Showing papers in "Problems and perspectives in management in 2014"

Investigating the relationship between organizational culture and work engagement

Abstract: The aim of this study is to investigate the relationship between organizational culture and work engagement. Work engagement is shown to be powerfully linked to a range of business success outcomes. Although a large number of studies investigate the link between employees’ work engagement and organizational variables, there remains a dearth of scientific research on organizational culture and its impact on work engagement. A quantitative research design is undertaken in a South African ICT company. A total of 455 employees complete the South African Culture Instrument and the Utrecht Work Engagement Scale. Correlation analysis showes that all the dimensions of organizational culture correlate positively with work engagement dimensions. Regression analysis reveals that leadership, management processes and goals, and objectives make the strongest statistically unique contribution in predicting the dimensions of work engagement. As work engagement is shown to relate to several positive work outcomes, it makes sense for organizations to increase their employees’ levels of work engagement by addressing and improving organizational culture. The scientific understanding of the potential relationship between these constructs extends organizational culture and work engagement literature by empirically establishing an association between the two constructs.

The role of age and business size on small business performance in the South African small enterprise sector

Abstract: This study examines the effect that age and business size have on business performance. A structured research instrument was used to collect data from 500 SMEs in retail industry through interviewer administrated and selfadministrated survey and 93% of questionnaires were returned. The results show that there is no statistical significant difference between the means of business size and business performance. There is no significant difference between the age categories; under one year and 20 years and more and business performance. Age is no longer a significant factor in a company’s performance after twenty years. Life cycle approach of the company or industry could be an appropriate basis for analysis. Effective use of employees will increase business performance. It is important that employees are well trained to use the necessary technology and understand the importance of technology in the business.

Perceived benefits of balanced scorecard implementation: some preliminary evidence

Abstract: Since its introduction more than 20 years ago the Balanced Scorecard (BSC) has garnered the interest of both academics and practitioners. In the ‘official’ practitioner-oriented literature the BSC’s main proponents Kaplan and Norton have touted the concept’s potential performance enhancing effects. Academics have been more skeptical, and have not found a clear-cut relationship between the use of the BSC and organizational performance. It appears that some uses of the BSC may increase performance, while other types of BSC use might decrease it. Still, research has shown that the concept is widely used in practice, more than 20 years after its introduction. The longevity of the BSC indicates that organizations are satisfied with the concept and find at least aspects of it useful and beneficial. The extant literature, however, gives limited insight into the aspects of the BSC that managers appreciate. This leads to the following research question: What aspects of the BSC are perceived as beneficial by consultants and managers? Using data from qualitative interviews with BSC consultants and users, this paper explores the perceived benefits associated with the implementation of the BSC. The data show the perceived benefits are related to the concept’s fit with the local institutional context in Scandinavia, e.g. in terms of balancing shareholder and stakeholder demands. In addition, consultants and managers highlight social and behavioral changes as a result of BSC implementation.

Influence of e-HRM in decision making in selected tertiary institutions in South Africa

Abstract: Ukandu. N.E., Iwu. C.G., Allen-lle. C.O.K. (2014). “Influence of E-HRM in decision making in selected tertiary institutions in South Africa”. - The definitive, peer-reviewed and edited version of this article is published in Problems and Perspectives in Management, Volume 12, Issue 4, 2014

Measuring customer service in a private hospital

Abstract: This study measures service quality management in a private hospital in Gauteng, South Africa. This was done by determining the current standard of service quality management, identifying the gap between the value and the satisfaction of the service quality dimensions, as well as the influence of gender on the perception of service quality. Following a literature study the empirical research employed a tailormade 38-item questionnaire to collected data across seven sections, namely: premises/employees, doctors’ medical services, diagnostics, nursing medical services, admissions, meals and rooms. A satisfactory response rate of 71% was obtained. The analysis included the demographic profile, reliability of the data (Cronbach alpha coefficients), exploratory factor analysis and descriptive statistics. The existence of the difference between gender experiences was also determined. The results showed that although satisfactory levels of service exist (in excess of 60%), management needs to focus on the factors highlighted during the study, with proper maintenance and improvement of the appearance of the facility and providing training to personnel to promote patient relationships. Furthermore, the recommendations include inter alia that the model is useable in other health institutions to evaluate service quality levels and to highlight possible shortfalls. This would provide management with knowledge to address possible shortfalls and improve the level of service quality across the private health sector.

Factors influencing debt financing decisions of corporations – theoretical and empirical literature review

Abstract: Over the past half century, there has been an increasing interest on identifying the factors influencing debt financing within corporations. Based on available literature, both from developed and developing economies, this literature review paper examined the factors influencing debt financing decisions within corporations. Applying desktop research methodology, the paper used a three-thronged approach: theoretical, methodological and empirical. The theoretical approach reviewed the key theories proposed with respect to corporations’ debt financing decisions. The methodology approach helped in identifying the common applicable conceptual models and the empirical findings related to the factors affecting debt financing of corporations. The factors identified were both firm specific and macroeconomic factors, and the empirical findings showed either positive or negative relationship results.

Perceived problems associated with the implementation of the balanced scorecard: evidence from Scandinavia

Abstract: The balanced scorecard (BSC) is one of the most widely used and discussed management concepts in the world. Although many BSC success stories have been cited in the practitioner-oriented literature and in the business media, researchers have shown that the implementation of BSC can be a complicated process. There are many pitfalls and dysfunctional consequences associated with the implementation and use of the BSC. Still, little research is conducted on BSC implementation issues. This paper reports on a qualitative study of Scandinavian BSC users. Based on interview data, the paper identifies four main problem areas associated with the implementation of the BSC concept: conceptual, technical, social and political issues. These problematic issues are discussed with reference to the existing BSC literature, and more generally, the literature on the implementation of management concepts in organizations.

Characteristics of innovation and the diffusion of benchmarking

Abstract: The adoption and diffusion of benchmarking is relatively addressed in Western countries. However, there is scant evidence on how benchmarking is received by organizations in developing countries. Additionally, while the diffusion of innovation theory suggests the significance influence of characteristics of an innovation on its adoption and diffusion, no study has been reported to examine this theory in relation to benchmarking. Furthermore, almost all surveys on the adoption of benchmarking have considered benchmarking as a practice rather than a process.

Contributing to these gaps in the literature, this study provides evidence on the adoption of and diffusion of benchmarking in Sultanate of Oman (as a developing country) and examines the significance of impact of characteristics of innovation on the adoption and diffusion of benchmarking (both as a practice and a process).

Making a distinction between the adoption of benchmarking as a practice and a process, this study explains some of the variations in reported adoption rates for benchmarking in the literature.

A unique market offering by formal independent retail and wholesale small businesses in the Soweto Township, South Africa

Abstract: The rationale for this study is to determine how independent formal small retail and wholesale businesses compete against increasing competition mainly from large retail chains located in new shopping malls in Soweto. Soweto was one of the biggest segregated townships in South Africa during the apartheid era and in 2005 the City of Johannesburg focused on stimulating the economic activity of Soweto. The fundamental ways in which small and large businesses differ, influence the way they compete. According to literature businesses can compete within three competing disciplines, namely operational excellence, product leadership and customer intimacy. Each discipline consists out of a unique combination of elements known as price-related, product-related and customer service-related elements. This study investigates the sustainability of independent formal small retail and wholesale businesses in Soweto by identifying the unique market offering that they have to present to their customers to compete successfully in the market. The research was conducted by means of a questionnaire and personal interviews with a sample of 650 small businesses in Soweto. With this quantitative study, it was found that independent formal small retail and wholesale businesses that focused on product-related (product quality, product variety and best brands) elements in their market offering as the main competing discipline, tend to survive and grow.

Resistance to change in schools: perceptions of principals and teachers in a South African province

Abstract: Changes are taken place in the South African society, especially in education, to address the previous discriminatory practices in favor of a free and democratic dispensation. Literature shows that change always goes hand in hand with resistance to it. However, literature pertaining to the perceptions of principals and teachers about resistance to change in education is limited, hence the rationale for this research. The purpose of this article is to report on the differences and the extent of the differences between teachers’ and principals’ perceptions regarding resistance to change in impoverished schools of a South African province. A quantitative approach is followed. The d-values and t-tests indicate significant differences between the perceptions of principals and teachers about resistance to change in their respective schools. Teachers’ reactions to change in schools are generally overloaded with resisting forces while principals’ experiences of change are more optimistic with fewer resisting forces.

The influence of emotions on trust in ethical decision making

Abstract: This paper attempts to delineate the interaction between trust, emotion, and ethical decision making. The authors first propose that trust can either incite an individual toward ethical decisions or drag him or her away from ethical decisions, depending on different situations. The authors then postulate that the feeling of guilt is central in understanding how trust affects the ethical decision making process. Several propositions based on these assumptions are introduced and implications for practice discussed.

Research output level at Durban University of Technology (DUT) in South Africa: contributing factors and their implications

Abstract: Various factors contributing to the level of research output at the Durban of University of Technology (DUT) are investigated by this research and their implications to the University are also examined. Data are collected from six faculties at DUT. A stratified sample of 60 respondents is used, with the sample consisting of 30 experienced researchers and 30 emerging researchers, selected from the academic staff. Respondents are asked to complete a 5-point Likert scale questionnaire, with the help of an interviewer. Space is provided for each of the questions in the questionnaire, to allow respondents to provide additional, relevant information, which might left out during the formulation of the questionnaire. A mixed approach of both qualitative and quantitative techniques is used, while the analysis of primary data is done using SPSS, version 21.0. Results of the study reveal that the majority of respondents indicates various factors, including individual and institutional elements, as the main barrier to participate in doing research. This paper will benefit University management, academic staff, potential university academic staff, the university’s human resource department, other South African universities, the South African Department of Higher Education, the South African Council of High Education and South African education policy makers. The findings are limited by the study’s exploratory nature and only one university is considered. Generalization of this study should be done with care, while it is recommended that further research, with a large sample, should concentrate on the development of an academic workload allocation policy at the Universities and effective implementation of the policy encouraged.

Employee participation and productivity in a South African university. Implications for human resource management

Abstract: Employee participation refers to giving employees and their representatives opportunities to collaborate in matters that pertain to the management of the organization especially where employees are directly concerned. This research therefore examines employee participation within the context of a university of technology in South Africa. Universities of Technology (UoT) are a new phenomenon in South Africa. As part of the public university system, they are faced with a different set of challenges from the more comprehensive and traditional universities. UoT’s offer practice based learning in the areas of business, engineering and technology, thus suggesting that they have a role to play in closing the gap in skills in these areas. This study asked the question: to what extent are employees of the faculty in question integrated into matters that pertain to the management of the faculty? This main research question was designed to interact with the following sub-questions: Do you think employee participation improves productivity? Are there platforms for employee participation? Do you think management reasonably considers your input in the faculty? These questions have relevance judging from vast research that indicates a significant reluctance by management to accept employee participation as a necessary practice in organizations. Data was collected using the qualitative approach. The interviews were tape-recorded, while in some cases, notes were taken. The population for this study comprized 12 of the 30 senior lecturers in a faculty at a University of Technology in South Africa. The findings suggest that while there is a desire on the part of the academics to be incorporated into matters of concern to them and the faculty, there seemed to be an obvious neglect of the contributions that academic staff make in the faculty.

The influence of culture marketing communications : critical cultural factors influencing South African and German businesses

Abstract: The area of international communication possesses great potential for research. This study is undertaken in order to understand the influence of national culture on marketing communications between South African and German businesses. The study is undertaken as a cross-sectional quantitative survey combined with qualitative in-depth interviews to provide better understanding of the information obtained from the survey. The data was collected with the aid of a research questionnaire, which was emailed to the research sample. Collected data was analyzed using SPSS (Version 17.0) and descriptive analysis was carried out using tables and figures as well as the application of inferential statistics. The research sample was obtained from the Membership Directory 2010/2011 of the Southern AfricanGerman Chamber of Commerce and Industry with contact details of 500 companies located in South Africa and dealing with German businesses. Findings of the study revealed the following as critical cultural factors to marketing communication: language, value systems, religion, level of education, attitude towards time, as well as the marketing communication style and marketing messages. The study has revealed the emergence of new challenges for companies operating internationally. The national culture of each country is highlighted as an area of importance whose variables exert considerable influence on the communication process. In light of the research findings, recommendations for improving international communication between South African and German companies are provided.

Differentiating supply chain strategies: the case of light vehicle manufacturers in South Africa

Abstract: This article reports on an investigation of supply chain strategies that are employed by light vehicle manufacturers in South Africa. The research method used was an exploratory and descriptive study. A face-to-face, semi-structured interview questionnaire was administered to senior supply chain practitioners, based on purposive sampling and the data was analyzed descriptively using SPSS software. The findings of the study revealed that both lean and agile supply chain strategies are employed by the manufacturers. All the light vehicle manufacturers followed a lean strategy for their inbound supply chain. While a few of them followed a lean supply chain strategy for their outbound supply chain, others followed an agile supply chain which suggests a leagile supply chain strategy. Three important conclusions can be drawn from the study. Firstly, despite the changing business conditions and increased customer demands, lean supply chain strategy is still the dominant strategy for light vehicle manufacturers in South Africa. Secondly, a supply chain strategy is not all about product characteristics as a determining factor. There are other criteria that could be used to determine supply chain strategies. Finally, light vehicle manufacturers do not always make decisions and implement practices in line with their chosen supply chain strategies. Hence, there are mismatch between practices and strategies. It is recommended that the vehicle manufacturers align their practices with their chosen strategy, since mismatching generally leads to problems and challenges in organizations.

Factorial invariance of the South African Culture Instrument

Abstract: The purpose of the study is to confirm the validity of the South African Culture Questionnaire (SACI) and to assess the questionnaire’s degree of factorial invariance across race groups. The questionnaire has been used for a number of years for organizational culture assessments, but no factorial invariance has been tested. It is essential for the cultural applicability of the measuring instrument (e.g. whether the measurements represent identical constructs on identical scales) and equivalence to be determined. A quantitative research study was conducted in a South African information communications and technology (ICT) company. A total of 455 employees completed the SACI. Structural equation modelling was used to determine if there was any invariance between the various race groups. The results confirmed the validity and reliability of the SACI and the fact that no factorial invariance existes between the measured groups. The original eight-factor structure of the SACI fits the data well – as evidenced by the overall goodness-of-fit statistics. The reliability associated with organizational culture for both the pathways and dimensions is acceptable across the various groups, as indicated by the overall and race goodness-of-fit statistics. No significant differences are found in the factorial patterns for the SACI for the four race groups. The conclusion drawn is that the questionnaire can thus be used with confidence for organizational assessments across race groups.

The effects of culture as a start-up factor on business performance

Abstract: The study examines relationship between culture and business performance using 500 SMMEs in Gauteng province, South Africa. South Africa’s low ranking in terms of global competitiveness is a source of national concern. This means that South Africa has the smallest proportion of entrepreneurs compared with other developing countries. This is a problem in a country where entrepreneurial ventures account for one-third of total employment. There is a need to find out to what extent the entrepreneurial start-up factor (culture) affects the performance of a business. Questionnaire is used to collect data from 500 SMMEs owners. Probability sampling is used to ensure that each member of the SMME population was given a known non-zero chance of selection. Simple random sampling was utilized to identify the respondents. The findings from the survey are modelled through a categorical regression model with business performance as dependent variable. The level of significance of the sixteen variables out of twenty five variables suggests that culture is classified as the strongest predictor of business performance. These findings, depicting the magnitude of the business environment in the study area, clearly confirm the positive impact of culture on business performance.

Job satisfaction in the royal Swaziland police service. A case study of Manzini and Hhohho regions

Abstract: Submitted in fulfilment for the requirements of the Degree of Doctor of Technology: Public Management, Durban University of Technology, 2014.

A longitudinal study of employee satisfaction during the process of transformation in a water utility organization.

Abstract: Longitudinal studies are valuable to organizations faced with the process of transformation because they provide an opportunity to determine the impact of change interventions in an organization. Changes in employees’ behavior and attitudes can be observed over an extended period of time. The main purpose of this study is to conduct a longitudinal study of employee satisfaction during organizational transformation over a period of three years. The variable employee satisfaction is measured using the employee satisfaction survey (ESS). Descriptive and inferential statistics are conducted to analyze the data collected from the three convenient sample sizes of N = 1140 (Year 1), N = 920 (Year 2) and N = 759 (Year 3). The results of this study indicate that there are significant positive changes and differences between the three samples regarding the areas of employee dissatisfaction and satisfaction, resulting from the process of organizational transformation. Recommendations are made on how managers can use longitudinal studies to conduct employee satisfaction audits during organizational transformation, in order to determine, monitor and compare the observed changes. As a result, organizations will be able to leverage on their areas of strength and to initiate relevant interventions for their developmental areas.

The effect of the financial crisis on Czech municipal financialmanagement: can a future crisis be prevented?

Abstract: The economic crisis affected many areas of national economics and there have already been a number of analyses and studies on this subject. The public sector is no exception, although most of research interest has been directed towards the issues of the central government. But the municipal sector plays an important role, even though in terms of expenditures, it is in the shadow of the central government. This paper identifies how the financial management of municipalities developed in the periods before, during, and after the crisis. This paper identifies main impacts and changes of worldwide economic crisis on czech municipal financial management and is based on secondary research as well as on own empirical research. The paper shows consequent changes and the reaction of municipal sector on them.

Corporate social responsibility a toolkit for SMEs efficiency in Tshwane, South Africa.

Abstract: The code of governance presents some fundamental core philosophy that is of significant milestone providing opportunities in shaping the business landscape in South Africa. Tough penalty clauses for non-compliance are designed to create effective leadership through the establishment of many guidelines in terms of procedures, accounting, sustainability and environmental and social responsibility that successful businesses normally follow. With that in mind this paper aims to look at the challenges faced by business owners operating in small medium enterprises (SMEs) in their daily operations and also to establish whether they are creating a meaningful contribution to corporate social responsibility (CSR) in their business environment. The findings revealed that entrepreneurs in Gauteng operating as SMEs still have a long way to go in learning CSR. Reporting to internal and external stakeholders is still a nightmare if many SMEs on questioning indicated that they were concerned with the burdens of compliance and the cost of compliance. Finally it was observed that they were not much focussed on CSR. The study used a quantitative method approach and 200 structured questionnaires were administered purposely and respondents were randomly selected in the three Tshwane Township.

Local firms’ strategies and cluster coopetition in Tuscany: the case of “Toscana Promozione” Agency

Abstract: This study examines a new paradigm of coopetition strategy emerged in Tuscany, one of the most famous Italian area in the world for cultural and economic heritage. Nowadays, global success in business requires that firms implement both competitive and cooperative strategies (i.e. coopetition). This strategy, according to Ray Noorda (the founder of Novell – an American multinational software and services company headquartered in Provo, Utah), considers the advantages arising when both cooperation and competition coexist in the same domains. In the last twenty years, articles related to coopetition investigated several aspect of this strategy; in contrast, industry level coopetition has been investigated less than the other features (Rusko, 2011). Giving the literature review, there is a lack in knowledge regarding the benefits of coopetition fostered by local governments with foreign governments. This study presents a new approach of industry-level coopetition through the qualitative case study of the economic promotion agency in Tuscany, Toscana Promozione. The paper presents a new paradigm of coopetition strategy in where firms are in a coopetition relationship with foreign competitors (and governments) thanks to the support of local authorities. The main result of the research is that the boundary between institution and entrepreneur must be clear, government and local authorities must enforce competitiveness to improve the environment in which firms cooperate with the institution and compete each other with their own strategy. However during economic downturn periods, government and local authorities should, also, consider the possibility to become promoter, and supporter, of emerging entrepreneurship.

South African consumer ethnocentrism and attitudes towards foreign convenience products

Abstract: The evolution of country-of-origin research has led to the development of the consumer ethnocentrism concept. This study looks into the concept of consumer ethnocentrism (CE) and its relationship with product selection and investigates the relationships between consumer ethnocentrism and South African consumers’ attitudes towards foreign convenience products. The aim of the study is to determine the extent to which CE affects consumer behavior among South African consumers. Through the use of the CETSCALE questionnaire, an analysis of the levels of consumer ethnocentrism displayed by consumers of different demographic characteristics is conducted. A research model highlighting the antecedents to consumer ethnocentrism is developed and tested using an Analysis Of Variance (ANOVA) test. The study is in the form of a descriptive survey. 500 questionnaires are distributed, with 476 useable questionnaires being obtained. SPSS 21.0 is used to analyze the data. Non parametric tests are used as the data was not normally distributed using a Kolmogorov Smirnov test. The research hypotheses were tested using a nonparametric Chi square test. The Pearson chi-square test is used to test for the existence of variances within the responses provided by the respondents to individual question. The study reveals that only ethnicity has a significant relationship with CE. Ethnocentric tendencies are the strongest among Black South Africans. Theoretical and practical implications of the study are presented with the provision of suggestions regarding future research.

The impact of management concepts: A typology

Abstract: Over the course of the last decades numerous management concepts have risen and fallen in popularity. Research has shown that some management concepts are short-lived and have limited impact, while others spread widely and have an enduring and longer-lasting impact. What may explain these differences? This paper outlines a typology for assessing the impact of management concept in a given social context. It is argued that the impact of a management concept varies along two dimensions: the degree of institutionalization denotes the impact across time, while the degree of diffusion denotes impact across space.

Principals’ involvement in the career development of female teachers: a case study in South Africa

Abstract: Career planning is an important aspect of Human Resource Development and Management. This research is centered on the question as to whether school principals in South Africa fulfill their management role with respect to the career development of female teachers. The results indicate that principals rated their involvement in the career development of female educators relatively high, whereas female educators do not experience the principals to be supportive in terms of the identification of career weaknesses and strengths, the availability of career development programs and opportunities or support in terms of discussions and planning on career development. Principals nevertheless are of the opinion that adequate career development programs for female teachers are lacking at their schools and that they themselves do not adequately accommodate the fact that career paths for women differ from those of men. It is recommended that Departments of Education should place more emphasis on the professional development of school principals in order for them to be able to focus on the career development of female teachers at their schools. It should focus on all aspects of female educators’ career development.

Market reaction to business cooperation announcements – evidence from Germany

Abstract: Joint ventures and other cooperative activities have increased considerably over the last two decades. Yet, there is only limited evidence how investors react when such a business cooperation is announced, whereas there is ample evidence for merger and acquisition announcements. Hence, this paper examines share price response to public announcements of business cooperation in Germany. Unlike previous studies, the present work uses a comprehensive approach and includes a wide variety of business cooperation: strategic alliances, formation of joint ventures, project cooperation, public-private partnerships and value chain cooperation. Using an event study research design, we investigate a sample of 193 announcements of business cooperation issued in the period of 2008-2012 across all industries. We generate evidence that German companies experience significant abnormal returns of 0.61% on the day of announcement. Our results further indicate that stock market reactions are associated with managers providing information about the reasons for the business cooperation. We find that stock market reaction is more positive when a short-term motive for the cooperation is provided.

Proposing an activity-driven operational accounting framework at an agricultural chemical company

Abstract: An activity-based approach to operational management aims to address the shortcomings of traditional resource management methodologies and to provide enhanced management information. Since effective cost management is of critical importance, operational processes not adding value to the business must be identified. As such, activity-based operational management techniques provide an opportunity to strive towards cost-competitive excellence. By properly analyzing the business operations’ results, the non-value adding processes can be eliminated, allowing management to properly focus on those activities that will effectively contribute towards better decision-making and competitiveness. The main objective of this case study is to evaluate the feasibility of an activity-driven operational accounting framework within a South African agricultural chemical manufacturer and provides a comparison between its traditional cost accounting methodology and a proposed activity-based operational accounting framework. The results indicate that with the traditional costing method, not all operational costs are visible, and that the product costs are probably incorrectly allocated, and as such much of the operational costs are not properly recovered, which, in turn, will have an adverse effect on the company’s sustainability. The recommendation is therefore that the company should consider phasing in certain aspects of an activity-driven operational accounting framework.