PPM Papers Coming Soon
This section contains information about articles under review and waiting for publication in next issues of the journal.
Questionnaire verification of prevention of mobbing/bullying as a psychosocial stressor when implementing CSR
Jolita Vveinhardt, Institute of Sport Science and Innovations, Lithuanian Sports University, Lithuania
Abstract. The employer is obligated to deal with the psychological safety issues of the employees by legal acts that define them. Also, the organizations themselves must take responsibilities in order to ensure the psychological safety of the employees in the organization. The psychological safety of the employees includes such areas as bullying, various forms of psychological terror suffered from co-workers as well as leaders and clients, the prevention and intervention of stress and health changes. In order to timely diagnose such phenomena in early stages, special instruments are necessary. This article presents a questionnaire customized by the authors for prevention of mobbing /bullying as a psychosocial stressor while implementing corporate social responsibility. The questionnaire was developed based on theoretical assumptions, as well as adapting previous questionnaires made by the authors of the article. The validated questionnaire "Diagnostics of mobbing/bullying as psychosocial stressor" is provided as the main result of the survey.
Credit risk management and cyclicality of bank lending to non-financial corporations in Italy during the financial crisis: 2008-2012. A modeling study
Stefano Olgiati, Ph.D., University of Bergamo, Italy
Abstract. Credit to non-financial corporations in Italy is characterized, in the period June 2008 - June 2012, by frequent and intense quarterly cyclical fluctuations (peak amplitude ˆ39.2 billion). The amplitude of these fluctuations has been ascribed to the effects of Basel II accords during the financial crisis which, by imposing regulatory capital constraints on banks' lending on the basis of credit risk estimates, induce an excessive credit reduction during economic recession and an excessive credit growth during economic expansion. In order to mitigate these cyclical effects, various techniques of buffering have been advocated. We have tested the opposite null hypothesis that the interaction between new credit given and defaults from outstanding loans tends to a steady state. We have tested a quasi-linear distribution with a Cyclical Sensitivity Parameter (CSP) parameterized on variation of new credit supply in excess or defect of the rate of default of outstanding loans. We have found that, in the period June 2008 - June 2012, frequent fluctuations of the total credit used by non-financial corporations are strongly related to the interaction between the default rate of outstanding loans and the growth rate of new credit supply. We conclude that credit risk management in Italy has been effective in parameterizing credit supply growth to outstanding credit reduction caused by defaulting loans within the Basel II regulatory framework. Basel III prospective point-in-time output buffers based on filtered Credit/GDP ratios and dynamic provisioning proposals should take into account this steady state pattern underlying frequent and intense credit cyclical fluctuations.
The value relevance of R&D expenditure after the adoption of the international accounting standards by Italian publicly listed companies
Francesco Napoli, Universita degli Studi E-Campus, Italy
Abstract. We measure the utility for investors of financial data regarding expenditure on research and development, which are disclosed through the firm's financial statement. With this aim, we analyse financial and market data on a sample of Italian quoted companies, starting from the year in which the International Accounting Standards (IAS) were applied. Through a single measuring model based upon Ohlson's equation (1995), we simultaneously investigate the value relevance of the different research and development (R&D) accounting treatments (the portion of R&D expenditure which is capitalised and that which is expensed). We find that disclosure, regulated by the IAS, contains value-relevant information. In particular, we find that adoption of the IAS has, on the one hand, constrained management discretion and, on the other, increased the explanatory power earnings have for market values. Finally, we find that R&D is one of the main contributors to the formation of the gap between market and book values in the sampled companies.
Business risk management-the key success factor: evidence from shebeens and taverns in Soshanghuve Township
Ajay K Garg, TUT Business School, South Africa
Abstract. This study examined the factors that affect business growth by shebeens and taverns owners in Soshanguve Township. Data was collected using structured closed-ended questionnaires. The population consisted of 196 businesses, 120 were sampled and 84 responses were received using a structured questionnaire. Frequency analysis, SEM modelling and Chi square testes were done to analyze the data. Results indicate that majority of the businesses were operating as sole propriety and have been in existence for more than 5 years, hired less than 5 full time employees. The study revealed that there was a weak but positive relationship between capital, managerial skills, government support and legislation and regulations and the growth of the business, while entrepreneurial capabilities showed a strong and positive relationship with growth. This study concludes that awareness of business risk; its management, willingness to take risk and expand were the key factors to growth. While other factors listed by literature does play a role in the growth but were not paramount to success.
Strategic enactment: strategy making practices for complex terrains
Shamim Bodhanya, University of KwaZulu-Natal. South Africa
Abstract. The field of strategic management has been dominated primarily by rational and analytical approaches. Although there has been some shift to incorporate perspectives and ideas about emergent strategy, these draw primarily from theory related to organizational learning. This paper presents a critique of conventional approaches to strategic management by taking an inter-disciplinary perspective of strategy drawing on organizational learning, system dynamics, complexity theory, futures thinking, creativity and decision-making. It argues instead for a shift of perspective to that of strategy making, by way of a strategic enactment process that embraces a more organic, dynamic, emergent nature of strategy. A set of practices is proposed that may facilitate strategic conversation in such a strategic enactment process. This is a systemic set of practices to facilitate effective strategy and in traversing complexity and turbulence. It overcomes the formulation and implementation dichotomy by taking a holistic perspective and integrating them into single gestalt of thinking-action, applicable in a wide variety of organizations and contexts.
The influence of open plan work-environments on the productivity of employees: the case of engineering firms in Cape Town
Wildré Kok, Faculty of Business, Cape Peninsula University of Technology, South Africa
Abstract. More large organizations are moving away from traditional private offices and adopting open plan work-environments. This is mainly done to save space and money since office space is limited in both size and usability. Prior research suggests that large organizations in the United States of America and the United Kingdom make use of open plan work-environments as emphasis is placed on cost-effectiveness, but not necessarily on employee satisfaction. Since the advantages of open plan work-environments (e.g. sharing ideas, improved communication, etc.) largely outweigh the disadvantages of open plan work-environments, it provides justification for the global ‘trend' of open plan work-environments. Notwithstanding the above, organizations should be mindful as to how open plan work-environments may impact on its employees' morale and the overall effectiveness of its employees, among other areas. This research study was conducted with the main intent to determine how employees, in a South African dispensation, are influenced by open plan work-environments, particularly in relation to employees' productivity and job satisfaction. This research study was empirical in nature and followed a mixed methods approach whereby data were collected from 32 respondents situated in two engineering firms, in Cape Town, through means of questionnaire-tools. All respondents had to adhere to a strict set of delineation criteria in order to constitute a valid response. It was found that majority of respondents who were situated in open plan work-environments preferred private offices as opposed to open plan offices, especially since it had an adverse influence on employees' concentration, privacy and emotional well-being.
Empirical evaluation of China imports on employment in the South African textile industry
Emmanuel Innocents Edoun, University of Johannesburg, South Africa
Abstract. This paper is set to generate some empirical perspective on the impact of Chinese imports on employment levels in the South African textile industry. Using regression analysis as a method of inquiry, this paper critically assess the relationship that exist between textile imports and employment levels as well as between exchange rates and employment levels. South Africa's imports data, employment data and exchange rate (South African Rand per Chinese Yuan) for the period 1993 to 2011 is used to analyze the relationship between high level of imports from China and employment levels in the industry. Initial findings reveal that an increase in the value of textile imports from China will cause a decline in employment levels in the South African textile industry.