Pomelova Model

The Pomelova Model (Помелова Модель) is a system of economic governance that is used by firms within Arvor. Devised in 7564 RH by Galina Andreevna Pomelova, one of the Founders of the socialist state, it has become standard practise throughout the nation and reflects its consumer socialist economic model. It is considered the best-known form of the co-operative business model currently in practice worldwide.

Overview

The co-operative firm concept is one that first developed during the Industrial Revolution. It was experimented with in various firms over the years with various levels of success. It advocates achieving economic democracy through worker ownership on a national scale. The concept was further explored by Pomelova and Aleksandr Belikov, who made various modifications to fit it to the principles and stated aims of socialism. The purpose of the Model, according to the writings of Galina Pomelova, is "building a co-operative economy which is one step on the journey to helping harness the wealth we all collectively create."

Seven Principles

Voluntary and open membership

Co-operatives are voluntary organisations, open to all persons able to use their services and willing to accept the responsibilities of membership without discrimination.

Democratic member control

Co-operatives are democratic organisations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary co-operatives members have equal voting rights (one member, one vote).

Member economic participation

Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is the common property of the co-operative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-operative; and supporting other activities approved by the membership.

Autonomy and independence

Co-operatives are autonomous organisations controlled by their members. They may enter into agreements with other organisations if and when the members choose, or raise capital from external sources, doing so on terms that ensure democratic control by their members and maintain their co-operative autonomy.

Education, training and information

Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their co-operatives. They inform the general public - particularly young people and opinion leaders - about the nature and benefits of co-operation.

Co-operation among co-operatives

Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.

Concern for community

Co-operatives work for the sustainable development of their communities through policies approved by their members.

Types of business

There are two primary categories of businesses within Arvor: the co-operative and the proprietorship. The former encompasses all large and medium-sized firms, while the latter typically is small businesses with only a local presence.

Co-operative

The co-operative firm is a business where all employees collectively own and manage the enterprise and have direct involvement in its operations. This structure was designed in Arvor and has become the standard large business model for consumer socialist business. There are several subtypes of co-operatives:

• Production co-operative: производственный кооператив or PK, these firms specialise in the production of various goods or materials used by other firms and by the populace. Examples include PK SEVMASH, PK LIRMEKH, and the state enterprises GP Arvostal and GP Biodizprom.
• Services co-operative: сервисный кооператив or SK, these firms specialise in various services, such as telecommunications, retail, and various personal service fields. Examples include SK Arvotel, SK Gold Ribbon, and SK IG Tabulation.

Proprietorship

The proprietorship is a business structure designed for small businesses, such as coffee shops, a chemist, or a bookstore, such as you would find on any town or village's high street. There are two subtypes of proprietorships:

• Sole proprietorship: единоличное владение or YV, these are small businesses where one individual owns and operates their business.
• Co-proprietorship: совместное владение or SV, these are small businesses where two to four (typically) individuals jointly own and operate their business.

Co-operative structure

The structure of a co-operative business is such that, despite some members being in positions of higher authority, the titles and structure remain egalitarian and all among the workforce can attain higher positions with seniority and experience. In this way, all workers are invested in the success of the firm.

Administration

Every co-operative has a group of senior officers who form that firm’s administration committee (административный комитет). They are responsible for top-level oversight and policy, in keeping with the collective decisions of the workers. The membership of the committee is elected to their positions by the workers' council of the firm and serves a five-year term. Each director must be an experienced member of the firm with a minimum of ten to fifteen years of experience in the division they are being considered for directorship over. Each is responsible for a specific aspect of the co-operative's work and activities. These officers typically include:

• Co-ordinating director
• Directors
  • Accounts (accounting and bookkeeping, payroll, and finance)
  • Compliance (regulatory compliance)
  • Distribution (shipping and delivery services)
  • Information (network and information maintenance)
  • Innovation (research and development)
  • Legal affairs (legal consultation and oversight)
  • Marketing (advertising and public outreach)
  • Operations (overall operational oversight)
  • Personnel (recruitment, training, and benefits management)
  • Procurement (purchasing and supply)
  • Production (manufacturing if a production co-operative)
  • Quality (quality assurance, product testing and review)
  • Sales (client services and support)
  • Security (physical security and safety services)

Co-ordinating team

What other nations refer to as “middle management” is called the “co-ordinating team” in an Arvorian firm. They oversee day-to-day activity within departments and sections of each division of the firm. Each co-ordinator enters their position through a combination of service and experience and is approved into their post by the members of the department.

• Senior co-ordinators
• Co-ordinators

Labour group

The rank-and-file staff of any Arvorian firm, the labour group is responsible for performing the majority of daily tasks. They comprise the largest percentage of a firm's personnel and thus have the greatest say in its activities. Each firm has a workers' council which meets monthly for reviewing business and voting on important issues. The bylaws of a co-operative make it clear that the authority of the council is the final voice in the firm's affairs. In the event of a dispute or conflict of interest, the matter can be referred to the Ministry of Labour and Welfare for arbitration.