Abstract
Purpose The purpose of this paper is to show how the changing interrelationships between fleet management, human resources and outsourcer capacity areas are likely to counterbalance managerial policies, thereby generating a performance decay. The use of system dynamics modelling in a waste collection company offered an effective contribution to support decision makers to overcoming myopic decisions. Design/methodology/approach Literature review and a case study analysis (including interviews with company actors and data gathering) offered the basis to build a system dynamics model. The model built was then used to run simulations sessions to assess alternative investments decisions. Findings Simulation results show that understanding cause-and-effect relationships between company sub-systems can help managers to shift the focus of their decision process from a single department to the whole business system. Further, the paper offers three alternative scenarios (myopic, reactive and proactive) from which to learn how to design effective long-term sustainable policies. Research limitations/implications The simulation model was developed based on a literature review and a single-case study. Although it offers a useful contribution in the investigated case, to generalise its results, additional application to waste collection companies would be desirable. Practical implications The findings of the study have implications for public decision makers and those scholars investigating how to discourage the adoption of myopic decisions in complex environments. Originality/value To the best of our knowledge, only few studies investigated how the fleet management is likely to impact on the performance of waste collection companies. This study offers a contribution in this direction.
Highlights
The Occupational Pension Schemes (Scheme Administration) Regulations 1996 (“the Administration Regulations”) require the Trustees to prepare an annual statement regarding governance, which should be included in the annual report
The Corporate Trustee are responsible for investment governance, this includes the Corporate Trustee reviewing the default arrangement remains in the best interests of the members
When the Scheme was originally established the Corporate Trustee took professional advice and selected a pension scheme where the With-Profits Fund was the only available investment fund option available to members. This was originally with Friends Life, who were acquired by Aviva Life & Pensions UK Limited (Aviva) in 2015, all policies, assets and liabilities of Friends Life were transferred and completed by 1 October 2017
Summary
The Occupational Pension Schemes (Scheme Administration) Regulations 1996 (“the Administration Regulations”) require the Trustees to prepare an annual statement regarding governance, which should be included in the annual report. When the Scheme was originally established the Corporate Trustee took professional advice and selected a pension scheme where the With-Profits Fund was the only available investment fund option available to members. The Corporate Trustee monitors the level of charges borne by members through the Conventional With-Profits Fund. When assessing the charges and transaction costs which are payable by members, the Corporate Trustee is required to consider the extent to which the investment options and the benefits offered by the Scheme represent good Value for Members. - The Conventional With-Profits Fund differs from a unit linked policy in that it is not totally reliant on the current value of the underlying assets This type of fund offers an underlying guarantee that provides a cushion against falling investment markets in certain circumstances. The Corporate Trustee will be reviewing the membership profile as part of the Scheme Review to ensure that this fund continues to be suitable for the membership
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