productive resource. Few would disagree
with what must seem to many an absurdly self-evident proposition.
But how much is known about this resource and its employraent in British
agricultural co-operatives? It is now well over half a century since
an official enquiry (The Linlithgow Committee Report) published its
views on agricultural co-operatives.
"In our interim reports we have set out the various causes of
failure in this country such as the tendency for farmers to under-rate
the importance of first class management and to pay managerial salaries
inadequate to command the knowledge, judgement and. technical ski.1.1\which
is necessary for the proper conduct of the societies' business."0)
Despite a growing volume of literature on various aspects of
agricultural co-operation in the United Kingdom, there seems to be a
general consensus that information about the managers of our agricultural
co-operatives scarcely exists and that such information would be useful.*
If there -is any truth in the conventional wisdom that any organisation
(including a co-operative) is only as good as its managers, it would seem
prudent for interested scholars and practitioners alike to find out more
about this particular resource.(13).
To define 'management' and 'manager' with the precision expected
of scientific investigators is a daunting task. No single universally
acceptable definition of either term has so far been produced. One of
the underlying difficulties is that those seeking definitive versions have
widely differing objectives so that what might be adequate for one may well
be unsuitable for others. Nevertheless, in the absence of a universally
agreed definition, one must, however crudely, make an attempt to d.elineate
the subject matter under investigation. For the purposes of this survey,
the terms 'management' and 'managers' are used to refer to those people
who by common consent (formal and informal) are responsible for the
day-to-day control of an independent business involved in serving farmers
either by way of supplying them with 'agricultural requisites' (e.g. seeds,
fertilisers, animal-feeding stuffs) or in some way assisting with the
marketing of farm produce (e.g.- storage, processing, selling, price
negotiating etc.). This is not a particularly rigorous definition.
* Readers wishing to consult a definitive text on the organisation of
agricultural co-operatives in the U.K. are referred to MORLEY, J. (7)
An Appendix B (describing the sample and the methodology used in the survey)
shows, 74 of the 100 managers completing the postal questionnaire are
employed in the :traditional 'I and Pt co-operatives registered under the
provisions of the Industrial and Provident Societies Acts, whilst others
(26/o) work for businesses which, though having co-operative constitutions,
are registered under the Companies Acts. Moreover, a variety of formally
described posts is likely to be encompassed (including e.g. Managing
Director, General Manager, Chief Executive' Deputy and Assistant Hanagers,
'Accountant, Secretary, etc.). .Obviously, one also expects widely differing
levels of achievement to be found. (amongst the managers -thus defined) -
levels of achievement, that is to say, likely to range from utter failure
to great and convincing success. Among the possible causes responsible for
the varying degrees of success of co-operative businesses, it is a reasonable
supposition that quality of management is one of the most significczit
influences. Before that hypothesis can be tested however it is necessary
to obtain data about the managerial resources in agricultural co-operative
businesses. The main purpose of the investigation therefore has been to
make a start in obtaining those data. In this largely fact-finding enquiry,
information has been assembled about the educational and training background
of agricultural co-operative managers; about the nature and extent of their
managerial responsibilities, as well as the rewards - monetary and nory-Llonetary
associated with their job. Information was also sought on previous posts
held,. methods of recruitraent used, together with particular sources of job
satisfaction and dissatisfaction. The full range of the issues investigated
may be seen in more detail: from the questionnaire as set out in .Appendix A.
Further information about the methods used in choosing the sample, in data
collection and analysis is contained in Appendix B. Briefly, however, the
bulk of the data analysed stems from the replies to the postal questionnaire.
In a few instances this was supplemented by data arising from visits and
interviews at some of .the larger co-operatives.
- 3..
II. CO-OPERATIVE MANAGERS AS PEOPLE
Is there a typical- agricultural co-operative manager? The evidence
assembled by the present survey would suggest otherwise. Variety rather
than uniformity has characterised so many of the findings. From the first
question about formal titles right through to the final invitation to express
an opinion on changes foreseeable in the future, variety has been the key-
note. This is perhaps well illustrated in the profusion of formal job
titles reported by the managers completing the questionnaire (see Appendix C
Table I). 'General Manager' was the most frequently stated title - being
reported by 60% of the sample surveyed. The title of 'Managing Director'
was used by 11% of the survey managers but a very similar proportion (12%)
reported the double title of livianager/Secretaryl. alongst the remaining
miscellaneous titles, those of 'Chief Executive' and 'Managing Director/Secretary'
were each used by a relatively small proportion (3% in each instance). To
the industrial psychologist, the question of title may have some significance
in considering such matters as status, and morale and. these in turn may be
seen to have some association with the power and influence of industrial
managers. The nature of this enquiry however precludes further investigation
of the speculative (but nevertheless interesting) sociological/psychological
relationships between the posts held by managers and the titles given to
them.
Of more practical significance than job titles, is the question of azac
For fairly obvious reasons age is associated with qualities such as energy,
imagination, caution, responsibility, each of which are clearly significant
attributes of any managerial force under examination. A priori, job
satisfaction for individual managers is expected to vary with different phases
of his life cycle as well as, of course, with the different phases of his
career.(2)
The age distribution of the senior managers taking part in the
survey is shown below.
(N.91)
Age Group
Under 30 yrs.
31 - 40 yrs.
41 - 50 yrs.
51 - 60 yrs.
Over 61 yrs.
Number ofManagers
21
3421
11
523
3723
12
Total 91 100
— 4 —
Given the normal span of human life and conventional notions of status,
authority and the development of these qualities, the fact that the largest
proportion (TN of the survey managers were in their 40's will perhaps
occasion no surprise. The 23% reported as being in the 51-60 years of age
group may likewise be not unexpected. More surprising, at least at first
sight, is the small (123) proportion of the survey managers aged 61 and over
and the number - (4) - of young managers i.e. those under 30 years of age.
How far there is in fact a significant relationship between age and other
aspects (e.g. job satisfaction) reported by the survey managers needs further
investigation but meanwhile we may note that studies elsewhere have confirmed
'a priori' notions that older employees tend to express more job satisfaction
than do their younger colleagues. Likewise the same studies have reported
that 'employees with the shortest and longest length of service were more
Company involved than those with a medium length of service'.(3)
The-70 at -11011 rOagerial xes 0 ibilit es were first unslertan
is also of interest. The responses to this question are summarised below.
(It should be noted of course that the managerial posts concerned are not
necessarily in the agricultural co-operative business currently employing
the survey managers).
Age when first appointed Number ofto a managerial post Managers (85)*
Age group (Years)
Under 20 years 6
21 - 30 years 46
31 - 40 years 28
41 - 50 years 451 — 60 years 1
7
54
33
1
85 100
*(6 managers did not answer this question)
.These figures are interesting partly because for n people so-called.
success in apart:ler is closely connected with age. Certain steps on the
promotional ladder are by common consent readhed by a particular age. It
is said to be socially acceptable to "beat onels age -grade and career status
and thus have . a reputation as a highflier".(5) Getting there late however• „
is usually, a. cause for anxiety!, .Partly for this reason it is interesting
to compare the age characteristics of the agricultural -co-operative managers
. . .
-
in bilis ffum-vey with corresponding data relating to managers in other sectors.
Tables 1 and 2 below compare survey data with statistics from a survey made in
1970 by Dr. Legatt - on behalf of the Management Education Training and
Development Committee of the N.E.D..C.(4)
TABla 1
Distribution of managers by age and sector
Age Group °6 Total EmberSector 20's 30's 40's 50's 60's in sample
(a) Agricultural Co-operatives 5 23 37 23 12 91
Food 7 35 34 21 2 95
Retail Distribution 14 30 31 19 6 37
Wholesale Distribution 22 19 36 19 0 37
Source: N.E.D.C. The Training of British Managers H. M. S . 0 . - 1972
(a) Survey Data
111111111WWWW.
TABLE 2
Distribution of_cage on first managerial appointment
(Agricultural co-operative. managers compared with managers generally)
A e (years) Agricultural Co-operative Managers (a) zaa2E-1.1.11.1n1:12a
20 and, under
21 to 30.
31 to 40
41+
e/
7
54
33
io
2
56
32
10
Source: N.E.D.C. The Training of British Managers }LEL& . 1972
. (a) Survey D#4
.•
The purvey and other data in Tables 1 and 2 are of course not .s:t_xj.c.ily,
comparable. But if due note is made of the different sample sizes,
definitions employed, year of investigation and the like, it would appear
that there are no particularly startling contrasts. So far as the age
structure and age on first being appointed to p. managerial post are •
concerned, the managers of Britain's agricultural co-operatives mould
— 6 —
appear very little different from the managers in other sectors of the
economy. The differences, such as they are, tend to appear at either
end of the age spectrum. The figures in Table 29 for example, suggest
that amongst the managers of agricultural co-operatives in the U.K. there
are proportionately fewer in the younger age group (i.e. in their 20's
4nd 30's) and proportionately more in the older age groups (i.e. in their
50ts and 601s). Part of this difference however may well be due to
differences between coverages of the two investigations. As explained
elsewhere (Appendix. B) the postal questionnaire had been primarily
designed for (and addressed to) the chief executives of agricultural
co-operatives. The N.E.D.C. survey on the other hand had a wider
coverage which included junior and. middle management levels as well as
senior managers.
1122_24ucatianalbac1çaund of managers is also clearly likely to be
of relevance for a deeper 'understanding of the nature of this particular
imput as employed by British agricultural co-operatives. The relevance
of educational qualifications for managerial posts is of course something of
a contentious Lame. There are grounds for believing the topic to be raised
more frequently and with more vigour by people with relatively low formal
qualifications than by others. In a recent study,Dr. Cyril Safer has stated
that in his view, very often .the debate is associated with the recruitment
of graduates into the company.
"On the one hand it was said that academic studies had limited 'Mattefor the Autoline company; that the work was a matter of common senseand did not require a particularly high level of education; thatthe knowledge acquired in formal education was not used; that thecompany ran on procedures that could be taught on the job; thattime spent on the plant, especially on the shop floor is a betterinvestment than formal education when it comes to handling practicalproblems, especially those involving people. On the other hand therewere many expressions of regret, often by the same men about not
having gone further with their formal education, and descriptions ofattempts they had made or would still like to 1114 to overcome this .felt handicap by some form of part-time. study":0)
It is to be expected that in industry overall the educational
qualifications existing in and indeed zeguired of managers would vary
considerably between companies, depending on their size, nature of business
and the like. The 1972 N.E.D.C. study provided a certain amount of
evidence that in general, non-manufacturing industries were "significantly
readier to take into management those with no particular educational
qualifications".(4) Table 3 summarises the findings of the H.E.D.C. study.
— 7 —
241312....2
Bducationaris revired of rnanagr in certain industries
Sector None.imgajzo. 'A
GCB Uni,v, Professionallevels degree mbershi
(a) Accelowzalifications
Clothing 73 7 — 20
Distribution 61 48 13 4Printing and Publishing 54 27 27 18
Road Transport 43 24 5 9
(b) Iholgaill&hIgh_gaallfications
Oil and Petroleum
Finance •
Local Government
11
13
5
33
40
19
67
30
38
Amaismoloramaromisomm,
All industries sampled 39 20 28
11
40
81
27
(The answers include multiple responses in some instances, e.g. where differentqualifications were required of different types of manager)
Source: 17.E.D.C. 1972(4)
The broad division of industries in Table 3 is too crude for most purposes but
even so it is interesting in being consistent with "a priori" notions of the
extremes one would expect to encounter. Certain industries, as the data in
, Table 3 show, require exceptionally high qualifications whilst others expect
little or nothing in the way of prior educational qualifications. As one
might expect, firms in the clothing and distribution industries came into the
latter category whilst oil and finance companies came into the former. The
evidence from the survey of agricultural co-operative managers is all the more
interesting for being seen in the context of data relating to industrial
managers in general. Table 4 summarises the type of schooling reported by the
managers of the 91 agricultural co-operatives taking part in the survey.
- 8 -
TABLE A
Type of schools ,,ttgniclaciply_aalcalLbural co-o_erativp mana ers N.
Type of school Numbers
Grammar 40 44Public (or private) 26 29
Secondary Modern 18 20
Technical 3 3Church 'I 1
More than one type 3 3
Total 91 100
Very nearly two-thirds (.60) of the managers participating in the survhad attended either grammar or public school. Nearly 3c6 had in fact
attended either public or private schools - a finding which may surprise sope.
Al...an...92mLour of graduatesnn professionally qualified people,
agricultural co-operatives again seem not to compare unfavourably with otiler,
sectors generally. Table 5 summarises the data on the post-school qualifications
as reported by the survey managers.
TABLE 5
Post-school sualifications of a iaaltural co-o erative man,..ers N.100
First Degree (mostly on agricultural or related subjects)
Professional but non-graduate
Short term (less than one year)
None
Total
Wait
17
39
14
30
100
The proportion of graduate managers employed by the agricultural
co-operatives (17%) can be compared with the corresponding ratios as reported
in other similar investigations. Thus the 1972 N.E.D.C. investigation
revealed that out of a sample of 89 managers working for firms employing
between 500 and 999 workers, 11% of managers had a first degree.(4)
— —
Likewise out of a sample of 104 managers of firms employing 100 to 499 workers,
a similar proportion (IV) had a first degree. Firms with more than 1 9000
workers however tended to have a greater proportion of their managers with
first degrees - over a fifth of such managers were graduates.
The question of graduate employment at managerial level in agricultural
co-operatives will be raised again in a later section on recruitment.
Meanwhile, it is as well to stress the difficulty of unreservedly accepting
individual's responses as representing their real feelings on this, as indeed
on a number of other subjects. This has long been a familiar limitation of
social survey techniques and is to a certain extent inevitable. R.V.Clerae#ts
in his 1956 study - 'Managers', for example, testified to the seemingly
defensive nature of many of the derogatory statements about graduates.(6).
All too often, he found that after sturdy assertions about- "experience and
training got the hard way were best" there would follow statements of regret
at not having gone to a university. This regret was not necessarily
expressed in terms of education as a direct aid to their careers but rather
more as "a culturally broadening experience or one that could impart
confidence and ability to deal better with colleagues or with their opposite
numbers in other firms". (6,)
It cannot be said that the present survey of agricultural co-operative
managers revealed much evidence that the demand for university-trained
managers as such was growing. However, with the greater availability of
university education these days it would seem more or less inevitable that
the agricultural co-operative sector will contain in its managerial ranks an
increasing proportion of graduates, an increase that is to say, which is
independent of specific changes in the demand by agricultural co-operatives
for such people.
Earlier in this report attention has several times been drawn to the
variety, of characteristics to be expected of manager and. job requirements
alike. Once more this is markedly demonstrated by the non-aduate forms
further education revealed by respondents' answers to Question 3a. The
following is a list of the main forms of non-graduate further education or
training undertaken by the agricultural co-operative managers participating
in the survey.
Estate Management
Land. Agency
Business Management
Armed Services
Technical Agriculture and. Horticulture)and Dairying)
Book-keeping
Accountancy
Farm Management
Marketing and Salesmanship
Engineering
Agricultural Co-operation
These 'courses' varied in duration from one day to several years.
Some were given by professional bodies, by correspondence schools, by evening
technical institutes agricultural colleges, the C M. (Institute of Corn
and Agricultural Merchants), Business Schools, City and Guilds, Central
Council - to name but a few. It is of course a moot Point as
to whether this variety is to be welcomed as part of the culturally broadening
experience mentioned earlier or to be deplored as evidence of the unco-ordinated
profusion so characteristic of the training facilities that in the past have,
some would seek to say, contributed, albeit haphazardly, to 'producing'
today's agricultural co-operative manager. More will be said on this topic
in the section dealing with recruitment. Meanwhile the wide variety of types
of formal further education and training of Britain's agricultural co-operative
managers has been noted.
Formal courses are not the only form of training for a career.
Experience or, as it is sometimes put, "the university of life" is regarded
by many to be equally if not more important as a factor contributing to
managerial ability. The survey managers were accordingly asked to give
information about the range a d ex-1jer posts with previous as
well as with present employers. Table 6 shows the distribution of the yearsof service with the co-operative currently employing the survey managers,
TABLE_ 6
Years QLsvice with emplo erina.
1 - 5 Years6 - 10 Years
11 - 15 Years
16 - 20 Years*
21 - 25 Years
26 - 30 Years
31 - 35 Years36 - 40 Years
Over 41 Years
32
24
14
1
2
1004111.1MOMMINIOMPRIONI
The data on Table 6 show that well over half (56%) of the agriculturalco-operative managers surveyed had been employed with their current employprfor less than ten years. At the other extreme 16% of the survey manage:L.'s ,had served for periods of over 25 years - indeed some (6) had served for41 years or more. Data which are exactly comparable are not available butin his 1970 study of 81 British Managers, Dr. Cyril Sofer reported the(5)following.
TA7T1.2
Number of ven=!service namber of_magzersO5 6 -
-10 2611 -15 2716 -20 1521 -25 7
Total
32
3319
- 81 100
As mentioned earlier, the much bigger percentage of agriculturalco-operative managers with service in excess of 25 years is presumablymostly accounted for by the survey being designed primarily for chiefexecutives who on the whole are likely to be older men. It is, even so,interesting to note that nearly a third of the co-operative managers liaabeen with their present employer for fewer than five years.
- 12 -
Of interest also is ta_mportion of manaa.ers who have occupied other
pos-bs with their pre_2211.1_22agar Whilst over half (50 reported that
they had not occupied other posts, nearly a quarter (23%) had been employed
in one previous post and a further 11X) had in fact held two previous posts
with their co-operative. Table 8 summarises this aspect.
TABLE 8
Maxima's hay=_previousl held other oats with resent em loyer (N. 9)
Number of diffettsd
12
3
6
7None
Not answered
of
23
11
7
2
52
1
100
In short then, just a third (34%) of the agricultural co-operative managers
had. experience of one or two previous managerial posts with their current
employer - some as office manager, some as sales manager or branch or
regional manager.
The type of previous work most frequently reported was concerned with
either selling (marketing) or with farming (growing.). An approximately
equal number of respondents had been employed in a more technical/professional
capacity, e.g0 as accountant, company secretary or office manager. There
were three instances of managers who had previously held a directorship with
their current employer, and two who had been buyers. These findings would
once more seem to testify to a variety rather than to a uniformity of pattern
of the previous posts with present employers. Appendix: D lists the full
range of types of occupation experienced by survey managers before taking
up their present post.
Most (91%) of the survey managers stated that they had one or more
jobs with other employers before coming to the co-operative now employing
them. Table 9 shows that nearly a fifth OM had only one post but thatover a third of them had been employed in three different jobs beforehand.
- 13 -
,Number of jobs held by qurve man ers before comm n to • resent em lo or N.100
Number of lobs 26.None 9
19
2 28
38
4 410 or more 2
100
These previous posts again displayed the wide variety typical of the
attributes already described. School and. college teaching, service in the
armed forces, farming, mining, fishing, the police, retailing, accountancy,
selling, engineering, insurance, banking, clerical work, company secretaryship,
farm management overseas, breed and. show society secretexyships, shipping,
au.ctioneering and valuing, transport, MIS creamery work - each figured as
areas of previous employment. In addition of course, managerships of vc.,,r4.q4s
kinds had been held a-b branch, district or other regional levels together
with a variety of functional appointments such as mill or transport manager
and. of course the ubiquitous sales or marketing manager. P„uite how one
interprets actual responses to these questions, i.e. - how much• to allow for.
"modishness" in the terminology and how far jobs with different titles are
really very similar are, of course, difficult questions. But due allowance
having been made for the possible vagueness of the data, a number of points
do emerge.First is the wide range of occupational backgrounds already noted.
Secondly the fact .that one of the most frequently reported job categories is
that of practical farming - either in the employer or the hired-worker sense.
Thirdly a large number of survey mglragers stated that they. had previously
held directorships of one sort or another with other firms - some unspecified -
others reporting managing directorships and others marketing or sales
directorships.
It is of course well known that some (though by no means all) of the
larger companies in the U.K. either have their awn internally organised
coume_a_Loxiazaa..,.....ders or arrange for their managers to attend external
courses. In seeking further insight into the employment background of the
survey managers it seemed relevant to enquire further into the inciaance and
nature of training reported as being provided in this way. The majority of
- 14 --
the respondents (61%)---t) ated-that-they had had no such courses. Lmongst thosemanagers who had undergone (and supplied details of) such training, manyseemed- to want to emphasise that experience of actually doing the job wasthe most valuable form of training. Stress was also laid on individualattitudes of keenness leading to private initiatives by way of reading ingeneral and keeping themselves informed. The following response illustratesthis kind of approach:
"To a considerable extent in the employ (sic) of a large farming andmarketing company in South Lincolnshire. Plus a keen personal interestleading to much reading of trade, accountancy, costing and managementbooks etc."
As would be expected, a number of nationally (and internationally) knowncompanies (e. g. Tvlarks & Spencers, General Electric, British American.
Tobacco, Regent Oil, Du. Pont, Geia 9 Unilever, I.C.I. Shellstar, 9 Fisons,
J.Bibby) were cited as having in various ways provided managerial training
courses to the respondents whilst in their employment. The courses varied
in length from one day to three .months. Co-operative agencies and.
co-operative businesses themselves were sometimes (but far less frequently)quoted as either financing or making directly available courses for the
respondents. The C S. was mentioned more than once, as were East Kent
Packers, The Federation of Agricultural Co-operatives, and S.C.L.T.S.(Southern Counties Agricultural Trading Society). The educational andtraining institutions who provided these courses included the PlunkettFoundation and Brackenhurst College. Other agencies included inrespondents' answers included the C • C A.11. C,, City and Guilds Institute,British Institution of Management, Ashridge College, and the Royal College
of Agriculture.
Whether further formal training of managers is essential and if so what
kind of training seems to be most appropriate are of course familiar areas
of contention. That this is so can be seen from the pattern of answers to
Question 3c which asked whether respondents thought formal training formanagement was "essential", "desirable but not essential", •or "unnecessary".
Over half (53%) of the responses thought that such training was "desirable
but not essential". Those who thought otherwise included some (38%) who
deemed managerial training to be "essential". A very few (3%) stated that
they believed such training to be unnecessary. "Only experience necessary",
stated one manager, whilst another wrote, "There is nothing to compete with
practical ex-perience •;- specialist training is a short cut".
- 15 -
• One of the objectives ,of the survey, was to try to find. out how far
at all) the management' of agricultural co-operatives was different -(im
general aims and structure) from that of Qther _forms of business organisations.
There are those, for .example, .who believe that the difference .between a
co-operative and an ordinary company is not "properly, understood": _ancl. "is
a.- source of continual confusion and misunderstanding" leading to go-operatives
.being ""set tasks .which it .is.' not appropriate that they 'should undertake", a.nd
to being "judged by criteria which are not -properly •applicable to •their
circumstances (7)". . The': survey revealed that there axe number ..of
agricultural co-operative-managers who would agree with this statement.
Question 3d. Invited respondents to give their views on whether or not the
'management of*. co--,operative. societies as such called. for particular _specific
training., in some respebts. Whilst just under a third (30/0) gave replies
indicating that they did not, think any particular training (specific to the.
co-operative form of the -organisation) was necessary, amongst the -remainder
there was obviously a significant number who took the .contrary view:
Appendix E contains a selection of the verbatim. replies, to this question.
Illustrative. of this point of. view .are such statements .as 'So long as the .
difference between co-operative society and private company •is -known. and •
appreciated" - and "to the extent of emphasibing the difference between tie
co-operative business and !private' or "capitalistic business". • Another
manager with similar views wrote that particular and specific training was
'called for' so as "to bring out the difference in Co-operative Marketing as
against Private commercial trading"... . But the replies ta Question 3d were
also interesting for 'the light thrown on the difficulties 'some managers
experienced in answering this question.* - Responses included "Equating
commeimial and co-operative thinking difficult" and. "the art (sia.). of being
commercial but still maintaining the interest of its members", and "the need
to motivate members to Co-operate as opposed to 'accepting commercial authority".
One chief executive even went so far as to write "Co-ops (sic) have a
natural tendency to be loosely structured. and hence under-organised. To
be successful this must 'be countered by a strong oi?gani.sational skill at
the top".
The selection of replies to qu.estion- 3d contain a number (15) of
references to the problems centering on member/society relations -
presumably arising out of the fact that. in the agricultural co-operative
. .* These difficulties seem to be partly in knowing what to think- but
partly also perhaps in expressing what they thought.
- 16 -
form of business it is the members themselves who are either its suppliers
or its customers or both. Thus "Society/Member relationship requires
special skills" or "In dealing with member suppliers" or "To balance
growers-member interest with long term company interest" may be token as an
indication of the tensions sometimes arising out of the triple role played by
many farmers/growers vie-a-vis their co-operative, i.e. of being a shareholder/
member (with voting rights) at the same time as either supplying or buying
(or both) from the same orgrmisation. Emphasis on the training in the
special membership relations aspects of co-operative businesses figured as
frequently in the responses, as did. the need for knowledge of and sympathy
with, the "basic structure and philosphy of co-operatives", as one respondent
put it. By far the most frequently observed single topic in this Quest for
what agricultural co-operative managers themselves thought was the most urgent
training, concerned the essentially commercial approach deemed to be so
desirable. Reference has already been made to this aspect. Perhaps (for
the moment) the last word on this may be allowed from one of the respondents
who did not believe that the nature of co-operative societies called for
particular specific training for its managers. His reply was "No - other
than normal commercial training plus some legal. They are essentially
comercial concerns as are their constituent parts (members) with whom one
should deal as both managers and consultants".
The survey managers were also asked to give brief details on....„
extension or up-dating of their training that they may ,have undergone. The
majority (65$) stated that they had .n.ot undergone any such extension or
up-dating. Eleven managers did not answer this question, but as Lppendix P
shows, apart from one respondent who acquired a post-graduate Diploma in
Ivirmagement Studies, most of the managers who had experienced further training
instanced the one or two-day short courses organised and/or given by the
Central Council. The Central Council was indeed far and away the most
frequently mentioned source of further training - nearly half (45/) of the
24 u te-rs who provided details of such training referred to courses
organised by this inItitatiOn. Other institutions mentioned in this
context were the ilsricultural Training Board and the Manchester Buainess
School. One interesting aspect of the replies was that a number of the
courses mentioned seemed - from their title to be.more concerned with
Director training, e.g. two replies referred to the C.C.A.H.C. 'a new (sic)
Director's Course - and one reply mentioned "Video". "How to be on
effective Chairman".
-
On the question of whether or not they were involved in giving
mamEq,li.alW to others formally or, informally iiithin or outside
their co-operative, about a third (34. of the respondents. replied. that they
were not involved in this activity. Nearly two-thirds of .the .managers however
reported that :they were involved in giving this kind, of.. training, - mostly to
employees within their own co-operative..and mostly on an informal basis.
Only two of .the respondents mentioned that they gave some extelup.1. training
via lecturing at e.g. A.T.B. courses or assisting on "C.C.A.H.C. Courses";
Appendix G contains a selection of the more detailed replies.
III._ JOB DESCRIPTION
In order to obtain .a clearer picture of the nature and setting of their
particular jobs, 'survey mana6rs were invited to draw a simple organisational
chart to illustrate the main lines of command, numbers of sub-ordinates,
direction of aupervisional responsibility etc.. Clearly the detailed elements
of any managerial hierarchy are likely to vary according to size, type of
product(s) (or processes), number of employees and other similar factors.
Not every respondent answered this particular question (Question 4e) and
amongst the charts that were produced there were the inevitable ambiguities.
By and large however, the evidence collected from the questionnaires confirms
the existence of a reasonably typical (and to be expec-ted)pattern.
Most of the agricultural co-operatives' managerial hierarchies that were
outlined showed, as one would expect, the supreme policy-making function as
being the prime responsibility of the Board of Directors. (The former term,
"Committee of Management", was used by only one or two respondents.)* The
organisational 'tree' then usually started by showing the Chief Executive as
being responsible to the Board via (usually) its Chairman. Below the level
of Chief Executive however a wide variety of chains of command were outlined,
varying, one suspects, not only with size and type of business but with the
appetite for detail and organisational blue-prints possessed in greater or
lesser degree by survey managers. At one end of the spectrum, for example,
extreme simplicity was the keynote. In one small and relatively recently
established co-operative company the managerial hierarchy was presented thus:-
Manager
Account and Invoice Clerk
By way of contrast however the organisational chart drawn for a large and
long-established co-operative, with an annual turnover in excess of E 20 million,
has (and obviously needs) a much more complex division of managerial
responsibilities. The Chief Executive is also the secretary and has a
Deputy (in both capacities). Other colleagues in the same co-operative
work at the same hierarchical level e.g. Chief Accountant and Computer
Manager. Immediately responsible to the Chief Executive (and his Deputy)
* It would appear that the statutory tern "Committee of Management" isused these days mainly by Welsh co-operatives. In England it has beenlargely superseded by "Board of Directors".
- 19 -
axe three assistant general managers whose responsibilities are partly
regional, partly functional - e.g. Sales, and partly on a Commodity basis
(e.g. grains or fertilisers or fuels). The next rung comprises mainly branch
managers, shop managers, machinery managers. At this level of authority
however the wealth of detail submitted precludes further analysis. Given
the variety (and vagueness?) of the terminology used there seems little
point in attempting to reproduce the full range of organisational charts
submitted in answer to qu.estion 4e. Moreover it is well known that however
clearly and unambiguously a particular organisational chart has been drawn, the
extent to which it truly represents the actual lines of division currently
operative is uncertain.
It is almost a truism that all successful business. organisations need to
establish an effective communications mechanism by which the various elements
of the management team are co-ordinated. Most would agree that a s.i.....„,pagea non
in this respect is close and frequent contact between a society's chief
administrator and its policy makers. In part this is achieved by having the
chief executive present at Board. Meetings - either in his own right because
he has a seat on the Board (e.g. those chief executives who were managing
directors) or because such a practice is seen to be a sensible element of
good communications. This would seem to be the view (and the practice) of
the bulk of the co-operatives surveyed.. All but one of the chief executives
stated that they attended meetings of the Board. Moreover the vast majority
(97/3) stated that they influenced the preparation of the agenda for such
meetings.
The co-ordination of any large group of individuals however is not
solely a matter of formal meetings between policy-makers and senior officials.
Informal contacts - the unscheduled as well as the scheduled have a part to
play in the mechanism whereby "left hands know what right hands are doing"
(or thinking of doing). The nature and frequency of such contacts is of
interest to those seeking to understand more of the inner workings of an
organisation. Managers were therefore invited (Question 4i) to indicate
the extent of their business contacts with their Board Chairman, with other
members of the Board, with ordinary members of their co-operative. The
answers ranged from "daily" to "occasionally". Seven per cent of chief
executives reported that they saw their Board Chairman daily whilst for a
further 19/) such contacts occurred more frequently than once a week. A
further 41% wrote that they met their Chairman weekly on business matters.
Those managers who net their Chairman less frequently were clearly in the
minority. Nevertheless, the 10% of cases in which such meetings were
described as occurring only. 'occasionally' must give some cause for concern.
- 20 -
Meetings between managers and other members of their Board were (bydefinition almost) likely to be less frequent than those between ChiefExecutive and. Chairman. The majority of Managers stated that in the mainthey met the other members of their board. once each month (presumably mostlyat Board meetis). A nimbei. of the responses to this question however were
• couched in (uncle.=3.bande.,b1y) imprecise terms such as "as frequently as required"or "when the occasion demands it".
Contacts between a Society's Chief Executive and its ordinary membersis clearly, in the nature of things, not likely to be anything like asfrequent as with Board members. The evidence collected from the questionnaireis that over three-quarters (76%) of the managers reported that their contactswith ordinary members, though 'regular' in some cases, were mostly 'occasional'or 'limited'.
More detailed data about particular managerial responsibilities werenaturally enough one of the main themes of the _Job Description section of thequestionnaire. In an ideal world of course these responsibilities are alwaysclearly defined by the Board of Directors. In practice however the questionof proper delineation between what is the function of the Board and what arethe responsibilities of the managers is frequently not at all clear. Thishas been said many times by a number of authorities over a long period. of years.The Co-operative Independent Corinission Report (1958) observed, "Tie have beensurprised to discover in how few Societies is there any clear definition of theresponsibilities respectively of the Board and its Chief Officials". Morerecently the Central Council published the results of an investigationundertaken on their behalf by Wye College.(9) According to the "Wye Study","Role definition has been left particularly obscure in the case of theco-operative managers. Board supervision is most often asserted by limitinghis discretionary -powers". This finding however does not seem consistent withthe replies of the managers participating in the present investigation.Predictably perhaps, the great majority (81%) abpeared. to think that their rolehad been adequately defined by their organisational supervisors. • Three managersdid not answer the relevant question (5d). Out of the whole sample onlysixteen stated that they did. not believe that their role (i.e. in terms of
specific responsibilities, channels of communication etc.) had been satisfactorilydelineated.
Appendix H contains a selection of the verbatim replies to question 5di.e. by those managers who claimed their role had been inadequately defined.The responses are puzzling. Some are generally approving but others
indicate dissatisfaction. Quite a number see no particular disadvantage
- 21 -
inherent in ill-defined _managerial responsibilities. This perhaps was most
colourfully put by. the respondent who wrote ".It has only been defined in the
loosest manner - but :this allows scope for initiative - and brickbats". Much
the same point was put by another who asserted "1 happen not to believe in
too rigid definitions of either responsibility. or communications". The sane
respondent continued however with the revealing statement "1 look upon this
business as my own and too much rigidity can freeze action".
The more critical comments made by survey managers concerning the
adequacy of their Board's definition of specific managerial responsibilities
merit some attention. For example the comment "Ily organisational supervisors
are my Board and Chairman. .Insofar as they are inexperienced in corporate
commercial matters they do not understand their role and therefore cannotdefine mine", will perhaps be echoed by more than one manager. Other comments
included: "Never been defined" or "I had to write my own job description".
Such statements as "Does not apply" or "This took some time" or "-But irrelevant
as I have to see evinp. and can delegate as necessary", whilst not always
clear, do at least provide food for thought. One wonders how far agricultural
co-operatives are different in these respects from most other kinds of
comparable business organisation. To keep a proper sense of perspective
however it is as well to recall again that over four-fifths (81) of the
responding managers stated that they thought their role had been adequately
defined by their organisational supervisors. On a lighter note, perhaps the
last word should be left with the manager who completed this part of the
questionnaire (Question 5d) by stating, "It would be most difficult for them
to deScribe me as anything but the bloke in charge in
As part of an attempt to obtain more specific information about
managerial responsibilities, a series of questions (Section 4h(i) to (iv))
were designed to throw light on how far and on what aspects managers had.
complete discretion and how far they had to seek formal Board approval for
their actions. Four main areas of decision-making were delineated, viz
personnel, innovation, capital expenditure, and trading (i.e. buying and
selling).
^
• * In order to avoid identification of individuals some data have beendeliberately withheld.
- 22 -
Managerial discretion over personnel matters (mainly recruitment and
dismissal of staff) mostly conformed with expectation, tbat is to say near37
two-thirds (634) stated that they had entire responsibility. Most of the
remainder (reporting only a part responsibility for personnel matters)
recorded that for management-level appointments other colleasues (including
Directors sometimes) were (and needed to be) consulted. One Chief Executive
(possibly a little more explicit in his replies than most) explained that
whilst his Board. placed no restrictions on him, colleagues were always
consulted as a matter of course. Another respondent replied thauchtfully
"One must appreciate that functions are inter-related and there is dependence
on other people e.g. personnel but the ultimate responsibility is to the M.D.
via the Director concerned".
Responsibility for innovations and longer tern development matters
generally was reported by the majority (700) as being a part responsibility.
Of those managers claiming entire responsibility in these matters a number
admitted that although 'thinking' innovations was their 'entire' responsibility -
they were as managers only 'partly' responsible for the implementation of new
ideas.
As one would expect, the responsibility for capital expenditure was an
area where the majority (73%) of the managers reported only a part,
responsibility. Typical of the replies to Question 11(iii) in Section 4 are
"Apart from replacement (capital items) Board always consulted". "Board
ratifies large capital expenditure". "Major capital projects require Board
approval". Not many referred to an actual limiting figure for unratified
capital expenditure but amongst those that did the range of limits ouoted
was wide. One manager for example stated that he had entire responsibility
for capital expenditure only for achemes not exceeding 6:50 in value. For
others figures of EMI and E300 were mentioned whilst at the other extreme
"New expenditure over E5,000 would be a Board decision".
• It will surprise few that for the trading type of decision (choosing
supply sources, channels of output distribution etc.) the bulk of replies
showed that most (79%) had entire responsibility. One suspects however that
there is a danger of artificially forcing an unreal strait jacket, of labels
on matters which are too varied to be meaningfully slotted into neat mutually
exclusive categories. The following comment from the chief executive of a
second tier co-operative illustrates thus - "1 would like to point out that
this Society is unique and many of the answers may not coincide with single
society situations with profit motives".
- 23 —
As part- the attempt to understand what is involved in co-operativemanagement the respondents were invited to estimate the number .of hours worked
• • •
in an average week (Question 6f) and to indicate an approximate breakdovm ofthe main elements of that. week (question- 4d). The range of answers to bothquestions are interesting. ,The number of hours rep.orted as an average workingweek was as follows:-
Hours worked
Up to 30 hours
31 to 35 hours36 to 40 hours
41 to 45 hours46 to 50 hours51 to 55 hours56 to 60 hours
Over 60 hours
Not answered
' Total
Number of Manapers N.100
2
0
8
8
31
19
18
12
2.
100
It can be seen that at one extreme two respondents reporteci an i'.veree.,ge
working week of under 30 hours. These however, in the words of one of them,found the question "difficult because this group (sic) would seem to beatypical". (Needless to say, their gross salaries were not in the highestincome bracket, and in both cases each stated that they enjoyed earned-incomefrom other sources). At the other extreme, there were five instances of anaverage working week claimed to be in excess of 70 hours. One or two of themore considered replies differentiated between. seasons, (e.g. for sin monthsof the year an average working week of 100 hours was combined with the othersix months averaging about 45 hours per week). Others were careful to pointout that their estimate included evening meetings of one sort and. another -mostly referred to as members 'evenings'- but sometimes including eveningmeetings of Directors. Still others were honest (and realistic) enough tonote that their estimated hours included travelling plus "thinking" timeoff the job whilst pursuing maw other interests. One obvious enthusiastaccompanied his estimate of 65 hours per week with the comment "My ownfault but I love it".
question 4d, as already indicated, was one of a number in Section 4designed to throw light on what agricultural co-operative managers actuallydo, i.e. how their week went in terms of time spent on the various thingsthey did. Regrettably however there were more "ilia's" and. "blanks" to this
24
question than to most others. One or two respondents even went so far as
to answer "not possible" or "it is really not possible to define an average
working week with this breakdown". Some differentiated between seasons.
In general however the undefined terms used (in what way, for example, does
'budget projection' differ from 'financial planning', and to what extent does
'marketing' differ from 'selling'?) meant that the responses to this
particular question were one of the least satisfactory parts of the whole
investigation. Amongst some of the less ambigiaus answers the following
may however be of interest:-
"15% studying management information, 65% talking with senior managers
responsible to me, 10% negotiation, 10c/ investigation future
opportunities".
750% preparation for meetings and sending out information, 25%
negotiating, Iqi.) accounts, 1CP/0 budgets, 5% drinking and lunching".
"Finance 10%, keeping everyone happy - growers 303/3, staff 60/)".
For the purpose of this survey the term 'job description' includes
the terms (or conditions) of the appointment e.g. salary, holidays, pensions
etc.. It would obviously be naive however to expect a completely definitive
examination of all the factors motivating individuals in their work - the
incentives and disincentives - monetary and non-monetary. In setting out
below the visible and the measurable elements of agricultural co-operative
managers' rewards it is as well to remember that these are only a part and
not necessarily the most significant part of the total explanation.
Salaries perhaps come first to most people's minds when describing
and comparing jobs. Survey managers were asked (Question 6g) to indicate
in which of eight income brackets their gross salary fell in the last
complete financial year (1976/1977). One senior and one assistant manager
failed to complete this part of the questionnaire. The replies of the
remainder are summarised overleaf.
Gross Sal of A icultural Co-o erative Nana,ers in the U.K. Survey••
• . .Last complete Financial ear fall
Gross Salabracket
Over £15,000 p.a.
Between £12,500 and £159000 p.a. 2
Between £10,000 and. £12,500 p.a. 5
Between £7,500 and E10 9000 p.a. 15
Between £5,000 and 07,500 p.a. 37
Between £39500 and £5,000 p.a. 22
Between £2,500 and £3,500 p.a. 6
Below £2,500 p.a.
All Survey Asst.Managers Senior Managers
Total
ManagersNo.
6.
No.
98 8
No. ° 0/
7
2 2
13 14
33 37
21 23
5
,0 loo
Over a third (37%)- of the Senior Survey Managers stated that their
gross salary in 1976/77 came somewhere within £59000 to £7,500 bracket.
Less than a tenth (V) reported a gross salary in excess of £15,000 p.a.
At the other end of the salary range five managers reported a gross salary
of less than E2,500 p.a. Factors likely to influence the level of gross
salary wo-uld obviously include the responsibility carried by individual
managers of differently sized businesses, the extent of other (non'-cash
elements) of the rewards and. the hours of work. Some of these 'other'
aspects are the subject of comment in the following paragraphs.
Age of expected retirement and pension arrangements affect- this
general (overall) picture of the 'sticks' and. 'caxrots' associated with
different occupations. Most managers (74%) reported 65 years es being the
expected retirement age, but 10/ were:unsure of the exact age. "Have not
considered this" or 'Tot specified" are examples of the vagaeness,, perhaps
deliberate, of a proportion of the responses. Pension arrangements of some
kind, were reported by the large majority (84%) of survey managers. Amongst
the various schemes described,, the following figured most favourably:
Top Hat, N.F.U. Mutual Life Assurance and. Superannuation Scheme -.often
linked with the corresponding Agricultural Organisation Society according
to region (60 g. S .A. O. S" W.11.0. S. ) . Some managers pension arrangements
were also linked with their own (privately orgeanised.) insurances but with
:their co-operative paying (typically 5% of gross salaxy). The levels of
pension most frequently stated amounted to two-thirds of final salary but,
as is well known, individual pension arrangements vary widely 7 in terms
of employer/employee contributions as well as in type of benefit accruing.
••••
26
Period of notice to be given by the Survey Managers varied from one to
six months. Two managers reported that they slid not _know what period of
notice was expected of them. "Contract still awaited!" was the response
from one senior manager who had been with his co-operative for three years.
"At my own discretion" was the reply given by an already elderly manager of
a relatively small co-operative. The most frequently stated period of
notice was three months - reported by 40ro of the survey managers. Those
managers required to give (and to be given) .as much as six months' notice
or more accounted for 2% of the total.. A further 9'-/ reported an expected
period of notice as not having been actually defined in writing.
Holiday entitlements were varied in extent and type of arrangements.
The bulk (59%) of managers reported an =1 holiday of four weeks,
compared to the three weeks allotted to over a fifth (22%) and the five to
six weeks reported by nearly a tenth (v). Four managers stated that their
co-operative had not specified any partidoular holiday entitlement.
The various other elements of =numeration (mostly the non-cash
of fringe-benefits) enjoyed by survey managers are summarised below:
Numbpr of e of 'fringe-benefit' en,ired Senior Manv:ers (17,91)
1. Free (or assisted) housing
2. Provision of car 65
3. Car running costs (in whole or in part) 81
4. Life insurance 575. - Discount purchases 436. Luncheon vouchers
7. Others 10
8
71
8963
47
11
It can be seen that a large proportion (89/i) of the survey managers
(chief executives) had their car running costs paid either wholly or in
part. Nearly three-quarters of them stated that they were provided with a
car. The additional benefit of life assurance (reported by 63%) was
frequently closely bound up with their s pension arrangements.
Discount purchases (most frequently quoted as 20% off) were also available
for nearly half of the managers. Luncheon vouchers figured hardly at all,
being mentioned by only four respondents. Free or assisted housing was
also only infrequently (V) cited - mostly in the form of low interest-rate
loans for assisting with house purchase. One manager explained that he
had "free life rental for himself or wife". In addition the miscellaneous
"other category of fringe benefits was used by a few respondents (10,1 to
include sickness schemes ( e . g. B.U. ) , reimbursement of home telephone bills
(either wholly or in part), out-of-pocket expenses, low price canteen lunches
and even help towards Men's Club subscriptions. No attempt was made to place
a money value on these benefits.
- 27 -
, ..-
IV. JOB EVALUATION*
-.. SuX.v.ey managers were invited (Section 5) to explain what they liked
about their jobs and. especially what- (if anything) they *found, particularly
interesting and rewarding. . ,Before assessing these replies one needs to
bear in mind the bias likely -to -characterise answers to such questions.
pcholars, in the U.S.A. and elsewhere have confirraed what many would have
expected - that "people .commonly feel some pressure to find something
positive, to .sa,y.about social,,axrangements..in which they are implicated and
indeed to which they have boranitments".(10). In short it will be as well
to- remember, that. the survey managers .7 particularly the older and more•
established, 'may tend to see theirS careers as their "personal destinies"
and to make the best of their current posts - without necestha.i.ily believing
that they fit closely into them.- The three most frequently mentioned
'reward aspects' were:
(1) those concerned with the freedom to act,
(2) those concerned with the variety of tasks involved., •
(3) those concerned with :the satisfaction of being successful
in developing and improving., members' interest.
, A summary of the full range of replies is contained in Lpperiii± C
Table 11. Typical of the emphasis on the 'freedom of action' type of
satisfaction are the following 'comments:-
"The freedom of action it offers when compared to a large bureaucratic
company. • .Only the general: policies are..contro13.ed by. the Board and
I have some influence there also".
"The freedom I am given in my, job"
"Almost entirely in control of one's destiny."
"Being entirely responsible for the successful running of the
enterprise with the Board"
• "The freedom to run the" business as -if it was my own and the changing
nature of the work". .
On job variety they say:-
"Challenge of an ever changing situation"
"Size, scope, diversification etc."
"The wide range of contacts - growers, staff, wholesalers, supermarkets
and general trade contacts".
"Variety of commodities/the agricultural connection"
"Complexity of the business brings considerable variety td1 my work"
28..-
"A good mixture of business and dif.f.Qrent business people"
"Me continual variation presented by varying throughput".•.•
On the sense of satisfaction in getting and seeing results, in moving
towards their co-operative' s objectives:
"Building a successful team; managing a successful co-operatiiie,providing a useful service to members"
"Mainly satisfaction of being able to satisfy growers in growing,•producing and marketing a given crop"
e"Satisfaction in creating an environment in which people 'con*bemotivated, developed tandaan.succeed"
"Correctly judging 'the vital factor of correct time Of marketing;successfully developing a. management team; .making money, outof seasonally spare facilities"
•
"Sales and profitability - service offered to members"
Question 5b asked survey managers what they regarded as the most 'demanding
aspect of their job. Once more it will be as well to bear in rind the
findings of other investigators in this fi4d. There is a good deal of
agreement that "causes of dissatisfaction are gore apt to be concentrated on(
factors in the work environment" ii). Large organisations, after all, provide
plenty of evidence for the delays and diffusiveness inevitable in a
bureaucratic structure and thus allow employees to protect their elf-esteem
by attributing the causes of particular problems and difficulties to factors
other than themselves.
the
A number of points emerge. The most frequently mentioned areas which
111 • • ers found demanding were:
(1) various problems attributed (rightly or ,ronly)' to tile co-operativeform of the organisation;
(2) personnel and industrial relations matters;
(3) the increasing extent and complexity Of U.K. and E.E.C.regulations;
(4) cash flow, coping with inflation and. financial problems generally;
(5) trading and having to adjust to sharply fluctuating markets.
For some managers however, it wasn't so much the co-opera#ve form of
organisation that came first to mind when they responded to question 5b, but
as one of them put it "People": Others elaborated on the sane theme:
"Currently the most demanding aspect is fitting roundpins into
round holes"
"Man-management'.
- 29 -
"Personnel selection, motivation of people, staff as well as customers"
"Ensuring middle-management work together as a team"
"Staff relationdhips at senior and middle levels and delegatingas fully as possible to them"
"Personnel management"
"Industrial Relations"
Having a 'go' at the bureaucrats is of course a familiar way of
"letting off steam". To judge from some comments however there may be
more than the 'safety-valve' aspect involved. One instinctively feels
for those respondents who replied thus to Question 5b:-
"Keeping myself up-to-date with new legal matters such, as transportlaw, Employments Acts, Weights and Measures, Consumer Protection,Health, Fire etc."
"Keeping abreast with Government Regulations"
"Uncertainty when planning, trading, pricing etc. due to Govermentand E.E.C."
"Legislation on employment and Industrial Relations"
"ilardnistration and legal formalities"
The problems of financial management during a period of rapid
inflation were also a source of frequent comment:
"Cash flow"
"Financial control and planning"
"Control of cash and striving for efficiency whilst having to acceptthe constraints on the agricultural supply 'industry"
"Accounts"
"Periodical accounts and the financial year end"
"Production Balance Sheets"
"Credit Control"
"Keeping pace with inflation; cash flow projection/control-margins"
It is interesting, if somewhat =scientific, to compare these responses
with the findings from other similar investigations. The comparison is
admittedly a crude, one for like is definitely not compared with like. The
investigation by Dr. Sofer has already been mentioned.(5) Broadly speaking,
- *30 -
the responses of• Dr. Soler' s managers were similar to those of agricultural
co-operative managers with respect to those aspects of their jobs which they
found most rewarding and interesting. The main points, (of freedom, of
total responsibility, of..challenge etc.) seem to be common to both
investigations. "Problems in colleague relations" were in fact mentioned
in both investigations - a predictable enough comment in any organisation
where large numbers of human-beings are involved. Dr. Sofer's respondents
however had a pattern of dislikes in relation to their job which only barely
resembled the responses of agricultural co-operative managers.
"Routinization of job", "lack of variety","inability to get job done",
"excess number of persons at own level" were rarely mentioned by the
co-operative survey managers.
Some evidence that a number of managers believed that the most demanding
aspects of their job could be attributed to the essentially 'co-operative'
form of their business orgrinisation may be seen from the following selection
of verbatim replies:
"Constant communication of the principles of co-operation"
"The non-co-operation of members - everyone's price is lower than
ours according to our salesmen"
"The large number and frequent meetings that a co-op seems to have"
"Convincing Board and. members of the need to run a society on
commercial lines even though a co-op"
"The restrictions of the co-operative ideology that the profit
motive is alright for the members but not for the co-operative"
A further question (c,5e) was directed towards identifying characteristics
which may distinguish co-,operative management from the management of other
businesses. Over half (5%) ,.of the sample stated. that they did not
believe there were substantial differences. The full list of responses
has been set out in Appendix I. Even a cursory examination would reveal
the great preponderance of comments on the theme (with variations) of
flour suppliers/our customers are also .our members/our. shareholders".
A selection of replies to this effect is set out below:-
nocietybppber .relationship is unique (or should be)"
"Co-operatives are weak sellers and do not appreciate marketing
techniques as a,private company does"
."Dealing -with member/suppliers"
"Each member does at times consider himself to be employer"•
- 31 -
The indivic1i,n,1 farmer as a shareholder feels he has the absolute
right to personal'access to the G.M." General Manager)
"There are, at times restrictions Which inhibit commercial
development, particularly in regard to one corr5tment to
members and their lack of commitment to the Society"
"Being answerable to 'X' number of members rather than vrt number ofshareholders requires greater concentration and leads to far greater
involvement in individual, personal and business problems. This
commitment leads to greater heart-ache in different trading tines"
Question 50 listed a number of detailed aspects of job characteristics
(e.g. pay, promotion prospects, status" etc.) and asked managers to state how
far they were satisfied with these aspects of their present posts. The
replies have been summarised in the table below:-
Summary of replies to Question 50
Extent of managers satisfaction with their s ob's characteristics #N100)
Job Characteristic Satisfied Moderately' Not NotSatisfied Satisfied laiswered
The kind of Work done 88 10 , - 2
The rewards (monetary & non-monetary) 42 48
The job security offered 64 28 3
The freedom in decision-making 89 9 1
Working relations with subordinates 87 13 - -
The job's status 75 20 3 2
Promotion prospects outside & insideco...operatives)
49 26 9 16
Professional contacts 45. 34 18 3(between co-operative)(managers)
Contact with Board Chairman 90 - 7 2 1
Contact with other Board members 82 13 4 1
Contact with ordinary* members 59 29 11 , 1
The pattern of these responses is interesting. Taken at face value
the replies suggest that whereas the bulk (88%) were quite satisfied with
the kind of work they did they were far from satisfied with their rewards.
Over half (570/3) of the respondents stated that they were either not at allsatisfied (9%) or only moderately satisfied (48%) with their total
emoluments
(including non-opnetary benefits). The 'rewards' element of the total job
characteristics was in fact the element which had. the lowest proportion of
'satisfied' responses. Does this mean that there is still substance in the
32
often heard observation that co-operative mangers are underpaid - bearing
in mind their responsibilities and what their counterparts might earn in
similar jobs outside (i.e. in non-co-operative businesses)? Clearly, more
facts are needed and more thought given to this. question. About the most
that can be said is that in the evidenae collected, there would seem to be
cause for concern on this aspect.
Another item of interest in the general 'satisfaction' picture is the
relatively poor picture of the promotion prospects of co-operative managers.
Less than half (49/0) replied that they were satisfied with this aspect of
their job. It is also interesting to note that the incidence of 'not
answered' was the largest for this particular question - no less than 13%
failed to respond - though wha, this was so, can only be conjectured.
The need for more professional contacts between the managers of
agricultural co-operatives would also seem to cause concern. Less than
half (45%) reported that they were satisfied with this aspect. Indeed it
was the professional contacts element of the answers to 0Aestion 5c that
recorded the highest proportion (1 %) of 'not satisfied' responses. Again,
this finding prompts further questions about the significance of this
particular source of dissatisfaction and about how far existing institutions
may wish (and. be suitable) to cope with any adjustments that may be
proposed.
On a more positive note it is equally relevant and interesting to
note the areas of satisfaction reported by the survey ...zero. Contact
with Board Chairmen, and with other Board members seemed reasonably
satisfactory - WA and 82% respectively being the proportion of respondents
indicating that this was so. So too was the 'freedom in decision racking'
and 'working relations with subordinates', each of which was 'sported by
nearly 90,4 of respondents as satisfactory.
- 33 -
V. RECRUITMENT
The recruitment techniques used by business organisations in looking
for potential managers are one of several factors likely to influence the
quality of that management. L. variety of more or less formal recruitment
methods may be employed - newspaper advertisements, recruiting campaigns -
including the annual 'milk rounds' of personnel officers to universities.
Short term courses and/or temporary posts are sometimes given in order to
provide potential applicants with a more authentic picture of the employing
organisation. • Research, even, is sometimes conducted into the career
pre-occupations of potential graduates so that recruiting strategies can
take account of these.(5)
It was with questions of this kind in mind. that Section 7 of the
questionnaire was designed - to help to'throw light on managerial
recruitment methods used in British agricultural co-operatives in the
mid. 19701s. Respondents were first of all asked (Question 7a) how they
had. first heard about their present job. It was clear from the responses
that two main sources predominated - advertieemept was mentioned by 4531,
and just under a third (30 stated that they had learned informally - by
word of mouth). Only 4% had been informed by a professional association
and only 9% had. heard. from more than source.
In Question 7b the focus was switched away from the responding manager
to the recruitment methods of his particular co-operative. Once more,
advertisement had pride of place - mentioned by well over a third (37:;C) of
the replies, though nearly as many (34'/) stated that their organisation
made use of more than one raethod. Professional associations, employment
agencies, Agricultural Organisation Societies (A.O.Sts) scarcely got a
mention.
Job applicants usually have to provide detailed information on such
matters as educational qualifications, past occupations, general experience
etc.. Question 7c was designed to throw light on what importance each
co-operative gave to these various aspects of an applicant's curriculum
vitae. Respondents were invited to state what weight their organisation
gave to each of the eight factors listed below:
-34-
Job credential. factors (N.100I IL 4
° Weigiti
yea Moderzkt4y NotImportant c22.3 tan Unimportant Answered
University qualifications 3 35 46 16
IA! level passes in GCE subjects 7 53 24 16
Technical qualifications 33 45 - 5 17(e.g. AccountaziKw) • ' ,
In post training (in agricu3.tural 14 55 . 17 . 14co-operatives)
T.,
Previous experience in the 24 18 14co-operative concerned
Previous experience in the agric- 14 35 3..4 17ultural co-operative movement
Previous experience in the 8 25 46 21
co-operative movement generally
Previous experience in non- 14 32 35. 19co-operative businesses
As might be expected, the factor most frequently (44%) judged 'very
important' was the applicant previous experience in the particular
co-operative doing the recruiting. Somewhat surprisingly, nearly a fifth
(18%) thought this particular factor to be 'unimportant', whilst about a
quarter (24%) put it into the 'moderately impotant' category. Only 3/
of the survey managers thought university qualifications to be 'very
important'; nearly half (46/3) deemed them 'unimportant' whilst just over
a third (35%) gave them the 'moderately important' label. 'At level passes
in GCE subjects, however, were thought to be 'moderately important' by well
over half (53%) and approximately the same proportion (55,) gave the same
weighting to 'in post' training in agricultural co-operative societies.
Experience in the co-operative movement generally was rated as 'unimportant'
by nearly half (40 of the respondents. 14.kewise, neither experience in
the agricultural co-operative movement nor in non-co-operative businesses
was thought to be very significant - in each case over a third (34% and
35% respectively) of survey rangers assessed them as portant'.
The relatively high proportion of 'no answers to these questions (e.g. nearly
a fifth of the sample did not answer Question 7c(v) is interesting and
makes one even more apprehensive than usual about the postal-questionnaire
method of collecting data. Why should there be an unusually high
non-response to this particular part of the questionnaire? Were the
questions (7c (i) to (v)) unusually obscure, tactless or in some way
inappropriately worded? To what extent might the failure to answer this
type of question be said to reflect a greater degree of underlying
uncertainty about the recruitment policies and techniques of some British
agricultural co-operatives.
- 35 -r•
question 7d: Was about the -existence of olicies. It will
be immediately *apparent from the summary 'oft replies in Appendix that
less than a fifth of the survey managers stated .- that these organisations
aid in fact have a definite recruitment policy. Moreover, of those
organisations that did„ a number of the replies seemed con6erifiee, to stress
how recentlz this had been adopted: The response "Only recently - impending
retirement of senior staff has led to the (L?aw.i...ng up of a manozement tree and
policy of recruitment" may be taken as representative of the "only recently"
type of reply.
Whilst one would expect recruitment policies to vary tom certain
extent between different types and 'sizes of aEsTicultural co-operatives,
one must note that a farther 'ohathacteristic of the 'repliesin Appendix 3,
is the emphasis On recruitment from H-1,-,Nitv.the •cooperative 'rather than
• from otli3r;ifie. "First choice to present; btoff, attention to in-society
trainiiig" and "To 'promote from - within if possible" 6.re illustintions of
-- this fairly predictable 'kind of itespOxise.;.. One or two*:stressed the
aczani.n9.9s of recruitment and 'training schemes,‘-pr-a.rticula,rly for the
smaller businesses - as e. xemplified' by •the reply "NO:..---althoupt. I on in
-favour, • we are numerically small. and costs are tightly Controlled..
training scheme would add significantly to cover costs".
There seem to be, in general terms, two main and contrasting
recruitment policies. At one extreme there is the "coarse-mesh" approach
whereby a relatively laige thariber of reOru.its are taken on, it being well
understood that a substantial proportion may 'leave after' six months or so -
*a policy that has been described as really-item -extended selection procedure".
At the -other extreme, how-ever ,there is the policy best perhaps described by
one of the managers .who wrote - "The Company. structu're is planned to allow
young staff to ultimately aspire to' manadement. Great care is token with
initial selection 'with usually an ultimate job in mind. We always place
character ahead of qualifications. 'Such people mainly -iespond in the
right manner and invariably are very loyal". Recruitment pblicies of this
kind it seems El...re' often' designed- on the basis of the initial phase of
employment being seen as a training period. Both types of policy however
have their weaknesses. The 'coarse-mesh' approach runs the risk of incurring
a reputation for "indifference to individuals and ruthless discrimination".
The more detailed selection type of policythowever, comits the co-operative .
to the formal selection procedure and has been associated with complaints
from employees that they had. been misled into thinking that their prospects
were better than they in fact turned out to be. This may well of course
be something of a dilemma inherent in any recruiting process. On the other
-36—
hand, it is clearly understandable that whilst those doing the recruiting
are not deliberately setting out to mislead potential recruits, they ra.ay
well nevertheless be unconsciously over-enthusiastic in their estimate of
likely future prospects - the more so when they are competing for the
available talent with other potential. employees. On the other hand, thq
potential recruit cannot always be said to be free from bias. As Sofer
has observed "A prospective recruit who is half-way to accepting an offer
is no doubt prone to emphasise or select out the more attractive items of
information available to him. In this way it is perfectly possib/e for
an unwitting collusion to ensue which can result in too high a proportion
of new recruits assuming that they carry senior managers' pens in their
5)breast prockets".(
• Closely related to an organisation's recruitment policies are its
management development policies. These are essentially concerned with the
obvious need to keep existing posts manned by persons competent to discharge
their particular responsibilities - a formalising of something that must have
wasted for decades before the phrases 'management development'. or
"management succession" acquired their current modishness. question 7e
invited respondents to state whether or not their co-operative had a
management development policy and if so, to provide details of that policy.
The views of some of the survey managers on 'management development'
are contained in Appendix K. In broad terms under a third (29;/)) of the
survey co-operatives were reported as having a 'definite management
development policy' .* The comments contained in Appendix K shows that no
particular type of policy (or attitude) seemed to predominate. Lnswers
varied from the curt 'not applicable' through the hopeful 'my intention is
to start one' to the detailed and specific 'Identifications by annual
personal review. Manpower plan. Individual programed training'.
One or two replies stressed the difficulty of having management development
policies in small organisations - "In a comparatively small organisation
it is difficult to keep bright young people as managerial progress has to
stop". Some of the replies seemed to refleet a certain amount of cyn.j.cism
on this subject. One of the assistant manneerd for example, wrote
fie Valmallsimmem....0.1.111•100.M.1.....0011110.411.111M.M11011•1010.1.
* The proportion of those co-operatives reported to have a definite
director development policy was even smaller - only 13% of the sample
. answered • affirmatively.
- 37 -
"We have stated .that we have a development policy. In MY experience this
is not so". Furthermore . one chief executive responded by acimittia.3 that
his organisationi.s .tanagement development policy ,was "under -positive
appraisal following new u. gement team appointment". Several„ of the
--responses however did reveal a more positive and. constructive attitude
towards management development - exemplified by the reply "It is policy
for each director to evaluate ,the .develOpment needs. of his managers and
discuss applicable training within the Society. More work is now being
.done on merit appraisal and succession planning". Reference was also made
to outside agencies and courses - amongst them trade oreaziisations' and
manufacturers' training courses; the 'Training Board. arid ROAN, Central
Council and .11..C.M.' were also vdted. .One reply referred to employment
in other co-operatives as being part of their management development
policies - 'Trainees would spend Um/three years working with other agricultura;
co-operatives in this country after completing initial training period
here.
In evaluating the various replies to Question 7e it will be as well to
recall that respondents may, inevitably, be 'captives of their own history' -
largely influenced that is to say, by what has gone on before and.
particularly by what is still most vivid in their memories. It may
well be prudent sometimes, for example, (especially where a number of
senior posts have recently been filled by outsiders), to "sacrifice a little
efficiency" by appointing an internal candidate who is not necessarily the
best person available. Such a loss of one kind of efficiency may be more
than offset by the gain in morale arising from assuring colleagues that the
policy of promoting from within wherever possible has not been abandoned
altogether.
Recruitment and development policies for managers are of course
personnel problems about which a great deal of knowledge and professional
skill is available nowadays. Indeed, fifteen years ago (1963) the Wells
Report(12)
on recruitment and training of managers in retail (consumers')
co-operatives drew attention to the necessity (especially for the larger
societies) of employing specialists in the various aspects of personnel
work (e.g. selection, training, industrial relations etc.). One of the
findings of the Wells enquiry was - "Co-operative Societies, unlike their
competitors, are loath to use such specialists. We recommend that all
but the smallest societies should consider not whether they can afford a
personnel officer, but rather whether they can afford not to employ one".
- 38 -
Such a recommendation however seems either not to have reached, or persuaded,
the management of agricultural co-operatives in this country. Over 9W
of those in the• survey were reported as not employing a specialist personnel
officer. Nearly a third of those responding (307) stated that this
question was not applicable to their societies. Just over a further third
explained that the personnel function was discharged by the Chief Ex. ecutive
acting either alone or with appropriate departmental heads. The remainder
of the replies revealed various permutations of accountant/secretary/
departmental head and other officials as discharging the personnel function
in their co-operative.
The final question in the recruitment section was concerned, with
establishing the views of managers on career publicity for agricultural
co-operatives. The actual wording of the Caestion (7h) was "Do you
believe that managerial careers in agriculture co-operatives need more or
different publicity than they currently receive?". If yes, please supply
brief details (e.g. more informative booklets or more effective contacts with
placement agencies and the like). The answers to this question are
summarised in Appendix L. The responses were almost equally divided.
Nearly half (4M) thought that managerial careers in agricultural
co-operatives did. need more or different publicity. Seven respondents
did not complete this part of the questionnaire - leaving a remainder
of 45% who did not believe that either more or different publicity was
needed. Amongst the variety of answers summarised in Appendix L, two main
categories of response predominate - viz those concerned with establishing
better contacts with agricultural education and training agencies, and
secondly those answers stressing the need for a greater volume of
publicity.
Illustrative of answers in the first category are "Agricultural
educational establishments are found wanting", "In particular, better
contacts with potential managers - universities/schools"
"More contact with colleges, universities, schools, etc."
"Literature and contacts with educational and training bodies, placement
agencies etc."
"1 would have thought very few Careers Masters at schools could lay their
hands on any document showing a career structure on this field or the steps
a school leaver should take to equip himself for it"
"Under C.C.A.H.C...a small 'cadre' should ye put in orbit'. The wholesale
Federation is developing a scheme for narket salesmen - a sini lair approach
should be made by C.C.A.H.C.".
39
"Throughout colleges and. universities (even secondary schools
"More contact in management training and. universities".
A number of the 'survey managers were, as already stated, more concerned
with promoting a greater flow of publicity. Typical of this kind of
response were:
"Better facilities for training by people who 'mow what they are talking
about! If co-operatives had more publicity, they would. tend. to attract
more interest from potential managers"
"The attitude of co-operative boards and. the movement generally to
professional management has changed. dramatically in recent years and. this
desirable change is not sufficiently publicised"
".A more definite evaluation of what co-operatives are and do so that all
agencies are aware of what the position offered means and development
prospects" (sic)
"No more in Agricultural Co-operatives than in private companies in the
sane trade or business. All managerial careers need more publicity"
"'What is required is more or different publicity on what is an agricultural
Co-operative and its objectives - if they show the correct attitude to
development then the best men will be attracted"
"Wider advertising of opportunities"
"More information, wider publicity, circulation of job opportunity within
agricultural co-operative movement"
"Many societies advertise too locally and too modestly"
Finally, although Question 7h was primarily concerned with respondent's
views on the question of more and/or different career publicity., a certain
section of the respondents took the opportunity once more of repeating their
opinions about the basic similarity existing between co-operatives and
other forms of business organisations. The following quotes exemplify
this approach -
"As 9T/ of the trade of many large co-operatives is now transacted. under
'non-bonus terms', management of these co-operatives differ very little
from the private sector"
"Management should be recruited in the same fashion as private and public
companies. Too often the co-operative recruitment style end media
reflects the old 'cheap-jack' image"
- 40 -
"We can't understand why it should be suggested that they need any publicity"
"Why distinguish agric-co-operatives from other businesses particularly in
agriculture? - same understanding of farmers is necessary"
"Why differentiate? - still operating a business"
- 41 -
I. SUMMAR'Y AND IMPLICATIONS FOR THE FUTURE
Traini
The managers of British agricultural co-operatives are predominantly
the product either of grannar or public schools and only a minority are
university graduates. Well over half of them were appointed to their first
managerial post when under 30 years of age. A fair proportion did not
believe that the management of co-operatives called foz. substantially
different training necessitated by the co-operative form of the business.
About a quarter had in fact received at least a part of their training with
firms whose managerial training courses enjoyed a national reputation.
Nearly two-thirds however had not undergone any recent extension or up-dating
of their training.
Of the agencies providing further training the Central Council
(C.C.A.H.C.) was the most frequently mentioned - with the agricultural
training board (A.T.B.) and a northern business school also receiving mention.
The majority of survey managers were involved., inter anal in giving
managerial training to others - albeit on an informal basis and mostly to
their own employees.
The most frequently identified management training needs centred around
four main aspects viz (1) personnel and industrial relations, (2) the
increasing extent and complexity of U.K. and E.E.C. regulations,
(3) financial expertise - particularly that needed to deal with the cash-flow
problems associated with rapid inflation, (4) certain problems alleged to
arise out of the co-operative form of the business organisation - in
particular the difficulties associated with the 'unique' member/customer/
supplier/shareholder relationships found in farmers' co-operatives.
Recruitment
• Formal management recruitment policies are the exception rather than
the rule in British agricultural co-operatives - less than a third of the
managers reported the existence of definite recruitment policies in their
own organisation. Moreover, very few agricultural co-operatives in this
country employ a specialist personnel officer. About half of the
respondents thought there was a need for more and/or different publicity
about managerial careers in the cooperatives. Nary managers urged.
that more and better contacts be established with schools, universities, ,
and training agencies (curiously no mention was imde. of .the„ -
pamphlet 1.1A Career in Agricultural Co-operati on"). The particular skills
- 42 -
•••
and talents to be recruited included professional (financial and technical)
qualifications with accountancy frequently being eiaphasised. Previous
experience of the co-operative form of business was not rated very highly
nor were general university qualifications.
The Pature
Clearly, the U.K.. agricultural co-operative movement encompasses a wide
variety of businesses in terms of size, type of .activity, management style,
etc.. A 'blanket' set of comments and recommendations equally, applicable
to all farm co-operatives is therefore entirely inappropriate. The
following should be seen as suggestions only - for consideration in the
light of the particular 'local' circumstances of individual co-operatives
and their managers. Obviously some of the suggestions will apply with
particular force to some co-operatives but ma5, be totally inapplicable to
others.
One of the unresolved issues which seems worth commenting on from the
outset is the question of how far the co-operative form of business
organisation .is fundamentally different from other businesses, private or
public. There would appear to be, at first sight, considerable differences
of opinion in this matter among the survey managers. The Barker Report on
contract farming revealed eimilar difficulties.* After listing some points
of similarity as well as of difference the report stated "Considering the
fairly rigid principles under which the agricultural co-operatives have
evolved, it is perhaps surprising that there is no generally agreed definition
for such associations" and concluded that "Agricultural co-operative is thus
a term of art rather than of exact science".
Difficulties over definitional matters may, however, only be symptomatic
of more deep-seated ambiguities. Many of the survey managers would clearly,
for example, have little or no difficulty in agreeing with the assertion that
"The growth of co-operatives like that of any organisation, depends on their
ability to attract resources (i.e. people and capital) unto themselves and
away from competing forms of organisation". Other commentators, however,
draw attention to the difficulty that co-operatives often find in
attracting 'outside' capital in the form of loans or debentures. The
Barker Report was concerned to stress the difference between co-operative
and non-co-operative businesses in this matter of investment. Thus
* Barker, Sir. James (Chairman) Report of the Committee of Inquiry onContract Farming. H.M.S.0. MID No, 5099 1972
43
"This difference in objectives is fundamental and. has had many important
consequences. In particular it has meant that capital accumulation has been
more difficult for co-operatives than for their commercial counterparts - since
members are naturally unwilling to accept low returns on capital which they
are free to withdraw and invest elsewhere, and there is no incentive for
non-members to invest at all (even if this was allowed under the rules)".
Clearly then, opinion is divided on whether co-operatives are or are not
significantly different in some respects when compared to other forms of
business organisation. A movement which is, in itself divided about such
fundamental matters as the sources of its capital, the objectives underlying
the management of its capital, as well as about the rewards proper to the
investment of that capital may not have as much career appeal to ,the nation's
top managers as those sectors where such views do not predominate. In other
words, one is entitled in the circumstances, to question how far 'the
fundamental difference in objectives!. stressed by the Barker Report*, may be
influencing the type and quality of managerial recruits contemplating a career
in the agricultural co-operative movement..
To what extent, if at all, the future will see some kind of reconciliation
between these conflicting views, what form that reconciliation is likely to
take (and when) are of course difficult questions. The sample of survey
managers is ac3nittedly only partial and moreover is biassed in the sense of
containing more of the larger co-operatives than of the small. It would
appear likely, however, that in the future, most of the larger agricultural
co-operatives will be managed by people, who are less and less different
(in training, in experience, and. in objectives) from their counterparts in
private industry. Indeed some might say that this trend has. already started
and moreover that it was more or less inevitable. For, as the Barker Report
states: "Co-operative businesses owned by farmers have of course, the same
job to do as private or public concerns which break bulk when supplying farm
inputs and create bulk when channelling output to the end use. They must do
it as well as - or better than - their rivals if they are to retain the
support of members".**
* Barker Report op cit para 29 p.11
4* Barker Report op cit para 28 p.10
-44 -
Bea orinendati
High priority needs to be given to the career image of the
agricultural co-operative movement in this country. There would appear
to be considerable ignorance about the scope and challenge which the movement
already has for the skilled, experienced and ambitious manager. True,
• there are few businesses comparable in size to the national and multi-national
companies whose names are household words. Nevertheless the movement does
contain within it some substantial firms - large and varied enough to have
begun attracting exeautives away from the big national companies, and
furthermore paying salaries of £15,000 p. a. and over (for some top executives
in 1976/77). Moreover, increasing. Use is being made of the 'Executive
Director' type of appointment. In these and in other ways the agricultural
co-operative movement is changing and changing dramatically. Paradoxically
however, the old image of 'coops' as being somehow below 'par' in the
business, ,efficiency league still seems to linger on notwithstanding these
changes. More and better publicity is needed 'to put the record straight.
In view of. the costliness of effective publicity campaigns these days, any
action would almost certainly have to be joint, action. Joint action however
is surely perfectly feasible. The history of the co-operative movement is
indeed self-evidently an account of joint action be it by consumers or
producers. There is much to be gained by the co-operative movement making
itself heard - accurately and authoritatively. So long as outsiders
(including potential managerial recruits) remain in ignorance of such matters
as the record of co-operative growth, of the varying and extensive
responsibilities given to co-operative managers at relatively early ages,
then for so long will the old-fashioned image of co-operatives drag on.
Carefully planned publicity could draw attention to many features of the
movement likely to appeal to people of top class managerial calibre -
including the fact that it is far from being provincial or unduly inbred.
Agricultural co-operatives are part of a European and indeed world-wide
movement. The availability of inter-co-operative transfers as a form of
promotion is just one aspect of the movement's wide geographic coverage
that is likely to appeal to potential recruits.
At the heart of all the various nostrums prescribed by critics
(within the movement as well as outside) there is widespread concern about
two key factors - quality of management and availability of finance. These
two are indissolubly linked - for the future development of farm
co-operatives clearly rests on improved access to finance - and that in
turn rests on the existence of good management. There are few natters
45
more likely to constrain lending institutions than a 'borrower's reputation'
(albeit a largely undeserved one) for indifferent or sub-standard managerial
ability. There is more than a grain of tru.th in the view that "with good.
management many of the financial problems would be no longer so acute".
If these recommendations are accepted however, there still remains the
important question of how best to implement them. Some form of permanent
rather than lad hoc' body is needed. A newly formed organisation clearly
constituted's° as to be responsible (and. seen by title and terms of reference
to be so) for the recruitment and training of managers is therefore recommended.
Such a body could be the joint enterprise and responsibility of three main
groups, viz. - representatives of agricultural co-operative businesses,
central co-operative agencies, educational training institutions. The
underlying .notion is that there are already in existence a number of different
organisations who have in part the skills and experience likely to be needed.
The co-operative businesses themselves are a most important element though
care would be needed to have adequate representation of the different types
and scales of business involved. Central co-operative agencies (e.g.
C.C.A.H.C., A.C.1V1.11., etc.) would also have much to offer in the light of
their particular - responsibilities and experience. Management training
institutions (including Business Schools) are now well established in this
country and. together with the training boards and more specifically
co-operative. educational institutions (e.g. the Co-operative ColloGet
Loughborough) could be expected to make a major contribution. What is at
present lacking and. badly needed is the co-ordination of these various agencies.
The primary task of the tri-partite organisation outlined above would be to
do just that.
The main burden of this report's recommendations therefore is that
there should be more joint action amongst Britain's agricultural co-operatives
and that this joint action should be chiefly concerned with achieving
three objectives viz.:-
1. The design and propagation of effective publicity about the facts,
objectives and development of agricultural co-operative businesses
in the U.K. and in. Europe.
2. The pooling of experience, ideas, personnel and finance etc., so as
to further the provision of appropriate training facilities for
co-operative managers.
3. The establishment of a permanent tri-partite organisation to be
responsible for the provision of managerial training geared to the
needs of agricultural co-operatives.
- 46 -
• •
1. LINLITHGOW COMMITTEE
REFERENCES
2. BERLEW, D.E. & HALL, D.T.
MORSE, N.C.
N.E.D.C.
SOPER, C.
Final Report. Departmental Committeeon Distrilgtion and. Prices ofAgricultural Produce. H.M.S.°. 1924
The Socialisation of Managers. Effectsof Expectation on Performance.Administrative Science QuarterlyVol. II. No. 2. September 1966
Satisfaction in the White Collar JobAnn Arbor, Michigan, 1953.
The Training of British ManagersH.M.S.O. 1972.
Men in Mid-Career C.U.P. 1970
6. CLEMTS, R.V. Managers: A study of their careers inIndustry-. Allen & Unwin 1956.
7. MORLEY, J.
8. CO-OPERATIVE UNION LTD.
9. BROWN, N. & SCASE, R.
British Agricultural Co-operativesHutchinson Benham 1975.
Co-operative Independent CommissionReport. Co-operative Union 1958.
Boards and Management in Farmers'Co-operatives. C.C.A.H.C. 1973.
10. BLAMER, R. Work satisfactions and Industrial Trendsin Modern Society. Wiley, New York, 1960.
Work and Motivation, Wiley, New York 1964.11. VROOM, V.H.
12. WELLS, P.A. Recruitment and Training for Managementin Retail Co-operative Societies(Co-operative College Paper No. 10)Co-operative Union 1963.
13. STEPHENSON T.E. Management in Co-operative SocietiesHeinemann 1963.
14. C.C.A.ii.C. Faxming Business. Lutumn. 1977
- 47 -
APPENDIX. A
CENTRAL COUNCIL FOR AGRICULTURAL,AND HORTICULTURAL CO-OPERATION
Message from Nick Guiton
301-344 Market Towers,New Covent Garden Market,I Nine Elms Lane,LONDON SW8 5Ng.
Telephone: 01-720-2144
Head of the Promotion. Development and Traininp Department
of the Central Council
This is an independent survey, carried out by Reading University,
but sponsored by the Central Council. • I want you to understand why.
Successful businesses, we all know, depend on good. management.
Agricultural co-operatives cannot therefore expect to .prosper in the
future unless they are able to recruit the best into their ranks. It
is doubtful whether some are .doing so at preseiatt • for a variety of
possible reasons. One may be that co-operatives are often local, and
may not advertise their opportunities widely. Another may .be that mawyoung men and. women, when. thinking about a career, do .not even consider
agricultural co-operatives because they know so little about them and the
career prospects they offer.
Much the same situation existed, until, recently, in the career of farm
management, until the Farm Management Association took the initiative of
• undertaking a survey. Don Mills, who helped to carry this out, seemed
the, obvious choice to undertake the present one. I would like to emphasise,
• however, that while the Central Council has been willing to sponsor it, this
is a piece of University research, of which we shall only be shown the
results - not the working papers.
I hope that managers of agricultural co-operatives throughout the
United Kingdom will be willing to collaborate with this survey, in order
to make it a success. We, for our part, will collaborate with
co-operatives and their central organisations to make good use of the
information you provide.
(Sdg.) NICK GITITON
48
Professor: R.H.Tu.ckHead. of Department
Dear Chief Executive,
DEPARTMIT OF AGRICULTORAL ECOMECCSAND MLNAGEDIENT,
UNIVERSITY OP READING,
4, Emmy GATE, WHITERNIGHTS ROAD,READING RG6 Va.
Telephone: Reading 85123
As you may know, the Central Council for Agricultural and
Horticultural Co-operation has sponsored. an investigation by this
Department which is seeking fuller information about the role and
recruitment of agricultural co-operative managers in this country.
At the moment, we have little concrete information on this ,,rucial
aspect of agricultural co-operation. It is hoped. that this survey
will provide us with a substantial amount of authentic data which in
turn-may provide a basis for future planning.
Considerable care has• been taken in the preparation of the
attached questionnaire but it is obviously difficult to design a single
form to cover the variety of circumstance contained. in the U.K. agricultural
co-operative sector as a whole. Some questions may appear obvious or
inviecessary to those of you employed in a particular aspect of this field.
Nevertheless we believe allthe answers to these questions to be useful
and. ask for your forbearance and co-operation.
• If you would be kind enough to complete the enclosed questionnaire
god return it as soon as possible (in the stamped, addressed envelope
rtovided) we would. be very grateful. Clearly the success of the scheme
depends very largely on having as many managers as possible responding
to our request. You may be sure of our awareness of the demands made
on your time and. also, of course of the strict confidentiality of your
replies. Should. you wish it, arrangements could. be made for you to
receive a copy of the final report.
Yours sincerely,
(Sgd..) F. D. MILLS
Dr. F. D. Mills
CONFIDENTIAL - 49 - CODE NO.
C OUNTY
UNIVERSITY OF READING•
DEPARTMENT OF AGRICULTURAL ECONOMICS AND MANAGEMENT
SURVEY OF AGRICULTURAL CO—OPERATIVE MANAGERS
S ECTION 1 FORMAL JOB AND PERSONAL DETAILS
(a) Formal job title (Chief Executive, General Manager?)
(1) Male/Female )) delete as appropriate
(c). Married/Single)
(d) Age eooesso.i.,s4,
(e) In addition to your managerial post do you also have a seat on the Board? .4,004141411.41
If yes, please supply brief details of date of first serving on the Board, particular
responsibilities, voting power etc.
0t141••••••••••41.4)....66,64,41..e...........40,,elpgrosseirsomoioodo
00000.0.40•004.1,...0.0*****4.404,41.rnsoirovroliosoo.04).foo.ses,vowo..•••••5•4141,141..orno•tofeseirmoolleoloo.m.olosom.
0.000•000000.4111,01110000000.4104,11001100.0000.•00004.40.0,0.000000.00000.00005011.0.w$01,0WOMOO*00000..00.00.0
S ECTION 2 EDUCATION AND EMPLOYMENT HISTORY
(a) Which type'of school(s) did you attend? (e.g. secondary modern, grammar, technical, public,
comprehensive etc.)0000000$0110000004111 1,000.1100.0000004,94.94,01,00OMO.001411000000.01.0004,11.0010401110004110400,011.04)
(b) How long have you been with your present employer? •...........................,...,.....................
(c) What other posts (if any) kave you previously held with your present employer?
otospo0000.4,rneottoeil..00**004,011,401.004,4,40M0.0.411.ositme.....olosoodirn.040.0,•046somtwe.ems0.041,64,•64,seeloosogots
(d) What kind of jobs were you doing .before coming to your present employer?
Job Description Location Duration011.11110..111411.0111•1111.111111111
*004,414,4.4000000eioitio.01041•004,004110***0 .04,4,0o4.41,004WomOolso...6400..041,0•40 40.....,....64.40411,041,0944idoosimotwomo•
0.110.00.4,04,0040.4bipM,04.04,411,4111,4.0040* 00.000.410.0000.0..00110,1.00004,0000 0.0416.1,94,4160.04.11,044,110.4,04000.000000
0000.041.0**M.04104,041,000•01100400so. oilisossessiloos.••••4041.1,0•460114110.41011 illeselisfees.orniosm.s.p.404•4..e4,4.4,0
(e)'- Age when first appointed to a managerial post
S ECTI ON 3 TRAINING
(a) What further oducation or training (formal or in post) have you had? ,
Type Where given Duration
00,001,00e000.00i0.0041100.4.1000011141000 4,100.0•004040,004.10.00111001104101110***0411 0400004100110,0004,041114000000000000.01110
00411.00604.4,1000.0410000.1010,100.00.000. 4100.00000041.0004100.00141410.00040,0 410.0•000000041•41110.0004180000004.00.
(b) To what extent (if any) was your managerial training provided as a result of being employed at the
time by other commercial organisations? (e.g. Unilever)
Brief details please
411,0rn...1..110e04,041•4141,04.04)4,40414,••••••..41.0.04.0.w..141Moasoilsoiksosooloolkoa.....4,•••••esosot000tbe,ellose...eo.o.los
0.04,040010041•041.00emosolkoirs000lloo.4.14141***04.4,"04,‘,"0.04,1,414041.4,4,....4).4...•....**.e.sib••••••••.+.6441.1.1.4,4,414.41...,.
CONFIDENTIAL
(Section 3 Trnining, continned)
(c) Is formal training for management:— Essential
Desirable Uutnot essential
(Please tick)
iiiUnnecessary Ii
(d) Do you think that the management of Co-operative Societies as such calls for particular specific
training in some respects? If yes, would you please give brief details ......................
Ositi,Wriloirollopoipolloselpoomeosoowelo.sooloofie4041.4,4te•oetwoomoilsoAtililiroodisOM000060•041Thoot1e4osisso.04141•••0
(e) Is any form'Ofjpecific training provided for the members ef your Board? ........
Cr) If you have undergone a recent extension or updating of your training give brief details
mosoottobeisoiresoolloeso41.4•4•64,414,es.e.00lpootroseoloomo••••••••••••rnelpwoosolos000mos4.4144kostoomorno..ro,
(g) Are you involved in giving Managerial training (formal or informal) to Others Within or outside your
. .co-operative? ...................................................................................
SECTION 4 JOB DESCRIADTION
(a) Irihen was your co-operative first established as a registered business? .................................
(10 Please classify your co-operative's main activities viz:- (Please tick)
Mainly manufacturing
Mainly requisites trading
Mainly marketing of produce
Multi-purpose
(c) Please give an approximate figure of the latest annual turnover of your co-operative .........A.........
(d) Please indicate approximate breakdown of your activities as a manager during an average working week
(e.g. negotiating 25% - budget projection 20 etc.) rewogoor000imossootroeswilipooloirao.000soiosooefieloolo
0000004,400,04100000000010000004,00004000..140...41.0.4,004,041414,410004101100000004110100000004.041061,000000004.000.41004.11
(e) Would you please draw a simple diagram showing the managerial hierarchy in your co-operative (i.e.
explaining numbers of subordinates, main responsibilities, to whom they are immediately responsible etc.)
• • •
r
C ONFIDENTIAL
Section 4 Job Description, continue) - 51 -
(f)
(g)
(h)
If you do not have a seat en your Board,.do you nevertheless attend its meetings?
Whether or not you attena Board meetings, do you influence the preparation of its agenda? .......
.........
Sc that a clearer idea Aay ho obtained of tar nature of your responsibilities as u manner - with
Particular reference to hew far (if at all) these are restricted y your Beard (or delegated to
subordinates), would you please indicate by an appropriately placed tick to what extent you are
responsible fort,. . (Please tick)
(1) Personnel matters (including recruitment and -
-r"""r771d:tsmise7kF";t-raff) ED
(ii) Innovations (and potential Ion; torn developcent
—•=r1Y)gen = El
(iii) CJA....tal expenditure (if there is a limit
on tiGTOPFWmditura please explain) = [:::::1
(iv) lialirs (i.e. buying and selling: ohoosing
supply sources as well as channels a distribution) ED :2]
(i) Indicate briefly the nature and frevency of your contacts in the course of business with the fol
lowing:-
Not at all
(i) The Chairman of your Board
(ii) Other Board Members 6040,41,000.000.11$8,0.44.004...***.eet40.111001.&*464,1***041,000....100**1.
4101,0041,400,1114.11.04,0.11,t
(iii) Ordinary Members of your co-oporetiv6 V*40104.1110.0401400•00111.0#.406*..11#0,04,4,4r44.10,.04
4**MOotoi#4,00**04.
SECTION 5 JOB EVALUATION(satisfnetions and dissatisfactions)
(a) What (if anything) de you find particularly interesting and rewarding about your job?
0.000.9.01•4110t..**01,000*.*00.46$.04.16aSsobieiko.tC.9,0000w4,000
.4.00.0.*Me0....041.w.e.41.04,0011141,41400 111 0400.eit0404,0
•
101100911.0********.41041.0.1444,04:0****609.0*....4.4.164,0004
0.4$0...000,04,Me.4.0.114.6e1100....40#404,04.4119000.11.1110000
(b) What do you regard as the most demanding aspect of your job?
(0)
(1)
4100.1.0600.4.0.41.000.0.090600004.6004.0441,0**..6.41.041.064
....0114.4,41#011,11.0.0111.1,10**0.004.0,0 11.04,000004101,04144
4100•11,6100000#0000f$004,040,400.4.10.0***04.,411041**,000060.11*
..4040M0,9011.10sSe.doo40+.1.00.04,f041,40#8.4..4,466#41141
Now far are you satisfied with:-
the kind of work you dc.
the rewards (monetary and non-monetary) you earn.
(iii) the security that your job offers.
(iv) the freedom you have in making decisions.
(v) working relations with subordinates.
(id) the job's status (as assessed by you).
(vii) promotion prospects (nutsido and inside co-opera-
tives).
(viii) professional contacts (tetwen all co-operative=Iowa's).
(ix) contact with the Chairran of your Board.
(x) tt
It
other Board members.
.erdinary menbers of your co-operative.
Satisfied
EJ
E2:1
Elr-71
El
El
(Please tick)
Modt=tely Not
Satisfiitd Satisfied
DO 10000D
CONFIDENTIAL Section 5 Job Evaluaticay-continind)
(d) Do you think that your role rgunisatinnnLsuperiors (i.e. in
terms of specific responsibilities, channels of communication etc?) (Please tick)
Yes No
(e)
— 52 —
riIf no please supply brief details ......................................................................
00•000,00.011.4.100,0410001,4,0411..60.4POWSOSSO041000.4141041.41100110.00..1,04,041601,4,0600.004,00.41,00.00404114.009.0,..00.0
1041i.0000000.14100.1141-4.4.00.0.46...e.4,004,41,0.4,...0.05.001100000001100.05555050000000050411.0000.041541.400115.046P 0041
Because it is a co-operative business? which you are managing, are your tasks in some ways substantially
different from from those of managers of cher forms of business organisation? (Please tick)Yes No
If yes, please supply brief details
0.000004.41100.00.0.01111.090,1,04100es00.0000Ofte..04104.4.004104410041.04.11,04.000.0.04.000000111.4110110.00..e..041,11.0114,44,.00
0040004.14.0011000W000041064I. 0011,041.1r000004.41,404.14101100000.0400004110.00,41,0000000**OtOMWW,00041041000101,0.0414,41,
000011,000,000.0000,111,411.4,004,*000..0494,0e6t24.04000.0.00$0111011*.114OMMOOOsibis0040,*.0011.04.41160.044,44,11,04.4itt.0410
SECTION 6 TERMS OF APPOINTMENT
(a) Period of notice 401100400410,04104,414.0004,
(b) Holiday entitlement .................
(c) Retirement age........,...,....,....
(d) Pension arrangements (brief details) 001100.400041*******0106.4keibOolle.041041•00110.4,60001140WW01144,1,600•4,110009
000.,04,000.000.04100410000.16.4,410411•44,..fil50*50004.1.4,1"......................."..........44,41,4040414,000M004,411004104,0000041
(e) Non-cash elements of remuneration:-
(1) Free (or assisted) housing.
(ii) Provision of car.
(iii) Car running costs in whole or in part
(iv) Life insurance '
(v) Discount purchases.
(vi) Luncheon vouchers.
(vii) Others (please specify briefly).
Cr)
(g)
(Please tick)Yes No•10111....1
The number of hours worked in an 'average' week ..............
Please indicate in which of the following income brackets your gross salary (before any deductions)fell in the last complete financial year. (Please tick)
Income Bracket A. Over £15,000 p.a. o4,011.•004400111401100
B. Between £12,500 and £15,000 p.a. ...
C. tt £10,000 ” £12,500 p.a. ...
D. n £7,500 ft £10,000 p.a. qt..
E. ” £5,000 £7,500 p.a. ...
F. “ 0,500 n £5,000 p.a. ...
G. n £2,500 n 0,501 p.a. ...
H. Below £2,500 p.a. oseolossesso•eib•ossL
CONFIDENTIA'L — 53 —(Section 6 Terms of Appointment, continued)
(h) Are you able to supplement your,,salary-Nritivintatarnett_frorrottes?(Please tick)
Yes No
If Yes, may we have brief details Please? 00414,0040•00,64141.44.4•40.W41144,00.11,641•0000000,000041.641,1141100,.41.010
SECTION 7 RECRUITMENT
(a) How did you hear about your present job?
(i) Advertisement
(ii) Informally - (word of mouth)
(iii) Employment agency
(iv) Professional association
-(Please tick) '
.(v) . Other -.please specify 1,041041641•41040!*.M4141000000.11.01,164-641,0•41$0410
(t) In what ways does your organisation recruit new managers?
(i) Advertisement
(ii) Informally - (word of moutti)
,(iii) Employment agency
(iv) Professional association
(v) Agricultural Organisation Society
(Please tick)
(ii) Other - please specify 0100.00000001001,0000040041100410000.0040000414.1110#4,4404040400
(c) In recruiting new managers, what importance does your organisation attach to:.(Please tick)
LTLE Moderately
Important Important Unimportant
(i) 'University Qualifications'
(ii) 'AI level passes in G.C.E.'subjects
(iii) Technical qualifications (e'.g. in Accountancy)
(iv) 'In post' training (in agric. co-operatives)
(v) Previous experience in your business
t
t
t t " the agric. co-operative movement
"the co-operative movement generally
" non co-operative businesses
I
r7-1LIL E11
Yes-
(Please tick)Nof___I
(d) Does your business have a definite management recruitment policy?
If yes, please give brief details, how long established etc.
4,00.4.10#4,11•01•41040464111414001100,61.000.1.0.•..4106,00.6,10.04.4,4100004,400.4.0,0fi.$00.10,0,11.004041110,641.0•00.000........
04,490040100001,0000416416060004109040041041.0.41000006000000,6414,01,06.410.4.000000....e,S5OsW,S.00.041.00.1,1004141.060*40
C ONFIDENTIA L.
(Section 7 Recruitment, oontinued) (Please tick)
(e) Does your. organisation have a definite management develop:rant palicy?
If yes, please give brief details•
No
11.04041001111.100.04,104,01100004.041400.04000.410041..e.0.4100000,0,0..0.4,4...s...es....w..44.4.0-0,0,114WOWIRWOO441100•04,
(f) Does your organisation have a definite Director development policy?
(g)(i) Does your organisation employ a specialist personnel officer?
(ii) If not, is the personnel function discharged by others?
(Please tick)Yes Ho
HiIf yes, please give brief details ..................**.iows•eires••••••••..swoms.si,........••••••****
(Please tick)Yes No
Yes No
I-71- la-71(iii) If yes to g(ii) abovei by whom discharged? fli,11040000.0000,000401,006000000.4,0400410000,01.01,4,000.1,,M0000000
(h) Do you believe that managerial careers in agricultural co-operatives
need more or different publicity than they currently receive?
(Please tick)
Yes No1.10I/NO 0111111110
If yes, please supply brief details (e.g. more informative booklets, or more effective contacts with
placement agencies and the like)
11104/000.0.1.1149004,41,0000000..000.40*.**01b...0...00041.041.41-4,00•41.41.0410.004b..4,41011040110000•11000.011,6000004D.4100..O.0.0
0•4110.0000410.4104,01,1111041•410111000041400011010001,..100ern.....4.....e.m0114,4000000011.041.10.410000410..0•4110.01.0.11000.00
00411104.1.410000.0.1.11.0.00.0.11,00011100#041000.00040041.060.011004,41M.1104114.804141,01,400.00000011004,011M44141000010404,411 0110
SECTION 8 THE' - FUTURE
Despite the obvious difficulties of so doing, we would like to throw as much light as we can on the likely
future prospects for agricultural co-operative managers in this country. We would be grateful therefore
to have your opinions on the following (admittedly wide) questions:-
(a) Do you think there is (or shortly will be)' a change in the type of
person needed in agricultural co-operative management?
(Please tick)
Yes NoOkanlit
If yes, please give brief details of the main form(s) which you foresee these changes taking.
4)041101P.400.411.0.0.004,010*40......esee.0001.14.1141000000000.00.004100.0.1,04*Oi0M4000.0o.00.04,0911100041.0011 ,0011.00.05.0
41011•4000000001,110041,0•00004011.600.0404040.410.es064.0.1100•010000.04,404,0114.100•0004‘0000001104,0000411111,041114111000.04041010.11
(b) If there is any aspect of agricultural co-operative management which has not been covered, but on
which you feel further comment could be helpful (e.g4 bilingual managers and the E.E.C.) please make
such comments here.
.........................................................................................................
THANK YOU FOR YOUR PATIENCE AND CO-OPERATION
May we Conclude by assuring you once more of' the confidentiality of your replies and asking you to return
the completed questionnaire in the enclosed stamped and addressed envelope to:-
Dr. F. D. Mills,
Department of. Agrieultural Economics and Management,
University of Reading,
4 Earley Gate, Whiteknights Road,Reading RG6 2AR.
.,r 55.-.
APPENDIX 33
TI SAIOLE1
• 1•
The basic information used in this report was sought by means of postal
questionnaires addressed to the Chief Executive of selected Agriaultural_
Co-operative Societies. The 1975 Directory of Agricultural CO-operatives
in the United Kingdoit was us'ed to h'eli) to identify those types and sizes
of agricultural co-operative's known to employ at least one paid manager.
The sample was therefore a selected and not a random one. Central Council
officials gave advice on the raO•st. appropriate co-operative'societies in
England to approach. For Waies, Scotland and Northern Ireland similar
.advice was sought from the respective Agricultural Organisation Societies
W. A. O. S. S. A. 0. S. and N. A. S. In ',general; the main • focus of the survey
was on agricultural co-operatives reported tvlb having a turnover of over
El million in their last trading year; After.- an initial test suz2vey,
total of 216 questionnaires w. ae sent out in'the- suram6r of 1976, each with
a short explanatory. document from the Central Council and. from the survey
organiser (see Appendix A). In a number of instances visits were made•
particularly to the larger . co-operatives in each of the four regions of the
U.K. with the exception'- of':Northern Ireland.** 'InterVievis, inos.tly with
the Chief Executive:but bometimes with one or more of his Senior coneazues,
were thus a sourCe of additional information. Regrettably, circumstances
.did not permit as many- of these visits as had been initially hoped. The
ultimate response to the postal enquiry. and to the visits .was 91 completed
questionnaires relating to chief executives, and 9 for other managerial
categories, making 100 in all - an overall response rate of just under 50%.
A more detailed description of other charbieteristics of the sample can be
found in Tables I - 4 at the -.end .of this Appendix.-- • Meanwhile it should
perhaps be noted that In addition .to--•agricultural 'co-operative societies
registered as such .under the Industial and Provident Societies Acts,-
agricultural co-operative.-..cotipanie s the: Companies Act)
were included in the sample. • All in all, a total.. of 26 *t coinpany I
registered agricultural co-operatives participated in the survey
with registered office addresses in England. England,' in ifact,
accounted for over two-thirds of the total 'limber: of businesses of " Pal
kinds in the survey. Scotland and Wales each had.. just ever a tenth,
* Published annually by the Plunkett Foundation for Co-operativeStudies Oxford.
-x-x. In a few instances, visits and. questionnaires were completed in late•1976/early 1977.
- 56 -
whereas the Northern Ireland asIliceuit-urmi 040-11ron Ar•eOuntee IT= only
V of the total.
The sample includes some of the largor farm co-operctive businesses in
the U.K.* More than a tenth had turnovers in excess of .€10 million p.a.
The majority (53k however were in the Lim - £5 million range. Lbout half
of the businesses in the survey had been established before World Irar II -
indeed more than a fifth (11‘$) had been registered before World War I. The
largest proportion OW however had registered their businesses. in the three
decades between 1941 and 1970. The sample contained relatively few
businesses (only about 00 that were established in the period 1971-1;77.
Finally in this outline of the main trading characteristics of the businesses
surveyed, just under a tenth (V) were reported as being* mainly enact/zed in
manufacturing activities. About a quarter (24) were described as uulti-
purpose societies, i.e. engaged in supplying farmers' requisites in addition
to marketing farm produce. The biggest single category (44/ ) were raw:toting
societies. Societies specialising in supplying their numbers with
revisites accounted for just under a quarter (23/) of the survey.
219...,ampla_o_tato-oerativevi._cu taral businesses - further characteristics
TOLE 1
Facka....almaLs
Re on
Ragland
N. Ireland
Scotland
Wales
Total
Number of
62**
11
12
91
/fa
68
12
13
100
** 26 were registered as companies - all based in Ilrziand
Date when co-0.e tive w f4rst estdbl shod as rordstered business
Date when firstEstabl,ished
Before 1910
33etween1911 and 1940
Between 1941 and 1970
Between 1971 and 1977
Numbers
19
26
40
tominliPPOMPosravireP
r.
21
29
44
100
* Throughout the survey the form in which the dates have br en Droselited is
constrained by the need to avoid reirealing the identity .)f
societies.
57
APPIINDIX C
Add.itiona.l. Tables
Table • •
Formal Job Titles re orted b Surve
Formal Title Nudber ofNanaers
Chief Executive 3General Manager 54Managing Director 10
Managers/Secretary 11
Managing Director/Secretary 3Miscellaneous 10
• •
Tian, ors
60
11
12
11
Total 91 100
As ects of su marko.ers'
Table 11
'obs 'found es eciall rewardil 1.100
Seeing results, sense of being usefulmoving towards objectives
Total responsibility and. freedom to act
Working with people (Directors, staff, members)
• Challenge and actual trading
Variety
Converting potential benefits of co-operationinto commercial reality
• ••.'•
45
31
17
17
16
13
*
In order to make clear how many respondents answered a particularquestion the relevant number has been written in brackets thus (N.91).
** Many of the responses were multiple, so that the number of responsesrecorded exceeds the number of respondents.
TABLE III
S`tirv co-o seratives b size of annual turnover
Turnover category
Less than E1 million p.a.
Between El million and. £5 million p.a.
Between £5 million and eV million p.a.
Over £10 million p.a.
• Numbers
27 30
48 ,53
6 6
10 11
Total 91
TLBLE IV
Survey co-operatives by type of business
&ea Numbers
Manufacturing
Requisites 21
Marketing 40
Multipurpose 22
910.111.1.111101•11ftsownismil
eiLD
23
44
24
100
100
Summary.
Previous occu
_59_
APPENDIX D
of reviles t Question 2d
•
ations resorted b surire ers
Managing Director
General Manager/or Joint Manageror Assistant Manager
Packhou.se Manager
Farm (Nursery) Manager
Farmer
Clerk
Services
Rep. s(Tech.)
Rep. (Sales)
Assistant to Managing Director
Assistant to Commercial Manager..
School Teacher
Branch Manager •
Regional Manager
Marketing (or Sales) Director
(or Marketing)
Sales Maltager
Estate Manager
Trainee Product Manager
Manager of a Wholesale Business
Accountant/Auditor
Insurance Representative
Bank Clerk
Technical Manager
Agricultural Engineer
Audit Clerk
Agricultural Adviser
Trainee Manager (Agric-co-operative
Trainee Manager (Non-co-operative)
Navy
Miner
Fisherman
Building Worker
Chartered Accountant
••
Shop- Manager/Assistant
Breed and Show Secretary
Horticulture Foreman
Hill Manager/Grain Manager
College Lecturer
Self-Employed
Agricultural Finance Executive
Auctioneer and Valuer
Haulage Director
Policeman/Detective -
Transport Manager
Commercial Manager.
Depot Manager
Company Secretary ,
Director (unspecified)
Chief Executive
Development Executive
Shipping Executive
Product Manager Asst..Prod. Manager
Milk .Inspector.
Manager (unspecified)
Creamery Manager/Asst. Manager
Merchandise Manager
-6o-
APPariDIX E
Selection of Replies to Question 3d
"Do you think that the MblinFement of Co-operative Societies as such calls forparticular specific traininict in some r‘espeicts?"
"Equating Commercial and Co-operative thinking - difficult".
"Aim of Agricultural Co-operatives' financial structure both now and inthe future".
"I and P. Acts and Implication. Society Shareholding. Depends upon typeof society and policy. This one is strictly commercial".
"Co-operative Law etc./Member Involvement".
"Essential to understand. the basic structure and philosophy of co-operativecompany".
"Society/member relationship requires special skills".
"Financial in particular".
"Practical Agricultural work to understand growers or farmers problemsproperly".
"Accountancy, nan-management, technical".
"In dealing with member suppliers".
"Agricultural background. is an asset".
"Training of having to work through the Board., Committees and membership".
"Communication".
"As far as the law affects the workings of a co-operative society".
"But only in so far as the principles are concerned".
"Accounts training, sales training, production training".
"Very Senior Managers should. be briefed. in all major areas".
"Good grower relationship essential".
"There is nothing to compete with practical experience, specialist training
is a short cut".
"Courses as now provided. by Brundett Trust".
"Co-operative Law".
"Legal, fiscal etc. - otherwise little different".
"Legal and Company Secretarial areas. Fiscal knowledge for accountants".
"Co-operative Law - the art of being commercial but still maintain the
interests of its members".
"Financial Management, human behaviour (motivational theory) Marketing
management, decision theory".
"Buying, cash flow, personal relations".
"Man-management".
"Accountancy, credit control".
"Other than normal, commercial training plus some legal. They are essentially
commercial concerns as are their constituent parts (members) with whom one
should deal as both managers and. consultants".
•S
— 61 —
"To balance grower member interest with long term cempany interest".
"Business not farming".
"A - thorough training in business management with emphasis, on the organisationaspects".
"How to work for and with shareholders (i.e. farmers)".
"No. more or less than management of come'rcial company".
Statutory duties for administering CO—ops (b) Organisation and Methods.c Personnel Management". • . • .
"The ability to explain and clarify Company policies to an extent that will
get the willing participation by all employees and pembers".
"Learning the peculiarities and structure of co-operatives".
"To bring out the Difference in Co-operative Marketing as against PrivateCommercial Trading".
"Outline of Company Law, accounts, and secretarial functions".
"Man-management or the need to motivate members to co-operate as opposed toaccepting commercial authority".
"Technical training, Management training, Accountancy training and ability to
combine all these".
"Generally No, but at least background knowledge of the industry can help
relations with members".
"Insight into Agricultural field of produce handled".
"C.C.A.H.C. Courses can be of benefit".
"(a) Business Management, (b) Human relations, (0) Production of crops".
"Broad Management Training plus specifics on law relating to co-op and needto understand members".
"Co-ops hive a natural tendency to be loosely structured and hence under-organised; to be successful this must be countered by a strong organisationalskill at the top".
"So long as the difference between co-op society and private company is knownand appreciated".
"Training and history of workings of Agricultural co-operation".
"Normal Business Training-Broad Spectrum".
"Cash flow, Finance, Grants and Personnel, Law pertaining to Contracts".
"ONLY EXPEKENCE NECESSARY, i.e. knowledge of goods sold, areas to be servedand knowledge of customers".
"Yes" (sic)
"Relationship between Manager, Board of Management, Members must be understood".
"Communication with members".
"A number of managers have not a high standard of education".
"If a society is formed to engage in activities of a specialised nature,
the management should have sufficient technical knowledge".
"Financial Training re use of resources including personnel - technical
training and sales".
"A knowledge of Agriculture for Agricultural Societies".
- 62 -
"A manager has to act in an advisory- capacity on animal feeding and
fertilisers".
"To the extent of emphasising the difference between the Co-operative business
and. "Private" or "Capitalistic" business".
"To understand Co-operation and the purpose of a Co-operative Society".
"General knowledge of all products sold and handling of Staff'!.
"Committee work and. maintaining good. supplier relationship";:.
"Accountancy, Salesmanship, Buying, Staff control, Property Management".
"A wide area of Commercial Management, e.g. law, accounts, personnel, etc."
- 63 -
APPENDIX F
Summary of replies to Question 3f
"If ou have undergone a recent extension or u -dati of our traininr,Five brief details"
"continuous over the past five years"
"C.C.A.H.C. courses etc."
"Various courses, e.g. Finance Management"
"Two-day courses including Video.. "How to be an effective chaiman"".
"A.T.B. plus other courses".
"Whole-day private seminar".
"attending specialist one/two-day conferences"
"Training is continuous for new legislation etc."
"As made available by Central Council".
"Post-graduate Diploma in Management Studies 1972/73".
"C.C.A.H.C. in London92 days"
"Technical only"
"Central Council - new (sic) Director's Course"
"C.C.A.H.C. and A.T.B. courses".
"C.C.A.H.C. courses".
"only Central Council Courses of various types".
"One-day course on successful communicating; one-day on Worker Participation,courses on legislation e.g. Employment Protection Lct, Equal Pay" and."Sex discrimination".
"C.C.A.H.C. Director's course".
"I am in constant contact with horticultural research stations and. nationalmarketing publications. I attend C.C.A.H.C. and Industrial Societyseminars".
"This is a regular process through short courses e.g. 3 day - 2 annually".
"Manchester Business School. Senior Executive Harvard Agri-businessSeminars"
"C.C.A.H.C. Seminar Oct. 1975"
"Annual Review"
"Course on Finance and Transport organisation etc."
"Courses"
- 64 -
APPENDIX G
SiummamsS repliefi to
"Arg y_ov. involved in_Fivirv raw3perial tra5nineiformal or informal
• or 0t.:1;,-,lid.e „your. co-operative,?"
"Not especially on Co-operative aspects, mainly technical s,;nd
aspects of the milk industry".
"New recruits - continuity training of managers".
"Both".
"To a limited extent".
"Only 'on the job' coaching".
"Yes internal and external".
to others
strative
"Yes informally".
"No, But the intention is to start within our co-op".
"Very informal".
"Yes - within".
"Advice".
"I am not directly involved in giving training".
"Informal within".
"Informal".
"Personal training of assistants - also sending them to various courses
and seminars)".
"Yes - informal".
"Yes - within".
"Personally none, but the co-operative has instigated a Director training
programme - plus guidance to Senior Staff".
"We endeavour to train young people to satisfy our own management needs".
"Informal to staff and membership - also lecturing at courses, e.g. A.T.B."
"Informal (small specialist team".
"Trustee of the Brundett Trust and normal instruction as necessary as
General Manager".
"Informal advice".
"All business activity is training".
"To middle-management within this organisation in the course of their duties".
"Informal within".
"To members of my own Department and to Area Sales Managers and Sales Reps.".
"Rarely personally, but training is given to managers from within the
company".
"Informal to second-line management".
"Informal and within".
"Informal within".
Di I IX .11
nun. of re lies-to e estion
"Do you think that your role has been adequately defined by your
organisational superiors (i.e. in terms of specific reSzonsibilities,
channels of communication etc.?)".
"I have had to write my own job description".
"My organisational superiors are !Ay Board. and. Chairman, in so far as they are
inexperienced in corporate commercial matters they do not understand their
role and therefore cannot define mine".
"Never been defined".
"Insufficient say in future planning decisions".
"It has only been defined in the loosest manner - but this allows scope
for initiative - and brick bats!".
"I find it difficult to accept the activities of other Senior Ilanagers in
relation to my authority over the Sales Force which is now only functional".'
"It would be most difficult for them to describe me as anything but the
bloke (sic) in charge in .......".
"My role has not been defined but is well established - Board decide on
policy. Manager decides on implementation, board. relations are cordial".
"Authority levels - cash".
"My role is as wide as I wish it. But all capital expenditure or new
ventures involving financial commitment have to be referred to Board".
"This took some time".
"Does not apply".
"The status of managing director would make life easier providing it came
within the power to make more entrepreneurial decisions".
"I have no organisational superiors and. as such have to set ownstandards".
"This is the first appointment of a joint Chief Executive Officer with the
job being defined in retrospect. Look after every aspect of the
co-operative that affects members' livelihood as growers%
"- but irrelevant as I have to see everything and. can delegate as
necessary".
"I am responsible to two superiors, who differ in their view of responsibilities
and. communications".
"There is no clearly defined. specification for the job".
"Moved in as a professional manager to a moderately successful business with
no management control or definition. Wrote own job spec. (sic) and
objectives also Directors' Terms of reference'.
"Specific responsibilities have never really been defined, most responsibility
has been assumed".
"I happen not to believe in too rigid definitions of either responsibilities
or communication. I look upon this business as my own and. too much
rigidity can freeze action".
-66-
IIPPENDIX I
Summary of Replies to 5ë
"Because it is a 22-operative business, are our tasks substantiall different
from those of the mariapers of other forms of business Organisation'?"
"provided you understand Farmers":•••
"Design of specially tailored techniques. to realise unique benefits of
member involvement".
"The objective of the Society is 'To provide a continuing independent force
strong enough to exert an influence on the market for the benefit of and.
within the control of our trading farmer members'. Members of tt.....12
get equal treatment which means Commercial business can use price on the
day to their advantage. Our greatest end is to sell co-operation as a
product to the member".
"Society/member relationship is unique (or should be)".
"The majority of societies are obsessed with price rather than a balance
between quality and price. Co-operators are weak sellers and do not
appreciate marketin technique as a private company does".
"Dealing with members suppliers".
"Member owned and therefore non-profit making".
"Not being able to get a direct answer (to) your decision when necessary.
The Chairman has to go to the Board and the Board may not always want to
make a decision and then Committee goes back to board etc.".
"Each member does at times consider himself to be employer".
"The individual farmer as a shareholder feels he has the absolute right to
personal access to the G.M. whilst appreciating the work load and. the real
need to create an interdependence between people who axe entrepreneurial by
instinct".
"Not responsible to a given member but to all the members of the co-op both
as a whole and individually".
"There are at times restrictions which inhibit commercial development
particularly in regard to one's commitment to members and their lack of
commitment to the Society".
"I have been able to ,identify completely with co-op philosphies, and. as a
result have become very involved with our customers and members in a way
which has never previously 'applied".
"Multitudinous Diversification".
"Customers are members and part owners. Task is to. emphasise this
difference compared to private company customers".
"No. Not basically other than in legal and fiscal Areas".
"My society .believes in minimal profits. - only..suffic4.ent.,tp cover
expenses. Some services provided.. on .trae costs would .shati a loss".
"Responsible to customers who are also shareholding.members. The interest
of farming members has to be considered when .poli.Oy decisions are made".
"Primarily because the Company is non-profit .making and equity must be
maintained between members".. .
"I suspect yes, but I have no proper way of judging. If we. knew where
the differences really lay or not, co-operatives in general might be
more. successful dynamic organisations".
-.67 —
• . APPENDIX I (cont.)
"Being answerable to 1X.1 number of members rather than 1Y1 number, of
shareholders requires greater concentration and leads toinvolvement in individual ersonal and busia.s. Thiscommitment leads to greater heartache in different trading times".
•.
"Every trade is done on behalf of a member of your company and communicationswith members are of paramount importance. It is an easier operation totrade with a farmer and make profit from him".
"Only that the members are your employers who feel they have a call on aportion of your time, which I consicler is the most difficult part of thejob to fulfill satisfactory".
"Because marketing Co-op members tend to view success i.e. higher re-'=ns;on a short term rather than long term basis. Also, farmer Directors havenot, generally, business experience in the true sense".
"The fact that it is members' money and that the member because he receives
no tangible benefit, or nine cases out of ten believes he does not, makemanaging a co-operative more difficult".
"Greater emphasis on legal and statutory- matters concerning membership,
shareholdings, marketing agreements etc.".
"Close contact and daily business matters with members, i.e. Shareholders".
"In a private commercial business, profit making is the motivator, in a true
co-operative, a fair return from the market with good. service to the members
is necessary".
"Because of members total commitment and involvement it is necessary to consult
them before major decisions are made. This can be tedious but is essential
for the successful operation of groups".
"L. great deal of personal persuasion is needed to gain acceptance of commercially
proper decisions. The application of discipline between members is more delicate
than in a normal business environment".
"Very close working relationship with the members/shareholders who own the
business, and the perishable goods that are handled. It is sometimes
difficult to avoid constraints due to the need to ensure reasonable eauitl
member to member in handling their produce".
"In the past I have been "profit motivated' this is not the criteria for
performance judgement now".
"Jiefereeing' equity within membership and maintaining true discipline of the
agreement. Organising membership gatherings, creating a team spirit between
and with Employers and Employees".
"I have not managed any other business but I feel a greater need. to satisfy
members cf. shareholder of an ordinary company".
"In other organisations, the business objectives are usually clear - in
co-ops not. Co-ops tend to try to satisfy too many needs of members -
many of which are irreconciliable".
"For example, a certain service might not be a profitable proposition and
therefore in a Commercial Orp-anisation it would be axed. In a co-operative
if members insisted on retaining the service, it would remain".
"Except for legislative differences concerning Ind. and Provident Societies
Act as opposed to Companies Act".
- 68 -
APPENDIX I Cont.
"Profit motives are not always premier (negatively - the co-op is always
expected to be "cheapest")".
"Basically the business is operated as any business - profit orientated.
by product division. Pull responsibility largely rests with LB. -
keeping the board informed - no recourse to other professional managers
in local situation".
"Risks involved in Wool buying and selling have to be restricted in view of
the responsibility to the agricultural shareholders".
"Object is to sell the best possible advantage :not just merchantine where
you can buy and sell so long as you make a profit".
"Our members, customers wish our Society to succeed".
•••
"I am responsible to Committee member6 and shareholders".
"The members are the owners of the business".
"Involved more with members and trying to satisfy every shareholder's need.
(for?) more diversification".
"Customers are frequently shareholders. This should be a big advantage.
One should find it reasonably easy to develop a feeling of loyalty to their
own business".
"Need to influence market forces - could invest funds more profitably - in
property, shares etc. - not our function - need to provide goods at least
cost to be a force in market and a continuing one - we as a Co-op will be
here for a long time - other businesses can close tomorrow".
"Additional secretarial work involved".
"The members depend. on my capabilities to run their Society to their
satisfaction, and will demand the service that they have been used. to.
Other forms of organisations would not hesitate to make a decision if not
rewarded in E":
"Because of the peculiar nature 'of' the business of selling livestock with
little control over supply, seasonal variations in throughput and. frequent
changes in demand and price, invariably there being little demand. at times
of highest throughput".
-69-
LPPENDIX J
Summary of Replies to Qes±ion 7th
"Does our business have a definite Man ement Recruitment Polic
"Management opportunities are catered for by the training of the presentpersonnel. His inclination for certain aspects of the business is encouragedby internal and external training".
"As far as possible we try and recruit from within the business. As it isimpossible to cover every eventuality, we then decide on a course of actionappropriate to the vacancy in mind".
"In recent years- whenever practical on basis of promotion from within".
"We try to take a graduate each year for one year trial. If he has thenecessary common sense and is prepared to work he is appointed juniormanagement status 3 years".
"Engagement of school leavers and. chart them through all the phases of thebusiness. Send them on various courses".
"Very recently put into operation and not functioning satisfactorily".
"Only recently - impending retirement of senior staff has led to thedrawing up of a management tree and policy of recruitment".
"Management development is practised".
"First choice to present staff, attention to in-society training".
"To promote from within if possible".
"No. Although. I am in favour. We are numerically small and costs'aretightly controlled. A training scheme would add significantly to our costs".
"The Company structure is planned to allow young staff to ultimately aspireto management. Great care is taken in the initial selection, with usuallyan ultimate job in mind. We always place character ahead of qualifications.Such people mainly respond in the right manner and invariably are very loyal".
"Being associated with the ......... group - definite promotion pattern andmovement of staff".
"Irrelevant at moment".
"Established only two years, had economic situation been normal in last twoyears, a management trainee would have been appointed".
"Established on my taking over 4 years ago. Operate management developmentscheme from trainee through but dependent on needs".
"We send one man on as many courses as possible" (sic)
"No. Although we have taken 'on one young person so as to -train him as amanager, he has started as a shop assistant but we do give him a few hoursin the office and I personally learn him (sic) how we run this society".
- 70 -
APPENDIX IC
Summary of Replies to Question 7e
"Does your organisation have a definite manapiem.ent develo
"In a comparatively small organisation it is difficult ' to keep bright youngpeople as managerial progress has to stop".
"Where possible potential managers will be selected from existing staffotherwise young potential managers will be recruited for training".
"It is policy for each director to evaluate the development needs of hismanagers and discuss, applicable training within the society. More work isbeing done: merit appraisal and succession planning".
"Informal training' and promotion from within the society".
"Mainly recruitment from school leavers; promotion from existing staff".
"We evolve our policies as conditions change".
"Engagement of school-leavers and chart them through all the phases of thebusiness. Send them on various courses".
"Under positive re-appraisal following new management team appointments -recently introduced policy unsatisfactory".
"By every means available to us we try to make our managers better businessmen".
"We have stated that we have a development policy. In my experience this isnot so". (from an assistant to. •er)
"In company training".
"Help and advice at all levels".
"An identification by annual personal review, manpower plan, individualprogramed training".
"In conjunction with Training Board. and B.A.S.A.M. Central Council, and
A.C.M.S.".
"No, we have very few staff".
"Every encouragement given".
"We mainly try to recruit young people who normally achieve a good
understanding of how the business operates prior to being offered positions
of seniority". ••
"Release fcr training courses".
"Regular management committee meetings. Outside courses".
"Initial experience in similar co-operative companies. Training in man-management, industrial relations, communication,' new legislation mainly withthe industrial societies, secretarial with C.C.A.H.C.
"I will send the packhouse foreman on course in time and will attend some myself".
71 —
"APPENDIX IC (cont.)
"My in-bention itO start one". -
"Trainee would spend 27.3 years working with other agricultural co-operativesin this country after completing initial training period here".
"Regular attendance at specialised courses. Trade orgmilsations andmanufacturers' training courses".
"Cross reference through external courses. Executives early appointment asG.M. or Senior Manager in subsidiaries bought for purpose of training".
"Vb. Only as development is likely".
"The managerial staff changes are so rare as not to warrant a formal policy.Again I say this is too restrictive".
"Constant attention is given to new trends and new opportunities".
"Identification-v. 'training towards area sales management and productmanagement".
- 72 -
APPENDIX L.
of replies to Question 7h
"Do au believe that 11 erial careers in icultural co-o eratives need
more or different publicity than they_currently receive?"
"Agricultural educational establishments are found wanting".
"No. As 90% of the trade of many large co-ops is now transacted under
non-bonus terms, management of these co-ops differ very little from the
private sector".
"Better facilities for training by people who know what they are talking
about: If co-operatives had more publicity they would tend to attract more
interest from potential managers".
"The attitude of co-op boards (and the movement generally) to professional
management has changed drastically in recent years and this desirable change
is not sufficiently publicised".•
"In particular better contacts with potential managers, universities, schools,
also professionally turned out booklets by C.C.A.H.C. and A.M.".
"I believe that as co-operatives become MOTS progressive and successful they
will become more attractive to capable managers. A general improvement in
co-op status and image will in itself be good publicity".
"The Co-operative Societies reed 'selling' better. In well organisedsocieties this is being done".
"Management should be recruited in the same fashion as private and publiccompanies. Too often the co-opurative recruitmwnt style and media reflectthe old 'cheap jack' image".
"That which is necessary to compete with other businesses of equivalentturnover and significance".
"More contact with colleges, universities, schools etc.. We carry out thisjob locally through our Personnel Manager".
"Information booklets".
"No. I believe managers require tact with people and knowledge of thebusiness dealt with - not the Harvard type business training".
"I feel that many people are uncertain of career structure in co-ops".
"A more definitive evaluation of what co-operatives are and do so that allagencies are aware of what the position offered means and developmentprospects".
"No. We can't understand why it should be suggested that they need anypublicity".
"I believe we should be recruiting from within ,and feel that there could begreater exchange within societies".
"Literature and contacts with educational and training bodies, placementagencies etc.".
"No more in Agricultural Co-operative than in private companies in the sametrade or business. All managerial careers need. more publicity".
- 73 -
APPENDIX L cont.
"As a Trustee of the *Brundett Trust' I hope the Trust will supply a need
in the future".
"But to attract more professional staff th6re is a need to recognise that pay
and other incentives are related to industry counterparts".
"No clear views".
"Were the image of co-ops both within and outside the industry improved so
that they compared with that of the efficient part of the normal business/
commercial sector, the idea of co-operative management as a career would have
more, positive appeal. In part this could be achieved through :eater contact
between the co-operative and agricultural/continental seats of learning".
"One problem is the range Of managerial -jobs: -- some depressing, some like
mine, rewarding.. Too many start ,off on the wrong foot and haven't a hope
in hell of offering a career".
"Not too familiar with the present' situation on publicity".
"There is a need for better career opportunities in co-ops ,to match the
incentives available in the commercial field".
"Training for those already in Co-ops to enable them to take up management
posts when available".
"What is required is more or different publicity on what is an agricultural
co-operative and its objectives; if they show the correct attitude to
development then the best men trill be attracted".
"More information clarifying the divergence of roles which have to be
understood".
"Throughout the whole career spectrum".
"1 would have thought very few Careers Masters at schools could lay their
hands on any document showing a career structure in this field or the steps
a school-leaver should take to equip himself for it".
"Not sufficiently aware of the present situation".
"Wide advertising of opportunities".
"Under C.C.A.H.C. a small cadre should be put in orbit. We attempted
something similar about 5 years ago but it lacked both the right type ofrecruit and co-op support. The Wholesale Federation is developing a scheme
for market salesmen - a similar approach should be made by C.C.A.H.C.
We would participate".
"No. N.B. Why distinguish agricultural co-operatives from other businesses
particularly in agriculture - sane understanding of farmers is necessary".
"More effective contacts with placement agencies".
"Co-operative movement is at present too fragmented. and therefore does not have
the power that the bigger private companies have. Federals must be formed
to wield more power and become better known".
"Why differentiate? - still operating a business".
- 74 -
APPENDIX L (cont.)
"More information, wide publicity circulation of job opportunities within
agricultural co-op movement".
"Co-ops should take the form of family business in every way excepting
profits paid back to members as bonus after reserves are allocated".
"Throughout Colleges and Universities (even secondary schools)".
"More contact in management training and universities".
"The movement needs to promote itself better and offer higher salaries and
conditions in general to attract a higher calibre of person".
"Frankly I do not know. I have never given this much thought".
"Through the Agricultural Organisation in general".
"By any realistic method possible".
"Maw societies advertise too locally and too modestly. general booklet
would be difficult as Societies vary so Duch, placement agencies are very
expensive".
— 75 —
APPENDIX M
Surnmar of re lies to iiestioñ 86, .
"Do ou think there is or shortl will be a chaxwe in theement?"
eof -person
"Managers must be more financially orientated and have a broader business
experience".
"In general a more professional .approach and in -spme- • cases (I think) salary
and C. Accordingly. More. training (C.C.A.H.C. doing a good jOb)V
"Generally better educated with some business management training".
"Basically there will need to be, fundamental change in the structure of
Co-operatives and this means more Executive Directors who must be better
qualified to run and understand a large business".
"Co-operation has to change to beeome more effective. More societies must
work together to achieve benefits, for their membership"...
"I think this is already in motion in the larger more progressive ane_
aggresive societies. Structures, in the 1 -traditional' societies are weak.
Management is needed at all lei-els with succession policies."
"Whilst there is need for a change its impetus needs to come from farmer
Directors who should ensure that top calibre managers are used to sell
co-operation to members as well as adopting conventional commercial policies".
"Younger, more businesslike approach".
"No. But one requires more commercial knowledge with the increasine, eziount
of legislation and new regulations".
"No. Except .t top levels for discussion with Government etc.. Because a
new type of capital structure must be found".
"Broader based knowledge of Business as a whole to be able to explore
opportunities not directly applicable to agriculture".
"Societies are no longer the hobby or toy of farmer members - it is big
business and needs to be run as such - hidier expertise in ricnagenent with
Board participation as Directors by management".
"All business whether co-opeiative or not increasingly require more
competent managers".
*I think the change has already taken place - the professional managers
with a commercial approach".
"I cannot answer .i I do not know the type of person in Lg. Co-opmanagement".
"In ,common with all business changing scale changing times demand more skills".
"Experience will still be a major factor. In the long tern and as Businesses
grow, greater specialisation will occur."
"Management geared to make the most of existing facilities in all fields.
Changes are only necessary when theories have been proven beneficial.
There has been too many high cost schemes all leading nowhere".
- 76 -
APPENDIX 11 (cont.)
"More formal training needed in every aspect of activity".••
"General business experience at high level is much more inportant thanmore detailed commodity trading experience".
"Not necessarily - but what is e.difference between managing a privatebusiness and a co-op".
"Replacement on retirement of tupgradedt salesmen and replacement byspecifically trained and developed managers".
"Specialisation/dedication/professionalism".
"Specifl ly trained managers - as in all industries to replace the-,led managers currently employed".
"A general plan in training over a number of years although this will notnecessarily make a good commercial manager".
"The need. for personnel trained. in business management techniques is yewapparent - akin to the D.M.S. coarse".
"In view of the poor record of a,gric. coops in the country, I suppose theanswer is Yes but again no clear views".
"In inr limited experience (of Horticultural Co-op sales) managers will haveto be far more professional than many of the "promoted. from the ranks"present incumbents".
"Co-operative farming Directors are still too often wanting non-businessmento run their co-ops - Co-ops are no different to any other business and thesooner this is understood by all the better. It would not be a bez thingfor management to move in and out of the co-ops".'
"All inspiring Sales and Production managers should undertake studies inbusiness accounting as well as in their specialised subject".
"There is or will be a need. for a stronger commercial approach toco-operative management".
"Young man with technical ability associated with his particular co-op.Ability to achieve greater co-operation amongst producers".
"An ability to look beyond the farm business - need. to obtain persons withan ability to trade on equal terms with national companies".
"Because the Co-operative Company _will have to evolve. to compete withlarge multi-national organisation; a higher level of business acumen inmanagement will be required".
"It varies accordingly to the type of Co-operative but each in his way needsto be at least seen to be a good Co-operator".
"I imagine recruitment in management will cothe from within or from NationalAgricultural Commercial organisations".
"If one assumes that there will be a growth. in, the size of Co-operatives,Management will have to become more sophisticated.. Small co-operatives
. will, still need the personal touch!'.
-77 -
APPENDIX M con-b.)
"No. Not in our particular line of business".
"The persons required, must be very much more Commercial in developing
co-operatives".
"More emphasis on ability to run a business and. one larger than many present
Co-ops, rather than on specialist agriculture/horticulture knowledge".
"In maw ways, co-operation has reached a plateau in development, it needs
a person with a sound dynamism and. commercial flair".
"More professionalism in some cases, but I really have not been involved
in Co-operatives long enough to be definite".
"No change is necessary in small co-ops such as the one I an in".
"I cannot see the difference between a Co-op manager or any other =lager".
"More commercial and professional and less purely agricultural".
"Managers will be more involved in planning and budgeting projection.
And there will be more need for the Manager to have an aninistrative
background".
"More public relations work must be done and while it is necessary to
concentrate on Commercial aspects of management, Co-op management should
be seen to be practical in agricultural matters".
"Changes are already taking place at senior levels. More specialist/
professionals required".
"More emphasis on Accounting systems and forward contracting.tess likely that
an agriculturist will obtain top job (e.g. self)".
"During University and College stage must be provision for subject
Agricultural Co-operation".
"More progressive".
"He needs to be a professional - knowledge of business principles -
preferably with a sales/technical backgro-und (but I an biassed) a graduate,
an accountant and a good listener".
"This is difficult to answer in such a short space. Basically a manager
must be trustworthy, have a sound. knowledge of Agriculture and be popular".
"A younger more professional element is starting to emerge and change
thinking to more modern methods".
"I sometimes feel in this area that rationalisation and amalgamation of
some smaller societies is called for".
"Therefore men of that frame of mind, are required, but I must emphasise
that the generally accepted form of agricultural Co-operatives are not
in my sphere and it could be said that I should not comment".
"No. Unless he will have to be a legal expert".
"The improving status and working conditions will attract better qualified
applicants".
"Far more training needed of the kind given by Large Multiples. Kore
Accountancy training. Practical Salesmanship vital".
- 78 -
• .0.1)11111.DIX N
re,p1 es to Priest-ton_ Bb
"Any otb.er arrri_ect of arrri.r,1:1.:-. ,eript, not covered?"
"Should there be sOme better form of contact with the hierarchy of the N.F.U.?"
"Bilingual trend in pp:I-Ale-0.1Tc. Assi.Ptenrie in understanding the many
orot.tri.::x.r,-%:!.ans that ox-If.rtJ - their purpose and possible use to the industry
and particular co-operative".
"With legislation on the rights of employees being equal to shareholders,
i.e. worer pax-bioilmtion, a knowledge of inthIstrial relations together with
the acctiv1-.:...ing of skills necer3F3aii• to get irda%I.I.Dity from employees and members
for policies designed to improve their livelihood".
"There will be a need to look beyond our traditional markets and develop
other outlets, e.g. export and direct trading".
"In larger co-operatives it may be better to employ specialised managers to
control the buaness jointly in favour of a Managing Director".
"Co-opative Msnagers will I believe not come from outside the industry
but will be younger mole progreinive people currenny employed in"(sic).
"Lbility to speak EEC languages likely to be useful".
"There is too big a gap between the o.rninazy member and his co-op, which
must be different to a no-11ml commercial busiaeos".
"Training of young persons for management-correspondence courses and block
rele ay.f...enents for agricultural co-op courses. This needs to be
re-establiGhed".
"Own business is already involved in Europe and. share in joint ventures with
EEC companies/co-ops have already three managers who are bilingual".
"Extra language would help".
"Bi.lintan..1? Some can't speak English: - (or do you mean Welsh?!)
- trairing in cos-o-0 - form structnre of "EEC Co-ops -
Education - ViLts to other centres at home and continent".
"A manager in North Wales has .to be bilingual, is e English and. Welsh
lartrwlses. What we m--;ed is orge,n:U.lation to market produce especially
Fat Lamb, Fat Cattle and Storp.Cattle".
"In Wales, Welsh/English speaking is an advantage. Another major aspect
is the appointment _of capable and truolivorthy staff to delegate to".
"The mansger of this Society has to (be) bilingual Welsh and English.Minutes of Board meeting are in Welsh".
."DesDite all efforts made by A.O.S. and. any Council attempting to assist
Com-cewrrit::or "Demand andS-i.11yply controls the whole .5...9611P" as we did
prov,r,;)eoi a ly in 1974-75 1,fhtn farm stok prioeo -VN,72e , down. Depression
in farming can ruin any busineos Co-operative or otherwise".
"Bilingual managers (in Wales) with Welsh as first language. •
"We feel that there should be more liaison and. assistance between co-operatives".
-79-
"In Wales there are still too many small Societies. Larger Societies means
bigger jobs and bigger people".
"With our involvement with European agriculture and horticulture thro the
EEC a second Plumpean language (prefei:ably either French or German) is a
great advantage".
"The secret for success in agric-co-ors lies in other members not their
managers. In our opinion very few U.Z. farmers are sincerely co-op minded".
"A capacity and liking for filling in forms which are proliferating in modern
business".
"The personnel-human relations activity has in general been largely forgotten
by the large society - bilingual interesting (I an studying German)".
"Senior Executive Managers should be eligible for appointment as main Board
Directors to bring Co-ops into line with private companies".
"As we are full members of the MC now (and I happen to be bilingual) an
if you serve on EEC Committees it is very useful".
"Bilingual managers will become more useful as time goes on".
"I would so love to see more emphasis being put on all recruits being able
to just get on well with people".
"There should be an even more senior appointment with power to rationalise
the Ag. - Co-ops for our general good".
"Second language - one of changes referred to in (a) above. Co-operative
philosophy".
"This questionnaire appears to pre-suppose that a company incorporated under the
and P's Act in some ways requires different management to those constituted
under the Companies Act. We do not agree with the implication".
"Bilingual - much more travelled - appreciation of Political Implications EEC".
"It will be very necessary for managers to be completely up-to-date with all
EEC business and to be able to speak as many of the languages as possible".
"1 think there is a danger of co-ops forgetting that they must be commercial
and work with private/public organisation. The EEC contracts are what
want A.C.M.S. to do".
"The use of the words "Society" and "Co-operative" is the biggest single
drawback to recruitment of suitable men: The words axe old-fashioned
and give the wrong image".
"We are part of EEC - Co-ops in the U.K. are not united enough to go into
Europe as one voice. Thus must change if progress is to be made".
"Prospects would be enhanced by a rationalisation of the existing 500
Do-operatives into say 6 Regional co-ops providing greater financialstability and benefits for progression".
"Some co-operatives deny themselves desirable management due to failure to
give manager full authority. Directors/members relate rewards of management
too much to their own rewards".
