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The New Mechanism for Performance Evaluation of the Co-Operatives

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  • Chamaru De Alwis

    (Faculty of Management and Economics, Tomas Bata University, Czech Republic)

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    Abstract

    Co-operatives are exceptional type of organization because of their purpose for existence. They are running business based on predetermined norms called “Co-operative value and principles”. In point of fact, if they depart from this so-called value system, there is no cooperative continuation hereafter. One of the special features behind this body is the owner (member) plays dual role with it, as an owner and the foremost customer segment. Because of those surroundings they cannot construct profit maximization as an organizational objective. But really, they have to earn some profits for the survival and long term advancement of the unit. Because of this foundation and special purpose for existence, they can be recognizing as “Co-operative business” by combing the purpose of the entity and its operation. Thus performance of this special entity must be measured through unique mechanism appropriate to the specialty. This article suggests new mechanism for the performance evaluation named “Co-operative performance matrix” by combining business and co-operative value performances.

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    Bibliographic Info

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    This chapter was published in: Chamaru De Alwis , , pages 817-824, 2012.

    This item is provided by International School for Social and Business Studies, Celje, Slovenia in its series Knowledge and Learning: Global Empowerment; Proceedings of the Management, Knowledge and Learning International Conference 2012 with number 817-824.

    Handle: RePEc:isv:mklp12:817-824

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    Web page: http://www.issbs.si

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    Keywords: co-operatives; values; principles; financial performance; value performances;

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