The Difference Between Manager-Managed and Member-Managed Cooperatives

Cooperatives are a unique type of business that is owned and controlled by its members. There are two main types of cooperatives: manager-managed and member-managed. In this article, we will explore the key differences between these two types of cooperatives.

Manager-Managed Cooperatives

• Owned and controlled by a board of directors
• Manager is responsible for day-to-day operations
• Members have limited involvement in decision-making

Member-Managed Cooperatives

• Owned and controlled by its members
• Members have a direct role in decision-making
• Manager is responsible for implementing member decisions

In conclusion, the main difference between manager-managed and member-managed cooperatives is the level of involvement and control that members have in the decision-making process. Manager-managed cooperatives are typically more hierarchical, with a board of directors making decisions, while member-managed cooperatives are more democratic, with members having a direct role in decision-making.