Changing governance mechanisms and its impact on Australian Building Societies' performance

This paper examines the relation between the governance mechanism (ownership structure) and performance of Australian building societies. Financial performance measures, provided by financial ratios of the major mutual building societies in Australia are used to explore their behaviour under different governance structures in the 1980s and 1990s. The theoretical and empirical literature has suggested that mutual deposit-taking institutions should have lower profitability and higher operating expenses than their publicly listed counterparts. Accounting ratios are observed over time to investigate if governance change in mutual deposit-taking organizations accounted for any discernable differences in profitability and cost efficiency pre- and postdemutualisation.

Knowledge management and its links with quality

Knowledge management is a concept that continues to draw a lot of interest. It is the process of sharing knowledge within an organisation to achieve better performance. It can be utilised by all organisations, many of which may not even be aware they are using the concept nor of its links with Quality management. By implementing an effective KM system increased organisational performance and ultimately a competitive advantage can be obtained - both of which correlate to the philosophy of Quality. This paper raises issues about the relationship between the gathering, storing and sharing of knowledge and the philosophy of continuous improvement with the facilitation of teamwork. It concludes by attempting to encourage further debate and research into the area by suggesting that Knowledge Management may be well the 'catalyst' for the resurgence of Quality Management.

Managing whistleblowing : the significance of quality standards

This research studies the relationship between the existence of whistle blowing procedures and the level of importance placed on whistleblowing procedures, in an environment that claims to have a quality culture. Organisations certified with a basic quality standard, ISO 9000, were surveyed in three separate industries. Certified organisations were selection on the assumption of a basic knowledge and understanding of quality concepts as well as heightened chance of exiting whistleblowing procedures. A combination of quantitative and qualitative data analysis was undertaken. The investigation resulted in evidence that neither the existence of whistleblowing procedures, nor the level of importance placed on whistleblowing procedures, could be predicted by the presence of a quality culture. This investigation highlights the importance of whistleblowing procedures, and identifies further research opportunities on this contentious topic.

Priorities for Australian family businesses

This paper reports on a national survey which identified priorities that are considered important to the success of Australian family businesses. The FBA and KPMG Family Business Needs Survey 2005 targeted organisations of all sizes and industries across all states. Findings from the survey are extensive and provide noteworthy progress in understanding the issues deemed most important to family businesses, such as balancing family concerns and business interests, balancing short-term and long-term business decisions and increasing profits. As a result of this project, it has: provided an instrument that will allow research investigation on an annual basis; provided initial data sets that highlight key issues facing family business survival; and provided a substantial data set that can be utilised by a range of researchers and practitioners.

The employee share ownership plan: what value has it for Australia?

The Australian government is currently committed to the goal of increasing organisational participation in employee share ownership plans (ESOP) from 4% of all companies to 11% by 2009. The Nelson Report into ESOPs commissioned by the Honourable Brendan Nelson highlighted the lack of comprehensive information on the nature and extent of ESO plans in Australia. ” (Nelson 2000). This paper places the program in context by reviewing overseas experiences and considers the viewpoints of both employers and employees. The preliminary investigation concludes by highlighting the need for further thorough research before success for all types of businesses can be confidently predicted. ”

Accountability and board functionality: National Australia Bank's experience

The National Australia Bank’s (NAB) experience of corporate governance has been contrary to current standards of good corporate governance, accountability and risk management. Over the last few years NAB’s misadventures have brought it under intensive media scrutiny with the HomeSide losses and the investigation by the Securities and Exchange Commission in the USA for breaches of auditor independence. More recently the unauthorised trading by its foreign exchange dealers violated NABs risk management practices and the subsequent board crisis resulted in significant downgrading of the share price on the Australian Stock Exchange (ASX). This paper briefly reviews the international history of corporate accountability and its growth in Australia. The increasing shareholder and legislative pressure to improve sustainability, accountability and board functionality have driven these issues to the forefront of Governing Boards’ agendas worldwide. The board remains ultimately responsible for all actions of the company and this is highlighted by APRA’s recent release of the new governance standard APG510 for implementation by October 2006. The impact of NAB’s board dysfunction on its overall performance is compared with the other major banks in Australia. Cost efficiency ratios, share price and total shareholder return are used as measures of performance and profitability. It is clear, from NAB’s recent experience, as the worst performer of all the majors, with a 19.7% fall in net profit and a cost to income ratio of 57.4% in 2004, that the NAB board needs to improve its performance and accountability to meet a sustainable increase in profitability and higher return for investors.

An audit of leadership styles in E-commerce

Inevitably the adoption of any new technology brings about change but e-commerce is significantly different in that it completely shifts global business into a fast-paced electronic environment. The old notions of management are totally ineffective and a new style, focused on "leadership”, is required – but what style of leadership? The findings of an audit on leadership styles indicate that organisations that have successfully integrated e-commerce have exhibited a unique approach. Using a change management matrix, which determines the impact of change versus leadership style within an organisation, 182 Australian managers were audited and positioned within this matrix. It was found that within the most successful organisations, leaders had a distinctive style that facilitated the appropriate change and established a conducive e-commerce environment.

Future considerations for the training and development of Australian quality managers

Adequate, appropriate training of quality managers is essential to the development and implementation of effective quality management systems. This study reports on a survey of 235 Australian quality managers to determine their perceptions of their training and development needs, the extent to which these were being met, and their views on the future of their discipline. The study found that there was a general lack of systematization, most programs were short-term and delivered by a fragmented set of providers. Many managers had received no training in the past 5 years. While the respondents were generally satisfied with the training they had received, there was evidence that their insight into their own needs was imperfect. The respondents were divided between those who thought quality management would remain a discrete field and those who saw it being absorbed by other management systems. The challenges of developing an appropriate training and development regime in this environment are discussed.