UK Privatization: Its Impact on Procurement

This study is concerned with changes in procurement and supply chain management in UK privatized companies. In most cases, privatization requires the organization to develop a completely new approach. This is because of the change in ownership and the new competitive environment into which the company moves. Part of this reassessment of the business by senior management can be expected to include procurement. The paper focuses on the nature and direction of the changes in procurement associated with privatization, based on research into the privatized sector in Britain. The method adopted involves an extensive questionnaire completed by 28 major companies privatized in the UK, followed up by interviews with twelve of these companies. Questions centre on the following key areas: changes in the structure of procurement, procurement strategy, the role and profile of procurement within the company, attitudes to outsourcing and supplier performance and changes in approach to assessing the performance of the procurement function. Our results indicate extensive change. Although cost reduction is often a driver of these changes, as the companies strive to reduce costs to meet City expectations and best practice in the private sector, another consideration is the contribution that procurement can make to the overall strategy of the company, so as to gain and maintain competitive advantage.     

Organisational buying behaviour in changing times

In a recent paper, Johnston and Lewin (1996) analyse the stream of research on organisational buyer behaviour published over the past 25 to 30 years isolating eight propositions which they encapsulate in their ‘Risk Continuum'. Our paper, reports a comparison between Johnston and Lewin's analysis of the extant literature and current buying practices as revealed by interviews with senior UK buyers. We found that business practice has changed in the intervening years. New, process-driven management styles are changing the way in which UK buyers and suppliers interact, yet work reflecting this change (by, for instance, the European based IMP Group) is under-represented in textbooks and teaching. We question the continuing predominance of the established risk management view of organisational buyer behaviour based upon research conducted in the USA 30 years ago.     

Corporate Strategy Formulation and Taxation: Evidence from UK Firms*

This paper considers the relationship between corporate strategy formulation and taxation. Drawing on prior literature we briefly review the important influence that international taxation has on an array of corporate strategy decisions. We then consider issues in strategy formulation and taxation planning in order to develop an understanding of when and how taxation factors impinge on strategic decision‐making. We draw out the apparent paradox between the nature of strategic decision‐making and financial decision‐making and look for areas of reconciliation. In order to shed light on some of these issues we present findings from the qualitative analysis of a set of personal interviews undertaken with senior tax practitioners in seven UK‐based multinational enterprises and then consider quantitative responses from the tax practitioners working in 145 UK firms.     

The use of advanced management techniques in R & D

The paper discusses information collected in a study carried out by Bradford University Management Centre in 1985/86 to establish the state-of-the-art in the use of advanced management techniques in R & D departments of UK organisations. Data from two questionnaires were supplemented by more detailed discussions with selected respondents and a survey of the relevant literature was carried out. Indications are that both project management in R & D and managerial development of R & D staff are receiving attention, particularly from senior management. As yet, however, the potential of recent advances in computer technology and of existing MS techniques has not been fully realised. In this context, the effectiveness of present training courses in project management techniques is questioned.     

Mapping IS failure factors on PRINCE2® stages: an application of Interpretive Ranking Process (IRP)

The social, political and cultural issues faced by organisations and their senior management team in the delivery and adoption of strategic projects, is highly complex and problematic. Despite a mature body of literature, increasing levels of practitioner certification, application of standards and numerous government initiatives, improvements in success have been minimal. In this study, we analyse the key underlying factors surrounding the failure of Information Systems (IS) projects and explore the merits of articulating a narrative that focuses on senior management embracing practical pessimism. Specifically, we develop a hypothesis supported by empirical study that leverages expert’s views on the dominance and interrelationships between failure factors within PRINCE2® project stages using an Interpretive Ranking Process. Our findings establish how the concept of dominance between individual failure factors can necessitate senior management to make key informed and timely decisions that could potentially influence project outcomes based on an empirical derived, interpretive predictive framework.     

The Determinants of Non-Executive Representation on the Boards of Large UK Companies

An important aspect of current governance practice is theutilisation of non-executive directors to monitor the behaviourof senior management. The purpose of this paper is to provide aninitial insight on the determinants of non-executiverepresentation on the boards of large UK companies. The studyadopts an agency theory perspective, focusing specifically on theimpact of company size and ownership on non-executiverepresentation. I find that larger companies, where monitoringvia ownership is expected to be less efficient, utilise higherlevels of non-executive representation. I also find thatnon-executive representation is positively associated with theownership of external blockholders. The presence of CEO/chairmanduality has a negative impact on non-executive representation. Overall, the findings suggest that companies utilise boards withstronger monitoring potential when size and ownershipcharacteristics suggest that alternative governance mechanismsmay be unable to ensure managers pursue shareholders' interests.     

The determinants of top management pay

Agency theory argues that companies need to structure their top management pay so as to attract, retain, motivate, and reward senior executives. It is implicit in this literature that managers should be rewarded for performance and that company size should not be a significant determinant of compensation. Empirical evidence in many countries has concluded, however, that size is a major determinant of management remuneration and the pay-for-performance link is very weak. This study examines the determinants of senior executives’ remuneration and bonus payments in Hong Kong companies using recently available data. We examine both the level of pay and changes in pay. Corporate size is found to be a major explanator of remuneration levels and of changes in the pay of the CEO and executive directors. Accounting profitability is also a significant explanator of compensation. Performance, as measured by stock returns, has little or no statistically significant relationship with pay; in fact, some of the results show negative relationships. Some share ownership characteristics have influences on the levels of remuneration. In particular, share ownership by directors and share ownership by institutional investors moderate the compensation levels. In contrast, corporate governance variables have little association with change in pay. Overall, the results imply agency arguments that advocate pay-for-performance compensation schemes are not major factors in setting top management remuneration in Hong Kong.     

Devising Context Sensitive Approaches To Change: The Example of Glaxo Wellcome

There is a growing awareness of the need for designers of organisational change to develop context sensitive approaches to implementation if change is to be successful. Existing change literature indicates that there are many aspects of an organisation’s change context that need to be considered, and a wide range of different implementation options open to those designing change. However, these contextual aspects and design options are not currently pulled together in a comprehensive manner, or in a form that makes them easily accessible to practitioners. This paper builds a framework, called the change kaleidoscope, which aims to achieve this. It illustrates the applicability of this framework in practice as an aid to managers in the development of context sensitive implementation approaches via a case study on the changes undertaken at Glaxo Wellcome UK since the early 1990s. This is an interesting case of a successful organisation that managed to change in a pro-active manner rather than in a crisis driven re-active manner. The paper concludes with the lessons for practitioners on the impact of certain contextual features and design choices during change as illustrated by the Glaxo Wellcome case, and a discussion on the use of the kaleidoscope in practice.     

Mixed Results, Lousy Process: the Management Experience of Organizational Change

This paper reports the findings of a survey of 92 managers, from 14 public and 14 private-sector organizations. The aim was to explore the experience of change, extending the findings of a previous study (Buchanan, Claydon and Doyle, 1999). The survey addressed six themes: communication, evaluation, learning, attitudes and relationships, implementation and change and continuity. Overall, the results present a bleak picture of the process and outcomes of contemporary change. Most managers claim that change responsibility affords valuable personal learning. However, recent change has also been accompanied by stress, work intensification, command and control and management–employee distrust. A comparison of public and private–sector responses suggests that the experience of change in the public sector has been more pressured than in the private sector. Comparison of responses by management level indicates that senior managers are more likely to hold positive views of the change process and its outcomes. Explanations for these differences in experience and perception are considered, along with the implications. It is concluded that an adequate theory of organizational change must address the contradictions and tensions in the lived experience of those implicated, and that effective practice should consider the linkage of change implementation with organizational learning mechanisms which, on this evidence, are absent.     

Towards Best or Better Practice in Corporate Leadership Development: Operational Issues in Mode 2 and Design Science research

The research reported here was part of a UK government initiative to improve management and leadership capability. Corporate leadership development was one element of this initiative. The researchers, also the authors of this paper, were tasked with developing a best practice guide in leadership development. The aim was to establish current best UK corporate practice in order to inform similar organizations striving to improve their approach to leadership development. The aim of this paper is to present the findings of this inquiry as an example of Mode 2 research, i.e. that which is co‐produced with practitioners in a rigorous yet actionable way. The paper addresses operational issues by exploring the tensions inherent in Mode 2 research and makes some additions to previous literature on conducting Mode 2 research. It introduces the notion of technological rules derived from the concept of management research as design science, which enables the authors to articulate the way in which output can be developed in a form readily acceptable to end users of Mode 2 research. Actionable research products and accompanying dissemination issues are proposed as central operational concerns for Mode 2 research.     

The effectiveness and specificity of change management in a public organization: Transformational leadership and a bureaucratic organizational structure

There is an extensive private sector literature on organizational change management. However, recent studies have suggested that the specific context of public organizations may have consequences for the management organizational change. This study examines to what extent different change approaches and transformational leadership of direct supervisors contribute to the effective implementation of organizational change in public organizations, and to what extent the bureaucratic structure of public organizations makes the implementation of organizational change s3pecific. The implementation of an organizational change in a Dutch public organization is studied using quantitative methods and techniques. The results indicate that bureaucratic organizations may effectively implement organizational change with both planned and emergent change approaches. The contribution of transformational leadership depends on the type of change approach and organizational structure. Transformational leadership behavior of direct supervisors contributes little to planned processes of change, but is crucial in emergent processes of change in a non-bureaucratic context. Although the literature on change management mostly emphasizes the leadership of senior managers, the leadership role of direct supervisors should not be overlooked during organizational change in public organizations.     

International HRM in South African multinational companies

With the paucity of published research on human resource management (HRM) policy and practice in the BRICS countries (Brazil, Russia, India, China and South Africa), the rationale for this article is to evaluate the nature of HRM practices, their development, application and diffusion in South African MNCs. It provides an exploratory analysis in a systematic literature review referring to qualitative case study research and research survey literature to better understand HRM strategies and practices developed and diffused by growing emerging market MNCs from South Africa.The findings underline significant challenges of human resource development and controversies regarding host country issues alongside a degree of ‘sophistication’ in the HRM practices of firms analysed. An aim of the article is to identify areas for further research on business and HRM models of Emerging Market MNCs (EMMNCs) in the African context and develop a set of seven research propositions.     

Social Structures and Resistance to Strategic Change: British Manufacturers in the 1980s1

This article examines the refusal of two UK manufacturers to adapt their strategic ‘repertoires’ to the recessionary and structural changes of the 1980s. From being industry leaders in 1980, both companies were relegated to overseas control by the end of the decade. Developing both institutionalist and contextualist approaches to organization, the article argues that this fatal resistance to change derived from the deep social structural roots of these two companies' politics and cultures. Conservative managers were able to defy new capitalist logics by drawing upon alternative social structural sources of power, legitimacy and inspiration. The article concludes by considering the implications of this plural structuring of organizations both for organizational theory and for the management of change in practice.     

The contingent nature of best practices in national competitiveness: The case of American and Japanese innovation processes

We propose that the differences in competitiveness of companies from different countries is not just a question of the adoption of ‘better’ management models, as conventional wisdom would have us believe; rather, we contend that national competitiveness can change radically over time without significant changes in management practices. Contrary to much of the management literature we hold that changes in the global business environment often determine to a large degree the competitiveness of companies. Based on our assumptions we offer four specific lessons of how companies can increase their competitiveness within the constraints of the socio-cultural context in which they operate.     

Privatization and Agency Status: Identifying the Critical Factors for Performance Improvement

Earlier research into the impact of public and private ownership on economic and financial performance concluded that performance may be affected but that the relationship is more complicated than policy makers have often assumed. This paper is concerned with explaining these earlier results in terms of changes in the internal environment of organizations. Six key internal characteristics are identified from the management literature and the history of ten UK organizations is summarized in terms of these characteristics. The model appears to be robust. Performance changes and lack of change are explained by the internal environment. The results are congruent with organizational theory which suggests that the internal environment has to adapt to changes in the external environment.     

Materializing Strategy in Mundane Tools: the Key to Coupling Global Strategy and Local Strategy Practice?

While much of the literature on strategy and strategy as practice (SaP) focuses on traditional strategic tools, technologies and discursive practices of managers, this paper extends the understanding of strategic change implementation by proposing that mundane material tools, understood as text, translate global strategic discourse in ways that make sense to workers and orchestrate successful global strategy implementation at the local level. Based on a rich case study within one branch of a national bank, this paper demonstrates how a middle manager's materializing practices developed local strategy practice while simultaneously transforming work and producing strategic figures or indicators that satisfied senior management's global strategic change objectives. The contributions of this paper are threefold: (i) it advances the understanding of the multimodality of materiality by identifying the influence of three types of mundane tools produced locally by a middle manager as he performed his sense of the senior managers’ strategic discourse; (ii) it reveals how these three types of physical texts materialized the manager's sense of this discourse, facilitating frontline workers’ engagement and coupling materiality and orality in a coherent way that allowed workers to embody the company's global strategy in their ‘sayings and doings’; and (iii) it highlights the importance of managers’ ability to materialize a strategic discourse.     

The New Public Management and Managerial Roles: the Case of the Police Sergeant

This paper explores the introduction of New Public Management (NPM) techniques within the UK police service since the late 1990s, and in particular, the impact upon the role of the first line manager: the police sergeant. It draws upon qualitative data collected within 'City Police Service' by means of in-depth interviews with role sets of police sergeants, constables, inspectors and members of the senior management team in two police divisions. After evaluating a number of NPM precepts in the light of the findings, the paper makes a number of conclusions relating to the role of police sergeants. These echo the findings of other research on changes in managerial roles, including a shift towards more strategic responsibilities, but with a significant intensification of work, tighter control and scrutiny through organizational performance management systems, and less daily contact with their police constables. As elsewhere in the public sector, a shift towards becoming a 'practitioner manager' was apparent, but with respect to police sergeants the effect was to limit their ability to provide leadership and support for their constables, and to encourage a greater reliance upon peer group networks and on the constables they supervised.     

Work–Family Conflict and the Senior Female International Manager

The particular focus of this paper is on the workÐfamily conflict experienced by senior female international managers within a European context. This research is particularly relevant as existing European studies have not specifically addressed issues pertaining to the senior female international manager. For the purpose of this study 50 senior female expatriate managers were interviewed, representing a wide diversity of industry and service sectors. The study establishes that work–family conflict still prevents many female managers from progressing to senior management. The results of the study show that the senior international career move has largely been developed along a linear male model of career progression, a development which, together with gender disparity both in organizations and family responsibilities, frequently prevents women employees from reaching senior managerial positions. The study extends work primarily in the international human resource management literature, while also contributing to the research literatures on women in management and career theory.     

Vulnerability and Agenda: Context and Process in Project Management

This paper explores how the project management role is conditioned by the context in which change is progressed. The argument draws on Pettigrew's (1985, 1987) contextual and processual view of change, a view which does not clarify the management implications of contextual variation. Using data from a two-stage research design combining diary and survey methods, four context dimensions are identified, concerning ‘interlocking’, ‘shifting sands’, ‘ownership’ and ‘senior management view’. For analytical purposes, two extreme contexts are characterized as exposing the project manager to high and low levels of ‘vulnerability’ respectively. Project management literature typically offers a rational-linear account of change, and concentrates on ‘content’ and ‘control’ agendas, concerning technical expertise on the one hand, and planning, budgeting and monitoring techniques on the other. Sociological analyses reveal the limitations of the rational-linear account, and focus on the political and cultural dimensions of the ‘process’ agenda. The data suggest how contextual variation affects the relative priority of these agendas. The management implications of these findings are explored, for project management selection, career progression, and the development of diagnostic skills and ‘agenda management’ strategies.