Organization is the workplace where number of individuals work with each other to attain and achieve a mutual goals as well as management is interested in an organization mostly from an instrumental point of view (Bustinza, Bigdeli, Baines & Elliot, 2015). The culture and the management structure have greatly affected the performance of the business which should be analysed carefully to sustain the growth of organization and their development (Lee, Kozlenkova & Palmatier, 2015). The economy of New Zealand greatly affected from the performance of the organization. In 2016, Dr. Bill Rosenberg, Economist at New Zealand Council of Trade Unions has a review that the problem of New Zealand are at a greater level due to a model which has their running along with the track of low value, poor productivity growth as well as low wages (Pearce, 2015). The productivity commission of New Zealand has also quoted that the country has low growth rates and low productivity level in aggregate in the industry level as such it shows no sign of catching up towards the higher productivity countries (Head & Alford, 2015).
In the following part, there will be detailed discussion on the major challenges faced by the organizations of New Zealand and the ways to cope up from such challenges faced by the companies.
There are number of factors that directly affect the expansion of a business in New Zealand. There are also certain challenges which are faced by most of the organizations in the country. These are explained in below points.
The consumers of New Zealand prefer or choose product or services based on the cheapest price. It greatly affected the profit margin of the companies. The New Zealand in huge market for business therefore, it increases completion in the market which squeeze the profit margin of the companies. In the recent scenario, the cost of continuing business is on the rise, many companies are still hesitate to raise the prices because they are in a fear of losing their customers (Bishop, 2015).
The small and medium sized organizations in New Zealand are greatly affected from the compliance, regulations “red tape’ of Government which created lots of pressure on these organizations. Any changes, update, or new requirement which requires the business to spend their more time or money on ensuring their comply that directly affected the quality of productivity of companies sometimes enhance their cost to implement any modifications. The legislation of Health and Safety reduced the productivity of most of the organizations (Knight, 2015).
In the country like New Zealand there is very tight flow of cash as well as limited availability of the capital for the businesses which increase the high debt in the country. The combinations of these factors tend to result the weak balance sheet as well as restrict the potential growth of the organisations. It’s depends on the SMEs to concentrate on reducing their dependency on debt as well as look are alternative such as cash flow (Fraser & Simkins, 2016).
One of the biggest issues that companies of New Zealand are facing is lack of preparedness in the succession planning looms. The owner of the companies are in a belief that they have a knowledge about the ropes but the landscape has changes such as the market of labour is tightening, issues of sustainability are becoming the main part of everyday business as well as the spending pattern of consumers are changing as the ageing population takes over. It is the biggest challenges that most of the companies are facing (Coulson, Ledwaba & McCallum, 2017).
A strong framework of governance is s one of the important factor when it comes to ensuring that enough time, energy as well as resources are invested in the developing strategies to cope up from the barriers to growth. The presence of advisory board that is able to offer external support as well as guidance and advice while holding the business accountable for taking the action across these for areas is totally invaluable in the recent growing SMEs.
The mobility of employees in New Zealand is quite high as comparison to the other countries. Retaining the talented resources is one of the biggest challenges faced by most of the organizations in the country. With the reason that mobility of employee directly affected the productivity of the companies as well as increase the cost of hiring the employees to fill the gap.
Due to the increase in mobility among employees enhance the risk for the organizations of outsourcing. The gap in skill leaded the organizations to seek the help from outside. Most of the big companies are facing the issues of outsourcing because increase in the mobility ratio provide the options for the companies to hire talented resources which increased the cost to the companies to hire new resources in the organization and a wrong decision may lead them to have great impact on the organization.
The money supply in New Zealand has been increased until the year of 2008 in September but has declined since then and in the recent it is static. The money supply is related to the ability to spend on wages and salaries. The static in money supply limit the organization to spend and survive in the competitive world at global level (New Economics, 2018)
The debt of New Zealand is growing. It increased to 15 % between the months of March to June. In the recent, it is $50,000 per person. Between the years of 2014 to 2018 it has been increased to 38 %. It brings threat to the organizations of the country to borrow the amount at higher interest rate which is the main challenge that most of the companies are facing (New Economics, 2018).
The fall in the New Zealand dollar in relation to the US dollar increase the price of imports. It greatly affected the profit margin of companies. It forced some of the organization to switch or closed from such changes in the currency rate of the country (Paul, Parthasarathy & Gupta, 2017).
There are certain ways to cope up from the challenges faced by the organizations of New Zealand. These are explained in below points.
As most of the consumers are attracted towards the product or services with the lower price, therefore, the organizations should concentrate on reduction of their manufacturing cost to increase the profit margin. It is one of the effective ways to increase the productivity of company by delivering their product or services at minimum price (Nillesen & Pollitt, 2016).
The country New Zealand has grown up with the huge amount of debt as well as the companies has also borrowed hug amount from the market at high interest rate. Therefore, the companies should measure the return on sale, asset, and investment to get knowledge about the ability to pay back the debt in the market. It would help the companies to take the decision whether to borrow the amount from outside or not.
Major companies are facing the issues of mobility or retaining of employees in the New Zealand. Therefore, the companies should improve their communication channel to enhance the retain volume of employees. The effective communication with employees is the key to the success of the organization. The feedback of manager helps the employees to grow and motivate them to work more efficiently and effectively. Clarity and consistency are essential to effective communication (Kelsey, 2015).
To retain the maximum employees in the organization, the business should concentrate on encouraging the employees to enhance their productivity by motivating them or by providing proper training time to time to their employees. It would help the companies to grow or enhance the talent of their employees which ultimately affected the productivity of the companies. The business can set small meeting with their employees to make them clear about their goals and way to achieve the goal of the organization.
The government of the New Zealand has changed their regulation and compliances according to the requirement in the country. It is not possible for the companies to monitor on the regulations of the government every time therefore, the companies should hire or connected with the authorities who can monitor and handle all compliance of the government. It would help the companies to concentrate on the productivity rather than involve in the legal issues of the government (Webster, Castellano & Onuma, 2017).
Most of the organizations in New Zealand have an issue of sustainability in their workplace. Therefore, to compete in the global as well as local market the organizations should adopt sustainability in their workplace which would help the companies to enhance the faith of customers as well as contribute towards the environment of the country.
The organizations have smart people with different perspective and experiences. The best way to overcome from the challenges is to tap that vast knowledge, working together to solve the problems. There cannot be a hierarchy, since great ideas come from everywhere. Therefore, the organizations can collaborate with their employees and other organizations to cope up from the challenges faced by the companies or organizations in the country New Zealand.
Most of the organizations in New Zealand has faced the issue in import while decrease in the currency of New Zealand. Therefore, the companies should not rely on the import system and concentrate on increase in the export system. It would help the companies to not get affected from the fluctuation in the currency rate as well as enhance the opportunity to spread their roots in the global market (Ng & Hamilton, 2016).
The pattern of consumer spending are changing therefore, achieving continues growth in the business require a proactive shift in the mind-set towards the way of business companies do with more progression in the direction of the succession planning.
The SMEs in the companies should reduce their reliance on debt as well as try to concentrate at the alternatives such as lending of cash flow; debt factoring and even should review the ratio of long term and short term debt to make a balance sheet stronger.
The companies in New Zealand are not able to earn maximum profit due to competitive environment. Therefore, to compete successfully on the price requires improvement in on-going investment in process and operation which efficiently reduce the cost of doing such business. The alternative is for the business to redeploy their proportion of selling on the quality as well as building customer tenderness.
Conclusion
From the above it can be concluded that, the change in environment has created great impact on the organizations of New Zealand. Most of the companies are not able to perform well and faced various challenges within the country. The regulation of government plays a prominent role on the growth of the businesses. The “Red Tape” policy of the government affected organisations in New Zealand at greater level, the companies needed to spend more on such compliances which affected the quality on the productivity of the companies. the consumers of New Zealand also prefer to purchase product or services at cheaper rates which affected the profit margin of the companies. The money supply of New Zealand is tight, therefore, the companies of such country needed to borrow the debt at higher rates. These things greatly affected the productivities of the companies. However, the companies need to take certain steps to cope up from such challenges. They should prepare for the changes being done in the environment. The organizations should encourage their productivity as well as monitor on the regulations by government. They should also try to reduce their cost of production to provide their products at cheaper rates to their customers which help in enhancement of their profitability. If organizations will adopt such skills, they would able to cope up from the challenges being faced by them in New Zealand.
Basic requirements for a leader or a manager are his behavioural skills, personal traits and understanding level to deal with a situation. An organization faces numerous challenges, opportunities, and issues which need to be dealt in an effective manner for minimising the impact of both challenges and issues along with enhancing organizational performance by taking benefits from the available opportunities. In this scenario, New Zealand based organizations are facing sundry challenges and issues and these are ultimately affecting organizational performance. Along with this, New Zealand based organizations are suffering from losses, due to which they are not able to expand their business in the domestic as well as in the international markets. With regards to the challenges and issues discussed in the previous assessment, one should have appropriate personal skills which could be able to solve all the challenges along with help the organization to be flexible enough to gain positive outcomes irrelevance to the type and nature of the situation (Alvesson & Jonsson, 2018).
Thus, as per my opinion, becoming self-aware is one of the pre-requisite for becoming an effective leader or manager in terms of dealing with the situation. In addition to this, it could be said that every individual has different norms due their different cultural upbringing. This also create impact over the values of individuals as behaviour and culture are the two major aspects through which leadership and managerial styles of an individual gets influenced with. Thus, I used to introspect the situation before reaching to the set of decisions which could be adopted to gain positive outcomes. In relation to this, I believe in my values as these values not only help me to take accurate decisions but these values also help me to distinguish between the right and wrong thing as per the situational requirement (Burnes, Hughes & By, 2018). These values are effective communication, relationship building, motivation, positive attitude, innovation, and confidence. My all decisions, judgments, behavioural and attitude is always influenced with these values and these help me to define my leadership style in true essence.
All these values play crucial role in the self-development and the major thing which is required for the betterment of the organization is safe and fair work environment. I believe that every individual at the workplace has its own significance and to improve their performance, I use Balance Scorecard Method which evaluates and compares every individual with their own previous performances. This helps the individuals to determine the areas of errors so that the weaknesses could be eliminated for enhancing performances as it will ultimately enhances the whole organizational performance. Following are some of my skills which are required for the betterment of organization in relevance with dealing with the challenges and issues as well as for the self-development:
Thus, I found that all these skills, attributes, and elements are essential for the self-development and these also ensure future growth and success for an individual as well as for the organization as a whole. Apart from this, I also consider acceptance of change as one of the best measure to deal with the dynamic business requirements as well as for the objective of enhancing organizational performance. In accordance to this, flexible approach needs to be communicated to all the teammates in order to encourage them towards sustainable growth and overall development (Hoch, et. al., 2018).
Every problem has solution or may be set of solutions which needs to be selected through which the negative impact of that situation could be minimised or it could be eliminated to the fullest along with attaining higher results. In the previous assessment, it has been found that New Zealand based companies are suffering from numerous issues and challenges due to which they are not able to match up with the international standards along with this, they are also not able to expand their businesses in the international markets. Major challenges faced by the New Zealand business enterprises are profitability, intense competition, regulations imposed by the government, mobility of employees, outsourcing of risk, economic conditions of organization, decreasing rate of currency, etc. (Huda, et. al., 2018).
According to my skills, attitude towards organization and other factors, I have realised that the problems and challenges faced by the companies could easily be resolved and the performance of the organizations could be enhanced. In this context, following problem solving approaches could be used for the objective of enhancing organizational performance as well as to handle the situations in an appropriate manner.
To solve the problems and challenges in an effective manner, following skills could be used for resolving the issues as well as gain positive outcomes:
Along with these skills, I also used to improve my problem solving skills and in relation to this, there are numerous methods which could be used for improving the problem solving skills. This helps me to be updated as per the recent business trends and it also makes me flexible enough to deal with the different scenarios with positive attitude. These increase my credibility in the organization and also boost up the confidence and trust level amongst the teammates. Improvement in any technique is necessary and to deal with different scenarios, different techniques need to be adopted, thus, I believe in adaptation of regular change. Following methods are being used for improving my problem solving skills:
|
Development objectives |
Undertaken activities for attaining objectives |
Support/resources |
Time |
|
Effective communication |
Appropriate and trending communication channels will be adopted |
Digital communication channels |
Throughout my life |
|
Relationship building |
One-to-one sessions will be conducted with the employees along with taking feedbacks from them |
Barriers between the top level management and employees will be removed. Employees will be asked to share their views freely so that relevant outcomes could be attained |
Throughout my life |
|
Positive attitude |
By believing in own decisions along with showing trust on others |
Performance will be analysed through self-evaluation techniques. Positive growth will lead to boost up the confidence and it will ultimately change my attitude towards dealing with the situations. |
Throughout my life |
|
Motivation |
All the motivational theories will be thoroughly revised with the objective of adopting one of the best as per organizational requirements |
I consider this as the most crucial technique and in order to keep employees motivated always, their needs and demands will be fulfilled timely. |
Throughout my life |
|
Confidence |
Believing in teammates’ capabilities along with executing all the tasks with positive attitude |
Practice sessions will be conducted under which every teammate needs to speak in front of the whole team to boost up the morale of employees. |
Throughout my life |
|
Innovation |
New ideas will be generated by analysing the current market trends and target audience’s requirements |
Relevant resources and time will be provided to all the capable employees to think out of the box. |
Throughout my life |
I consider skills, behaviour and traits of an individual very crucial in terms of be effective and efficient. These are the basic elements through which problems could easily be entertained along with gaining positive outcomes. In this context, New Zealand based business corporations were facing several challenges due to which they are not able to grow. Some of the challenges faced by them are intense competition, low spending power of consumers, market saturation, decreasing rate of country’s currency, inappropriate support from government, etc. In this regard, I have guided these organizations as per my capabilities and it might happen that given techniques did not fulfil the requirements of those organization but definitely, it will help the organizations to make themselves capable enough to deal with those challenges in an appropriate manner along with enhancing their productivity. Above table shows some of my skills which are the basic elements of my decisions and judgements and these have helped me to attain my personalised goals till now. Apart from this, I believe in change so I have made my skills flexible enough in order to deal with the dynamic business situations as well as to generate positive outcomes. So, I consider one should have appropriate personal skills like discussed above which could be able to solve all the challenges along with help the organization to be flexible enough to gain positive outcomes irrelevance to the type and nature of the situation.
References
Alvesson, M., & Jonsson, A. (2018). The bumpy road to exercising leadership: Fragmentations in meaning and practice. Leadership, 14(1), 40-57.
Bishop, R. (2015). Freeing Ourselves. Qualitative Inquiry—Past, Present, and Future: A Critical Reader, 402.
Burnes, B., Hughes, M., & By, R. T. (2018). Reimagining organisational change leadership. Leadership, 14(2), 141-158.
Bustinza, O. F., Bigdeli, A. Z., Baines, T., & Elliot, C. (2015). Servitization and competitive advantage: the importance of organizational structure and value chain position. Research-Technology Management, 58(5), 53-60.
Coulson, N., Ledwaba, P., & McCallum, A. (2017). Building resilient company-community relationships: a preliminary observation of the thoughts and experiences of community relations practitioners across Africa. Journal of the Southern African Institute of Mining and Metallurgy, 117(1), 7-12.
Crevani, L. (2018). Is there leadership in a fluid world? Exploring the ongoing production of direction in organizing. Leadership, 14(1), 83-109.
Ford, J., & Harding, N. (2018). Followers in leadership theory: Fiction, fantasy and illusion. Leadership, 14(1), 3-24.
Fraser, J. R., & Simkins, B. J. (2016). The challenges of and solutions for implementing enterprise risk management. Business Horizons, 59(6), 689-698.
Gorton, R. A., Alston, J. A., & Snowden, P. (2018). School leadership & administration: Important concepts, case studies, & simulations. McGraw-Hill Education.
Head, B. W., & Alford, J. (2015). Wicked problems: Implications for public policy and management. Administration & Society, 47(6), 711-739.
Hoch, J. E., Bommer, W. H., Dulebohn, J. H., & Wu, D. (2018). Do ethical, authentic, and servant leadership explain variance above and beyond transformational leadership? A meta-analysis. Journal of Management, 44(2), 501-529.
Huda, M., Mat Teh, K. S., Nor Muhamad, N. H., & Mohd Nasir, B. (2018). Transmitting leadership based civic responsibility: insights from service learning. International Journal of Ethics and Systems, 34(1), 20-31.
Kelsey, J. (2015). The New Zealand experiment: A world model for structural adjustment?. Willington: Bridget Williams Books.
Knight, J. (2015). Internationalization brings important benefits as well as risks. International Higher Education, (46).
Lee, J. Y., Kozlenkova, I. V., & Palmatier, R. W. (2015). Structural marketing: Using organizational structure to achieve marketing objectives. Journal of the Academy of Marketing Science, 43(1), 73-99.
New Economics. (2018). New Zealand’s Challenges. Retrieved from: https://neweconomics.net.nz/index.php/new-zealands-challenges/
Ng, P. Y., & Hamilton, R. T. (2016). Experiences of high-growth technology firms in Malaysia and New Zealand. Technology Analysis & Strategic Management, 28(8), 901-915.
Nillesen, P., & Pollitt, M. (2016). New business models for utilities to meet the challenge of the energy transition. In Future of Utilities Utilities of the Future, 283-301.
Northouse, P. G. (2018). Leadership: Theory and practice. Sage publications.
Paul, J., Parthasarathy, S., & Gupta, P. (2017). Exporting challenges of SMEs: A review and future research agenda. Journal of world business, 52(3), 327-342.
Pearce, D. G. (2015). Destination management in New Zealand: Structures and functions. Journal of Destination Marketing & Management, 4(1), 1-12.
Webster, R., Castellano, J. M., & Onuma, O. K. (2017). Putting polypills into practice: challenges and lessons learned. The Lancet, 389(10073), 1066-1074.
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