Imacs 2016 imecs 2016 Proceedings (Preliminary version) of the 4
INNOVATIONS IN MANAGEMENT OF SOCIAL ENTERPRISES
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- 206.1 Social Enterprise
- Aspect of participatory management of the enterprise
- 207.2 Czech social enterprises
- 208.3 Management in social enterprises
INNOVATIONS IN MANAGEMENT OF SOCIAL ENTERPRISES204.Katerina Legnerova – Marie DohnalovaAbstract This paper analyses the implementation of personnel management methods and processes in social enterprises comparing to profit organizations. The main findings are based on qualitative research in the Czech Republic in years 2010 – 2015. Social businesses are economic entities, which combine market competitiveness, values, and procedures with the social goals and mission of the non-profit procedures. Among the advantages of social enterprises we can include the ability to find innovative solutions to the social problems on the intersection of the profit and non-profit world, or the ability to combine own revenues with grants, subsidies, donations and volunteering. The mixed nature of the social enterprises puts demands on their management, on the harmonization of the care for employees and volunteers. Therefore, it is important from the perspective of long-term sustainability in social undertakings, properly implement proven personnel processes. The mixed nature of the social enterprises can create tensions between democratic, participatory management and the requirements of the effective management of the enterprise. The research confirmed that it is possible to adapt personnel management rules and processes from theories for profit organizations, with some innovations. The outputs can serve as guidelines for implementation of personnel processes in Czech social enterprises. Key words: social enterprise, innovation, management, leadership, human resources JEL Code: M12, M14, O35 205.IntroductionRecently, a growing attention focuses on social entrepreneurship and on management of social enterprises, and not only in countries of the European Union. Innovation in the management of social enterprises being able to harmonise economic and social interests in local communities shall be based on knowledge of an essence of social enterprises operation. A necessity to implement principles of human resources management comparable to commercial environment emerges. Interest in social entrepreneurship is based on an idea that public goods should not or cannot be provided only by the state and that is useful when public goods are provided also by business entities and by non-profit sector. New concept of social economy and social enterprises is coming; these become instruments for social issues settlement and provisioning of public goods. Social enterprises are entities of social economy, which combine market motivations, values and procedures with social objectives and non-profit motivations and procedures. Their position at the edge of entrepreneurship and non-profit sector represents a resource of benefits that are attributed to social enterprises. They encompasses an ability to search for innovative settlement of social issues, to advantageously combine income with financial resources originating in grants, subsidies and donations and an increased sustainability of social solutions due to capability to generate own income. 206.1 Social EnterpriseSocial entrepreneurship represents an umbrella term for a diverse number of activities and entities of different organisational forms; therefore it is important to specify, define and determine features of a social enterprise. According to several authors (for instance Defourny, 2012, Peattie, Morley, 2008), a social entrepreneurship is interpreted diversely depending on various contexts; there are several approaches how to define it, however it is not a charitable activity of corporations. A concept of social entrepreneurship spread in the U. S. A. in 1990´. According to Defourny and Nyssens (2012), two directions of the American approach may be discerned. Within the first direction of „market resources“, it is highlighted that organisation of a non-profit sector through continuous economic activities gain resources to fund own social mission. They become a social enterprise, having own income from the perspective of multisource funding. The second direction focuses on social innovations that is linked primarily with personalities of social entrepreneurs. They perform activities responding to needs of society while involving not-yet-used methods of needs satisfaction. Social innovations relate to economic activities. Social entrepreneurship is connected in market environment with corporate social responsibilities, social innovation and a triple bottom line (People, Planet, Profit) according to Hulgaard (2010). There are different forms of social enterprises in the U. S. A., both commercial and non-profit. Common feature is that they are managed by methods typical for commercial market sector; however their market activities serve the social purpose. In the European Union, a definition by European institutions and documents is important for harmonisation of approaches in identification of social enterprises. Project activities of the research company EMES0 and its current international project International Comparative Social Enterprise Models (ICSEM) are important both in European and global context. The ICSEM project is scheduled for period of 2013 to 2017, with participation of more than fifty countries worldwide. The Czech Republic is represented by Charles University in Prague, Department of Civil Society Studies of the Faculty of Humanities. Current results of the ICSEM project demonstrate several models of social enterprises that are represented in several countries, including Latin America and Eastern Asia.0 First results were presented during the 5th international research conference of social enterprises called „Building a scientific field to foster social enterprise eco-system“ held in Helsinki in July 2015. EMES defines so called ideal type of a social enterprise (Defourny, Nyssens, 2012) and thus introduces a methodology for European and global research of social enterprises. Management of "ideal type" of a social enterprise is based on multiple sources funding, with participation of a wide range of stakeholders; the enterprise fulfils several different objectives. Indicators used in the research of social enterprises are divided in three subgroups. Defourny and Nyssens (2012) defined this classification in order to highlight particular forms of management specific for an ideal type of the social enterprise. In addition to social and economic perspective, aspect of participatory management of the enterprise is monitored. Social aspect
Mission of a social enterprise is to operate activities benefiting the society or specific group of people. At the same level, main feature of social enterprises is an interest to promote corporate social responsibilities at local level.
Social enterprises emerge as result of common activities of citizens sharing a certain need or intention. Such collective dimension has to be preserved although enterprises are managed by elected individuals or group of managers.
Social enterprises also include those enterprises that do not follow a condition of an absolute ban of profit redistribution; for instance co-operatives in certain countries may redistribute profit to stakeholders in a limited extent (Defourny, 2001). One of the main objectives of social enterprises is to serve community or specific group of people. Economic activities are driven primarily by an effort to deliver social benefit to the community (i. e. social benefits are not intended as by-product only). Comparably, an interest to support a sense for social responsibility at local level is also a main feature of social enterprises. Social enterprises become an outcome of collective dynamics. They emerge voluntarily from initiative of citizens who are part of community or a group with similar needs or interests; a collective dimension of social enterprises has to be preserved. Social enterprises are not only organisations following a condition of an absolute ban of profit redistribution, but also those who may redistribute profit to their stakeholders. Economic aspect
The main objective of social enterprises is not, opposed to traditional non-profit organisations, an engagement in charitable activities or redistribution of financial flows (which is the case of foundations). They produce products and provide services to people. Economic activity is one of the main grounds of their existence.
Those who found social enterprises anticipate certainly or partially risks related to economic activities. Opposed to majority of public institutions, their financial sustainability and viability depend on effort of their members and employees to secure necessary resources.
Similarly to non-governmental non-profit organisations, social enterprises may combine monetary and non-monetary resources, paid and voluntary work. However, activities of social enterprises require at least a minimal share of paid work. Social enterprises continuously manufacture products or provide services to people. Ongoing provisioning of goods and /or services represents one of the main grounds of their existence and delimits them against non-governmental non-profit organisations providing charitable activities or redistribution of financial flows. Founders of social enterprises bear full or partial economic risk associated with their emergence. Opposed to majority of public institutions, financial viability of social enterprises depends on effort of members and employees to secure sufficient resources. Social enterprises may combine monetary and non-monetary resources, paid and voluntary work; however activities of social enterprises require at least a minimal share of paid work (Defourny, 2001). Aspect of participatory management of the enterprise
Social enterprises are voluntarily created by groups of people who manage them through plans determined by themselves. Adequately, they may depend on public subsidies. However, they are not managed directly or indirectly by public institutions or other organisations (associations, private companies, etc.). They have decisive voice, i. e. they may extend or terminate their operation.
A principle „one member, one vote“ should be respected in the decision-making process or at least a power of the voting right should not depend on amount of invested capital. The decision-making process is rather democratic.
Co-operation with clients or customers, involvement of all stakeholders in the decision-making process and participatory management represent important feature of social enterprises. In number of cases, a support of democratic principles at local level through economic activities represents one of the objectives of social enterprises. Employees, clients or target group, volunteers, donors, etc. may participate. They may be involved either formally or informally, however the main purpose is supporting democratic principles at local level by means of economic activities. Defourny (2001) states that these defined indicators represent new or revived manifestation of civic society. In West Europe, concept of social enterprise emerges within a tradition of social economy and non-profit sector. Entities from both these sectors change their structures, offer new types of products and services and seek new pathways towards diversification of own resources. New types of entities focusing on achievement of social objectives do emerge. 207.2 Czech social enterprisesThis article is following the research conducted in 2010 – 2015. Determination of Social Enterprises is based on secondary analysis of data from research studies performed in 2010, 2013, 2014 and 2015. These studies, through research case studies enhanced by in-depth interviews with managers and employees, map the area of social entrepreneurship in the Czech Republic. The research elaborated on a representative sample of 79 social enterprises (13 enterprises in 2010, 16 in 2013, 27 enterprises in 2014 and 23 enterprises in 2015), that were selected on the basis of EMES foreign definition. As demonstrated in the research, the Czech social enterprises are private entities independent from the state, including:
208.3 Management in social enterprisesManagement and decision-making in this type of enterprise is not based on a level of invested capital; a democratic style of management and involvement of all stakeholders (employees, clients, customers, etc.) play a decisive role. Social enterprises usually do not distribute the profit, or distribute profit only partially, sometimes rather a large share of the profit, however an effort to maximise the profit is never their ultimate goal (Dohnalová 2010). From the perspective of economic activities of selected enterprises, they are entities operating in social services, services for households, gastronomy, retail, chemical production, etc. Social enterprises in great extent employ persons disadvantaged on the labour market. Role of management is important in social enterprises, since it follows from the social enterprise definition stated above, primarily highlighting the following:
Performed research in social enterprises revealed that the meaningfulness of performed work is the strongest motivation for employees of these enterprises. Higher level of autonomy and creativity represents another specific feature of motivation for employees in social enterprises. Therefore, management method of social enterprises seems to be rather democratic up to liberal, involving a high level of co-operation. This establishes a ground for employees to develop and implement creative ideas and arrangements and enhances an environment allowing self-realisation and work satisfaction. An importance of presence of well-operating human resources management has been confirmed during in-depth interviews conducted with the management and employees in social enterprises. Well set management processes support a sense of belonging among employees on one hand and on the other hand set a system, delegate authorities and responsibilities and eliminate duplicities. Top management focuses on achievement of goals of the organisation as such, is a vehicle of the vision and strategic operation of the social enterprise. Middle management focuses more on daily operations and support of subordinates. Management in non-profit organisations prefers democratic up to liberal style, with a high level of participation of employees. Up to 85% of enterprises involve employees in the decision-making process, which is a positive finding. Human resources management in the social enterprises plays a key role. A manager is a vehicle of the vision and mission of the social enterprise and his/her role is to support and motivate both employees and volunteers to deliver this mission. 209.ConclusionThis article focuses on human resources management in social enterprises. A long-term qualitative research performed in 2010 – 2015 established that the Czech social enterprises usually emerge in the form of public service companies, associations (civic societies) and religious legal persons, performing economic activities in order to fund their mission or finding employment for clients. Some co-operatives, commercial companies and sole traders also act as social enterprises. Management style in social enterprises corresponds best to a democratic up to liberal style, with a high participation of employees and volunteers. Ability to be involved in management, a certain level of freedom in decision-making and creative thinking play important role for people in social enterprises. A manager is a vehicle of the vision and mission of the social enterprise and his/her role is to support and motivate both employees and volunteers to deliver this mission. Innovative approach and creativity of employees (which are supported by a democratic style of management) are also emphasised. 210.ReferencesBorzaga, C., & Defourny, J. (2001). The emergence of social enterprise. London: Routledge. Defourny, J., Nyssens, M. (2012). Conceptions of Social Enterprise in Europe: A Comparative Perspective with United States. In Gidron, B., Y. Hasenfeld. Social Enterprises. An Organizational Perspective. Palgrave Macmillan [online]. [cit. 2015-08-04]. Available from: http://orbi.ulg.ac.be/bitstream/2268/147266/1/Defourny%20Nyssens%202012%20in%20Gidron%20%26%20Hasenfeld.pdf Defourny, J., Nyssens, M. (2011). Approches européennes et américaines de l’entreprise social. Revue internationale de l'économie sociale: Recma. Dohnalová, M., & Legnerová, K. (2014). Výzkum sociálních podniků v ČR - 2014. Praha: Pro Fakultu humanitních studií Univerzity Karlovy vydal Výzkumný ústav práce a sociálních věcí. Dohnalová, Marie a kol. (2009). Sociální ekonomika - vybrané otázky. - 1. vyd. - Praha: VÚPSV. Dohnalová, Marie. (2008). Sociální ekonomika - nová oblast výzkumu v České republice. - In: FÓRUM sociální politiky, Roč. 2. Dohnalová, Marie. (2010). Sociální ekonomika a sociální podniky v České republice. - In: FÓRUM sociální politiky, Roč. 4, c. 5. EMES Focus Areas. (2015). Focus Areas. Emes European Research Network [online]. [cit. 2015-08-04]. Available from: Hulgaard, L. (2010). Discourses Of Social Entrepreneurship – Variations of The Same Theme? Dennmark: Centre for Social. [online]. Available from: http://www.socioeco.org/bdf_fiche-document-121_en.html Nyssens, M. (2006). Social enterprise at the crossroads of market, public policy and civil society. In: Nyssens, M. (ed.) Social Enterprise. London and New York: Routledge, 2006. S. 315-319 Nicholls, A. (2010). Social Enterprise and Social Entrepreneurs. In Edwards, M. (ed.). The Oxford Handbook of Civil Society. Oxford: Oxford University Press, 80 – 92. Peattie, K., Morley, A. (2008). Eight paradoxes of the social enterprise research agenda. Social Enterprise Journal 4 (2). Šloufová, Romana - Dohnalová, Marie a kol. (2010). Sociální podniky v ČR. - 1. vyd. - Praha: Výzkumný ústav práce a sociálních věcí. Šloufová, Romana - Dohnalová, Marie a kol. (2013). Výzkum sociálních podniků v ČR- 2013. - 1. vyd. - Praha: Výzkumný ústav práce a sociálních věcí. The 5th International Research Conference on Social Enterprise. (2015). Building a scientific field to foster social enterprise eco-system. Availabe from http://emes.net/events/conferences/5th-emes-international-research-conference-social-enterprise/
Kateřina Legnerová University of Economics in Prague Winston Churchill Square, 4 130 67 Praha 3 katerina.legnerova@vse.cz Marie Dohnalová Charles University in Prague Faculty of Humanities U Kříže 8 158 00 Praha 5 marie.dohnalova@fhs.cuni.cz Directory: wp-content -> uploads -> 2015 2015 -> Police Militarization 2015 -> 2015 ihbb championships: hs history Bowl Round 4 – Prelims First Quarter 2015 -> Wrtp/big step · 3841 W. Wisconsin Ave., Milwaukee, wi 53208 2015 -> Rao bulletin 1 December 2015 html edition this bulletin contains the following articles 2015 -> Darton College 2015 -> Training Workshop on Planning and Implementation of Multi-Sectoral Development Programme (MsDP) in Bihar Date : 6th 2015 -> Rao bulletin 15 June 2015 html edition this bulletin contains the following articles 2015 -> Rao bulletin 1 September 2015 html edition this bulletin contains the following articles 2015 -> Rao bulletin 1 August 2015 html edition this bulletin contains the following articles 2015 -> Science, and transportation united states senate Download 2.73 Mb. Share with your friends:
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