The impact of organisational change on the nature and extent of training in Australian enterprises

This article reports on a study investigating the relationship between the introduction of new management practices and the training provided by Australian enterprises for their employees. The new management practices investigated include teamworking, total quality management, lean production, business process re‐engineering and the learning organisation. The study involved a survey of human resource managers in medium to large size Australian enterprises. The study models the impact of the introduction of new management practices and the extent of training provision in the enterprises and on the form and nature of the training. The article concludes that whereas new management practices have a significant impact on training provision in enterprises, the effect is highly differentiated and that a critical relationship is the integration of training with the business strategy of the enterprise.     

Organisational Virtue,Moral Attentiveness,and the Perceived Role of Ethics and Social Responsibility in Business: The Case of UK HR Practitioners

Examination of the application of virtue ethics to business has only recently started to grapple with the measurement of virtue frameworks in a practical context. This paper furthers this agenda by measuring the impact of virtue at the level of the organisation and examining the extent to which organisational virtue (OV) impacts on moral attentiveness (MA) and the perceived role of ethics and social responsibility in creating organisational effectiveness (PRESOR). It is argued that people who operate in more virtuous organisational contexts will be expected to be more attentive to ethical issues and in turn perceive a greater role for ethics and social responsibility in business. Analysis of results based on a sample of 137 HR professionals shows that where people report that their organisation provides meaningful work, they are more likely to display reflective MA and the belief that ethics and social responsibility are compatible with business objectives, suggesting that organisations who are interested in promoting an ethical culture should focus on their work structures and practices. More generally, OV is shown to have a more complex relationship with PRESOR than hypothesised pointing towards a more nuanced view of OV. The paper examines the implications of the results for organisations and research.     

The breakdown of the workplace ‘family’ and the rise of personnel management within an Australian financial institution 1950–1980

The management of its people defines the way in which an organisation develops the capabilities to successfully compete in the market environment. Since the 1950s, approaches to staff management have evolved from traditional bureaucratic foundations to strategic planning exercises. This article uses a case study approach to investigate the way in which the process of organisational learning evolved in the development of personnel management practices. It suggests that although old and new practices were often overlaid on each other, ‘bridges’ developed which allowed the progressive development of new managerial processes.     

Exploring the Principle of Subsidiarity in Organisational Forms

The paper starts with a case study of a medium-sized company in which a strong and successful change in the organisational form and job design took place. A bureaucratic organisation with highly-specialised jobs was converted into a new organisation in which employees became much more autonomous in managing their own work. This not only entailed new techniques and managerial systems but also a new anthropological vision. Bureaucratic rules were reduced, but not eliminated completely, and management became less authoritarian. Employees could therefore apply greater entrepreneurial spirit, developing their talents in pursuit of the company’s common goals. It is argued that this new organisational form is ethically superior to the old, and reflects the basic requirements of the principle of subsidiarity. The ethical principle of subsidiarity holds that a larger and higher-ranking body should not exercise functions which could be efficiently carried out by a smaller and lesser body; rather the former should support the latter by aiding it in the coordination of its activities with those of the greater community. While the principle has usually been applied in a political context, this paper explores the principle as a moral base for organisational forms within business organisations. Finally, the principle of subsidiarity is analysed in the context of business organisations and proposed as an ethical guideline for organisational forms. This would help to mitigate the effects of those bureaucracies in which individuals, with their dignity, freedom, diversity and capacity for undertaking business activities with entrepreneurial spirit, are often not fully appreciated.     

Leadership and Business Ethics: Does It Matter? Implications for Management

This paper reviews the relationship between organisational leadership, corporate governance and business ethics, and considers the implications for management. Business ethics is defined, and the causes and consequences of unethical behavior are discussed. Issues pertaining to leadership, subordinate and organisation responsibility for business ethics are considered. The changing role of business leaders and the new concept of 'corporate governance' are examined, with an increasing importance being placed on ethical and socially responsible attitudes towards business. Organisational effectiveness and organisational efficiency, formerly central issues for practising managers, with directors thinking in terms of goal achievement for their respective organisations, have now been augmented by an awareness of issues in business ethics, and a requirement for members of the corporate governance to behave in more socially responsible ways. A secondary aim of the paper is to introduce an approach which illustrates how corporate governance and management could deal with some of the moral dilemmas that they may have to face.     

Welfare Policy in German Big Business after the First World War: Vereinigte Stahlwerke AG, 1926–33

According to A.D. Chandler, Jr, the rise of organisational capabilities in German enterprises was decisive for the international economic success of the German Reich before 1914. This article deals with the changes in the organisational structures of enterprises through concentration and diversification and their consequences for welfare policy in German industry. The central question is to what extent the changing organisational structures affected the quality and quantity of welfare provided by companies. The interactions between welfare policy and organisation can be illustrated by the Vereinigte Stahlwerke AG (VSt), the world's second largest iron and steel combine, next to US Steel, in the first half of the twentieth century. After a survey of the traditions of business welfare in Germany since the early nineteenth century, important aspects of industrial welfare policy, such as health insurance, company stores and housing, are analysed in the context of the VSt's organisational development between 1926 and 1933.     

Modelling the Extent of Financial Reporting Practices amongst Australian Manufacturing SMEs

This paper describes an exploratory study of financial reporting practices amongst small and medium-sized enterprises (SMEs) engaged in manufacturing in Australia. Non-linear principal components analysis is employed in empirical derivation of an overall measure of the comprehensiveness of financial reporting practices undertaken in the SMEs investigated. Non-linear principal components analysis is also used in empirically capturing the business context in terms of enterprise and financial management characteristics. Polytomous logistic regression modelling reveals development orientation, extent of owner-management, technological complexity, degree of reliance upon external financial advice, and the financial reporting climate to be the most significant influences on the extent of financial reporting practices in the SMEs under study. Of the business context factors identified, development orientation and financial reporting climate seem to have greatest impact. The study appears to reinforce the impression that SME growth is a key driver towards more sophisticated financial reporting practices. Alternately, better financial reporting may be viewed as an important enabling factor in realising the growth aspirations of such concerns.     

Differences in Male and Female Management Characteristics: A Study of Owner-Manager Businesses

The rise in the number of female managers in recent years has fuelled the debate whether their management characteristics differ in any way from their male counterparts. While most researchers have tended to analyse these gender-related differences within large organisations, this study sets out to explore whether gender has an impact on management characteristics of male and female business owner-managers. In particular, the focus is on the management of established businesses, rather than start-ups. The management characteristics are studied in terms of (1) the owner-manager's managerial style, (2) the nature of the organisational structure, (3) the degree of delegation within the organisation, (4) the manner in which strategic objectives are set, and (5) the importance of personal objectives in the decision making process. In view of its findings that there are significant differences between male and female owner-managers in the way they manage their businesses, the paper considers implications for theory and policy.     

From data problems to questions about sources: elements towards an institutional analysis of population-level organisational change. The case of British building societies, 1845–1980

Abstract

Institutional analyses of population-level organisational change seem particularly well suited to the task of further incorporating historical concerns into organisational theory, as has been advocated by a growing number of authors, both within business history and management and organisation studies. Such an approach has been applied, in particular, to studies of shifts in organisational forms within the early-twentieth-century US thrift industry. The aim of this article, building on the case study of British building societies during the nineteenth and twentieth centuries, is to uncover both the promises and the limitations of this approach in terms of historical epistemology and methodology, and suggest ways to further consolidate the historical grounding of similar approaches to organisational change. In particular, detailed attention paid to sources and to periodisation may point towards improvements in methodology, both within historical institutionalism and neo-institutionalist history.     

Towards an Understanding of Social Responsibility Within the Church of England

This research explores the interplay of individual, organisational and institutional variables that produce the current pattern of social responsibility practices within a specific religious organisation, namely the Church of England. By combining elements primarily of neo-institutional theory with Bourdieu’s theory of practice, we construct a theoretical framework to examine the extent to which social responsibility activity is modified or informed by a distinctive faith perspective. Given that neo-institutional theory predicts a convergence of structures and practices between different organisations operating in the same institutional sector, this research draws on a single case study focusing on social responsibility activity in six different Church of England dioceses and shows that the opposite is actually the case: there is evidence of a significant degree of divergence in terms of organisational practice within the same institutional structure. Reasons for that were found to be the impact of human agency and loose institutional structures. This paper thus contributes to the understanding of social responsibility in religious organisations by exploring the dynamics between institutional pressures, organisational context and individual agents operating in the field of faith-based social responsibility. It thereby also contributes to neo-institutional theory.     

Business history and operations management

Operations management is a key function in the modern organisation and an important area of study in the business school. Like many subjects it remains separated from the business history community. The practice of operations management can gain meaningful and significant lessons from proper consideration of the historical antecedents of current practices. Unfortunately, more than any other business area, operations management has a habit of forgetting the lessons of the past and ‘reinventing the wheel’. The purpose of this paper is to emphasise the value of historical analysis in operations management, assess the level of historical coverage of the development of operations within that subject area (taking a review of OM textbooks as a proxy), and highlight the valuable opportunities for the business history community to engage with their operations colleagues to better guide the next generation of operations management education and practice.     

Business Growth and Performance and the FinancialReporting Practices of Australian Manufacturing SMEs

This article describes an explanatory study of the impact of financial reporting practices upon business growth and performance outcomes amongst small and medium-sized enterprises (SMEs) engaged in manufacturing in Australia. The study is able to establish some statistically significant bivariate associations between the extent and frequency of financial reporting undertaken and certain measures of SME growth and performance. However, the state of financial reporting practices becomes subsumed by other important influences in multivariate analysis. Management is a complex activity affected by a myriad of interacting internal and external factors, and must inevitably be undertaken in an holistic manner in SMEs. Particular practices make a contribution to the whole task without necessarily standing out as all-embracing solutions to problems generally encountered. Thus, it is argued that improved financial reporting should be realistically viewed as simply part of a broader competence in financial management which, taken together with other functional capabilities, is likely to lead to more effective and efficient management of SMEs and significantly improve their prospects.     

Special issue introduction: Historical research on institutional change

Abstract

Both business historians and organisation studies scholars study institutional change to understand the interactions between business and society. However, research approaches differ fundamentally, with organisational research focusing on theory-driven explanations, whereas historical research is rather theory-informed. The consequence of such disciplinary orientation is that interdisciplinary conversations rarely occur. For this special issue, we invited submissions that address how historical research can contribute to our understanding of institutional change while demonstrating ‘dual integrity’ in terms of being significant pieces of historical research that provide us with new insights into historiography and at the same time addressing important theoretical concerns.     

Unpicking antecedents of CRM adoption: a two-stage model

Most CRM work focuses on consumer applications. This paper addresses the operational adoption issues facing the organisation deploying CRM practices. There are a plethora of challenges facing organisations when adopting CRM. Previous research is limited to either examining the CRM adoption process at an individual/employees level or an organisational level. Hence, in this paper the myriad of organisational, marketing and technical antecedents that seem to impinge upon employee perceptions and organisational implementation of CRM are structured in a two-stage model. Using a stratified sample of 10 organisations across 4 sectors, 7 hypotheses are tested on data collected from 301 practitioners. A two-stage model is analysed using structural equation modelling. Findings reveal that CRM implementation relates to employee perceptions of CRM. This paper deepens our understanding of organisational practices to adopt CRM, so as an organisation properly profits from the expected benefits of CRM.     

Open innovation practices in SMEs and large enterprises

Few studies on open innovation (OI) address OI practices in small and medium-sized enterprises (SMEs) and how their use of OI and the resulting benefits differ from those of large enterprises. The lack of resources in SMEs to engage in looking outward is said to be a barrier to OI, but at the same time this shortage is cited as a motive for looking beyond organisational boundaries for technological knowledge. We investigate how OI dimensions impact the innovative performance of SMEs in comparison to large companies. The key finding is that the effects of OI practices in SMEs often differ from those in large firms. SMEs are more effective in using different OI practices simultaneously when they introduce new products on the market, whereas this is less the case for large firms. Turnover from new products in SMEs is driven by intellectual property protection mechanisms, while large firms in this case benefit more from their search strategies.     

The Cultural Impact of Workflow Management Systems in the Financial Services Sector

The implementation of information systems is increasingly resulting in significant changes to the host organisation's culture. In particular, the workflow management system (WFMS) is one new technology that, because of its tendency to have a direct impact on the organisation and execution of work, has the potential to significantly modify an organisation's culture. This qualitative research investigates the nature of the relationship between WFMS and organisational culture, in the UK financial services sector. The research concludes that WFMS have the potential to modify culture in a positive way by improving the organisations' customer orientation, flexibility and quality focus.     

Supplier Selection Practices among Small Firms in the United States: Testing Three Models

One of the issues investigated in recent studies on small business enterprises involves the role of supply chain management. Supply chain management has become an important part of strategic planning in both large and small businesses in the 1990s as firms increasingly choose outsourcingas an externally-driven strategic growth path. This study examines the supplier selection practices among 78 small business executives in the midwest United States by testing three models: rational/normative, external control, and strategic choice. Although the results show support for all three models, the rational/normative model emerges as the most significant model for predicting the supplier selection practices of small firms.     

The Question of Ethical Hypocrisy in Human Resource Management in the U.K. and Irish Charity Sectors

Whilst there is a growing volume of literature exploring the ethical implications of organisational change for HRM and the ethical aspects of certain HRM activities, there have been few published U.K. studies of how HR managers actually behave when faced with ethical dilemmas in their work. This paper seeks to enhance the foundations of such knowledge through an examination of the influence of organisational values on the ethical behaviour of Human Resource Managers within a sample of charities in the U.K. and the Republic of Ireland. A qualitative research design is adopted utilising semi-structured interviews. Findings highlight ethical inconsistency in people management in the charity sector arising from the clear application of strong and explicit organisational values to external client groups but their limited influence on people management strategies and practices within the organisation. Many of the ethical issues faced by HRM professionals in both countries arise from this inconsistency. In their handling of ethical dilemmas, the HRM professionals exhibit a combination of a care ethic and a concern for justice but it is also clear that in situations of management intransigence, a desire to be conscience driven often gives way to a contingent approach. Whilst respondents considered it inappropriate for the HRM function to be the conscience of the organisation, it is seen to have a key role in providing management with advice on ethical action. However, the ability of HRM to influence ethical behaviour is highly dependent on the status of the function within the organisation.     

Contingency factors on the success of services for social integration and job placement schemes

The success of a strategy depends, to a large extent, on the contingency factors that condition the functioning of an organisation. This study presents empirical research to contrast the existence of a significant relationship between the implementation of a particular strategy (in this case, related to the management of job placement and social insertion schemes) and a set of given structural parameters or contingency factors, in particular, the organisational structure of the firm such as time with the firm, firm size, technology used and organisational culture. The empirical analysis is applied to the strategies used by local development and employment officers with regard to the management of job placement and social integration schemes.