A MATHEMATICAL MODEL OF THE ADAPTIVE BEHAVIOUR OF ORGANIZATIONS

The recent work on organizational configuration and quantum structural change by Miller and Friesen (1984), and on the population ecology of organizations by Hannan and Freeman (1978, 1983) suggests some integral relationships between eiivironments, structure and optimal adaptive strategies. These appear to warrant a more systematic and formal analysis. Towards that end a mathematical model is developed to show the way organizations adapt t o changing environments. Using a Markovian representation, three types of environments are examined t o test the implications that the model has for adopting strategies of generalism vs. specialism, concerted ‘quantum’ 71,s. piecemeal change, and batching changes together vs. changing gradually and promptly.     

CEO compensation: does it pay to be green?

The relationship between chief executive officer (CEO) compensation and various organizational variables (i.e., size, length of tenure of the CEO, board composition and firm performance) has been explored in academic research. However, the relationship between CEO compensation and the firm's reputation based on the firm's commitment to the community and the environment has been relatively unexamined in the academic research. This study's purpose is to empirically examine this relationship using the Fortune Reputation Index as revised by Brown and Perry (1995) . Using a sample of 186 firms in 1990 and 188 firms in 1991, the relationships between CEO compensation and organization size, financial performance and environmental reputation are examined. The results of the study demonstrate that there is a strong relationship between CEO compensation and firm environmental reputation, firm size and firm financial performance. Copyright © 2001 John Wiley & Sons, Ltd. and ERP Environment     

FOCUS: Not-for-profit Health Services and the German Health Care System

Reforms in the German health care system in the attempt to bring more competition into health care have increased the sovereignty of the insured or patients, who have finally been allowed to make choices. "The start of a reorientation of the statutory health insurance system and hospital care are to be welcomed as first steps towards a supply of health services that reflects individual preferences." The authors can be contacted care of Prof. Dr. Oberender at Rechts- und Wirtschafswissenschaftliche Fakulät, Universität Bayreuth, 95440 Bayreuth, Germany, where Dr Oberender is Professor in the Faculty of Law and Economics, and Ansgar Hebborn is his Assistant. The authors wish to record their gratitude to Jan Hacker for translating this article.     

Getting closer to whales—passenger expectations and experiences, and the management of swim with dwarf minke whale interactions in the Great Barrier Reef

Whale-watching tourism is a growth industry worldwide. In Australia, with whale-watchers approaching one million per annum there has been considerable effort to develop management regimes that protect the whales while enabling the development of a sustainable ecotourism industry. A mixture of National and State laws and regulations have governed the industry (Tourism based on free-ranging marine wildlife: opportunities and responsibilities, Wildlife Tourism Research Report No. 11, Status Assessment of Wildlife Tourism in Australia Series, CRC for Sustainable Tourism, Gold Coast, Queensland) but these have been mainly derived from experiences with humpback (Megaptera novaeangliae) whale watching from vessels at sea. In this article we describe the development and nature of new and rapidly growing swim-with-whales operations based on the dwarf minke whales (Balaenoptera acutorostrata) in the Great Barrier Reef of northern Queensland. The distinctly different quality of these operations raise interesting questions for long-term management (Towards sustainable management of the developing dwarf minke whale tourism industry in northern Queensland, CRC Reef Research Technical Report 27, James Cook University of North Queensland, 30pp (emended version of SC/50/WW1)).In the 1999–2000 seasons, 453 passengers (88.1% of respondents) swam with minke whales. Only 25% of visitors came specifically for the whale interactions and 43% learned of the whales on board the vessel. Passengers thus had low expectations about whales and encounters. A variety of factors, including the diving experience, particular dive sites, a range of wildlife species and socializing contributed to visitor satisfaction. Nonetheless, there was a significant correlation between visitor satisfaction and closeness of approaches by the whales, total number of whales seen and total time spent with whales. We discuss the key issues associated with swim-with-whales programs in the light of our findings. The cooperative engagement of tourism operators, researchers and government management agencies is a feature of this new industry.     

Do Wages Rise or Fall Following Merger?*

This paper provides a systematic empirical analysis of the effects of merger and acquisition activity on profitability and firm‐level employee remuneration in the UK, using a specially constructed database for the period 1979–91. It finds that both profitability and wages rise following acquisition, and firms that merge within the same industry division experience larger increases in profitability and pay their workers higher wages than those engaged in unrelated acquisitions; i.e. in part, the result of an increase in the efficiency with which labour is used following related acquisition.