STUDIES OF MANAGERIAL JOBS AND BEHAVIOUR: THE WAYS FORWARD

The main achievements and limitations of studies of managerial jobs and behaviour are summarized drawing upon the review articles of Martinko and Gardner (1985) and Hales (1986). Ways forward are explored by developing a map of the field for future studies, which is shown in figure 1. The figure has three aims: to show different areas for research; to help in identifying neglected areas that could be fruitful ways forward; and to show the interrelationship between different aspects of the study and thus to act as a guide for data collection. The main purpose of the article is to be a guide to what can, and what might most fruitfully, be studied, but some suggestions are also made about methods.     

Equities of scope as merger incentives under capital regulation: narrow versus synergy banking valuation

The call options theory of corporate security valuation is applied to narrow-banking contingent claims of one bank, while the cap options theory is applied to synergy-banking contingent claims of another bank. This article investigates efficiency gains specified as equities of scope associated with the likelihood of the two banks involved in merger under capital regulation. We find that merger incentives are encouraged when the narrowing banking is conducted by the consolidated bank, whereas discouraged when the synergy banking is conducted. Raising bank capital requirement leads to an increased interest margin of the consolidated bank with the narrow banking valuation; however, to a decreased margin of the consolidated bank with the synergy banking valuation. An increase in the capital regulation reduces the merger incentives in the narrow banking valuation whereas increases the merger disincentive in the synergy banking valuation. These findings are consistent with the organizational theory that predicts a comparative advantage of narrow banking proposals in bank mergers.     

Inter–Professional Working: The Wisdom of Integrated Working and The Disaster of Blurred Boundaries

This article explains the differences between 'integrated working' and 'blurring the boundaries'. Although often used interchangeably, these terms actually represent the best and worst possible outcomes involved when professional boundaries are crossed. The authors use a health–care example, but they tackle the issues raised as generic concerns for effective inter–professional working in all sectors. The article shows that, rather than blurring boundaries, the establishment of clear boundaries is essential for successful inter–professional working. Clearly defined boundaries establish an exploratory space in which team members can tap into and use team skills, thus harnessing the diversity of the team.     

The Economics of Teams among Technicians

This paper examines the economic logic of organizing field technicians into self‐managed teams, an approach to work organization that shifts the division of labour from a hierarchical to horizontal one. Economic efficiencies arise through the integration of direct and indirect labour tasks and the alignment of'the organizational structure with the occupational logic of communities of practice among technicians. Self‐managed teams absorb the monitoring and co‐ordination tasks of supervisors, substantially reducing indirect labour costs but without adversely affecting objective measures of quality and labour productivity. For technicians, team membership means longer work hours, but higher wages through overtime pay.     

How Might Companies Value ESOs?

There has been a steady growth in the use of employee equity compensation plans, and in the use of executive stock options (ESOs) in particular, along with a rise in shareholder and public perceptions that the values of compensation plans are not always fully disclosed. The IFSA of Australia recently called for separate reporting in financial statements of numbers and values of ESOs. Companies, when negotiating employment contracts, frequently agree to compensate an executive if a share option plan is subsequently not approved by shareholders. These facts suggest that reporting the value of an ESO plan is a useful and important exercise. We outline a model for the valuation of ESOs typically issued by Australian listed companies and illustrate the application of the model with a case study.