Crisis leadership in economic recession: A three-barrier approach to offset external constraints

An economic recession is a type of crisis originated from external factors that may imperil an organization’s survival depending on the intensity and duration of the crisis. In peripheral European countries, such as Portugal, the recent financial crisis had devastating effects on various business activities. As a result, Portugal represents an important case study in examining how some corporate leaders have handled the economic recession successfully. I interviewed 20 corporate managers to capture their perceptions of the leadership traits and behaviors exhibited by their CEOs in guiding their companies through the recession. In economic recessions, negative constraints do not affect the most effective leaders, who instead erect barriers against the high-pressure conditions to create a supportive, positive work environment. In order to achieve maximum effectiveness, leaders must act as blocking agents against the negative social impacts of the economic crisis, including the fragility of trust in organizational life (i.e., a barrier against distrust), uncertainty of the future (i.e., a barrier against uncertainty), and toxic emotions (i.e., a barrier against toxic emotions).     

Service Competitiveness – An Anglo-US Study

This article reports on the latest in a series of international comparisons of management practices and performance outcomes of industries in various countries. Here, it is the service industries in the UK and the US which come under the microscope. Among the companies surveyed, there were more world-class performers in the US than the UK, but also more low performers. The concluding part of the article is diagnostic – the authors also suggest measures which could improve performance.     

Dependent Development: the Subcontracting Networks In the Tiger Economies

The ‘dependency development’ approach attributes the phenomenal economic growth of Hong Kong and Taiwan to their structural linkage with the advanced industrialised countries through trade. Foreign buyers and sourcing agents of the multinationals subcontract to the Hong Kong and Taiwanese manufacturers for low-cost and flexible production of labour-intensive consumer products. Such a dependency relationship is, however, successfully managed by the manufacturers in the two economies of the operation of a very similar subcontracting system in major industries. This paper examines the nature of the subcontracting system, the reasons for subcontracting, the operating dynamics, the sustaining mechanisms and the inherent structural problems of the subcontracting network. With the industrial restructuring process taking place in Hong Kong and Taiwan, there are changes to the subcontracting system which have significant implications for the welfare of the workers.     

Performance Measurement in Government Service Provision: The Case of Police Services in New South Wales

The NSW Government is implementing a financial framework which is designed to encourage government service providers to become more efficient and effective. NSW Treasury is using Data Envelopment Analysis (DEA) to measure the efficiency of major government service providers, such as police, courts and hospitals. This paper outlines the progress in implementing the new financial framework and illustrates the way NSW Treasury will use DEA to help improve the efficiency of government service providers by describing an analysis of the NSW Police Service. The results suggest that NSW police patrols (local police districts) could, on average, reduce input usage by 13.5 percent through better management, and by 6 percent if the patrols could be restructured to achieve the optimal scale. Results also indicate that differences in operating environments, such as location and socioeconomic factors, do not have a significant influence upon the efficiency of police patrols.     

A customised approach to determining the geomorphic effectiveness of small flood events in a regulated river

The construction of dams significantly alters flow and sediment regimes with subsequent deleterious effects on the morphological and ecological character of rivers. Effective experimental floods can ameliorate the downstream geomorphic impacts of dams. The traditional view is that large floods are required to perform effective geomorphic work, and the geomorphic outcomes of small floods are often overlooked. Many river restoration frameworks do not consider small floods. Yet, there is evidence that the hydrological characteristics that ameliorate specific geomorphic impacts in a river are unique to each river, and a customised approach to setting the right mix of floods (including small experimental floods) is needed. In this study, we modify an existing flood effectiveness model developed for large floods, for determining the geomorphic effectiveness of small floods in a highly regulated Australian river. Two flood classes were added to the model (medium peak stream power and moderate total energy expenditure), and the flood power characteristics were rescaled to reflect the relative difference in the magnitude of the small floods and the magnitude of the geomorphic work performed. Using a step‐wise approach, this customised model determined the geomorphic effectiveness of small floods. The best flood for ameliorating the geomorphic impacts of flow regulation had medium to long duration (10 to 51 days), high peak unit stream power (77 to 123 Wm^?2) and moderate to large total energy expenditure (78,600 to 342,320 × 10³ J). This approach to determining flood effectiveness for small floods is applicable to other geomorphically impacted river channels downstream of dams and can be used to inform experimental flood releases for geomorphic outcomes.     

Endogenous fluctuations in unionized economies with productive externalities

Summary. We discuss the effects of unions on steady-state multiplicity and welfare, and on the existence of endogenous fluctuations. We consider an OG economy with productive capital externalities and we focus on underemployment equilibria. We find that for wide regions in the parameter space, including an arbitrarily small degree of externalities and a Cobb-Douglas technology, unions increase steady state employment and welfare, and local indeterminacy (sunspots) emerges. Moreover with a CES technology multiplicity of steady states is only possible in the presence of unions. Our results also show that the role of unions in shaping local dynamics and bifurcations depends on technology (externalities and factors substitutability).Received: 16 January 2002, Revised: 18 March 2004, JEL Classification Numbers: E32, J51, D60, D62. Correspondence to: Leonor ModestoThis paper is a much revised version of our former working paper Unions, Increasing Returns and Endogenous Fluctuations. Financial support from Fundação para a Ciência e Tecnologia under the POCTI, is gratefuly acknowledged.     

Teams, Firms and the Evolution of Profit Seeking Behavior

Even as advances in information theory over the last quarter century have cast increasing doubt on the proposition that firms successfully maximize profits, the objective of profit maximization continues to be an axiomatic feature of the neoclassical theory of the firm. This paper attempts to improve our understanding firms by treating the objective function as an open question. Specifically, an ontogenetic thought experiment is undertaken to address the question of what differentiates production teams from firms by asking why team members would sell their control rights to a principal, thereby transforming the team into a firm. What results is an account of the emergence of the objective of profit seeking. Profit seeking emerges endogenously as a more fit alternative than the objective of value maximization, which is less capable of coping with uncertainty through purposive adaptation.     

Ontogenetic changes in pharyngeal morphology correlate with a diet shift from arthropods to dreissenid mussels in round gobies (Neogobius melanostomus)

The potential of predators to regulate populations of dreissenid mussels (Dreissena polymorpha and Dreissena rostriformis bugensis) has been addressed since early in the dreissenid invasion of North America. Round gobies (Neogobius melanostomus) larger than approximately 60 mm have been shown to prey extensively on dreissenids, whereas smaller round gobies feed mainly on aquatic insects and crustaceans. We propose that ontogenetic changes in pharyngeal morphology may contribute to this diet shift in round gobies. Pharyngeals of 69 round gobies ranging from 31 to 164 mm total length were investigated using light microscopy and scanning electron microscopy. Areas of lower pharyngeals and pharyngobranchial 2 increased allometrically with fish length. Pharyngeals of round gobies smaller than 50 mm contained narrow (< 0.1 mm diameter) papilliform teeth that are consistent with eating soft-bodied prey. By the time round gobies reached approximately 80 mm in length, pharyngeals contained larger diameter (0.3-0.5 mm) molariform teeth typical of those found in molluscivorous fish. Pharyngeal teeth of the largest round gobies also showed considerable wear. Although changes in pharyngeal morphology may contribute to the previously described diet shift in round gobies as they age, genetic and environmental factors both likely influence pharyngeal remodeling and therefore merit further investigation.