Management Blog

Economic slowdown could foster fraud: KPMG

If the Australian economy experiences a downturn we can expect to see more incidents of workplace fraud, accounting giant KPMG warns.

KPMG's head of financial services, Andries Terblanche, says fraud is destined to become a more common problem for businesses as a result of rising interest rates and an increase in the cost of living.

While banks and other financial institutions are most at risk, KPMG says the issue of fraud has a potential to affect all areas of business during an economic down-cycle, the ABC reports.

Big incentives equal high performance: CEO study

When it comes to handing out performance rewards, new research indicates companies really do get what they pay for with CEOs, management-issues reports.

The global study, which looked at performance over a three-year period, suggests those CEOs who received larger incentives were most inclined to lead their companies to financial success.

In contrast, CEOs at less profitable companies were found to have received lower median performance-based incentive payments.

"While there may be a few cases of companies setting goals that were too easy to achieve, it's clear that rewards play a crucial part in driving most CEOs to excel," study author Ira Kay observes.

Green IT comes of age

2008 may be the year Green IT comes of age as a critical mass of companies seek to reduce the environmental and economic costs of operating data centres, The Australian reports.

HP boss Paul Brandling is quoted as saying that efficiency will be the industry's big driver as a result of budding green awareness and the desire to cut energy and cooling costs.

And it appears there is plenty of room for cost reductions. IBM figures indicate a data centre can use anything from 15 to 100 times more energy per square metre than other parts of a building.

New FMCGs aren't taking off

The number of fast moving consumer goods (FMCGs) increased by 69 per cent last year but few are winning over new customers, The Daily Telegraph reports.

It's claimed overall sales of FMCGs rose by just 4.7 per cent last year, an indication that only a small number of new products were successful.

Experts say this lack of sales success is due to a dearth of meaningful product innovation as well as a lack of emphasis being placed on changing consumer behaviour.

Rather than undertaking 'brand housekeeping' (for example new packaging or favours), experts say brands must gain an insight into consumer needs and tailor products accordingly.

Employee monitoring software unveiled

Employer groups have given their approval to the use of behaviour evaluating software that monitors workers' brain signals, breathing, heart rate, blood pressure and facial expressions.

The Courier-Mail says the patent pending Microsoft program – known as the Monitoring System 500 – has the potential to reveal whether a worker is stressed, frustrated, productive or lazy.

Microsoft says the software could be used to ease the problem of stress at work or to compare the productivity of workers in order to determine the best person for a promotion.

Chris Rodwell of the Australian Industry Group believes there is a place for monitoring systems in our workplaces provided the software was, "carefully controlled and explained to workers".

Warnings over 'green' talk

The ACCC has released guidelines to help businesses avoid making environmental statements in advertising they can't back-up, Smart Company reports.

The Green Marketing and Trades Practices Act Guide warns that companies must be able to substantiate their environmental claims and should not make too general or unqualified promises.

It is also suggested that a number of environmental catchwords are used with caution or avoided all together. These include: 'green', 'energy efficient' and 'carbon neutral'.

Consumer advocate Choice say companies need to apply common sense with green talk; in the majority of cases that boils down to advertisers simply telling the truth and not exaggerating.

Is Facebook a productivity killer?

A recent survey indicates the use of social networking site Facebook is costing employers $2,700 per worker in lost productivity each year, the Herald Sun reports.

That's a total of $5 billion a year for the national economy.

While a number of companies are placing restrictions on Facebook use (including the CBA, Channel 7 and Telstra), some workplace experts say these productivity figures are misleading.

They claim workers are multi-tasking by using Facebook and working at the same time. In addition, it's suggested online social networking results in a more relaxed yet productive workplace.

The truth about resume fibs

One in four job candidates lie in job applications with the majority of mistruths relating to university qualifications, a recent news.com.au article claims.

In many cases workers did go to the uni they mentioned but failed to complete their course; other common mistruths include lying about experience, reasons for leaving a job, pay and achievements.

Recruitment experts say the best way to check if a candidate is lying is to ask probing questions about jobs mentioned in a CV to check the job seeker's understanding of a particular role.

However, it's advocated that employers should not always avoid resume liars; their particular skills may come in handy for some roles (such as sales) where the truth can sometimes be bent.

Getting away with love at work

Workplace romance isn't necessarily a career killer if you follow a few simple rules, a recent Age article advises. The publication's 'Executive Style' section offers the following advice:

1. Avoid the boss – relationships between supervisors and subordinates can spark criticism if the latter is promoted

2. Check the fine print – some companies may not allow relationships between colleagues

3. Keep a lid on it – don't allow your paramour to distract you at work with obvious flirting or too many personal conversations

4. Mind your reputation – don't send hot and heavy emails using your work address, they may come back to haunt you later

Nature's design manual takes off

Nature is the mother of invention for a growing number of companies that are looking to the environment as a source of inspiration, BusinessWeek observes.

A range of product innovations is used to back the point; these include trains that mimic the shape of a bird's nose and glue formulas developed by analyzing how mussels cling to rocks.

Commentators say the biomimicry movement is making an impact due to its ability to accommodate environmentally sound product innovation.

However, not all biomimicry is successful. Shoes recently developed by Nike that copied the feet of mountain goats failed after receiving the thumbs down from consumers.