Ch.12 Business for the future Flashcards
The Management Century
1st era. Before WWII. Science of management
Launched key tension in management thinking between “numbers people” and “people people.”
Hawthorne experiment. Reveals impact of 2 factors: group dynamic, management attention (people are not simple machines).
2nd era. WII to 80s good feeling
Drucker hurricane: Management for results.
Business is a social institution. Respect is key: not boss/worker but manager/employee.
Mary Parker Follet: power with rather than power over; Hawthorne results: social equilibrium.
Douglas McGregor (MIT): X people (lazy, rational) vs Y people (not rational machines, it’s a matter of motivation). Elevate humanity of production.
Greater prosperity and democracy helped the process.
3rd era from 80s to now. Specialization and servitude to market
Technology, deregulation, globalisation of trade… Computers for calculations, markets for acquisitions. Shareholder over stakeholder capitalism.
Sharper and clearer strategy focus—shareholder wealth (M. Porter—competitive strategy). Growth of MBAs.
Gar Alperovitz argues
that in recent years, the profound ecological and economic challenges led to an extraordinary amount of experimentation in alternative organizational forms that are socially and ecologically mindful. Dealing with these challenges requires new economic approaches.
new-economy movement.
the movement seeks an economy that is increasingly green and socially responsible, and one that is based on rethinking the nature of ownership and the growth paradigm that guides conventional policies.
Traditional Organizational types
- Business/for-profit/private sector
2.Government/public sector
3.Non-profit/ngo/civil society
Organizational forms
Sustainability challenges:
Economic
Social
Environmental
Tectonic stresses:
Population
Energy
Environment
Climate
Economic inequality
Sustainability challenges:
Economic
Social
Environmental
Tectonic stresses:
Population
Energy
Environment
Climate
Economic inequality
- Social entrepreneurship
- Cooperatives
3.Community contribution companies (C3)
Cooperatives
egalitarian, often green,worker-owned cooperatives are a long-standing, internationally recognized business form involving democratically controlled organizations that are owned by its members.
Co-operatives
Long-standing, internationally recognized business form
Owned/operated by and for members
Democratically controlled:
One member = one vote
Compare to typical corporation; one share = one vote
Co-op principles:
1st : Voluntary and open membership
2nd : Democratic member control
3rd : Member economic participation
4th : Autonomy and independence
5th : Education, training and information
6th : Co-operation among co-operatives
7th : Concern for community
Social entrepreneurship
The application of entrepreneurial business skills to the creation of an enterprise whose primary purpose is to solve social and environmental problems.
Social Entrepreneurship The problem
Many poor people in India have vision problems that are treatable/curable but go untreated due to lack of money
Social Entrepreneurship The solution:
Highly specialized labour and highly systematized process -> low cost
Charge market rates to those who can afford to pay
Use surplus to cover two who cannot afford
Community Contribution Companies
A hybrid (in
Canada) corporate model that allows to pursue social
goals while generating profit.
A brand-new hybrid corporate model in Canada
Adopted in British Columbia as of July 2013
“Allows entrepreneurs in B.C. To pursue social goals through their business while still generating a profit and providing investment opportunities to like-minded individuals.”
