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Complexity of Social Economy Management PDF Print E-mail
Written by Hugh Morrow   
Monday, 28 May 2007

Managing an organisation in the Social Economy is more complex than managing a commercial organisation of a similar size.  Social Economy organisations face all the same challenges that organisations in the for-profit sector face.  In addition they have to deal with:

  • more variables, with
  • greater uncertainty over
  • longer timeframes.

For example, in the area of Human Resources, not only do social economy firms have to deal with the normal challenges of a workforce.  But they have to do so with reduced salaries and resources.  Further, managing volunteers is a lot harder than managing a similar workforce of full-time employees.

Equally, as one moves through each of the key areas of an organisation the same pattern emerges ... more variables, uncertainty and timeframes.

The field of performance assessment is possibly the best example.  In many areas of the Social Economy accurate assessment of the impact is very difficult if not impossible.  The disconnect between the inputs (funding) and the outcomes (the ultimate purpose) makes life very difficult for all social economy organisations. 

 
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