Social Economy: Analyzing the ABC Agency Case Study (BUS8400)

This assignment provides a detailed analysis of the ABC Agency, an organization within the social economy focused on delivering employment and training programs. The case study examines the agency's institutional structure, challenges stemming from government changes, funding issues, and shifts in program models. The analysis identifies the agency's non-profit structure, highlighting its reliance on volunteer support and program grants. The challenges include changes in government contracts and the implementation of a new program model that mandates participation from social assistance recipients. The assignment suggests strategies such as adapting the organizational structure to align with new governmental models, prioritizing employee management, and potentially transitioning to a social enterprise model to attract skilled managers. The study concludes with recommendations to help the ABC Agency navigate the changing business environment and achieve its goals. The assignment also includes references to relevant literature.

Running head: SOCIAL ECONOMY
SOCIAL ECONOMY
Name of the Student
Name of the University
Author Note

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Table of Contents
Answer to Question 1......................................................................................................................2
Answer to Question 2......................................................................................................................2
Answer to Question 3......................................................................................................................3
References........................................................................................................................................5

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Answer to Question 1
The ABC Agency can be understood to be functioning to deliver employment and
training programs to the different individuals who are not employed. The institutional structure
of the firm tends to mirror the institutional structure of a non-profit organization. The Board of
Directors can be understood to be at the head of the organization (Bauler, Pel & Backhaus,
2017). These directors have been hired in a voluntary basis that tends to meet on a monthly basis.
These individuals tend to guide the human resource and the financial obligations off the
organization. In addition to this, 50% of this board level tends to represent the local unions and
hence, this organization tends to function with an ample opportunity to the different youth and
related individuals who are in search of an employment opportunity (Visser, 2017). Each month,
the firm has more than 100 voluntary employees working for it and in line with this, it becomes
increasingly crucial for the firm to remain responsible and see to it that, the agency tends to pride
itself in remaining responsiveness to the needs of the current as well as the formal clients (Spear,
Defourny & Laville, 2018). The given structure of the firm can be understood to be the flat
structure whereby each of the employees are given the autonomy to carry out their own duties
but they remain united with respect to the overall objective of the firm. The functioning of a non-
profit organization can be taken to be very difficult because the different employees are not paid
adequately and in addition to this, they are not being given the requisite incentives which would
instead motivate them to perform better. Hence, it is due to this reason that the firm has been
facing a large number of problems (Quarter, Mook & Armstrong, 2017). The answer to the
particular solution can be rightfully comprehended with the help of the fact that they are engaged
in a social service and the directors do not draw any prior payment.
Answer to Question 2
Challenges being faced by the organization
As the business environment is very dynamic in nature, the firm faces a large number of
challenges while functioning in the business environment. The different challenges which are
being faced by the organization can be understood to be as follows:
1. The change in the government

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As understood from the case study, there has been a considerable change in the
government with respect to the fact that, the overall structure of the firm can be understood to
undergo some change (Visser, 2017). The firm has been notified that, all the existing contracts
which take place in regard to the provincial government and related municipal will undergo a
great change. This means the problem would then lead to a funding problem as 80% of these
funds come from the particular contracts.
2. New program model
The new program model will lead to the participation of the Agency in all the Social
Assistance recipients and would be mandated to ensure that they are participating in all
employment programs so that they will successfully able to receive the income support benefits.
The individuals would not be inclined to choose amongst the different employment offers but
will instead be required to undertake the employment opportunities which would be provided to
them (Waters-Lynch & Potts , 2017). If any kind of an employment offer is declined then, this
would lead to a loss of the income support. In addition to this, as per the case study, the agencies
who are delivering the employment programs through their municipality would not be paid on
the grant model which was followed earlier. The agencies would be provided with the payment
based on the employment secured and additionally the tenure of the employees as well.
Answer to Question 3
Strategies for the scenario
Hence, after examining the scenario which is being faced by the organization, the following
recommendations can be made to the firm which would assist in ensuring that, the overall goals
of the firm can be achieved. The recommendations have been listed down as follows:
1. The structure of the firm would require undergoing a considerable change which will
enable in ensuring that the new governmental models and related concepts can be
matched with sufficiently (Mook et al., 2015). In line of this, it is important for the
organization to ensure that the change management of the organization can be matched
accordingly with the overall change in the external environment of the firm. Hence, the

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rules which have been laid down by the government needs to be matched accordingly
with the firm and they will be required to follow the employment rules.
2. Additionally, the priority needs to be given to the different employees in a manner such
that they are successfully being able to manage the functioning of the firm (Muldrew,
2016). This is because, because of the new legislative, the firm would be required to take
in the opportunity at the first instance only and therefore, priorities need to be set
accordingly as this will contribute towards ensuring that the organization is being able to
achieve its objectives in the right manner (Spear, Defourny & Laville, 2018).
3. Moreover, the firm may also opt for changing the overall structure of the organization as
currently it is operating as a nonprofit organization and this is the reason why there is no
stake involved in the organization and it makes the functioning difficult (Moulaert, 2016).
If the firm is able to change its structure into the structure of the social enterprise then in
this scenario, it will be able to attract the different managers who would be willing to go
an additional way to meet their organizational objectives. In addition to this, the firm
would also be required to see to it that it is successfully able to make the different
employees to get an employment (Quarter, Mook & Armstrong, 2017).
Therefore, by following the given recommendations, the firm would be able to see to it that it is
being able to face the changing business environment and undertake measures to attain success
and be able to attain the different objectives it has set out for itself.

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References
Bauler, T., Pel, B., & Backhaus, J. (2017). Institutionalization processes in transformative social
innovation: Capture dynamics in the social solidarity economy and basic income
initiatives. In Social Change and the Coming of Post-Consumer Society (pp. 78-94).
Routledge.
Mook, L., Whitman, J. R., Quarter, J., & Armstrong, A. (2015). Understanding the social
economy of the United States. University of Toronto Press.
Moulaert, F. (2016). Social innovation: Institutionally embedded, territorially (re) produced.
In Social innovation and territorial development (pp. 27-40). Routledge.
Muldrew, C. (2016). The economy of obligation: the culture of credit and social relations in
early modern England. Springer.
Quarter, J., Mook, L., & Armstrong, A. (2017). Understanding the social economy: A Canadian
perspective. University of Toronto Press.
Spear, R., Defourny, J., & Laville, J. L. (Eds.). (2018). Tackling social exclusion in Europe: The
contribution of the social economy. Routledge.
Visser, M. A. (2017). A floor to exploitation? Social economy organizations at the edge of a
restructuring economy. Work, employment and society, 31(5), 782-799.
Waters-Lynch, J., & Potts, J. (2017). The social economy of coworking spaces: A focal point
model of coordination. Review of Social Economy, 75(4), 417-433.