See, from my perspective, democracy isn't a very good form of governance, and I don't understand why it should be applied as an end in and of itself in every area of life. This is in relation to co-ops, but also to the recent "democratization" drive in general.
I think it's the least bad form of governance for states because it seems to result in atrocities and genocide less regularly, but when it comes to other systems, (such as businesses) centralization and hierarchies are far more efficient and the decision makers are generally much more informed with the relevant data. With democracy, you spread the decision making across a vast number of under-informed people, which seldom results in superior outcomes.
Sure, incentives matter, I agree with you there. But the incentives aren't corrected when you add a democratic vote of all employees to the mix. The incentive alignment stay the exact same, where everyone is trying to save their own skin even at the expense of others or the firm as a whole. The only thing you've changed is reduce the liklihood of a data-driven decision, and increased the cost, complexity, and response time of dealing with dynamic and rapid changes affecting the organization.
I think it's the least bad form of governance for states because it seems to result in atrocities and genocide less regularly, but when it comes to other systems, (such as businesses) centralization and hierarchies are far more efficient and the decision makers are generally much more informed with the relevant data. With democracy, you spread the decision making across a vast number of under-informed people, which seldom results in superior outcomes.
Sure, incentives matter, I agree with you there. But the incentives aren't corrected when you add a democratic vote of all employees to the mix. The incentive alignment stay the exact same, where everyone is trying to save their own skin even at the expense of others or the firm as a whole. The only thing you've changed is reduce the liklihood of a data-driven decision, and increased the cost, complexity, and response time of dealing with dynamic and rapid changes affecting the organization.