Shared service centres and management control structure change

Abstract

Purpose-The paper aims to explore management control structure change related to the development of an SSC. Design/methodology/approach-The paper explores a transaction costs economics perspective (TCE-perspective) on management control structure change related to the development of an SSC. Particularly, it explores and challenges the scope of such a perspective both in terms of contents (i.e. the nature of management control related to the dimensions of transactions) and process (i.e. the way change is effectuated). It does so by theorizing as well as empirically investigating management control structure change through a case study at PCM (a Dutch newspaper publisher) Findings-Our theoretical analysis broadens existing frameworks of management control structures by particularly pointing to the possibility of including governance structures for internal transactions and exit threats (connected to a market mechanism) in the management control structure of an organization. However, our empirical investigations challenge the broader framework: the possibility of an exit threat was not explicitly considered by top management ('the designer' of management control). More profoundly, empirical investigations challenge the calculative approach of the change and show that the change in management control is to a large extent a drifting process. Research limitations/implications-An instrumental calculative approach towards SSCrelated management control change should be complemented with a relational perspective on such change, in order to further explore its drifting character. Practical implications-A transaction costs economics approach to change in management control might provide practitioners with insights into the efficiency of specific management control structures. Originality/value-The paper contributes to the extant knowledge by both exploring and challenging a TCE-perspective on SSC-related changes in management control.

Performance Predictive Analytics for Operations Management of Shared Services

“…The shared services center is the coordinator of the collaborative network and represents the common interest of all partner organizations (Niehaves & Krause, 2010). The responsibility Journal of International Business and Management (JIBM) https://rpajournals.com/jibm of a shared services center is to maintain and enhance the shared services and to develop cohesion among the partners of the share services (Minnaar 2013). The governance board of the shared services network exercises the charters of the board, acquires financial capital for the center, hires the general manager of the center, and monitors the operations of the shared services (Amiruddin, 2013).…”

A sourcing strategy for the middle offices in financial institutions

“…Shared services for sourcing the middle offices Many government and healthcare organizations have successfully adopted shared services as an alternative solution to outsourcing and co-sourcing (Amiruddin, 2013;Ask et al, 2008;Borman, 2010;Janssen & Joha, 2006;Kamal, 2012;Lindvall & Iveroth, 2011;McDowell, 2011;Minnaar, 2013;Niehaves & Krause, 2010;Ulbrich, 2010). The idea is to consolidate and standardize common business processes across multiple partner organizations using one or more shared service centers.…”

“…Back office operations such as IT services and human resource management are particularly suitable for shared services. Many success stories have been reported in the literature (Amiruddin, 2013;Borman, 2010;Lindvall & Iveroth, 2011;McDowell, 2011;Minnaar, 2013;Niehaves & Krause, 2010;Tsai & Yen, 2008;Ulbrich, 2010).…”

“…To implement the organization structure changes for each partner financial institution, business process reengineering (BPR) is generally used to re-examine the existing business processes and the relationships between involved operational units within the financial institution. Business process reengineering often results in a set of refined business processes and a new organizational structure (Minnaar, 2013;Wang & Wang, 2007). Figure 02 shows an example of a layered network organizational structure of a shared service center for the middle office.…”

“…The key component of this process is change management (Minnaar, 2013;Wang, 2007). Management teams at the partner financial institutions should ensure all changes are smoothly and successfully implemented to achieving the expected benefits.…”