Company's Management Team Research Articles

From Fabric Consumption to Warehouse Optimization Unravelling the Strategic Journey of Gul Ahmed

This case study explores the challenges faced by Gul Ahmed, a leading textile company, in managing its raw material and finished goods inventory. The company encountered issues related to excess fabric consumption, resulting in surplus inventory and limited warehouse space. Additionally, the rejection of garments during the manufacturing process added to the inventory dilemma. The company's management team, realizing the need for a sustainable solution, convened a meeting to discuss potential strategies to address the storage and inventory management issues. This case study highlights the critical importance of efficient inventory management, space utilization, and the need for proactive planning to mitigate future threats. The findings emphasize the significance of analysing and optimizing raw material consumption and devising strategies for utilizing excess inventory, ensuring long-term profitability and sustainability for the company.

Founder and Descendant vs. Professional CEO: Does CEO Overconfidence Affect Tax Avoidance in the Indonesia Case?

This study aims to test whether the founder or descendants of CEOs have differences from professional CEOs in influencing the relationship between CEO overconfidence and tax avoidance. Overconfident CEOs have strong incentives to avoid taxes. However, the role of the founder or descendant CEOs is expected to mitigate the relationship between the CEO’s overconfidence and tax avoidance. This study used a sample of non-financial companies listed on the Indonesia Stock Exchange in 2012–2019 and tested random effect panel data. The results of this study show that CEO-led companies that are overconfident are more driven to tax avoidance. Meanwhile, the relationship between CEO overconfidence and tax avoidance is not influenced by the presence of a descendant, founder, or professional CEO. Indonesia as one of the countries that adheres to a two tier governance system, the founder or descendant CEO is not the only significant actor in the company but based on the upper echelon theory that role of the entire company management team that influences the company’s policy strategy. This study provides implications for developing the literature regarding the relationship between CEO overconfidence and tax avoidance. However, the relationship between CEO overconfidence and tax avoidance is not influenced by the presence of the founder, descendant, or professional CEO. Likewise, this research is useful for investors, creditors, and regulators in paying attention to the characteristics of the CEO in making decisions.

Integrated Reporting and Firm Performance in Malaysia: Moderating Effects of Board Gender Diversity and Family Firms

Recently, COVID-19 pandemic crisis attacks business activities globally and it has brought significant impact on the world economy. As the pandemic continues, many companies have increased their corporate report disclosures so that stakeholders can have a comprehensive view on how the companies create value as well as impacts faced beyond the companies. It is expected that integrated reporting is able to provide relevant information to stakeholders. Integrated reporting produces financial and non-financial information into a single report which is much better than the traditional corporate reporting. Content analysis using published annual reports will be applied on Malaysian public listed companies to examine the relationship between integrated reporting and firm performance. This study proposes that firm performance of companies can be improved with the adoption of integrated reporting disclosures. Furthermore, the moderating effects of board gender diversity and family firms could also impact on the integrated reporting disclosures as well as firm performance. This study also provides a clear picture on the level of integrated reporting practices on Malaysian public listed companies. Therefore, integrated reporting is a precious approach to aid the company management team to enhance company’s information disclosure. Regulatory bodies could also use the result of this study to plan effective policy to promote integrated reporting.

Better Alignment of Financial Interest in Private Equity

The carried interest received by private equity fund managers, or general partners (GPs), generates some controversies. The three most debated claims are that carried interest (1) aligns financial incentives, (2) should be treated as a capital gain for tax purposes, and (3) should not be reported as a fee charged to investors. The existence of two key principal agent relationships within the private equity model might lie at the root of these controversies. One relationship links the GP as the principal with the portfolio company management team as the agent. In this first contract, the three claims hold true. The other relationship links the fund investors, or limited partners (LPs) as the principal with the GP as the agent. This article shows that modifying that second contract (carried interest) by introducing a first-loss feature and reducing the catch-up rate makes the two contracts equivalent. Hence, the benefits of the limited partnership structure can coexist in a setting where the three claims about carried interest hold true. However, currently, these three claims are at odds with how the carried interest is computed. TOPICS:Private equity, legal/regulatory/public policy, equity portfolio management, portfolio management/multi-asset allocation, real assets/alternative investments/private equity, fundamental equity analysis Key Findings • The private equity model aligns the interest of management with that of fund managers. • The private equity model does not have the same alignment between fund managers and fund investors. • It is possible to change the fund manager—investor contract to be like the management—fund manager contract and thus achieve incentive alignment between fund managers and investors.

Temporal and Spatial Analysis of the Occupational Noise at Rice Mill in Kedah

Noise or unwanted sound, is considered as occupational pollution, especially one that is loud or unpleasant or that causes disturbance to human and surroundings. Occupational noise is a noise emitted from various industries that effect the workers’ safety and health. A prolonged exposure towards noise can bring negative effects to the receptor, resulting in noise induce hearing loss (NIHL) diseases. The state of Kedah is known as the rice bowl of Malaysia, producing more than half of the country’s home grown rice supply. Majority of the rice mill is situated in Kedah where the major occupational hazard for the workers is noise during the operation of various machines to convert paddy to rice. The aim of this study is to assess the noise risk assessment in the rice mill. The noise level was measured during working hours of 0900hrs – 1800hrs for three consecutive days using sound level meter. The evaluated daily noise level Leq , did not exceeded the limit enacted by the Occupational Safety and Health (Noise Exposure) Regulation, 2019 but there were occasions the reading surpassed the limit, ranging from 86.5 dBA to 90.3 dBA. Measurement of noise exposure at 1-meter distance for machineries located in the rice mill was also conducted and the most critical location in the rice mill is the Rice Huller machine.. Noise sources from the machinery shows strong negative correlation with noise level (r = -0.97, p<0.05) (Air Blower), (r = -0.94, p<0.05) (Rice sieving), (r = -0.98, p<0.05) (Air Pump), (r = -0.95, p<0.05) (Rice Huller) and (r = -0.95, p<0.05) (Rice Polisher), correspondingly. The findings from this study is important for the company management team as abatement measures for the employees in providing a more conducive working environment and indirectly increases the productivity of the company.

Bank management expertise and asset securitization policies

Abstract We explore how the expertise of a bank holding company's management team affects its asset securitization policies. We find management team members with an MBA degree and top management experience securitize more low risk loans while those with core functional executive positions securitize fewer high risk loans. In addition, internal liquidity, governance quality, and risk management quality moderate these effects. Moreover, risk management concerns are the main driver of the negative effect of the percentage of core functional executives on asset securitization. We also provide evidence that core functional executives deem securitized mortgage loans riskier after the subprime crisis.

Modifying The Carried Interest To Do What It Is Said To Do

The carried interest received by private equity fund managers (General Partners; GPs) generates some controversies. The three most debated claims are that carried interest i) aligns incentives, ii) should be treated as a capital gain for tax purposes, and iii) should not be reported as a fee charged to investors. The existence of two key principal-agent relationships within the private equity model might be at the root of these controversies. One relationship links the GP as principal and portfolio company management team as agent. In this first contract, the three claims hold true. The other relationship links fund investors (Limited Partners; LPs) as principal with the GP as agent. I show that modifying that second contract by introducing a first-loss feature and reducing significantly the catch-up rate makes the two contracts equivalent. Hence, the benefits of the limited partnership structure can co-exist in a setting where the three claims about carried interest hold true.

Organic Delights: Examining the Challenges of Corporate Social Responsibility

Organic Delights is an experiential exercise designed to help undergraduate business students learn about corporate social responsibility (CSR). In this exercise, students assume the role of a senior manager of a fictional restaurant and caterer. The challenge for the managers is to evaluate and choose among six proposals to promote the company’s CSR. Students are first requested to evaluate the proposals on their own and then, later, to evaluate the proposals by working with a group of students who represent the company management team. The exercise enables students better understand the concept of CSR and reflect on the meaning and obligations of socially responsible business leadership. The exercise and recommendations for the debriefing are provided.

Zen room enhances the workplace for NobelTek’s women employees

Purpose – Aims to describe the key role of human resource management (HRM) in providing a better workplace environment to women employees at NobelTek, India, thereby stemming attrition and increasing employee satisfaction. Design/methodology/approach – Describes how a few simple changes made by HR managers to the workplace layout and design can make a tremendous difference to the life of women, especially expectant mothers. Draws on interviews with the company management team and the author’s observations. Findings – Shows that, quite often, poorly designed workplaces mean that women cannot deliver to their full potential. HRM can play a key role in improving this. Practical implications – Reveals how HRM’s interventions led to employees continuing to contribute to software-development projects and managing their own health and well-being simultaneously. This means that the talent and experience of women employees remain available to the company. Social implications – Research shows that many women withdraw from the formal economy, either temporarily or permanently, when they become mothers, or are about to become mothers. HRM can play a crucial role in ensuring that women stay in employment longer and continue to contribute to the economy during their pregnancy. This not only benefits the company but also the economy and society as a whole. Originality/value – Considers the context of expectant mothers working in the software industry. Provides insights into how the challenges faced by expectant mothers can be reduced and overcome by well-designed and implemented HRM practices.

Policy-term Financing of a Business

Financing decision is assumed by the company's management team and less by capital providers. The major objective pursued by managers is to maximize the firm's market value, value that will be shared between shareholders and capital lenders. Although there is an interest community between those involved and the market value of the firm, there are different views on maximizing firm value, namely: capital investors follow a remuneration higher return on their investment opportunities and the management team is forced to follow the reducement of the cost capitals. The capital cost is the major objective of the management team for at least the following reasons: in order to maximize the company's value is required to minimize the costs of all inputs.

Case study: A strike in Shanghai

AbstractA sudden strike by workers in the Shanghai Petersburg Automotive Parts Company turns into a managerial nightmare following a confrontation between the strikers and the company's management team. With the chill of the global financial crisis speeding toward Asia, and animosities rising in the factory, management was in a quandary as to how to proceed in identifying the sources of the problem and finding an equitable solution for all. Once the strike ended, management had to look back and unravel how this had happened, and decide what steps to take to move forward and mollify the factory workers. © 2011 Wiley Periodicals, Inc.

Implementação de programas de qualidade: um survey em empresas de grande porte no Brasil

O objetivo deste trabalho é identificar os principais aspectos da implementação dos programas de qualidade em empresas brasileiras, a partir dos modelos mais difundidos e implementados como a certificação de sistemas de qualidade nas normas ISO 9000, o Seis Sigma e o Total Quality Management (TQM), fazendo uma análise comparativa e crítica de sua adoção pelas organizações e estudando as relações existentes entre eles, a complementaridade e as redundâncias. O tema é extremamente relevante no cenário atual, em que as companhias investem quantias significativas em diversos programas de melhoria da qualidade e possuem enormes dificuldades para avaliar o impacto estratégico, bem como o respectivo valor agregado. A metodologia adotou elementos da análise quantitativa, isto é, uma pesquisa do tipo survey. O universo para a coleta de dados foi extraído da relação "Ranking Valor 1.000", que contém as 1.000 maiores empresas brasileiras, publicadas no anuário do jornal "Valor Econômico", ano-base de 2004, partindo-se do pressuposto de que, nestas empresas, estarão os embriões dos modelos emergentes de gestão da qualidade. Posteriormente, as respostas obtidas por meio de questionários foram analisadas com o auxílio de um programa estatístico. A análise concluiu que as empresas que implantaram o programa Seis Sigma são as de maior tradição em qualidade, ou seja, adotaram outros programas anteriormente; as organizações que mais investiram em qualidade, pela adoção de programas, obtiveram sucesso nos indicadores de desempenho; e as principais causas do insucesso dos programas de qualidade ISO 9000, Seis Sigma e TQM nas organizações analisadas foram a escassez de recursos financeiros para a correta implantação e o frágil apoio da direção da empresa.

Manufacturing regeneration through corporate entrepreneurship: middle managers and organizational innovation

Purpose – To investigate the role played by corporate entrepreneurs in the strategic renewal of mature manufacturing companies. Design/methodology/approach – A case study approach is adopted as a means of identifying links between corporate entrepreneurship and social capital. Data are drawn from a three-year study which incorporates formal and informal interviews with 15 members of a pseudonymous company management team. Findings – The study extends understanding of limits between corporate entrepreneurship and social capital in three ways: corporate entrepreneurs (CEs) can exploit “structural holes” for the benefit of the organisation rather than for career advancement; newcomers are more effective than insiders in overcoming the relational inertia caused by lack of external links; the bridging actions of CEs are important for linking internal activities as well as for accessing external knowledge. Originality/value – The case is used, in combination with earlier contributions to the literature, as a basis for reconceptualizing the process of corporate entrepreneurship.

Asking Questions: A Management Tool

The occupational health nurse manager does not have all the answers. In using a democratic style of leadership with well qualified professionals, the technique of questioning can be invaluable in clarifying the issue, brainstorming solutions, developing a course of action, and monitoring success. The personal rewards to the occupational health nurse manager will include a reputation for being an effective listener, a problem solver, and a valued member of the company's management team.

The Role of Intelligence in Formulating Strategy

Successful business strategies are inherently dependent on the skills of the corporate strategist and the company management team's ability to implement the strategies. However, like the chef who is creating the epicurean meal, the strategist is also dependent on the ingredients that he has to work with—in essence, his strategy can be no better than the information from which it is derived. The more comprehensive and prescient that information, the more likely the strategy is to be successful.

Top management turnover following mergers and acquisitions

AbstractLittle is known about the effects of a merger or an acquisition on an acquired company's management team. This research follows the employment status of target companies' top managers for 5 years from the date of acquisition. Results indicate that turnover rates in acquired top management teams are significantly higher than ‘normal’ turnover rates, and that visible, very senior executives are likely to turn over sooner than their less‐visible colleagues. Variations in top management turnover rates, however, are not accounted for by type of acquisition (i.e. related or unrelated).