1st issue / July 2013 – The Annals of the University of Oradea. Economic Sciences, Tom XXII -2013
Title: ACCOUNTING TREATMENTS ON FORESTRY SPECIAL FUNDS AND SPECIFIC PROBLEMS IN ROMANIA
Author(s): Hada Teodor, Mărginean Radu
Abstract: This study, theoretically and practically, presents the accounting system for forestry special purpose funds in Romania. In addition, the main problems Romanian forestry faces nowadays are highlighted in the content, given the legislative changes expected in the near future. Accounting treatments specific to Romanian forestry regarding special funds, namely the conservation and regeneration fund, the accessibility fund, the environmental fund and the improvement fund are governed in the current law, mainly by the Forestry Code in Romania – Law 46/2008 supplemented by other specialized works used within the National Forest Directorate in Romania. Among the specific forestry regulations, special purpose funds are an area of interest in the current economic crisis being presented under several aspects: establishing the Fund, its utility and calculation method, its recording into accounting, or its specific tax implications. The main objective of this paper is to provide both a framework for analysis and presentation of the problems faced by forestry activity in Romania, and the accounting treatments specific to forestry activities, by illustrating the main entries made through financial and accounting documents. Given that we fully realize the environment’s importance in our lives, we understand the very close relationship between the forestry business’ enactment, its financing and its supervision. Special funds are the basis for financing forestry projects. Their study covers a gap in the specialized literature, providing specialists, practitioners and other stakeholders a framework. In the current economic and political context, the forestry problems, environmental issues in general are perceived to be more stringent. The solutions identified as a firm response to the existing problems are therefore of major importance, of which, in this study, we have identified and proposed several solutions. Practical examples have as grounds real data extracted from invoices, and the accounting items correspond to the National Forest Directorate.
Keywords: Accounting, environmental issues, forestry, forestry funds, special purpose funds
JEL Classification: G28, E62, M41
Pagination: 1229 – 1239
Title: IFRS IN THE SMALL AND MEDIUM-SIZED ENTITIES. DIFICULTIES AND OPPORTUNITIES OF THE IFRS FOR SMES
Author(s): Moț Ioana
Abstract: IFRS IN THE SMALL AND MEDIUM-SIZED ENTITIES.
DIFICULTIES AND OPPORTUNITIES OF THE IFRS FOR SMEs
PhD Student Moț Ioana,
West University of Timișoara, Faculty of Economics and Business Administration, România
Doctoral programme – Accounting
Scientific coordonator – Prof. Univ. Dr. Mateș Dorel
Abstract: Over the years, the accounting have to meet a series of transformations and adaptations to the new trend by globalization, harmonisation and integration, trying to unfold transformations carried out at European and international level. In the same way and SMEs have undergone a series of changes, moreover SMEs shall draw up financial statements often use only owner-managers or use only tax authorities or other government authorities. Financial statements elaborated only for these purposes are not necessarily financial statements general purpose.
IASB (International Acounting Standard Board) has developed and published a separate standard devised to apply financial statements with general purpose and other financial reporting of the small and medium-sized entities (SMEs), entities private and public entities without liability, called IFRS for SMEs (The International Financial Reporting Standard for Small and Medium-sized entities).
The International Financial Reporting Standard for SMEs has become an issue of wide interest and for Romania. Through the contents OMPF 3055/2009 is a harmonisation with European Directives and International Standards, fundamental purpose being upgrade the comparability of financial statements of the economic entity.
In an effort to reduce the workload of SMEs has been provided the fact that IFRS for SMEs should be reviewed every three years and may be implemented by any entity, whether adopted or not full set of IFRS.
We believe that IFRS for SMEs is different than the full set of IFRS, due simplification, which allows flexibility provisions and showing accounting required information for this class of entities, but in applying the standard simplified scheme for SMEs has revealed a series of opportunities and challenges. IFRS for SMEs allows a particular accounting policies on recognition and measurement principles, offers greater flexibility in developing their accounting rules than provisions of full IFRSs.
Having regard to theoretical concepts discussed above, we carry out a case study, which shows the comparable presentation by applying of financial statements OMPF 3055/2009 and IFRS for SMEs in reporting financial assistence in Romania.
According to studies, rules used in the preparation and presentation of financial statements present a yawning abyss regarding accounting standards and those applying them in practice, due to the existence of multiple accounting regulations, confusing and permanently changing.
Through this article it soughts to point out the accounting rules used by entities in Romania, in financial statements presentation.
Keywords: financial statements, standard, SMEs, IFRS for SMEs, harmonization, performance.
JEL classification: M41
Keywords: financial statements, standard, SMEs, IFRS for SMEs, harmonization, performance
JEL Classification: M41
Pagination: 1240 – 1249
Title: THE PATTERNS OF EU STOCK MARKETS. IS THERE A SIGN OF CONVERGENCE?
Author(s): Muresan Diana
Abstract: This paper offers a preliminary analysis regarding the convergence of European stock markets. The sample consists of all 27 countries of European Union split in seven sub-groups related to income level, euro adoption and development level. The patterns analysed through this article are an important indication of expected convergence in EU stock markets. This study analyses the evolution and the trend of market capitalization and stocks traded and their correlation with some important determinants, namely inflation, capital formation, enrolment years, trade, FDI, government debt. Results show a negative correlation between initial level of market capitalisation and its growth rate and also of initial level of stocks traded and its growth rate. These results could be a sign of absolute convergence. Further research in this area is needed to see if there exists conditional convergence when heterogeneity among individuals is controlled for.
Keywords: market capitalization, stocks traded, convergence, stock markets, EU
JEL Classification: G15, G30
Pagination: 1250 – 1265
Title: THE COMMUNICATION PROCESS OF THE FINANCIAL REPORTING
Author(s): Nicolaescu Cristina, Moț Ioana
Abstract: An information has value through the financial reporting. Such are taken into account factors such as: the nature of the event referred to financial reporting, the adequacy of the presentation, the credibility and integrity of information, readability necessary to allow some conclusions on a reasonable impact on the financial statements, the investors risk profile and processing skills recovery opportunities. Communication is not an end in itself. Its existence can not be conceived outside support a general policy orientated goals undertaken by the organization. In this situation, organization and communication should be viewed as complementary tools and not as independent techniques.
In the communication process, it must be designed in such a way as to contribute to the objectives of the entity. Communication is managed in accordance with the overall strategic plan of the specific activity of that entity.
The financial communication tools are: accounting information and financial information. We can say that for accounting and its environment is interested accounting information and for financial analysis is interesed financial information conducted with the help of financial indicators.
In determining values for financial reporting information, should be considered category of users whom it is addressed as well as the purpose for which the information is used.
Entering barriers to effective communication, due to lack of a common reference system or a difference in experience between the entity and its external environment leads to failure.
This article aims to answer the question to what extent the current contents of financial reports for these factors and provide useful information to users.
To demonstrate the communication within an entity will present research conducted for 4 business entity of 4 different counties
Communication is not an end in itself. Its existence can not be conceived outside support a general policy orientated goals undertaken by the organization. In this situation, organization and communication should be viewed as complementary tools and not as independent techniques.
The conclusion is that the way in which financial information is transmitted by the
annual financial statements depends not only on the quantity or quality of the information but also on the way we effectively communicate with all that it involves.
Keywords: communication, financial reporting, entity, accounting regulations, informations, financial statements
JEL Classification: M 41
Pagination: 1266 – 1272
Title: THE BEHAVIOUR OF ROMANIAN ACCOUNTANTS FROM TIMIS COUNTY: CREATIVE OR NON-CREATIVE
Author(s): Schmidt Anca, Megan Ovidiu
Abstract: Creativity and innovation are two very trendy concepts for the current period which is characterized by a very difficult economic context. The creativity and the innovation usually stimulate the competitiveness of economic organizations. But what about creativity in the field of accounting? Are the accountants creative? Is creativity benefit for the quality of accounting information?
The aim of our study is to review study the accounting literature and practical experience of Timis county organizations in order to create a picture of Timis county accountants’ behaviour. For the achievement of the proposed objectives the authors based their opinion on a research study by questionnaire realized at Timis county level.
Keywords: Financial accounting, creative accounting, management accounting, IFRS
JEL Classification: M41
Pagination: 1273 – 1279
Title: IMPACT OF ETHICAL VALUES PROMOTED BY PROFESSIONAL ACCOUNTANTS ON THE ORGANIZATIONAL CULTURE
Author(s): GRETI DANIELA TOGOE, DOREL MATES, MILEVA VALENTINA MANESCU DRAGOTOIU
Abstract: This paper aims to point out the contribution of professional accountants to the sustainable development of organization and the way they generate sustainable organizational success through their direct involvement in creating organizational culture. Professional accountants can be considered value creators in organizations because of their commitment in developing and implementing strategies, policies, plans, structures and governance measures which set the framework for the creation of added value. The ethics and values of conduct in organizations are supported by professional accountants through their behavior and the actions they carry out. Thus, the quality of professional judgment becomes a differentiating factor for accounting professionals
Keywords: organizational culture, ethical values, ethical behavior, accounting professionals
JEL Classification: M41, M49
Pagination: 1280 – 1285
Title: THE EFFICIENCY OF FOREIGN INVESTMENTS IN THE FINANCING OF AUDITED ENTITIES
Author(s): Berinde Sorin, Grosanu Adrian
Abstract: The auditing of the financial statements is a certification service intended to offer the users more credibility regarding the quality of accounting information. This is the reason why the present study selected all the Cluj county entities that, according to the public information, between 2005-2012 were subject to financial audit in order to estimate, at this level, the influence of foreign investments in the financing structure. The information provided by the financial statements of these audited entities (with or without foreign participation in share capital) was analyzed for the calculation of the relevant indicators to determine the evolution of the equity financing, the recourse to external financing funds, the ratio of external funds and equity funds used for financing and the assessment of the efficiency of foreign capital invested at the level of these entities. In order to meet this objective, we considered the information from the financial statements of the concerned entities, published between 2008-2011. For the relevance of the study, we eliminated the audited entities that did not have financial statements published in all of the four financial years for various reasons (dissolution, liquidation, merger, or temporary suspension of activity) or had negative working capital. The financial statement information was analyzed in view of the calculation for each audited entity of the rate of financial autonomy, the debt ratio, the debt to equity ratio and of the rotation speed of equity. The audited entities were classified into 2 major categories: audited entities with a foreign participation in share capital and audited entities with the whole share capital financed by equity funds. We applied the simple average method at the level of the both audited entities categories for each of the four analyzed indicators. Furthermore, we performed an analysis from the static and dynamic point of view of the results. The conclusions that we reached are relevant for the emphasis of one of the two categories of audited entities for one or the other financing methods, for a specific proportion of the financing forms and for the assessment of the management of shareholders’ capital in the analyzed time span.
Keywords: audited entities, financial statement, foreign investments, equity funds
JEL Classification: M41, M42
Pagination: 1289 – 1299
Title: THE IMPACT OF CORPORATE GOVERNANCE ON THE RESTRUCTURING OPERATIONS OF AUDITED ENTITIES
Author(s): Berinde Sorin, Rachisan Paula Ramona
Abstract: The study is based on public information provided by the National Trade Register Office regarding all audited entities within the county of Cluj. In accordance with the legal provisions, the audited entities must notify, in case they meet the legal requirements, if they contract financial audit jobs. The processed information refers to the connection of the management’s nature and the source of the capital for these entities with the frequency of the changes occurred in the structure of the entity and/or of the social capital. Operations of such nature, considered for the period 2005-2012, refer on one side to absorption mergers, dissolutions without liquidation followed by merger, partial divisions and transfer of the audited entity’s headquarters in other counties (positive operations) and on the other side to operations of liquidation, insolvency, dissolution followed by liquidation, temporary suspension of activity for a maximum period of 3 years (negative operations). Positive operations are considered by authors to have as an impact the optimization of the indicators of financial position and/or performance, and the negative operations as those unlikely to meet the principle of activity continuity. The study aims to determine whether there is a correlation between a certain type of corporate governance on one side and the frequency of the two categories of changes in the structure of the activity and/or of the social capital. Conclusions are relevant for at least two reasons: the study is exhaustive, there have been taken into consideration all the audited entities in the county of Cluj and, moreover, the analyzed period is very expansive (the last seven financial years). On the other hand, from the previous studies it appears that within audited entities there is a higher preponderance of foreign management in comparison with a more moderate foreign investment. Relevant in this respect are the findings regarding the nature of the changes in the structure of the activity and/or of the social capital within the audited entities where there is an overlap between the foreign governance and the foreign investment.
Keywords: corporate governance, audited entities, restructuring operations, foreign investment, social capital
JEL Classification: M41, M42
Pagination: 1300 – 1309
Title: CONVERGENCE OF INTERNATIONAL AUDIT STANDARDS AND AMERICAN AUDIT STANDARDS REGARDING SAMPLING
Author(s): Chis Anca Oana, Danescu Tatiana
Abstract: Abstract: Sampling is widely used in market research, scientific analysis, market analysis, opinion polls and not least in the financial statement audit. We wonder what is actually sampling and how did it appear? Audit sampling involves the application of audit procedures to less than 100% of items within an account balance or class of transactions. Nowadays the technique is indispensable, the economic entities operating with sophisticated computer systems and large amounts of data. Economic globalization and complexity of capital markets has made possible not only the harmonization of international accounting standards with the national ones, but also the convergence of international accounting and auditing standards with the American regulations. International Standard on Auditing 530 and Statement on Auditing Standard 39 are the two main international and American normalized referentials referring to audit sampling. This article discusses the origin of audit sampling, mentioning a brief history of the method and different definitions from literature review. The two standards are studied using Jaccard indicators in terms of the degree of similarity and dissimilarity concerning different issues. The Jaccard coefficient measures the degree of convergence of international auditing standards (ISA 530) and U.S. auditing standards (SAS 39). International auditing standards and American auditing standards, study the sampling problem, both regulations presenting common points with regard to accepted sampling techniques, factors influencing the audit sample, treatment of identified misstatements and the circumstances in which sampling is appropriate. The study shows that both standards agree on application of statistical and non-statistical sampling in auditing, that sampling is appropriate for tests of details and controls, the factors affecting audit sampling being audit risk, audit objectives and population\’s characteristics.
Keywords: sampling, convergence, IAS 530, SAS 39
JEL Classification: M42
Pagination: 1310 – 1315
Title: STUDY ON THE PERCEPTION OF THE CORPORATE PERFORMANCE IN ACCOUNTING AND AUDIT FIRMS
Author(s): Liliana Feleaga, Niculae Feleaga, Mihaela Dumitrascu
Abstract: The environment in which the accounting and auditing firms operate is changing. The economic, technological and financial contexts directly affect their business. In addition, the customers have become more fastidious in terms of the nature, the speed and the precision of the required services. All these developments force the firms to improve their organization by incorporating appropriate performance measurement systems. The objective of this paper is to examine how the organizational performance it is perceived in accounting and auditing firms. In this sense, we checked the perspectives of the balanced scorecard model in a Big Four office and in a small office. The sample consists of 10 Romanian auditors. Eight of auditors are working in one of the Big Four. To achieve this study, were selected only managers. The other two auditors operate in a small office, they being, at the same time, also associates. The sample is homogeneous in terms of the training, the sector of activity and experience. To enable an objective analysis of results, the name of the offices will not be made public. The results showed that in the Big Four office all four perspectives of the balanced scorecard model are checked, while in the small office the number of perspectives is lower, because learning is informal and not materialized. On this perspective, the Big Four office, periodically analyzes the results and try to identify the causes that led to differences in the objectives set. Possible causes that were invoked: overloading of the auditor, additional works, not included in the letter of assignment and the lack of competence of the auditor. Regarding the internal perspective, each office has its own mode, but obviously the Big Four office has human, logistics and financial resources more important, that enabling it to keep its reputation in the market. Instead, the financial goals are the same for both offices analyzed: profitability increasing.
Keywords: accounting and audit firms, corporate performance, balanced scorecard
JEL Classification: G 34, M14, M42
Pagination: 1316 – 1323
Title: ROLE OF INTERNAL AUDITING IN RISK MANAGEMENT IN THE PUBLIC SECTOR AND LOCAL ENTITIES – CASE STUDY BIHOR COUNTY
Author(s): Dana Simona Gherai, Diana Elisabeta Balaciu
Abstract: This exploratory study of the internal audit in the public sector in function, points out the need for the involvement of public sector entities, showing that in its role has traditionally focused mainly on evaluating internal control and not on the process of risk management and corporate governance.The objective of this study is to analyze the role of the internal auditing in risk management in public institutions from Bihor County. The method chosen is the research is based on questionnaire and the analysis of the institutions has been divided into two categories, so that, when the sample was taken in consideration, the likelihood that local public institutions of Bihor County have organized the public internal audit activity. Based on responses from 49 entities from public sector, the result of the study show us that the public internal auditors know they can play an important role in the risk management, but there is a number of other activities which must be conducted within the organization. So, they tend to understand the concept of risk management and risk management process, where it is carried out, and of the role they can play in improving and activity, however, issues of disposable incomes allocated to activity, and enough personnel specializing in the field, as well as a lack of interest of management to increase the efficiency and profit of the public internal audit activity, are issues that impede performance and risk management.
Keywords: Auditing, Public entities, Internal Auditing;
JEL Classification: M40, M42
Pagination: 1324 – 1333
Title: CHALLENGES OF FINANCIAL AUDIT – THE IMPACT OF INTRODUCING UNIQUE REGULATION OF FINANCIAL MARKETS IN ROMANIA
Author(s): Mitica Pepi, Traian Cristin Nicolae
Abstract: The theme of our research is related to the new type of relationship between financial audits (statutory) and unique regulation of financial markets in Romania.The Romanian authorities have decided as from 2013 regulation of financial markets, capital market, insurance market and private pensions market to achieve by a single entity, this situation will also lead to a number of challenges in the relationship between the auditor and the new regulatory regime. The main elements of our study are: the relationship between the audit committee and regulatory authority; quality of financial reporting for financial market entities. The auditor plays an important role in financial markets because it certifies the financial statements in accordance with European Union practice . It is also interesting to note potential interference that can occur in single regulation between compliance audit and financial stability and return on investment between performance audit and financial markets.In this case, financial regulation can coexist with compliance audit. EU legislation recommends that the auditor discuss with the audit committee the quality and acceptability of the financial reporting process.This recommendation is what should constitute a possible consensus to be highly unlikely between audit committees would align auditors in financial reporting disputes with management financial entities. In this regard, auditors should identify the factors we consider important in determining the quality of financial reporting. .We conducted this research in an effort to identify the possible divergence between the type of regulations that can emit single regulatory authority and the audit process. New regulator will operate on two levels, issue general regulations apply to all three categories of financial markets, capital market, insurance market and private pensions market, but in the same time and in greater extent will issue specific regulations of each market in part. We want to identify the extent to which audit the entities in these markets will be influenced by these changes. Interest is our largest to determine whether the audit can identify any changes in the new regulatory requirements on quality of financial statements.Our research results show the high importance of the audit committee in ensuring the high quality of financial reporting in the financial markets and seeks to identify potential points of conflict between audit conservatism and unique market regulation.
Keywords: auditing, capital markets, regulatory intervention, standards, GAAP, IFRS
JEL Classification: M42, M48, N20
Pagination: 1334 – 1344
Title: USING DEPENDENCY STRUCTURE MATRIX IN OPTIMAZING FINANCIAL AUDIT PROCESS
Author(s): Popa Adriana Florina, Vilsanoiu Daniel, Dobre Florin, Stanila Oana Georgiana
Abstract: This paper presents a new approach in evaluating risks of material misstatements in financial audit using dependency structure matrices (DSM). This perspective allows the identification of significant audit risks and can be used by audit managers to optimise resource allocation by focusing on higher risk areas. DSM matrix is widely used in other areas such as industrial production, design engineering and risk management. This approach is not used in financial audit so far. The financial crisis has diminished the activity of the audit clients and has imposed smaller audit fees. The auditors have to optimize their processes in order to maintain the quality of audit, even to improve it for the same audit remuneration. DSM matrix is a solution for this problem. This article points out have to use DSM matrix in financial audit process in order to optimize the allocation of resources, while maintaining audit quality. Our research aims to improve the risk evaluation stage in the financial audit process using DSM matrix to evaluate higher risk areas. We used the Project DSM Tool for representing significant accounts in the Purchase to pay process for a financial audit. Dependencies between accounts were used for creating a DSM matrix that depicts higher risk areas. Also, for each account, several resource allocation parameters such as costs and number of hours to be used for performing audit procedures on that account (from both audit team and client personnel).
Our research suggests that DSM can provide useful information in detecting risk areas in significant classes of transactions identified in a risk based audit and we recommend using DSM matrix in the planning phase of the audit in order to avoid redundancies in the audit execution phase. This is important considering that the European Commission recommends in the Green Paper for Audit to improve the quality of audits following the setbacks to the profession caused by the financial crisis.
Keywords: audit, risk based approach, DSM matrix, optimizing cost, resources’ allocation
JEL Classification: M42, M40
Pagination: 1345 – 1353
Title: CHALLENGES OF INTERNAL AUDIT IN THE CURRENT CRISIS
Author(s): Popa Adriana Florina, Breban Ludovica, Bochis Leonica
Abstract: Modern economic theories reject the generalization of theories concerning the economic and financial crises. Each financial crisis is unique, a historic accident, generated by specific factors in a certain socio-economic and political set-up. According to these theories, crises cannot be anticipated so as to minimize their negative effects. In spite of the fact that economic and financial crises are not identical and do not produce identical effects, history teaches us that they are strongly correlated with the cyclic nature of economic processes. The current economic recession, which shows in all fields of activity, is determining auditors to make evaluations which are a lot more precise, based on extensive procedures, as long as the presumption of activity continuity into the future is accurate. In this context, internal audit is individualized as an managerial assistance function, which allows a correct perception of the reality of the business as a whole and/or as predefined processes. The purpose of this paper is to create an overall picture of internal audit by collecting data and information from literature and showing the dimensions and the internal audit practices internationally. Therefore, we conducted a research based on the analysis of national and international publications, various articles and studies in the financial press, on the emergence and development of the internal audit function both internationally and nationally. Later we analyzed the position of internal audit in terms of global financial crisis, all these leading to the usage of a comparative study of twelve international companies in order to highlight the specific features of the internal audit function in each organization. Our intention is to emphasize aspects of internal audit departments, relations between them and the management, their role in companies based on studies provided by Protiviti, a global consulting and internal audit services company, having experts specializing in risk, consultancy and transactions.
Keywords: audit; internal audit; audit practices; multinational corporations
JEL Classification: M42
Pagination: 1354 – 1362
Title: AN EMIPRIC STUDY ON THE ROLE AND UTILITY OF THE FINANCIAL AUDIT IN ROMANIA
Author(s): Pop Grigorescu Ioana Iuliana, Ivan Oana Raluca, Puþan Alina
Abstract: The present article presents the results on an empiric study on the role and utility of the financial audit in Romania.
The statistic population is formed from three groups namely the financial auditors, financial managers of the audited firms and the users of the audited accounting information. The results of the questionnaire have been analysed by the help of Kruskal Wallis Test, which has shown that for every statement the differences between the three groups are significant. Next the results have been interpreted globally.
This way has been demonstrated the hypothesis according to which there are differences between perspectives and expectances between the financial auditors, financial managers of the audited firms and the users of the audited accounting information in Romania regarding the role and utility of the financial audit.
At the end of the study we have proposed solutions as to getting closer the expectances of the three groups concerning the role and utility of the financial audit
Keywords: empiric study, the role of the financial audit, the utility of the financial audit, differences of perspectives, differences of expectations
JEL Classification: M 42
Pagination: 1363 – 1372
Title: INTEGRATED INFORMATICS SYSTEM FOR PUBLIC MANAGEMENT
Author(s): Anghel Cristian, Vele Cristian, Toader Rita, HAHN Rada-Florina
Abstract: real time.
For the strategic planning on town level to be relevant, effective and efficient, the public administration authorities must take into account the importance of conducting certain analyses and of some strategic documents at neighborhood level.
The Urban Development Integrated Plan of the city of Baia Mare, is aimed at the public intervention on a well-defined area needing regeneration because of social, economic, territorial, functional and environmental discrepancies, as compared to other urban areas of the municipality.
The perspective of the Urban Observer has as its basis the permanent monitoring of urban indicators as well as the implication of all interested parties, including the citizens in view of defining the strategic directions of town development.
Keywords: informatics system, sustainable development, strategies, the institutional architecture, models
JEL Classification: J11, R11, R23
Pagination: 1375 – 1383
Title: EUROPEAN UNION ENLARGEMENT AS A CULTURAL SHOCK. THE ROLE OF INTERCULTURAL TEAMS’ MANAGEMENT IN INCREASING EUROPEAN COHESION
Author(s): Bibu Nicolae, Mihai Lisetschi
Abstract: The European Union is challenged nowadays by a dramatic multilevel process of integration. The Europe 2020 strategy promoting smart, sustainable and inclusive growth is defined by a set of ambitious objectives to be reached by 2020. On the other hand, the turbulent times of the economic crisis put even more pressure on the integration process. The success of this complex endeavor is heavily depending on the dimension of the cohesion specific to each of levels of the process. The cohesion of the European Union (EU) is stronger at macro (societal) level with regard to institutional, political, and economical dimensions. The cohesion of the European Union is less strong at micro level, the level of people, of the common individual, of the citizen. In other words, EU system has less cohesion at the level of individual and social fabric. An interesting hypothesis about EU enlargement is that every new “wave” of countries is a collective cultural shock for the European citizens. In conclusion, considering the history of the European Union, their citizens were subject to a constant flow of “cultural shocks”, following each new EU enlargement though admission of new member states: the big lot of 10 new countries in 2004, Romania and Bulgaria in 2007. In this respect, immigrations waves from new member countries have preceded their country accession, and to various extents, have made a first impact on the host countries culture. This paper is discussing the issue of increasing European cohesion based on a management approach. It describes the positioning of Romania on the European map of cultures, in order to identify the convergence and divergence of its societal culture with various European cultural clusters. We are arguing that: a) European organizations have a major role to play in the process of increasing cohesion within the European Union (EU); b) Organizational Management and leadership are paramount to their success and to society welfare; c) Intercultural Knowledge Management is needed for achieving the high performance of the European organizations; d) Intercultural teams are one of the most effective ways to reduce the current cohesion-less of EU, both at individual and organizational level.
Keywords: European Union enlargement, cohesion, cultural clusters, Intercultural Knowledge Management.
JEL Classification: A14; O52; Z13
Pagination: 1384 – 1390
Title: ASPECTS OF THE ASSOCIATION OF EFFECTIVE TEAM RELATED VARIABLES IN THE MANAGEMENT OF INTERCULTURAL WORK TEAMS IN MULTINATIONAL COMPANIES
Author(s): BIBU Nicolae, BRANCU Laura, HAS Daniela
Abstract: Various phenomena generated by the new context of globalization have focused our research interest towards studying in what ways management of Intercultural Work teams (IWT) could and should contribute to the increase of their performance at work. Despite the recognition of the fact that many MNCs fail in the management of IWTs, there is still a significant knowledge gap about their non-functionalities. Managerial literature „blames” national and organizational culture differences for the failure of this process. This is because each member brings his own style of work, with his own way of ensuring effective cooperation, making difficult to identify a clear recipe of a team organization and management in intercultural context. Teamwork, managing work teams made the subject of numerous researchers from many fields, denoting so difficult exercise in practice. However, we have identified high performance IWTs whose members are from different countries. Therefore, we assume that their management identified and used methods and instruments able to ensuring IWT performance. If we look at international research, intercultural teams management models have a reductionist and not holistic approach, namely stochastic in terms of selection of specific cultural dimensions cultural models specific to the interest of the researcher. In contrast, in Romania, intercultural management and intercultural management teams performance is less studied. The research presented below is set up to be a part of a pilot study, an exploratory research of how intercultural management assigned dimensions are directly related to the concept of EIA performance dimensions assigned. Our assumption for the empirical research is the following: work team performance (effective, efficient, with a high degree of satisfaction of its members) is the result of application performance management in the context of a particular style of interaction specific team. Because the dependent variables were nominal variables, and due to small size of the sample (10 managers and 33 employees ), we applied „non-parametrical tests considered the only relevant tests” (Popa, 2008:214). The research is “degree of association”, the independent and dependent variables of the same type. One more reason to choose this model of research is that we cannot claim a causal relationship, but the combination of variables that represent characteristics of a high performance team and not performance indicators. We will not venture to make judgments of causality based on done statistical tests.
Keywords: intercultural team work, management, intercultural management, model management, effective team, effective team
JEL Classification: M10, M12, M16
Pagination: 1391 – 1403
Title: STUDY ON PACKAGING WASTE PREVENTION IN ROMANIA
Author(s): Scortar Lucia-Monica
Abstract: This paper presents on the one hand, the packaging waste management in our country, and on the other hand the packaging waste – most of them disposable – prevention mechanisms. The study provides useful information regarding the quantities of the packaging waste, the capitalization methods and their impact on the environment and population.
Preventing waste means reducing the amount of waste generated, reducing the hazardous content of that waste and reducing its impact on the environment. The importance of waste prevention is nowadays fully recognized and generally considered as a priority within EU, as well as national and regional authorities’ waste management strategies and plans, but many efforts still need to be made. In practice, local and regional authorities will have to prepare their own waste prevention plans. They will have to take into account that the waste hierarchy established by the Waste Framework Directive puts waste prevention as the top priority. Waste prevention plans shall in particular include a series of actions aimed at reducing the amount of waste to be managed and treated by public authorities.
The current national environmental policy is based on the concept known as “waste hierarchy”. In an ideal situation, this means that the waste quantities should be prevented and the waste which cannot be prevented should be reused, recycled and recovered as much as possible, avoiding landfilling.
The uncontrolled landfilling is the most disadvantageous option for environment meaning resource losses with negative impact on the environment. The goal is to move forward to a society of recycling and recovery, meaning to climb the hierarchical scale, moving from landfill to recycling and recovery.
It is very important to mention that individuals and businesses can often save a significant amount of money through waste prevention: waste that never gets created doesn’t have management costs (handling, transporting, treating and disposing of waste). The rule is simple: the best waste is that which is not produced.
Keywords: waste prevention, packaging waste, recycling, sellective collection, environmental protection
JEL Classification: Q53
Pagination: 1404 – 1413
Title: GLOBAL TRENDS IN ENTREPRENEURSHIP USING 4 R’S MODEL
Author(s): GRATIELA DANA BOCA, LINDITA MUKAJ
Abstract: :. The study is based on 250 persons engaging in the manufacturing trading and services sectors in Small and Medium Industries. A discussion on survey about the business profile and leader entrepreneur is also providing. The study investigates the common reasons that motivate Romanian and Albanian women to become and work as entrepreneurs along with the constraints they face when starting and developing their business activity. In this context, theoretical arguments and empirical findings are investigated in order to draw a picture of the factors that motivate women to start their own business, as well as factors that limit the growth and development of women entrepreneurship. This paper examines the factors who can influence person needs to become entrepreneurs. Motivation factors are classified into economic, work, individual, entrepreneurial and social core. Description analyses revealed some important aspects and motivation factors for production activities.
Keywords: : quality management, change management, entrepreneurship, growth Small and Medium Enterprises, leader .production management.
JEL Classification: M50, M54, O15, O19
Pagination: 1414 – 1423
Title: MANAGEMENT CONTROL SYSTEMS: A REVIEW OF THEIR COMPONENTS AND THEIR UNDERLYING INDEPENDENCE
Author(s): Boghean Florin, Boghean Carmen
Abstract: Apart from governance and risk management, internal control is a third major component of corporate governance. Proper corporate governance relies upon risk management in order to identify the problems faced by the organization and on internal control in order to achieve its objectives. Internal auditors, apart from supporting the organization and enabling it to identify and monitor the risks lying ahead, must also understand and monitor the functioning of the internal control system which is the key to implementing the corporate governance principles. Internal control is a process implemented by the management of the public organization and directed at providing reasonable assurance in terms of meeting the organizational goals, which are grouped in the following categories: operating effectiveness and efficiency; reliability of financial reporting; compliance with the laws and regulations.
The design of the control system is highly significant when the system is used, and the part it plays in the management of the business entity is fundamental. For instance, budget control is a measure of performance. A supervisor can use this variation with difficulty or with ease. Used differently, the same measuring system may convey different benefits.
The organization of the internal control system in a manner that is divergent with the principles of planned economy has led managers to believe that control activities are discretionary, and the subsequent lack of management responsibility has weakened the efficiency of internal control systems during the first years after 1989.
Keywords: internal management control; governance; risks.
JEL Classification: G28
Pagination: 1424 – 1433
Title: COMMUNICATION STRATEGY ABOUT BUSINESS MODELS: STAKEHOLDERS PERSPECTIVE
Author(s): Bojoagă Alexandru, Petrişor Ioan
Abstract: Organizations inform stakeholders about their current and future activities, processes, created value, strategic intentions, and other information that may influence the established relationships. Organizations choose to communicate with stakeholders by different means and in varied ways. The annual report represents a way of communicating between companies and their stakeholders, and it is offering comprehensive information about how companies operates and creates value. The business model is an emerging concept in management literature and practice. The concept describes the logic by which a organization creates, maintains and delivers value for its stakeholders. Through annual reports organisations can communicate to stakeholders information about their business models.We investigated how information about business models is explicitly communicated through annual reports, and how this information is reffering to stakeholders. Our paper aims to reveal which stakeholders are more often mentioned when organizations are communicating about business models through annual reports. This approach shows the attention degree given by organizations to stakeholders. We perceived this from a strategic point of view, as a strategic signal. Thus, we considered if the stakeholder is mentioned more frequent in the communicated message it has a greater role in communication strategy about business model. We conducted an exploratory research and have realized a content analysis.The analysed data consist in over a thousand annual reports from 96 organizations. We analysed the informations transmitted by organizations through annual reports. The annual reports were for a time period of 12 years. Most of the selected companies are multi-business, and are operating in different industries. The results show the stakeholder’s hierarchy based on how often they were mentioned in the communicated messages about business models through annual reports. Based on our results the communication strategy about business model is focused primarily on delivering messages about external stakeholders. The most attention is given to customers, followed by suppliers and partners.
Keywords: business model, stakeholders, business model innovation
JEL Classification: M19
Pagination: 1434 – 1442
Title: ETHICAL ASPECTS OF ENVIRONMENTAL MANAGEMENT
Author(s): Cîrstea Ştefan-Dragoş
Abstract: The purpose of this article is to outline the main economical and social benefits that can be obtained by adopting an ethical attitude of the organisations which use a performant environmental management. From the idea that the human being is the master of nature, it was passed to the view according to which the human being must ensure a balance between consumption and the use of resources. In order to achieve our goal we identified the factors that lead to long term or even permanent destructive effects over the environment and we briefly present the reasons for which the organizations adopt and implement environmental management systems. Also, the difficulties encountered in implementing environmental strategies have been briefly enumerated and the competitive and economic advantages that can be achieved by adopting an efficient environmental management and the main reasons that grant to the environmental management a special significance were exposed. This theoretical paper emphasizes the importance of the adoption by organizations of a “green behavior” and reveals correlations between sustainability, economic growth and environmental performance in organizations. The analysis of the ethical aspects of environmental management shows the links that can be created between the development of an ethical culture of organizations and the achievement of the environmental excellence. The research provides an overview of the concept of environmental ethics and encloses it within the scope of environmental management. Someone needs to explain why an increasing number of organizations, both large and small, are setting up environmental management systems, making environmental investments and reducing risks over and beyond legal requirements, even when the benefits are not at all obvious, even in the long run. Also, this paper provides some practical examples of organizations environmental problems and points out how these organizations adapted their environmental strategies. The main conclusion of this conceptual paper is that organizations’ competitiveness in any industry and environmental protection are two interconnected concepts and we believe that there can be no excellence in business without excellence in environmental protection or vice versa.
Keywords: environmental management, environmental ethics, business ethics, environmental performance
JEL Classification: M10, Q56
Pagination: 1443 – 1451
Title: THE CONSEQUENCES OF ORGANIZATIONAL CHANGE ON THE HUMAN FACTOR IN THE TEXTILE INDUSTRY
Author(s): CHIRA MONICA, MARIAN LIVIU
Abstract: The study of this paper emphasizes the aspects of change in organizations from the textile industry and the consequences of their implementation on human resources. The present paper falls within the non-experimental quantitative research, as well as having an explorative side due to the fact that it explores a reality in order to discover whether there are certain relationships between the chosen variables. The research is transversal because the data collection is achieved by applying a one-time, ad hoc questionnaire that was built specifically for the conduct of a research, partially presented in this paper. The research method or the procedure used is the survey, the technique employed is the one of the questionnaire applied through the process called “self administration” and the investigative tool is the questionnaire on paper.
Along with a change in design or implementation plan and organizational culture, human resources contribute significantly to the success of any kind of change. Compared to the current process of globalization in which the economies and the financial markets are closely linked, and given the highly dynamic industrial climate that is characterized by items such as restructuring, relocation and subcontracting, Romanian companies appear to be aware that the social and ethical role of firms attracts increased attention on the living standards of employees. The resources of an organization in solving the arising problems are many, varied, and it depends only on its willingness to discover and capitalize. Difficult moments generated by implementing changes or the onset of seizures are such problems, which can not only have technical, but also human aspects. In managing the latter the human capital owned by the firm is undoubtedly important, but this must be combined with the quality of good management. The literature is replete with conceptual models of effective organization that can improve or streamline the industrial process, but a strategic orientation towards effective personnel policy is not very expensive, it being very necessary to ensuring the sustainability of the firm. For the textile industry to be successful, we need a better communication between industry and the education system and training, so that the needs and the qualification skills be clearly indicated in order to have a properly trained human resource. So, we can say that for the successful implementation of changes in the textile enterprises the material components, the financial and the human ones, should be combined, organized and updated with the aim of improving human resources management by specializing and training the personnel.
Keywords: Textile, human resources, organizational change, organizational culture.
JEL Classification: J24
Pagination: 1452 – 1459
Title: ENTREPRENEURSHIP CURRICULUM IN ROMANIAN UNIVERSITIES
Author(s): Claudia Cordea
Abstract: The central focus of universities should be the improving the quality and quantity of entrepreneurs or students with an entrepreneurial attitude. We argue that the academic field of entrepreneurship is at a very low level in Romania on several axes and the University must determine the best fit for them given their students, their alumni, their stakeholders, the region and its economic base and the aspiration of institutions. Entrepreneurship should it be something that will have high and positive impact for students not just another course in the curriculum. Entrepreneurship is concerned with establishing new activities and about being able to perceive new opportunities. Entrepreneurship competence is relevant for all areas of working and business life, in both new and established activities and enterprises. The aim of this paper is to provide an analysis of the present situation and recent evolution of entrepreneurship education in Romanian universities and to discuss these courses and curricula match the demand for entrepreneurial competences. This paper presents a short summary of the status of entrepreneurship curriculum and different challenges. The information collected through the Internet refers to the academic year 2012-2013. The range of theoretical choices, objectives, publics, pedagogical methods and institutional context should be structured around a general framework.
Keywords: Entrepreneurship education, Romania, Universities, Curricula, Learning process, Institutional context.
JEL Classification: L26, I25
Pagination: 1460 – 1468
Title: A STUDY ON THE CULTURAL DIFFERENCES BETWEEN PUBLIC AND PRIVATE HOSPITALS IN BUCHAREST
Author(s): Dobre Ovidiu Iliuta
Abstract: Turnover rates for hospital personnel (nurses, doctors and auxiliary staff) have been increasing in recent years, especially in the public sector, being the result of a couple of factors. I believe that one of the main causes is related to organizational culture aspects. This research analyses if dated facilities, unpleasant work environment and lack of personnel contribute to a low job satisfaction and involvement. The study also compares the results obtained from persons working in the public sectors with the results given by respondents from private clinics. An organization’s culture could be strong or weak, being dependent to cohesiveness, value consensus and individual commitment to collective goals. Effective cultures help organizations anticipate and adapt to environment changes, thus proactive cultures should enhance and support profitability on the long-run. This research also investigates strength of the occupational culture by comparing the results obtained in the public sector with results from private sector. My study is developed on 63 professionals working in the medical system and it is based mainly on quantitative methods. The instrument of the research is the structured questionnaire. The main goal of the study is to highlight the significant cultural differences between the state-owned and public-owned hospitals and to assess if they have a greater influence to the institutions, as compared to common occupational values and norms. The implications of my research for the field of organizational behavior refers to the fact that I have identified the organizational elements that are common to both public and private hospitals, influenced by a strong occupational culture, and those that differ significantly, being the result of underfunding and poor management. As a conclusion, I consider that this is a great starting point for further research in the field and I plan to enlarge the investigation on a greater number or respondents and to come up with solutions for the identified issues.
Keywords: organizational culture, high-performance cultures, medical system
JEL Classification: M14; L32
Pagination: 1469 – 1478
Title: COST OF QUALITY AND TAGUCHI LOSS FUNCTION
Author(s): Dobrin Cosmin, Stanciuc Ana-Maria
Abstract: An organization must take into account the costs associated with achieving quality because one of the important objective of continuous improvement programs is to meet customer requirements at the lowest possible cost. Hence, an organization needs to adopt framework to classify costs and to focus on existing cost of quality (CoQ) models. The objective of this paper is to give a survey of research literature and models on the topic of CoQ and to provide a basic understanding of quality costs.
Keywords: Quality Costs , Cost of Poor Quality, Cot of Good Quality, The Taguchi Quality Loss Function.
JEL Classification: M11
Pagination: 1479 – 1485
Title: APPLYING THE EFQM EXCELLENCE MODEL AT THE GERMAN STUDY LINE WITH FOCUS ON THE CRITERION
Author(s): ILIES LIVIU, PITIC DIANA, BRATEAN DIANA
Abstract: This article presents a stage of the implementation process of the EFQM Model in a higher education institution, namely at the German study line within the Faculty of Economics and Business Administration, “Babeș – Bolyai” University, Cluj –Napoca. Actually, designing this model for the higher education sector means highlighting the basis for the implementation of a Total Quality Management model, seen as a holistic dimension for the perception of quality in an organization. By means of the EFQM method, the authors try to identify the performance degree of the criterion ,,Customer Results”, related to the students’ satisfaction level. The students are seen as primary customers of the higher education sector and have an essential role in defining the quality dimensions. On the one hand, the customers of the higher education sector can surface the status quo of the quality in the institution and on the other hand they can improve the quality. Actually, the continuous improvement of quality is highly linked to performance. From this point of view, the European Foundation for Quality Management model is a practical tool in order to support the analysis of the opportunities within higher education institutions. Therefore, this model offers a customer focused approach, because many higher education institutions consider the students to be the heart of teaching and researching. Further, the fundamental concepts are defined and the focus is pointed in the direction of customer approach, which highlight the idea that excellence is creating added value for customers. Anticipating and identifying the current and the future needs of the students by developing a balanced range of relevant dimensions and indicators means taking an appropriate action based on the holistic view of quality in an organization. Focusing and understanding students’ and other customers’ requirements, their needs and expectations, follows the idea that performance can be achieved by involving people in the continuous development of the process, they work in.
Keywords: EFQM Model, Higher Education Sector, Performance Degree, Satisfaction, Customer Results
JEL Classification: I23
Pagination: 1486 – 1494
Title: ASPECTS REGARDING THE ROLE OF INFORMATION TECHNOLOGIES IN THE ASSURANCE OF SUPPLY CHAIN MANAGEMENT PERFORMANCE
Author(s): Ilies Radu Ovidiu, Salagean Horatiu Catalin, Balc Bogdan, Gherman Mihai
Abstract: This paper is intended to outline the importance of e-logistics programs, based on the new information technologies and successful e-business applications in the case of Romanian companies that activate in the production and services field, namely producers, suppliers or distributors. The redesigning of the logistic system and the reconfiguration of the supply chain management (SCM) challenge the firms, especially the small ones, to explore new e-business applications, on the basis of feasibility studies before getting implemented. For a long time, firms considered that commercial changes are the last solution to resolve SCM problems, however many supply chains have been a failure. The explanation resides in the fact that a number of companies that had integrated their supply chains noticed that there was little or no response to the existing requests in this field. Although commercial changes represent an important part of Business to Business programs, actually very few managers understand the way to deal with them, which is integrating them in e-business programs. This paper outlines the companies’ need to develop e-business programs and the importance of these programs for the whole supply chain to obtain performances, taking into account that many firms that get integrated in the supply chain lack the technological capacity to implement electronic means for processing, transmitting and receiving data. One remedy might be their initiative to use Business to Business programs, with the purpose to offer easily configurable optimized networks and interactive solutions based on Web, at competitive prices. This system should have different assisting functions to help the partners of a supply chain, especially the small firms, to easily integrate up-to-date management and informational system refinement methods, in an efficient and effective way. As it has been pointed out in the paper, a major role for the enhancement of SCM performances is information technology such as Internet and ERP systems. Internet offers important opportunities to all partners from the supply chain to get information about consumption tendencies and changes in consumption request, virtual information about a product and the clients’ requests regarding the logistic services. As for ERP systems, it can be said that they mostly influence the designing of business processes, in order to assure coherence between them and the effective integration of different firm components. Even though the internal integration is an important aspect, an approach to management at the supply chain level, in an efficient and effective way, cannot be done without external integration with suppliers and clients. That is why we consider that companies belonging to the business field must focus on structuring key processes, to collaborate with their clients and suppliers and to integrate their internal systems, with the aim to support business operations.
Keywords: logistic management, supply chain, supply chain management (SCM), e-logistics, ERP(Entrepreneurial Resource Planning) systems
JEL Classification: M21
Pagination: 1495 – 1504
Title: ANALYSIS OF THE IMPACT OF THE SUPPLY CHAIN PERFORMANCE ON THE OVERALL ORGANIZATIONAL PERFORMANCE
Author(s): Florian Gyula Laszlo
Abstract: After presenting the multidimensionality of organizational performance and its specific in the context of a supply chain, this paper uses a Romanian dataset of firms to estimate the impact of different areas of performance in the context of a supply chain on the overall organizational performance. Analysis follows a balanced scorecards approach, identifying four areas of performances in the context of supply chains. Results show that financial, marketing and innovation do have a positive and statistically significant impact on the overall organizational performance.
Keywords: supply chain management, supply chain performance
JEL Classification: M10C54
Pagination: 1505 – 1510
Title: CULTURAL DIMENSIONS AND WORK MOTIVATION IN THE EUROPEAN UNION
Author(s): Matei Mirabela, Abrudan Maria-Madela
Abstract: For decades, the field of work motivation was moulded mainly by the cultural constraints. The present scientific paper is a theoretical research which aims at identifying various motivational patterns which might be used in the EU countries. In order to illustrate these differences, we will use three Hofstede’s cultural dimensions: individualism, uncertainty avoidance and masculinity. Each of these cultural dimensions presents particularities which exert an influence on the way of thinking, on the abilities and behaviours of the individuals in a certain society, but we will refer only at the influence on the attitude towards work. For the identification of the motivational patterns, we will have as starting points, on one side, the particularities of the cultural differences and results of the relevant research performed so far; on the other hand there is Maslow’s hierarchy of needs. Hence, we can consider that safety and security prevails upon other needs where uncertainty avoidance is strong (Greece, Romania and so on). The need of belongingness will prevail upon the need of esteem in the feminine cultures (such as Sweden, Latvia), but in the masculine cultures esteem need is stronger (such as in the case of Hungary). In masculine countries with an increased collectivism (Greece), the opportunities for improvement, recognition and extra incomes will have an increased importance, while in feminine countries (Holland, Sweden) personal time, freedom and need for belongingness will be more important. Without claiming to be an exhaustive presentation of the motivational patterns, the purpose of the present paper is to underline the necessity that the motivation theories are to be considered valid only in the cultural environment where they were conceived. The transfer and the application of the motivation theories and patterns from one culture to the other, implies the testing of their validity in the new context.
Keywords: cultural dimensions, Hofstede, work motivation, EU
JEL Classification: M12, M16
Pagination: 1511 – 1519
Title: NEW APPROACHES OF THE CONCEPTS OF HUMAN RESOURCES, HUMAN RESOURCE MANAGEMENT AND STRATEGIC HUMAN RESOURCE MANAGEMENT
Author(s): MUNTEANU ANCA-IOANA
Abstract: This paper presents the most representative approaches to concepts of human resources, human resource management and strategic human resource management in the last two decades, based on purely theoretical analysis of the concepts mentioned above.
The purpose of this paper is to demonstrate through a critical analysis of concepts, that in this era of change and uncertainty, attention to human resources of an organization has changed radically. It can be seen by analyzing the definitions, evolving concepts of human resources, human resource management, strategic human resource management over time.
Analyzing the authors approaches regarding the concept of “human resource” it is observed that is no longer assign the term “cost element”, present authors define it as a strategic component of organizations.
In turn, human resources management has evolved considerably.
The period during which the department deals with purely administrative activities, preparing various documents, payroll is no longer valid. Note, by analyzing the literature, a strategic approach to human resource management, focusing on strategic human resource planning, selective recruitment and selection, training, motivation of employees, involving them in decision making, teamwork, reward performance based, creating a working environment, with particular emphasis on organizational climate.
Organizations have realized the role of human resources, human resources management in the survival and development.
Through this article we want to conclude that at the moment it is absolutely necessary strategic approach to human resource management to allow straightening organization to obtain a competitive advantage over other competitors in the field.
Competitive advantage has a critical role in the survival of organizations and is managed by Human Resources Management. This may be reflected in better financial performance (higher sales, increased profit), but also by non-financial performance (organizational reputation with customers and potential employees).
M. Porter highlights the important role of human resources within an organization, considering that in any business there are potential sources for obtaining competitive advantage. It comes from the ability of firms to master better than its rivals competitive forces. Any subdivision organizational structure and any employee of the organization, no matter how far away lies the strategy development process, contributing to gaining and maintaining competitive advantage.
Keywords: human resources, human resource management, strategic human resource management, competitive advantage
JEL Classification: J24, M10, M12
Pagination: 1520 – 1525
Title: DEFINING ASPECTS OF HUMAN RESOURCE MANAGEMENT STRATEGY WITHIN THE GENERAL STRATEGY OF THE MODERN ORGANIZATION
Author(s): Emanoil MUSCALU, Silvana Nicoleta MUNTEAN
Abstract: The field of human resources requires the presence and action of several categories of persons and managerial structures interested in the quality of human resources and the activities developed by them. Besides managers and employees there are also the shareholders, the unions, the customers, the different national or local agencies, the local community, etc., with major interests regarding decisions in the human resources area. In order to harmonize their activities and achieve an optimal perspective within the evolution of Human Resource Management, special attention is paid to the strategy of human resources management. According to many specialists, strategies in the field of Human Resource Management show, in the first place, that personnel function adopts a broader perspective and a more dynamic view of human resources, which enables its full integration within the other functions of the organization. In the second place, strategies in the field of Human Resource Management designate the assembly of long term objectives concerning human resources, the main modalities of achieving them and the necessary resources which guarantee that the organization’s structure, value and culture as well as the utilization of its personnel contribute to fulfilling the general objectives of the organization. Therefore, we approached in this paper the problems of grounding and elaborating the Human Resource Management strategy, and we outlined their specific traits, as these are necessary aspects in order to emphasise at the end of our paper the correlation between the strategy in the field of Human Resource Management and the general strategy of the organization. Taking into account specialists and practitioners’ increased interest in knowing, substantiating and implementing strategies in the area of Human Resource Management, we consider that the aspects presented in this paper are modern issues and a starting pointing in solving the great problems of organizations nowadays. Thus, contemporary economic thinking is invited to solve the numerous challenges that society faces in general, aspects that can be solved, we believe, only if a strategic Human Resource Management is achieved with great professionalism. Therefore, Human Resource Management strategies constitute a continuous challenge for organizations’ researchers and a real possibility to attain performance within organizations, be they present in a national or international area.
Keywords: strategy; Human Resource Management strategy; the general strategy of the organization; organization; implementation; substantiation
JEL Classification: M12
Pagination: 1526 – 1535
