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1.
Calitatea ; 23(186):123-133, 2022.
Article in English | ProQuest Central | ID: covidwho-20243504

ABSTRACT

This study aimed to optimize the line managers performances in the human resources (HR) division in answering the role of the HR management function problem in Medan City Manufacturing Company. The novelty proposed is a concept of HR management called "Human Resources Professional Transformation". Specifically, this concept discussed the ability of HR division line managers to make adaptive changes to the company's business-oriented functional divisions with managerial competence, commitment, innovation capability, and readiness for changes towards work performance. The population of this research was the line manager of the HR division, totaling 185 respondents. The sampling technique used a probability sampling approach with simple random sampling through the slovin formula, totaling 126 respondents. The analytical tool used is structural equation software through the SmartPLS application program. The results showed that managerial competence, commitment, innovation capability had a positive and significant effect through the HR professional transformation on the performance of line managers in the HR division. Meanwhile, readiness for change has a positive and insignificant effect on the HR Professional Transformation. Readiness for change also has a positive and insignificant effect on the Line Managers Performances in the Human Resources Division through HR Professional Transformation. Based on the suitability test of the research model, it proved that the HR Professional Transformation can answer the problem of the role of the management function to improve the line managers performances in the HR division with managerial competence, commitment, innovation capability, and readiness for change of 0.907.

2.
Mathematical Methods in the Applied Sciences ; : 1, 2023.
Article in English | Academic Search Complete | ID: covidwho-20240241

ABSTRACT

The global system of supply chains has been dramatically disrupted over the last years due to the outbreak of the COVID‐19 pandemic. In these current challenging times, this paper proposes a methodological approach for managing dependence and uncertainty in dynamic industrial scenarios. A detailed study of epidemic effects is carried out according to an operational management‐based perspective. We proceed by analyzing connections among effects and risks potentially leading to significant supply chain disturbances through a multicriteria approach. Risks and effects are weighted by applying the Analytic Network Process (ANP). Weighted risks are then assumed as criteria for selecting the most suitable contingency strategy. To this aim, the Fuzzy Technique for Order of Preference by Similarity to Ideal Solution (FTOPSIS) is able to rank a set of strategies by addressing and quantifying uncertainty. A case study on the sector of the automotive industry is implemented to validate the proposed methodological approach. [ FROM AUTHOR] Copyright of Mathematical Methods in the Applied Sciences is the property of John Wiley & Sons, Inc. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full . (Copyright applies to all s.)

3.
International Journal of Management Research and Emerging Science ; 13(2), 2023.
Article in English | ProQuest Central | ID: covidwho-20240116

ABSTRACT

Building The research study is primarily focused on identifying the parameters of Performance Measurement System within the healthcare sectors of Pakistan. The main purpose is to identify the efficacy of different Performance Measurement Systems within Pakistan, and its impacts on performance of physicians. Considering the current performance and situation in healthcare sector of Pakistan, it has been analyzed that the country has come a long way towards progress, however there is still a major lacking of proper standards and guidelines which must be followed in all the healthcare institutions. The problem statement emphasizes over the need of PMS in the healthcare institutions, with the help of which the improvements and efficacy in performance of the healthcare professionals can be determined. The research objective designed for this study is identify the impact of Performance Measurement Systems on the improvisations in current practices, on patient satisfaction and recovery, changes in patterns of mortality rates and budgetary control within the country for healthcare sectors. In order to conduct this research study, the type of research method which has been mainly opted is qualitative analysis involving the write up of a Systematic Literature Review. This review has been designed on the basis of PRISMA method, and proper skimming of research articles have been performed accordingly. 22 articles have been taken for further investigation, published after the year of 2010. The indicators which have been focused on in this study include Patient Satisfaction, Mortality, Survival rates and Cost Allocation to healthcare sectors of the country. Based on the findings of number of research articles, it has been identified that Patient Satisfaction and Cost Allocation have not been improved via Performance Management System. However, during the COVID-19 pandemic, the mortality and survival rates in the public and private sectors of the country were controlled due to constant supervision by governmental agencies and the use of an effective and efficient Performance Measurement method for staff members in the healthcare industry.

4.
Studies in Business and Economics ; 18(1):342-366, 2023.
Article in English | Web of Science | ID: covidwho-20236183

ABSTRACT

Performance management, as a systematic and continuous process of planning, measuring and improving performance, is an important endeavor for any organization, regardless of being private or public. To understand the current state of research on performance management, a comprehensive bibliometric study was conducted. This paper aims to provide a co-occurrence analysis to identify and explore clusters, prevailing and emerging themes, and future research directions. For this purpose data was collected from the WoS database and processed with VOSviewer and Microsoft Excel. The paper contains visual representations of clusters, keywords and their relationships, as well as an analysis of the novelty of the concepts. Based on the average published year (APY), the hottest keywords identified are Covid-19 (APY: 2021), followed by Industry 4.0 (APY: 2020.17), together with other 4IR tools (big data analytics, big data, machine learning, artificial intelligence, cloud, Iot, etc.). Resulting from the analysis of concepts with APY after 2017, in terms of their representativeness (occurrence), links, and total link strengths (TLS) with other items from the map, three concepts significantly emerged: framework (Cluster 1);public sector (Cluster 3);sustainability (Cluster 4). Based on the overall findings, new research directions were proposed.

5.
Sustainability ; 15(7):5952, 2023.
Article in English | ProQuest Central | ID: covidwho-2293012

ABSTRACT

With the increasing prevalence of remote work, understanding how it impacts employee perception, psychological safety, and job performance is critical for organisations. This study aims to investigate the relationships among these variables using a cross-sectional quantitative design and a questionnaire consisting of three scales: the Worktango employee sentiment around remote work survey, the Worktango psychological health and safety survey, and Goodman and Svyantek's performance scale. Our sample included 857 participants, both managers and non-managers, from a large insurance company. Our first two hypotheses were confirmed using non-parametric Kruskal–Wallis tests: employee sentiment around remote work as part of hybrid work is more favourable in non-sales fields and among employees who actually work remotely more often. Moreover, we found that psychological safety moderates the relationship between employee sentiment around remote work and work performance. Specifically, we observed that the positive relationship between employee sentiment around remote work and work performance is stronger when psychological safety is high. Overall, our findings contribute to the understanding of how remote work is perceived by employees and its relationship and impact on their psychological safety and job performance. These insights can help organisations develop effective policies and practices for remote work that support their employees' well-being and performance.

6.
Ingenierie des Systemes d'Information ; 27(2):205-211, 2022.
Article in French | ProQuest Central | ID: covidwho-2305056

ABSTRACT

The main purpose of our study is to form a demonstration model of the main processes for introducing digital technologies into the human resources management system for engineering enterprises. Digital transformations are associated with management changes, which are based on the technologies of the Internet of Things, artificial intelligence, blockchain, machine learning, Industry 4.0, Big Data in all spheres of public life. Investing in human capital has always been considered a productive investment. The digital economy has increased the urgency of increasing labor productivity through the transformation of human governance mechanisms. The main and key processes of the introduction of digital technologies in the human resources management system of the engineering enterprise were considered. The digitalization of society has radically changed people's lives and opened up new opportunities in the field of human resources management. The digital transformation of the human resources system affects all types of businesses, from large corporations to small micro-firms. As a result, the key stages and processes of implementation of digital technologies in the human resources management system of the enterprise were presented. The research methodology consisted of the application of modeling and graphical display methods.

7.
Asia Pacific Journal of Human Resources ; 2023.
Article in English | Scopus | ID: covidwho-2303670

ABSTRACT

The shortcomings of traditional performance management practices (PMS) are widely acknowledged. There is growing interest in ‘New Performance Management', suggesting a shift from an evaluative to a developmental focus. In Australia, little is known about the current utilisation of both ‘old' and ‘new' practices. Using survey data from Australian Human Resources Institute (AHRI) members we examine the incidence, coverage and perceived effectiveness of ‘traditional', ‘transitional' and ‘new' practices in Australian organisations. Further, since data were gathered during the COVID-19 pandemic, we examine the reported effects of pandemic-related disruptions on practice intensity. Although descriptive results suggest that both workforce size and sector may be associated with practice incidence, regression results indicate that sectoral effects are non-significant, and size matters only in relation to traditional practice use. However, our regression results indicate that COVID-19's impact is significantly related to all three practice categories. Furthermore, overall PMS effectiveness is not rated highly. © 2023 The Authors. Asia Pacific Journal of Human Resources published by John Wiley & Sons Australia, Ltd on behalf of Australian Human Resources Institute (AHRI).

8.
Sustainability ; 15(8):6334, 2023.
Article in English | ProQuest Central | ID: covidwho-2300805

ABSTRACT

This article confronts telework issues by analyzing how certain factors (motivation, dependence on coordination, self-organizing abilities and stress) impact job performance, as well as some of their interrelations. The research has been carried out with 219 Romanian employees. With the help of Confirmatory Factor Analysis and Structural Equations Modeling, the model led to the following conclusions: employee motivation has a significant positive impact on performance;employees' dependence on coordination has a significant negative impact on performance;employees' dependence on coordination has a moderately intense but significant positive correlation with the level of stress perceived during teleworking;and employees' ability to self-organize their activity is strongly and significantly linked to the level of motivation perceived. The hypothesis that perceived stress has a significant negative impact on performance has not been confirmed. These results add to the specialized literature on telework and can be the basis for future developments of managerial teleworking strategies. The implications are particularly valuable in the context of Corporate Social Responsibility considering the impact of telework on employees, organizations, and society in general.

9.
International Journal of Quality and Reliability Management ; 2023.
Article in English | Scopus | ID: covidwho-2294876

ABSTRACT

Purpose: Amid the outbreak of coronavirus disease 2019 (COVID-19), supply chains have faltered. This has influenced operational and financial performance and lead to uncertainty in supply and distribution. Therefore, systems measuring supply chain risk and disruption management performance have gained interest. This study explores barriers to supply chain performance measurement during disruptions such as COVID-19. Design/methodology/approach: Based on a survey and literature review, the authors formalise the barriers and rank them using the Decision-Making Trial and Evaluation Laboratory (DEMATEL) fuzzy Višekriterijumsko kompromisno rangiranje (VIKOR) methodology. A total of 14 experts in 11 countries were surveyed. Performance measurement is based on a balanced scorecard. Findings: Fifteen barriers are identified. Based on DEMATEL analysis, the cause–effect relationships among the four scorecard aspects are explored. The customer axis is revealed as the cause, while the financial, internal business and learning/development are identified as the effect of the supply chain performance measurement. Fuzzy VIKOR calculations show that uncertainty of investment, disrupted cash flows and the bullwhip effect are the most critical barriers to measure supply chain performance during outbreaks such as the COVID-19 pandemic. Research limitations/implications: The study identifies and ranks general barriers;additional research is required to differentiate barriers in specific industrial sectors. Practical implications: The findings may help develop proactive, resilient supply chain performance strategies to overcome disruptions. Social implications: Policy-makers and decision-makers in industrial and service firms can explore these findings to inform strategies for robust supply chains that can resist disruption in risky environments. Originality/value: This research addresses a knowledge gap in barriers to measure supply chain performance in post-pandemic areas. It is unclear how far firms will measure supply chain performance in terms of learning from disruption patterns, managing financial and customer demand processes in light of COVID-19. This study contributes by explaining the influences among the barriers and exploring them, offering insights from multiple stakeholders. © 2023, Emerald Publishing Limited.

10.
HighTech and Innovation Journal ; 4(1):37-54, 2023.
Article in English | Scopus | ID: covidwho-2277560

ABSTRACT

The human resources department, as a dynamic mechanism in the hotel business, is a supporter and a manager who manages the corporation to grow by planning, supervising, and assuring the expected performance leads to desirable outcomes. The situation of spread of the COVID-19 virus has resulted in businesses and labor departments having to adapt to survive by upgrading existing knowledge and adding new skills. Therefore, this research aims to describe components and models of necessary skills development for performance affecting dynamic capabilities and performance in a new normal era for human resources managers of five-star hotels in Phuket Province, which are crucial components in an increased corporation's sustainability and performance in terms of personnel efficiency, assets, funds, and information. This research is quantitative, and research data was collected from a total of 384 human resource managers of five-star hotels. There was a mutual discussion of factor analysis and structural equation results with three human resources managers who have been successful for not less than seven years in their work. The components consisted of systematic consideration through the following causes: necessary skills;professional skills, work skills, and emotional skills, mediator variables;dynamic capabilities, and organizational performance. This research also discussed five guidelines for developing the necessary skills for performance. As various factors have affected the performance in the new normal era, the human resources executives of five-star hotels in Phuket province should apply them and consider them together with their business plans for setting the strategic plan of organizational management, management, administrative, and human resources development. © Authors retain all copyrights.

11.
Journal of Personnel Psychology ; 2023.
Article in English | Scopus | ID: covidwho-2271975

ABSTRACT

Debate over performance management (PM) is at an all-time high. However, little is known about PM and feedback when employees work from home. In this qualitative study, we interview 45 human resources (HR) managers to clarify how PM practices in organizations may have transformed during the COVID-19 pandemic and accompanying teleworking measures. Based on the interviews, organizations were categorized according to their pre-COVID-19 PM approach (i.e., formal, informal, both). HR managers of organizations that applied both formal and informal PM practices indicated that they felt they could adapt to the rapidly changing environment most easily. Moreover, these organizations provided employees with digital tools and training. Since hybrid working will remain relevant post-COVID-19, we identify future research propositions and practical recommendations. © 2023 Hogrefe Publishing.

12.
Revista Brasileira de Finanças ; 21(1):1-19, 2023.
Article in English | ProQuest Central | ID: covidwho-2261736

ABSTRACT

This paper proposes an innovative financial instrument to fund projects that combine profit-making with significant social or environmental goals, specially in emerging or low-income economies. The proposal is based on improvements to the typical impact bond model with the aim of better aligning the parties' incentives, and also making it more transparent, traceable and compatible with revenue-generating projects. It is applied to a pilot project to fund the establishment of a robust supply chain of green propolis in Minas Gerais, Brazil. Propolis is a natural product with benefits for human health, which has been consumed by humans for decades and raised substantial global interest after the Covid-19 pandemic. This project addresses some industry issues (in temis of product quality and supply stability) and aims to provide biodiversity recovery, subsistence farming and resocialization through work. A financial model with stochastic variables is simulated, incorporating a reward system based on the impact outcomes. The results confirm that the instrument improves risk-return trade-off and advocate for its use in projects with sustainability objectives.

13.
Information Technology & People ; 36(2):701-733, 2023.
Article in English | ProQuest Central | ID: covidwho-2257354

ABSTRACT

PurposeAs employees' adoption of Bring Your Own Device (BYOD) has increased, so has research interest into the impact of BYOD on human resources outcomes. The present study aims at understanding the relationship between BYOD and human resources outcomes.Design/methodology/approachThe study employs the inductive data-driven content analysis approach to analyze the data collected through qualitative semi-structured interviews with a sample of 28 knowledge workers from different occupational sectors in Mauritius.FindingsThe results show the double-edged sword brought about by BYOD implementation. This trend is associated with perceived job performance, job satisfaction, organizational commitment and work motivation while also having an effect on work-life conflict and stress.Practical implicationsThis study has implications for organizations that are concerned about formulating guidelines and policies in relation to workers' adoption of BYOD in the workplace. This trend permits employees to continue to communicate and work irrespective of new working conditions and social distancing since the Covid-19 pandemic has changed the way organizations operate around the globe.Originality/valueDriven by the JD-R theory, themes and sub-themes were linked by the emerging relationships to present a conceptual framework to understanding employees' well-being since this is a pertinent research area for scholars and practitioners, as well as a topic of growing prominence for modern organizations.

14.
Journal of European Public Policy ; 30(4):655-675, 2023.
Article in English | Academic Search Complete | ID: covidwho-2252514

ABSTRACT

A seemingly continuous stream of crises in Europe has turned scholarly agendas towards assessment of the EU's management of crises. Those assessments vary widely, depending on the analytical focus and criteria used. This paper introduces three assessment criteria drawn from crisis research that pertain to the detection of a crisis, the mobilization of necessary resources, and the nature of the public debate about critical choices made in times of crisis. We relate these crisis management insights to long-standing debates in European integration theory to help link traditional crisis management assessments with EU-focused theorizing. The article offers a framework for assessment of the EU's performance as a crisis manager. We illustrate the utility of the framework with a brief application to the EU's response to Covid-19. We assess the EU's performance in positive terms: the Union acted quickly after a somewhat slow start and was very effective in mobilizing a variety of resources. At the same time, we note that major policy choices were made without a significant public debate about potential effects on the future character of the Union. [ FROM AUTHOR] Copyright of Journal of European Public Policy is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full . (Copyright applies to all s.)

15.
Journal of Enterprise Information Management ; 36(2):629-654, 2023.
Article in English | ProQuest Central | ID: covidwho-2250014

ABSTRACT

PurposeDespite the availability of several published reviews on the adoption of blockchain (BC) in supply chain (SC), at present, the literature lacks a comprehensive review incorporating the antecedents and consequences of BC adoption. Moreover, the complex adoption of BC in SC, explained with the mediating and moderating relationships, is not fully consolidated. Thus, the aim of this study was to conduct a systematic literature review (SLR) on BC technology adoption (BCTA) in SC by integrating its antecedents and consequences.Design/methodology/approachKeyword searches were performed in multiple databases resulting 382 articles for evaluation and verification. After careful screening with respect to the purpose of the study and systematic processing of the retrieved articles, a total of 211 peer-reviewed articles were included in this study for review.FindingsVarious technological, organisational, individual, social, environmental, operational and economic factors were found as the antecedents of BCTA in SC. In addition, numerous applications of BC Technology (BCT) were identified, including asset management, identity management, transaction management, data management and operations management. Finally, the consequences of BCTA were categorised as operational, risk management, economic and sustainability outcomes.Practical implicationsThis study can assist relevant decision-makers in managing the factors influencing BCTA and the potential uses of the technology to enhance SC performance.Originality/value By integrating the antecedents, applications and consequences of BCTA in SC, including the mediators and moderators, an integrated framework was developed that can potentially assist researchers to develop theoretical models. Further, the results of this SLR provide future directions for studying BCTA in supply chain management (SCM).

16.
Journal of Business and Management ; 28(2), 2023.
Article in English | ProQuest Central | ID: covidwho-2287322

ABSTRACT

[...]they review all U.S. public company tax inversions in Ireland from 2010 to 2014 and find that inversions do not create additional value from operations. Program in Business at Chung Yuan Christian University, and University Chair Professor and department chair of the Department of Management Information Systems at the National Chengchi University (NCCU), Taiwan. Based on the research areas, he authored/co-authored over 80 refereed journal articles (e.g., Information & Management, Decision Support Systems, Journal of Information Systems, Information Systems Management, Communication of AIS, Journal of Global Information Management, Information System Frontiers) and published ten textbooks.

17.
Energies ; 16(3):1399, 2023.
Article in English | ProQuest Central | ID: covidwho-2248452

ABSTRACT

Information technologies possess the significant potential to improve the efficiency of resources and optimize energy usage, as well as make a significant contribution to the sustainable circular economy (CE). The concept of digital sufficiency provides a framework for understanding how information technology can be part of significant achievements in the circular economy, especially when embraced by business companies. Moreover, the possibility of the implementation of closed-loop resources has become possible with the development of digital manufacturing technologies. However, the research of establishing the CE in SMEs, especially in fossil-energy-abundant countries, such as the Russian Federation, is quite limited. Our paper fills in this gap by studying the adoption of CE practices as well as the investments for promoting CE in Russian SMEs through such factors as the existence of R&D, bank loans, and access to grants at the national and international level. It achieves this based on the data sample of 314 managers of Russian SMEs. Our results demonstrate that the investment or existence of R&D in SMEs and knowledge of CE as well the governmental funding and access to wider markets all together tend to have a significant and positive effect on implementing and investing into CE in SMEs, while the administrative barriers yield a small but negative effect. These results might be helpful for the relevant stakeholders in order to identify factors catalyzing attention from both the SMEs engaged in CE transitions, as well as help the decision makers wishing to foster the transformation of the SMEs to a circular economy. We can conclude that supporting SMEs (both financially and via increasing their public awareness) to make their own transitions towards CE has a societal effect that can speed up a greener transition and significantly contribute to increasing energy efficiency.

18.
Journal of Hospitality and Tourism Insights ; 2023.
Article in English | Scopus | ID: covidwho-2280074

ABSTRACT

Purpose: This study examines empirically the development of efficiency levels in the hotel industry and its key drivers, by juxtaposing pre- and post-COVID-19 results in the four most important cities in the United States in terms of international arrivals. Design/methodology/approach: A two-step approach was employed by first utilising the data envelopment analysis method to characterise the efficiency of United States hotels. A multiple linear regression analysis was performed to compare hotel performance in the two years prior to the COVID-19 outbreak with the first two years after the outbreak. Findings: The results indicated the positive effect of size and the economy hotel category on efficiency, while increasing property age, urban location and a lack of brand affiliation showed a negative effect. During the pandemic, size and the economy category remained significant and positive, whereas urban location continued to represent a negative effect. Practical implications: This study assists decision makers regarding prospective investments, supports existing and future portfolio analyses, contributes to observations on competition, and offers a wider perspective of the industry. Originality/value: First, this study investigated the evolution of factors that influenced efficiency before and after the outbreak of the COVID-19 pandemic. Second, the results offer insights into the impact of the pandemic on hotels' efficiency levels. Third, the study proposes directions for the restoration of hotel efficiency to pre-COVID-19 levels. © 2023, Emerald Publishing Limited.

19.
Accounting, Auditing and Accountability Journal ; 2023.
Article in English | Scopus | ID: covidwho-2239902

ABSTRACT

Purpose: The aim of this paper is to contribute to a greater understanding of non-profit organization (NPO) management control systems (MCS) and accountability in organizations providing support service for capacity constrained service users. Specifically, the paper examines the role of MCS and accountability in supporting mission realization in NPOs providing services to people with intellectual disabilities and reflects on this in the context of the COVID-19 pandemic. Design/methodology/approach: The research comprised a case study of four NPOs providing services to people with intellectual disabilities in Ireland conducted prior to the global COVID-19 pandemic. The study probed management's perceptions of stakeholders and examined the manner in which the design and use of MCS and accountability processes supported mission realization. Findings: Service users were regarded as the least powerful stakeholder and consequently the least attended to in terms of MCS and accountability processes. The absence of relational and dialogical accountability with service users is not only central to maintaining this power asymmetry but also poses a threat to mission realization. These deficits can be addressed through the integration and monitoring of internal advocacy activities into MCS and accountability processes, which, on reflection, may also mitigate some of the negative consequences for service users of isolation from external support networks in times of crisis. Research limitations/implications: This research has opened up an area for enquiry – internal advocacy – heretofore not addressed in the management accounting literature, opening up a novel vein for future research. Such research could further examine the role of internal advocacy, drawing from and adding to the research in other support service domains. A number of objectives and questions might be considered: (1) probing the level of management recognition of the role of direct engagement in advocacy activities in supporting service user agency;(2) identifying with service users and management the nature and attributes of effective advocacy activities and practices;(3) questioning how such advocacy activities and practices might be reflected in MCS;(4) identifying what service user stakeholders regard as effective accountability to them in relation to their needs and objectives;and (5) assessing the impact on service user experience and on NPO mission realization of internal advocacy activities and the monitoring and review thereof through MCS. These suggestions for future research draw attention to aspects of support service delivery that have the potential to be profoundly influential on service outcomes. Practical implications: A performance management model reflecting the identified need to incorporate internal advocacy mechanisms into organizational management control systems is proposed in an effort to increase accountability of NPOs to their core mission stakeholder – service users. This model may be of value to NPO management as they move from a medical-model of care to a rights-based model for service delivery in care settings. Social implications: The paper reflects the importance of listening to the voice of vulnerable service users in NPO care settings and proposes a mechanism for embedding internal advocacy in formal management control systems and accountability processes. Originality/value: In proposing an "agency” supportive relational and dialogical accountability logic for such organizations, underpinned by "internal advocacy”, this research provides theoretical and practical insights for accountability processes and the design of MCS. The findings contribute empirically, not just to the NPO management and MCS literature but also to understanding the relational interaction of service users with service organizations, and what this means in supporting service user objectives and realization of organizational mission. © 2023, Frank Conaty and Geraldine Robbins.

20.
Journal of Modelling in Management ; 18(1):42370.0, 2023.
Article in English | Scopus | ID: covidwho-2238855

ABSTRACT

Purpose: PT Garuda Indonesia (GIAA) Persero Tbk is the one only pride airline of Indonesian sovereignty. Although the bird achieved abundant international awards and certifications, the bird is dying and needs a remedy immediately. The frequent annual turnover of board executives did not make impact to the financial performance;this seems to be tip of the iceberg, peculiar with the number of restatement over the past decade. Therefore, this paper aims to address the issue through the function of five red flags model which known as Altman Z-score, Sprigate S-score, Grover G-score, Beneish M-score and Dechow F-score. Design/methodology/approach: This is exploratory study of univariate analysis using financial distress and fraudulent financial statement approach, while the type of data is secondary taken from Indonesia Stock Exchange during 12 years observation from 2007 to 2018. Findings: Altman, Springate and Grover produce strong indication of GIAA's financial distress;all models score the same distress indication by 14 times. All distress models agreed that only 2011 and 2012 classify to the safe zone when GIAA performed the corporate actions. Beneish scores fraud indication by eight times. Dechow scores slightly higher by nine times. The number of fraud predictions in this research are in line with the number of restatement, which proves the assumption that restatement can be used as a signal of the financial statement fraud. When GIAA categorized in safe zone, both Beneish and Dechow score no to fraud, this indicates the fraud occurence during health period is lower. Research limitations/implications: The motivation behind the financial statement fraud is not discuss through this research but from the primary theory of the fraud triangle. Financial distress possesses strong relationship with pressure factor;therefore, exit from financial crisis is one of the best solution to mitigate the financial statement fraud. Practical implications: The average of Beneish score is −2,26, slightly above the manipulator threshold which is −2,22. This must be marked as an ample conjecture of GIAA's fraud inclination and been a highlight for the auditor both internal and external when performing control testing, attestation and other assurance services. Social implications: All models in this study can apply to any other corporate issues, especially for evaluating the government company who has loosen the public trust recently in Indonesia such as PT Asuransi Jiwasraya and PT Asabri. Moreover, the pandemic COVID-19 has brought the world to the new unprecedented risk, especially the economic turmoil which lead the possibilities of corporate distress and fraud. By applying these scores, public might have tools as pre-elemenary assessment to serve a decision where to put trust in a company. Originality/value: This paper reveals a combination from various models of financial distress and financial statement fraud in order to generate the financial solutions named « DDCC » Debt Restructuring, Debt Conversion, Capex Management and Cost Cutting. © 2020, Emerald Publishing Limited.

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