Using fund transfer pricing for comparing financial performance among business units

This study aims to demonstrate by a simplified analysis how fund transfer pricing can be used to measure financial performance taking into account the flow of resources in a bank with only two branches. The present study was developed in three sections. The first section provides information regarding fund transfer pricing and its characteristics. This is followed by a section with an analysis demonstrating how fund transfer pricing can assist top management to evaluate financial performance in a financial institutions with only two business units. Finally, the third section has the concluding remarks about the benefits and limitations of the use of fund transfer pricing. This study uses a simple version of fund transfer pricing system to address a further complex problem which is the exchange of services among business units in a decentralized organization. The analysis has shown how fund transfer pricing can be used to manage a bank, directing the efforts of branch managers.

Attributes of effective business teachers: perceptions of students enrolled in highly rated units

This study employs a widely used attributes of effective teachers framework to guide the coding of written feedback of students (n =169) enrolled in highly rated (top 25 per cent) business units at a large Australian University. This framework also underpins the theoretical interpretation of the data. By focusing on student feedback about effective business teachers, the aim of this study is to identify the most important attributes of these teachers from the perspective of satisfied student. The data is part of a larger survey of student evaluations of teaching and units. Findings from the analysis of feedback from highly-satisfied students reveals that the top five attributes of effective business teachers are related to classroom performance – creative and interesting, knowledgeable, effective communicator, sensitive and persistent, and enthusiastic. The findings provide insights to teachers, students and university administrators. A recommendation for future research is provided.

Aligning business and IT strategies in multi-business organizations

The alignment of business and information technology (IT) strategies is an important and enduring theoretical challenge for the information systems discipline, remaining a top issue in practice over the past 20 years. Multi-business organizations (MBOs) present a particular alignment challenge because business strategies are developed at the corporate level, within individual strategic business units and across the corporate investment cycle. In contrast, the extant literature implicitly assumes that IT strategy is aligned with a single business strategy at a single point in time. This paper draws on resource-based theory and path dependence to model functional, structural, and temporal IT strategic alignment in MBOs. Drawing on Makadok's theory of profit, we show how each form of alignment creates value through the three strategic drivers of competence, governance, and flexibility, respectively. We illustrate the model with examples from a case study on the Commonwealth Bank of Australia. We also explore the model's implications for existing IT alignment models, providing alternative theoretical explanations for how IT alignment creates value.

Analysis of cultural conflict in the development of web-enabled information systems

The advent of the World Wide Web (WWW) and the emergence of Internet commerce have given rise to the web as a medium of information exchange. In recent years, the phenomenon has affected the realm of transaction processing systems, as organizations are moving from designing web pages for marketing purposes, to web-based applications that support business-to-business (WEB) and business-to-consumer (B2C) interactions, integrated with databases and other back-end systems (Isakowitz, Bieber et al., 1998). Furthermore, web-enabled applications are increasingly being used to facilitate transactions even between various business units within a single enterprise. Examples of some of the more popular web-enabled applications in use today include airline reservation systems, internet banking, student enrollment systems in universities, and Human Resource (HR) and payroll systems. The prime motive behind the adoption of web-enabled applications are productivity gains due to reduced processing time, decrease in the usage of paper-based documentation and conventional modes of communication (such as letters, fax, or telephone), and improved quality of services to clients. Indeed, web-based solutions are commonly referred to as customer-centric (Li, 2000), which means that they provide user interfaces that do not necessitate high level of computer proficiency. Thus, organizations implement such systems to streamline routine transactions and gain strategic benefits in the process (Nambisan & Wang, 1999), though the latter are to be expected in the long-term. Notwithstanding the benefits of web technology adoption, the web has ample share of challenges for initiators and developers. Many of these challenges are associated with the unique nature of web-enabled applications. Research in the area of web-enabled information systems has revealed several differences with traditional applications. These differences exist with regards to system development methodology, stakeholder involvement, tasks, and technology (Nazareth, 1998). According to Fraternali (1999), web applications are commonly developed using an evolutionary prototyping approach, whereby the simplified version of the application is deployed as a pilot first, in order to gather user feedback. Thus, web-enabled applications typically undergo continuous refinement and evolution (Ginige, 1998; Nazareth, 1998; Siau, 1998; Standing, 2001). Prototype-based development also leads web-enabled information systems to have much shorter development life cycles, but which, unlike traditional applications, are regrettably developed in a rather adhoc fashion (Carstensen & Vogelsang, 2001). However, the principal difference between the two kinds of applications lies in the broad and diverse group of stakeholders associated with web-based information systems (Gordijn, Akkermans, et al., 2000; Russo, 2000; Earl & Khan, 2001; Carter, 2002; Hasselbring, 2002; Standing, 2002; Stevens & Timbrell, 2002). Stakeholders, or organizational members participating in a common business process (Freeman, 1984), vary in their computer competency, business knowledge, language and culture. This diversity is capable of causing conflict between different stakeholder groups with regards to the establishment of system requirements (Pouloudi & Whitley, 1997; Stevens & Timbrell, 2002). Since, web-based systems transcend organizational, departmental, and even national boundaries, the issue of culture poses a significant challenge to the web systems’ initiators and developers (Miles & Snow, 1992; Kumar & van Dissel, 1996; Pouloudi & Whitley, 1996; Li & Williams, 1999).

Differentiate or die or be 'stuck in the middle' and survive!

“The reality is that traditional (marketing) implementation approaches have failed…” (Dobni et al., 2001, p. 402) Nevertheless recent research still seeks to identify relationships between Porter’s marketing strategies, implementation and performance (Kumar et al. 1997; Teach and Schwartz, 2000). Although each study included the Porter’s strategy types none actually classified business units into ideal differentiators, ideal cost leaders and combination differentiation cost leaders to conduct “implementation-performance process” comparisons.

This study has made a contribution to the study of marketing implementation and marketing performance by separating and comparing strategies such as ideal differentiation, ideal cost leadership, and combination (differentiation/cost leadership) strategies with the “stuck in the middle” marketing strategy type.

A key implementation finding was the importance of paying high salaries to attract the best employees when implementing either a differentiation strategy or a combined (differentiation/ cost leadership) strategy. However for the other six implementation tools, the findings support Kelliher and Perrett (2001, p.421) whose findings “do not indicate a clear relationship between business strategy and the approach to HRM.”

A key performance finding was that differentiation is the best strategy in terms of marketing performance while cost leadership is the worst performing strategy. Both differentiation and the combination strategy (differentiation/cost leadership) outperformed cost leadership.

Recruitment and selection of Vice-Chancellors for Australian universities

This study addresses the gap in our understanding of the processes used to recruit and select Vice-Chancellors for Australian Universities. There are presently 39 recognised Universities in Australia and between them they provide the nation with the academically qualified leaders of the future. As such one would expect that not only would they be the vessels of our knowledge, but also that they would be managed and led in ways that were similar to those in use in the private sector. The changes that have taken place in the higher education system have meant that additional pressures have been placed upon the senior executive of each University. The transition from a binary system to the current unified system, the advent of the global community, increased technology and new management practices have created the need for University management to adopt recognised management and leadership practices. The Federal government has moved to reduce the dependence of the system upon recurrent funding and there has been an increase in managerialism within Universities. One outcome has been the need for the Chief Executive Officer (Vice-Chancellor) to develop additional management and leadership skills in order to cope with the changes occurring and the rate of change. In the United States, the selection criteria used to recruit Vice-Chancellors (or University Presidents) have changed to reflect the desire for candidates to have backgrounds in management and leadership. The role of the Vice-Chancellor is critical to the success of educational institutions that are now being managed as autonomous business units responsible for budget, growth, mergers as well as maintaining academic credibility. A literature review revealed that the work undertaken by David Sloper formed virtually our entire knowledge base of Vice-Chancellors in Australia. Sloper identified democratic and incumbency patterns, social characteristics, the legal basis for the role and what incumbents actually do. Thus we know quite a deal about the role and incumbents. However the same literature review showed that while this data existed, it did not extend to the processes that were used within the Higher Education system, to target, identify and select suitable candidates. Clearly there was also no examination as to the effectiveness of such processes or how they could be improved if necessary. Given the importance of Universities in Australia and their role in Higher Education, this lack of knowledge provided the basis for this study and the systematic review of all available data. The study also identified a paradox in addition to the lack of research on recruitment and selection practices in this unique microcosm. The paradox concerns the fact that many of the successful candidates do not come from a ‘business’ discipline as may be expected for a role considered to be the Chief Executive Officer of the institution. Yet in Australia, previous research indicated that the ‘rules’ for recruiting Vice-Chancellors have changed little and that traditionally candidates have come from the science disciplines (Sloper, 1994). While this in itself does not indicate that incumbents are lacking in fundamental management and leadership knowledge and expertise, an obvious question arises. Why are Australian Vice-Chancellors not drawn from faculties where this expertise resides or why are they not drawn from the business community? In order to further examine the processes in place and to a lesser extent the paradox, all available data was collected regarding the roles of Vice-Chancellors, the paths they have taken to the position as well as selection criteria, position outlines, job adverts and related material. This was thoroughly examined and then a brief questionnaire was forwarded to current incumbents and other involved stakeholders. Interviews were conducted to clarify specific issues and case studies prepared accordingly. Thus this qualitative study thoroughly researches the recruitment and selection practices in use, attempts to determine their effectiveness and addresses the paradox in order to provide a detailed framework that allows these elements to be explained.

Development of an evaluation approach for excellence in the Australian manufacturing industry

An approach to study best practice manufacturing with particular relevance to the Australian context. Sections include the development and analysis of results from a World Class Manufacturing survey, a literature review of best practice manufacturing from Japan/USA/UK, and case studies from its application at two major business units within a large Australian manufacturing company.

Explaining organizational investment in CRM point solutions

This paper asks why organisations invest in non-integrated CRM point solutions when many of the benefits of enterprise systems are claimed to be due to integration of processes and information. This paper identifies six factors that explain why organisations invest in CRM point solutions: reduced risk; lower cost; quick benefits realization; low integration ability, low interdependence of business units, and high business-unit differentiation. The evidence suggests that when interdependence between parts of an organization is low, possibly due to one unit producing a clearly differentiated product, the attractions of lower risk, lower cost, and/or faster access to the benefits are likely to induce organizations to adopt CRM point solutions. The contribution of this study is that it recognizes that, and explains why, it is not always optimal for organizations to adopt integrated CRM solutions.

Online self-and-peer-assessment for teamwork in architecture and business communications

There is considerable evidence of general student scepticism regarding the purpose of team assignments and high levels of concern for the fairness of assessment procedures when all members of a team receive the same grade. Some educators are similarly anxious about not only the validity of team grades, but also the need to assess ongoing team processes in addition to the final assignment product. This paper offers self-andpeer-assessment (SAPA) as a fair, valid and reliable method of producing information about ongoing team processes. The paper examines a pilot study investigating an online SAPA tool originally developed for a small class of architecture students. This tool is adapted for use for by students completing team assignment in two further architecture design units and for a very large class of 800 business communication students. The sample students studied on four campuses, as well as in off campus and offshore modes. The paper focuses on the initial stages of the study to demonstrate how researchers from very different backgrounds collaborated to adapt the online tool and implement a pilot study whilst maintaining both comparability of assessment and integrity of research design.

Cooperative inquiry in a business school : scope, process and dimensions

The presentation will describe a cooperative inquiry project being undertaken within the School of Management and Marketing, Faculty of Business and Law. This project involves both HRM and Management academics and was commenced in February 2008 with the broad aim of developing an ongoing teaching and learning dialogue within these discipline areas to enhance teaching and learning.
The project is also aimed at enabling individuals and unit teams to develop and pursue their own priorities in teaching and learning and align these with the goals and objectives of the Faculty and University.
In the presentation we will describe the scope, nature and methods of the inquiry and the outcomes of the project to date. One major outcome to date has been a comprehensive review of all the units within the HRM and Management majors. This review has, in turn, lead to the initiation of four further projects.
These include an activity to benchmark the School’s HRM and Management units against universities in Australia and overseas; a literature review entitled ‘Linking practice, research and the scholarship of teaching’; a project that seeks to integrate individual and institutional needs; and an action research project to capture the process of change within the Management and HRM team. These four projects will be described briefly in the presentation.

The effect of the introduction of teaching interventions and assessment strategies in first year management units

This Scholarship of Teaching research aimed to ultimately become a report and a series of recommendations on the teaching of first year Management units in universities. Many of the Australian universities benchmark themselves against the leaders in the Course Experience Questionnaires (CEQ) (Ramsden 1991) of graduating students in Australia. Most Australian universities have their own student satisfaction evaluation method. In this study the subject university uses the Student Evaluation of Teachers and Units (SETU) as their internal method of measuring the effectiveness of teaching on units on a cohort by cohort basis. This project, using one of the largest units in a Business and Law Faculty had specific measurable objectives; the results of the unit teams' interventions demonstrate that it is possible to increase student satisfaction during their transition year by as much as 11.5%. The ten recommendations ranging from changes to unit objectives, assessment methods and updated methods of marking, communication and student support, if acted upon, should have ongoing benefits for teaching and learning of first year management units.

Creating value in an introductory business IS and IT unit

Given the downturn in student enrolments in Information Systems (IS) and Information Technology (IT) units, and the poor performance of a first-year IS and IT common-core unit in a business school, a new unit was developed. Action and design science research methods were employed. The new unit has a unique focus on two key skills and on modern IT and information literacy. The first skill involves describing information systems, and the second, determining how to create business value with IT in specific business contexts. Modern IT tools like a Web-based productivity suite and professional networking services are introduced, together with advanced search techniques and services and an information quality evaluation framework. The evaluation of the utility and efficacy of the unit is based on the institutional standard student feedback survey and unsolicited feedback. The unit has achieved a significant improvement in evaluation results and feedback from students, as well as converting students who were previously averse to IS and IT to study further in these areas.

Environmental sustainability awareness and academic curriculum improvements: the case of a business and law faculty in an Australian university

Climate change, global warming, rising sea levels, ice cap melting, carbon taxes and trading schemes etc. are all major environmental issues that confront the modern world. Universities are now trying to ensure that their students graduate with an understanding of environmental sustainability regardless of their field of expertise.