Implications Of Management Skills And Competencies In New Zealand Business Sector

The Importance of Managerial Skills in Overcoming New Zealand’s Business Challenges

Discuss about the Implications of Management Skills and Competencies.

New Zealand, once the wealthiest and most advance country of the world is facing challenges in keeping up with the fast-faced global environment internationally and domestically. The case study of Netflix has brought an outcome of the reasons as to why New Zealand is facing such problems. It has emphasized on three points which include issues like brain drain, finances, the unwillingness of overseas investors, and employee retention (Zhu, 2014). The article also emphasises on the lack of managerial skills required by the leaders of the company to bring success to it. The third point emphasized by the case study is the requirement of a new business model or redesigning of the old one as per the new global changes. As per them the changing markets and technologies have led the stakeholders and funders more guarded regarding their investment and later the profit earned though it. This essay critically analyses the issues and view point on the actuality of the problems (Bagire and Namada, 2013).

The case study has concluded that there are a regular brain drain, financial issues and problem in retaining employees. The reason of these issues is the lack of opportunities in New Zealand. The economic growth of New Zealand has decreased since the global crisis of 2008-2009. Though New Zealand has come up with some primary industries to increase its economic growth but still the New Zealanders are emigrating in search of better career options. Managerial skills are required here to help the company in retaining its employees. These managerial skills are needed to be developed. Another issue is the low amount of wages that company offer to their employees, this make them go for a search of a better option outside the country. New Zealand has no or a few big industry players like manufacturing units, automobiles companies, semiconductors, or aerospace. People wanting a career in these fields have no opportunities in New Zealand so they emigrate (Tyson, 2012). Another author says that the reason for all the problems is the underperformance of the industries of New Zealand (NZIER, 2011). It is true that New Zealand is facing a lot of issues with all the sectors operating here, and measures are needed to be taken to solve these issues, or it will lead New Zealand to more economic disasters. It becomes very important for the business sector of New Zealand to work out measures that will help in bringing improvement in the current issues. As told before New Zealand does have primary industries which can be used to bring strength to the business sector of the country but they will not be sufficient to overcome the economic crises and remove all the financial issues that the country is facing. As per Yukl, it is necessary that the current situation of the country’s business sector need to be analysed and then an understanding of the managerial requirements and its development should be managed. According to him, the managerial qualities required to overcome these issues are learning to advocate the change, encourage innovation, facilitate collective learning and envision change. These behavioural changes in managerial skills will help in improving the current conditions (Yukl, 2012).

Thesis Statements

The second thesis statement emphasized by the case study is that the managers of New Zealand business sector lack effective managerial quality and to improve that the development of managerial skills in the leader becomes necessary. The case study has determined three managerial skills which can bring the maximum change in the situation of the New Zealand’s business structure. The three managerial skills are the capabilities of managing organisational renewal and uncertainty; to handle the relationship web with stakeholder a manager needs political and interpersonal skills and a skill of systematic approach in managing limited resources and people. A study conducted by Dayal Talukder, Brent Hawkins states that the managers of New Zealand believe that on the job experience is sufficient for them to perform successfully in the business and the improvement of managerial skills through coaching is not important (Talukder and Hawkins, 2014). This traditional approach of the managers needed to be changed, and they should be told that it is very much possible to develop a managerial skill in a person. The current issues of brain drain, finances, and retaining of employees and the required managerial skills are associated with each other as these are the major issues that the country is facing, and solution for removing these issues are in improving the suggested managerial skills. It is true that improving managerial skill will help in retaining employees as the manager with his skill of managing people able to retain the employee that will also decrease the problem of brain drain. Management of stakeholders and partners will handle the issue of financial problems and attract investors. The uncertainty in any business is a part that cannot be removed. Thus, the skill of managing the uncertainty is also proved to be a beneficial skill for a manager. The leadership and management skills substantially impact an organisational performance. The flourishing of innovation and skill development is only possible if the manager is skilled. They help in achieving the targets set by the company and enhance the productivity growth of it (Green, 2010). The case study has specified the few important managerial skills which majorly covers the currently identified issues. It is important that more studies take place, and all the managerial skills required for the improvement of the business sector of New Zealand are identified and added in the learning phase of the management. One such study emphasises on few keys that are necessary for a manager to have and they are integrity, honesty, trustworthiness, and creativity. This will help in enhancing the innovativeness of the business and the power to face competitions (Cumin, Talukder and Hawkins, 2012).

The Need for Effective Managerial Skills in New Zealand’s Business Sector

The third statement emphasised in the case study is the requirement of the change of business model that New Zealand business sector is following presently. As per the case study, there is a requirement of solving issues like brain drain finances, and employee retention. These problems, when diagnosed, stated that improvement in managerial skills would help in solving the issues. But, the case study clarifies further that just by improving the managerial skills will not be able to overcome the issues that New Zealand business sector is facing (Zhu, 2014). It is necessary to introduce a new business model or redesign the current business model. Managers are asked to improve their managerial skill and manage within the limited resources that are available to them which ask the business model should also change which can make the limited resources sufficient to attain the target and its procedure. The business model required here should emphasise on the phrase ‘trim the fat’ and without creating employee redundancies enhance the quality of work. This business model will include quality management, working collaboratively; enhance personal performance, and lean production (de Menezes, Wood and Gelade, 2010). Although just based on the survey of 265 chief executives it is difficult to decide the exact business model that will act the most beneficial, but focusing on the three managerial skills required and the related problems need to be solved few changes can be determined and applied in the business model. A business model defines the manner in which an enterprise works. Which means the reflection of management’s hypothesis on customer want, like how, when, and what. To meet them managerial skills are required, and therefore the proper business model is required (Teece, 2009). The new business will not only identify the managerial skills of the leader, but the ability of the entire management hierarchy will improve. Thus, the emphasis of the case study on the new business model or redesigning of the old one is very important to achieve the other two statements give in the essay. The new business model may include strategies like training, job design, improved selection, and team-building. These strategies will not only help the managers to attain the target the company has set, but the overall development of the whole organisation will take place (Kaushik, Pennathur and Barnhart, 2010).

Conclusion

This article helps in clearing a current picture of New Zealand’s current business sector. As per the article, the survey conducted includes more about 265 chief executives, whereas there are more than thousand of companies operating in New Zealand. One could not determine the correct result with only one-fourth of the actual operating organisations. Also, there is no equal ratio in sectors those who have answered the survey. A clear picture can only be attained when most of the management answers the survey and then a diagnosis is done of the factors due to which the companies of New Zealand are facing so many problems. The article to determine the issues and problems that the country is facing in the recent times, but a proper solution to any of the problems are not being suggested anywhere in the article. The best part of the article is that it has divided the issues and problems into two parts and that helps in clarifying the issues and problems in details and its outcome is well-partitioned. Thus, to conclude the exact outcome of the issues in New Zealand and finding their solution a more detailed survey is required.

References

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Cumin, D., Talukder, D. and Hawkins, B. (2012). Managerial skills and competencies in NZ o rganiz atio ns: a cause for concern. [online] www.worldbusinesscapabilitycongress.com. Available at: https://www.worldbusinesscapabilitycongress.com/wp-content/uploads/2013/01/Brent-Hawkins_ICL-Business-School_Paper_Managerial-skills-and-competencies-in-NZ-organizations-a-cause-for-concern-.pdf [Accessed 21 Sep. 2016].

de Menezes, L., Wood, S. and Gelade, G. (2010). The integration of human resource and operation management practices and its link with performance: A longitudinal latent class study. Journal of Operations Management, 28(6), pp.455-471.

Green, R. (2010). Management Matter in New Zealand- How does manufacturing measure up?. [online] worldmanagementsurvey.org. Available at: https://worldmanagementsurvey.org/wp-content/images/2010/07/Report_Management-Matters-in-New-Zealand-How-does-manufacturing-measure-up.pdf [Accessed 21 Sep. 2016].

Kaushik, A., Pennathur, A. and Barnhart, S. (2010). Market timing and the determinants of performance of sector funds over the business cycle. Managerial Finance, 36(7), pp.583-602.

NZIER, N. (2011). Working paper 2011/3 Industry productivity and the Australia – New Zealand income gap. [online] www.fedfarm.org.nz. Available at: https://www.fedfarm.org.nz/files/2011—NZIER-NZ-v-Aus-Productivity.pdf [Accessed 21 Sep. 2016].

Talukder, D. and Hawkins, B. (2014). Managerial skills and competencies in New Zealand organisations: a cause for concern: International Journal of Economics and Business Research: Vol 8, No 2. International Journal of Economics and Business Research. [online] Available at: https://www.inderscienceonline.com/doi/abs/10.1504/IJEBR.2014.064117 [Accessed 21 Sep. 2016].

Teece, D. (2009). Business Models, Business Strategy and Innovation. [online] www.businessmodelcommunity.com. Available at: https://www.businessmodelcommunity.com/fs/root/8jig8-businessmodelsbusinessstrategy.pdf [Accessed 21 Sep. 2016].

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Yukl, G. (2012). Effective Leadership Behavior: What We Know and What Questions Need More Attention. Academy of Management Perspectives, 26(4), pp.66-85.

Zhu, Y. (2014). The Mediating Effects of Managerial Skills on the Relationship Between Managerial Values, Ethical Leadership, and Organizational Reputation. Journal of Asia-Pacific Business, 15(4), pp.335-359.