Full papers
Full Papers
Earnings Management and Tone Management: Evidence from FTSE 350 companies (224)
Author/s: Salah Kayed Ahmad Kayed Jessica Hong Yang Dan Zhou
Track: Performance Management
Paper Type: Full Papers
Keywords: Earnings management, earnings conference call, earnings benchmarks, self-serving theory, tone management
Abstract: The use of tone management in various medium of communication strategies has recently been the subject of a vast interest in accounting literature. The aim of this paper is to study the self-serving behaviour in financial reporting and disclosure, especially the association between earnings management and tone management in earnings conference call. We use a sample of non-financial FTSE 350 firms during the period from 2010 to 2015. We find that firms that just beat the earnings benchmark and likely have more earnings management provide more abnormal tone during earnings conference call. This means that firms that use earnings management have incentives to manipulate in their narrative disclosure through tone of words, to obfuscate users about the earnings management techniques used in their reporting in order to achieve the earnings benchmark. This result suggests that both earnings management and tone management practices complete each other, where they can be used together by managers as a self-serving behaviour. We also find that managers are greatly more optimistic in their word than other audience, who attend the earnings conference call. Overall, we believe that this study is fundamental in the accounting context, where it evaluates the communication strategies used from managers to achieve the earnings target.
What has Performance Management Scholarship Told Us? (300)
Author/s: Jane Maley Marina Dabic Miriam Moeller Ivan Novic
Track: Performance Management
Paper Type: Full Papers
Keywords: Performance appraisal, performance management, acceptability, abolish
Abstract: The purpose of this study is to analyze the progress of performance management (PM) research published in leading management and psychology journals between 1997-2017. Using a bibliometrics approach crafts a rigorous and focused review of the ensuing PM literature (1997-2017). The findings reveal that PM studies are yielding helpful information and that the extant PM literature has addressed some of the critical questions raised by earlier researchers. However, there remain many areas for improvement with several significant research gaps still existing. We observe a scarcity of empirical studies, in particular, qualitative studies. In addition to offering a comprehensive analysis of the literature on one of the important areas of human resource management, this paper highlights the discord between PM scholars and practitioners in resolving the continuing problems related to PM. While PM scholars are still immersed with the many technical problems associated with PM, they do not appear to be answering the call for a rejection and abandonment of the PM altogether. Clearly there is a much-needed call for more collaboration between these parties.
Does the Impact of CEO Duality on Corporate Entrepreneurship in Privatized Vietnamese Firms represent a Strategic Agility Orientation? No, but potentially Yes! (315)
Author/s: Hong, T.M. Bui Huong. T.M. Nguyen Vinh Sum Chau
Track: Performance Management
Paper Type: Full Papers
Keywords: Strategic agility, privatization, CEO duality, corporate entrepreneurship
Abstract: This study examines if the impact of CEO duality (a chief executive operating chair of board and leader of a firm) of newly privatized Vietnamese firms on the level of corporate entrepreneurship represents a position of strategic agility is achieved, and concludes dissentingly. Data from a survey of 114 CEOs of board and top management team members in privatized firms in Vietnam were collected and examined through a combination of agency theory and stewardship theory. The research finds that independence between the chair and CEO does not necessarily lead to a higher degree of entrepreneurial activity in privatized firms. The results have policy implications for shaping corporate governance, and management implications for firms striving to be competitive, in ways that advance corporate entrepreneurship in economies such as Vietnam that are both emerging and pursuing privatization.
How High Performing Are Indian organizations In Comparison With Asian Organizations? (405)
Author/s: Neetu Yadav Andre De Waal
Track: Performance Management
Paper Type: Full Papers
Keywords: HPO framework, performance measurement and management, Indian organizations, high performance
Abstract: The continuing quest of Indian companies to become leading corporations in the region and the world leads to two research questions, How high performing are Indian organizations currently, compared to organizations in other Asian countries, and What do Indian organizations need to focus on to become truly world-class. In this article, we investigate the answers on these two questions using the HPO Framework a scientifically holistic improvement framework, developed on data collected worldwide, that evaluates whether organizations are high performing and if not, what they need to focus on to achieve the HPO status. The study also carries out a comparison of HPO scores of Indian organisations with HPO scores of companies operating in various Asian countries. The findings reveal that the average HPO score of Indian organizations is 7.3 is among the highest of Asia. At the same time, the research results indicated that Indian organizations need to specifically work on strengthening the characteristics of HPO factor Long Term Orientation in order to become full blown and sustainable world class leading high performance organizations.
Contextual Barriers for Convergence to Performance Management Best Practices: Evidence from Pakistan (439)
Author/s: Syed Imran Saqib Matthew Allen
Track: Performance Management
Paper Type: Full Papers
Keywords: Performance management, convergence, divergence, Pakistan, HRM
Abstract: This research examines the convergence divergence debate through the lens of performance management systems (PMS). Responding to calls for more contextual research on the Asia-pacific region and more specifically to South Asia, this study examines how PMS in Pakistani banks, despite seemingly being consistent with Western best practices, diverge significantly in terms of how they actually manifest. The study employs a qualitative research design with interviews from 65 employees and HR managers of five banks. Findings reveal that despite employing modern tools such as the forced ranking and 360 degree evaluation systems, there is a huge gap between intended and implemented PM policies. This can largely be explained by the social and cultural context of Pakistan as well as the unique legacy of nationalization of Pakistani banks. The paper makes a contribution to the convergence divergence literature by making a strong case for the prevalence of macro convergence in terms of best practices being adopted but micro divergence in terms of how they are actually implemented.
A Product Service System Approach in the UK Agricultural Sector Issues, Directions and implications (607)
Author/s: Kamal Qazi Andrew Serotsky Muhammad Amjad
Track: Performance Management
Paper Type: Full Papers
Keywords: Product Service Systems, PSS, Servitization, Agriculture, Competitiveness
Abstract: Uncertain economic and political factors are forcing businesses to rethink their competitive advantage. Such is the case for the UK agricultural sector, it is not immune from such challenges. This paper investigates how Product Service System (PSS) can make a difference to the sector. There is a sparse amount of PSS research in the UK agricultural sector, issues of performance in the sector is reviewed, benefits highlighted on how PSS can bring a sustainable competitive advantage to the sector. The advancement of customer satisfaction and monitoring the progression/performance with Life Cycle Analysis (LCA) and The Balanced Scorecard is suggested.
Supply Chain Management Strategies for Increasing Productivity and Satisfying Customer Demand in the Fast Fashion Retail Sector in the UK (632)
Author/s: Habib Karimi Luisa Delfa Huaccho Huatuco
Track: Performance Management
Paper Type: Full Papers
Keywords: fast fashion retail sector, supply chain, productivity, customer satisfaction
Abstract: This research study aims to identify the different supply chain strategies within the fast fashion retail sector in the UK to improve the productivity and the customer satisfaction level. For this purpose, in depth analysis has been conducted in accordance with the relationship of supply chain with productivity and customer satisfaction levels and impact of supply chain strategies has been evaluated with regards to fast fashion retail sector. The research methodology adopted for this research is quantitative analysis of a survey questionnaire among customers of fast fashion, supported by secondary data from fast fashion retail companies websites and practitioners publications. The data analysis and discussion show the supply chain strategies that enhance the productivity and customer satisfaction levels within the retail fashion sector. These include being agile to provide weekly new designs and trends.
Searching For Pattern in FTSE250 Companies Financials (856)
Author/s: Ya-Ping Yin George Katechos
Track: Performance Management
Paper Type: Full Papers
Keywords: financial accounts, financialisation, factor analysis, business models
Abstract:
Mediating Effect of Innovative Work Behavior in Relationship between High Performance Work System and Sustainable Organizations Performance: Evidence from Service Sector of Pakistan (859)
Author/s: Khaliq Ur Rehman Iqra Hafeez Naveed Ahmad Faraz Qamar uddin Maitlo
Track: Performance Management
Paper Type: Full Papers
Keywords: High Performance Work Systems, Employee Engagement, Employee Well-being, Innovative Work Behavior, Sustainable Organizational Performance
Abstract: Main objective of this research was to investigate the Impact of High Performance Work Systems on Sustainable Organizational Performance. While investigating the impact research has also taken Innovative work behavior as mediator because in current situation of global competition organizations cannot survive without being innovative. To bring innovation or to motivate employees to show innovative behavior at work place their active engagement is required, to actively engage the employees organizations need to give them a sense of well-being. So this research has also taken employee engagement and employee well-being as mediator in relationship between high performance work system and innovative work behavior. This study has collected data from 820 employees working is service providing SMEs in Pakistan. SMEs have been chosen because it is contributing more than 35% towards GDP of Pakistan. Service providing SMEs has selected because they need to be more innovative and productive to sustain in the global competitive environment. Manufacturing organizations can survive by cutting their cost or by offering new products into the market but service providers has only way for their survival and though which they can sustain is to be innovative. Structure Equation Modeling was run through Smart PLS and in the light of results all the hypothesis were accepted. One of the hypotheses was partially accepted dues to some statistical values. Results of this research clearly indicates that organizations that implement high performance work system can sustain their organizational performance because high performance work system give a sense of well-being to employees and in result employees gets more engaged with their work and shows positive and innovative work behavior which ultimately leads the organizations towards sustainable performance. This research contributes to the literature of management science by discussing the phenomenon of sustainable performance from the lens innovation and high performance work system.
The Self-Fulfilling Prophecy of Implementing a Quality Management System: A Study of Two Government Organisations in a Post-Socialist European Country (1018)
Author/s: Modestas Gelbuda RIta Kazlauskaite Zilvinas Zidonis Egl Verseckaite
Track: Performance Management
Paper Type: Full Papers
Keywords: Quality management systems, ISO 9000, modernization of management, public sector, post socialist economies, self-fulfilling prophecy
Abstract: Research on implementation of quality management systems in the public sector in the West has received significant attention, while in post socialist Europe, the FSU republics and CEE countries, it remains very modest. Particularly, this research stream lacks inductive process oriented qualitative studies covering the process from idea to implement management system to assessing its impact on major organizational outcomes. This paper reports findings of two ongoing qualitative case studies carried out at two Government organisations in a post socialist country. Based on interviews with key decision makers and participants, this study presents a stylized process stage based model of ISO 9000 implementation and develops a set of propositions. The key finding is that ISO 9000 implementation was characterised by top management ignorance and skepticism of employees, which led very limited or virtually no impact on key organizational outcomes. The most often cited benefit associated with ISO 9000 system was the development of a better understanding of how their organization works. The paper argues that the best way to explain the marginal impact of quality system implementation on performance and organizational level outcomes is to invoke the self fulfilling prophecy logic, according to which the disbelief in systematic formal management inherited from the Soviet past leads to limited commitment by all actors, focus on formalist outcomes, and no clear performance improvement targets. Thus, initial assumptions and predispositions of key decision makers and employees enacted reality, which to a high extent consistent with their original views. The article concludes by highlighting future research directions and outlining several important managerial implications and recommendations on how to break out of the deeply rooted iron cage and believes inherited from the socialist past and transmitted through socialization, power and language.
Incorporation of Environmental, Social and Governance (ESG) Factors by Investment Professionals for Measuring Performance of Investee Companies (1070)
Author/s: Md Ashiqul Amin Khan Jonathan Liu Isaiah Oino
Track: Performance Management
Paper Type: Full Papers
Keywords: ESG Factors, Institutional Investors, Performance Measurement, Sustainability, Investment Professionals
Abstract: Measuring performance of companies is one of the key responsibilities of investment professionals. Traditionally, investment professionals used to rely upon information available in financial reports of investee companies. The notion of sustainable and responsible investing has become a dominant force which has encouraged companies to take environmental, social, and governance (ESG) factors into consideration in order to ensure that their respective business models are sustainable. Large corporations now tend to report ESG data alongside financial reports. Investment professionals, especially financial analysts working for institutional investors, state that they consider ESG criteria in their investment decision-making process. However, little is known about the process which allows them to consider ESG information revealed by investee companies in the absence of a globally accepted ESG reporting standard. This paper aims to comprehend how available ESG information is being incorporated into the process of investment decision-making and its implications on performance management. A wide range of existing literature has been analysed to determine the current methods which financial analysts rely on for incorporating ESG information in their decision-making process. It has been showed in this paper that there is a need for conducting further research on how investment professionals utilise ESG information.