Role of management devices in enacting strategy – case study of Shared Service Centre

2016 ◽  
Vol 12 (4) ◽  
pp. 504-521 ◽  
Author(s):  
Daniel Harritz
Keyword(s):  
Public Sector ◽  
Actor Network Theory ◽  
Strategic Decision ◽  
Strategic Decisions ◽  
Content Type ◽  
The Public ◽  
Service Centre ◽  
Shared Service ◽  
Case Based

Purpose This paper aims to illustrate the role of management devices in enacting strategy and strategic decisions, resulting in the development of a Shared Service Centre (SSC) in a Danish municipality. It shows how devices interact in defending, rejecting and reframing strategy, leading to the closure of the SSC to pave the way for new strategic ideas. Design/methodology/approach It uses a longitudinal case-based approach, which draws on actor-network theory, particularly Callon’s (1998) notions of framing and overflowing. These notions help describe strategic events and processes by highlighting the active role of non-human entities, such as management devices, in enacting and reformulating strategy. Findings Different devices have become key actants in shaping and formulating the new strategy in the municipality and the strategic decision to construct an SSC. However, different devices mobilise different localities that protest, reject and participate in the closure of the SSC through a reframing strategy. Research limitations/implications The study is subject to the general limitations of case-based research. Thus, the propositions should be further investigated to elaborate the performative role of management devices. Practical implications The findings facilitate a deeper understanding of factors triggering strategic development in the public sector. Also, it identifies aspects leading to failures by investigating how different devices allow local actors to stay connected and affect the SSC’s creation. Originality/value This study is the first to use a performative method to highlight the temporary and local nature of enacting strategic decisions to construct an SSC in the public sector.

scholarly journals M&As get another assist: when CEOs add intuition to the decision mix

2019 ◽  
Vol 41 (3) ◽  
pp. 57-65 ◽  
Author(s):  
Hannu Kuusela ◽  
Siiri Koivumäki ◽  
Mika Yrjölä
Keyword(s):  
Decision Making ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Strategic Decisions ◽  
Group Interactions ◽  
Content Type ◽  
Individual Level ◽  
Top Executives ◽  
Positive Effects

Purpose The purpose of this paper is to analyze the use of intuition in successful merger and acquisition (M&A) decisions. M&As are strategic decisions that can create growth, open up new markets and strengthen the company’s position and competence portfolio. Strategic decisions involve, by their very nature, considerable investments and have company-wide and long-lasting implications. At the same time, the decision-makers have access to large amounts of data from various sources, but these data are often uncertain and inaccurate and entail numerous assumptions. Therefore, M&A decisions are only rational to a degree, and emotional elements, such as intuition, likely play a significant role. Design/methodology/approach Acknowledging how critically important, but also how difficult, M&As are, the authors analyzed nine instances (cases) of successful acquisitions, in which the executives believed that the role of intuition was critical. Findings The findings show that intuition in strategic decision-making emerges on three levels: individual, collective and environmental. Practical implications This paper encourages top executives to proactively acknowledge and take advantage of intuition in their strategic decision-making. It proposes a framework to help with these endeavors. Originality/value This paper contributes by highlighting that intuition is not just a factor on an individual level; it can also surface from group interactions as well as the environment. Surprisingly, all the executives interviewed spoke of the positive effects that intuition can have on acquisition decisions. This is in contrast to the dominant view that considers intuition as nonrational and even as a form of bias.

The role of heuristic-driven biases in entrepreneurial strategic decision-making: evidence from an emerging economy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maqsood Ahmad ◽  
Syed Zulfiqar Ali Shah ◽  
Yasar Abbass
Keyword(s):  
Decision Making ◽  
Emerging Economy ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Decision Making Process ◽  
Strategic Decisions ◽  
Content Type ◽  
The Relationship

PurposeThis article aims to clarify the mechanism by which heuristic-driven biases influence the entrepreneurial strategic decision-making in an emerging economy.Design/methodology/approachEntrepreneurs' heuristic-driven biases have been measured using a questionnaire, comprising numerous items, including indicators of entrepreneurial strategic decision-making. To examine the relationship between heuristic-driven biases and entrepreneurial strategic decision-making process, a 5-point Likert scale questionnaire has been used to collect data from the sample of 169 entrepreneurs who operate in small- and medium-sized enterprises (SMEs). The collected data were analyzed using SPSS and Amos graphics software. Hypotheses were tested using structural equation modeling (SEM) technique.FindingsThe article provides empirical insights into the relationship between heuristic-driven biases and entrepreneurial strategic decision-making. The results suggest that heuristic-driven biases (anchoring and adjustment, representativeness, availability and overconfidence) have a markedly negative influence on the strategic decisions made by entrepreneurs in emerging markets. It means that heuristic-driven biases can impair the quality of the entrepreneurial strategic decision-making process.Practical implicationsThe article encourages entrepreneurs to avoid relying on cognitive heuristics or their feelings when making strategic decisions. It provides awareness and understanding of heuristic-driven biases in entrepreneurial strategic decisions, which could be very useful for business actors such as entrepreneurs, managers and entire organizations. Understanding regarding the role of heuristic-driven biases in entrepreneurial strategic decisions may help entrepreneurs to improve the quality of their decision-making. They can improve the quality of their decision-making by recognizing their behavioral biases and errors of judgment, to which we are all prone, resulting in a more appropriate selection of entrepreneurial opportunities.Originality/valueThe current study is the first to focus on links between heuristic-driven bias and the entrepreneurial strategic decision-making in Pakistan—an emerging economy. This article enhanced the understanding of the role that heuristic-driven bias plays in the entrepreneurial strategic decisions and more importantly, it went some way toward enhancing understanding of behavioral aspects and their influence on entrepreneurial strategic decision-making in an emerging market. It also adds to the literature in the area of entrepreneurial management specifically the role of heuristics in entrepreneurial strategic decision-making; this field is in its initial stage, even in developed countries, while, in developing countries, little work has been done.

Lean Six Sigma for public sector organizations: is it a myth or reality?

2017 ◽  
Vol 34 (9) ◽  
pp. 1402-1411 ◽  
Author(s):  
Jiju Antony ◽  
Bryan Rodgers ◽  
Elizabeth A. Cudney
Keyword(s):  
Public Sector ◽  
Six Sigma ◽  
Lean Six Sigma ◽  
Service Organizations ◽  
Improvement Strategy ◽  
Content Type ◽  
The Public ◽  
Public Sector Organizations ◽  
Potential Applications

Purpose Lean Six Sigma (LSS) as a process excellence has been widely adopted in both manufacturing and service organizations; however, its application in the public sector has not been widely explored. Is LSS still a myth or reality in our public sector organizations? The purpose of this paper is to make an attempt to debate about the use of LSS and its potential applications in the public sector context. Design/methodology/approach The initial approach is to critically evaluate the role of LSS in various public sector contexts, followed by showcasing four case studies from four different public sector settings: higher education, police service, public hospital and local government. Findings LSS methodology can be embraced by all public sector organizations to create efficient and effective processes to provide enhanced customer experience and value at reduced operational costs. Research limitations/implications This paper seeks to contribute to and broaden the limited body of evidence of the applicability of LSS to public sector organizations and identifies areas for further research and review. Practical implications LSS will continue to grow across many public sector organizations in Europe and other parts of the world over the forthcoming years. However, what will eventually determine if LSS is viewed by public sector organizations as just a passing management fad or not largely depends on the leadership and success of its execution. If LSS is deployed in its true sense across the public sector organizations at a global level, the hard cash savings generated can reach several billions. Originality/value The paper yields an immense value to both research scholars and practitioners who are engaged in the introduction of LSS as a business process improvement strategy to achieve and sustain competitive advantage. Moreover, this paper makes an attempt to dispel the myth of LSS which have been quite prevalent in many public sector organizations around us today.

Mexico power centralisation will bring heavy criticism

2019 ◽  
Keyword(s):  
Public Sector ◽  
Central Government ◽  
State Governments ◽  
Public Servants ◽  
Content Type ◽  
The Public ◽  
State Capture

Subject Balance of powers in Mexico. Significance Since taking office last year, President Andres Manuel Lopez Obrador (AMLO) and his National Renovation Movement (Morena) have taken several measures to make savings in the public sector and to allocate resources to tackling poverty and corruption. Such goals enjoy widespread support, but some of the mechanisms employed to achieve them are concentrating power with the central government. The areas most affected include constitutionally autonomous entities within the administration, other branches of government such as the judiciary, and state governments. Impacts Given the role of poorly paid public servants in state capture, salary cuts may prove counterproductive in fighting corruption. Without a system that impartially investigates, prosecutes and sanctions wrongdoing by public servants, corruption will not abate. Centralisation will strengthen the administration initially but leave it vulnerable in the long term when things do not work as intended.

scholarly journals The institutional change in the role of the public sector accountant in facilitating accountability: a longitudinal study of Australian local councils

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Belinda Williams ◽  
Sumit Lodhia ◽  
Mitali Panchal Arora ◽  
Lisa McManus
Keyword(s):  
Longitudinal Study ◽  
Public Sector ◽  
Financial Reporting ◽  
Mail Survey ◽  
Further Education ◽  
Policy Implications ◽  
Content Type ◽  
The Public ◽  
Government Sector

Purpose With an increased focus on the need for higher levels of accountability and transparency in the public sector, this study aims to provide insights into non-financial reporting (NFR) practices as a mechanism in facilitating accountability. This study also aims to investigate the changing role of the public sector accountant in this process, specifically focusing on the Australian local government sector. Design/methodology/approach The authors used a mail survey across two time periods, 2009 and 2017, to analyse the role of accountants in NFR practices. Institutional theory provides a theoretical framing for the study. Findings The findings reveal an increase in the use of accountants across time in the preparation of voluntary information, being used in a variety of roles because of their financial abilities and analytical skills. The results also indicate a shift has occurred with more emphasis being placed on cross-departmental approaches to NFP incorporating the accountant. These results suggest a greater recognition of the role of accountants in NFR and a dilution of accountant’s boundaries in relation to their existing traditional focus. Research limitations/implications This study contributes to the academic NFR literature by providing evidence of an institutional shift that is occurring with the accountant’s role widening to a broader context beyond their traditional roles. Practical implications This longitudinal study provides practical evidence to management of the potential offered by accountants as the public sector seeks to achieve higher levels of accountability and transparency. Policy implications also arise in relation to the need for development of quality assurance guidelines and further education and training as the public sector embarks on the journey of NFR. Originality/value To the best of the authors’ knowledge, this study is the first that has explored the evolution of NFR over a period of time through its focus on the role of accountants.

Accrual accounting in Italian universities: a technical perspective

2015 ◽  
Vol 28 (6) ◽  
pp. 494-508 ◽  
Author(s):  
Tommaso Agasisti ◽  
Giuseppe Catalano ◽  
Ferdinando Di Carlo ◽  
Angelo Erbacci
Keyword(s):  
Public Sector ◽  
Accrual Accounting ◽  
Content Type ◽  
The Public ◽  
Accounting Principles ◽  
Low Degree ◽  
Accounting Rules ◽  
The Impact ◽  
Rules Set

Purpose – The purpose of this paper is to examine the impact of full accrual accounting on the Italian public universities and, in this context, how some technical-accounting problems typical of public sector (recognition and valuation issues) have been addressed. An additional purpose investigated in this paper is the role of International Public Sector Accounting Standards (IPSASs) in helping to overcome these technical-accounting issues, for the case under examination. Design/methodology/approach – The paper involves studying whether, and to what degree, some of the accounting choices made by the universities complied with the principles of full accrual accounting for several specific accounting registrations characterised by the presence of recognition and valuation issues. During this investigation, the paper also analyses whether the universities followed the accounting rules set out by the IPSAS Board. Findings – The findings highlight that, in general, there is a low degree of compliance with full accrual accounting principles and they also revealed that IPSASs do not provide any detailed guidelines that can help universities in overcoming the recognition and valuation problems typical of the public sector. Originality/value – The analysis presented in the paper confirms the findings of previous literature identifying a low level of compliance to full accrual accounting principles. This research shed light also on the longstanding debate about the role of IPSASs in promoting full accrual accounting in the public sector, revealing the scarce contribution of IPSASs to this process.

In-house or outsourcing FM services in the public sector

2017 ◽  
Vol 15 (3) ◽  
pp. 262-284 ◽  
Author(s):  
Tore Brandstveit Haugen ◽  
Nora Johanne Klungseth
Keyword(s):  
Public Sector ◽  
Strategic Decision ◽  
Facilities Management ◽  
Public And Private ◽  
Content Type ◽  
Internal Resources ◽  
The Public ◽  
The Past ◽  
Knowledge Triangle ◽  
Public And Private Sector

Purpose The purpose of this paper is to explore the development of knowledge about facilities management (FM), in particular, the management of FM services in practice, education and research. The paper questions whether we know more about optimal models for in-house or outsourcing FM after 25 years of applied research and development of best practices. Design/methodology/approach The paper is based on literature reviews, case studies and personal experiences from practice for over 25 years, concentrating on the public sector. The paper maintains an international focus on the FM development, with particular focus on the development in Norway and the Nordic countries. The knowledge development triangle, and its integration of education, research and practice, is used as an underlying theoretical framework. Findings The knowledge regarding management of FM services in both the public and private sector has been developed over the past two decades. The changes in both sectors is reflected in all the three aspects of the knowledge triangle. While the use of outsourcing increased significantly in popularity during the past 25 years, the Norwegian profile continues to have limited use of outsourcing. Research limitations/implications The paper is based on a qualified selection of doctoral theses, research reports and scientific articles published in the period 1990-2015. The explorations include limited quantitative data. Practical implications The choice for FM in practice, whether fully or partly to produce services with internal resources or to make arrangements with external suppliers, is an important strategic decision regarding the choice of a procurement strategy for the company or the organisation. This decision is not necessarily about outsourcing or in-house but rather the strategic sourcing and management of the needed services. Originality value A total of 25 years of research have shown that a simple solution and answer to the questions about in-house or outsourcing FM services is lacking. To find a good solution, it is necessary to understand the content of FM services with respect to quality and efficiency, and to understand the interaction between FM, the core activities and the users.

Accounting for unstable environments in the public sector: managing post-COVID-19 times

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Francisco Bastida ◽  
Enrico Bracci ◽  
Zahirul Hoque
Keyword(s):  
Public Sector ◽  
Social Inclusion ◽  
New Normal ◽  
Content Type ◽  
Future Studies ◽  
The Public ◽  
The Social ◽  
Public Sector Organizations ◽  
New Research

PurposeThis paper aims at reflecting on the role of accounting and accountability mechanisms in pre-COVID-19 conditions and how it may evolve in “new normal”, post-COVID-19 conditions.Design/methodology/approachMoving from the papers in this special issue, the authors draw on the literature on the social construction and reflective approaches to understand pre- and post-COVID-19 events and the role of accounting therein.FindingsThe “new normal” may exacerbated the difficulty of public sector organizations to manage the uncertainties and risks associated to the new context. While “old” wicked issues remain, such as social inclusion, poverty and corruption, new ones come. The authors speculate on the “new” and “old” roles accounting and accountability can play to support governments.Originality/valueThe paper contributes by setting new research avenues for future studies in a post-COVID-19 era.

Fall of a Titan: understanding the Jet Airways crisis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shashank Kathpal ◽  
Asif Akhtar
Keyword(s):  
Strategic Management ◽  
Market Share ◽  
Swot Analysis ◽  
Strategic Decision ◽  
Aviation Industry ◽  
Strategic Decisions ◽  
Strategic Choices ◽  
Content Type ◽  
Management Concepts

Theoretical basis The competitive environment of the Indian aviation industry is studied using Porter's five forces model. The SWOT analysis is used to examine the competitive position of Jet Airways. The role of Merger & Acquisition in the current Jet Airways crisis is also examined. Relevant texts studied are as follows: Kazmi, A. and Kazmi A. (1992). Strategic Management. McGraw-Hill Education; and Porter, M. (2008). The Five Competitive Forces That Shape Strategy. Harvard business review. 86. 78–93, 137. Research methodology This data for this case was extracted from secondary sources. These sources comprise newspaper articles, reports from the industry, reports of the company and the company's website. For gaining clarity over concepts, strategic management book by Azhar Kazmi and Adela Kazmi was referred. This case also uses websites such as moneycontrol.com to analyze financial health of the company. In the end, this case also uses some existing reports from the sources like World Bank and plane spotters to analyze the status of Jet Airways and also Indian aviation industry. This case has been tested in the classroom with MBA students in a class of Business Policy and Strategic management. Case overview/synopsis The Jet Airways, which once had the largest market share in the Indian aviation industry, has reached bankruptcy. Mr. Naresh Goyal, known for his aggressive expansion strategies, has already filed for bankruptcy. This case presents how buying aircrafts' obsession with poor choices on Mergers/Acquisitions could result in bankruptcy. The same could be substantiated from the fact that Goyal had many (197) of his fleet's latest aircraft. Goyal was also criticized for buying Sahara Airlines, which was performing poorly in the market. Spending a large portion of the budget in capital expenditure in an industry where operational cost is very high, only the cost of turbine fuel amounts to 50% of total operational expense. The high expenditure on capital budget and increasing operational cost weaken the financial position of Jet Airways. Despite earning decent revenue and having the highest market share in 2010, Jet Airways made losses in three consecutive years, i.e. from 2009 to 2011. After 2011, when the Indian aviation industry witnessed a high level of competition and growth in low-cost carriers (LCC), Jet Airways' survival was up for a toss. Despite the desperate measures of cost-cutting and attracting potential investors, Jet Airways reached the verge of bankruptcy. The current case emphasized the need to balance safe and riskier options, even for the market leaders like Jet Airways could fail due to poor strategic choices. This case presents some harsh realities on funds allocation. In 2010, where Jet Airways secure the highest market share and decent total revenue, it realized net losses. The case study also explains the need to adapt to the dynamics of the industry. After 2011, when LCC started dominating the Indian aviation industry, Jet Airways did not change its operation strategy and facing severe consequences. The case was about the poor strategic decisions taken by the founder of Jet Airways, Mr. Naresh Goyal, which adversely affected the health of the airline. The case also explores the possible strategic choices that Goyal could have taken to ensure Jet Airways' survival. Through this case, an attempt had been made to highlight the importance of various concepts that we need to understand while making a strategic decision for any organization. In the end, this case emphasized the role of strategy in managing an organization successfully. Complexity academic level The case study's target group should be Undergraduate and Postgraduate students of the Management discipline who study Strategic Management as a specialization or as the subject. This case can also be used in the Management Development Program for senior executives taking any vocational course or workshop on Business Strategy. The case focuses on one of the fastest emerging markets, i.e. India, and could be proven valuable for many multinationals companies. The case presents the changing competitive dynamics of the Indian aviation industry. The central theme on which the case revolves is the importance of sound strategic choices in a dynamic market or industry. After analyzing the case, the students would understand the complex nature of strategic decision-making and any poor strategic decisions ripple effect. This case could teach essential strategic management concepts like "SWOT analysis" and "PESTEL analysis." This case should be used to teach strategic management concepts only and not act as a judgment tool for any organization.

Organizational climate and creative performance in the public sector

2020 ◽  
Vol 32 (4) ◽  
pp. 615-631
Author(s):  
Barbara Rebecca Mutonyi ◽  
Terje Slåtten ◽  
Gudbrand Lien
Keyword(s):  
Public Sector ◽  
Organizational Climate ◽  
Current Knowledge ◽  
Innovative Behavior ◽  
Creative Performance ◽  
Content Type ◽  
Performance Variables ◽  
The Public ◽  
Individual Innovative Behavior

Purpose The aim of this study is to examine the role of organizational climate in employees’ creative performance using the public sector as an empirical context. The employees’ creative performance is divided into two entities and studied as two separate effect variables: individual creativity and individual innovative behavior. Design/methodology/approach A conceptual model is developed and tested in a survey in which employees of a public sector organization participated. Findings The findings indicate that organizational climate has an important role in employees’ creative performance. The organizational climate showed a positive and significant link to the two creative performance variables included in this study. Moreover, the study revealed that individual creativity mediates the relationship between organizational climate and individual innovative behavior. Research limitations/implications This paper is limited to examining the role of organizational climate on two creative performance variables related to individual employees in the public sector. To trigger individual creativity and individual innovative behavior in the public sector, there is a need for managers to build, develop and maintain an organizational climate that supports both employees’ creativity and enthusiasm in implementing those novel and useful ideas. Originality/value To the best of the authors’ knowledge, this study is among the first in the public sector to demonstrate the importance of organizational climate for employees’ individual creative performance. The findings of this study adds to our current knowledge and understanding of the value of organizational climate, and its influence on individual creative performance in the public sector.

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