Vijaya Murthy

The performance of intellectual capital: Mobilising relationships between intellectual and financial capital in a bank

Purpose - This paper aims to analyse the relationship between intellectual capital and financial capital using a case study. This makes it possible to discuss how intellectual capital is related to value creation with a degree of nuance that is absent from most statistical studies of relationships between human, organisational, relational and financial capital. Design/methodology/approach - The paper uses a case study of a firm that invests in intellectual capital in order to develop financial capital. It traces the relationship between intellectual capital elements and financial capital via interviews. This allows the development of a nuanced account of the performance of intellectual capital. This account questions the universality of the linear model typically found in statistical studies. The model makes it possible to show how items of intellectual capital not only interact but also compete. Findings - Relationships between intellectual capital and financial capital are challenging to specify because they are complementary rather than causal. Financial capital is not only an effect but also an important input because the development of intellectual capital takes place through the firms budgeting processes. Research limitations/implications - The findings suggest future development of accounts of the role and performance (strength) of intellectual capital be developed around imaginative, perhaps recursive and certainly dynamic, statistical models and/or more inclusive case studies of the various elements that influence the development and transformation of intellectual capital. Originality/value - The case study suggests that investments in intellectual capital happen in the context of many other investments. Bounded by the budgeting process, intellectual capital has no separate agenda and therefore, intellectual capital investments compete with other types of investments.

Human capital value creation practices of software and service exporter firms in India

This study explored the human capital (HC) value creation practices of the top seventeen software and service exporter firms in India. The study used HC disclosure attributes as a tool to the contents of the annual reports for the year 2003-04, to evaluate the type and amount of HC disclosed by the software firms. The study conducted semi-structured interviews with the Heads of Human Resources of fourteen software firms to obtain a greater understanding of the similarities between reporting and managed HC practices. The study identified most reported and least reported attributes of HC using content analysis and explained their reporting of value creation using interviews and Resource Based View (RBV). The findings suggest that the HC reporting practices were consistent with interview findings. The frequency of HC attributes reported followed the extent of the management’s perception of HC value creation to the firm.

Corporate Social Disclosure Practices of Top Software Firms in India

This study examines the corporate social disclosure practices of the top 16 software firms in India. The 2003–2004 annual reports were analysed using content analysis to examine the attributes reported relating to human resource, community development activities, products and services activities and environmental activities. The human resources category was the most frequently reported followed by community development activities and the environmental activities was the least reported. Most of the information was qualitative and was disclosed in the ‘other’ sections of the annual report. Some firms had separate sections for each category while many others disclosed their social practices in the introductory pages of the annual report. The results indicate that firms had different motives/reasons for reporting the different attributes. The shortage of skilled labour in the software sector seems to have shaped the corporate social disclosure (CSD) practices in the human resources category. Firms seem to engage in community development activities without expecting changes to their economic performance and the CSD of community activities seem to be shaped by the expectations of the society. The nature of global competition in the software sector seems to have shaped the CSD practices in the product and services contribution category.

Past, present and possible future developments in human capital accounting: A tribute to Jan‐Erik Gröjer

Purpose – The purpose of this paper is to pay tribute to several of the ideas of Jan‐Erik Grojer by reviewing and critiquing the field of Human Competence Accounting (HCA) since his Accounting, Auditing & Accountability Journal review article in 1998.Three research questions he posed in that article are now addressed in the current paper: What could be done, as envisaged in the commentary of Grojer and Johanson; What has been published in HCA research in the ten year period (1999‐2008); What more could/should be done in HCA as a research agenda.Design/methodology/approach – A literature based analysis and critique of HCA accounting articles published in the selected journals from 1999 to 2008 is employed. A purpose built coding and classification scheme is built around several categories for the purpose of analysing the HCA literature.Findings – The paper seeks to demonstrate the importance of Grojer and Johansons review and indicates that questions they raised and possible research directions have been ...

From product-centric to customer-centric services in a financial institution --- exploring the organizational challenges of the transition process

This research aims to contribute to an increased understanding of the strategic, cultural and other organizational challenges in a transition process from product-centric to customer-centric services. The paper describes an exploratory case study, conducted in a complex financial services organization in the context of their customer-facing services. The transition process was examined through the theoretical lens of Work System Theory (WST), following the argument made by previous researchers that service systems could be seen as work systems. This holistic theory enabled us to capture the three key phases of the transition process as work systems snapshots and through their evolving relationships show the manner in which the transitions occurred from one phase to another. This innovative approach provided the researchers with an in-depth insight into key issues related to organizational environment, strategy, customers, products and services, processes and activities, participants, and information and technologies – all relevant for each phase of the transition process. This research contributes to both information systems (IS) and service science research, bringing the key service research priority of “service infusion” to the attention of IS researchers.

Management control of work-life balance. A narrative study of an Australian financial institution

Purpose – This paper aims to understand how managers in an Australian financial institution coordinated different organisational actions for the management of the work health of employees, by adopting “work‐life balance” initiatives.Design/methodology/approach – The paper uses a narrative approach to analyse various internal and external documents and has also collected “self‐accounts” of employees.Findings – It was found that management used “work‐life balance” initiatives to manage both the physical and emotional health of employees. Managements main focus was on community volunteering, which was satisfying for employees, but also of significant benefit to the organisation in terms of marketing and branding. Thus, management was able to use these initiatives to motivate employees to work towards organisational goals.Originality/value – The paper contributes to the developing literature on human competence accounting by using employee “self‐accounts” to compare with organisational statements in relation...

Understanding a Transformation Process from Product-Centric to Customer-Centric Services in a Financial Institution - A Work System Perspective

This research aims to contribute to building an increased understanding of the strategic, business, cultural as well as other changes in an organisation’s transition process from product-centric to customer-centric services. This paper offers an exploratory case study conducted in a complex financial organisation in the context of their customer-facing services. The transition process is examined through a theoretical lens of the Work System Theory (WST), following the argument previously made by other researchers that service systems could be seen as work systems. This holistic theory enabled the researchers to capture the three key phases of the transition process as work systems snapshots and show the manner in which the transitions occurred from one phase to another. More importantly, WST enabled an in-depth study of the transition process through the complex and unfolding interplay of strategy, customers, products and services, processes, people, information and technology, tracing the key challenges and success factors.

Accounting for workplace flexibility: Internal communication in an Australian financial institution

Purpose - – The purpose of this paper is to consider the impact of social accounting at the micro level and examines the use of social reporting for constructive purposes through internal communication devices. It explores the discourse adopted by a large organisation in social accounting and reporting (workplace flexibility) through employee newsletters. In doing so the paper seeks to answer two research questions. First, what workplace flexibility practices are evident in the employee newsletters? Second, do management use discourse (including self-accounts) in newsletters for self-serving management control purposes or for the emancipatory purposes of benefiting employees? Design/methodology/approach - – Content and discourse analysis are used to examine “workplace flexibility” practices portrayed within the newsletters. This study explores the discourse adopted by a large Australian financial institution, in its social accounting disclosure in employee newsletters. It does so by examining the discourse adopted by the organisation in relation to one aspect of social accounting, that is, “workplace flexibility” in the employee newsletters over the period 2003-2007. Findings - – The paper finds the financial institution used its internal newsletters to influence employee attitude and behaviour, not as claimed for social “betterment” – justice, welfare, emancipation. The possibility of social accountings emancipatory potential was suppressed by those responsible for providing the accounts. The paper found that management used discourse (including self-accounts) in the newsletters for self-serving management control purposes and not as claimed for benefiting employees. Originality/value - – The idea that the organisation provides workplace flexibility for the sake of benefitting employees is questionable. The discourse found in the newsletters suggests that flexible work options instead appear to be aimed at garnering employee loyalty, with subsequent employer benefits of improved organisational performance. The organisation used the discourse on workplace flexibility to blur the boundaries of work and life and persuade the employees to work harder and longer, to continuously increase productivity. In doing so, the organisation camouflaged its own economic sustainability and profitability as workplace flexibility.