How to Manage Performance-Based Contracting

2020 ◽  
Author(s):  
Andreas H. Glas ◽  
Michael Essig
Keyword(s):  
Two Dimensions ◽  
Management Control ◽  
Management Approach ◽  
Management Problem ◽  
Goal Congruence ◽  
Supplier Relationships ◽  
Management By Objectives ◽  
Outcome Goals ◽  
Managerial Implications ◽  
Peter Drucker

Peter Drucker formulated a management by objectives approach in the 1950s. That approach is a management system based on goal congruence as a means of improving performance. Since then, this management approach developed from leadership of employees to the arena of buyer–supplier relationships, where the approach is called performance-based contracting (PBC) and merges outcome goals with incentives. This chapter briefly introduces the peculiarities and differences of PBC in contrast to more traditional approaches. The chapter indicates that PBC is not just a contract, but in fact a strategic approach, and thus necessitates strategic management activities. Therefore, the focus of this work is on how to manage PBC. For this purpose, the management problem is differentiated into three management needs in two dimensions: The first dimension is the management of the supply architecture. This dimension has two relevant management needs: (a) positioning of PBC and (b) PBC subsupplier management. The second dimension addresses the need for a PBC (project) management in the buyer–supplier relationship. That dimension is further split into ten different steps. To address the management needs, insights from management control theory and new institutional economies theory are used. On this basis, this chapter conceptualizes both management dimensions. Insights about the main decisions for each dimension are given. These insights build the basis for several propositions and managerial implications.

Recorded Business Meetings and AI Algorithmic Tools: Negotiating Privacy Concerns, Psychological Safety, and Control

2021 ◽  
pp. 232948842110370
Author(s):  
Peter W. Cardon ◽  
Haibing Ma ◽  
Carolin Fleischmann
Keyword(s):  
Social Contract ◽  
Data Privacy ◽  
Psychological Safety ◽  
Two Dimensions ◽  
Management Control ◽  
Privacy Concerns ◽  
Business Meetings ◽  
Control Versus ◽  
Algorithmic Analysis ◽  
And Control

Artificial intelligence (AI) algorithmic tools that analyze and evaluate recorded meeting data may provide many new opportunities for employees, teams, and organizations. Yet, these new and emerging AI tools raise a variety of issues related to privacy, psychological safety, and control. Based on in-depth interviews with 50 American, Chinese, and German employees, this research identified five key tensions related to algorithmic analysis of recorded meetings: employee control of data versus management control of data, privacy versus transparency, reduced psychological safety versus enhanced psychological safety, learning versus evaluation, and trust in AI versus trust in people. More broadly, these tensions reflect two dimensions to inform organizational policymaking and guidelines: safety versus risk and employee control versus management control. Based on a quadrant configuration of these dimensions, we propose the following approaches to managing algorithmic applications to recording meeting data: the surveillance, benevolent control, meritocratic, and social contract approaches. We suggest the social contract approach facilitates the most robust dialog about the application of algorithmic tools to recorded meeting data, potentially leading to higher employee control and sense of safety.

Enabling formal MCS design and use: a meta-synthesis of qualitative research

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marc Janka
Keyword(s):  
Qualitative Research ◽  
Design Methodology ◽  
Management Control ◽  
Employee Behavior ◽  
Goal Congruence ◽  
Management Control System ◽  
Content Type ◽  
Daily Work ◽  
Management Literature ◽  
Design Characteristics

Purpose This study aims to synthesize qualitative research in the accounting and management literature that builds on the concept of enabling formalization. The framework for the meta-synthesis integrates formal management control system (MCS) design applying the package typology and two modes of MCS use, namely, diagnostic and interactive. Design/methodology/approach The meta-synthesis is based on 34 case studies gathered by a systematic literature search. Qualitative research mining software (Leximancer) was used to facilitate an initial analysis, upon which an in-depth manual analysis was conducted. Findings The findings indicate that the generic features of enabling formalization – specifically, flexibility and repair – help employees better deal with inevitable contingencies in their daily work through continuous self-improvement. In many circumstances, there is a need to change common organizational practices, which sometimes requires realignment to direct employee behavior toward goal congruence. The (temporary) coercion of employees does not seem to cause dysfunctional behavior or resistance as long as the broader MCS package follows the design features of enabling formalization – specifically, transparency. The interactive use of personnel/cultural controls appears to play a crucial role within the whole MCS package in balancing tensions between coercion and enabling formalization. Originality/value This study adds to the understanding of formal MCS design characteristics perceived by managers and employees as enabling. Furthermore, it shows how managers of these organizations use formal MCS under enabling formalization.

Role of ambidexterity and learning capability in firm performance

2018 ◽  
Vol 48 (4) ◽  
pp. 517-536 ◽  
Author(s):  
Sanjay Dhir ◽  
Swati Dhir
Keyword(s):  
Firm Performance ◽  
Developed Countries ◽  
Two Dimensions ◽  
Survey Method ◽  
Learning Capability ◽  
Content Type ◽  
Multiple Resources ◽  
Managerial Implications ◽  
Managerial Positions ◽  
Exploration Exploitation

Purpose This study aims to comprehend the ambidexterity and organizational learning capability construct in the Indian E-commerce industry context. Design/methodology/approach The survey method was adopted for this study. A survey was circulated among the personnel working in E-commerce companies in India. The focus was on people working in managerial positions and had at least three years of experience in the same industry. Findings This paper investigates the link between two dimensions of ambidexterity, i.e., exploration, exploitation and learning capability in firm performance. The paper also establishes the moderating effect of the learning capability on the two dimensions of ambidexterity and firm’s performance. Research/limitations/implications Our focus was to cover most of the E-commerce companies, yet to generalize the research the analysis needs to be conducted with even more E-commerce companies. Although we took extraordinary care to gather data from multiple resources and discarded the data that was incomplete or was from lower level employees yet, we need a larger sample to establish the causal claim of our model. Practical/implications We reason that learning capability of a firm impacts the two dimensions and firms should focus both on external and internal knowledge to benefit from the ambidexterity efforts. Social/implications Learning capability influences a firm’s performance and has managerial implications. The analysis’ results on the India based ecommerce companies differs from prior research done in more developed countries and other industries. Originality/value No prior research has been done from this perspective in the Indian context, and thus our work opens up new avenues for researchers to look at.Keywords Ambidexterity, Firm performance, Learning capability

Drivers of changes in product development rules

2015 ◽  
Vol 18 (2) ◽  
pp. 218-237 ◽  
Author(s):  
John K Christiansen ◽  
Claus J Varnes
Keyword(s):  
Product Development ◽  
Organizational Structures ◽  
Historical Record ◽  
Management Control ◽  
Management Approach ◽  
Rule Based ◽  
Content Type ◽  
Record Keeping ◽  
Dynamic Relationship ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the drivers that induce companies to change their rules for managing product development. Most companies use a form of rule-based management approach, but surprisingly little is known about what makes companies change these rules. Furthermore, this management technology also has developed over time into different versions, but what drives firms from one version to another has only been suggested, not empirically studied. Design/methodology/approach – The dynamics of the rules of five companies are analyzed over a period of more than ten years based on three rounds of interviews with 40 managers. Findings – Previous research has assumed that the dynamics of product development rules are based on internal learning processes, and that increasingly competent management will stimulate the implementation of newer and more complex rule regimes. However, the analysis here indicates that there are different drivers, both internal and external, that cause companies to adopt new rules or modify their existing ones, such as changes in organizational structures, organizational conflicts and changes in ownership or strategy. In addition, contrary to the predictions in previous research, companies sometimes move back and forth between different generations of rules. Companies that have moved to a more flexible third generation of rules might revert to their second generation rules, or supplement their flexibility with an increased level of management control and information systems. A model is proposed to explain the relationship between the drivers of rule change and the actual dynamics of rules, incorporating two sets of moderators: organizational moderators and rule-related moderators. Research limitations/implications – The findings indicate that many factors influence the modification of rules, and that there is no simple linear progression from one generation to another. Organizational learning is one among several other factors that influences the dynamics of rules for managing product development. Further research is needed to explore the dynamic relationship between different factors, the proposed moderators and changes to rules. Lack of historical record keeping in companies puts special requirements on research concerning rules. Practical implications – Companies need to consider how and why their present versions of rules have emerged, whether or not the existing rules can actually solve the challenges they face today, whether or not the rules support the intended company strategy, and what mechanisms influence their product development rules. Originality/value – A great deal of research has investigated the relationship between the uses of structured rule-based approaches to manage product development, but little is known about what makes these rules change. This is the first study to uncover the multitude of drivers that stimulate change in product development rules and to suggest sets of moderators that influence the outcome.

Estimating the Effect of a Fit-Focused Employee Selection Program

2018 ◽  
Vol 31 (2) ◽  
pp. 159-175 ◽  
Author(s):  
Nai-Yng Liu ◽  
Shuen-Zen Liu ◽  
Hsuan-Lien Chu
Keyword(s):  
Job Performance ◽  
Empirical Data ◽  
Employee Selection ◽  
Management Control ◽  
Goal Congruence ◽  
Selection Program ◽  
Empirical Results ◽  
Systematic Selection ◽  
Control Tool

ABSTRACTUsing empirical data from a Taiwanese realty company, this paper examines the effects of a fit-focused employee selection program in serving as a management control tool. Empirical results indicate that program-selected probationers show a higher level of goal congruence with the firm and better job performance than non-program-selected individuals. The results provide evidence that systematic selection may serve as a useful mechanism for finding better-fitting employees.

scholarly journals Integration of Extra-Information for Belief Function Theory Conflict Management Problem Through Generic Association Rules

2014 ◽  
Vol 22 (04) ◽  
pp. 531-551 ◽  
Author(s):  
Ahmed Samet ◽  
Eric Lefèvre ◽  
Sadok Ben Yahia
Keyword(s):  
Decision Making ◽  
Conflict Management ◽  
Information Fusion ◽  
Information Sources ◽  
Function Theory ◽  
Belief Function ◽  
Management Approach ◽  
Management Problem ◽  
Extra Information ◽  
Belief Function Theory

Decision making by considering multiple information sources could provide interesting results. For that reason, fusion formalisms were a major concern in the belief function community. In this context, the Belief function theory allows information fusion thanks to its combinations tools that it integrates. Nevertheless, belief function theory highlights a limit in the merging of contradictory (conflictual) sources. Many authors tackled this problem offering contributions in this field. Unfortunately, no proposed operator has distinguished by its adequacy regardless the type of handled sources. In this paper, we demonstrate the limits of some referenced works and we diagnostic the issues origin. We propose a conflict management approach based on an extra-information that guides the treatment. We also integrate a generic associative base borrowed from the data mining domain in order to apply the adequate conflict management.

scholarly journals A Measure of Tourist Responsibility

2021 ◽  
Vol 13 (6) ◽  
pp. 3351
Author(s):  
Álvaro Dias ◽  
Inês Aldana ◽  
Leandro Pereira ◽  
Renato Lopes da Lopes da Costa ◽  
Nelson António
Keyword(s):  
Factor Analysis ◽  
Ecological Footprint ◽  
Relevant Information ◽  
Two Dimensions ◽  
Civic Responsibility ◽  
Face To Face ◽  
Mass Tourism ◽  
Confirmatory Factor ◽  
Managerial Implications ◽  
Method Approach

In a post-pandemic context, destinations are questioning mass tourism, and are focusing on more sustainable segments, looking for more responsible tourists. This requires obtaining relevant information to assess what kind of tourists visit the destination and, at the same time, to monitor changes in tourists’ behavior and attitudes. This study aims to respond to this challenge by creating a measure to assess the tourist’s responsibility. Using a scale development method, a sequential mixed-method approach is conducted to identify scale dimensions and items. An initial qualitative approach is implemented for item generation using focus group and face-to-face interviews. Then, a second study based on a survey is conducted for exploratory factor analysis. A third study, also based on a survey is performed to obtain a new sample for confirmatory factor analysis. Findings show two dimensions: civic responsibility and philanthropic responsibility, allowing an understanding of how tourists can act responsibly in destinations without compromising the ecological footprint on the planet. Theoretical and managerial implications are discussed.

Role of Resource Integration and Composite Expertise for Unique Value Creation

2016 ◽  
Vol 5 (2) ◽  
Author(s):  
Rita Sharma
Keyword(s):  
Value Creation ◽  
Reliability And Validity ◽  
Customer Participation ◽  
Future Research ◽  
Resource Integration ◽  
Supplier Relationships ◽  
Future Research Agenda ◽  
Managerial Implications ◽  
Validity Tests

In the terminology of Service-Dominant, customer has become a co-creator of the value. This emphasises the development of customer-supplier relationships through interaction and dialogue. However, research to date suggests that relatively little is known about how consumers integrate their resources and engage in co-creation of value with the service provider. Thus, the present study develops a framework of the facilitators or antecedents of the co-creation of value for understanding and managing creation of unique value. Thus, both the ninth and tenth SD logic foundational premises are addressed in this study, in that we consider both the issue of resource integration in the network and the phenomenological nature of unique value co-creation. The study examines the co-creation efforts of the customers of fashionable boutiques of a Jammu city and statistical techniques like CFA and SEM were used to analyse the data. Further, reliability and validity tests were also performed. Based upon a sample of 196 female customers, the study found that resource integration and composite expertise of customers and suppliers significantly influence customer participation, which in turn significantly predicts CCV and unique value in offerings. The study also discusses the managerial implications, limitations and future research agenda at the end.

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