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This paper aims to look at how to understand and identify sources office politics and how to manage it successfully for the betterment of organizations.
Abstract
Purpose
This paper aims to look at how to understand and identify sources office politics and how to manage it successfully for the betterment of organizations.
Design/methodology/approach
This briefing is prepared by independent writers who add their own impartial comments and place the article in context.
Findings
Politics is present in all organizations only the degree of politics varies among them. What matters is how successfully this minefield is navigated to achieve goals and mission of organizations. Managers and organizations could adopt some successful personal and HR strategies to manage office politics effectively.
Practical implications
The paper suggests some leader-level personal strategies and organizational-level HR strategies to harness office politics for the benefit of people and organizations.
Originality/value
This paper helps managers to identify the presence and sources of politics in their organizations.
Details
Keywords
– Examines the weaknesses of many current performance appraisals and shows how to improve them.
Abstract
Purpose
Examines the weaknesses of many current performance appraisals and shows how to improve them.
Design/methodology/approach
Draws on examples from companies such as Cisco, Google and Infosys.
Findings
Shows that there are two main sets of reasons for the failure of performance management – system related and people related. System-related problems crop up while defining the performance goals or designing the appraisal system. People-related problems usually arise while discussing the results of appraisals.
Practical implications
Investigates the importance of the three key elements of performance appraisal – the appraiser, the appraisal period and the rating method.
Social implications
Shows how important performance appraisal can be in the modern business world where skilled and talented workers are at a premium.
Originality/value
Argues that present-day organizations need to develop an ongoing process to manage employee performance, make sure the right things are being measured, and that the feedback is carried out as constructively as possible.
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Keywords
Performance appraisal (PA) is an organizational practice whose ultimate goal is to improve employee performance. This goal can be achieved using two approaches: the administrative…
Abstract
Purpose
Performance appraisal (PA) is an organizational practice whose ultimate goal is to improve employee performance. This goal can be achieved using two approaches: the administrative approach, which emphasizes materialistic incentives and rewards excellent performers, and the developmental approach, which focuses on employee personal and professional development. The literature points out that organizations cannot utilize both approaches at the same time, but the reason for this is vague. Therefore, the research purpose is to bridge this gap by exploring the basic assumptions behind the administrative and developmental PA approaches as part of the hidden layers of organizational culture.
Design/methodology/approach
A qualitative document analysis (QDA) was used to analyze 124 Israeli organizations' PA forms and employee reports.
Findings
The organization's PA approaches were diagnosed as a first step in revealing the reason for the inability to use both approaches simultaneously. In the next step, it was revealed that organizational culture assumptions are the reason for the contradiction of the PA approaches. Eventually, McGregor's theory X is the basic assumption behind the administrative approach, and theory Y is the assumption behind the developmental approach. Since these two approaches contradict each other, it explains the difficulty of using both approaches simultaneously.
Originality/value
This study dives into the hidden levels of organizational culture and attempts to bridge a long-standing but still current research gap, as well as extend and refine organizational culture and performance appraisal theories.
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Stefano Elia, Gezim Hoxha and Lucia Piscitello
This study aims at investigating the effect of corporate social responsibility (CSR) and corporate social irresponsibility (CSI) on corporate financial performance (CFP) in firms…
Abstract
This study aims at investigating the effect of corporate social responsibility (CSR) and corporate social irresponsibility (CSI) on corporate financial performance (CFP) in firms headquartered in developed versus emerging countries. Drawing upon stakeholder and legitimacy perspectives, the authors argue that the CSR/CSI–CFP relationship differs depending on the home-countries’ level of economic development as this reflects their different sensitivity to sustainability. Indeed, as emerging economies are normally characterized by weaker regulations, they are likely to place lower pressures on companies for superior CSR practices. Therefore, the authors expect the effect of CSR on CFP to be more positive for firms headquartered in advanced than in emerging countries. At the same time, the authors propose a more negative relationship between CSI and CFP for firms headquartered in developed countries due to the higher overall sustainability expectations required to gain legitimacy. The empirical analyses, run on a sample of 1,971 publicly listed firms between 2010 and 2020 from developed and emerging economies, support the expectations, thus confirming that country-specific contextual factors do play a role in shaping both the positive and the negative impact of CSR and CSI on CFP, and that the reactions of stakeholders to responsible and irresponsible behavior are stronger when their sensitivity to sustainability is higher.
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Shantanu Shantaram Apte, Abhijit Vasant Chirputkar and Abhijeet Lele
Relative performance evaluation (RPE) is a widely practiced employee appraisal process in the services industry. In a global delivery model, teams are spread across different…
Abstract
Purpose
Relative performance evaluation (RPE) is a widely practiced employee appraisal process in the services industry. In a global delivery model, teams are spread across different geographical locations. The team members work on various tasks under the guidance of different managers and at times under more than one manager for performing the same task. Such complexities make RPE of the team members quite challenging. The paper proposes a methodical step-by-step approach to simplify the evaluation process without compromising on the rigour.
Design/methodology/approach
RPE has followed three different approaches. First is the traditional way, wherein evaluators had a common meeting to discuss and arrive at relative evaluation and ranking of members of the peer group employees. In the second, the number of evaluators and employees in a peer group were split in to 2 subgroups. The evaluators provided independent ratings and rankings. Simple mathematical tool then derived the combined ranking. In the third approach, each evaluator evaluated each employee in the peer group and provided the relative ranking for each employee. Again, mathematical tools provided the final ranking considering inputs from all evaluators. All the three evaluation approaches were analysed through an inter-rater agreement method.
Findings
All the three approaches for evaluation provided similar results giving confidence that less time-consuming methods could be adopted by evaluators without compromising on the rigour of the evaluation. The outcome of the exercise proved effective as the complaints reaching the ombudsmen reduced as compared to the earlier years. Considerable evaluation time was also saved. The study described in this paper is carried out in a non-unionized, Indian private sector services firm. Its effectiveness in other set ups is yet to be tested.
Research limitations/implications
The research is carried out in the Indian Engineering services firm operating in the Knowledge based sector. Though study results are encouraging, the adaptability of methodology across different sectors and geographies is yet to be tested. More broad based studies are needed to evaluate suitability across firms and regions.
Practical implications
Relative evaluation exercise is challenging for evaluators. Although openness in evaluation is desired, it also makes evaluators uncomfortable in appearing to be taking sides or being opposing a candidate's ranking. The proposed approach brings in anonymity to each evaluator without scarifying individual evaluation.
Social implications
The proposed methodology can be deployed across different services industries as the proposed methodology is business domain agnostic. It can be easily ported and tailored to align with an individual organization's evaluation philosophy. The suitability and effectiveness of the method can be studied under various types of firms like manufacturing, private, public, NGO, labour oriented, etc. As the proposed method reduces efforts, the stake holders can focus on understanding the relation between employee performance measurement, employee engagement, and long-term outcomes related to employee performance evaluation.
Originality/value
The proposed employee evaluation method leverages inter-rater reliability and agreement tool as a consensus approach to the relative performance ranking exercise. Such an approach to relative performance ranking is original as no prior studies with such an approach are found in the existing Literature.
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Keywords
Ahmad Yuosef Alodat, Zalailah Salleh, Hafiza Aishah Hashim and Farizah Sulong
This study aimed to investigate the effect of sustainability disclosure (SD) as a mediator for the relationship between corporate governance (CG) and the performance of firms…
Abstract
Purpose
This study aimed to investigate the effect of sustainability disclosure (SD) as a mediator for the relationship between corporate governance (CG) and the performance of firms listed on the Amman Stock Exchange (ASE).
Design/methodology/approach
The study analysed 405 reports of firms listed on the ASE from 2014 to 2018. The direct and indirect impact of governance mechanisms on the firms' performance was examined using STATA 15. A four-step procedure for testing mediation was used to determine the mediating role of SD.
Findings
The results demonstrated that the board and audit committees' effectiveness positively and significantly influences the firm's performance. Additionally, the results demonstrated that SD partially mediates the relationship between CG and the firm's performance.
Research limitations/implications
Research implications – This study supported the assumptions of agency, resource dependence and stakeholder theories as the basis to explain the relationship among board’s effectiveness, audit committee’s effectiveness, sustainability report and firm performance in developing economies. In addition, the results suggested that CG helps to enhance the firm's performance and sustainability reporting. Firms providing sustainable report are deemed more responsible and attract more returns to firms. Research limitations – The study only focused on reports from five years for non-financial firms listed on the ASE to test the assumed relationship between the variables.
Practical implications
This study contributed to the body of knowledge by examining the mediating role of SD between CG and firm performance. Investors, managers and regulators can obtain further insights, especially those seeking to improve a firm's performance in the emerging markets, through a sound CG system and extensive sustainability reporting.
Originality/value
This study focused on the direct and indirect impacts of CG and firm performance in an emerging and developing economy. The study used SD as the mediating variable in examining the indirect effect.
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Keywords
Anup Kumar Saha and Imran Khan
In the swiftly evolving business landscape, environmental, social and governance (ESG) considerations have gained exceptional prominence, as stakeholders increasingly emphasize…
Abstract
Purpose
In the swiftly evolving business landscape, environmental, social and governance (ESG) considerations have gained exceptional prominence, as stakeholders increasingly emphasize accountability and sustainability. This study aims to meticulously probe the intricate interplay between ESG factors, financial performance and the distinct corporate governance landscape that characterizes the Nordic region's crucible of proactive societal and environmental commitment.
Design/methodology/approach
The authors begin with a data set of 899 Nordic firms across Sweden, Norway, Denmark, Finland and Iceland. Using the Thomson Reuters database, they refine this data set by excluding non-regional headquarters and entities without ESG scores or year-long financial data. This resulted in a focused data set of 1,360 firm-years spanning a decade, forming the foundation for investigating the link between ESG factors and financial performance in Nordic firms.
Findings
Drawing upon empirical data, the authors systematically dissect the correlation between specified financial ratios and ESG scores on the bedrock of sustainability evaluation. The findings underscore a partially significant, yet robust relationship between ESG endeavors and financial performance metrics. Furthermore, the intricate interplay of corporate governance dimensions’ reveals intriguing correlations with financial indicators among the surveyed Nordic enterprises. However, the findings also reveal an intricate weave that underscores the ESG and financial performance nexus.
Research limitations/implications
This study addresses stakeholders’ theory and unique positions and contributes to the current discussion on sustainability reporting literature by providing empirical evidence of ESG influences on firm profitability through board characteristics in the specific context of the Nordic region. The sample for this study encompasses firms listed in Nordic countries; thus, the results may not be generalizable to unlisted firms and other countries or regions.
Practical implications
This study suggests that Nordic firms are advanced in reporting ESG in response to diverse stakeholder demands as part of their regular activities. This study provides valuable insights for diverse stakeholders including researchers and regulatory bodies.
Social implications
This study provides an understanding of stakeholders about the association of ESG and sustainability practices with firm profitability, which might lead to making the world a better place.
Originality/value
While illuminating the multifaceted ESG-financial performance nexus, this study reveals its intricate nature. This complexity accentuates the compelling need for further exploration to decode the exact outcomes and myriad factors contributing to the array of correlations observed. Through this comprehensive inquiry, this research advances the understanding and underscores the pivotal role of a focused investigation. This study seeks to harmonize ESG practices and financial performance seamlessly within the Nordic business realm.
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Keywords
Santi Gopal Maji and Prachi Lohia
This paper aims to investigate the impact of environmental, social and governance (ESG) performance on the firm performance of select Indian companies.
Abstract
Purpose
This paper aims to investigate the impact of environmental, social and governance (ESG) performance on the firm performance of select Indian companies.
Design/methodology/approach
The present paper is a cross-section study based on secondary data with a sample of 222 Indian firms. The ESG performance for Indian companies is based on the Credit Rating Information Services of India Limited (CRISIL) ESG score, and the financial data are extracted from the ACE Equity database. Both accounting- and market-based measures of firm performance are used. Ordinary least squares and simultaneous quantile regression models are used for empirical investigation.
Findings
The study reveals that Indian firms focus much more on governance and social parameters than environmental ones. The results indicate that ESG performance and its components are positively associated with firm performance. The results of quantile regression show that the impact of ESG is different at different locations of the conditional distribution of firm performance and the positive impact is more pronounced at upper quantiles.
Originality/value
To the best of the authors’ knowledge, this is the first study in India based on the CRISIL ESG score for analyzing the ESG and firm performance relationship. Furthermore, in the Indian context, a modest attempt is made to study the influence of ESG performance at different locations of the distribution of firm performance by using quantile regression.
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Keywords
Ni Wang, Haiying Pan, Yuze Feng and Sixuan Du
The purpose of this paper is to clarify the impact mechanisms and weighting factors of environmental, social and governance (ESG) practices on corporate value through bibliometric…
Abstract
Purpose
The purpose of this paper is to clarify the impact mechanisms and weighting factors of environmental, social and governance (ESG) practices on corporate value through bibliometric analysis and core interpretation of existing literature, further explore whether and under what conditions ESG practices contribute to the corporate value creation, and provide an outlook on future research directions.
Design/methodology/approach
Bibliometric method is used to analyze literature co-citation, burst detection and keyword co-occurrence, and literature review method is used to condense important ideas from the existing literature.
Findings
Through the review, analysis and summary of the existing literature, this paper finds that the perspectives of risk, information and strategy reflect the key pathways through which ESG practices play a role in avoiding harm and creating value for companies directly or indirectly. Macro, meso and micro factors moderate the direction and extent of the impact. Moreover, considering the relationship between ESG performance and ESG disclosure is key to understanding some contradictory findings.
Research limitations/implications
The search terms limit the articles considered, and therefore, the research framework may be incomplete. Moreover, this article is primarily aimed at the research field and lacks guidance at the practical level.
Practical implications
This paper helps the academic community to deepen its understanding of ESG, moving beyond the question of whether ESG is linked to corporate value to further understand why and under what conditions ESG practices create value for firms.
Social implications
This paper has great practical significance in motivating companies to actively participate in ESG practices.
Originality/value
The theoretical framework in this paper reveals the black box between enterprise ESG practices and value creation, and clarifies the research boundary of “the relationship between ESG practices and value creation,” contributing to the future research in this field.
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Keywords
Jintao Zhang, Stephen Chen and Hao Tan
This paper aims to examine the question, “How do firm-level, home-country and host-country environmental performance (EP) affect the outward foreign direct investment (OFDI) of…
Abstract
Purpose
This paper aims to examine the question, “How do firm-level, home-country and host-country environmental performance (EP) affect the outward foreign direct investment (OFDI) of Chinese multinational enterprises (MNEs)?”
Design/methodology/approach
The authors examine the relationships between EP and OFDI propensity and between EP and OFDI intensity using a sample of 359 Chinese firms in industries with a significant environmental footprint between 2009 and 2019 (2,002 firm-year observations) and a Heckman two-stage model.
Findings
This study shows that the propensity for OFDI by Chinese MNEs is significantly and positively related to the firm’s prior EP and the country-level EP of China. However, the amount of FDI invested is significantly and positively related to the firm’s prior EP and negatively related to the EP of the host country.
Research limitations/implications
The findings suggest that FDI in a country by an MNE is determined by a combination of firm-level EP, home-country EP and host-country EP. This study finds that the decision to undertake FDI (propensity) and the decision about how much to invest (intensity) are determined by different factors. The propensity for FDI is determined by the home-country EP and firm-level EP. However, the intensity of FDI is determined by a combination of the host country EP and firm-level EP. A limitation is that this study only examines MNEs in China, so the findings may not apply to other countries.
Originality/value
This paper shows that MNEs’ EP is positively related to the propensity and intensity of their OFDI decisions. However, this paper shows that the home-country and host-country EP may also play an important role in determining the propensity or intensity of OFDI.
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