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 Co-

operative 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

Money Economy

Domestic Economy

Capital dominated relationships in the outer circle

Labour dominated relationships in the inner circle

Big Business

Banking and Finance

SMEs

Communities

Families

Individuals

Public Sector

Associations

Micro Finance & Domestic Labour

Propositions1. 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 inCo-operative Management

• What should be seen as operating values or principles for co-operative managers? • How should we define the nature and role of co-operative 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 co-operative membership in the achievement of the co-operative purpose.

Operational principles for Co-operative Leadership, Governance and

Management?

• Davis & Donaldson propose seven?1. Pluralism

2. Mutuality

3. Individual Autonomy

4. Distributive Justice

5. Natural Justice

6. People Centeredness

7. The multiple roles of work and labour

OHT 1.13: Value-led Management 

Level Outputs

Philosophy

-Values-Culture-Purpose

Policy

-Basic integratingformula for progammes

Programmes-key businesses-HR strategies-strategic goals

Practises-individual tools& procedures

Development-individual-organisational

Fig. 2. Value - led management

Roles & Relationships How people are treated / rewarded

Defines

Objectives Key Result Areas

Strategies Project Paths

StakeholdersMarketsInvestment

New products New servicesQuality+Cost

Actions Adding Value

ResponsibilityStandardsCustomer focus

Growth Employee TrainingMembership Dev.Management DevRelationship Dev.

Values

Davis P and Donaldson John, (1998)Co-operative Management. A Philosophy for Business,New Harmony Press, Cheltenham.

International Journal for Co-operative ManagementVol.1. Number 1 to Vol. 4 Number 2

New Harmony Press www.newharmonypress.comRegistered 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

JournalsDavis, P (1998) Responding to Poverty. Communitarian solutions to rural and urban poverty through co-operative facilitation of primary associations based on households or families. InJournal 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