Terms:
MANAGEMENT
main office, ruling, management, business leadership, business organization, handling, leadership, organizing, administration, directing, guidance, managing the company`s business.
MANAGER
director, conductor, boss, master, manager, headman, head, program that controls the system, headmaster, operator, leader, chief, governor, principal.
If we add all that is mentioned so far, we can conclude that the cooperative is an entrepreneurial form of organizing legal entities and persons that can perform different types of activities, permitted by law. This definition presents only the basic frame of entrepreneurial activity of the cooperative, its body, yet what makes each cooperative or other economic entity special is people that manage
the cooperative and act through it, its soul. The next part of the publication will present the cooperative through people that manage it, cooperative managers, i.e. cooperative leaders, the cooperative engine, we shall get an inside look.
Observing the cooperative and its activity in this way, we can single out several basic types of cooperatives with specific attributes and they are::

1. uninventive cooperatives
they are not uninventive (uncreative, not witty, unimaginative) because they lack capable and creative people or managers, but because they partly function with the brakes. The brakes are constructed deep inside, and quite often also outside. This kind of cooperatives lack stimulating entrepreneurial environment. They function on the principle that life goes on, usually “idle-drive”  principle – quantity is yet considered through, quality is no subject at all.

2. imitative cooperatives
are kind of cooperatives that did not succeed to develop the attitude toward work that produces new ideas and new solutions. They observe the actions of others and try to transfer and use their ideas in their own business. They do not invent or create something new, but successfully imitate the work of others. They progress with the medium pace – no rush, and no falling behind. They are considered firm cooperatives.

3. innovative cooperatives
do not expect to be told what is legal and what is not; guided by expert and scientific cognition, they discover new paths to follow (nothing illegal, of course). The administration is an impediment for them, therefore they ask the government for special status in order to protect themselves from those that hinder their development.
There are only few such cooperatives in our and other countries. They are the cooperatives of the future. That is the cooperative for the 21st century that we aspire to.

“ In order to transform the existing cooperative or cooperative that is to be established into the innovative cooperative, it is necessary to provide quality management, i.e. management of the cooperative – cooperative management.

What are the features of the quality manager?
The management research results are systematized in numerous theories and models. Theories differed, primarily in importance they contributed to specific elements that are relevant for successful management. Some authors considered personality features of the leader to be the most important, others stressed the leader behaviour, others believed that the situation when management happens has the crucial role. The current stage of development the management theory convinces us that all factors have a significant influence to the successful management. Depending on the preference for certain elements, the theories are named as:

  • Theory of individual characteristics
  • Behaviourist theory
  • Contingency theory and
  • Theory of charismatic leadership.

Here is the theory which is considered fully compliant with the management of our cooperative society for the 21st century.

Theory of charismatic leadership
Unlike the leaders that are subject to most management theories, and that lead their employees in a way of organizing their roles and tasks, there is also a different type – charismatic leaders.


They do not force their employees, they inspire them. The effect of their capability to their employees is such that they will relinquish partial interests for the good of their company and their leader. Such leaders can develop a sense of worth of the employees and highlight the value of task to such a degree that the employees express their willingness to work with words: “I would do everything for him, if necessary, into the fire.” He is like an excellent war commander that never says FORWARD but AFTER ME!!
The charismatic leadership research singled out several features of charismatic leaders:

  • Vision. Charismatic leader has a clear idea of the goal he strives to in the future, and which is significantly better from the one realised so far.
  • Faith in the vision - the distinction of the charismatic leader is a strong commitment to the vision, associated with high risks and sacrifices.
  • Making a difference - such leaders do not accept status quo, but induce radical changes.
  • Unusual conduct - charismatic leaders act unconventionally, often oppose current standards.
  • Self-confidence - charismatic leaders are completely confident in their judgment and capability to realize an idea.


Numerous researches pointed out the positive influence of a charismatic leader to his employees and their efficiency. Among other, the research results show that the employees are:

  • more aware of the importance of their work
  • willing to work longer and harder
  • confident of support of their leader
  • more self-confident
  • achieve better operating results
  • more satisfied than the employees that are led by a successful, but not charismatic leader.

What all agree upon is that successful leadership means quality achieved objective and satisfaction of the employees. And the successful leadership is determined by four groups of factors: features, expertise, leadership style, situation of management and characteristics of employees. The conclusion that follows explains that the manager will successfully lead the cooperative if:

  • possesses appropriate character and professional qualities
  • knows how to choose appropriate leadership style
  • creates appropriate work situation
  • knows how to find and develop the best in his people and lead the cooperative business in such a way to achieve the following objectives:
  • increase revenue and cost reduction
  • provide cheaper funding, like lower interest rates on borrowed funds
  • accelerate the turnover of capital
  • reduce personal costs.

And finally, taking all above mentioned into account, we can conclude that the management is a creative solution of the problems, conducted by the managers with following characteristics:

1. innovation
2. taking risks
3. self-confidence
4. hard work
5. goal orientation
6. responsibility

You are here: Home Management and cooperative