Vol. 57 No. 2 (2024)

Tatjana DOLINŠEK

Faculty of Commercial and Business Sciences, Slovenia

Tatjana KOVAČ

Faculty of Commercial and Business Sciences, Slovenia

DOI: https://doi.org/10.2478/orga-2024-0008

Abstract

Background/Purpose: The aim of this paper is to verify the applicability and accuracy of the Altman model in the case of Slovenian companies. The use of the Altman model is hugely popular and widespread among financiers, analysts and other stakeholders who want to determine the creditworthiness of a company’s operations and the likelihood of it running into financial difficulties in the coming years.
Methods: The study was conducted on a sample of 66 Slovenian companies, which were divided into two equal groups: bankruptcy and non-bankruptcy companies. Based on accounting data for the last five years, the authors of this paper calculated the Z-Score, which is based on the Multiple Discriminant Analysis (MDA). By calculating the statistical error of the estimate (type I and II), the authors verified the extent (in percentage terms) to which the companies had been correctly classified by the model. The Mann-Whitney U test was used to check whether there was a difference in the average Z-Score between the two groups of companies.
Results: The authors determined that the reliability of the Altman model was 71.21% when tested at the upper bound (the threshold value of the Z-Score was 2.6) and 80.30% when tested at the lower bound (the threshold value of the Z-Score was 1.1). This is similar to other countries, where the reliability was found to be over 70% in most cases. Despite the lower reliability of the model, the Z-Score proved to be an important factor in differentiating between the two groups of companies, as bankruptcy companies had a lower value of this indicator than non-bankruptcy companies.
Conclusion: Based on the results of this study, as well as those of other studies, it can be summarized that the Altman model is a fairly good way for companies to determine the success of their business in a relatively simple and quick way and also to predict the potential risk of their operations in the future. However, since the reliability of the model is not 100%, it is important to be careful when making business predictions and carry out additional in-depth analyses or use other methods.

Keywords: Financial distress, Altman Z’’-Score model, Bankruptcy prediction, Multiple Discriminant Analysis, Slovenia

Morena PAULIŠIĆ

Faculty of Economics and Tourism “Dr. Mijo Mirković”

Maja VIZJAK

Institute for Migration, Croatia

Mostafa Mohamed ELHAWARI

University of Zagreb, Faculty of Economics and Business, Croatia

DOI: https://doi.org/10.2478/orga-2024-0009

Abstract

Background and purpose: This literature review examines labour market trends, focusing on workplace flexibility. It analyses grey literature and statistical reports to understand the impact of policies promoting sustainable digitisation. The analysis seeks to understand how these strategies have influenced labour market dynamics.
Methodology: The research utilised descriptive and compilation techniques to analyse grey literature, focusing on theoretical frameworks and temporal trends. It analysed non-traditional publications, reports, and statistical data to understand emerging labour market trends, particularly workplace flexibility and sustainable digitisation policies. This approach provided unique insights beyond traditional academic publications.
Results: Three major themes were identified by the review of grey literature sources. First is the impact of digitalisation on the labour market, the second is flexible working arrangements, and the third is working time flexibility.
Conclusion: The digital revolution transforms lifestyles and practices, leading to novel work forms. The pandemic has accelerated this trend, focusing on digitisation for work optimisation and flexibility. These new work forms increase productivity efficiency and reduce operational costs. Technological integration affects work quality and employee competencies, influencing the workforce’s needs.

Keywords: Flexible forms of work, Flexible working hours, Digital workplaces, Digital skills, Grey literature sources

Katul YOUSEF

Corvinus University of Budapest (CUB), Budapest, Hungary

DOI:https://doi.org/10.2478/orga-2024-0010

Abstract

Purpose: Owing to the COVID-19 pandemic, the importance of virtual teams has increased during this period. There is a gap in current literature about the transformation of cultural diversity, how it appears in face-to-face interactions, and how it does in virtual teamwork. Global, virtual coworking requires different skills in order to communicate efficiently and understand the team members. This paper analyzes the importance of intercultural communicative competence in virtual and face-to-face teamwork.
Methodology: The research was conducted with a quantitative methodology to see the pattern regarding teamwork throughout culturally diverse teams. A total of 133 questionnaires were obtained for the data analysis. The collected data were then analyzed by using the IBM SPSS Statistics 27 program.
Findings: The results found that intercultural communicative competence is crucial in virtual teams. With better intercultural competence, cultural differences can be identified and considered during project management. However, in face-to-face teamwork, it seems to be more complex. Willingness to discover another culture and eagerness to understand fellow teammates makes a higher priority than being temporarily effective due to intercultural competence.
Conclusion: Intercultural communicative competence is a crucial workplace requirement in today’s globalized world, regardless of branch, profession, or geographic location. The ability to understand people with different cultural backgrounds is an increasingly important competency both virtually and in face-to-face interactions.

Keywords: Intercultural communicative competence, Culturally diverse teams, Global virtual teams, Virtual teams, Cultural differences

Muhammad YOUSAF

Department of Finance, Westminster International University in Tashkent (WIUT), School of Business and Economics, Uzbekistan

DOI:https://doi.org/10.2478/orga-2024-0011

Abstract

Purpose: The study’s main purpose is to investigate the impacts of human capital efficiency (HCE) on the firm performance of non-certified and quality-certified firms from the European Foundation for Quality Management (EFQM) Excellence Model. The study also examines the relationship between firm performance and quality-certificates from the European Foundation.
Design/methodology/approach: By using a sample of 282 non-certified and 22 quality-certified firms from 2017 to 2021, the current study employed a two-step system generalized method of moments (GMM) estimation to analyse the empirical data. The dummy variable is used to examine the relationship between quality-certificates and firm performance. The dummy interaction term is employed to quantify the impacts of HCE on the firm’s performance for quality-certified firms.
Findings: The results revealed that quality-certificates and firm performance have a positive relationship. Quality-certified firms perform better and earn more profits than non-certified firms. HCE has a positive impact on firm performance for both types of firms. Moreover, the quality-certified firms utilize HCE in an efficient way to earn more profits compared to the non-certified firms.
Originality: This is the first study to use a comprehensive analysis to emphasize the HCE for non-certified and quality-certified firms separately. The effects of quality-certificates on firm performance in the context of HCE are also being highlighted for the first time in this research.
Practical implications: The current study’s findings are fruitful for academics, managers, researchers, policymakers, and other firm management. The findings will encourage the management of the firms to implement the total quality management (TQM) approach within their firms.

Keywords: Human capital, Quality management, Czech firms, Firm size, Firm age

Eva KRHAČ ANDRAŠEC

University of Maribor, Faculty of Organizational Sciences, Kranj, Slovenia

Benjamin URH

University of Maribor, Faculty of Organizational Sciences, Kranj, Slovenia

Matjaž ROBLEK

University of Maribor, Faculty of Organizational Sciences, Kranj, Slovenia

Tomaž KERN

University of Maribor, Faculty of Organizational Sciences, Kranj, Slovenia

DOI: https://doi.org/10.2478/orga-2024-0012

Abstract

Background: More than 50 process-based approaches, methods, and techniques have been developed in recent decades to achieve more efficient operation of organizational systems. Due to increasingly rapid changes in the business environment, the question of which method or technique will have the most significant impact on increasing the organizational system’s competitive advantage is becoming increasingly important.
Purpose: In the presented research, we focused on identifying methods and techniques often cited in the literature and most often used in practice as efficient for improving business processes.
Methods: We prepared a 4-phase structured review of the available literature and supported the findings with survey research.
Results and Conclusion: Based on the results, we designed a set of appropriate, most frequently used, and efficient methods and techniques for improving business processes. The completed research can serve as a starting point for answering the question about the appropriate methods and techniques for the chosen approach. In continuing the research, it would be reasonable to check other properties and the use of methods and techniques.

Keywords: Business Process Management, Business process improvement, Approaches, Methods, Techniques

Petra JARKOVSKÁ

Škoda Auto University, Department of Human Resources Management, Mladá Boleslav, Czech Republic

Martina JARKOVSKÁ

Faculty of Economics and Management, Czech University of Life Sciences Prague, Czech Republic

DOI: https://doi.org/10.2478/orga-2024-0013

Abstract

Background: Using the correct type of motivation is pivotal in triggering employees’ affirmative work attitudes, such as work performance, job satisfaction, or voluntary retention, ultimately leading to increasing the organization’s overall efficiency. Despite the ongoing academic debate, academics provide practitioners with mixed results on which motivation factors are relevant for targeted employee groups whose needs are under the economic and socio-psychological pressure of the rapidly evolving environment. Elton Mayo was the first to acknowledge these socio-psychological factors as significant motivation drivers almost a century ago.
Methods: Therefore, the purpose of this paper, using the narrative literature review method (supported by a systematic search strategy) on 83 articles, is to evaluate the research findings on employees’ motivation (related to their affirmative work attitudes) and to unfold the motivation theory’s advancement.
Results: Key motivation drivers were identified and unified into five motivation sets applicable to different employee groups. The findings also suggest that most academic works, theoretically grounded in classical motivational concepts, are quantitative analysis-based.
Conclusion: To increase the efficiency of employees’ performance, internal motivation or internalization of external motivation seems to be the best solution. Employees’ “floating” needs call for practitioners to be trained in techniques from psychology.

Keywords: Elton Mayo, Employee motivation, Motivation factor, Motivation theory

Tomaž ALJAŽ

Faculty of Information Studies, Novo mesto, Slovenia

DOI:https://doi.org/10.2478/orga-2024-0014

Abstract

Background/Purpose: Artificial intelligence (AI) has traditionally been used for quantitative analysis using explicit data. However, much of the information critical to decision making remains undocumented and is not stored in a structured way. This study explores the integration of AI, specifically ChatGPT, into Theory of Constraints (TOC) Thinking Process (TP) tools.
Method: In this study, we applied ChatGPT to a real-world IT project management case using a variety of research methods, including international literature analysis, observation, and personal experience. The use of the TOC TP allowed us to understand the decision-making process of ChatGPT and to systematically explore its advantages and limitations in creating logical trees of TOC TP.
Results: ChatGPT significantly enhanced efficiency and depth in TOC TP data collection and analysis, effectively addressing logical leaps for more coherent structures. It also promoted deeper analytical thinking and aided root cause identification. The integration of ChatGPT into the TOC TP process led to faster decision-making, reduced bias, and clearer analysis. Challenges of ChatGPT including the need for human oversight, specific TOC TP training, and ethical considerations were noted.
Conclusion: This study provides an initial investigation into the use of ChatGPT in TOC TP tools. The results suggest that ChatGPT has the potential to be a valuable tool for organizations seeking to improve their decision making and performance. However, further research is needed to validate these findings and explore the full potential of AI in TOC TP.

Keywords: ChatGPT, Artificial Intelligence, Theory of Constraints, Theory of Constraints Thinking Process, Logical Analysis, Decision Making, Structured Analysis Framework