A manpower planning model for organizational effectiveness

In this article the author argues that micro-manpower planning is finally beginning to emerge as a process for helping individuals and firms to play an active role in developing integrated approaches and facilitating interrelationships within an organization. Additionally, that it is in a unique position where it can relate many of the foundations formulated by many segments of organizational theory and mathematical modeling into a cohesive and practical application format for practicing administrators.Naturally, the developed Markovian model is a stable process and assumes stable probabilities of movement with the system. Additionally, it assumes that movements between the states are dependent solely upon the previous state of location which is usually false in a business organization where movement is also dependent upon length of time in state, previous states occupied, and personal variables. But, the Markovian process can be viewed as a relevant modeling technique even with these constraints.These factors are combined to examine and discuss the organization's effectiveness and its bargaining position in terms of manpower resources. Additionally, policy decisions which would be made based upon the interrelationships of the personnel and industrial relations departments and the firm's technical core are discussed.     

Information for more effective strategic planning

This paper illustrates how an entity—called a ‘strategic data base’ (SDB)—can be developed to provide important information in a form which makes it directly useful in various phases of a strategic planning process. The strategic data bases are concise statements of the organizational and environmental situations which define the organization's most salient problems, opportunities, and constraints. These SDBs may be developed through a participative process involving tasks forces which are made up of managers representing the diverse interests of the organization. The strategic data bases thereby become important informational inputs to planning which can directly serve to enhance the quality of planning decisions. Moreover, the process of developing SDBs can be an important learning device for those middle managers who can become involved in such a process at a much earlier point in their career than that at which they might normally engage substantively in the organization's overall strategic choice process.     

Organizing for strategic management— A conceptual model

Managing the strategic problems is a complex process. In order to organize this process efficiently in one's own company it is necessary to understand and be able to communicate the basic factors involved. In the author's view there is a need to compile into a model concepts, relations and organizational principles of major importance to successful strategic planning. This article is based on the author's analysis of current literature and his own practical experience in Scandinavia. The article presents a conceptual model for strategic management including the planning process as well as the execution of strategic decisions. This model is related to basic organizational principles and the methodology used in project management.     

Effect of Perceived Crisis Response on Consumers' Behavioral Intentions During a Company Scandal – An Intercultural Perspective

In the context of a multi-national company scandal, namely Volkswagen's Dieselgate, we examine the effect of customers' perception of organizational crisis response on their revenge and avoidance intentions in different cultural settings. Using data collected in the US and in Germany, we are able to show that the perception of appropriate crisis response reduces customers' revenge as well as avoidance intentions. However, due to the domestic bias of German respondents, the mechanism linking perception of the organization's crisis response to the respective outcomes differs between Germany and the US. Our results demonstrate for the first time that domestic bias is not always associated with being an amplifier of positive factors; rather, in the context of an organizational scandal, it dampens the effects of organizational crisis response.     

Strategy restoration

Discussions of strategic change generally assume that managers strive to break free from the constraints of their organization's past so that they can forge ahead into the future. However, some organizations instead opt to reinterpret and reenact abandoned strategies drawn from their own history. Such actions are largely unaccounted for in the literature on strategic change. Accordingly, we propose here a conceptualization of a distinct type of strategic change that we call “strategy restoration.” We first outline how strategy restoration fills a gap in current understandings of strategic change. We then elaborate conditions that motivate and enable organizations to pursue strategy restoration rather than other types of strategic change. Two components of the framework—organizational traditionality and memory—characterize the organization itself, and two—nostalgia and perceptions of the organization's authenticity—characterize the market in which the organization operates. The proposed conceptualization of strategy restoration and discussion of its underlying mechanisms carry implications for researchers and managers.     

NEGOTIATED TRANSFER PRICING AND CONFLICT RESOLUTION IN ORGANIZATIONS

An experiment was conducted to test hypotheses about conflict related to negotiated transfer pricing. A business game with repeated decision periods was used to simulate transfer pricing negotiations between corporate divisions. When the evaluation of division executives emphasized corporate profits rather than divisional profits, there was more smoothing and integrative problem solving and less aggressive-competitive behavior, relations between the divisions were better, and more cooperation was observed to occur in other decisions unrelated to the transfer pricing. Moreover, corporate profits from the transfer product and its derivative product tended to be larger. All of these effects were most pronounced when the transfer product was important to both divisions as a source of profits.     

Productive organizational energy mediates the impact of organizational structure on absorptive capacity

The ability of an organization to cope with radical technological change is regarded to be heavily dependent on its ability to absorb and apply knowledge from its environment. This study investigates the role of organizational structure in driving absorptive capacity and uncovers the role of the emergent phenomenon of organizational energy as the enabler of this relationship. A field study was conducted among firms that are challenged by the disruptive nature of Cloud computing. Our results show that organizational design affects the degree of mobilization of an organization's affective, cognitive and behavioral resources, which in turn influence the effectiveness of learning processes related to the absorption and exchange of knowledge within the organization. Furthermore, they reveal the positive relationship between the enactment of absorptive capacity and the successful adoption of Cloud technology for incumbent firms. The findings contribute to our understanding of the micro-foundations of absorptive capacity and how positive organizational phenomena facilitate effective adoption and implementation of emerging technologies.     

Analyzing relational sources of power at the interorganizational communication system

Based on the critical theory of communication, managing stakeholder relations is significant to achieve more democratic decisions that reconcile diverse interests of various stakeholders. However, power inequalities among stakeholders might inhibit to achieve finely balanced decisions. More interestingly, these inequalities might emerge from the nature of communication among organizations. Conceptualizing interorganizational relations (IORs) as the relations of an organization with its stakeholders, the current study attempts to analyze the relational sources of power. Following a graph theoretical methodology, the frequency of interaction and trust were analyzed as the relational sources of power on a sample of 76 logistics firms. The findings of the study reveal that an organization’s frequency of interaction and level of trustworthiness affect its power over other organizations.     

Integrating planning and management development

In this article the author argues that the integration of planning with management and organizational development efforts is not a clear or easy process. What is clear, though, is that both are concerned with processes of education and learning that are important to an organization's survival, growth, and potential for serving society. Both, to date, have grown as management arts without a great deal of interaction. More interaction in the directions suggested would seem productive.     

Designing a long range marketing strategy for services

The purpose of the article is to develop a frame of reference for long range marketing strategy, labelled the Three Stage Model which could benefiti the attempts of service firms and institutions to successfully introduce marketing and eventually achieve marketing-orientated operations. The author stresses some organizational aspects especially concerning the use of traditional marketing departments for handling an organization's marketing function. The views on service marketing are supported by a substantial amount of empirical evidence from the industrial and the consumer service sector. The frame of reference and the organizational views of the marketing of services will be equally valid for industrial marketing of services and for marketing consumer services.     

Ascertaining the effect of planned organizational change on the work environment

In a dynamic environment, organizations often are required to effect major changes in operations. The success of such changes invariably depends upon numerous factors one of which is how the change affects the work environment. Therefore, in planning organizational change it is important to consider the work environment and to objectively evaluate changes in the work environment in a timely fashion so that corrective actions may be formulated if needed. Such framing and monitoring of the organizational change facilitates successful implementation of the organizational change. This paper suggests a measure which may be used in evaluating an organization's work environment. A case is discussed.     

Coordinating Production and Marketing with Dynamic Transfer Prices

Decentralized decision making is a fact in the modern business world accompanied by extensive research that looks into its consequences for overall firm profits. We study the interactions of decentralized marketing and operations divisions in a corporation and explore their impact on overall firm profits in the case with and without coordination of the two decentralized units. We assume that the marketing department is responsible for the price that influences the demand (sales), and the operations department is responsible for the production rate. We allow for backlogging over time. We model the interdependence involving marketing and operations decisions as a non‐cooperative differential game, with the two divisions as strategically interacting players. We find that, without coordination, strategic interactions of marketing and production result in inefficiencies that can quantitatively be substantial. Next, we introduce a dynamic transfer pricing scheme as a coordination device and evaluate if it establishes efficient (first best and fully coordinated) outcomes. We show that if production and marketing play a game with pre‐commitment strategies, there exists a dynamic transfer price that efficiently (fully) coordinates decentralized decision making and hence results in Pareto‐efficient company profits. If the two decentralized divisions play a game without pre‐commitment, dynamic transfer prices can partially coordinate decentralized decision making but fail to fully eliminate overall inefficiencies arising from strategic interactions among decentralized divisions.     

Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal

In this qualitative study, we explore how incumbent firms in traditional industries build dynamic capabilities for digital transformation. Digital transformation has been defined as the use of new digital technologies, such as mobile, artificial intelligence, cloud, blockchain, and the Internet of things (IoT) technologies, to enable major business improvements to augment customer experience, streamline operations, or create new business models. In making sense of digital transformation, we discovered that leaders in various industry circles use the term inconsistently to describe various strategizing and organizing activities; in addition, the term has gained limited scholarly attention as a context for study of strategic change. Drawing on senior executives' experiences with leading digitalization projects at incumbent firms, we propose a process model comprising of nine microfoundations to reveal the generic contingency factors that trigger, enable, and hinder the building of dynamic capabilities for digital transformation. Our findings reveal that digital transformation is an ongoing process of using new digital technologies in everyday organizational life, which recognizes agility as the core mechanism for the strategic renewal of an organization's (1) business model, (2) collaborative approach, and eventually the (3) culture.     

Strategic adaptation as a partially rational process

Limits to the action of strategic adaptation derive essentially from the temporal and dimensional complexity of the system of the firm. Consequently, a ‘temporal/organizational area decision-making matrix’ has been developed and decisions classified accordingly. Problem-solving approaches adopted in facing complexity and uncertainty appear to be based mainly on the criterion of simplification and on that which ensues of decomposition. Measures currently applied in the process of simplification are examined, including utilization of models. Extra-rational or even irrational elements intervene in the process of strategic adaptation, caused primarily by complexity and by the social-heuristic nature of planning. Basic areas in which extra-rational elements (such as personal opinions, imagination and intuition) play an essential role are singled out and appropriate organizational mechanisms are identified which could assist in attaining the maximum synergic effect from the combined application of rational and extra-rational contributions to planning.     

The shadow dance of political climate: Engagement in political behavior in local government authorities

In describing the processes of organizations as political acts, we are not making a moral judgment; we simply are making an observation about a process. Bacharach and Lawler, 1980, p. 2.This study focuses on the ways a perceived political climate influences engagement in political behavior during a national election period. By using social cognitive theory as a way to predict behavior in organizations, we study how managers' engagement in political behavior is shaped. A qualitative research methodology was used. Sixteen interviews with managers were conducted in various local authorities during the 2015 election campaign for Israel's parliament. Participants perceived an intensification of political climate during the pre-election period, which they attributed to a significant connection between electoral and intraorganizational politics. Additionally, a perceived organizational political climate intensifies engagement in a range of political behaviors throughout an organization and is connected with an administrative role. The findings suggest that managers use “political capital” that the election period provides to influence and manipulate their organization's future and their own.     

Developing a strategy for an Industrial Training Board—a participative approach

The article presents the experience of the authors of designing and working in a participative strategic review and decision making process which involved representatives of employers, trade unions and education; and the analysis and presentation of the results on behalf of an Industry Training Board (a government funded organization) to the Manpower Services Commission, its parent body and link to Government. It considers past practice and the new approach adopted in October 1975, with particular reference to: The Overall Programme of Activities The Review Process The Strategic Workshop Process and gives the authors' conclusions and thoughts to date on the results together with possible developments and improvements to both the process and their own organization's future strategy.     

Decision model for product rollover in manufacturing operations

The purpose of this study is to investigate critical decisions when planning for product rollover at a manufacturing company, and how to organise these decisions. A literature review and a case study are used to develop a decision model. The findings indicate that product rollover can be organised in a five-phase decision model. The research quality is strengthened by a structured literature review, but it can be argued that more empirical research is needed for validation. For researchers, this paper contributes with the identification of critical decisions and a model for product rollover. For practitioners, the study highlights the need to acknowledge the importance of product rollover and its role as a competitive weapon. In earlier studies, product rollover has mainly been investigated from a market perspective, so that this study contributes by investigating the issue from a manufacturing perspective.     

Competing on Time: An Integrated Framework to Optimize Dynamic Time‐to‐Market and Production Decisions

This study develops a comprehensive framework to optimize new product introduction timing and subsequent production decisions faced by a component supplier. Prior to market entry, the supplier performs process design activities, which improve manufacturing yield and the chances of getting qualified for the customer's product. However, a long delay in market entry allows competitors to enter the market and pass the customer's qualification process before the supplier, reducing the supplier's share of the customer's business. After entering the market and if qualified, the supplier also needs to decide how much to produce for a finite planning horizon by considering several factors such as manufacturing yield and stochastic demand, both of which depend on the earlier time‐to‐market decision. To capture this dependency, we develop a sequential, nested, two‐stage decision framework to optimize the time‐to‐market and production decisions in relation to each other. We show that the supplier's optimal market entry and qualification timing decision need to be revised in real time based on the number of qualified competitors at the time of market‐entry decision. We establish the optimality of a threshold policy. Following this policy, at the beginning of each decision epoch, the supplier should optimally stop preparing for qualification and decide whether to enter the market if her order among qualified competitors exceeds a predetermined threshold. We also prove that the supplier's optimal production policy is a state‐dependent, base‐stock policy, which depends on the time‐to‐market and qualification decisions. The proposed framework also enables a firm to quantify how market conditions (such as price and competitor entry behavior) and operating conditions (such as the rate of learning and inventory/production‐related costs) affect time‐to‐market strategy and post‐entry production decisions.     

Subordinate Participation in Audit Budgeting Decisions: A Comparison of Decisions Influenced by Organizational Factors to Decisions Conforming with the Vroom-Jago Model*

This study examines the role of subordinate participation in the effectiveness of audit hours budget decisions in accounting firms. The study compares decisions influenced by organizational factors (such as organizational policies or the preferences of the superior) to decisions that conform to the Vroom-Jago (VJ) model. Our results indicate that actual level of participation used in budget decisions appears to be based primarily on perceived preferences of superiors and participation styles available under the circumstancesof the individual audit. However, results also indicate that decisions consistent with the Vroom-Jago model are characterized by higher decision quality and increased subordinatedevelopment. Since managers are apparently reluctant to use decision styles that conflictwith organizational factors, accounting firms may wish to gather information regarding the attributes of the decision context and use the VJ model to establish their available decision styles and determine the preferences of superiors. Doing so has the advantage of considering decision-specific attributes while enhancing the probability of manager compliance with a desired decision style.     

Is your information system mature enough for computerized planning?

This paper presents the results of a study of computerized planning models in 235 firms throughout the world. The authors argue that organizational climate can be a serious pitfall to the inplementation of long-range planning systems. However, their view of climate extends beyond the traditional behavioral domain to include the sophistication of the organization's information system. The paper addresses itself to one of the key questions affecting the implementation of long-range planning systems. Why do some organizations develop computerized planning models and others do not?