KEY WORDS: Decisions on Human Resource Management.  Contract workers.  Gender equity. Worker representation. Management of a recently privatized company. Function of a company Code of Conduct.

SYNOPSIS: This case deals with Cargillís management strategy in the five years since they purchased twenty percent of the Zimbabwe governmentís Cotton Marketing  Board. In direct competition with COTCO,  a larger privatized company, they purchase high quality cotton from small holder male and female farmers at 13 collection points. The cotton is transported to two gins, and then exported  through the port at Durbar, South Africa. Substantial information is given in the case about Cargillís strategy for capturing market share, as well as information on government regulations, and Cargillís employment practices. There is also information on the farm economy in which they operate. The roles of men and women in the traditional economy, and as Cargill employees are discussed in some detail.

LEARNING OBJECTIVES: The case decision revolves around the issue of  representation of contract (seasonal) workers on the workerís committees. Such human resource management issues are directly linked to the company  strategy to gain a larger share of the cotton crop because most of the workers come from the community, and many are themselves farmers who sell cotton to Cargill. Community perception of  the company has a substantial effect on where
farmers go to sell their cotton.

The case can be taught in two ways. In the first,  it addresses working conditions  with particular emphasis on the employment of women. Here the objective is to sensitize students to ways in which the Cargill Code of Conduct worked to the advantage of poor rural women, and to illustrate ways in which using the goodwill of  these locally employed women can contribute to improved market share for Cargill.

The second teaching approach uses a straight forward discussion of strategy for  managing  a company carved out of  a government marketing board . Here, the objective is to understand the company strategy in competing for market share with COTCO, the other new, but still somewhat government dominated company. Cargillís successful strategies  included transparency in hiring and in cotton grading, as well as immediate payment for cotton purchases, and cash payment of
wages.  They also work with selected input suppliers to assure farmers of supplies at a reasonable price. All these strategies had somewhat different effect on women and men.

STUDY QUESTIONS AND TEACHING STRATEGY: In both strategies, classroom discussion can follow the Study Questions fairly systematically.  If the emphasis is on womenís employment, substantial time can be spent on questions 3 and 4 , contrasting and comparing gender roles and rewards in the traditional farming systems, with those in Cargilllís operations.

 If greater emphasis is placed on competitive strategies, questions 3 and  4 can be omitted,  and a question on strategy can be substituted.   Discussion of the remaining questions can then follow.

STUDY QUESTIONS

1. WHAT IS THE NATURE OF CARGILLíS COTTON OPERATION IN ZIMBABWE?
     A. HOW LONG HAVE THEY HAD THE OPERATION, AND HOW DID THEY
     CREATE IT?
     B. WHY DID THEY DECIDE TO INVEST IN SUCH AN OPERATION?
     C. WHAT ARE THE MAJOR PROCESSES IN THE OPERATION?
     D. HOW WELL IS THE BUSINESS DOING?

2.  ZIMBABWE HAS A UNIQUE HISTORY IN ACHIEVING INDEPENDENCE.  HOW HAS IS AFFECTED THE CONTEXT IN WHICH CARGILL
OPERATES?
     A. LAND TENURE PATTERNS?
     B. EDUCATION PATTERNS?
     C. LABOR LEGISLATION?
     D. GENDER ISSUES?

3w. WHAT IS THE TRADITIONAL GENDER DIVISION OF LABOR,  RESPONSIBILITIES, RESOURCES AND  REWARDS IN THE COMMUNAL AREAS WHERE CARGILL OPERATES?  HOW IS THIS CHANGING?

4w.  WHAT IS THE GENDERED DISTRIBUTION OF ROLES AND REWARDS WITHIN THE CARGILL OPERATIONS?
     A. WHAT JOBS DO MEN AND WOMEN HOLD AS SHORT TERM CONTRACT
     WORKERS?
     B. WHAT JOBS AS PERMANENT EMPLOYEES?
     C.  WHAT ACCESS TO TRAINING AND PROMOTION DO WOMEN HAVE?
     D. HOW DOES WOMENíS PAY COMPARE TO MENíS?

OR
AN ALTERNATIVE QUESTION ON STRATEGY

3/4.  WHAT HAVE BEEN CARGILLíS STRATEGIES IN CONVINCING FARMERS TO SELL TO THEM, RATHER THAN TO COTCO? WHAT WAS THE RATIONALE FOR EACH STRATEGY?   HOW WELL DOES THIS APPROACH APPEAR TO BE WORKING?

5. WHAT DO CARGILLíS EMPLOYEES THINK ABOUT THE CONDITIONS OF THEIR EMPLOYMENT? WHAT ARE THEIR MAJOR CONCERNS? DO THESE DIFFER BY GENDER?

6. CARGILL HAS AN INTERNATIONAL CODE OF CONDUCT, WHICH GUIDES THEIR BEHAVIOR. THEY ARE ALSO BOUND BY ZIMBABWE LABOR LAWS.
     A. WHAT IS THE ROLE OF UNIONS IN ZIMBABWE?  WHOM DO THEY
     REPRESENT?
     B. WHAT IS THE ROLE OF THE WORKERíS COMMITTEE?  WHO DO THEY
     CURRENTLY REPRESENT?

7. CONSIDERING CARGILLíS CODE OF CONDUCT AS WELL AS THE LABOR LAWS, WHAT DO YOU THINK JEAN PAUL SHOULD DO ABOUT EXPANDING THE WORKERíS COMMITTEE?  WHY?

WHAT OTHER MEASURES MIGHT HE UNDERTAKE TO INCREASE WORKER SATISFACTION AND LOYALTY TO THE COMPANY?