ISSN: 1813-0534






Volume 5 No3 December 2009

Ethical Leadership Required to Lead Europe beyond Instrumental Rationality

Prof. Kurt April, UCT (SA) & Ashridge (UK),
Amanda April, UCT (SA) & Ashridge (UK),
Dr. Eddie Blass, University of Hertfordshire (UK)


This paper questions the extent to which our interpretation of diversity has been
socially-constructed through a pro-conformity lens, and hence undermines the nature ofdiversity itself and space in which identity can be determined.
The authors reflect on practice and policy in Europe resulting from the expansion of
the European Union.
The incumbent and emerging leaders in Europe need to better understand the issues
and consequences that are emerging from the dualistic nature of the newly expanded unified Europe. Most Western European countries and companies have previously opted to either implement the minimum requirements, normally driven through law and legislation in its companies and societies, e.g., implement demographic targets to be achieved, or focus narrowly on context-relevant multiculturalism. This stems from Anglo-American practice based on the premise of instrumental reasoning, which has been adopted wholesale in Western societies with little challenge or cultural contextualisation. This contrasts with theapproach that the newer EU members adopt, due largely to their experience of heightened individualism as well as communalism throughout their long political and economic histories. Now that the EU has expanded, there is both the opportunity and need for a newform of diversity management to emerge.
􀂃Practical Implicatins
The fundamental flaw thus far is that too much of the focus has been on efficiently
boxing people into certain categories, typically geographic cultural ones, and then seeking to lead them through those categorical lenses rather than fully embracing the uncertainty ofdiversity. Leaders need to fully engage in a more diverse discourse and the deconstructionof instrumental reasoning.
This paper challenges the accepted interpretation of diversity in Europe by challenging the historical foundations from which it developed, arguing that this was an Anglo-American construction aimed at maximising efficiency rather than appreciating difference.
Keywords:instrumental reason, leadership, identity, dualistic complexity, multiculturalism

Article Type:Conceptual / Viewpoint


The Business of Performance Management For A Global Workforce:Aspects and Implications

Professor Chris Rowley & Ms Irene Poon
Faculty of Management, Cass Business School, City University, London, UK


Despite the global economic turmoil, the need for organisations to manage people and their performance continues and may be even more important, despite its inherent difficulties.Here in this article we examine the critical management practice and issue of performance management (PM) for a global workforce. To do this we an overview of typical PM programmes and the PM cycle, methods and techniques. We then go on to examine the relativity of PM in international settings and for a global workforce.

Strategic Human Resource Management: A Question of Synergistic Relationships?

Dr. Robert-Leigh Compton
Australian Catholic University,Sydney, Australia


This paper examines a major Australian government-owned energy company’s leadership and HRM strategies in the context of a ten year campaign by the government to privatise the industry. A strategy to create a new and empowered culture is analysed in terms of its drive tonot only prepare the workforce for a privatised industry, but to also develop a highlycompetent leadership team alongside a supportive and integrated competency based model for strategic human resource management. The primary aim of the developed model is to ensure that all leadership competencies and HR strategies flow directly from the organisation’s strategic plan. A second aim of the model is to ensure that all HR strategies and processes are linked together creating a synergistic relationship with internal business partners alongside key external customers and suppliers. Radical change, innovative leadership competencies and a supportive and integrated human resource management model will be required if this company is to maintain its place in the new national market.



Institutionalization of Human Resources Management in Government Organizations in Kuwait from Employees' Perspectives

Hamed Sulaiman Al-Fraih,Assistant Professor of Public Administration,Kuwait
Mohammad Qasem Al-Qarioti,Professor of Public Administration Kuwait University



This study examines levels of institutionalization in human resources management (HRM) practices and policies of government organizations in Kuwait, from employees’ perspectives. A stratified random sample consists of (496) employees was selected, where the employees responded to a questionnaires regarding human resources policies and practices in the areas of employee selection, job description, training, performance evaluation, promotion, and decision making. Study results revealed high levels of institutionalization in the organizations studied, which does not support the hypotheses. Explanations and implications of results are presented.

Key words:institutionalization, human resources management, merit system, employee selection, job description, training, promotion, performance evaluation, decision making, government organizations, Kuwait.


The Psychological Comfort of A Knowledge Worker – An
Empirical Analysis of Its Determinants in The Indian IT Sector during The Phase of Economic Slowdown

Apratim Bose, Dr. Jayasree Raveendran, Institute of Public Enterprise, Hyderabad,


The recent economic slowdown has created its impact across business sectors and
specifically the Information Technology (IT) industry in India owing to the nature of projects that has a multinational dependence. This has eventually increased the perceived risk of the knowledge workers in the sector. This paper tries to understand the psychological state of mind of the knowledge workers during the economic slowdown which can potentially affect their productivity due to rising concerns over job security. The paper has studied the various aspects of the knowledge workers with respect to their feelings and thoughts towards their company, potential of the company to bag sufficient projects to withstand the slowdown, perceived effectiveness of employee appraisals and availability of onsite opportunities and their impact on the psychological comfort levels. Multiple regression analysis evidences the significant impact of the hypothesized variables on the psychological comfort levels of the knowledge worker.

Organizational Citizenship Behavior as A Predictor of
Personal Effectiveness and General Health

Ajay K Jain, Ph.D.
Management Development Institute, India


The present study examines the predictive ability of Organizational Citizenship
Behavior (OCB) with regard to Personal Effectiveness and General Health as criterion variables. Sample consisted of male middle level executives (N = 250) of two wheelermanufacturing motorbike organizations. Results of the study, based on stepwise regression analyses suggested that OCB was found to be a powerful predictor of both the criterion variables in Indian work context. Compare to other, some dimensions of OCB are found to be more relevant and desirable in enhancing the personal effectiveness and general health. The implications of results are discussed toward a possibility and importance of increasing the OCBs among employees from a strategic human resource development point of view to provide a competitive edge in changing work scenario.

Keywords:Organizational Citizenship Behavior, Personal Effectiveness, General Health

Microsoft: Managing Growth through Reorganization

Isaac Roybal Microsoft,Ronald W. Maestas
New Mexico Highlands University, USA



In the trying economic time of today’s corporate world, the term reorganization, in relation to business, has been spoken in the same breath when discussing the long list of investment banks who have failed, or on the brink of failure. In addition, the automobile industry, (Big 3) are faced with possible bankruptcy, restructuring, a possible appointment of a “Car Czar”, or Chapter 11 Bankruptcy (Reorganization). Discussions are currently being held on congressional “bailouts.” Automakers are asking for “financial bridges.” While others are calling this crises a “rescue Plan.” Reform of bad business practices is not always a solution for reorganization. When discussing reorganization, many Wall Street analysts are referring to the equity, or stock, of a company in conjunction with potential financial strategies which may help
these investment banks dig themselves out of their current turmoil. However, another major form of reorganization happens on a daily basis at many companies throughout the world. These reorganizations have nothing to do with company’s equity or stock position, but rather the organizational alignment of the company. Many of these reorganizations occur to assist business groups in aligning with one another’s priorities, efforts and goals. They also occur when the failure of a group’s leadership occurs or to bring the engineering and manufacturing aspects of the business closer together with the product marketing.
Most reorganizations are viewed in a negative light by the employees and managers who are involved. These attitudes can be attributed to the unknown nature of reorganization. Many questions can come to mind such as, “What will happen to me?”, “Is my job at risk?”, “How will this affect the political landscape of the company?” and “Did we do something wrong?” What some do not realize is that many companies have adopted reorganization as a strategy to keep their organizations fresh with ideas, enthusiasm and a healthy mix of experience. One such company is Microsoft, who has used reorganization as part of its business strategy allowing the company to become one of the biggest and most successful in the world.

A Review on The Production Planning in The Make-to-Order
Manufacturing Firms

Mohd Shaladdin Muda, Universiti Malaysia Terengganu, Malaysia


Given the distinct differences in characteristics, it is clear that companies in the Make-toorder (MTO) sector will need to use different operation processes than those in the Make-tostock (MTS) sector. Yet much of the universalistic literature assumes that all companies should adopt practices that apply to MTS. For example as argued by Muda et al (2003;2002a;2002b), “it is the customer rather than the supplier that has responsibility for the design of products”. These companies do not deal with the same type of new product development and so a product/family focus, as advocated in much of the universalistic literature, is less relevant to the MTO sector. Several alternative methods of controlling the workload/queues in a job shop, have been discussed in this paper. Firstly, there is the concept of order release – that is determining when to release a job from the planning stage to production, which has been discussed by authors such as Van Nyen et al. (2005); Alonso-Ayuso et al. (2003); Dilworth (2000); Melynk & Ragatz (1989); Philipoom et al (1993); Lingayat et al (1995) and Bergamaschi et al (1996). This concept has been incorporated into a body of research, which has been given the label of workload control by authors in the field including Ebben et al. (2005); Haskose et al. (2004); Land & Gaalman (1996, 1998) and Zapfel & Missbauer (1993). The aim is to control the total amount of work on the shop floor in such a way that firms can more consistently meet promised delivery dates, an important objective for MTO firms.

Data Envelopment Analysis for Lean Manufacturing

Shahram Taj, University of St. Thomas, Houston, USA


This paper proposes the use of the Data Envelopment Analysis (DEA) to study the efficiency of manufacturing facilities in terms of lean manufacturing. We apply the DEA to lean assessment results of 21 manufacturing plants in electronics, telecommunication and wireless, and computer industries in China. We use supply chain, human resources, and production system design constructs as inputs and flexibility, flow, and quality factors as outputs in our DEA models. The DEA analysis shows that only six plants belonging to electronics and telecommunication and wireless were DEA efficient. Another advantage of the DEA is determining the target levels for input and output variables of inefficient plants.

Integration of ISO 9000 QMS and BPR Processes for The Implementation of An ERP System-An Empirical Case in Taiwan

Ren-Chieh Liao
Chienkuo Technology University Taiwan


Due to the intensive competition, the implementation of a good IT (information
technology) tool can help to improve the competence of an enterprise. Under such an emerging paradigm of IT-based business management, to establish an effective and efficient management information system (MIS) becomes a popular trend for enterprises all over the world. Among those various information systems, ERP (enterprise resource planning) is recognized as one the most useful tools for businesses today. This article will share an enterprise’s experiences in systematically implementing an ERP system in Taiwan. In this empirical project, the case company conducted an industry-academic cooperation BPR-ERP-ISO project. During the First stage of this project, case company’s overall operation activities were reviewed and processes within individual department /among different departments were re-designed. At the Second stage, some ERP software solutions were evaluated under some criteria (functions, cost, implementation schedule.., and so on) decided by industry-academic work force team. A full-function ERP software was chosen for case company’s daily operations. At the Third stage, following with those above two main tasks, our project applied the designed structure of ISO 9001:2008 QMS to establish a management system to help the implementation and future maintenance of its ERP system.From this empirical case, such a BPR-ERP-ISO project helped case company become a full-ERP-functioned company with sales/ distribution/ research & development/ production/procurement/ human resource activities, and some helpful operational procedures were developed to guide those daily tasks. From BPR to standard operational procedures’ establishment, experience gathering from this empirical case may be served as an effective and efficient practice to introduce and implement IT tool for business.

Keywords: ISO 9001:2008 QMS, BPR, ERP

Traditional or Contemporary? Performance Measurement System Types in The Malaysian Electrical and Electronics Industry

Tze San Ong
Faculty of Economics and Management, University Putra Malaysia, Malaysia.
Boon Heng Teh
Faculty of management, Multimedia University, Cyberjaya, Malaysia.


Findings are presented for a comprehensive questionnaire survey of characteristics of performance measurement systems (PMSs) employed in the Malaysian electrical and electronics industry. The research aims to describe and categorise PMSs, and to link such descriptors to organisational and contextual factors. Whilst much research covers PMSs adopted in the West, few studies have been conducted to date in developing countries. A large scale questionnaire survey was designed, piloted and administered to a sample of 550 firms,obtaining a response rate of 27%. Hierarchical cluster analysis identified two distinct categories of PMS using factors related to design and use of PMSs, namely traditional and balanced or ‘contemporary’. Further analysis showed that foreign-owned companies’ PMSs were more likely to be contemporary in nature and local-owned more traditional. Results are likely to be of interest to the academic community, practitioners, the Malaysian government and those in other developing countries within the region.

Keywords:performance measurement systems; developing country; traditional vs. contemporary measures

Dynamic Activity Cost Model Delivering Improved Profit

Jerome J. DeRidder, Professor
Franklin P. Perdue School of Business
Salisbury University,USA
Fatollah Salimian, Associate Professor
Franklin P. Perdue School of Business
Salisbury University,USA


Manufacturing today is done in a complex, competitive global environment.Managers need accurate, timely, and relevant production cost information to guide their decision making.An activity based cost approach includes all aspects of budgeting and resource allocation. It facilitates product pricing and provides managers with a clear picture of operations to enhance decision making and profit optimization.

Corporate Governance Structure, Information Disclosure, and Operating Performance

Yue-Fang Wen, National Ilan University, Taiwan


By suggesting that information disclosure plays a role in mitigating the information asymmetry, this paper argues that information disclosure is an intermediary variable which interferes with corporate governance variables that effectively signal firm performance. By dividing the sample into high and low ratings of information disclosure and transparency with the data of companies listed on the Taiwan Stock Exchange, results of multiple regression analysis show that a positive incentive effect exists only when the rating of information disclosure and transparency is high, and the negative entrenchment effect exists only when the rating of information disclosure and transparency is low. To verify the robustness of information disclosure as a tool to diminish the asymmetry, this paper considers different types of ownership structure to compare the differences. According to the evidences, the corporate governance structure signals the operating performance of firms but it depends on the levels of information disclosure and transparency.

The Effect of Corporate Social Responsibility Related nformation on The Capital Market: An Event Study Approach

Petra F.A. Dilling, PhD (New York Institute of Technology, Vancouver, BC, Canada)
Peter Harris, CPA, CFA and Benjamin Khoo, PhD (New York Institute of Technology,
New York, USA)


This study investigates investor reaction to sustainability news based on the Dow Jones Sustainability World Index (DJSI World). The event study approach is applied to the empirical evidence on stock price reaction to the announcement of first time additions of corporations to the DJSI World. Investor reaction to the index announcement of a sample of 116 globally listed corporations is analysed over a 4 years period. Share prices of corporations in the consumer product, healthcare, technology, and utilities industry seem to react more positively to sustainability news than share prices of corporations in the basic material, financial, and industrial product industry. In 2002, the results showed the market reacts positively to the announcement of a new corporation that is added to the DJSI World. The reaction becomes increasingly less positive in the subsequent years. This is somewhat unexpected and stands in stark contrast to the assumed growing importance of corporate social responsibility (via the DJSI World) to investors. No difference is found in investor reaction for different countries. The results suggest an overload of corporate social responsibility information, which makes it difficult for investors and other stakeholders to assess the quality of sustainability news. Regular standardized CSR reports and audits are recommended.

Performance Analysis of SBI Mutual Funds and An Investigation
into Factors Influencing Investor Confidence on Mutual Fund Managers-An Insight into The Indian Investment Climate

Abhishek Singha, Dr. Jayasree Raveendran
Institute of Public Enterprise, Hyderabad, India


This paper analyzes mutual fund performance and investor confidence on fund managers which accounts as a significant influencer of the performance of the Indian capital market. This, as a cascade effect, can impact the whole economy since an economy is predominantly an aggregate of the reactions of millions of investors. This research analyses the performance of the State Bank of India (SBI) Mutual Funds, one of the leading mutual fund houses of India and the institution with the largest banking network during a period when the economy faced a downturn and a revival (April 07-March 09). The study analyzes the Net Asset Value (NAV), Assets under Management (AUM) and Portfolio change patterns of SBI Mutual Funds during the reference period and also investigates into the factors that can affect investor confidence on the fund managers through primary data from mutual fund investors.
Conducting t-test for the equity and debt funds during the recession and boom evidenced interesting patterns for the performance of SBI mutual finds. Variables such as market information, return on investment, attitude of an investor, market conditions and reference group influence were measured and hypothesized to influence the investor’s confidence on fund manager. Multiple regression analysis points out the significant and prominent impact of market information on investors’ confidence on fund managers. Bringing in all the variables that have impacted the performance of mutual funds, a conceptual model incorporating the behavioral variables and their observable relationship is brought out from the study. The implications of the patterns and suggestions for the fund managers are discussed in the paper.The study concludes with the scope for expansion of the present work.



The Revised Malaysian Code on Corporate Governance 2007.Have Malaysian Shariah Companies Complied?

Noraizan Ripain , Universiti Malaysia Sabah , Malaysia
Rohami Shafie, Universiti Utara Malaysia, Malaysia
Rosle Awang Mohidin, Universiti Malaysia Sabah, Malaysia
Andy Lee Chen Hiung, Universiti Malaysia Sabah, Malaysia


In the year 2000, the Malaysian government has introduced the Malaysian Code on Corporate Governance or best known as MCCG. The idea to bring up this MCCG was to ensure that public listed companies in Malaysia implement the best principles and practices of good governance and described the optimal corporate governance structures and internal processes. Abdul Wahab et al. (2007) found that the corporate governance reform in Malaysia had been successful, with a significant improvement in governance practices. In addition to that, Malaysian Government takes initiative to revise the code in order to strengthen the MCCG (which takes effect from 1st October 2007). The objective of this study is to examine the execution of principle and practice of revised Malaysian Code on Corporate Governance(MCCG) 2007 for companies categorized under the Shariah compliant. Specifically, this study investigates the compliance of board of directors and audit committees issues of Shariah companies which are listed in the main board of Bursa Malaysia. Data of 204 Shariah companies are collected from company website and Thomson one banker by Reuters for the year 2008. The descriptive analyses reveal that, some of the Shariah companies comply with the revised MCCG. However, there are still Shariah companies do not fully comply with the revised MCCG. Hence, the result suggests that companies and regulator bodies in regards to MCCG have to cooperate and play their roles in order to create transparent business environment and prudence information for public.

IT Applications for Professional Communications in Virtual
Teams: To Groove or Not?

Bhavik K. Pathak
Indiana University South Bend


Advances in information technology have removed the communication barriers
associated with the geographically dispersed professional workgroups. Increasingly, these geographically dispersed teams (GDTs), i.e. virtual teams, have started using popular Webbased IT applications including emails, instant messaging, blogs, and wikis. On the one hand, each of these Web-based applications may facilitate basic communication needs without any spatial or temporal barriers. On the other hand, they have differential impacts on other professional communication issues such as communication content delivery (i.e. synchronous/ asynchronous modes), transmission of various communication cues, coordination of meetings, and collaboration capacities. In this article, I analyze the role of these applications in facilitating professional communication in GDTs. I use 4C framework (content, cues,coordination, and collaboration) to evaluate these applications. Subsequently, I discuss the need of integrating various features of these technologies and providing comprehensive application for the professional communication needs of GDTs. I provide basic information about one such application: Microsoft Groove, and evaluate its effectiveness in terms of fulfilling the professional communication needs in GDTs.


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ISSN: 1813-0534