Showing papers in "California Management Review in 1983"
TL;DR: In this article, the authors argue that a volunteeristic approach to questions of corporate governance which focuses on effective director behavior is preferable to structural change via legislation, and show how the concept of stakeholders in an organization can be used to understand the tasks of the board of directors.
Abstract: The purpose of this article is to show how the concept of stakeholders in an organization can be used to understand the tasks of the board of directors. The authors argue that a volunteeristic approach to questions of corporate governance which focuses on effective director behavior is preferable to structural change via legislation.
2,102 citations
TL;DR: In this paper, an analysis of 119 corporation conduct codes suggests that top executives of American corporations only weakly shared the concern for social responsibility so often voiced by business leaders in the mid 1970s, when most of the codes were written.
Abstract: An analysis of 119 corporation conduct codes suggests that top executives of American corporations only weakly shared the concern for social responsibility so often voiced by business leaders in the mid-1970s, when most of the codes were written. The documents give more attention to unethical conduct likely to decrease a firm's profits than to similar conduct that might increase profits. Familiarity with changing societal values is evident, but the executives that authored the codes tended to consider themselves, not the society or even apart of it, to be the conscience of the corporation. The codes have neither relieved organizational pressures to be unethical nor convinced opinion leaders that corporations have become more socially responsible in recent years.
305 citations
TL;DR: In this paper, the structural conditions conducive to spin-offs and the environments from which they are most likely to arise are examined, as well as the conditions in which they arise.
Abstract: Spin-offs—new firms created by individuals breaking off from existing ones to create competing companies of their own—are common in many high-technology industries and others as well. This articles examines the structural conditions conducive to spin-offs and the environments from which they are most likely to arise.
258 citations
TL;DR: The benefits of JIT purchasing, to both buyer and supplier, include lower material costs, higher productivity, and improved quality as discussed by the authors, and the strategic advantages of long-term, stable buyer-supplier relationships, avoidance of annual rebidding; sole-source contracts; improved containerization; and localized buying.
Abstract: Traditional U.S. purchasing is under assault. Japanese purchasing practices, featuring frequent "just-in-time" deliveries in small quantities, have made inroads among Japanese subsidiaries in the United States and more recently in the U.S. auto industry. Just-in-time (JIT) buying tends to be accompanied by a host of structural changes: long-term, stable buyer-supplier relationships; avoidance of annual rebidding; sole-source contracts; improved containerization; and localized buying, to name just a few. The benefits of JIT purchasing, to both buyer and supplier, include lower material costs, higher productivity, and improved quality. The strategic advantages—growth of market share and stable relationships—can be significant. Geographical vastness is one of several obstacles in the way of widespread use of JIT buying practices in the United States. The companies that have pioneered in the development of JIT purchasing in this country have demonstrated that most of the obstacles are not insurmountable.
151 citations
TL;DR: The authors reviewed a number of examples of industry self-regulation, presented a simple classification scheme to evaluate the social desirability of the practices that result, and concluded that mixed systems combining industry standard setting with government oversight may be the most desirable policy option.
Abstract: What has been our experience with industry self-regulation — the setting of standards, the policing of deceptive practices, and the grading of products by industry groups in the absence of federal or state regulation? What are its implications for effective public policy? The author reviews a number of examples of industry self-regulation, presents a simple classification scheme to help evaluate the social desirability of the practices that result, and concludes by suggesting that mixed systems combining industry standard setting with government oversight may be the most desirable policy option.
80 citations
TL;DR: For a strategic information scanning system to provide useful strategic information at a low cost when it is needed, it should focus on target information needs, allocate effort among those exposed to relevant information, and have an effective system for storing, processing, and disseminating information.
Abstract: For a strategic information scanning system to provide useful strategic information at a low cost when it is needed, it should focus on target information needs, allocate effort among those exposed to relevant information, and have an effective system for storing, processing, and disseminating information.
80 citations
TL;DR: In this paper, the authors present background information on the Hispanic community and outline a framework for analyzing and cultivating this market segment, based on which they present a consumer market of numerous segments and particular needs.
Abstract: Hispanics make up a consumer market of numerous segments and particular needs, yet they have been ignored by most large companies What is the nature and scope of this market? The authors present background information on the Hispanic community and outline a framework for analyzing and cultivating this market segment
74 citations
TL;DR: In this paper, the authors examine the management dimensions of the public affairs field and discuss the responsibilities and alternatives to senior general managers in shaping public affairs function, and present a survey of the role of senior managers in public affairs.
Abstract: Corporate public affairs is a relatively young staff function. As such, its management is a challenge to both staff specialists and the general managers who oversee its role within the organization. This article examines the management dimensions of the public affairs field and discusses the responsibilities and alternatives to senior general managers in shaping the public affairs function.
63 citations
TL;DR: In this article, the authors present several reasons why qualify circles can lead to increases in the morale, motivation, productivity, and work quality of workers and suggest that the conventional wisdom, which sees them as either a form of job enrichment or a human relations technique, is ill-focused.
Abstract: In what represents a reversal in the flow of knowledge between the two countries, managers in U.S. organizations have begun to study and imitate the practices of their Japanese counterparts. The quality circles programs that exist in many Japanese organizations are being widely adopted in U.S. organizations. However, the high expectations and lack of planned evaluation for the quality circle programs in many U.S. organizations suggests that quality circles are already in the adoption-disappointment-discontinuation cycle that has been characteristic of many other managerial fads. The authors present several reasons why qualify circles can lead to increases in the morale, motivation, productivity, and work quality of workers and suggest that the conventional wisdom, which sees them as either a form of job enrichment or a human relations technique, is ill-focused. The types of organizational settings in which quality circles are most likely to be effective are discussed and suggestions are made regarding the proper evaluation of quality circle programs.
61 citations
TL;DR: The authors examines the evolution and the effects of politically oriented shareholder activism, focusing on the years since 1977, and also assesses how it has been affected by changes in business-government relations.
Abstract: This Spring marks the fourteenth consecutive year that public interest resolutions have appeared on the proxy statements of American corporations. The author of Lobbying the Corporation examines the evolution and the effects of politically oriented shareholder activism, focusing on the years since 1977, and also assesses how it has been affected by changes in business-government relations.
40 citations
TL;DR: In this paper, the authors argue that no significant gains in corporate social performance are to be expected during the Reagan era, and that voluntary private initiatives cannot match social needs, so they propose to form social partnerships or coalitions of business, government, labor unions, universities, and various community groups.
Abstract: No significant gains in corporate social performance are to be expected during the Reagan era. Mandated social performance standards have been relaxed, and voluntary private initiatives cannot match social needs. One way to move beyond present levels of corporate social responsiveness is to form social partnerships or coalitions of business, government, labor unions, universities, and various community groups. These coalitions might be able to address social needs that are beyond the economic and technological reach of corporations acting alone.
TL;DR: The attractiveness of the Theory Z organization is not due to any inherent improvement it offers in organizational effectiveness as discussed by the authors, but because top management will be attracted to the theory Z concept because it increases their control while giving the impression of lessening it.
Abstract: The attractiveness of the Theory Z organization is not due to any inherent improvement it offers in organizational effectiveness. Top management will be attracted to the Theory Z concept because it increases their control while giving the impression of lessening it.
TL;DR: The reputation of business in Hong Kong includes alleged exploitation of labor and a lack of social responsiveness, which may be due to the nature of its trade unions, its laissez-faire government, and traditional management practices as mentioned in this paper.
Abstract: The reputation of business in Hong Kong includes alleged exploitation of labor and a lack of social responsiveness, which may be due to the nature of its trade unions, its laissez-faire government, and traditional management practices. A recent study identifies attitudes concerning social responsibility that prevail in Hong Kong corporations.
TL;DR: The Topeka Pet Food Plant has been one of the most highly publicized examples of organizational innovation in recent times as mentioned in this paper, however, some of the publicity associated with it has been highly misleading.
Abstract: The Topeka Pet Food Plant has been one of the most highly publicized examples of organizational innovation in recent times. However, some of the publicity associated with it has been highly misleading. The authors offer a careful reexamination of the development and operation of the plant, outline the role that publicity has played in its history, and discuss the use of case studies in general.
TL;DR: In this paper, the authors analyze the reasons given by 126 survey respondents of the Fortune 500 for not recruiting more female directors and discuss the perceptions of female boardmembers about their own futures on their boards.
Abstract: Over the past decade, the ranks of female directors in Fortune 500 companies have increased by only 2.3 percent Recent studies show a relationship between the number of female directors and a variety of corporate characteristics, such as size, type of industry, and length of a boardmember's term. The author analyzes the reasons given by 126 survey respondents of the Fortune 500 for not recruiting more female directors and discusses the perceptions of female boardmembers about their own futures on their boards.
TL;DR: In this paper, foreign businesspeople have experienced difficulty in selling to or investing in the Japanese market and often they explain their frustration in terms of Japan's allegedly closed economy, which they describe as a "closed" economy.
Abstract: Foreign businesspeople have experienced difficulty in selling to or investing in the Japanese market. Often, they explain their frustration in terms of Japan's allegedly “closed” economy. This arti...
TL;DR: A major concern in the U.S. today is our low level of productivity increase as mentioned in this paper, and if people are to become more effective, organizations and their management must undergo a number of changes.
Abstract: A major concern in the U.S. today is our low level of productivity increase. If people are to become more effective, organizations and their management must undergo a number of changes.
TL;DR: The new management thinkers bring both fresh insights and a revival message to American managers, which together herald a timely challenge to American academia as mentioned in this paper. But they are not experts in the field of finance.
Abstract: The new management thinkers bring both fresh insights and a revival message to American managers, which together herald a timely challenge to American academia.
TL;DR: In this article, the authors argue that there is no need for a new "industrial policy" under which the federal government attempts to influence industrial structure by some combination of "picking the winners" and "protecting the losers".
Abstract: Evidence from the 1970s does not support the view that the United States is "deindustrializing. "Nor is there evidence that, in periods of normal (nonrecession) economic conditions, American labor and capital cannot successfully make the gradual but inevitable transition from older to newer industries and occupations. There is no need for a new "industrial policy" under which the federal government attempts to influence industrial structure by some combination of "picking the winners" and "protecting the losers. "Industrial policy is not the secret of Japanese industrial success. And in the American political and governmental structure, such a policy would almost surely do much more harm than good.
TL;DR: In this article, a matrix framework is proposed to identify the various distinct growth possibilities latent in each of the above opportunity classes and proposes an extended product-market growth matrix incorporating external opportunity factors such as user focus, use focus, market growth rate, and a wide range of internal strategy response options as subdimensions.
Abstract: Market penetration, market development, and product development constitute the major intensive growth opportunities open to a firm. The author describes a matrix framework designed to help identify the various distinct growth possibilities latent in each of the above opportunity classes and proposes an extended product-market growth matrix incorporating external opportunity factors such as user focus, use focus, market growth rate, and a wide range of internal strategy response options as subdimensions.
TL;DR: While shareholders own the corporation, they cannot be said to run it as mentioned in this paper, and this misplaced confidence becomes significant as the political activities and rights of a corporation grow, which is the meaning of "shareholder democracy".
Abstract: While shareholders own the corporation, they cannot be said to run it. Champions of shareholder participatory rights cling to the idea that shareholder democracy limits the power of managers. Managers, for their part, uphold the democratic process as the basis of their power, dismissing claims that power has become unhinged from ownership. Public confidence that a democratic system functions in corporations—that managers, who exercise substantial power over our lives, are responsive to a governance process—may be misplaced, and this misplaced confidence becomes significant as the political activities and rights of a corporation grow. What, then, is the meaning of "shareholder democracy"?
TL;DR: A survey of the Fortune 500 revealed that corporations find insurance an attractive method of compensating for various market imperfections as discussed by the authors, and that the purchase of property/liability insurance by a large, widely held corporation may be, from the view of a diversified equity holder, redundant at best and considering the high transaction costs involved, potentially wasteful.
Abstract: The purchase of property/liability insurance by a large, widely held corporation may be, from the view of a diversified equity holder, redundant at best, and considering the high transaction costs involved, potentially wasteful. Yet responses from a survey of the Fortune 500 reveal that corporations find insurance an attractive method of compensating for various market imperfections.
TL;DR: In government-guided country international strategic market planning (CISMP), the central government tries to intervene in a few key markets to help domestic, privately owned or government-owned businesses establish or improve positions in new international markets.
Abstract: In government-guided country international strategic market planning (CISMP), the central government tries to intervene in a few key markets to help domestic, privately owned or government-owned businesses establish or improve positions in new international markets. Administrative coordination through CISMP may be more efficient than classical and neoclassical economic models—but CISMP may also reduce freedom and increase social control over economic activity.
TL;DR: In this article, the authors point out that while dramatic wage and other concessions were made during the 1982 collective bargaining round, wage freezes were the most common type of concession, but absolute cuts were made in some wage levels, cuts and freezes touched only a small proportion of the contracts negotiated, and concession contracts themselves preserved the principles of multi-year duration and cost-of-living escalation.
Abstract: Arguments that 1982 marked a turning point in union wage determination are overstated. While dramatic wage and other concessions were made during the 1982 collective-bargaining round — wage freezes were the most common type of concession, but absolute cuts were made in some wage levels — cuts and freezes touched only a small proportion of the contracts negotiated, and concession contracts themselves preserved the principles ofmultiyear duration and cost-of-living escalation. Some of the income security arrangements conceded by management in exchange for wage cuts or freezes will endure, and gain sharing could become a significant factor in wage determination if it is continued and becomes more widespread.
TL;DR: In this article, the authors discuss the best system for governing a large state corporation and what it means to be "owned" by the state. But they do not consider the role of the board and top management of a state corporation.
Abstract: Every large organization must have a system of control, a process for selecting management and holding it accountable. Executives of nationalized firms are answerable to only one shareholder — the state. The government in office selects the board and top management and can replace them at any time. Is this the best system for governing the large state corporation? What does it mean to be "owned" by the state?
TL;DR: In this article, the chief executive of a nationalized company succeeds, as does any business executive, by pleasing the owners of the company. But when the owners are a nation9s citizenry and its elected officials, success and failure are not defined in terms of profit and loss.
Abstract: The chief executive of a nationalized company succeeds, as does any business executive, by pleasing the owners of the company. But when the owners are a nation9s citizenry and its elected officials, success and failure are not defined in terms of profit and loss. What counts is the company9s political performance, and in the judging of political performance, there is no bottom line.
TL;DR: This article propose a conceptual framework for the analysis of businesssociety linkages, using the concept of exchange to differentiate types of business-society interactions, which allows for the delineation of the wide range of business and society relationships and the ordering of much of the voluminous literature in the business andsociety field, which has been developed from a variety of disciplinary perspectives, including economics, law, sociology, and political science.
Abstract: The authors propose a conceptual framework for the analysis of businesssociety linkages, using the concept of exchange to differentiate types of business-society interactions. The notion of exchange allows for the delineation of the wide range of business-society relationships and the ordering of much of the voluminous literature in the business and society field, which has been developed from a variety of disciplinary perspectives, including economics, law, sociology, and political science. While this multiplicity of perspectives has been useful to the development of the field, each discipline is, individually, insufficient to serve as a broad conceptual framework for understanding the business-scoiety relationship.
TL;DR: A study of almost eleven thousand hourly employees in thirty-seven firms found that workers are especially critical of the way they are treated by organizations as discussed by the authors. But despite complaints about inequities, inadequate opportunities and lack of communication, workers overwhelmingly regarded their work as a source of personal satisfaction and pride.
Abstract: A new study of almost eleven thousand hourly employees in thirty-seven firms finds that workers are especially critical of the way they are treated by organizations. But despite complaints about inequities, inadequate opportunities, and lack of communication, workers overwhelmingly regarded their work as a source of personal satisfaction and pride.
TL;DR: In this article, the authors analyzed the effects of the recent developments in Iran, namely, the Iranian Revolution and the Iran-Iraq War, on the activities of multinational corporations (MNCs) in the Arab oil-producing countries of Saudi Arabia, Kuwait, and the United Arab Emirates.
Abstract: This article analyzes the effects of the recent developments in Iran—namely, the Iranian Revolution and the Iran-Iraq War—on the activities of multinational corporations (MNCs) in the Arab oil-producing countries of Saudi Arabia, Kuwait, and the United Arab Emirates. The level of sales, contracts, and investments by MNCs reflect the perceived spill-over effect of revolution and war and therefore the perceived increase in the risk of losses due to political instability.
TL;DR: In this article, a model of work-role design can help determine which facets of work are critical in the prediction of premature turnover as well as suggest how these facets change during an employee's career.
Abstract: Focusing on the turnover intentions of present employees may help curb unwanted turnover. A model of work-role design can help determine which facets of work are critical in the prediction of premature turnover as well as suggest how these facets change during an employee's career.