Abstract

The effectiveness of decision making is a pivotal in the cooperative institution, the question of who should make decisions is by protocol vested to members. This paper is dedicated to on the assessing the tragedy of decision making structure in the cooperative, guided by objectives which are; to determine the structure of decision making and governance, assessing the effectiveness of the co-operative structure in decision and assess the effectiveness of the feedback system in agricultural marketing co-operatives in Tanzania. The study draws evidence from the selected agricultural marketing cooperative in Shinyanga; there the case study design was employed. The findings revealed that; member decision is hijacked by external drive who controls the cooperatives, meeting are called by either unions or cooperative officers that indicates, it is not from members wishes. And the cooperatives lacks feedback mechanism to feed members on the decision made, that brings gap between management, board and members. The study concluded that, cooperative are for members but members do hold their institutions. Generally the study recommends the review of cooperative law, rules and guidelines that will reflect member ownership in decisions, also the supervisory committee be established in the primary societies to enlarge managerial accountability.

Highlights

  • Background informationCo-operatives in Africa are omnipresent, and they represent the larger population they are used as a tool for uniting the marginalized from the social and economic setup

  • The study found that 85% of respondents indicated that the annual general meeting (AGM) that consists of ordinary members are the most powerful in decision making and they are assigning some authorities to their Board to make and implement some decisions on their behalf while 15% indicated that the Board is the most powerful organ in making decisions

  • The paper is the based on the research conducted in Shinyanga region, Tanzania

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Summary

Introduction

Co-operatives in Africa are omnipresent, and they represent the larger population they are used as a tool for uniting the marginalized from the social and economic setup. Cooperatives in Africa were used by the colonial powers as a strategic tool to group rural producers into clusters, so that essential export commodities such as coffee, cocoa and cotton, could be collected more cost-effectively [1-3]. The governments of the currently sovereign states accorded an essential role to cooperatives, in particular for the development of rural areas. Co-operatives enjoyed preferential treatment and were granted supply and marketing monopolies which protected them from competition CRMP [4]. They paid for these privileges with the total loss of autonomy, democratic control and business efficiency.

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