HR incentives and gun‐toting guerillas: Labor co‐operative provides the peaceful path

Abstract

Purpose

The paper examines the effect that weak enforcement of property rights has on the HR practices of firms operating in a hostile business environment.

Design/methodology/approach

Through a case study of a workers' co‐operative named Cofudeco, supplying a farm named Hacienda Gavilanes, the paper shows that co‐operative members see the farm's business as their opportunity to provide a better living for their families.

Findings

The paper reveals that the farm today enjoys enviable security conditions guarded by the loyalty of the co‐operative members. The farm owner no longer pays daily wages to the workers but negotiates on compensation for the completion of certain tasks.

Practical implications

The paper contends that, if adopted on a larger scale, such human‐resource practices could transform the business environment in hostile zones in Colombia and even help to improve the country's investment climate.

Originality/value

The paper describes how the system creates incentives for time‐saving innovations, and workers have come up with several proposals for improving the processes. Workers have considerable freedom to take decisions.

Citation

(2008), "HR incentives and gun‐toting guerillas: Labor co‐operative provides the peaceful path", Human Resource Management International Digest, Vol. 16 No. 6, pp. 14-16. https://doi.org/10.1108/09670730810900839