scholarly journals Organizing for Synergies

2010 ◽  
Vol 2 (4) ◽  
pp. 77-114 ◽  
Author(s):  
Wouter Dessein ◽  
Luis Garicano ◽  
Robert Gertner
Keyword(s):  
Organizational Structure ◽  
Local Adaptation ◽  
Functional Unit ◽  
Business Unit ◽  
Business Units ◽  
Incentive Conflict ◽  
A Company

Large companies are usually organized into business units, yet some activities are almost always centralized in a company-wide functional unit. We first show that organizations endogenously create an incentive conflict between functional managers (who desire excessive standardization) and business-unit managers (who desire excessive local adaptation). We then study how the allocation of authority and tasks to functional and business-unit managers interacts with this endogenous incentive conflict. Our analysis generates testable implications for the likely success of mergers and for the organizational structure and incentives inside multidivisional firms. (JEL D23, D86, G34, L22)

scholarly journals Why Does Headquarters Voluntarily Transfer its Bargaining Power to Business Units?

2019 ◽  
Vol 14 (2) ◽  
pp. 105-114
Author(s):  
Shin’ya Okuda ◽  
◽  
Takaya Kubota ◽  
Yoshimi Chujo ◽  
◽  
...  
Keyword(s):  
Organizational Structure ◽  
Bargaining Power ◽  
Incomplete Contracts ◽  
Cost Structure ◽  
Business Unit ◽  
Incomplete Contract ◽  
Power Cost ◽  
Business Units ◽  
Delegation Of Authority ◽  
Model Independence

The objective of our paper is to provide the reason why the headquarters voluntarily transfer its bargaining power to the business unit by stylizing an incomplete contract model. Our model shows that the equilibrium bargaining power selected by the headquarters is negatively correlated with the importance attached to the business unit’s operations. It means when incomplete contracts severely restrict an important business unit’s incentive to invest because of holdup problem, then the headquarters should necessarily provide the business unit with some degree of bargaining power. This result is consistent with the fact that the independence of a business unit (e.g., spin-offs) is a commonly observable practice. Building on our model, independence of the business unit can be interpreted as a consequence of a gradual delegation of authority by the headquarters. Our paper contributes to both of economics and management accounting literature through providing a model concerning to a decision of organizational structure. Keywords: bargaining power; cost structure; independence of business unit

A Way Forward

2016 ◽  
Vol 53 (1) ◽  
pp. 89-116 ◽  
Author(s):  
Richard D. Cotton ◽  
William B. Stevenson ◽  
Jean M. Bartunek
Keyword(s):  
Organizational Commitment ◽  
Ethical Leadership ◽  
Employee Perceptions ◽  
Future Research ◽  
Business Unit ◽  
Customer Contact ◽  
Business Units ◽  
Core Set ◽  
Perceptions Of Leaders ◽  
A Company

Corruption recovery is a critical but understudied organizational change. We gained unique access to a company that experienced multiple corruption incidents in the months prior to our survey rollout that garnered 2,300+ respondents (71%) across 19 business units. We explored how employee perceptions of leaders’ enactment of a core set of values and of CEO and business unit leaders’ ethical leadership were associated with organizational commitment as these leaders implemented change following corruption. Results indicated that ethical leadership and values enactment were associated with increased organizational commitment. Group-level membership in units implicated in corruption was associated with reduced commitment while membership in business units with increased customer contact was associated with increased commitment. Shared employee perspectives of the ethical leadership of business unit leaders, but not the CEO, were also associated with higher commitment. We also discuss future research, limitations, and implications for management.

scholarly journals A gestão de design na concepção de novos produtos: uma ferramenta de integração do processo de gestão e inovação

2011 ◽  
Vol 3 (3) ◽  
pp. 346-360
Author(s):  
Ana Claudia Machado Padilha ◽  
Filipe Freitas de Carvalho ◽  
Paloma De Mattos ◽  
Silvana Saionara Gollo
Keyword(s):  
Qualitative Research ◽  
Literature Review ◽  
Organizational Structure ◽  
Industrial Activity ◽  
Business Units ◽  
Innovative Products ◽  
Flow Of Information ◽  
A Company

The article aims at developing a framework for the management of design focused on maximizing the flow of information in the development of innovative products at competitive organizations. The methodology used in the study was based on the theory raised by means of literature review, outlining a qualitative research, exploratory in nature, through case study. The variables worked led the analysis, identification and classification of the process of developing products in four companies of different branches of industrial activity. The work started from the assumption that the design, incorporated in the organizational structure of a company through the management of design and integrated with other business units, strengthens the strategy of organizations.

PENERAPAN CORPORATE SOCIAL RESPONSIBILITY DALAM PENGELOLAAN WAKAF PRODUKTIF

2020 ◽  
Vol 3 (1) ◽  
Author(s):  
Masruchin Masruchin
Keyword(s):  
Environmental Impacts ◽  
Infrastructure Development ◽  
Religious Activities ◽  
Short Term ◽  
Local Society ◽  
Business Units ◽  
Corporate Social ◽  
The Impact ◽  
A Company ◽  
Social And Environmental Impacts

Corporate Social Responsibilityis a concept that a company has various forms of responsibility to all stakeholders including consumers, employees, shareholders, communities and the environment in all aspects of the company's operations that include economic, social, and environmental aspects. Therefore CSR is closely related to "sustainable development", in which a company, in carrying out its activities must base its decisions not only on the impact on economic aspects, such as the level of profits or dividends (profits), but also must consider the social and environmental impacts that arise from that decision, both for the short term and the longer term.Pondok Modern Darussalam Gontor (PMDG), in managing its Productive Waqf by establishing business units which mostly involve workers from the local society around PMDG. They are employed according to their skills. This is a form of implementing CSR in order to help advance and improve the welfare of the local society. The existence of these various business units is one of the educational facilities and as a form of CSR application which is actually intended to educate in the fields of independence, entrepreneurship, sincerity and sacrifice.PMDG involvement in social activities that are useful for the local society such as infrastructure development and village facilities, regeneration of students who are from around PMDG to be able to get higher education with funding from the PMDG, doing guidance to the local society through various religious activities, educational and economic activities is a form of PMDG responsibility to the local society environment and also to all stakeholders such as students, Ustadz, employees, so as to provide social and environmental impacts for the short term and the longer term.Keywords: Corporate Social Responsibilityandproductive waqf.

scholarly journals PENGARUH MENGIKUTI UNIT BISNIS TERHADAP PENINGKATAN KETERAMPILAN DAN MOTIVASI BERWIRAUSAHA PADA SANTRI

2020 ◽  
Vol 1 (01) ◽  
Author(s):  
Deni Anggrayani ◽  
Ari Susanto ◽  
Safiruddin Al Baqi
Keyword(s):  
Extracurricular Activities ◽  
Education System ◽  
Business Students ◽  
Boarding School ◽  
Holistic Education ◽  
Business Unit ◽  
Academic Skill ◽  
Religious Knowledge ◽  
Senior Student ◽  
Business Units

As education systems, Islamic boarding school has several advantages such as teaching religious knowledge, science and various extracurricular activities. Modern Islamic Boarding School of Darussalam GontorInodonesia is a boarding school that has a holistic education system, which is not only educate the academic skill but also educate students in developing entrepreneurship skills. This study aims to determine the effect of joining the business unit to the motivation and ability of entrepreneurship among students. This research used ethnography method with interviews and observations in business units in Darussalam Gontor. The results of this study indicate that Darussalam Gontoris a boarding school which implements 24-hour education system with various activities, such as praying togather, muajjah, learning in class, sports, mahkamatullughohand others. Differences of Darussalam Gontor with other boarding school is because Darussalam Gontor requires senior student to be responsible for business unit, such as Darussalam Press, Wisma Darussalam, La Tansa bookstore and other units. Result of this study shows that after joining the business unit, students become more motivated to develop their own business. Students also get enough knowledge to start a business or become an entrepreneur. The data showed that many alumni who have success become entrepreneurs. The entrepreneur character is heavily influenced by the role of alumni as a student of Darussalam Gontor. The alumni's businesses include production of songkok, ice cream, bookstore, travel agent, garment businessman and others. Keywords: Business unit, education system, entrepreneurship, Islamic boarding school, Islamic education

scholarly journals Approaches to implementing technologies of personnel management in thermal power enterprises

2018 ◽  
pp. 99-110 ◽  
Author(s):  
Vasyl Brych ◽  
Mykhailo Fedirko ◽  
Olena Borysiak
Keyword(s):  
Staff Development ◽  
Organizational Structure ◽  
Personnel Management ◽  
Thermal Power ◽  
Functional Model ◽  
Project Managers ◽  
Project Team ◽  
Team Formation ◽  
Business Units ◽  
The Subject

The article refers to innovative forms of management in thermal power enterprises. It is pointed out that the subject matter of the research paper is approaches of implementing technologies of personnel management in thermal power enterprises. The methodological framework consists of general research methods and also economic and statistical techniques, namely: systemic and structural anlsysis, statistical method of economic analysis, empirical analysis to determine trends of personnel management in thermal power enterprises; induction and deduction method to improve approaches to implementing technologies of personnel management in thermal power enterprises; abstract-logical analysis, economic and mathematical programming to provide the rationale for introducing process and project approaches to implementation of personnel management technologies. A number of trends relevant to staff resources in enterprises are highlighted. It is assumed that the low level of investment is due to the following factors: high depreciation costs of equipment and large consumption of natural resources, a rigid organizational structure, a lack of delegated decision-making and leadership, a top-down approach to making decisions, use of traditional technologies of staff motivation and development, harmful working conditions. The paper provides recommendations on approaches to organizational structure of personnel management. It is concluded that little interaction between business units and insufficient use of technologies for staff development stem from the linear functional model of organizational structure. Particular attention is given to the importance of introducing process approaches to personnel management through horizontal and vertical integration of activities. Project approaches are also considered to be useful for implementing technologies of personnel management in thermal power enterprises. The article suggests ways for project team formation (think tanks / business incubators) and further innovative development of thermal power enterprises. Special reference is made to implementing growth-oriented technologies for personnel management and project team formation in thermal power enterprises. Finally, a set of methods for recruiting project managers are developed.

Putting Private Equity Scorecard Approach (PESA™) to Work

2018 ◽  
Keyword(s):  
Theoretical Model ◽  
Organizational Structure ◽  
Private Equity ◽  
Information Environment ◽  
Modus Operandi ◽  
Equity Fund ◽  
Private Equity Fund ◽  
A Company

The theoretical model of Private Equity Scorecard Approach (PESA™), introduced an article in the Spring 2018 issue of The Journal of Private Equity (“Private Equity Scorecard Approach: Quality versus Myth”), develops a methodology to value a company based on its quantitative and qualitative indicators. As pointed out in the article, however, any model would only exist in theoretical boundaries, unless applied in practice. In this article, the author discusses the specific characteristics of the internal processes and organizational structure of a private equity fund that uses the PESA™ methodology in its modus operandi. The author provides practical examples of the fund’s approach to investments as well as the necessary information environment in which the fund operates.

AMG, Inc. & Forsythe Solutions: Lease vs. Buy Decisions

2017 ◽  
pp. 1-8
Author(s):  
Mark Jeffery ◽  
H. Nevin Ekici ◽  
Cassidy Shield ◽  
Mike Conley
Keyword(s):  
Information Technology ◽  
Financial Services ◽  
Investment Decision ◽  
Balance Sheet ◽  
Fortune 500 ◽  
Business Units ◽  
Useful Life ◽  
Correct Application ◽  
Time Frames ◽  
A Company

Examines the lease vs. buy decision for investments in technology. Addresses pivotal investment decision issues such as varying the length of the lease, the useful life of the equipment, and alignment with the company's overall financial strategy. The scenario is for a real financial services firm that has been disguised for confidentiality reasons. Presents an investment decision: should a company buy or lease technology with a relatively short useful life? The new controller at AMG, a Fortune 500 financial services firm, has been tasked with determining how to finance the acquisition of 7,542 new PCs to be rolled out over the next 12 months. This is a $6.7 million investment decision and the rollout schedule adds significant complexity to the solution. The controller must choose between buying or leasing the computers over 24- or 36-month time frames. Provides a framework for analyzing similar investment decisions. The key learning point is that leasing information technology can be cheaper than buying. This is contradictory to a car lease, which may be familiar from everyday experience. A new car has a potentially long useful life and can retain significant value after several years, hence, intuition is that buying should always be cheaper than leasing. Shows that this is not the case for information technology. Teaches the correct application of the mid-quarter convention within MACRS depreciation for technology, and the implications of operating vs. capital leases and off-balance-sheet financing. In the process, introduces the four tests for a capital lease. Finally, shows how creative analysis techniques can be used to simplify complex decisions. These techniques aid in arriving at a conclusion faster and with less effort.To illustrate the fundamentals of lease vs. buy decisions in technology and how they differ from the typical capital equipment lease vs. buy decision. Topics covered include MACRS depreciation and off-balance-sheet financing for a complex leasing scenario staggered in time across multiple business units.

scholarly journals Valuation of firms with multiple business units

2020 ◽  
Author(s):  
Stefan Dierkes ◽  
Ulrich Schäfer
Keyword(s):  
Firm Value ◽  
Large Scale ◽  
Simulation Analysis ◽  
Cash Flows ◽  
Driver Model ◽  
Business Unit ◽  
Growth Strategies ◽  
Business Units ◽  
The Cost ◽  
Constant Growth

Abstract Corporate valuation often relies on the assumption of a constant and homogenous growth rate. However, large firms frequently (re)balance their activities by diverting cash flows from some business units to fund investments in other units. We develop a value driver model of terminal value for a firm with two units. The model relaxes common assumptions and allows for cross-unit differences in the return on invested capital. We consider intra-unit and cross-unit investments and show their implications for firm value and the long-term development of key accounting variables. Our results help characterize business unit strategies that can be reconciled with popular firm strategies such as the constant payout and constant growth strategies. We find that popular valuation methods that assume both constant payout ratios and constant growth rates (e.g., Gordon and Shapiro, Manage Sci 3:102–110, 1956) constitute a restrictive special case of our model and should only be applied to firms with homogenous business units. We use a simulation analysis to compare our results with alternative valuation models and to illustrate the economic relevance of our findings. The simulation shows that an accurate depiction of business unit strategy is particularly useful if firms plan large-scale cross-unit investments into business units with high returns and if the cost of capital is low.

Management of Transpetro’s Corporate Social and Environmental Responsibility in the Midwest of Brazil

2010 ◽  
Author(s):  
Walderes Brito ◽  
Carlos Roberto Bortolon ◽  
Newton Camelo de Castro ◽  
Simone Rodrigues da Silva ◽  
Guilherme Machado Cardoso
Keyword(s):  
Social Responsibility ◽  
Environmental Responsibility ◽  
Daily Lives ◽  
Business Reporting ◽  
Business Units ◽  
Corporate Social ◽  
Social Management ◽  
The Relationship ◽  
A Company ◽  
Public Environment

Evidence of compliance with the corporate policy of social and environmental responsibility of a company is not always fully matched to the daily lives of each of its regional managers or business units. Consolidated information on business reporting often generalizes individual experiments and thus hides the lack of capacity of the company to meet the parameters of social management and environmental responsibility. This article records the experience of the Management of Land and Oil Terminals Transpetro in the Midwest to face the challenge of overcoming this trend by developing mechanisms to regionally monitor performance in various dimensions of environmental responsibility and the relationship with internal public, environment, communities, government and society, among other things. The work was initiated in 2008 with the creation of the Center for Environmental and Social Responsibility, made up of professionals from different sectors of management, whose first task was to make a diagnosis which would position Transpetro Midwestern regarding the fulfillment of general requirements of social responsibility corporately as well as those specific requirements of the gas sector and energy. Compared with the “Corporate Social Responsibility Indicators”, this diagnosis has provided an overview of environmental responsibility actions already undertaken in the management system, and has pointed to those areas that require greater commitment. This allows the business unit to demonstrate why Petrobras is considered a benchmark for social and environmental responsibility in Brazil and the world.

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