Profit sharing, technical efficiency change and finance constraints

This paper analyses the mechanisms through which profit-sharing schemes may induce debt constrained firms to improve technical efficiency over time to guarantee positive profits. This hypothesis is first formalised in a partial equilibrium framework and then is tested on a sample of Italian traditional and cooperative firms. Technical efficiency change indexes are computed by DEA. These are regressed on a measure of finance constraints to analyse their impact on firms’ efficiency growth. The results support the hypothesis that a restriction in the availability of financial resources can affect positively the growth in efficiency in firms with profit-sharing schemes.

School outcomes:sharing the responsibility between pupil and school

This paper uses a Data Envelopment Analysis based approach to decompose pupil under-attainment into that attributable to the school the pupil attends and that attributable to the pupil. The approach measures pupil attainment in terms of value added. Data on over 6700 A-level pupils from 122 English schools have been analysed. The results suggest that at current levels of school effectiveness a pupil's own application accounts for the major part of any under-attainment, though schools also have scope to improve their effectiveness.The approach also makes it possible to identify target attainment levels a pupil could be set and the extent to which the attainment of those targets necessitates an improvement in the effectiveness of the school the pupil attends and in the pupil's own efforts.

People, technology, processes and risk knowledge sharing

The present global economic crisis creates doubts about the good use of accumulated experience and knowledge in managing risk in financial services. Typically, risk management practice does not use knowledge management (KM) to improve and to develop new answers to the threats. A key reason is that it is not clear how to break down the “organizational silos” view of risk management (RM) that is commonly taken. As a result, there has been relatively little work on finding the relationships between RM and KM. We have been doing research for the last couple of years on the identification of relationships between these two disciplines. At ECKM 2007 we presented a general review of the literature(s) and some hypotheses for starting research on KM and its relationship to the perceived value of enterprise risk management. This article presents findings based on our preliminary analyses, concentrating on those factors affecting the perceived quality of risk knowledge sharing. These come from a questionnaire survey of RM employees in organisations in the financial services sector, which yielded 121 responses. We have included five explanatory variables for the perceived quality of risk knowledge sharing. These comprised two variables relating to people (organizational capacity for work coordination and perceived quality of communication among groups), one relating to process (perceived quality of risk control) and two related to technology (web channel functionality and RM information system functionality). Our findings so far are that four of these five variables have a significant positive association with the perceived quality of risk knowledge sharing: contrary to expectations, web channel functionality did not have a significant association. Indeed, in some of our exploratory regression studies its coefficient (although not significant) was negative. In stepwise regression, the variable organizational capacity for work coordination accounted for by far the largest part of the variation in the dependent variable perceived quality of risk knowledge sharing. The “people” variables thus appear to have the greatest influence on the perceived quality of risk knowledge sharing, even in a sector that relies heavily on technology and on quantitative approaches to decision making. We have also found similar results with the dependent variable perceived value of Enterprise Risk Management (ERM) implementation.

Approaches to sharing knowledge in group problem structuring

Problem-structuring techniques are an integral aspect of 'Soft-OR'. SSM, SAST, Strategic Choice, and JOURNEY Making, all depend for their success on a group developing a shared view of a problem through some form of explicit modelling. The negotiated problem structure becomes the basis for problem resolution. Implicit to this process is an assumption that members of the group share and build their knowledge about the problem domain. This paper explores the extent to which this assumption is reasonable. The research is based on detailed records from the use of JOURNEY Making, where it has used special purpose Group Support software to aid the group problem structuring. This software continuously tracks the contributions of each member of the group and thus the extent to which they appear to be 'connecting' and augmenting their own knowledge with that of other members of the group. Software records of problem resolution in real organisational settings are used to explore the sharing of knowledge among senior managers. These explorations suggest a typology of knowledge sharing. The implications of this typology for problem structuring and an agenda for future research are considered.

Profit sharing in a manufacturing plant in a developing country : communication and organisational dynamics

The adaptation of profit sharing creates a fundamental change in employee compensation by making a portion of total compensation directly dependent upon the total profits of the firm and the performance of the employee. The major goal of this study is to test for and measure the impact of the independent variable, a profit sharing plan implemented at Shahvand Industrial Company, upon communication behaviour, communication outcomes, and organisational outcomes as dependent variables. A quasi-experimental non-equivalent control group design with pre and posttest was the research design used to test the effects of profit sharing participation on permanent-part-time operative employees implemented by SIC. Several conclusions were reached as a result of the statistical analysis of the data collected in this study. Overall, few of the hypothesised effects of profit sharing participation appeared to have been realised according to the empirical results of this study. The finding that certain communication behaviours were more favourable for profit sharing participants than for non-participants support the general hypothesis of the integrated profit sharing model. The observed changes in communication behaviours indicate that information sharing and idea generation are important components of the profit sharing process. The results of this study did not reveal any changes in either communication or organisational outcomes. A significant finding of this study is that the implementation of profit sharing plans require a relatively long period of time. Patience is required to achieve high levels of success and management must make long-term commitment to profit sharing. Findings of this study should be interpreted with caution, taking into consideration that most of the previo.us researches on profit sharing have been conducted in Western European or American countries, while the current study was based on data collected from an organisation in a developing country. This implies that the findings reported in this thesis may not be comparable in certain respects to results derived from companies in major industrialised economies.

Social capital and tacit knowledge sharing in organisational projects in Malaysian ICT companies

An increasing number of organisational researchers have turned to social capital theory in an attempt to better understand the impetus for knowledge sharing at the individual and organisational level. This thesis extends that research by investigating the impact of social capital on knowledge sharing at the group-level in the organisational project context. The objective of the thesis is to investigate the importance of social capital in fostering tacit knowledge sharing among the team members of a project. The analytical focus is on the Nahapiet and Ghoshal framework of social capital but also includes elements of other scholars' work. In brief, social capital is defined as an asset that is embedded in the network of relationships possessed by an individual or social unit. It is argued that the main dimensions of social capital that are of relevance to knowledge sharing are structural, cognitive, and relational because these, among other things, foster the exchange and combination of knowledge and resources among the team members. Empirically, the study is based on the grounded theory method. Data were collected from five projects in large, medium, and small ICT companies in Malaysia. Underpinned by the constant comparative method, data were derived from 55 interviews, and observations. The data were analysed using open, axial, and selective coding. The analysis also involved counting frequency occurrence from the coding generated by grounded theory to find the important items and categories under social capital dimensions and knowledge sharing, and for further explaining sub-groups within the data. The analysis shows that the most important dimension for tacit knowledge sharing is structural capital. Most importantly, the findings also suggest that structural capital is a prerequisite of cognitive capital and relational capital at the group-level in an organisational project. It also found that in a project context, relational capital is hard to realise because it requires time and frequent interactions among the team members. The findings from quantitative analysis show that frequent meetings and interactions, relationship, positions, shared visions, shared objectives, and collaboration are among the factors that foster the sharing of tacit knowledge among the team members. In conclusion, the present study adds to the existing literature on social capital in two main ways. Firstly, it distinguishes the dimensions of social capital and identifies that structural capital is the most important dimension in social capital and it is a prerequisite of cognitive and relational capital in a project context. Secondly, it identifies the causal sequence in the dimension of social capital suggesting avenues for further theoretical and empirical work in this emerging area of inquiry.

Filling knowledge gaps:knowledge sharing across inter-firm boundaries and occupational communities

This paper explores the micro-level processes of interaction across organisational boundaries and occupational communities. Based on a retrospective processual analysis, this study shows that in filling knowledge gaps, organisations put in place a series of knowledge mechanisms, which lead them to socially interact with their alliance partners. Both the deployment of existing knowledge and the creation of new knowledge are based on processes of interaction, which derive from the interplay between alliance actors. It is suggested that through both social interaction and the use of boundary objects, individuals are able to communicate, engage in problem-solving activities and share their ideas to fill knowledge gaps.

Inherited labour hoarding, insiders and employment growth:panel data results : Poland, 1996-2002

Using panel data pertaining to large Polish (non-financial) firms this paper examines the determinants of employment change during the period 1996-2002. Paying particular attention to the asymmetry hypothesis we investigate the impact of own wages, outside wages, output growth, regional characteristics and sectoral affiliation on the evolution of employment. In keeping with the 'right to manage' model we find that employment dynamics are not affected negatively by alternative wages. Furthermore, in contrast to the early transition period, we find evidence that employment levels respond to positive sales growth (in all but state firms). The early literature, (e.g. Kollo, 1998) found that labour hoarding lowered employment elasticities in the presence of positive demand shocks. Our findings suggest that inherited labour hoarding may no longer be a factor. We argue that the present pattern of employment adjustment is better explained by the role of insiders. This tentative conclusion is hinged on the contrasting behaviour of state and privatised companies and the similar behaviour of privatised and new private companies. We conclude that lower responsiveness of employment to both positive and negative changes in revenue in state firms is consistent with the proposition that rent sharing by insiders is stronger in the state sector.

Ontology-based knowledge capture and sharing in enterprise organisations

Despite years of effort in building organisational taxonomies, the potential of ontologies to support knowledge management in complex technical domains is under-exploited. The authors of this chapter present an approach to using rich domain ontologies to support sense-making tasks associated with resolving mechanical issues. Using Semantic Web technologies, the authors have built a framework and a suite of tools which support the whole semantic knowledge lifecycle. These are presented by describing the process of issue resolution for a simulated investigation concerning failure of bicycle brakes. Foci of the work have included ensuring that semantic tasks fit in with users’ everyday tasks, to achieve user acceptability and support the flexibility required by communities of practice with differing local sub-domains, tasks, and terminology.