The paper examines the effect that weak enforcement of property rights has on the HR practices of firms operating in a hostile business environment.
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.
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.
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.
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.
(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/10.1108/09670730810900839Download as .RIS
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