The use of competency systems to evaluate, reward, and promote managers has become commonplace in many organizations in recent years. Yet despite their popularity, there is little evidence that competency systems incr... more abstractThe use of competency systems to evaluate, reward, and promote managers has become commonplace in many organizations in recent years. Yet despite their popularity, there is little evidence that competency systems increase managerial effectiveness. In this study, we estimate the relationship between managerial competencies and performance at both the individual and organizational unit levels. We find evidence that competencies are positively related to individual-level performance and that individual managerial performance may be increased by mentoring on a competency system. The evidence of a link between competencies and unit-level performance is weaker. Key words: competency; performance; management; manager effectiveness; rewards.

Performance Management, Reward, Performance Evaluation, Competencies, and Managerial Effectiveness

Practitioners in Europe and the US recently have proposed two distinct approaches to address what they believe are shortcomings of traditional budgeting practices. One approach advocates improving the budgeting proces... more abstractPractitioners in Europe and the US recently have proposed two distinct approaches to address what they believe are shortcomings of traditional budgeting practices. One approach advocates improving the budgeting process and primarily focuses on the planning problems with budgeting. The other advocates abandoning the budget and primarily focuses on the performance evaluation problems with budgeting. This paper provides an overview and research perspective on these two recent developments. We discuss why practitioners have become dissatisfied with budgets, describe the two distinct approaches, place them in a research context, suggest insights that may aid the practitioners, and use the practitioner perspectives to identify fruitful areas for research.

Management Control Systems, Management Control, Planning, Budgeting ang budgetary control, Budgeting, and 1 more

Journal Name: Journal of Management Accounting Research, Vol. 15, pp. 95-116, 2003

Publication Date: 2003

De recente economische crisis zet onze performance management en controle systemen onder zware druk. In deze situatie komt veel aan op het vermogen van organisaties om prestaties en risico’s effectief te sturen en te ... more abstractDe recente economische crisis zet onze performance management en controle systemen onder zware druk. In deze situatie komt veel aan op het vermogen van organisaties om prestaties en risico’s effectief te sturen en te beheersen. Wim Van der Stede en Dimitri Kruik bespreken scenariobudgettering als een manier waarop bedrijven prestatie- en risicomanagement op een succesvolle manier kunnen integreren.

Risk Management, Scenario planning, Planning, Budgeting ang budgetary control, and Budgeting

This article describes the findings of a study aimed at providing a replication and extension in China of studies focused on incentive compensation practices of automobile retailers in the United States (Gibbs et al.,... more abstractThis article describes the findings of a study aimed at providing a replication and extension in China of studies focused on incentive compensation practices of automobile retailers in the United States (Gibbs et al., 2004, 2009) and the Netherlands (Jansen et al., 2009). Rich, detailed data sets from all three countries are analyzed together and in comparison. As theory is not well developed at the level of detail of the data collected, the purpose of this study was primarily exploratory, to provide empirics that can lead to the development of theory. The findings show that Chinese firms are much more likely to provide incentive compensation than are Dutch firms, and they are even somewhat more likely to provide them than are U.S. firms. But Chinese bonus plans are more likely to be subjective, rather than formula-based. In the situations where incentive payments are based on pre-set formulas, the Chinese firms’ systems are more like those used in the Netherlands than in the United States, with bonuses based on nonfinancial performance measures and with more complex performance-reward functions. Like managers in the U.S. firms, but unlike managers in the Dutch firms, Chinese managers who receive some form of incentive compensation are more satisfied with their pay. The article concludes with tentative explanations of the findings and suggestions for future research.

Performance Measurement, Compensation, Incentives, Non Monetary Incentives, and Incentive Compensation

I am writing this short, nontechnical article on Open Access (OA) because although rarely even mentioned at accounting conferences until about a year ago, there seems to have been a smattering of it at various recent ... more abstractI am writing this short, nontechnical article on Open Access (OA) because although rarely even mentioned at accounting conferences until about a year ago, there seems to have been a smattering of it at various recent conferences in accounting I attended. In brief, OA means that research, once published, is fully available to anyone without restrictions.

Open Access, Open Access Publishing, Academic Publishing, Scholarly Publishing, and Accounting Research

This short essay discusses some implications for primarily young researchers stemming from an academic environment in which the "impact" of academic research in the meaning of its benefits to the economy and society i... more abstractThis short essay discusses some implications for primarily young researchers stemming from an academic environment in which the "impact" of academic research in the meaning of its benefits to the economy and society is an increasingly important criterion to assess the "value" of our research.

Academic Publishing, Scholarly Publishing, and Impact of Social Sciences and Humanities

Pay-for-performance (PFP) is often seen as a virtually guaranteed means of achieving employee alignment and motivation and hence superior business performance. But, as LSE management accounting professor Wim Van der S... more abstractPay-for-performance (PFP) is often seen as a virtually guaranteed means of achieving employee alignment and motivation and hence superior business performance. But, as LSE management accounting professor Wim Van der Stede points out, PFP has its own potential pitfalls unless handled with care.

Management Accounting, Performance Management, Performance Measurement, Performance Evaluation, Incentives, and 4 more

How can a business design reward systems appropriate for the current economic crisis? Wim Van der Stede proposes constructive ways to improve incentive systems.

Management Accounting, Performance Management, Performance Measurement, Financial management, Performance Evaluation, and 6 more

Including analysis from a global survey of over 5,000 senior finance and senior non-finance professionals, this report assesses the latest trends facing the profession, comparing east and west, and highlights the chal... more abstractIncluding analysis from a global survey of over 5,000 senior finance and senior non-finance professionals, this report assesses the latest trends facing the profession, comparing east and west, and highlights the challenges facing accountants the world over.

Accounting, Management Accounting, Financial management, Financial Reporting, and Accounting and Finance

A survey of 128 firms looks at how companies use financial, nonfinancial, and subjective performance measures in order to better understand how different performance measure types contribute to and affect management s... more abstractA survey of 128 firms looks at how companies use financial, nonfinancial, and subjective performance measures in order to better understand how different performance measure types contribute to and affect management strategies.

Management Accounting, Organisational Performance Measurement, Performance Measurement, and Subjective Performance Evaluations

A report on an American Accounting Association panel discussion of management control systems at the Management Accounting Section meeting in January 2016.

Management Control Systems, Strategy Implementation, Management Control, Budgeting ang budgetary control, and Incentives

Firms that can make sense of all the data at their disposal and 'think expansively' will be better prepared for an uncertain future, says Wim Van der Stede.

Strategic Planning, Decision Making Under Uncertainty, Planning, Big Data, Long-range planning, and 2 more

Report in EAA Newsletter - May 2015

Management Control Systems, Management Accounting, Academic Writing, Management Control, Literature Review, and 2 more

In a time of strong calls for tighter compliance, Wim Van der Stede, CIMA professor of accounting and financial management at the London School of Economics, argued that regulation must remain principles based. He cau... more abstractIn a time of strong calls for tighter compliance, Wim Van der Stede, CIMA professor of accounting and financial management at the London School of Economics, argued that regulation must remain principles based. He cautioned regulators against issuing over-prescriptive and excessive regulation, and alerted global business about the pitfalls of mere compliance-driven reporting.

Accounting, Corporate Governance, Financial management, Compliance, Regulation, and 6 more

A CIMA survey suggests that there is a worldwide trend towards management 'support' and away from mere management 'accounting', but also reveals that, despite globalization, the extent of the shift differs between Eas... more abstractA CIMA survey suggests that there is a worldwide trend towards management 'support' and away from mere management 'accounting', but also reveals that, despite globalization, the extent of the shift differs between East and West and that convergence between the two finance function cultures is hardly imminent. Jim Banks speaks to Wim Van der Stede, CIMA professor of accounting and financial management at the London School of Economics and Political Science.

Accounting, Management Accounting, Financial management, Auditing, Accountancy, and 3 more

CFO aktuell 6/2011. Im Gespräch mit Wim A Van der Stede

Corporate Governance, Risk Management, Corporate Governnace Disclosure in the Annual reports, and Financial Reporting and Disclosure

Op vrijdag 7 september 2012 hield de Erasmus School of Accounting & Assurance (ESAA) haar jaarlijkse symposium dat tevens de opening van het ESAA-collegejaar betreft. Het symposium had als thema 'Effectieve Governance... more abstractOp vrijdag 7 september 2012 hield de Erasmus School of Accounting & Assurance (ESAA) haar jaarlijkse symposium dat tevens de opening van het ESAA-collegejaar betreft. Het symposium had als thema 'Effectieve Governance in de boardroom: van hard controls naar soft controls': een zeer actueel en relevant onderwerp. Verschillende sprekers, onder wie professor Wim Van der Stede, gingen in op verschillende aspecten van effectief bestuur en de vraagstukken die daarbij een rol spelen. Na afloop van zijn presentatie interviewde Dimitri Kruik hem namens ESAA.

Management Control Systems, Organizational Culture, Management Accounting, Corporate Governance, Executive Compensation, and 2 more