...2010-023X Factors Influencing Activity-Based Costing Success: A Research Framework Zhang Yi Fei and Che Ruhana Isa becoming more and more popular [3-7] ABC aims to provide accurate costing information to managers to allocate activity costs to products and services by applying cost drivers [8]. Academics who advocate ABC, such as, Cooper and Kaplan [9], and Swenson [10] argue that it provides more accurate cost data needed to make appropriate strategic decisions about product mix, sourcing, pricing, process improvement, and evaluation of business process performance. These claims have led many firms to adopt ABC systems [8]. The benefits of ABC and its positive impact on firm’s performance motivated a numerous studies which examined various aspects of ABC. Among such studies are McGowan [11] who assessed the integrity of ABC success, Innes and Mitchell [4, 12] and Yanren [13] who conducted research on factors affecting ABC adoption, and Shield [3], Shields and McEwen [14], Gosselin [15] and Baired et al.[16, 17]who concentrated on factors influencing ABC success especially at the implementation stage. However, there is mounting evidence that suggests most of firms are experiencing problems in implementing ABC and, in some extreme cases, ABC implementation is not successful [3], which later resulted in abandoning the ABC systems altogether [15]. Questions arise as to why ABC implementation is successful in certain companies and fails in others. Based on the contingency theory...
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...2010-023X Factors Influencing Activity-Based Costing Success: A Research Framework Zhang Yi Fei and Che Ruhana Isa becoming more and more popular [3-7] ABC aims to provide accurate costing information to managers to allocate activity costs to products and services by applying cost drivers [8]. Academics who advocate ABC, such as, Cooper and Kaplan [9], and Swenson [10] argue that it provides more accurate cost data needed to make appropriate strategic decisions about product mix, sourcing, pricing, process improvement, and evaluation of business process performance. These claims have led many firms to adopt ABC systems [8]. The benefits of ABC and its positive impact on firm’s performance motivated a numerous studies which examined various aspects of ABC. Among such studies are McGowan [11] who assessed the integrity of ABC success, Innes and Mitchell [4, 12] and Yanren [13] who conducted research on factors affecting ABC adoption, and Shield [3], Shields and McEwen [14], Gosselin [15] and Baired et al.[16, 17]who concentrated on factors influencing ABC success especially at the implementation stage. However, there is mounting evidence that suggests most of firms are experiencing problems in implementing ABC and, in some extreme cases, ABC implementation is not successful [3], which later resulted in abandoning the ABC systems altogether [15]. Questions arise as to why ABC implementation is successful in certain companies and fails in others. Based on the contingency theory...
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...Running head: STRATEGY OF ORGANIZATIONAL CULTURE The New HR Strategy Of Organizational Culture Donna Koravos SNHU STRATEGY OF ORGANIZATIONAL CULTURE 2 Organizational culture has become a very important business concept within today’s HR strategy. Focusing more on the satisfaction of employees has been a key factor in hiring and retaining top talent. By offering employees positive feedback, providing a positive working environment, giving them more autonomy in certain situations, and being more transparent with company goals and performance, has had a profound influence in today’s organizations. “Researchers found a relationship between organizational cultures and company performance, with respect to success indicators such as revenues, sales volume, market share, and stock prices.” Retrieved from https://new.edu/resources/organizational-culture--9. Three firms in which HR management has focused on organizational culture and has contributed positive effects amongst their employees are Google, Scripps Network and UPS. Although three very different companies, each one has been recognized as one of the Most Admired Companies by Fortune magazine. Since its start-up, Google has had a reputation of being a people oriented company. Their HR strategy is its emphasis on organizational culture and business objectives. By tying the two together, Google has strived and maintained its open culture attitude which has lead to the company’s success. “We strive to maintain...
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...Organizational Change Organizational culture is vitally important within the scope of effectively functioning organizations. Organizational culture is the basis of behavior and beliefs of the individuals within the organization. The effects of organizational culture range from minor to extreme on both the individuals of an organization as well as on the organization itself. The cultures adopted by an organization and its members can have a profound impact on the daily routines of employees, the professionalism of organizational members, and potentially on the customers who interact with the business and its people. By altering organizational culture it is possible to revolutionize a business and positively impact each employee and customer. The dynamics of organizational change also allow for the possibility of negatively impacting a company’s culture which could lead to its demise. In order to understand the ramifications of organizational change one must understand the basics of organizational culture. Organizational culture is how a company and its employee’s behave. It is often necessary to audit an organization’s performance, values, and overall actions to ensure they remain aligned to the company’s main objectives. Generally companies remain focused on one primary principle which is profit via financial performance. The relationship between organizational culture and financial performance is difficult to understand but essential. It is obvious that in order to influence...
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...Organizational Theory and Behavior Organizational Culture & Employee Productivity At most basic level a company’s culture reflects the image that the owner of said company wants the public to view the company as. Workers who genuinely enjoy going to [and/or being at] work are bound to be far more productive and management experience a much lower turnover rate than that of their less than satisfactory work experience counterparts. The previous statement is not only common sense but has been proven to simply be good business sense as well. That entire premise is the backbone behind the theory of organizational culture. In order for one to fully understand how or why one would option to apply the methods of organizational culture in their business one must first understand how the theory of organizational culture works. A corporation’s public image differs from view point to view point. At a company’s most basic level a company’s culture reflects the image that the owner of said company wants the public to view the company. Organizational culture is defines as a system of beliefs and/or mutual vision/thinking that are, not only, shared by members of an organization but new members are indoctrinated in as well. (Daft, 2009). However organizational culture is more than just ideas joted down for a business plan or transferred goals ona mission statement. Organizational culture acts like a central nervous system of a...
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...unless they are at the beginning of a sentence.The abstract is a one-paragraph summary of the most important elements of the paper. This is an example of what an abstract looks like. Unit 4 – Group Project What type of structure will be best suited to a multinational internet retailer? Why? Organizational structure uses leaders on one end, but at the other end are team-based (Nahavandi, 2012). Organizational structure has an effect on organizational action in two major ways; it lays the basis in which normal operating measures and schedules rest, and it decides which people can take part in which decision-making processes, and to what level do their visions form the organization’s actions. Managers have to realize that markets, supplies, investors, locations, partners, and competitors can be anyplace in the world (Reference for Business, n.d.). Successful managers should be aware of the similarity and differences through out national boundaries; to make use of the opportunities and deal with the possible downfalls. How would you recommend building a culture that was inclusive of diverse cultures and accommodates highly creative technical staff? A successful business in this culture requires a creative environment of inclusion where the staff feels appreciated and incorporated into a company’s mission, vision and business strategy at all levels (Lieberman, n.d.). When workers’ skills and familiarity are acknowledged, valued and used; they are more involved in contributing...
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...Select Strategy www.selectstrategy.com 1 877 HR ASSET 1 877 472 7738 Improving Performance by Breaking Down Organizational Silos Understanding Organizational Barriers Restructuring initiatives have become common rather than exceptional occurrences. Some are successful, others not. Once new organizational structures are in place, they typically have their limitations. Virtually every organizational chart or model, in medium to large sized companies, divides employees into business units and/or departments. This is necessary to focus skills and pool common interests and resources to achieve specific company objectives. There is however, a downside that is often not catered for – a silo effect which impacts performance. In this paper, the silo effect will be defined, the dangers presented by silos will be briefly outlined, and an approach and suggestions to reduce these silos will be discussed. The Silo Effect Defined Silos may be defined as groups of employees that tend to work as autonomous units within an organization. They show a reluctance to integrate their efforts with employees in other functions of the organization. The effect has the propensity to exist throughout a Company, or between subsidiaries within a wider corporation, resulting in division and fragmentation of work responsibilities within the organization. Departments and business units can fragment into even smaller silos based on strong personal bonds, and areas of commonality...
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...Organizational Culture in the Workplace Organizational Culture in the Workplace PSYCH-570/Organizational Psychology March 18, 2012 Organizational Culture in the Workplace Organizational culture is as important to the public sector as it is to the private sector in business organizations. In a fast changing environment and continuing insights into organizational effectiveness, organizations, are seriously rethinking what and how they can best delineate and accomplish their goals and objectives (Peters & Waterman, 1982). Peters and Waterman (1982) suggest when goals are elucidated; there is a necessity to pontificate the type of culture that is needed to accelerate the goals and objectives and to guarantee that implemented changes are successful. The intention of this paper is to analyze the effects of organizational culture on organizational development and change. To allow one to grasp the concept of organizational culture Team A will give the description of Southwest Airlines, including the organization’s philosophy, mission, vision, values, and structure, an analysis of the relationship between the design and Southwest Airlines and its organizational culture, and the effects of organizational culture on Southwest Airlines workforce will be reviewed. An evaluation of the effects of change within Southwest Airlines will also be discussed. Description of Southwest Airlines Southwest Airlines is an airline that provides many services in different destinations...
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...Discussion…………………………………………………………………….……7 Examining Apple Inc……………………………………………………….….…8 The Organizational Behavior (OB) of Apple Inc………………………….….....8 The Organizational Development (OD) of Apple Inc…………………….……..9 The Organizational Effectiveness (OE) of Apple Inc……………………………9 Effects of Conflict on the OB, OD, and OE of Apple Inc…………………...…..10 Benefits and Weaknesses of Motivation used by Apple Inc…………………..…11 Impact of Culture, Leadership Style and Motivational Style in the Firm………11 Recommendations………………………………………………………..………13 Conclusion…………………………………………………………………..……14 Bibliography…………………………………………………………………...…15 References………………………………………………………………...………17 THE IMPACT OF ORGANIZATIONAL BEHAVIOR ON ORGANIZATIONAL DEVELOPMENT AND EFFECTIVENESS Introduction Organizational behavior (OB) is the study of activity as well as the performance of an individual or as a group in an organization. It is concerned with examining human behavior in an environment of work and determining the impact of these human behaviors on the structure of job, communication, leadership and performance. It consists of two theories which show how firms view it, namely: internal perspective and external perspective. Internal perspective theory of organizational behavior embraces the idea of first understanding the personal values, feelings and thoughts of a person so as to apprehend the individual in a company environment. The conduct of an employee in an organization is primarily founded...
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...Organizational theory and behavior are a vital part of any organization and can be a critical area that determines an organizations success in any industry. If and how these concepts are uniquely applied, organizations can define many different areas of their organizational structure. The Starbucks Corporation has become a well-known globally successful company. In analyzing the application of the organizational behaviors of communication, culture, and decision making, we can determine how these concepts have made this corporation successful. Organizational Communication Communication in the Starbucks organization is exceptionally successful. In order to appear transparent as an organization, provide sound direction of communication, maintain solid channels of communication, and still the rumor-mill; Starbucks has taken immense strides in concentrating on this aspect of its organizational behavior. Although Starbucks goes to no great lengths to define or list their organizational structure (Hawks, Kembell, Kembell, Olsen, & Perry, 2002), Recent changes in the organization define the organization as a matrix structure (Shultz, 2008). These changes in the organization, done to improve the customer experience, helped define the communication directions used by the organization. George and Jones (2005), state that the matrix organizational structure is a very effective way to take full advantage of all communication channels. Whether the organization wishes to label the organizational...
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...Organizational Culture and Its Effect on Employees The organizational culture of a company can have a significant impact on the attitudes of employees. The culture of an organization is the foundation that sets the tone for all interactions with the company, including the day to day activities of its agent (the employee). The perceptions and attitudes of an employee are influenced by the tone set by the organization. It is this foundation upon which rests the success (or failure) of the company. When assessing the impact of an organization’s culture, one must look at the positive and negative impact culture has on the internal environment and, by extension, the employees of that organization. The culture of a company can have both positive and negative effects on the internal environment of the organization and appear to be interrelated. Generally speaking, if a corporate culture is positive, the internal and external environment will be positive. A positive culture promotes innovation, team work and personal accountability. The positive culture is not just in written form, it is implemented, even tangible. “An organization that is able to maintain a positive culture is likely to enjoy many benefits. When organization members identify with the culture, the work environment tends to be more enjoyable, which boosts morale. This leads to increased levels of teamwork, sharing of information, and openness to new ideas.” (Golnaz & Lees, 2001). A company with a positive...
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...Discuss organizational culture and its implications for performance Organizational culture is defined by the value systems, behaviors and policies of an organization. It in turn defines the corporate identity, distinguishes the exclusive services/products and is the positive force within the organization that drives successful results. For a company to be successful it needs a strong organization culture and leadership. Well defined internal process and strong organization culture provide a strong organization structure. Companies who are not able to develop and maintain strong cultures that align with the mission see little or no success in the long term. A few companies in the United States known for their strong corporate culture include Microsoft, GE, IBM, General Motors, and Boeing. Strong corporate cultures drive commitment, job satisfaction and a sense of belonging. These organizations have over the years developed repeatable processes and well defined training systems to help employees assimilate into their organizational culture and become informed of the value system quickly and easily in order to become fully committed and performing team members within defined timeframes. To ensure employees are reminded consistently of their corporate responsibilities some companies have defined mandatory certifications to be completed by employees as part of the performance review process. Studies show that organizational cultures have a definite and measurable effect...
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...Internet retailer? Why? Structures of a team base is consisted with organizational leaders that are one-end and junior employees on the other end. (Nahavandi 2012). Internet retailers are very close to approximate necessary conditions that has prefect increasing of information and product information and price transparency, internet retailing also provides low cost of collecting information that improves opportunities for price discrimination which is used to save the cost of operating. Multi-national internet retailers locates the importance and responsibility that relates between Organizational Structure. Multinational companies like smaller ones face more organizational challenges than companies that are operating in only one national market, smaller companies have to maintain functional operational units that also have to be fulfilled these functions in different ways. To make an organizational structure successful in the domestic market that can be used in the in the global world use much use the appropriate functions for all of the businesses that are suitable for the production structure for multi-national internet retailer because communication is the key information about the products and technology in a single chain of each level that consist the difference in behavior and other attributes. (Henry C. Lucas 2001). How would you recommend building a culture that was inclusive of diverse cultures and accommodates highly creative technical staff? In today’s management...
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...The Effect of Organizational Culture The organizational culture is very important to every person, especially to someone that works in a professional environment. Recognizing and acknowledging a firm’s organizational culture, its benefits and weaknesses before starting employment is one of the most important necessities. This helps a person to find out if they might be a good fit for the company and if that company will satisfy their personal values and beliefs. For me, as a future accountant in the professional public firm, some of the most important characteristics are ethical values and their practices within the company. I am very interested in learning how ethical values promoted by professional accountants’ impact organizational culture, how organizational culture affects accountants’ ethical judgments and how espoused organizational cultures influence public accounting firms. To analyze and look deeper into these issues, I evaluated and studied the following articles: Daniela, Ţogoe Greti, Mateş Dorel, and Mănescu Dragotoiu Mileva Valentina. Impact of Ethical Values Promoted by Professional Accountants on the Organizational Culture. Annals of the University Of Oradea, Economic Science Series 22.1 (2013): 1280-1285. Douglas, Patricia Casey, Ronald A. Davidson, and Bill N. Schwartz. The Effect of Organizational Culture and Ethical Orientation on Accountants' Ethical Judgments. Journal of Business Ethics 34.2 (2001): 101-121. Holmes, Scott, and Stephen Marsden...
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...research literature exploring the role that culture may play in the success of these ventures. Poor culture-fit has often been cited as one reason why M&A has not produced the outcomes organizations hoped for (Cartwright & Schoenberg, 2006). Cross-border M&A has the added challenges of having to deal with both national and organizational culture differences. In this chapter we review the literature on cultural integration in cross-border M&A and provide a framework designed to help manage the integration process throughout the M&A lifecycle. This framework presents culture assessment and integration as a crucial component to reducing poor culture-fit as a barrier to M&A success. Mergers and acquisitions (M&A) have become a central part of most corporate growth strategies, and an increasing portion of that M&A activity now spans national borders. Indeed, beyond a certain scale, one might say that all M&A is now cross-border M&A. For example, even a merger Advances in Global Leadership, Volume 6, 95–115 Copyright r 2011 by Emerald Group Publishing Limited All rights of reproduction in any form reserved ISSN: 1535-1203/doi:10.1108/S1535-1203(2011)0000006008 95 96 DANIEL R. DENISON ET AL. between two large American corporations such as HP and EDS requires an integration plan that affects operations in many countries. Furthermore, the success of the merger depends not only on the integration of operations at the center where the national culture is presumably the same, but also on the...
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