Managerial Monitoring Research Articles

Common Ownership, Competition, and Corporate Governance

This paper presents a theoretical framework for determining the ownership stakes held by financial investors in companies competing in the same product market, commonly referred to as the level of common ownership. In our model, these investors are primarily motivated by the anticipation of capital gains resulting from the impact of common ownership on product market competition, which enhances profitability for the firms involved. However, common ownership also undermines effective corporate governance by diminishing blockholders’ incentives to engage in value-enhancing behaviors, such as managerial monitoring. These adverse effects on corporate governance act as limiting factors, ultimately determining the equilibrium level of common ownership. This paper was accepted by Joshua Gans, business strategy.

Managing exploration in organizations: The effect of superior monitoring on subordinate search behavior

AbstractResearch SummaryIn this article, we explore the effects of managerial monitoring on the behavior of subordinates tasked with the search for alternatives in a complex environment. We argue that managerial monitoring will lead subordinates to exhibit more search than they would engage in otherwise as they try to impress their superiors by exerting more effort. We test and confirm our hypothesis in four laboratory studies with a total of 444 participants. Our findings show that search distance and duration are highly susceptible to managerial monitoring, whereas similar interventions from peers and subordinates are ineffective.Managerial SummaryA key task for employees is to find new solutions to corporate problems when and where they occur. But what determines how long these individuals search and how far they venture before settling on one solution eventually? And how can and should managers steer this process, particularly if they are as unknowing about potential solutions as their subordinates? Here, we show that leaders can bring their staff to explore complex solution spaces longer and more remotely by regularly appraising their subordinates' efforts. This is because employees will feel an enhanced need to demonstrate their industriousness to their bosses, and long and distant search is easily justified. Whether this increases corporate performance depends on the complexity of the solution space and the opportunity costs of search.

Board gender quotas and outward foreign direct investment: Evidence from France

AbstractWe show that board gender quota laws reduce the propensity of French firms to undertake outward foreign direct investment. For this, we use firm‐level data for the period 2007 to 2015 and a difference‐in‐difference approach. The exogenous increase in the share of women directors decreases the share of foreign subsidiaries by 7 percentage points when the share of women directors is at its highest. The share of foreign subsidiaries is affected by the decrease in probability of having a foreign subsidiary, which indicates disinvestment. The effects on outward foreign direct investment we detect are strongest for the poorly managed firms, pointing to tough managerial monitoring by gender diverse boards as the driving force behind results.

When the Boss Becomes the Referee: The Effect of Relative Performance Evaluations on Employee Perceptions of and Responses to Managerial Monitoring

When the Boss Becomes the Referee: The Effect of Relative Performance Evaluations on Employee Perceptions of and Responses to Managerial Monitoring

Employee accountability in Indonesia: The role of formalization, managerial monitoring behavior and perceived competence.

Accountability is an imperative element of organizations that Human Resource Management establishes as a behavior guideline. It encourages employees to be responsible for decisions and actions they took. Employing Social Cognitive theory, this study aims to investigate the mechanism of how formalization influences employee accountability. We hypothesize that this relationship is mediated by managerial monitoring behavior and perceived competence. Data was collected from 331 employees of a government agency in Indonesia. Structural equation modelling analysis reveals that (1) formalization directly and indirectly influences employee accountability, and its direct effect is higher than its indirect effect, suggesting the importance of formalization system in Human Resource Management; (2) the contribution of perceived competence as a mediator between formalization and employee accountability is higher than the contribution of managerial monitoring behavior, suggesting the importance of micro-foundations of Human Resource research; (3) the relationship between formalization and employee accountability was serially mediated by managerial monitoring behavior, which was preceded by managerial monitoring behavior for task performance and continued by managerial monitoring behavior for interpersonal facilitation This study contributes to international Human Resource Management literature by explaining the mechanism by which formalization affect accountability.

MORAL HAZARD IN REMOTE TEAMS

AbstractWe reexamine the ability of teams to credibly self‐impose group punishments and prevent free riding when individual inputs are unobservable. We formulate self‐imposed group punishments as performance underreporting by the team. Although underreporting is not credible in a static game, we show that simple strategies can sustain underreporting in a repeated game, and that the threat of underreporting improves welfare only if team members' preferences between shirking and team output consumption are nonseparable. Our results suggest that self‐assessments can replace increased managerial monitoring in remote work environments.

Oil price uncertainty, corporate governance and firm performance

We investigate whether oil price uncertainty affects Chinese firms' operating performances and the moderating role of corporate governance practices in this relationship. Using a sample of 2,696 Chinese listed firms from 2007 to 2019, we find that oil price uncertainty negatively affects Chinese firms’ operating performances. Notably, the negative effect is statistically significant in the aggregate market and the energy-related sector but not in the non-energy-related sector. Furthermore, managerial incentives can help firms mitigate the adverse effect of oil price uncertainty, whereas managerial monitoring cannot.

ECONOMIC SECURITY OF THE ENTERPRISE AS A FACTOR OF EFFICIENCY OF FOREIGN ECONOMIC ACTIVITY

The article proves that the importance of foreign economic activity for domestic enterprises and the need to ensure their economic security determine the urgency of the transition to security-oriented management of foreign economic activity. The essence of the concept of «economic security» is analyzed and it is determined that it is a rather broad concept that should be considered as a process of more efficient use of its production and economic resources and entrepreneurial capabilities. set goals and objectives in accordance with his chosen development stra-tegy. The level of economic security of the enterprise is studied and it is determined that it depends on how effectively its management and specialists will be able to avoid possible threats and eliminate the harmful effects of certain negative components of the external and internal environment. It is determined that the purpose of economic security of the enterprise is to guarantee its stable and most efficient operation in the present and high potential for future development. The mechanism of economic security management, which depends on the scope of the enterprise, providing corporate resources and opportunities to implement basic measures to maintain its proper level as a whole and its main structural elements, as well as the mechanism of economic security of foreign economic activity is an effective element of economic security. The list of tools (models) for ensu-ring the economic security of foreign economic activity, which relate to the mechanism of economic security management of foreign economic activity of the enterprise. The place of economic security of entrepreneurship in the security system of the national economy is determined.It should be noted that the universal tools to ensure a high level of economic security of the enterprise include: organizational and managerial measures, technical support, control and systematic monitoring of indicators of its individual structural elements and economic security of the enterprise as a whole. Keywords: enterprise management, economic security, foreign economic activity, instruments of the mechanism of economic security, models.

The Effects of (Un)Expected Match Outcomes on Stock Return: A Case Study of Borussia Dortmund

Abstract: We analyze the nature of stock price reactions of Borussia Dortmund, the only publicly traded soccer club in Germany, following domestic league and international matches over an extended period of time. Our results suggest that abnormal returns vary with the match result, the match venue, the competition type, bookmakers’ expectations, and the importance of the Bundesliga match. Although our results confirm the evidence presented in previous studies, they are surprising insofar as the legal form of Borussia Dortmund GmbH & Co. KGaA—a mixture of a stock company (AG) and a limited partnership (KG)—is quite different from that of traditional stock companies. From a theoretical perspective, diluted property rights and a lack of managerial monitoring are the main characteristics of this legal form. However, the club managers’ career concerns and the competitive pressures of the football industry seem to compensate for these deficits in the organizational architecture.

Algorithmic control and gig workers: a legitimacy perspective of Uber drivers

ABSTRACT Organisations increasingly rely on algorithms to exert automated managerial control over workers, referred to as algorithmic control (AC). The use of AC is already commonplace with platform-based work in the gig economy, where independent workers are paid for completing a given task (or “gig”). The combination of independent work alongside intensive managerial monitoring and guidance via AC raises questions about how gig workers perceive AC practices and judge their legitimacy, which could help explain critical worker behaviours such as turnover and non-compliance. Based on a three-dimensional conceptualisation of micro-level legitimacy tailored to the gig work context (autonomy, fairness, and privacy), we develop a research model that links workers’ perceptions of two predominant forms of AC (gatekeeping and guiding) to their legitimacy judgements and behavioural reactions. Using survey data from 621 Uber drivers, we find empirical support for the central role of micro-level legitimacy judgements in mediating the relationships between gig workers’ perceptions of different AC forms and their continuance intention and workaround use. Contrasting prior work, our study results show that workers do not perceive AC as a universally “bad thing” and that guiding AC is in fact positively related to micro-level legitimacy judgements. Theoretical and practical implications are discussed.

Dark traits, social loafing and team member exchange: who slacks and when?

PurposeThis paper aims to examine the workplace team member self-reported social loafing (SL) in relation to the dark triad personality traits of Machiavellianism, narcissism and psychopathy. The moderating effect of team member exchange (TMX), a social contextual factor, on each proposed dark trait-SL relationship was also examined. A person X situation interactionist perspective was adopted.Design/methodology/approachAmerican employees were recruited to complete surveys consisting of previously published, validated and reliable scales. Correlations and hierarchical regressions were used to test the study hypotheses.FindingsAs hypothesized, all positive dark trait-SL relationships were supported. TMX moderated the Machiavellianism-SL and psychopathy-SL relationships, as hypothesized. Unexpectedly, TMX was not found to moderate the narcissism-SL relationship.Originality/valueFindings imply increased managerial monitoring costs when supervising employees with elevated levels of dark traits. This is especially so when workers are assigned to team tasks and SL is a concern. To alleviate loafing tendencies, the nurturing of high-quality TMX relations among employees with elevated levels of traits Machiavellianism and psychopathy likely moderates the positive Machiavellianism- and psychopathy-SL relations. The emerging SL literature that accounts for both personality and situation, the dark trait-deviant workplace behavior literature stream and research evidencing the ability of TMX to remedy problematic characteristic behaviors are all extended by the present research.

How is Information from ABC-VED-FNS Matrix Analysis Used to Improve Operational Efficiency of Pharmaceuticals Inventory Management? A Cross-Sectional Case Analysis.

PurposeThe categorization of inventories using various techniques optimizes the efficiency of warehouse operations. The ABC (always, better, and control); VED (vital, essential, and desirable); and FNS (fast-, normal-, and slow-moving) analyses provide items according to cost significance, criticality value, and consumption rate respectively. Thus, this study aimed to identify the categories of items requiring focused managerial control, priority, and replenishment intervals, as well as to evaluate whether the ABC–VED–FNS matrix is fit for effective and efficient inventory control of the Ethiopian Pharmaceutical Supply Agency (EPSA).MethodsAn institution-based cross-sectional descriptive study was conducted on 393 pharmaceuticals distributed by the EPSA-Jimma hub. The annual sales list with respective total quantity and unit price was collated from the logistics data records to perform the ABC analysis. The VED data were generated from the agency’s pharmaceutical procurement list. To perform FNS analysis, we take into account the number of issue transactions as well as the average monthly consumption pattern for each item. Microsoft office Excel 2013 statistical functions were used to analyse the collated data.ResultsThe ABC-VED analysis revealed that 187 (47.58%) of category I items account for 90% annual sales value; of which the highest proportion (63%) was AV items (36, 9%). Remarkably, there was no desirable (D) commodity that belongs to Class A. From the ABC–VED–FNS matrix analysis, category I consisted of 12 combinations with 187 (47.6%) items. Moreover, 28 (7.13%) items (CDN = 4 and CDS = 24) constituted category-III.Conclusion and RecommendationThe ABC–VED–FNS matrix analysis can help organization implement inventory control policies and techniques, narrow down a group of items that require more managerial monitoring and control, prioritize a storage location (pick-face) plan, minimize the time and labor cost of put-away, picking, and packing, and dictate when products should be reordered or replenished.

The Influence of Peers in Worker Misconduct: Evidence from Restaurant Theft

Problem definition: Misconduct, such as theft, is a major problem in operational settings, and staffing decisions can either amplify or mitigate this problem as workers influence their peers’ behavior. Peers are known to influence coworker productivity and likely also affect counterproductive behaviors. Academic/practical relevance: Many studies have shown how mechanisms such as helping, knowledge transfer, teaching, and social pressure generate productivity peer effects in service and other settings. Yet few papers empirically examine these effects in counterproductive behaviors. We argue that while the same mechanisms driving productivity spillovers also generate peer effects in misconduct, an additional effect—strategic peer response—reflects how coworkers, under managerial monitoring, adjust misconduct in response to peers’ daily behavior. An additional contribution of this paper is to identify the effect of peers on operational performance in a firm setting. Methodology: We use transaction and theft data from 83,153 servers at 1,049 restaurants across 46 states in the United States. We employ instrumental variable (IV) models to account for both reflection problems and correlated error terms in same-day peer theft. We use Monte Carlo simulations to present how biases identified by a combination of ordinary least squares (OLS) and IV models suggest that managerial oversight might generate negative correlation in the same-day error terms of peers that reflects strategic peer responses. Results: Our results show that although servers are more likely to steal when working with high-theft peers, they steal less as peers steal more on a given day. We also show that this negative correlation in daily peer theft is higher under an information technology system that increases managerial oversight by reporting likely theft to managers. Importantly, we demonstrate how reflection effects can significantly amplify even small peer-effect coefficients to have large organizational implications. Our parameter estimates indicate that doubling a single worker’s average theft amount will increase total theft in an average restaurant by 76%. Doubling all workers’ theft amounts increases totals by 550%. Finally, we show that the positive peer effect from high-theft coworkers only exists for new workers in their first three to five months on the job, consistent with imprinting mechanisms that include knowledge transfer and norms. Managerial implications: The results show that the costs of employing unethical workers is higher than the direct cost of those workers’ misconduct because their behavior spills over into coworkers’ actions and amplifies through reflection effects. Yet our results also suggest that this contagion can be mitigated by managerial oversight. So long as there is sufficient monitoring of misconduct, workers will strategically limit such behavior in response to peers.

Inventory analysis in a tertiary hospital in Benin City, Nigeria

Purpose: In resource limited countries like Nigeria with ever increasing drug needs, it is necessary to apply scientific tools for effective and efficient management of pharmaceuticals in the hospital. This study aims to identify the categories of drugs in Federal Neuro-Psychiatric Hospital (FNPH), Benin City that are available and make recommendation for strict managerial control. Methods: The annual consumption and expenditure incurred for pharmaceuticals from 2014-2018 was analyzed. The ABC, VED and a matrix based on ABC and VED analysis was developed to narrow down the group of items for effective managerial monitoring. Results: The ABC-VED matrix analysis of drugs for 2014, 2015, 2016,2017 and 2018 revealed that category I items which were 21 (20.19%), 26 (21.14%), 27 (19.02%), 27 (18.12%), and 27 (18.49%) respectively consumed NGN18,991,634 (72.21%), NGN28,817,113 (74.22%), NGN37,955,459 (73.76%), 42,562,300, (70.79%), NGN44,430,522 (74.03%) for each year Annual Drug Expenditure respectively. This category which include olanzapine, amitriptyline, carbamazepine, nifedipine, consumables, risperidone, sodium valporate, diazepam, 10% dextrose water, 4.3 % dextrose saline, 5% dextrose saline, biperidine 5mg should have maximum attention and meticulous inventory control. Conclusion: Scientific inventory management tools need to be applied strictly and routinely for category I of the ABC-VED matrix in order to save money for the establishment and reduce out of stock syndrome. Keywords: ABC analysis, VED analysis, ABC-VED matrix, Category I, Inventory Analysis, Pharmacoeconomics

ОСНОВНІ СКЛАДОВІ ТА ПРИНЦИПИ ЕКОНОМІЧНОЇ БЕЗПЕКИ АГРАРНИХ ПІДПРИЄМСТВ

Introduction. The functioning of agricultural enterprises in a competitive and natural environment causes the existence of specific threats, overcoming which necessitates the creation of an economic security mechanism. The Purpose. The purpose of the article is to identify problems of agricultural enterprises functioning, to protect producers from the effects of destructive influences, to ensure stable and maximally effective development of enterprises in the future. Results. It is established that the structural composition of the economic security system is formed by intra-production and non-production components. The plural of non-production components of economic security of agrarian enterprises are given, which include market and information. The basic components of agricultural enterprises economic security developed by scientists are summarized: their essence is defined and the services responsible for them are specified. The group of principles of the system construction of agricultural enterprises economic security is presented: legality, systematic construction, economic feasibility, effectiveness of managerial decisions, efficiency, cost optimization, validity, complexity, balance, timeliness, continuity, constant monitoring, activity, coordination and interaction, centralization, interaction focus on strategic goals, objectivity, responsiveness and dynamism, variability, responsiveness, adaptability, flexibility of management, development and improvement, promotion and responsibility. Conclusions. It is determined that the economic security of an agricultural enterprise is a state of its economic resources that provides a rational branch-organizational structure of the enterprise, taking into account the geographical location and natural and climatic conditions of its activity, under which it is able to effectively counter the possible threats to the internal and external environment, as well as to achieve the set goals and objectives based on the implementation of its chosen development strategy. Keywords: agrarian enterprises, economic security, economic security of the enterprise, system of economic security of the enterprise, planning.

Preface to the Volume 2 Issue 2 of Indian Pacific Journal of Accounting and Finance

Preface to the Volume 2 Issue 2 of Indian Pacific Journal of Accounting and Finance

K transformaci jednoho českého strojírenského koncernu. Změna kontinuitou – kontinuita změnou

This article presents first results from a case study in a traditional Czech mechanical engineering group. This autochtonous company makes an attempt at achieving reorganization without any transfer of knowledge, technology and capital from foreign partners. The transformation of the institutional frames of economic actions led to an atomization of the concern into many autonomous subsidiaries and a diffusion of power, in the end to a dispersion of the internal networks and an endangering of its synergetic potentials. Therefore the concern started the actual restructuring in order to revitalize the networks by embedding them in a new formal organization and thus to set up conditions for its strategy of expansions and globalization. A parallel to the change in organizational structures, a shift from a charismatic to a more rational form of leadership is to be observed. In this context an attempt to change the corporate culture and the industrial relations was inaugurated by the management, paradigmatically analyzed by the substitution of the socialist piece-rate system as a medium of the workers power by hourly wage as an instrument of managerial monitoring. The impact of the organizational restructuring on the workers life on shop-floor level will be shown by the fusion of two companies and its employees and a standardization of the working culture.

Real-Time business data acquisition: How frequent is frequent enough?

Effective data acquisition for business process monitoring has become a critical element in today’s business world. While the need for monitoring is generally agreed upon by both re- searchers and practitioners alike, the means and mechanisms are often vague. This is especially salient with the fast growing availability of various technologies to monitor in real-time through recent advances such as the Internet of Things (IoT) with specific emphasis on Radio-Frequency IDentification (RFID) and associated sensor networks. This study is motivated by the lack of published literature in data acquisition and analytics that specifically addresses sufficient real-time data acquisition for effective managerial monitoring. As a step in addressing this void, we review and extend existing literature in this general area by studying various requirements and information sources that relate to effective management monitoring. We then design an exploratory study to evaluate current managerial monitoring needs and the importance of automated data collection technologies. Results from this study show that the most important latent factor that influences an organization’s information need is its dynamic competitiveness, and consequently, companies with a dynamic supply chain would need a faster transaction and operations data system. The second important latent factor is the behavioral performance, which renders it essential to have a human-centric data system. This study provides evidence for the significance in adopting technologies such as RFID and other IoT systems for real-time monitoring in highly dynamic organizations and offers guidelines for analytical technology adoption for various industries.

Benefits of visual management in construction: cases from the transportation sector in England

PurposeThe purpose of this paper is to explore the benefits of visual management (VM) systems in transportation construction projects in England.Design/methodology/approachFollowing a comprehensive literature review, the benefits of VM were investigated through action and case study research executed within two construction projects in England.FindingsThe main findings are: VM can contribute to increased self-management, better team coordination, better promises or an increasing plan percent complete, easier control for the management and improved workplace conditions in the transportation sector. It is important for the management to obtain the engagement of their workforce for VM through increased participation and show the actual benefits. However, managerial monitoring and control on the systems should not be underestimated.Originality/valueThe transportation sector in England has been systematically deploying Lean construction techniques in its operations for a while. One of those Lean techniques is a close-range visual communication strategy called VM. The literature on the VM implementation in construction is scarce and generally limited to the building construction context. This paper documents the benefits of VM systems for the transportation sector by using data captured through both qualitative and quantitative data collection methods. The paper also identifies a set of recommendations for similar research efforts in the transportation context in the future.

Exploring Requirements of the ‘Would Be’ Expert Cardiac Care Nurse

<p><strong>BACKGROUND</strong><strong>: </strong>Cardiovascular interventions have experienced extraordinary progress in the past decades. But it seems that preparation of cardiovascular nurses has not been in pace with the changes. This is while these nurses have a prominent role in the care and management of life-threatening diseases in these wards which can lead to reduced mortality. The present study aimed to explore the effective factors on training a cardiac care nurse.</p><p><strong>METHODS</strong><strong>: </strong>This research is qualitative and applies inductive content analysis. Participants included 7 matrons and 50 nurses selected through purposive sampling method. Data was collected using semi-structured interviews and open questionnaires. Also, conventional approach to content analysis was used to analyze data.</p><p><strong>RESULTS</strong><strong>: </strong>To have a qualified CCU nurse, the findings cover four main themes including specialist nurses (having appropriate personal and professional characteristics), acquiring comprehensive educational content (acquiring specialized cardiac, basic nursing, and general educational content), integrated educational approach (group education, individual education and special education methods), and administrative and organizational requirements (the necessity of recognizing the position of CCU nurses, allocation of material and intellectual benefits, educational and managerial monitoring of supervisors).</p><p><strong>CONCLUSION</strong><strong>: </strong>Since cardiac care nurses play an important role in ensuring nursing care quality in cardiovascular wards and can improve the care delivered to the patients, it is necessary for nurses to have appropriate professional and personal qualities. Therefore, nurses should have training on general, basic nursing, and specialist cardiac content through integrated educational approach. At the same time, managerial and organizational requirements should be established to maintain and improve their competencies and capabilities.</p>