Co-operation is ... Forms of co-operation

Co-operation is a kind of social movement in which a certain organizational and economic system of people's activity is formed.

The essence of co-operation

As a special form of organization of labor, cooperation is represented by the cooperation of different numbers of people jointly participating both in one and in different interrelated labor processes. All these processes occur within the framework of some organizational and economic systems.

Types of co-operation

Considering this concept in the sense indicated above, the following forms of co-operation are distinguished: simple and complex.

So, simple co-operation is formed in the process of performing homogeneous work. For example, it is joint land cultivation, trade or construction.

Complex cooperation is based on a clear division of labor of persons engaged in joint work. With this organization of work, the means of production, as well as the knowledge, labor and skills of those engaged in such joint work can be more effectively used.

Other forms of uniting people

From the standpoint of the relations arising from the merger of property, labor cooperation makes it possible to unite participants based on the collective-share form, which is created by the formation and subsequent reproduction of capital on a unit basis. This association is based on volunteerism, democracy, equality, mutual economic interest and responsibility for the results of joint activities to meet the needs of each individual member of the team. This happens by increasing revenues and reducing some costs.

Collectively-shared labor cooperation has the main features that are determined by the business entity itself and find its manifestation in the principles of its organization. These include: the formation on a democratic basis, the organization and effective management on the basis of equality of members of the cooperative.

Co-operation of production is the establishment of long-term links between individual industries, business entities, and their subdivisions for the purpose of participating in manufacturing or repairing specific products. With such a merger, enterprises can supply the parent enterprise (consumer) with finished products or semi-finished products (stamping or billets) that are necessary for the end product.

Industrial cooperation is the activity of business entities in two main areas:

- establishment of close connection both between the sectors and between enterprises that are directly dependent on the technological process;

- organization of connections between specialized enterprises for the full use of all production capacities.

Co-production: basic forms

There are the following forms of production co-operation:

- aggregate (subject), in which business entities that carry out related works, supply the main enterprise with some items (units) that are necessary to complete the finished product (for example, electrical equipment or engines for tractors or cars);

- the sub - stage , represented by the supply of adjacent parts (these may be piston rings for automotive or tractor enterprises);

- technological , in which specialized enterprises supply some other semi-finished products (for example, stamps) to others or perform certain technological operations for them.

Classification by location

Depending on the territorial location, cooperation is:

- intra-district (association of enterprises located in one economic zone);

- inter-district (with the location of economic entities in different economic zones).

Industry identity

Considering the industry affiliation, distinguish the following forms of enterprises: intra-industry and intersectoral cooperatives. Thus, when cooperating with economic entities operating in the same industry, we obtain intra-industry associations. For example, sugar refining industry. If in the co-operation business entities from several industries participate, then in this case inter-industry cooperation (for example, a macaroni factory, electronic or machine-building industry) is used.

Co-operation and specialization

Such concepts as specialization and cooperation are closely interrelated. It can also be said with certainty that co-operation in its economic essence is a derivative of specialization. Thus, the second term leads to the formation of a list of highly specialized industries and enterprises within the framework of the law on the division of labor. Business entities with narrow specialization produce only individual items, units, and parts. And the creation of a finished product often requires certain interrelationships with the pooling of efforts that will allow it to be assembled into a common whole.

Thus, cooperation is the next stage of economic management, based on a developed specialization that promotes the rational use of raw materials, materials and labor.

Indicators of cooperation

In the industry, such production indicators are known:

- Specific weight of the cooperated deliveries in the cost of manufactured products, represented by the ratio of these indicators and expressed in percentage.

- Number of enterprises cooperating with each other . In this case, the effectiveness of such associations can be clearly seen. So, often the forms of enterprises assume the production of only one type of product, which is much more profitable for a large enterprise than for setting up its own production for the production of a particular part. So, for example, various instruments or hardware in co-operative deliveries are much cheaper than their production at each individual enterprise. In this case, there are production links. This is the interaction of individual business entities in the production of specific parts (specialized production).

International cooperation

In this article, the association of enterprises within the framework of one state was considered. However, there is also international cooperation. Here is an illustrative example.

On the territory of one state there is an enterprise that produces a suspension for preparations from oncological diseases (chemical industry). However, at this plant a closed cycle of such production is absent due to a lack of funds for the purchase of special equipment. Therefore, the suspension obtained is sent to another state (in our case, to the UK) where appropriate production capacities are available, on which the medicine itself is already prepared, ready for use.

Industries in which co-operation is not applied

To industries where such an association of enterprises is absent, one can include the food industry. This is due to a fairly simple process of manufacturing finished products. However, there are exceptions. For example, this is the production of wine, champagne, cognac and pasta. However, this has no special economic significance on the industrial scale. Therefore, it is sufficient in the food industry to establish simple relationships between independent enterprises.

To some extent, cooperation within the food industry is manifested in the joint use of some auxiliary production facilities, as well as serving farms with full utilization throughout the life of the operation. The economic feasibility and effect of this form of cooperation are somewhat mitigated due to the seasonal nature of individual industries.

So, in the off-season when the main production is idle, the available technological capacities and areas can be leased to other nearby enterprises. For example, these are repair shops, electrical installations or warehouses. And in the season, the service farm and auxiliary production can be much more rationally used due to such leasing. For example, a food company, close to a beet-sugar plant, to buy steam or electricity from it is much cheaper than producing it themselves. Such centralization of the serving economy and auxiliary production receives a kind of concentration effect and certain advantages of this production.

Summarizing the material presented, it should be noted that cooperation is an efficient form of combining enterprises in order to increase productivity and reduce the cost of finished products.