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- Management Dynamics : Journal of the Southern African Institute for Management Scientists
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- Volume 22, Issue 2, 2013
Management Dynamics : Journal of the Southern African Institute for Management Scientists - Volume 22, Issue 2, 2013
Volume 22, Issue 2, 2013
Source: Management Dynamics : Journal of the Southern African Institute for Management Scientists 22, pp 2 –15 (2013)More Less
The increasing degree of complexity challenges today's managers. The purpose of this study is to show how the Viable System Model (VSM) can assist managers in these circumstances. The contributions of the VSM are drawn from a literature review and a case study applying the model to a sugarcane production and supply system. The study highlights the appropriateness of the VSM in a managerial context, in that it facilitates the design or diagnosis of any system, and assists in complexity management by supporting local autonomy and the direct handling of issues. Moreover, the VSM considers multiple stakeholder groups, and pursues the establishment of a common corporate culture as well as adequate feedback mechanisms and communication channels. Although the VSM application in the case study did not include the handling of detected shortcomings, the study concludes by arguing for the significance of the VSM in the field of management science.
Source: Management Dynamics : Journal of the Southern African Institute for Management Scientists 22, pp 16 –28 (2013)More Less
This study focuses on the sustainable growth planning of firms based on cash flow constraints - a distinct variation on traditionally-published studies on sustainable growth that are based on income statement and statement of financial position variables. The traditional concept is useful for capital-intensive firms but less useful for working-capital-intensive firms, especially those with long working capital cycles. Such firms have to monitor cash from operating activities (CFO) rather rigorously. Considering sustainable growth from this cash flow angle is rare in the literature. The present study compares and builds on two of the few published examples: the self-financeable growth (SFG) rate proposed by Churchill and Mullins (2001), and the cash flow sustainable growth rate (CFSGR) proposed by Hamman (1996). The study demonstrates that by calculating a specific break-even growth point in the case of the CFSGR, a more accurate growth rate is estimated than with the SFG rate, which renders a more conservative approximation. The study expands the basic definition of CFSGR to make it useful when considering a range of typical real-world target variables. The ability to calculate a cash flow break-even point equips financial managers to optimise cash resources to the benefit of the firm when reviewing financing, investing, and operational activities.
Source: Management Dynamics : Journal of the Southern African Institute for Management Scientists 22, pp 29 –48 (2013)More Less
This study proposes major changes to the Burke and Litwin (1992) leadership, change, and performance model against the background of significant changes in the external environment and new developments in business management. Improvements include, first, a more logical structuring without being subject to a specific leadership paradigm - a limitation that caused distortions in the original model. Second, by incorporating business processes reengineering, the strategy pillar of the adapted model has been significantly rationalised and strengthened. Third, culture is expanded to a fully-fledged pillar in the model, while human capital is included due to its growing contribution to organisational effectiveness and performance. Fourth, by modelling external contextual factors surrounding the adapted model, the new model systematically explores the interaction between leadership and the external environment. Understanding the impact of these dynamic factors is crucial in preventing well-functioning organisations from being affected by global financial disasters. Last, the reconfigured model extends the original model by adding a thorough discussion of the outcomes of leadership - namely, performance and effectiveness at the organisational, team, and individual levels.