Power Structures

Types of Power Structure.

A two tier power structure is the basis of the majority of legal forms, this consists of a small group of individuals who are responsible for the day-to-day running of the organisation, often called a board of directors, board of management, management committee or a board of trustees, but are accountable to a wider group of individuals often referred to as members or stakeholders.

Social enterprises may develop this structure in numerous ways to suit their particular social enterprise, structures adopted by most social enterprises divided into four groups:

Oligarchy
The members of the organisation are the same people as the board members and are able to make new appointments to the board without any consultation with others required. When someone ceases to be a board member they also cease to become a member of the organisation.

A straightforward structure and is common in many social enterprises especially those that are new and still small.

Representative Oligarchy

This structure is for organisations that wish to have other organisations rather than individuals as their members, for example Local authorities, charities.

A member of each organisation is then elected to sit on the board.

Elected by membership

This structure is often used by organisations that define themselves as co-operatives. The International Co-operative Alliance Statement on the Co-operative Identity describes a co-operative as an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. An organisation that falls within this definition can use many different legal forms.

Appointed board

Board members may or may not board members of the organisation. They are appointed to provide particular knowledge or skills to the board. Board members should be recruited in the same fashion as recruiting staff.

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