Discuss about the Organisational Behaviour for Immigrant Selection in the OECD.
The aim of the essay is to analyse critically the key arguments of the article written by Hutchinson and Boxall (2014) regarding management skills of chief executives in New Zealand. This study highlights strengths and weakness of this article along with the central theme of the essay. The concerned article discusses on the business environment of New Zealand and present economic condition. It explores the role of the Chief executives of a business in this context. The research of Hutchinson and Boxall considers public, private and not-for-profit organisation. The article highlights challenges faced by the business in New Zealand regarding resource management. The issue of brain drain is mentioned in this article. Different aspects of this article are critically reviewed argued in the current essay.
The article of Hutchison and Boxall (2014) is a report presented on a survey conducted over 265 chief executives of New Zealand. Main question of this article is to find out the issues faced by the chief executives in the current business environment in New Zealand. The business environment faces both opportunity and threats in global business environment especially after global financial crisis during 2007-08. New Zealand economy experienced decelerated growth during that time. Economic slowdown has created uncertainty in business environment (Docquier and Rapoport 2012). Brain drain is a consequence of this uncertainty. Chief executives of business organisation are facing challenge regarding their management skills due to effect of globalisation. Therefore, the article tried to find out risks and issues faced by the chiefs of the business organisations.
It is mentioned in the article that the consequence of brain drain occurs in the economy of New Zealand as the citizens are moving more into the neighbouring country in search of better job opportunity. Primary industries, tourism sector and high value manufacturing sector are the base of the New Zealand economy. However, the New Zealander moves to the other economy to build up career in other sector. Therefore, a huge amount of brain occurs in this economy. Brain drain led to economy in resource crisis. In the view of Gibso and McKenzie (2012) as mentioned in the article, ‘The economic consequences of ‘brain drain’of the best and brightest: Microeconomic evidence from five countries’, a shortage of human resource capital or skilled labour occurs, which affect production at firm level and at national level. Hence, the chief of the business enterprise irrespective of private, public or not-for profit organisation faces problem in human resource management. This view of this reviewed article is supported in the article, “Immigrant Selection in the OECD” of Belot and Hatton (2012), government policies, lack of dynamic business environment in home country and lack of managerial capabilities among the organisational leaders are the reasons of brain drain.
As cited in the article of Marchiori, Shen and Docquier (2013), the number large firms operating in heavy industries are small in number. Moreover, the size of the large industries is not significantly large in New Zealand. The people who want to build up their career in the field of automobile, aerospace find less opportunity in New Zealand job market. Lack of favourite job suitable of their choice creates problem in talent recruitment and management in the economy. Boeri (2012) mentioned in the book “Brain drain and brain gain: The global competition to attract high-skilled migrants” that in the small and informal organisation of New Zealand, empowering style of management is followed. However, existing opportunities are not able to manage brain drain and facilitate to the business in this economy.
The analysis has some limitations. The article focuses on the globalisation effect mainly. The focus is less on the domestic competition among the business organisation. Shifts of workers across different sectors within the economy have not been discussed much in this article. The implication of the participatory management style in the organisations has not been discussed on this study.
The strong point of the article of Hutchison and Boxall (2014) is that he survey has been conducted on a large number of business executives to get a reliable analysis. Qualitative analysis of this survey has made the analysis robust. The article has highlighted several economic aspects that have impact on the domestic labour market. It has consider the effect of global financial crisis on the economy. It has clearly demonstrated lack of managerial skills of the organisational leaders. Methods of research and results have described extensively with a graphical presentation of the result. Recommendations have been made to improve management skills of the leaders.
The literature has given the view that mangers of the organisation require the capabilities to manage risks and uncertainties of the ongoing business environment. Business environment has been dynamic after globalisation. Resource mobilisation is an inevitable consequence of globalisation (Dychtwald, Erickson and Morison 2013). Therefore, business has to experience an organisational change. In order to retain human resource in business and manage complex business situation, the managers and the chief executives need political and interpersonal skills (Sharhan and Yazdanifard 2014). The article has mentioned that mangers need to have proficient to control production using limited resources.
View point
Yu et al. (2013) mentioned in the research paper that some interpersonal skills are required for the CEO to increase the profitability of the organisation in the era of globalisation and technological innovation. It is stated in this study that CEO needs to be innovative in management process. The chief of an organisation needs to be able to anticipate the possible changes in the business cycle in future and requires being strategic accordingly. An important quality of the manager is risk-taking attitude. Leaders requires to optimistic. Effective interpersonal skills of management increase the chance of profitability. If the existing employees rely on their leaders, employee turnover reduces. In the view of Cappelli and Novelli (2013), good communication and management skill of leaders can helps to grow a small business into a large one. If the scope of career development in New Zealand increases, the possibility of brain drain in the economy decreases. Collaboration and good relation with the stakeholders facilitates the business progress. CEO can take innovative initiative such as collaboration with business organisation in other countries.
Key points
The key findings of the survey is that Chief executives of New Zealand faces constrained funding due to less investment opportunity in this country. However, Knight (2015) argued that New Zealand came in the third place in Forbes’ ‘Best country for Business report’ during 2014. Business outlook of this country is prospective compared to other developed nations. Ismail, Kunasegaran and Rasdi (2014) mentioned that labour market is flexible in this economy with net positive immigration. Therefore, the review literature findings of brain drain are not the only reason for facing challenge by chiefs in managing their skills.
Falato, Li and Milbourn (2015) argued that financial crisis has important implication on business. Therefore, the chief executives of small and medium size business can take safeguard as financial management in order to protect business. The reviewed article has recommended that stability of business increase reliability of the stakeholders, which helps in business innovation. (Sharhan and Yazdanifard 2014) support this view of this article. Improvement in pay scale, scope of promotion, opportunity of favourite career choice, improvement quality of living, added facility to the employees same as offered by the multinational companies, flexible work environment can reduce the emigrant of domestic human capital in other countries. Investment in research and development by the organisation can improve the scope of learning opportunity and career growth. Opportunity to the domestic organisation for efficient resource utilisation and employing skilled labour in the production increases. Talent management is tough job for the organisation. Human talent is like an asset for the economy. They increase the value of economic product. Hence, the management of an organisation has important in this respect.
Conclusion
The essay had analysed the central concept described in the article, ‘The critical challenges facing New Zealand’s chief executives: implications for management skills’ written by Hutchison and Boxall. This article has studied the challenges faced by the chief executives of the business organisation regarding management skills in New Zealand. The article has found out the challenges faced by small and medium business organisation due to changing business environment, globalisation and technological innovation. Globalisation effect has increase the talent war among different sectors globally. Therefore, the New Zealand economy has been facing brain drain in domestic economy. Global financial crisis has significant impact on the economy of New Zealand. This event has reduced uncertainty and reliability of investment opportunity in this country. Hence, domestic people move to other countries for better opportunity. The study has found out that the main reason of brain drain is lack of career growth opportunity in the domestic economy. In order to restrict the emigration and drain of human resource, the management of business origination has significant role. Their interpersonal and communication skills, innovation and entrepreneurial skills can reduce the extent of brain drain. The current essay has critically analysed different key point of the article supported by other authors and articles in this context.
References
Belot, M.V. and Hatton, T.J., 2012. Immigrant Selection in the OECD. The Scandinavian Journal of Economics, 114(4), pp.1105-1128. [retrived from https://www.rse.anu.edu.au/researchpapers/CEPR/DP571.pdf]
Boeri, T. ed., 2012. Brain drain and brain gain: The global competition to attract high-skilled migrants. Oxford University Press.
Cappelli, P. and Novelli, B., 2013. Managing the older worker: How to prepare for the new organizational order. Harvard Business Press.
Docquier, F. and Rapoport, H., 2012. Globalization, brain drain, and development. Journal of Economic Literature, 50(3), pp.681-730.
Dychtwald, K., Erickson, T.J. and Morison, R., 2013. Workforce crisis: How to beat the coming shortage of skills and talent. Harvard Business Press.
Falato, A., Li, D. and Milbourn, T., 2015. Which skills matter in the market for CEOs? Evidence from pay for CEO credentials. Management Science,61(12), pp.2845-2869.
Gibson, J. and McKenzie, D., 2012. The economic consequences of ‘brain drain’of the best and brightest: Microeconomic evidence from five countries.The Economic Journal, 122(560), pp.339-375. [retrived from https://researchcommons.waikato.ac.nz/bitstream/handle/10289/4946/Economics_wp_1005.pdf?sequence=3&isAllowed=y]
Ismail, M., Kunasegaran, M. and Rasdi, R.M., 2014. Evidence of reverse brain drain in selected Asian countries: Human resource management lessons for Malaysia. Organizations and Markets in Emerging Economies, (1), pp.31-48.
Knight, J., 2015. Internationalization brings important benefits as well as risks. International Higher Education, (46).
Marchiori, L., Shen, I.L. and Docquier, F., 2013. Brain drain in globalization: a general equilibrium analysis from the sending countries’perspective. Economic Inquiry, 51(2), pp.1582-1602.
Sharhan, N.A. and Yazdanifard, R., 2014. Implying an International Strategic Recruitment and Its Impact on Local Workers. American Journal of Industrial and Business Management, 2014.
Yu, C.M., Piew, T.H. and Fai, F.K., 2013 Brain Drain, Talent Mobility And Academic Networking. [retrived from https://admin.umt.edu.pk/Media/Site/SBE/SubSites/JMR/FileManager/Brain%20Drain.pdf]
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