Co-ordination of internal transactions at Hoogovens steel: struggling with the tension between performance-oriented business units and the concept of an integrated company

Helden, G.J. van; Meer-Kooistra, J. van der; Scapens, Robert W.

doi:10.1006/mare.2001.0166

Cited by 24 publications

(26 citation statements)

References 11 publications

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“…For example, the conventional approach to transfer pricing is to seek 'prices' which ensure that when BU managers pursue their BU's interests, they also automatically pursue the interests of the organisation as a whole. In Hoogovens Steel, however, quite simple transfer prices were used, and managers were expected to cope with the contradictions that can arise from the different signals from the diverse performance measures (see van Helden et al, 2001). A number of ways of managing paradoxes have been suggested in the organisational literature: acceptance, confrontation and transcendence (Lewis, 2000).…”

Section: Discussionmentioning

confidence: 98%

“…For example, despite extensive and protracted discussions about transfer pricing (see van Helden et al, 2001), simple cost-based transfer prices continued to be used. However, the co-ordination of internal transactions (including all the non-price characteristics of the transactions) is based on a system of consultations between the BU managers.…”

Section: Flexibility With Standardised Systemsmentioning

confidence: 98%

“…Nevertheless, those other papers do provide extended descriptions of the two cases-see van der Meer-Kooistra and Vosselman(2000) andvan Helden et al (2001).…”

mentioning

confidence: 95%

See 2 more Smart Citations

The governance of lateral relations between and within organisations

Meer-Kooistra

Scapens

2008

Management Accounting Research

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Section: Discussionmentioning

confidence: 98%

Section: Flexibility With Standardised Systemsmentioning

confidence: 98%

See 1 more Smart Citation

The governance of lateral relations between and within organisations

Meer-Kooistra

Scapens

2008

Management Accounting Research

Self Cite

102

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“…However, more recently it has been suggested that such optimal transfer prices may not be feasible, or even desirable. Instead, transfer prices may be used to facilitate communication and negotiation between the divisions themselves and between the HQ and the divisions (for example, see van Helden et al, 2001). As such, the paradox is not resolved, but it is managed.…”

Section: Tensions and Paradoxesmentioning

confidence: 95%

Managing the tensions in integrating global organisations: The role of performance management systems

Busco

Giovannoni

Scapens

2008

Management Accounting Research

Self Cite

136

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“…The internal supply chain of ACGC ( The internal supply chain includes the physical flow of goods and the associated management accounting information flows that are required for raw materials to be transformed into finished products within the overall company (Fisher, 1994;van Helden, van der Meer-Kooistra and Scapens, 2001;Christie, Joye and Watts, 2003; Kaplan and Norton, 2004;Simons, 2005). A major component of the accounting information flow in ACGC is that associated with transfer pricing between operational units (Fig.…”

Section: Internal Supply Chainmentioning

confidence: 99%

Alignment of performance metrics in a multi‐enterprise agribusiness

Bryceson

Slaughter²

2010

International Journal of Productivity and Performance Management

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Purpose -To examine the disconnect that can develop between corporate goals and those of individual intra-organisational business units arranged as an internal supply chain within a large vertically integrated agribusiness. To explore and discuss the development of a holistic performance metrics system that facilitates internal supply chain coordination and cohesion while allowing synergies to develop across the company.Design/methodology/approach -A case study approach involving a participative action research component was used to examine the disconnect between internal business unit (operational) goals and overall corporate (strategic) goals and to develop a conceptual performance assessment model addressing both operational and strategic contexts.Findings -The findings show that appropriate performance indicators and measures can be created that relate directly to logical operational outcomes thus encouraging a more tightly integrated internal supply chain, a stronger coherence among the components and a better aligned set of operational and corporate goals.Research limitations/implications -Only financial information and data obtained from a participative managerial decision making simulation were used to explore performance goal incongruence between operational and corporate managers, compared to the need for multiple contextual performance measurement metrics that the literature suggest provides a best practice system.Originality/value -The rapidly developing corporate agribusiness sector provides a unique operating environment in that these companies deal primarily in self regenerating assets such as livestock. Additionally we explore for the first time the development of performance metrics for 2 improving the coordinated integration of autonomous business units and suggest the concept of "Integrated Autonomy" as a way to describe the resulting situation.Keywords: Case study; Agribusiness; Internal Supply Chain; Performance Measurement; Goal Alignment, Integrated Autonomy. 3 BackgroundPerformance measurement is the process of developing measurable indicators that can be systematically tracked to assess progress made in achieving predetermined goals (GAO). Measures are a quantifiable metric of results (i.e. number of dollars saved, number of days saved in a business process, or recorded improvement in customer satisfaction) and have traditionally centred on the main performance areas of a company -financial, operational, or functional efficiency (Otley, 1999, Hongren, Foster andDatar, 1999). Such metrics have been used for many years in business (Govindarajan and Gupta, 1985;Scott and Tiessen, 1999;Abernethy, Bouwens and van Lent, 2003;Davis and Albright, 2004;Simons, 2005), and tend to be derived from operational accounting and information systems.From a supply chain perspective, given that such chains are recognised as multiagent complex systems which require a large number of performance measures to accurately characterise the system (Swaminithan et al., 1998, Beamon, 1999 functional metrics...

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Co-ordination of internal transactions at Hoogovens steel: struggling with the tension between performance-oriented business units and the concept of an integrated company

Cited by 24 publications

References 11 publications

The governance of lateral relations between and within organisations

The governance of lateral relations between and within organisations

Managing the tensions in integrating global organisations: The role of performance management systems

Alignment of performance metrics in a multi‐enterprise agribusiness

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