Management and 1992 — Illusions and reality

Dr Butt Philip takes a refreshingly unsycophantic view of ‘1992’, pointing out that, away from the hype, a good deal of the Single European Market (SEM) programme has been in place for some time. Although the European Commission's timing and tactics over the SEM programme were shrewd, in Britain at least, the national campaign has been confusing.It is a company's business development and positioning in relation to 1992 that matters, and this involves both an internal ‘1992 audit’ as well as making sure it is well represented in Brussels.Although giving us cautionary good advice, the author feels a sense of Zeitgeist about the SEM programme and the federal Europe that it implies. Attitudes and institutions in business must be developed to achieve the destiny of European integration.     

Long-term planning and forecasting in Europe

In January 1968, in the light of the Consultative Assembly's recommendations (Recommendation 516) aimed at giving the Work Programme a forward-looking dimension, the Secretary General invited a group of personalities of world-wide reputation to discuss the role they thought the Council of Europe might play in the field of long-term planning and forecasting. Following this meeting, which was attended, among others, by MM. Pietro Ferraro, Bertrand de Jouvenel, Robert Jungk, Johan Galtung and Professor Karl Steinbuch, a number of proposals were formulated with a view to intensifying co-operation between member countries in the field of future research at both governmental and non-governmental level. Such co-operation was intended, inter alia, to lay a scientific foundation for work concerned with the future which might find a place in the activities of the Council of Europe. The first step in this direction would be to compile an inventory of European bodies engaged in long-term planning and forecasting studies and of their activities (research, seminars, publications, etc.).     

Fundamental Dynamics in Complex Organizational Change: A Longitudinal Inquiry into Hydro-Québec's Management

Co-operation is the essence of an organization's existence and a key condition for its long-term survival: but change efforts can put such co-operation to a harsh test. Too often this is caused not by change itself, but managers' tendency to stick to oversimplified ideas or tools and to pursue their implementation to the exclusion of other factors. Lacking a stable beacon, managers are often led adrift by the momentum of the change they initiate. This article uses a 20 year long longitudinal study of Hydro-Québec, one of the largest power utilities in North America, to show how the dynamics of change led away from the need to maintain co-operation and thus tend to emphasize trivia. We argue that, in a major change effort, co-operation will only be achieved by maintaining a balance between Position in the environment, organizational Context and the behaviour of People in the organization's community. This three-legged PCP framework is proposed as a structure for understanding and managing complex change efforts. The dynamics of the PCP framework are also examined to derive patterns and recommendations for managers keen to avoid a drift towards trivia.     

EUTELSAT: The European Telecommunications Satellite Organisation and the 1992 market

In this article, Andrea Caruso makes it clear that EUTELSAT, the European Telecommunications Satellite Organisation, is a working model of a Single European Market in the field of providing and operating communications satellites for public telecommunications in all EEC and some non-EEC Member States. EUTELSAT is transnational and based on co-operation and exchange.This regional telecommunications system achieves considerable economies of scale compared with any national one, as well as technological and commercial benefits like VSAT (Very Small Aperture Terminal) services for the business user, and the ability of in-orbit satellites to be very flexible in terms of ground coverage zones on the Continent.‘1992’ requires greater inter-country communication and the EUTELSAT network is already in place in Europe to supply it.     

Michael Porter on competitive strategy reflections and round table discussion

In a recent series on “The Business of Excellence”, Thames Television, UK, transmitted a talk by Michael Porter on the competitive strategy of companies. A Round Table of executives with a special interest in the subject was then asked to discuss Porter's ideas. The European Management Journal is pleased to have been given the copyright to edit and publish the talk and the lively and wide-ranging debate which followed.Michael Porter is Professor at Harvard Business School and the foremost authority on competitive strategy. He is author of over thirty articles and six books, including Competitive Strategy and Competitive Advantage. The former is the leading work in the field, having been reprinted fourteen times and translated into nine languages. The Round Table set up to comment on Professor Porter's address included Sir Christopher Hogg, the Chairman of Courtaulds, Trevor Chinn from Lex Service Group which distributes Volvos in the UK and electronic components in the US and Europe, David Sainsbury of the UK's largest grocery chain, and Patricia Grant of Norfrost, who, with her husband, founded a company which makes chest freezers in the north of Scotland. Mrs Grant is also a recent Business Woman of the Year. The programme was introduced and chaired by Ian Hay Davison, advisor, Arthur Andersen and Company, and director. Midland Bank Group plc.     

Japan's drive for the European car market—Lessons from U.S. experience

This article reviews the three strategic stages of Japanese automobile manufacturers' strategy within the United States, and, from this, forecasts likely developments in Europe. It considers the implications of future Japanese initiatives from three perspectives—that of the European automobile competitors, of national governments, and of the wider European community.     

Trade Union Action and Privatisation in Western Europe: Recent Dilemmas*

Abstract. The Author examines the policies of privatisation in Western Europe and the responses made by trade unions. Privatisation seems to induce the trade union movement to shift its emphasis from traditional issues toward new and challenging ones, such as a major co-operation in the management of the privatised companies. Therein, the extension of interest and control by the unions into new areas such as investment, planning, work organisation and design constitute a challenge to trade union core mandate. In some union circles there are fears about unions embracing what appear to be managerial strategies in a period of deep transformation and turbulence. Moreover, according to some union leaders any attempt by the unions to go beyond the “oppositional and defensive role” would result in a confusion and misrepresentation of their members' interests.     

The transfer of culturally-grounded management techniques: The case of business reengineering in Germany

Business process reengineering (BPR) continues to sweep across Europe with fervour. The rhetoric of radical performance improvement is too great to ignore, given the state of many European companies. In many cases the reengineering drive has been orchestrated by American companies either moving into Europe or implementing strategies dictated from their US base. Yet reengineering is essentially an American concept, packaged so as to appeal to that country's psyche. This article examines the transfer of culturally-grounded management techniques, in this case BPR, making specific reference to the German business and cultural context.     

Statistics and the Single Market

Abstract. At the end of 1992customs barriers will fall and the European Internal Market will be realized, as envisaged by the Single European Act signed in 1986 by the EEC's member countries. Statistical Offices are preparing to meet the new information requirements from all the economic and social forces of the new Europe. EUROSTAT planned a politically endorsed statistical programme and established the European Statistical Planning Committee, enlarging the tasks of the Conference of the Heads of National Statistical Institutes. Each National Statistical Institute is urgently required to improve the comparability of statistics and implement the harmonised projects of the European Statistical Programme. Official statistics will conform to the new requirements in order to supply the business world, national governments, the EEC authorities and public opinion with up-to-date information to face a wider, more open and competitive market. The business world will focus its attention on information on the flows by sectors and very small areas. Statistics on intra-community foreign trades will shift from customs bills to new tools more directly assigned to national statistical bodies. National governments and EEC countries will need more information on population behaviour as to employment, consumptions, use of leisure time, fruition of public facilities, and social security, as well as more precise estimates of GDP, now the basic contribution to EEC budget. Citizens and public opinion will ask for timely information on migrations, social mobility, income distribution. Demographic projections show the European population is progressively ageing, unemployment is bound to decrease and women are going to be more present within society and the labour market. Information on the home care of elderly people. health, environment, crime prevention and the status of women in general will have to be supplied. Presently Statistics Offices have greater experience in two essential domains: conceptual frameworks and the techniques for conceptual statistical representation of the investigated events. Moreover, the improving of computer technology will provide substantial help to survey methodologies and data processing.     

Quality circle failures in UK manufacturing companies—A study

This paper presents the results of a study of quality circle failures in UK manufacturing companies. A questionnaire survey formed the first part of the investigation, which reveals that the majority of companies which implement quality circles should expect to encounter some form of failure. The first three years of operating a quality circle programme represent the critical period for establishing long-term survival of the programme, whilst in the case of individual circles it is the first 18 months. The results indicate that white collar circles are more difficult to sustain over time than are circles in blue collar areas. The main reasons for circle failure include: rejection of the concept by top management and trade unions; the company restructuring, redundancies and labour turnover; circle leaders lacking time to organise meetings and a lack of co-operation from middle and first-line management. It is pointed out, that despite an average circle failure rate of 20%, there is a high level of satisfaction with quality circles amongst the respondents.     

The acquisition route to a European presence

In this edited paper, originally delivered to a Conference organised by Westminster and City Programmes, the author charts the best route for companies seeking alliances in the “new” Europe - that is the “Single European Market” in which competition will be greatly increased as a result of the “1992” Directives.Although the opportunities for acquisition in Europe are enormous, successful acquisitions require very skilled and meticulous planning. The “European factor”, of totally different business environments, makes the task harder. Tim Line takes you through the process of assembling the right team, seeking external bankers, making the first approach, fact finding, and implementing the negotiations. His advice is directed particularly at British acquirors, but the principles and strategies are universal.     

The virtue of courage: From historical European roots to current management studies

This article discusses the concept of courage – stemming from the ancient European traditions of this virtue – systematically analyzing 45 management studies that deepen the role of such virtue in business organizations. From the analysis, three major themes emerge: 1) the concept of courage in organizations, 2) the concept of moral courage in organizations, and 3) the concept of collective courage of organizations. Moreover, findings show that management research on the virtue of courage has progressed over the years and that – notwithstanding its strong European roots – the studies involved in the conversation are mainly not based in Europe. The contribution of this article is threefold. First, it sheds light on a still under-researched virtue, pointing out its relevance in business contexts. Second, it clearly highlights that a shift is occurring in scholars' interest, as an organizational and collective perspective of moral courage is slowly emerging. Finally, it shows that management scholars mainly embrace Aristotle's view of the virtue of courage, discarding the Christian approach introduced by Aquinas.     

Long range planning and regional policy 1 Britain— a European pioneer

What is the significance of “regional policy” in Europe today? It is certainly a political force. It was a major factor in the resignation of General de Gaulle last year and a European Conference of Ministers of Regional Planning is being convened to consider it this year. But as a subject it is not always easy to grasp. It seems to touch on many things-environment, employment, democratic participation and long range planning. Its actual shape varies from country to country. At the same time, many Europeans, including the Commission of the European Communities, are convinced that there are common European problems that urgently require a European regional policy to solve them. This article, which will be in four parts, begins by examining the experience of regional policy in the UK, France, Italy, Germany and the European Communities. Its last part will discuss the role of long range planning in achieving an effective regional policy at European level. The author is carrying out research into regional policies in the European Communities and the United Kingdom with financial support from the Social Science Research Council.     

Production planning in a MRP/JIT repetitive manufacturing environment

Some literature suggests that the best approach to production planning is a complete implementation of just-in-time. It has also been suggested that JIT replaces material requirements planning, and computerized procedures are an unnecessary complex burden on management especially in a highly repetitive environment. This article examines the JIT programme at the John Deere Engine factory. In 1985 the factory began a JIT programme with the belief that it would replace their MRP system. The results of the JIT programme are examined and management's conclusion that the best approach is a blend of JIT and MRP is explored.     

European cultures and management styles

After the establishment of the Common Market in Europe, many companies from abroad opted for a single European headquarters and searched for European managers. That leads to the question whether one can really speak of a common European management style. The article at hand examines this issue. To do this, the legal framework and Corporate Governance background of individual European countries are assessed. Furthermore, cultural differences in Europe are considered. Referring to studies of cultural dimensions in European countries, the authors propose five different cultural areas in Europe. This leads to a concluding discussion of management styles in these regions.     

Japanese technological advance: Problems of evaluation

Japan no longer rests its manufacturing excellence on borrowed technology. There is clear evidence of creativity and pioneering advance in indigenous Japanese science and technology; the defence-related areas are a major example. It is flourishing under determined government support, as seen in the technopolis concept and the State's attitude to small and medium-sized industries.Ian Gow raises the warning cone of Japanese threat to European technological competitiveness. It will be increased if bilateral transfer of technology increases between the USA and Japan. The remedies are to monitor the Japanese more closely and collaborate. The latter will bring net benefit to Europe.     

Benchmarking and Monitoring International Warehouse Operations in Europe

We report on a cross‐sectional and longitudinal comparison of European distribution centers in the Netherlands. European distribution centers are responsible for the distribution of a manufacturer's (mostly Asian or American) products over customers in a large part of Europe, the Middle East, and Africa, often with strict service‐level agreements. In total, 65 physical warehouses, containing 140 European, Asian, and American European distribution center operations, in combination with different outsourcing relations (own‐account, dedicated outsourced, and public outsourced), were benchmarked in 2000 and monitored over the period 2000–2004. We conclude that both in 2000 and 2004, European warehouses are more efficient than Asian and American warehouses, and outsourced operations (particularly public warehouses) are more efficient than own‐account operations. Over the period 2000–2004, efficiency appears to have declined substantially; the most distinct differences are to be found among public outsourced warehouses and, because many European distribution center warehouse operations of European origin are run by public service providers, among European warehouses. This decline in efficiency also led to a decline in productivity, in spite of the fact that overall the available technology has improved. We conjecture potential causes for this decline.     

The impact of frequency of contact on protégé mentoring outcomes: the moderating effects of protégé general self-efficacy and face-to-face interaction

As a Human Resource Development (HRD) intervention, mentoring assists individuals in their career development. However, it is still unknown if mentoring could enhance individuals’ early career decision-making. Moreover, the literature lacks longitudinal research that investigates the role of frequency of contact in mentoring relationships. Therefore, this study examines whether frequency of contact between mentor and protégé influences protégé mentoring outcomes, namely, improvement in career decision self-efficacy (i.e. CDSE development) and satisfaction with mentoring. Data were collected at two times from 86 first-year undergraduate students who participated in a mentoring programme at a Middle Eastern business school, where email communication facilitated the contact between these protégés and their mentors. Based on regression analyses, the associfations were significant between frequency of contact and mentoring outcomes. The findings partially confirmed the effects of two moderating variables in the relationships mentioned above. This study has practical implications for HRD practitioners in higher-education institutions.     

DOES HIGH COST OF MORTGAGE DEBT EXPLAIN WHY YOUNG ADULTS LIVE WITH THEIR PARENTS?

Young adults leave their parents' homes at a higher rate in Northern Europe or in the United States than in Southern Europe, with broad implications on labor market mobility and on fertility. We assess if differences in household formation are associated to differences in access to credit by estimating the impact of the cost of a mortgage on the probability that a young adult leaves his or her parents' home. Exogenous changes in the cost of credit are identified using the reform in 1998 and the cancellation in 2002 of Crédito Bonificado, a Portuguese program that provided four different reductions of the interest rate of mortgages signed by low‐ and medium‐income youth. Using a unique data set that links administrative records of debt with the 1998–2004 waves of the Employment Survey, we document three findings. First, borrowing among young adults fell when borrowing costs increased. Second, the elasticity of new household formation with respect to net interest rates lies between −0.8 and −3.3. Third, young adults responded to the increase in mortgage costs by delaying home purchases or by reducing the quality of housing services purchased, but there was only a modest increase of the probability of renting a new accommodation. (JEL: D91, H24, J13)