Current State of Research into Co-operative Management. Context, and Future Vision

1. 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

2. 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

3. 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

4. Micro Finance & Domestic Labour

5. 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

6. 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

7. Models of Co-operative Management and Governance • Charismatic Great Leader Model • Collective Model • Civil Service Model • Co-operative Value Based Model?

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. Definition ofCo-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 membershipin the achievement of the co-operative purpose.

16. Operational principles for Co-operative Leadership, Governance and Management? • Davis & Donaldson propose seven? • Pluralism • Mutuality • Individual Autonomy • Distributive Justice • Natural Justice • People Centeredness • The multiple roles of work and labour

17. OHT 1.13: Value-led Management

18. 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

19. 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