Privatisation in Malaysia with special reference to changes in accounting system

This study constitutes an attempt to analyse the impact of privatisation upon an organisation. The literature on privatisation suggests that one aspect of the process is the creation of new organisational form. In particular, it is believed that the influence of accounting may increase with the introduction of a new commercial ethos. The study traces this change in a privatised Malaysian Telecommunication Company, using Laughlin's model (1991), and Greenwood and Hinnings'(1988) work on organisational tracks to provide a theoretical framework. The research was carried out as an explanatory case study, using the interpretative approach.Information was obtained from documents and from interviews, during the course of four visits to Malaysia,including a three-month attachment to the organisation.To the best of the researcher's knowledge, this is the first such study to be conducted on a public sector organisation in a developing country. The findings of the study may be summarized as follows: (1) Accounting emerged as visible in the organisation, with elements of the accounting system increasingly prevailing in the design archetype, with a new emphasis on planning,budgeting, responsibility accounting, accountability, and performance appraisal. (ii) At the same time, accounting was not able to penetrate into the first level, i.e. the values and beliefs, of the interpretative model, leaving the organisation in a 'schizoid' position (Greenwood and Hinnings, 1988) i.e. tension between the engineering and accounting systems. Colonization change has not taken place, as engineering is reemerging in the organisation because of inherited values, rapid technological advancement of the industry and increasing demand for telecommunication services. The assimilation of financial and commercial values appears to be limited, largely confined to fundamental planning. In addition to shedding light on the accounting and organisational consequences of privatisation, this research suggests that organisational change should be examined more from the process point of view, as it was found that there are interconnections or interrelations between the first, second and third phases of disturbance to the organisation. Moreover, accounting can no longer be studied in isolation, as it is influenced by the economic, organisational and political context. Finally,the study has assisted in the development of Laughlin's skeletal model

NAfMA as a value creation tool: Malaysian scenario / Suzana Sulaiman, Normah Omar and Ibrahim Kamal Abdul Rahman

The National Award for the Management Accounting (NAfMA) Best Practice 2004 is the first of its kind in the Asian region. For a start, NAfMA 2004 is open to Malaysian Multi-national and Public-Listed Companies (PLC). As Malaysia strives to become fully industrialized, it is believed that embracing best practices in management accounting will ensure that businesses are using the appropriate tools and techniques to achieve optimum business performance, resulting in value creation. Through the spirit of sharing best practices and benchmarking amongst with other organisations it will also enable companies in Malaysia to move towards world-class recognition. The NAfMA Best Practice is assessed on the basis of the management accounting best practice conceptual framework proposed by the International Federation of Accountants (IFAC). The participating companies were assessed on criteria, which include management accounting information, leadership, resource management, customer/market focus, partnership management, value creating, business results/performance measurement and corporate social responsibility. These criteria were finalized after numerous discussions between several parties involved. An independent panel of assessors made a second site visit to those short-listed companies. Recommendations resulting from a team of independent assessors were then put to the panel of judges before the recipients were decided

Managing strategic alignment using the balanced scorecard: A Malaysian company’s experience

The main purpose of this study is to explore the used of the Balanced Scorecard (BSC) as a strategic alignment tool in a large Malaysian organization using the qualitative case study approach.This study indicates that the BSC, through its performance indicators helps to partially improve the alignment of a company’s strategic objectives and strategies between the top management and the lower management levels.It also helps to align the various divisions in the organizations at the strategic level.However, full alignment is still a long way to achieve.This study highlighted the importance of awareness, common understanding and systematic alignment process in managing the alignment process and issue faces by the management in the process

Role of management accounting practices in creating values: a case study of Asia highway / Mohd Nur Hakim Bahaman and Ibrahim Kamal Abdul Rahman.

Management accounting plays crucial role in a company because management accounting information helps managers to make decision. One of the areas that need critical analysis to make decision is marketing area where customers’ satisfaction is essential. In order to sustain customer satisfaction, various efforts need to be done by a company so that values to customer can be delivered. This study examined the role played by management accounting practices in the biggest highway concessionaires in the country in delivering values to customers. Furthermore, continuous improvement and innovation initiatives implemented by the company in delivering the customer values are carefully examined to see the how management accounting practices being applied in those initiatives. The impact of the efforts conducted, financially and non-financially were examined too

Enhancing Accountability of Government-Linked Companies through Supply Chain Management Practices

Accountability has long been the major focus of government-linked companies (GLCs) as these firms are directly accountable to the taxpayers. While studies examining accountability of GLCs are widely available, very little evidence exist in investigating how these GLCs achieve accountability through supply chain management (SCM). Thus, the aim of the present research is to gain insights into how SCM practices create value to the firm, which in turn enhance accountability of the GLCs towards its ultimate stakeholders. A single case study approach was used whereby key research issues were mainly addressed through semi-structured interviews, observations and document reviews. Findings revealed that, consistent with the financial and social obligations of the GLC to its stakeholders, the firm was able to create value through supplier involvement, strategic supplier relationship and supplier development practices. The findings provide valuable input for similar companies to emulate these practices in order to achieve accountability through SCM practices

Balanced Scorecard and Strategic Alignment: A Malaysian Case

This study explores the uses of the Balanced Scorecard (BSC) as a strategic alignment tool in a large Malaysian organization. The aim is to investigate whether the BSC helps to improve the strategic alignment process in an organization. The authors apply qualitative case study approach. The main sources of data were from interviews and observations. The case company for this study is a large Malaysian Government-Link Company (GLC). The results show that the BSC through its measures helps to improve the process of aligning the company's strategic objectives and strategies between the top and the lower management levels partially. It reveals how the BSC helps to improve the alignment process by increasing managers' awareness and common understanding of alignment, focus managers' attention on the harmonization and streamlining managers' objectives towards achieving organizational goals. Keywords: Business Management, Performance Management, Balanced Scorecard, Strategic Alignment, Case Study. JEL Classifications: M1, M10, M12, M1

Strategy maps as a communication tool in balanced scorecard implementation: Study of a Malaysian utility company

This paper presents an exploratory and qualitative analysis of the Balanced Scorecard [BSC] implementation of a utility company in Malaysia.The use of strategy map as proposed under the BSC methodology in communicating company's strategic vision and mission from the corporate to the individual managerial level is explored.Although the BSC has been developed for almost 20 years, BSC implementation is still an issue.One of the underexplored issues is communication.It is critical for successful BSC implementation, but very little evidence is observed in the literature.Using qualitative research approach, this paper highlights a company experience in using the BSC strategy maps to facilitate strategy communication to managers

Balanced scorecard and strategic alignment: A Malaysian case

This study explores the uses of the balanced scorecard (BSC) as a strategic alignment tool in a large Malaysian organization.The aim is to investigate whether the BSC helps to improve the strategic alignment process in an organization. The authors apply qualitative case study approach. The main sources of data were from interviews and observations.The case company for this study is a large Malaysian Government-Link Company (GLC).The results show that the BSC through its measures helps to improve the process of aligning the company’s strategic objectives and strategies between the top and the lower management levels partially.It reveals how the BSC helps to improve the alignment process by increasing managers’ awareness and common understanding of alignment, focus managers’ attention on the harmonization and streamlining managers’ objectives towards achieving organizational goals

Implementation of Balanced Scorecard (BSC) in a Malaysian GLC: Perceptions of middle managers

This paper examines the perceptions of middle managers concerning several Balanced Scorecard (BSC) implementation issues using the case study approach. Data were collected using a questionnaire which was distributed to 280 middle managers in a selected organisation. The results of the study showed that middle managers perceived a moderate level of leadership and commitment from the top management towards the BSC implementation initiatives in the company. They also perceived that the BSC had some positive implications on their performance but they did not have a clear understanding of the workings. Middle managers also perceived that the company had good data processing and information technology to support the implementation process. However, clear guidelines on their individual performance evaluation process were not provided. These results indicate that the organisations derive benefits from the implementation of the BSC. Areas that can be improved to gain more benefits from implementing the system are highlighted

Strategic performance measurement system and organisation capabilities: Using levers of control framework

The purpose of this paper is to use the levers of control to examine the relationship between strategic performance measurement system and organisational capabilities. The main objective is to examine how strategic performance measurement system influences organisational capabilities. This study proposes that strategic performance measurement system is positively related to organisational capabilities. This paper reports the results of a pilot study of a mail survey. The response came from the top management of 80 Malaysian manufacturing and service firms. The results indicate that beliefs, boundary, diagnostic and interactive control system is positively and significantly correlated with overall organisational capabilities. As for the relationship of levers of control dimension and individual organisational capabilities, the result indicates an overall positive and significant relationship. However, the relationship between diagnostic use and entrepreneurship is not significant