Author: Paulo Deco I. SYNOPSIS This research focuses on the behavior exhibited by workers in informal workplace settings, particularly i...
I. SYNOPSIS
This research focuses on
the behavior exhibited by workers in informal workplace settings, particularly
in response to the structures (working conditions) provided by their employer.
These structures-whether physical, technological, organizational, demographic,
or psychological-may or may not be conducive to encouraging workers to carry
out their activities according to established company procedures.
It has been observed that
such structures, while passive in nature, possess inherent characteristics that
can significantly influence the behaviors of employees. These behaviors can
vary across individuals, activity groups, professional categories, affinity
groups, and collective dynamics, leading to notable discrepancies in how
structures and employee behaviors interact. This interaction, as highlighted by
Savall et al. (2008) and Savall & Zardet (2010), shapes the workers’
behaviors, causing them to either conform to or diverge from expected norms.
When workplace structures
are favorable, employees are informally motivated to perform their tasks in
alignment with company procedures. Conversely, when structures are unfavorable,
workers may become demotivated, which can manifest in informal behaviors that
disrupt normal operations, ultimately leading to malfunctions and the
generation of hidden costs.
Hidden costs arise from
operational malfunctions triggered by workers’ informal responses to suboptimal
working conditions. These costs, often overlooked, stem from the discrepancy
between the conditions provided and the actual needs of employees to perform
their tasks effectively.
During a company's
operation, two types of costs typically emerge: visible or identified costs
(those studied within financial and managerial accounting) and hidden or
invisible costs (those arising from the continuous interaction between
workplace structures and employee behaviors in informal settings).
Understanding the occurrence of hidden costs is crucial to grasping the
company’s true cost structure. Failure to account for these costs can lead to
distorted financial and economic results, as the total cost of operations will
be inaccurately calculated.
Effective cost
management, therefore, requires the measurement of both visible and hidden
costs. Since costs are central to the operation of any organization, the
long-term success of a company depends on its ability to manage them
efficiently, which includes recognizing and quantifying hidden costs.
This objective was
accomplished in the research, which, for the first time, introduced hidden
costs into the domain of cost accounting and management, providing a more
accurate assessment of the financial results during the study period. It is not
enough, however, to simply identify the malfunctions that lead to hidden costs.
A strategic solution must be developed and tested to address these
malfunctions, thereby increasing productivity and improving overall business
outcomes.
The proposed strategy
must be tested and validated according to the diagnosed malfunctions and the company’s
specific realities before it can be considered a viable solution. This involves
transforming the hidden costs into productive outcomes (recycling hidden
costs), thereby enhancing productivity levels across both individual workers
and the organization as a whole by improving working structures in accordance
with the proposed solution.
The title of the
corresponding article is: Predictive Testing for the Management of Hidden
Costs in Organizations, published in Volume 23, Issue 5, 2023, in a Double Blind
Peer Reviewed International Research Journal, Online ISSN: 2249-4588 &
Print ISSN: 0975-5853.
This investigation,
focusing on the diagnosis of malfunctions and the measurement of hidden costs,
alongside the development of a strategic solution, is elaborated in the
published article: Contributions of Socio-Economic Theory in Hidden Costs
Accounting in Companies and Organizations (https://doi.org/10.4236/jssm.2023.161005).
Cost management in
organizations can be compared to patient management by a physician. The
physician, after examining the patient and reviewing clinical analyses,
interprets the findings and prescribes a course of action based on the
diagnosis. The patient's progress is monitored to assess the effectiveness of
the prescribed treatment or recommended conduct.
This principle was
adapted in the research as a novel approach to cost management in
organizations. Through the services provided by the Port Company of Cabinda
(Public Company), the study diagnosed the presence or absence of malfunctions
that generate hidden costs. Using both qualitative and quantitative analysis,
the research developed and tested a strategy to address these malfunctions,
concluding that it offers an effective solution to the hidden costs identified.
Statistical predictive testing was applied to validate the solution, leading to
a comprehensive understanding of the malfunctions and hidden costs within the
organization.
II. GLOBAL MAGAZINE BLOG
Our research has been
published in the following journals and platforms:
Journal of Service
Science and Management:
2023, 16, 59-78, link, ISSN Online: 1940-9907; ISSN
Print: 1940-9893, https://doi.org/10.4236/jssm.2023.161005;
Global Journal: Volume 23 Issue 5,
Version 1.0, Year 2023, Double-Blind Peer-Reviewed International Research
Journal, Online ISSN: 2249-4588 & Print ISSN: 0975-5853;
Book published: Management of Hidden
Costs in Organizations - Lost Time, www.lisboninternational-press.com, available for corporate
and/or custom orders: [email protected].
The research was conducted to support the following key points:
a) The Role of Time in Hidden Costs:
The study of malfunctions that lead to hidden costs is intrinsically linked to the concept of time. We propose incorporating time into the central hypothesis of hidden cost analysis, asmalfunctions occur and are regulated within specific timeframes (Savall, 1975). This notion extends time management theory alongside behavioral and socioeconomic theories in the study of hidden costs.
b) Qualimetrics in Cost Management:
It is possible to develop a qualimetry based on the integration of cost and management accounting with socioeconomic theory. This enables the inclusion of both visible and hidden costs in the same analytical framework, producing results that more accurately reflect the operational reality of the company.
c) Medical Analogy in Cost Management:
We recommend adopting a
management approach akin to the relationship between a doctor and their
patient. This involves four key steps for cost management;
Situational Diagnosis:
Identifying malfunctions in the services provided;
Strategic Framework: Developing a
strategic plan to address diagnosed malfunctions;
Prescription: Formulating
solutions based on the strategic plan;
Predictive Testing: Testing the proposed solution to ensure its effectiveness.
d) Humanizing Accounting:
We advocate for advancing the humanization of accounting, starting with internal accounting. This concept is drawn from Professor Kianvu Tamo’s analogy in Epistemology of Management: Knowledge of the Complex Object (2014), which compares the structure of an organization to a living organism. Just as the human body requires care to avoid illness or death, organizations need proper management to prevent financial failure. Managers, therefore, should be seen as doctors ensuring the company’s vitality through effective cost management.
e) Filling the Gap in Cost Accounting:
Traditional accounting
often overlooks the hidden costs incurred during a company’s operations. This
gap is bridged by the socioeconomic theory developed in the early 1970s by
Professor Henri Savall, Professor Emeritus and Founding Director of ISEOR
(Socio-Economic Institute of Enterprises and Organizations) in Lyon, France.
His theory integrates hidden costs into the broader framework of cost accounting
and management.
III. SOURCE OF INSPIRATION
Our study of hidden costs
has been heavily influenced by the work of Professor Emeritus Henri Savall, the
founding director of ISEOR. Since the 1970s, he has pioneered the integration
of socioeconomic theory into the study of organizational dysfunctions and the
hidden costs they produce through the ongoing interaction between
organizational structures and informal employee behavior.
The analogy drawn by
Researcher and Professor Kianvu Tamo, likening organizations to the human
organism in terms of structure, serves as the foundation of our approach. We
assert that managers should approach cost management much like a doctor
approaches patient care. Every activity, whether personal or organizational,
involves costs, and those costs must be effectively managed for the
organization’s health and longevity.
NOTE:
I am fortunate, as are many researchers, to have had the opportunity to meet my
mentors, who continue to inspire me. In June 2023, I had the privilege of
taking a photo with them in Lyon, France.
III. TIME SPENT ON RESEARCH
While research on Socioeconomic Theory, which explores the interaction between organizational structures and the informal behavior of workers—potentially leading to either normal or abnormal (dysfunctional) functioning—began in the early 1970s, my own interest in this area started in 2014. However, the formal research process commenced in 2016 as part of my PhD thesis.
Prior to that, my research on visible costs dates back to 2010, during my tenure as a professor of Cost Accounting and Management at the Faculty of Economics, 11 de Novembro University, located in Cabinda, Angola.
IV. IDEAS FOR FUTURE RESEARCH
As the study of hidden
costs and their measurement involves indicators such as absenteeism, workplace
accidents, staff turnover, and both direct and indirect productivity, one of
the primary areas for future investigation is the average hidden cost of
absenteeism among public sector employees in Cabinda, and subsequently in
Angola. This research aims to identify the key malfunctions and the associated
hidden costs that the government assumes, with the ultimate goal of mitigating
unproductivity in the public sector and contributing to the humanization of
public services.
To facilitate this initiative,
I am coordinating the formation of a multidisciplinary team of researchers
specializing in the management of hidden costs within organizations. Our goal
is to further investigate the types of dysfunctions that occur in services
provided by organizations in Angola, as well as the levels of hidden costs
associated with these malfunctions.
V. BRIEF BIOGRAPHY
Name: Paulo Deco
Parents: Paulo Deco and Suzana Malonda
Date of Birth: May 10, 1977
Place of Birth: Cabinda, Angola
Nationality: Angolan
Marital Status: Married
Gender: Male
Education
PhD in Management (Specialization in
Hidden Cost Management), Faculty of Economics, Agostinho Neto University,
Luanda, Angola;
PhD in Science (Specialization in
Accounting), Atlantic International University, Honolulu, USA
Master’s in Management and Business
Communication Research, Faculty of Communication, Rey Juan Carlos University,
Madrid, Spain;
Bachelor’s Degree in Business
Management, Faculty of Economics, Agostinho Neto University, Cabinda, Angola.
Professional
Training
Certified Accounting Expert, Centro de
Formación Superior de Postgrado, Granada, Spain;
Course on Investment Project
Preparation and Analysis using Comfar Expert III Software, United Nations
Industrial Development Organization (UNIDO);
Training in Data Analysis using SPSS
Statistical Software;
Pedagogical and Didactic Training for
Higher Education Teaching.
Professional
Experience
Currently Assistant Professor of Cost
Accounting and Management at the Faculty of Economics, 11 de Novembro University;
Vice-Dean for Academic Affairs and
Student Life, Faculty of Economics, 11 de Novembro University;
Head of the Research Center, Faculty of
Economics, 11 de Novembro University;
Career educator and financial
consultant specializing in the preparation of investment projects
International Affiliations;
Member of the Research Committee,
Socio-Economic Institute of Companies and Organizations (ISEOR), Lyon, France,
participating annually in International Colloquia since 2021;
Member of the Global Journal of
Management and Business Research, based in the USA, since June 2023;
Member and Reviewer, International
Journal of Economics, Finance and Management Sciences (IJEFM), Science
Publishing Group, New York, USA, since April 2023.
Scientific
Publications
Author of Articles:
"Accounting: A Success Factor in
the Management and Continuity of Companies," Socioeconomicus,
Faculty of Economics, Agostinho Neto University, Luanda, Angola (2016);
"Strategic Cost Management in
Industrial and Service Organizations: The Case of Organizações Kukambo,
Lda," RECICEEUON, Cabinda, Angola (2018);
Co-Author:
"Contributions of Socio-Economic
Theory in Hidden Costs Accounting in Companies and Organizations," Journal
of Service Science and Management (2023);
"Predictive Testing for the
Management of Hidden Costs in Organizations," Global Journal of
Management and Business Research: Administration and Management (2023);
Secondary Co-Author:
"Opportunities to Instigate Youth
Skills in the Labor Market through Integrated Training," Journal of
Service Science and Management (2023).
Books
Management of Hidden Costs in
Organizations – Lost Time, 1st Edition,
Lisbon International Press, Lisbon, 2023;
Cost and Management Accounting in
Organizations – Bridging Theory and Practice, 1st Edition, B Editora, Luanda, Angola, 2024;
Guide for the Preparation of Research
Projects in Social Sciences, 1st Edition,
B Editora, Luanda, Angola, 2024.
International
Communications
"Socio-Economic Management in
Hidden Costs Accounting: Time Measurement for Unveiling the Unknown Economic
Performance of Organizations," presented at the International Colloquium
and Doctoral Seminar, ISEOR, Jean Moulin University 3, Lyon, France, June 2022;
"Interventionist Methodology:
Collection of Descriptive Phases for its Development," presented at the
International Colloquium and Doctoral Seminar, ISEOR, Jean Moulin University 3,
Lyon, France, June 2023.
National
Communications
"The Essence of Socio-Economic
Theory and Its Contributions to the Growth of the African Economy,"
presented at the Symposium of the Faculty of Economics, 11 de Novembro
University, May 2023;
Moderator, 14th Academic November
Conference, Round Tables: Logistics and Transport Systems; Commercial and
Industrial Development.
Advisor
Advisor for undergraduate theses on
Cost Accounting and Management in organizations
Advisor for Master's dissertations on
Cost Accounting and Management at 11 de Novembro University (Cabinda) and
Gregório Semedo University (Luanda).
Contact
Information
e-mails: [email protected];
[email protected]
Phone: +244 927 547 503 / +244 913
030 892
Published by Global Journals:
https://globaljournals.org/GJMBR_Volume23/7-Predictive-Testing-for-the-Management.pdf
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