Regulatory incentives and financial reporting quality in public healthcare organisations

English National Health Service Foundation Trusts are subject to a regulatory regime in which the level of monitoring and intervention is determined by performance against two key performance metrics: a ‘financial risk rating’, based on a number of performance metrics, such as the reported surplus margin and return on assets, and a ‘prudential borrowing limit’. In this paper, we investigate the variation in financial reporting quality, proxied by discretionary accruals, with the incentives introduced by this regime. We find: first, that discretionary accruals are managed to report small surpluses; second, that, consistent with the avoidance of regulatory intervention in both the short and medium term, discretionary accruals are more positive when pre-managed performance is below intervention triggering thresholds and more negative when well above threshold; third, that, despite a move away from financial breakeven as the primary performance objective, there remains an aversion to small loss reporting. We further find that the level of discretionary accruals is driven by two metrics of strategic significance: the surplus margin (a measure of retained earnings) and the prudential borrowing limit (a measure of borrowing capacity).     

Book review

Leisure Counseling: Selected Lifestyle Processes. By Chester F. McDowell, Jr., Ph.D. Center for Leisure Studies, University of Oregon, 1976.     

Facing Adversity: Authentic Stories of Living and Working with Panic Attacks

This paper presents stories of adversity, as voiced by those that live and work with panic attacks. Respondents of this exploratory, phenomenological study, conducted in Sydney, Australia, shared their experiences of living and working with panic attacks. Two themes (and five sub-themes) of their reported lived experiences are presented here, including: A Changed Life (including sub-themes of: a seismic shift; a creeping change, and not knowing); and, Being Alone (with sub-themes of: withdrawing from the world; and professional non-support). Amidst their experiences of panic-related adversity, the 18 respondents reported trying to maintain—often without success—their working lives and selves. The often profound implications for employees working with panic are discussed, including the urgent need for further research.     

Flexible Working Practices In the Public,Not-For-Profit and Commercial Leisure Sectors In SCotland

Public sector leisure managers in the UK have been struggling, since the extension of compulsory competitive tendering to leisure management in 1989, to reconcile the conflicts between becoming more consumer led and satisfying the needs of the ‘recreationally deprived’. Rationalization has ensured that a fundamental priority for managers has been the introduction of more cost-effective working practices. This article examines the diversity in employment practices across the three sectors of the leisure industry, that is, the public, not-for-profit and private sectors. The case study evidence presented found clear differences between the sectors. Although managers in not-for-profit leisure facilities have more freedom to use greater flexibility in employment practices as compared with their public sector counterparts, they are still somewhat constrained by having to meet the social objectives set by their Board of Directors. Private sector managers were found to be providing the highest proportion of full-time jobs, although they offered lower conditions of employment. This was made possible by the funding certainties created by regular monthly/annual customer memberships.     

Safety-critical and securtiy-critical computing in britain: an exploration

This paper explores the development and assessment, in the UK, of computer systems which are critical to human safety (focusing promarily on railways, civil aviation, offshore oil and defence), and also of those critical to national security are identified, ranging from ad hoc and unsystematic pratices, through good software engineering to the use of formal, mathematical methods. We discuss whether the resultant systems are safe and secure, and highlight two key problems: how to demonstrate safety and security, in advance of use; and how to ensure safe human computer interaction.     

Success factors for collaborative product development: a study of suppliers of information and communication technology

It is apparent that more and more organizations are embarking on collaborative ventures to develop products. This is particularly evident in Information and Communication Technology (ICT) sectors, so much so that part of the 'received wisdom' of ICT companies is that collaboration is the preferred route for product development. The benefits of collaboration have been well documented and are linked to the complexity and costliness of product development and the need for inputs from wide and varied areas of expertise as well as shorter lead times for product development. But the risks and costs of collsborative product development have been less well defined. In this paper, it is argued that the alleged rewards of collaboration may not be experienced in practice and that collaboration can lengthen the product development process, add to the cost of product development and prove difficult to control. However, management practice can facilitate the effective outcome of collaborative product development and the critical factors affecting the likelihood of successful management practice are presented here.     

Communicating Ethical Values: A Study of Employee Perceptions

Communicating ethical values is a serious issue for a number of organizations. While ethical codes are useful, they cannot exist alone. Organizations must make certain codes reflect the ideals of individuals in the organization and the ethical expectations must be clearly communicated. This study examined the sources (people) and channels (ways messages were received) that affected how employees learned about ethics. Results showed that training and orientation programs were affirmed as sources of learning along with teaching others. Codes and handbooks were also identified as ways employees learned about ethics in their organization. Ethical issues were discussed more frequently with fellow employees than with supervisors suggesting that managers could be more proactive about discussing ethics with employees.