Activity-based Costing (ABC) and the Life Insurance Industry

This paper describes the concept of activity-based costing (ABC) and examines its relevance to the life insurance industry. The paper contends that the high overheads and diversified product lines of many life insurance companies makes them appropriate environments within which to apply ABC. It is considered that ABC can provide at least three important benefits to a life insurance company, namely: more accurate cost information, closer insights into the costs of production and better information concerning the strategic consequences of business decisions. These attributes can help a life insurance company to achieve important business objectives, such as the management of expenses and the continuous improvement in the quality of its products and services. However; the transition to ABC is not easy and it cannot be seen as a panacea for all corporate woes. Nevertheless, the paper concludes that with sound project management, an ABC system can provide life insurance companies with much better information for activity management and the achievement of longer term strategic goals.     

Involving mind, body, and friends: Management that engenders creativity

Based on the careful observation and interviews of employees at three companies, and supplemented by cases from the popular business press, a discovery approach is used to derive four management principles that engender creativity and innovation in organizations: (1) manage organizations so that their knowledge base is more diverse than what would occur naturally; (2) encourage employees to embrace a collaborative and non-complacent attitude towards work and the organization; (3) make it possible for organization members to engage in the quick testing of ideas and solutions as they emerge; (4) reward employee and supervisor behaviors that support these principles and punish resistance to their implementation. The principles work in companies even if creativity and innovation are not stated organizational objectives, and do not require large investments or disruptions to work processes to yield valuable results.     

Sustaining Employee Owned Companies: Seven Recommendations

The employee owned company (EOC) might be the ideal blend of capitalism and communitarianism that vitalizes the global economy. EOCs – based on the concepts of employee participation and control – have sprung up in the United Kingdom, some parts of the European Union, the United States, Japan, and the former Eastern Bloc countries. Research has shown that they are able to compete effectively with more traditional companies. However, in addition to the pressures of business competition, EOCs face two other key problems as they strive to survive: (1) degeneration and (2) human nature and the abuse of power. After introducing the idea of the EOC and describing briefly these two key problems, this article presents seven recommendations for sustaining employee owned companies. These recommendations – grounded in sound organizational theory and the writings of experts in the field of employee ownership – are offered as hypotheses to be examined empirically by future researchers.     

员工健康与组织健康关系探讨

激烈的市场竞争环境要求企业关注组织健康,构建健康型组织。组织健康与员工健康互相依赖,没有员工健康就没有组织健康,员工健康是组织健康的基础。要有效促进员工健康,不仅需要被动反应式的EAP和压力管理,还需要进行前瞻性的全面健康管理,做到"防优于治,防治结合"。     

Employees’ perspectives on strategic human resource development before and after the global financial crisis: evidence from the Greek banking sector

Constantly changing business and economic environments have challenged organizations to re‐think the crucial role of their human resource development (HRD) policies and practices in relation to individual and organizational competitiveness, change and growth. Being proactive/strategic, in HRD terms, corresponds to the concept of strategic HRD maturity, a state evidenced by a specific set of strategic characteristics, but research into this concept within the challenging context of the economic crisis is limited, as is research into employees’ perceptions of it. Previous research has been applied mostly within ‘static’ business and economic environments, with much of the existing strategic HRD models neglecting employees’ perspectives. Semi‐structured interviews were conducted with 42 bank employees in Greece, with the aim of examining their perceptions of strategic HRD before and after the global financial crisis. The study raises important questions for both HRD academics and practitioners because its findings indicate a setback in the development of HRD. Whilst there were a few contradicting perceptions, the dominant employee view was that strategic HRD was a theoretical notion rather than an organizational reality.     

Diversity challenge: An integrated process to bridge the ‘implementation gap’

At this time of crisis, companies rediscover the key role people play in achieving a sustainable competitive advantage. Taking into account the heterogeneity of their workforces, boards of directors and managers alike face the challenge of understanding how to manage diversities such that the benefits outweigh the costs. This article argues that companies can deal with this challenge by adopting an integrated process of change across strategic, tactical, and operational levels. Indeed, people's differences and diversity management need to be introduced and integrated within company values and vision (strategic level). This vision has to be translated into strategies, a specific policy, and its associated practices to promote the development of synergic cultural and organizational changes that affect the whole company (tactical level). Finally, this policy and its associated practices need to be turned into real actions (operational level). Herein, we propose and discuss an integrated process to implement diversity management in a detailed and sufficiently flexible way such that it can be personalized and adapted to a specific organization. From a managerial standpoint, the proposed model could be a guide for bridging the ‘implementation gap’ of diversity management.     

An evaluation of The Ethics Program at General Dynamics

The Ethics Program at General Dynamics was evaluated relative to its stated objectives and its implied objectives. The program was found to have met its specific objectives which require employees to follow rules and standards of conduct. The program did not apparently meet its implied objectives which would have created a more humanistic work environment for employees. This result apparently stemmed from program planners' intentions to use the hope for better working conditions as a motivation for employees to follow company standards. A substantial conflict was found between the philosophical bases for ethics programs and work environment improvement programs.Dr. Barker recently joined the faculty of Marist College to teach courses in organizational behavior, human resources management, and business policy. He was previously an internal change agent, at middle management levels, for General Dynamics for thirteen years. During that period, he also taught courses part time for the University of Redlands in business ethics, management theory, organizational behavior, human resources management, strategic planning, and research design.     

Predictors and financial outcomes of corporate entrepreneurship: An exploratory study

Today, there is considerable scholarly and managerial interest in corporate entrepreneurship; that is, those activities that enhance a company's ability to innovate, take risk, and seize opportunities in its markets. Corporate entrepreneurship centers on creating new business by penetrating new markets, pursuing new business, or both.Despite the growing recognition and use of corporate entrepreneurship, little empirical research has been done on its antecedents and potential association with company financial performance. To fill this gap in the literature, this study proposes a model that identifies potential environmental, strategic, and organizational factors that may spur or stifle corporate entrepreneurship. The model also highlights the potential associations between corporate entrepreneurship and corporate financial performance.Building on the existing literature, the study advances five hypotheses that operationalize the model. The hypotheses are tested using data from 119 of the Fortune 500 industrial firms, covering the period 1986 to 1989. This exploratory study's results indicate that: (1) environmental dynamism, hostility, and heterogeneity (multiplicity and complexity of environmental components) intensify corporate entrepreneurship; (2) growth-oriented strategies are associated with increased corporate entrepreneurship, whereas a strategy of stability is not conducive to corporate entrepreneurship; (3) the scanning, formal communication, and integration components of formal organizational structure are positively related to corporate entrepreneurship—increased differentiation and extensive controls stifle corporate entrepreneurship; (4) clearly defined organizational values, whether relating to competitors or employees, are positively associated with corporate entrepreneurship; and (5) corporate entrepreneurship activities are associated with company financial performance and reduced systematic risk.     

The digitalization triumvirate: How incumbents survive

In an era of increasing technological transformation, the lines among industries, competitors, and companies are blurring as firms and platforms combine to create unique methods for engagement. Survival and growth in a rapidly changing marketplace require incumbent companies to divest themselves of legacy thinking and to embrace internal innovation that adds value for both channel members and customers. This entails understanding the mechanisms of process digitalization, communications digitalization, and buyer digitalization. It requires incumbent firms to build and innovate on strengths currently possessed in-house and to identify and cover resource gaps. Incumbents also must work to overcome organizational inertia and effectively implement an agile approach for digitalization across the company, channels, and customer triumvirate. In sum, incumbents must: (1) consider and embrace gains from the digitalization of process, communications, and buyer; (2) respect the core business while recognizing that elements of the existing business model must adapt to changing channels and customer expectations; and (3) recognize that digitalization comes in many forms with multiple applications.     

Strategy in motion: Using motion pictures to illustrate strategic management concepts

A company is more likely to enjoy excellent organizational performance if its employees understand the importance of strategic management and are actively engaged in helping the company pursue its strategies. Many employees view strategy as disconnected from their jobs, however, and getting them to embrace strategy can be challenging. Using a series of vivid examples, we describe how motion pictures can bring strategic management concepts to life for employees. By making strategic management concepts more relevant and less abstract, movies can lead employees to enjoy thinking about and discussing strategy.     

The Link Between Human Resource Management and Company Performance

ABSTRACT

There seems to be a widespread agreement that human resources are the main source of competitive advantage in modern companies. Consequently, the traditional personnel function is being transformed into the human resource management (HRM), which, in turn, is becoming a part of strategic management with the goal of integrating HRM activities to fit business needs. In this paper, we analyze the transformation of personnel function in Slovene companies, which had to change their behavior due to the transition from socialist to market economy and increased competitive pressures. Our analysis leads to the conclusion that Slovene companies use many different personnel models. Transformation of traditional personnel function into HRM occurred mostly in those companies, which place greater emphasis on people-related goals when formulating business strategy. However, the positive effects of this transformation on company performance still have to be confirmed.     

Risky business: Taking a stand on social issues

When company executives take a stand on social issues, the repercussions can be significant. Not only does the company run the risk of alienating employees, but taking a stand on a controversial issue can impact the company's image and ultimately consumer purchasing behaviors. However, research on corporate social responsibility generally supports the notion that when companies get involved in societal issues, it can positively influence bottom-line financial performance. This article evaluates the advantages and disadvantages of taking a corporate stand on sensitive social issues and suggests guidelines that leaders should consider to increase the probability of success. Specifically, we found that oftentimes it is not the stand a leader takes but rather how that leader takes that stand. Moreover, we encourage business leaders to consider the delicate balance between fiduciary responsibility and social activism, to use a strategic approach, and to understand the legal repercussions before taking a stand on a social issue.     

TMT strategic consensus in Mexican companies

Scholars show continuing interest in top management teams (TMT). This line of research emphasizes their importance for organizational success. This study reveals a clear challenge for researchers; to better understand the relationships between TMT characteristics and firm performance, researchers should consider the firm's environment. Results suggest that environmental complexity moderates the relationship between TMT strategic consensus and performance in Mexican companies. Interestingly, the results contradict initial expectations; lower levels of consensus correlate with higher performance in simple, more than in complex environments. Higher levels of consensus correlate with higher performance, in complex environments.     

Practical Skills in International Business: Training Needs for Workforce Competence by Minnesota Companies

Companies doing business internationally face the competitive challenges of a constantly changing operational environment. Employees need to update their international knowledge, skills, and abilities (KSA) frequently by attending training programs. A survey of Minnesota firms indicate that almost all companies are willing to cover the time and cost of employees attending such programs, apparently believing that workforce development benefits both day‐to‐day operations and improves employee morale. The current specialization in educational (K) and training (SA) programs by academic and nonacademic providers largely meets the needs of students and of corporate workforce development, but company competitiveness overseas could be enhanced if international K and SA providers cooperated more closely in complementary programming.     

Competitive intelligence and strategic group decisions: A new diagnostic tool

The use of competitive intelligence (information on competitors, technology, market developments, etc.) in strategic group decision making is of great interest to practitioners and strategy researchers alike, yet relatively little is known about the availability of competitive intelligence and the actual need for intelligence by decision makers. This article develops a decision-dependent input/participants matrix which is the basis for the derivation of seven intelligence availability and demand indices. The indices are diagnostic tools to help companies design and monitor strategic competitive intelligence gathering and distribution. They constitute part of an organizational intelligence support system designed to strengthen group decisions such as launching a new product. Practitioners can use the indices to diagnose problems countered by groups of decision makers in the intelligence gathering and distribution activities of organizations, and researchers can use them in the systematic study of this new field. An application of the tool to a pharmaceutical company is described.     

Challenging Confucius: Western banks in the Chinese credit card market

China has commanded a great deal of interest from virtually all U.S. business sectors. The Chinese credit card market is now particularly intriguing for Western banks. This article examines the strategic minefield that Western banks must navigate as they attempt to compete in the Chinese credit card industry. As an example, Bank of America (BOA)—fresh from purchasing a 9% interest in China Construction Bank (CCB) a few years ago—is now contemplating a joint venture with CCB. The new company will be tasked with leading the Chinese credit card market. Specifically, two questions are addressed: (1) whether the Chinese banking market is a sound option at this time; and (2) whether China affords an optimal environment for credit. The analysis yields several strategic lessons, and encourages caution on the part of Western bank executives as they enter the Chinese market. In particular, BOA officials must appreciate the timing of their joint venture's evolution. Additionally, BOA officials should strongly consider financial ventures other than credit, as Chinese culture should prove particularly resistant to serving as a profitable customer base in the short- and middle-timeframes.     

Organizational Virtue and Performance: An Empirical Study of Customers and Employees

This paper offers the first large-scale empirical study of organizational virtue as perceived by both internal and external stakeholders (employees and customers, respectively) and of the links between these virtues and organizational outcomes such as identification, satisfaction, and distinctiveness. It takes a strategic approach to virtue ethics, one that differs from a more traditional Aristotelian concept of virtue and from Alasdair MacIntyre’s manner of distinguishing between internal and external goods. The literature review compares three different perspectives on the empirical study of organizational virtues, taken by virtue theorists, POS scholars, and strategy scholars. The main study describes an empirical research undertaking that involved the analysis of 2548 usable questionnaires administered to employees and customers of seven organizations in the U.K. A structural equation model was used to test the linkages of the six dimensions of organizational virtue (empathy, warmth, integrity, conscientiousness, courage, and zeal) to satisfaction, identification, and distinctiveness. All the links were significant, with the strongest between virtue and identification. For employees, identification (with a firm) was driven most significantly by integrity, whereas customers’ identification was principally influenced by empathy. The empirical finding also sounds an alarm bell to the global firms who focus on creating a differentiated image based on CSR in the hope that it will lead to satisfaction. The results lead to a discussion of how companies might build favorable stakeholder perceptions of key dimensions of virtue that most shape their identification and differentiation in the marketplace.     

Managing Network Resource and Organizational Capabilities to Create Competitive Advantage for SMEs in a Volatile Environment

By considering embedded opportunities and threats in today's dynamic business environment, this study proposes that small‐ and medium‐sized enterprises (SMEs) can exploit the ties of interfirm networks to access external resources and information, thus enhancing their organizational agility and absorptive capacity in a variable business environment and enabling superior organizational performance. This study enables SMEs to combine the external resources embedded in strategic networks with internal organizational capabilities including organizational agility and absorptive capacity to create an idiosyncratic competitive advantage in a chaotic business environment.     

Employer branding and CSR communication in online recruitment advertising

While multiple studies have discussed the importance of corporate social responsibility (CSR) in recruiting, two important but unaddressed questions constrain the understanding and practice of presenting firms’ socially conscious efforts to their prospective employees. First, are companies engaged in CSR communicating their CSR practices effectively in online recruitment advertising? And second, what CSR information should companies include in online job advertisements to improve their employer attractiveness to prospective candidates? The findings of this study show that CSR communication in recruitment advertising is often limited, an ad-hoc practice, and mostly focused on company practices concerning employee participation and development. Even companies with a great CSR reputation take surprisingly little advantage of their CSR image when it comes to attracting job candidates. To improve employer attractiveness, we recommend that human resources managers consider (1) optimizing the structure of online job advertisements by including a company overview section in which CSR information can be presented easily, (2) expanding the scope of CSR dimensions in job advertisements to include environmental performance and community relations, (3) offering information about opportunities for employee engagement with CSR, and (4) adopting a strategic approach to the inclusion of CSR content in online job advertisements.     

Company support for employee volunteerism: Does size matter?

This article examines the relationship between company size and support for employee volunteering. Based on organizational ecology and organizational stages theory, the study hypothesizes that larger versus smaller companies demonstrate greater formalization and codification of their support for employee volunteering. Similarly, larger versus smaller companies use employee volunteering efforts more strategically; this finding is consistent with a need to justify decisions. These outcomes in turn impact the nature of volunteering and the organizations benefiting from such programs. Survey data from a size-stratified sample of 990 randomly selected Canadian businesses indicates that large companies support employee volunteerism in a more formalized and strategic manner than small companies. This behavior includes having formal policies and programs, as well as exercising greater influence over the causes which benefit from employee volunteering. Additionally, large companies are more likely to tie other forms of charitable support to employee volunteering. The article discusses how the more formalized approach of large companies may impact society.