Contemporary performance measurement and management (PMM) in digital economies

The rate of change in the world is increasing both in scope and magnitude by rapidly developing digital technologies. The challenging problem for performance measurement and management (PMM) in the digital era is twofold: firstly, the constant change in the external environment is compelling PMM to be more dynamic. Secondly, organisations have to deal with different varieties and volumes of data to create competitive advantage. The aim of this paper is to explore how PMM models and practices should be renovated to be resilient and reflect advances in the digital economies. Literature review on the state of the art was conducted covering the issues faced by organisations in the digital economies and their relevance to PMM. A case study was conducted to explore the practitioner perceptions of dealing with the issues faced in digital economies as well as to understand how they are making changes to their PMM. The key findings from the study include: (1) Organisations should refocus their measurement efforts to incorporate evaluation of their performance over a wider network involving various stakeholders. (2) Organisations need to understand how technological developments could create competitive advantage through their strategy and deploy it to relevant positivistic and behavioural measures.     

Re-conceptualising talent management and development within the context of the low paid

Those working in organisations have choices to make associated with not only the goods and services they produce but also their wider social and economic impact. The number of employees in low-skilled/low-paid jobs and the high proportion of companies adopting business strategies based on low-specification goods and services are a concern for many developed and developing economies. Addressing this problem is not traditionally the concern of Human Resource Development; however, we argue that through exploring the role that a wider, more balanced approach to Sustainable Talent Management and Development (S-TMD) may play within the context of the low skilled in the UK provides a crucial link to enhancing an organisation’s performance and responsibility to society. At the heart of this approach lies a shift to appreciate the collective endeavour of work practices, an enhanced role for stakeholders and identification of, and participation in skills ecosystems to support sustainable development. The paper identifies the opportunity for S-TMD to move from a predominantly individualist, managerial and unitarist understanding to one grounded in the value of tacit and embedded development processes undertaken to reflect a pluralist, multi-voiced approach to understanding of a skills ecosystem.     

Dealing with Ethical Dilemmas in Organizational Change Processes

Several theories exist on how managers think aboutethical responsibilities in a business environment.Some stress the economic way of thinking and explainwhy there is no space for moral reasoning in abusiness environment. Others claim that in a businessenvironment also moral considerations can play animportant role. In this article, we will explore theway managers have actually dealt with potentialdilemmas in organizational change processes,especially changes with drastic consequences foremployees. Do managers consider moral arguments? Dothey feel a moral responsibility towards theiremployees? And in what way do they include a moralresponsibility in the decision process and itsoutcomes? These questions were investigated throughcase studies in two organisations and interviews withsix managers in other companies. The framework whichis used in the research will be described and the mainresults of the field-research will be presented. Wedid find that managers actually strived to some extentfor fair and morally responsible solutions in dilemmasituations, but in another way then we expectedbeforehand. Managers did not base their acting onmoral arguments. Instead they used a more pragmaticapproach wherein acting in a morally responsible wayis based on strategic arguments, such as the positiveeffects for the organisation in the long run.     

Strategic change and organisational restructuring: How managers negotiate change initiatives

This study examines the organizational changes and varied response amongst managers to those changes in seven subsidiaries of multinational apparel firms. Because of intensified competition from low wage economies, such firms have been forced to restructure production processes to heighten both their productive efficiency and attain greater flexibility at the plant level. Much of this change has involved the introduction of high performance work practices (HPWP), a central focus of much recent scholarship on post-Fordism. Drawing from several qualitative strategies, this paper focuses on the role of managers as agents of strategy implementation and discusses how they negotiate, accept or resist such changes. We describe the failure to implement HPWP as some firms seek efficiency gains from work restructuring rather than broader effectiveness goals that would have deepened employee participation. In doing so we theorise about structural impediments to organisational innovation, the operational constraints that render some managers change recipients rather than change agents, and what this might tell us about micro-political strategies within large organisations as key actors negotiate a new organisational reality.     

Asian Corporates: Willing Participants in the Reporting Revolution?

Asia represents one of the most diverse regions of the world in terms of culture, politics and economies. Not surprisingly, there is a comparative variety in who is publicly reporting, where and why. As might be expected, those countries with stronger, more mature economies are the regional leaders, notably Japan, South Korea and Hong Kong. Japan is far ahead in terms of numbers of companies reporting and also has two award schemes in place to reward best practice and innovation. Both South Korea and Hong Kong are increasingly reporting, but with limited sophistication and an emphasis on environmental issues.With the development of the Global Reporting Initiative (GRI), participating Asian companies are able to access a global network of reporting organisations and substantial collective experience. A number of Japanese companies have already cited using the GRI framework in preparing their reports, whilst five Asian companies are involved in the current GRI feedback process, including one in Singapore and one in Thailand.The region's reporting pioneers are being driven by globalisation and international peer pressure. Moreover, whilst Asian companies have been notorious for limited corporate governance and transparency in their financial affairs, business models are changing and this evolution is likely to promote better disclosure not only of fiscal performance but also on environmental, health, safety and social issues.     

Leadership and change in the Tasmanian environment movement

Semi-structured interviews with key environmentalists conducted in 2002 suggest strategic decision makers, organisational spokespeople and Green politicians are key leaders of the Tasmanian environmental movement, although charismatic leadership persists following movement routinisation. Routinisation is associated with the rise of non-protest environmental movement organisations addressing mainstream issues such as soil erosion, while protest oriented organisations champion the protection of old growth forests. Disproportionate federal government funding of non-protest organisations underpins tensions between movement leaders. An environmental council representing the diverse interests of the groups and organisations comprising the movement mitigates tensions and strengthens leader integration. Entrenched leaders from the ‘baby boom’ generation hinder the rise of younger leaders. Leader mentoring schemes adopted by movement organisations offer a potential solution to leadership succession in a mature social movement.     

A study of the use of business improvement initiatives: the association with company size and level of national development

This paper investigates the awareness, use and effectiveness of improvement initiatives in organisations of different sizes and in different countries. In particular, comparisons are made between large firms and small and medium enterprises (SMEs), between organisations in the developing and developed worlds and between organisations in China and India and the rest of the developing world. A questionnaire survey of 453 organisations across 44 countries was conducted with the findings indicating that there are significant differences in comparability of tools. For some tools there are no significant differences between developed and developing countries as well as between large organisations and small organisations. For other tools, there are significant differences with organisations in developing countries, in general, more aware and more likely to use business improvement initiatives when compared to organisations in developed countries. Similarly, organisations in China and India have a higher awareness of and are more likely to adopt improvement initiatives when compared to the rest of the developing world. Finally, larger firms are more aware and more likely to use improvement initiatives when compared to SMEs.     

Sickness presenteeism and sickness absence over time: A UK employee perspective

This paper examined the influence of sickness presenteeism (SP), defined here as going to work despite illness, and sickness absenteeism (SA) behaviour on employee psychological well-being, work performance and perceived organisational commitment in a sample of 552 UK workers. Self-report measures were administered on 2 occasions, separated by 1 year, to employees from 4 public sector and 2 private sector organisations. Structural equation modelling was used to evaluate simultaneous influences of SP and SA on outcomes over time. Results suggested that employees reporting SP reported lower work performance in comparison to those reporting no SP, when measured concurrently but not over time. Employees reporting any SP in the previous 3 months showed relatively reduced psychological well-being but there was no significant association over time. Six or more days SP was associated with a reduction in employee perceptions that their organisation was committed to them, concurrently and over time. There were no significant influences of SA on any outcome measure. Our results strengthen previous research and suggest that SP, but not SA, has implications for individual outcomes. The findings have implications for the way organisations manage their sickness absence systems.     

Strategy-proof and Symmetric Social Choice Functions for Public Good Economies

We study economies with one private good and one pure public good, and consider the following axioms of social choice functions. Strategy-proofness says that no agent can benefit by misrepresenting his preferences, regardless of whether the other agents misrepresent or not, and whatever his preferences are. Symmetry says that if two agents have the same preference, they must be treated equally. Anonymity says that when the preferences of two agents are switched, their consumption bundles are also switched. Individual rationality says that a social choice function never assigns an allocation which makes some agent worse off than he would be by consuming no public good and paying nothing. In Theorem 1, we characterize the class of strategy-proof, budget-balancing, and symmetric social choice functions, assuming convexity of the cost function of the public good. In Theorem 2, we characterize the class of strategy-proof, budget-balancing, and anonymous social choice functions. In Theorem 3, we characterize the class of strategy-proof, budget-balancing, symmetric, and individually rational social choice functions.     

Navigating the Life Cycle of Trust in Developing Economies: One‐size Solutions Do Not Fit All

Trust is critical to the development and maintenance of collaborative and cohesive relationships in societies, broadly, and in organizations, specifically. At the same time, trust is highly dependent on the social context in which it occurs. Unfortunately, existing research involving trust remains somewhat limited to a particular set of developed economies, providing a window to explore a culture's stage of economic development as a key contextual determinant of trust within organizations. In this article, we review the state of the scholarship on trust and identify those qualities of trust that are common in organizations at similar stages of economic development, referred to as its etic aspects. We then also distinguish those elements of trust that are, to the contrary, culturally specific or emic in nature. We structure our discussion around the “life cycle of trust” (i.e., the creation, maintenance, and postfracture repair of trust) and consider unique factors in its application to developing economies. In doing so, we ground our examination in expository examples through field experience in Haiti. We conclude with the proposal of a framework for future research oriented toward the resolution of remaining theoretical and empirical queries as they relate to trust in developing economies.     

Motivating talents in Thai and Malaysian service firms

Talent development in Thailand and Malaysian service firms has become a prioritized human resource management practice as these societies move toward knowledge-based economies. This paper discusses talent management in the social, organizational and managerial context of firms in Thailand and Malaysia, and argues that such structures often counterbalance investments made in talent development. The paper concludes that new human resource management practices do not produce a difference per se. It is the mindset and attitude of various managers that makes the difference. The learning for practitioners is that they need to adapt existing social and organizational structures to their new human resource management practices. The paper is based mainly on qualitative interviews with human resource managers from Thai and Malaysian service firms.     

Collective corruption–How to live with it: Towards a projection theory of post-crisis corruption perpetuation

This article draws on social psychology to explore the unconscious cognitive processes allowing for perpetuation of collective corruption in organisations in the aftermath of crises. In particular, we argue that, when faced with the cognitive dissonance produced by exposed collective corruption, and having to choose between changing behaviour or changing cognition, projection theory provides support for the latter. Thus, we identify the role of projection theory in overcoming cognitive dissonance in groups by projecting blame on to their leaders while continuing practices of corruption. These insights contribute to our understanding of perpetuation of collective corruption in organisations as well as at a societal level.     

Shattering the Myth of Costless Price Changes

Despite its centrality to the topic, very little attention has been paid to the topic of price changes. Indeed, for the most part, organisations operate under the myth of costless price changes. This article broadens the definition of the costs of changing price and then presents strategic recommendations for improving the way in which prices are changed within organisations.     

Performance measurement in the Third Sector: the development of a stakeholder-focussed research agenda

This paper addresses a need for greater insight into the theory and practice of performance measurement (PM) in the Third Sector (TS). Effective PM is crucial to the long-term viability of Third Sector organisations (TSOs), since it provides funders with the requisite evidence to demonstrate value for money and to convince them to provide further funding. It also serves to ensure that vulnerable societal groups receive the social care they need and that the internal management processes of TSOs continuously improve their effectiveness and sustainability. PM research has been scant in this sector and our literature review suggests that no extant models or frameworks are particularly suitable in this context, due in part to the wide range of stakeholders and the distinctive characteristics of TSOs. Drawing on a comprehensive review of the literature, we develop the conceptual foundation of PM in the Third Sector and derive a research agenda that provides a platform for future work. This draws in part on the notions embedded in Stakeholder Theory.     

Reconciling autonomy and community: the paradoxical role of HRD

This paper examines the competing discourses of autonomy and community, so long a concern to social theorists but which we argue have been under-theorised by researchers of HRD. We argue that it is this tension, embedded in the assumptions and behaviours of those working within organisations, which has informed a growing concern by HRD practitioners to balance the needs of the individual with those of organisations, a preoccupation which dates at least to the appropriation by organisations of the socio-psychological theories of the human relations movement. The paper examines the most recent attempts to reconcile autonomy and community through the emergence of the new managerial discourses of spirituality and organisational citizenship. We conclude that this quest is inevitably elusive, based as it is on assumptions of trust within organisation relationships which are increasingly challenged by the short term nature of our post-bureaucratic organisational relationships and the fragmentation, instability and the blurring of boundaries. We conclude with a call for HRD to take on the mantle of critical educator and moral conscience raiser to encourage a deeper engagement with social, existential and philosophical questions that lie at the heart of organisational life.     

Strategic planning for social and political change

Formalized planning is currently applied to planning for operations and capital investment, planning for products and markets, and occasionally for manpower. However, there is little evidence that companies are producing formal plans and programmes to deal with social and political change. Unfortunately, public opinion is moving against business, action groups inside and outside companies are challenging the authority of management, and public officials and politicians are already framing new laws and regulations. Unless managers begin to get more involved in the framing of these controls they are likely to find laws enacted and enforced by people who have little knowledge or sympathy with business. In this article the author points up the necessity to assess the social and political challenge to their business, and formulate and implement social and political strategies and plans aimed at ensuring the survival and prosperity of their organisations.     

A global meaning of supply chain social sustainability

Abstract

The purpose of this research is to help reduce tensions in supply chain social sustainability (SCSS) decisions by providing a common global, contextual definition of social sustainability. This exploratory study utilised an inductive structured interview method to capture SCSS concept meanings. Those interviewed are from, have lived, and worked in developed economies, emerging economies and the base of the pyramid (BOP) economies. The results present a new global baseline definition of SCSS to inform theory and practice by finding that SCSS meanings differ not only between the different levels of economic development, but also within the levels as well. Culture, community and whether basic human needs are met all weigh into perspectives of what this concept is and should entail; a broad, contingent definition is most appropriate moving forward for sustainability planning and execution. Further research with stakeholders in more countries and communities is needed to validate our proposal.     

Developing new innovation models: Shifts in the innovation landscapes in emerging economies and implications for global R&D management

Over the past two decades, there has been a substantial shift in the global innovation landscape. Multinationals from developed economies are increasingly globalizing their R&D activities and are developing an “open innovation” model to source innovations from outside the firm, including from emerging economies such as those in Asia. In addition, emerging economy firms, which traditionally have played a secondary role in the global innovation landscape, have now begun to catch up in developing their own innovative capabilities. This study explores the implications of this new innovation landscape for CEOs of multinationals and emerging economy firms, as well as for international management scholars and educators. While the multinationals might appropriate rents from their existing capabilities and source new ones in emerging economies, they may be threatened by weak intellectual property rights regimes and unintended knowledge spillovers to local firms, creating potential competitors. Firms in the emerging economies can learn from and catch up with investing multinationals, but to do so they need to develop their own innovative capabilities and move from a process to a product focus and from imitation to innovation.