Current State of Research into Co-operative
Management.
Context, and Future Vision
Finnish Co-operative Movement
One Hundred and Tenth Anniversary Celebrations
Helsinki, 2009
Presenter
Dr Peter Davis, Chartered FCIPD, AHEA
Content
• Introduction
• Propositions for future research into
Co-operative Business and Organisation
• Why Co-operative Management is Problematic?
• Models of Co-operative Management
• Observations on the research emphasis of Cooperative Management and OD
• The development of mainstream management
philosophy towards the co-operative model.
• Co-operative Value Based Management
• Agenda for Research and Appendices
Introduction
The dimensions of the crisis
–
–
–
–
–
Political
Economic and Technological
Environmental
Poverty, Polarisation, Exclusion and Alienation
Social, Psychological and Spiritual
Conclusion : The need to go back to basics:
Adam Smith on Labour Theory of Value
The idea of Character Development as a Co-operative
Project must be re-engaged
Managers must integrate the commercial and social
Micro Finance & Domestic
Labour
Money Economy
Capital dominated
relationships in the
outer circle
Big Business
Communities
Banking and
Finance
Associations
SMEs
Families
Domestic
Economy
Individuals
Public Sector
Labour dominated relationships
in the inner circle
Propositions
1. An economically successful co-operative today must
be successful socially otherwise it will not remain a
co-operative
2. The social dimension of a co-operative is a key tool for its
business development and competitive advantage
3. Co-operative value added is a mix of social and economic
value added
4. Human Capital in a Co-operative is the sum total of its
membership and staff human capital (CSCM a critical element)
5. A professional value based management must be committed
to managing both aspects of the business
Why co-operative
leadership and
governance is
problematic?
• The problem of the leadership - followership gap
(From Iron Law of Oligarchy by Roberto
Michels to Enron)
• Scale, technology, speed and globalisation
• Models of co-operative management
Models of Co-operative
Management and Governance
• Charismatic Great Leader Model
• Collective Model
• Civil Service Model
• Co-operative Value Based Model?
Observations
1. Most research into big co-operatives assumes the Civil Service
Model
2. Most research into small employee co-operatives tends to
assume the Model of collective decision making.
3. Most management research in co-operatives is focused on how
to assert member control or accountability against the threat of
managerialism
4. The focus on co-operative organisational development is almost
always on structure rather than culture and values
5. Little research conducted on the impact or application of
modern management methodologies for co-operative management
The evolution of
management in four
broad phases
• Scientific Management - Engineering led
• Human Relations Theories –
Organisation led
• Contingency Theories – Environment led
• Value Based Management – Values and
Culture led integration
Co-operative
synergies
with modern
management methodologies
•
•
•
•
•
•
•
Mission and Culture Management
Supply Chain Relationship Management
HRM / Employee Branding
TQM / WCM / Customer Care
Brand Recognition and Lifestyle
Holistic Market Research
Ethical Consumers /CSR
• Values help us to understand our environment
• Values help to shape management and organisational
culture
•
Values gives a shared sense of solidarity and
belonging to all stakeholders
• Values determine our sense of purpose and objectives
• Values help us adopt appropriate strategies, policies
and procedures
•
Our values help to differentiate our brand in the
marketplace as long as we live up to them
•
Our values are a sources of competitive advantage
Co-operative Value Based
Management as an
additional tool for
governance
• Management methodologies can empower
membership and employees.
• Co-operative values and purposes can cement
stakeholder relationships.
• Influence management culture.
• Encourage transparency.
• Creates a listening and responding management.
• Values underpin standards and behaviour and
provide an additional criteria by which to
evaluate management
Agenda for Research in
Co-operative Management
• What should be seen as operating values or
principles for co-operative managers?
• How should we define the nature and role of cooperative management?
• How should we recruit , select and develop
co-operative managers?
•Managing and Measuring Co-operative Human and
Social Capital
• Managing Holistic Marketing in a Co-operative
• Managing Culture Change and Innovation
•Managing Technological Transfer
• Exploring the dimensions to strategic management
Appendix
• Definition of Co-operative Management
• Defining principles of co-operative
management
• A schematic presentation of the interface
between values and strategy, operations
individuals.
• Find out more
Definition of Co-operative Management
Co-operative Management is conducted by men and women
responsible for the stewardship of the co-operative community,
values and assets.
Co-operative managers provide leadership, policy development
options and operational control for the co-operative associations
business based upon professional training and co-operative
vocation and service.
Co-operative management is that part of the co-operative
community professionally engaged to support the whole cooperative membership in the achievement of the co-operative
purpose.
Operational principles for Co-operative
Leadership, Governance and
Management?
•
Davis & Donaldson propose seven?
1.
2.
3.
4.
5.
6.
7.
Pluralism
Mutuality
Individual Autonomy
Distributive Justice
Natural Justice
People Centeredness
The multiple roles of work and labour
OHT 1.13: Value-led Management
Level
Values
Outputs
Philosophy
-Values
-Culture
-Purpose
Defines
Roles &
Relationships
How people are
treated / rewarded
Policy
Objectives
Key Result Areas
-Basic integrating
formula for
progammes
Stakeholders
Markets
Investment
Programmes
-key businesses
-HR strategies
-strategic goals
Strategies
Project Paths
New products
New services
Quality+Cost
Practises
-individual tools
& procedures
Actions
Adding Value
Development
-individual
-organisational
Growth
Responsibility
Standards
Customer focus
Employee Training
Membership Dev.
Management Dev
Relationship Dev.
Fig. 2. Value - led management
Davis P and Donaldson John, (1998)
Co-operative Management. A Philosophy for Business,
New Harmony Press, Cheltenham.
International Journal for Co-operative Management
Vol.1. Number 1 to Vol. 4 Number 2
New Harmony Press www.newharmonypress.com
Registered Office: 50 Tower Street, Leicester, LE1 6WT
From ILO Coop Branch Geneva
Davis , P (1999) Managing the Co-operative Difference.
Davis, P (2000) Labour and the Family. New Directions for
the Co-operative Associations of Labour, Harokopio
University , Athens.
Davis , P (2004) HRM in the Co-operative Context
Journals
Davis, P (1998) Responding to Poverty. Communitarian solutions
to rural and urban poverty through co-operative facilitation of
primary associations based on households or families. In
Journal of Rural Co-operation, International Research Centre
on Rural Co-operative Communities, Yad Tabenkin, Israel.
25th Anniversary Issue, 1998, pp 79 to 95.
Davis, P. (2001) The Governance of Co-operatives Under
Competitive Conditions: Corporate Governance. The International
Journal of Effective Board Performance, Vol. 1, Number 4.,
Emerald, pp28- 39
Davis, P. (2006) Beyond Human Resource Management in
Co-operatives, Cross Cultural Management: An International
Journal, Emerald, pp73-95