Coming through when it matters most

All teams would like to think they do their best work when the stakes are highest-when the company's future or their own rests on the outcome of their projects. But too often something else happens. In extensive studies of teams at professional service firms, Harvard Business School's Gardner has seen the same pattern emerge over and over: Teams become increasingly concerned with the risks of failure rather than the requirements of excellence. As a result, they revert to safe, standard approaches instead of delivering original solutions tailored to clients' needs. Gardner has a name for this phenomenon: the performance pressure paradox. Here's how it develops: As pressure mounts, team members start driving toward consensus in ways that shut out vital information. Without even realizing it, they give more weight to shared knowledge and dismiss specialized expertise, such as insights into the client's technologies, culture, and aspirations. The more generically inclined the team becomes, the more concerned the client grows, which turns up the pressure and pushes the team even further down the generic road. But forewarned is forearmed. By measuring each person's contribution deliberately, ruthlessly insisting that no one's contribution be marginalized, and framing new information within familiar contexts, teams can escape the performance pressure paradox and keep doing their best work when it matters most.     

How Do European SME Owner–Managers Make Sense of ‘Stakeholder Management’?: Insights from a Cross-National Study

The vast majority of empirical research on stakeholder management has traditionally focused on multinational corporations. Only in recent years, scholars have begun to pay attention to the stakeholder management concept in relation to small- and medium-sized enterprises (SMEs). The few existing studies in this area, however, discuss SMEs as a context free category or remain focused on single country analysis. This cross-national empirical research investigates SME owner?Cmanagers?? perceptions of stakeholder management in six European countries. The comparative analysis is followed by a discussion of how institutional, cultural and linguistic contexts can influence owner?Cmanagers?? sensemaking of stakeholder management. Our study questions the universality of specific management terms and proposes that more attention should be paid to the institutional, cultural and linguistic environments that shape economic activity in different parts of Europe.     

Sustainability of Small-Scale Ecotourism: The Case of Niue,South Pacific

This paper examines whether small-scale ecotourism is sustainable. For the purpose of the paper the term 'ecotourism' has been refined, and evaluation criteria compiled for small-scale community ecotourism comprising of three concepts: environmental sensitivity, socio-cultural appropriateness, and economic viability. The case study of Niue was chosen because it met the initial evaluation criteria, and was used to determine whether small-scale community ecotourism was sustainable. Niue's tourism industry was assessed in the areas of environmental, socio-cultural and economic viability and all three must exist in symbiosis to achieve sustainability. The results of the research show that Niue's tourism industry is sustainable only in environmental and socio-cultural aspects, however, due to insufficient visitor arrivals it is not economically viable. Niue is isolated, reliant on aid and is the most expensive destination in the South Pacific due primarily to the cost and frequency of the air service. Niue can increase its visitor numbers to achieve economic viability, or attract higher spending visitors to the island. Care must be taken not to exceed the island's carrying capacity, which would cause negative environmental and socio-cultural impacts. A balance needs to be made between the three concepts to achieve sustainability, with careful planning and monitoring.     

Governmental Incentives for Corporate Self Regulation

This article presents an overview of traditional legal and regulatory incentives directed at achieving lawful corporate behavior, together with examples of more recent governmental incentives aimed at encouraging self regulation activities by corporations. These incentives have been differentiated into positive incentives that benefit corporations for actions that encourage or assist lawful behavior, and punitive incentives that only punish corporations for violations of legal or regulatory standards. This analysis indicates that traditional legal and regulatory incentives for lawful corporate behavior are overwhelmingly punitive in their intended effects, while more recent governmental incentives to encourage voluntary corporate self regulation are much more positive in their intended effects.A prototype private compliance system containing typical features specified in governmental incentives for corporate self regulation was then analyzed applying the same positive/punitive analysis that was performed with the governmental incentives. This analysis suggests that corporate compliance programs that are structured to comply with Department of Defense regulations for defense contractors or the new Federal Organizational Sentencing Guidelines will reflect the same overwhelmingly punitive balance of incentives for lawful and ethical employee conduct as do the traditional legal and regulatory incentive systems for lawful corporate behavior.Finally, the question of whether governmental incentives for corporate self regulation are succeeding was investigated by examining the behavior of the Fortune 1000 companies in enacting or revising corporate codes of conduct, an essential feature of every governmental-encouraged system for corporate self regulation, during the period 1960 to 1994. This data indicates a dramatic growth in the enactment of voluntary corporate codes of conduct by the Fortune 1000 companies in the period 1985–1994 that broadly parallels the growth in positive governmental incentives for such programs. In addition, several dramatic increases in code enactment and revision activity that occurred, coincide with specific governmental incentives for private compliance programs offered during that period.     

Mediating Hierarchical Labor Conflicts: Procedural Justice Makes a Difference—for Subordinates

Investigating mediations of hierarchical labor conflicts, this study focuses on the influence of hierarchical position on perceptions of procedural justice, mediation effectiveness and its moderating effect on this relationship. Since the influence of hierarchical position is omnipresent in organizational life, it is most likely that also parties’ perceptions and appreciation of the mediation will be affected. To test our hypotheses, we use data from real mediation cases dealing with hierarchical labor conflicts in the Netherlands. In line with our hypotheses, results indicate that supervisors—compared with subordinates—perceive more procedural justice and perceive the mediation as more effective. The most striking result however, is that especially subordinates’ perceptions of mediation effectiveness are determined by perceptions of procedural justice: especially when confronted with low levels of procedural justice, their perceptions of mediation effectiveness are negatively affected. This is not true for supervisors. Implications for mediation theory and practice are discussed.     

How Can SMEs in a Cluster Respond to Global Demands for Corporate Responsibility?

This article argues why and how a participatory approach to implement corporate social responsibility (CSR) in a cluster would be beneficial for small- and medium-sized enterprises (SMEs) who are members of the NCE – Subsea cluster in Bergen, Norway. The political and strategic reasons as well as internal motivation for SMEs to incorporate CSR into their business strategies are discussed with support from relevant literature. Furthermore, we offer a discussion on the characteristics of different approaches to incorporating CSR as part of business strategy and provide examples from the Norwegian context. As part of this discussion, we look into some of the clusters in Europe which have adopted a systematic approach to implement CSR as part of their agenda. We propose a means to undertake CSR as part of the cluster through a network model to address the limitations faced by the SMEs when they try to implement CSR individually. A network model (cluster approach) to CSR will motivate the uptake of CSR among SMEs when the network (cluster) is characterized by close geographical proximity and operates in the same sector. The uptake of CSR as part of the network (cluster) agenda can also lead to innovation through cooperation and competition. The particular challenges faced by the SMEs in implementing and sustaining CSR can be also minimized by being part of a network (cluster).     

DECENTRALIZATION, INCENTIVES, AND VALUE CREATION: THE CASE OF JLG INDUSTRIES

From 1993 through 1998, JLG Industries, a manufacturer of aerial work platforms, achieved dramatic improvements in operating efficiency and created substantial value for shareholders. One dollar invested in JLG stock at the end of 1992 would have been worth $15.82 at the end of 1998, whereas one dollar invested in a portfolio of industry peers would have grown to only $1.48 over the same period. Most of the value created by JLG can be traced to three factors: a highly successful product development program that generated substantial revenue; large cost savings resulting from improvements in operations; and a dramatic reduction in inventories. The authors attribute JLG's success to a strategic initiative that focused attention on key value drivers, decentralized decision-making, and strengthened incentives for employees throughout the organization.
In the early 1980s JLG adopted several knowledge-based management techniques, including TQM and just-in time inventory, but at that time the company's decision-making was more centralized and employee incentives did not correspond to strategic goals. After the departure of its founder in 1993, JLG decentralized decision-making, strengthened employees' incentives, and achieved enormous success. Evidence from the JLG case supports the argument that the benefits of TQM and related management techniques are most likely to be achieved when companies have organizational structures and incentives that encourage the most effective use of those techniques. It also is consistent with recent data compiled by Industry Week that shows a direct relation between employee empowerment and corporate performance.     

Professional Ethics – a Managerial Opportunity in Emerging Organizations

Professional Ethics, viewed as a managerial challenge and opportunity in this study, deals with the often overlooked conceptions, actions and behavior of individuals who see themselves both as members of a profession and as members of an organization. Managers have to deal with this dual loyalty and inherent potential for conflict. This is of particular importance for new types of organizations when wanting to develop and sustain an ethical platform for the ultimate goal – assuring that future business decisions of individuals are in "ethical balance" with the organization's own values and goals.     

Simulation of strategies for long-term international development

Until the technology needed to surmount global physical limits is discovered and widely used, raising standards of living in much of the third world is a luxury. Three ways of creating the wealth required to support such a massive technological and investment programme are reviewed: letting present trends continue, going for increased regional autonomy, or greatly increasing prices of third world primary exports. A simple model with five sectors and three regions is used; it confirms aspects of The Limits to Growth models, and raises further qualms concerning social and political constraints.