Business Dynamics in the 21st Century docx

BUSINESS DYNAMICS IN THE 21st CENTURY Edited by Chee-Heong Quah and Ong Lin Dar Business Dynamics in the 21st Century Edited by Chee-Heong Quah and Ong Lin Dar Published by InTech Janeza Trdine 9, 51000 Rijeka, Croatia Copyright © 2012 InTech All chapters are Open Access distributed under the Creative Commons Attribution 3.0 license, which allows users to download, copy and build upon published articles even for commercial purposes, as long as the author and publisher are properly credited, which ensures maximum dissemination and a wider impact of our publications. After this work has been published by InTech, authors have the right to republish it, in whole or part, in any publication of which they are the author, and to make other personal use of the work. Any republication, referencing or personal use of the work must explicitly identify the original source. As for readers, this license allows users to download, copy and build upon published chapters even for commercial purposes, as long as the author and publisher are properly credited, which ensures maximum dissemination and a wider impact of our publications. Notice Statements and opinions expressed in the chapters are these of the individual contributors and not necessarily those of the editors or publisher. No responsibility is accepted for the accuracy of information contained in the published chapters. The publisher assumes no responsibility for any damage or injury to persons or property arising out of the use of any materials, instructions, methods or ideas contained in the book. Publishing Process Manager Romina Skomersic Technical Editor Teodora Smiljanic Cover Designer InTech Design Team First published May, 2012 Printed in Croatia A free online edition of this book is available at www.intechopen.com Additional hard copies can be obtained from orders@intechopen.com Business Dynamics in the 21st Century, Edited by Chee-Heong Quah and Ong Lin Dar p. cm. ISBN 978-953-51-0628-9 Contents Preface IX Section 1 Performance and Quality as the Competitve Edge 1 Chapter 1 Improving Organizational Performance Through Reward Systems 3 Felipe Furtado, Gibeon Aquino and Silvio Meira Chapter 2 Capacity Assessments for Improving Corporate Efficiency – Case of Limassol Turkish Cooperative Bank in Northern Cyprus 29 Mustafa Ertanın and Okan Veli Şafaklı Chapter 3 Sustainability and Quality of Life Modeling the Complexity of Governance 45 Alain Lepage Chapter 4 Processes Management Guaranteeing Life-Cycle Quality of the Maintenance Service Agreement – A Study Regarding Outsourced Maintenance Services 65 Jarmo Heinonen, Mika Raassina and Nick Moss Chapter 5 Balanced Scorecard’s Interpretative Variability and Organizational Change 99 Geert J.M. Braam Chapter 6 Uncovering the Pre-Dispositional Roots of Job Satisfaction 113 Hisham Hamid Hawass Chapter 7 An Exploratory Study of Problems Facing Small and Medium Sized Contractors in the Free State Province of South Africa 143 Wellington Didibhuku Thwala and Godfrey Mofokeng VI Contents Section 2 Networks and Logistics as the Link to Success 155 Chapter 8 Managing Networks in Business Organizations 157 Dangis Gudelis Chapter 9 Supply Chain Management in International Logistics – RFID Applications 169 Miguel Merino and Perfecto Mariño Section 3 Money and Finance in Global Markets 193 Chapter 10 The Determinants of Corporate Debt Maturity Structure 195 Ewa J. Kleczyk Chapter 11 The Brazilian Stock Market – Dimension, Structure, and Main Features 221 Ademir Clemente, Marinês Taffarel and Robert A. Espejo Chapter 12 The Case for Monetary Union in East Asia – From Theory to Empirics 237 Chee-Heong Quah Preface In the aftermath of the 2008-09 global financial and economic crisis, businesses and firms today face a totally different landscape than their counterparts in the past decade or so. In addition to a global marketplace where competition is stiff, domestic and international businesses need to deal with the rise of China as the economic powerhouse, liberalizations of real and financial markets in the developing world including the transition economies, lingering fiscal problems amongst the high-income countries, the emergence of Brazil, Russia, India, and South Africa as global market players, and the surge in the virtual communications across the globe. Amidst this epoch of opportunity and turbulence, business firms need to equip themselves with new competencies that were never thought of before. For this reason, this book is timely as it introduces new insights into new problems in the aspects of performance and quality improvement, networking and logistics in the interconnected world, as well as developments in monetary and financial environment surrounding private enterprises today. Along the line of achieving greater performance, quality, and efficiency, the question of sustainability, quality of life, and satisfaction of employees is not neglected and will be addressed in the first few chapters. In addition, whilst discussions are generally targeted to firms of all sizes, a chapter is devoted to challenges faced by small and medium enterprises. Subsequently, we shall look at new business paradigms in networks and logistics management. Finally, the money and finance section will bring to readers the developments in corporate capital structure, the features of stock market in one of the fastest growing emerging economies, and the case for a regional monetary integration in the emerging East Asia. Readers shall find that reading this book ia an enlightening and pleasant experience, as the discussions are delivered in a clear, straightforward, and “no-frills” manner – suitable to academics and practitioners. If desired, the book can serve as an additional piece of reference for teaching and research in business and economics. Chee-Heong Quah and Ong Lin Dar Department of Business Strategy and Policy, Faculty of Business and Accountancy Building, University of Malaya, Malaysia [...]... Defining indicators based on the correct dimensions arising from the company's business model sees to it that the objectives of the project being undertaken are aligned to the organization's strategy Thus, the contract of result applied to the project team will be defined and measured so as to minimize personal interests interfering in the interests of the project According to Austin (1996), the main... the guidelines 22 Business Dynamics in the 21st Century 5 Validation of the guidelines The guidelines suggested in the previous section were validated by applying a questionnaire comprising the ten questions below:           Question 1: What is the profile of the respondent (managerial or technical), the geographical region, time in the market and the number of people involved in management... company 1 2 16 Business Dynamics in the 21st Century a poor performance in its end result, estimates of the effort and cost may be increased by a percentage of risk that may increase the price of the project This can make the company less competitive in the market and decrease the number of business deals contracted 4.4.3 Benefits of the adoption The main benefit of this guideline is the impartiality... identifies the guideline; Problem: establishes the problem that the guideline is meant to solve; Description: brief description contextualizing the field of application of the guideline; Benefits: some directions of the gains hoped for by the organization by adopting the guideline; Form of adoption: guidance for adopting the guideline in an organization 4.1 Understanding the motivational aspects of individuals... of the project are achieved Austin (1996) explains the two categories of the real intentions of making use of a system of measurement: the motivational and information ones He does not completely invalidate the benefit of the measures, but discusses extensively the question of whether the measure is to generate information or motivation In the first case, there is the chance of success In second, the. .. for the schedule and estimates of cost, established in the proposal for the sale of the project To the extent that these people are not rewarded for these dimensions, the tendency is that the proposals are not influenced by personal interests 4.4.4 Form of adoption The area responsible for allocating resources needs to understand the business domain and the technology into which the sale is placed in. .. identified by taking into account how the implementation will benefit the main directives of the business of the organization Thus, the correct definition of how the success of a project will be measured will see to it that those involved in its being carried out are aware of the project’s real goals and the criteria that will be evaluated in their results contracts 4.5.4 Form of adoption Defining the success... and refining business objectives, initiatives, metrics and indicators to be implemented 2.2 Dysfunction in a measurement system In organizations, despite the good intentions on creating effective systems of measurement, there is a phenomenon called dysfunction, which impairs the performance of companies 8 Business Dynamics in the 21st Century While the managers of a measurement system believe they are... giving visibility to the performance of the organization through its indicators, in fact they are actually diverting the attention and efforts of the teams to numbers that distort reality In the organizational context, dysfunction can be defined as the consequences of changing people's behavior that interfere with the intended results or lead in the opposite direction from the real intentions of the. .. (1977) The Economic theory, known as agentprincipal, is concerned with the fact that as an individual, the principal (the employer), can construct a compensation system (a contract), which motivates another individual, his/her agent (the employee) to act in the interest of the principal The agent-principal problem occurs when it involves some effort that cannot be monitored and measured by the principal . BUSINESS DYNAMICS IN THE 21st CENTURY Edited by Chee-Heong Quah and Ong Lin Dar Business Dynamics in the 21st Century Edited by Chee-Heong Quah and Ong Lin Dar. domestic and international businesses need to deal with the rise of China as the economic powerhouse, liberalizations of real and financial markets in the developing world including the transition. identifying, defining and refining business objectives, initiatives, metrics and indicators to be implemented. 2.2 Dysfunction in a measurement system In organizations, despite the good intentions