HC1052: Organisational Behaviour - Thesis Statement - Assessment Answer

Organisational Behaviour Assignment

Assignment Task

Introduction

In every organisation, there is a hierarchy of leadership from chief executives, managers and employees. However, we are going to discuss the aim of New Zealand chief executive officers and understand their greatest challenges and implications of the management system. According to Lawn, (2015, p. 48) it is important for every business environment to have skilled managerial capabilities and also understand the importance of human resource and how they support the development of a company. New Zealand is known for a small economy of almost 4.6 million people according to statistics done by Bargh, (2015, p, 55) it is also known for producing milk across the globe making it a world class player. However, organisational management in Australia started way before in the fortune global with mainly a population of almost 23 million they had eight companies. Therefore, management of organisations in Australia started way before.

However, many key players in the market like aerospace and automobiles have limited space in New Zealand because of the restrictions of entering this form of market. They are known for consumer services to advance the market and the banking sector meaning that company leadership is a primary aspect of the economy of New Zealand. The managers feel that they have helped in growing the country and are seeking advancement into migrating into a bigger economy by transfer of their offices into more major international offices. Some of the advantages of this management every company works hard to be the lead of the other hence having a high competitive to the economy and progression of the country. According to Lawn, (2015, p. 89) Lack of progress leads to high numbers of unemployment which drain the country they also require competent and skilled employees like the other world largest economy countries which drag the development of companies.

New Zealand companies and organisations also enjoy a variety of advantages because the country is less bureaucratic and the citizens have a higher job autonomy because the residents enjoy life. However, due to the management style in New Zealand, most people migrated to Australia to work in more formal organisations, therefore, having a high level of success market. According to productivity data taken by productivity performance, it shows that the country faces challenges of retaining educated people leading to less professional personnel and lacking the right skills needed for development of the country. When the skill is fetched away to other countries the economy has to stagnate, and that’s how New Zealand tripped from one of the richest countries in the 1950s. Compared to Australia the income gap was due to production, the difference in capital intensity, capital to labour ratio with the fact that Australia has higher production levels, and have larger mining and querying industries. According to Hutchinson and Boxall, (2014) the underperformance of New Zealand is due to management of the industries more than the industrial structures. Capital intensity has also played a primary role in the type and quality of the Directorate, the production process, and innovation of the industries and also the quality of labour.

In the utility and agricultural sector New Zealand are ahead of Australia because they lack the variety of resources of production and mining than Australia. According to Pool (2015, p. 13), service industry in New Zealand has a higher ration of the economy with an average growth of 3.8 % with services like retail, wholesale, finance, construction hospitality and agriculture. However, New Zealand manufacturers would improve by putting emphasis on management development of their firms. By the use of scale and ownership would cause a little difference hence big companies would be better managed because the management can still be improved with the current environment. By absorbing advanced technology and increased globalisation, it would lead to new advancements even though it would take longer time for the managers to adopt and learn new skills. If this measures would be applied before New Zealand would not be facing this major economic threat. The chief executives should understand this and implement measures to uplift the future economy and focus mainly on production by the use of new technology.

In 2012 a survey was done of more than 1000 companies’ chief executives across all the sectors from private, public and some non-profit organisations. The result showed that the management of this industry was mainly on profit maximisation. Therefore, they had proper systems to increase profits. Management of private organisation seems to be more organised according to Pool (2015, p. 45) because the system is monitored thoroughly to ensure that there are no issues in gaining the highest profits. However, the data showed that private organisations even though their chief executives properly manage them they have the highest percentage of market risks. Market risk is high due to more top competition from different competitors who would what to dominate the market. There is high engagement with the shareholders because they have to keep strategizing on the moves that they should take. The private sector has capabilities of gaining finance faster than any other sector and have a higher capability of attracting new and skilled employees and retaining them; they also rise a higher productivity to world class levels private sector has to put more efforts even in conducting of corporate social responsibilities. According to the survey quality of products is a vital key in the industry to retain the customers. However, some factors are not taken keen of, like employee health and safety, some risks related with intangible assets and also jeopardies faced by directors.

The public sector and the non-profit sector seem to have some distinct similarity with each other in New Zealand. Changes in economic climates are known to be the biggest glaring risks. McAloon (2015, p.54) states that the not-for-profit sector also has complied with the government regulations to operate in the country). They also have to identify areas where they can have profitable opportunities to help and have a risk. They also offer world class level of service because they have they know how to attract and retain skilled employees who offer best services however they do not concentrate on employees security and they foster less innovation because most of the work they do is charity.

Public and non-profits organisations also have a bit of similarity because they do not offer services for profits, however, most of this organisations depends on contracts for their income. Alone side problems of funding public sector and non-profit organisation struggle with escalating cost like compliance cost, escalating cost and regulation cost. Some of this cost means affecting the quality of a product or service because of limited funds and particular needs. The financial constraints also lead to a lack of retention of employees who would move to private sectors because of higher paying wages. According to Stewart (2012 p. 23) the data recorded shows that CSR as a relevant issue even though it is not as much as in the private sector were they have to build image to attract more customers. Public sector it is difficult to change this condition because the chief executives have limited power for governance than the private sector.

However, I believe that chief executive of the private sector has a higher chance of management and coming up with solid decisions in New Zealand than the public and non-profit sectors. Management is about expansion and coming up with new and relevant ideas for the organisation and the economy as well however to chive this point the chief executive will need to be supported by the employees and the country. However, I agree with the thesis and the data which was conducted because the private chief executive plays a major role in the adaptation of changes to the environment room for new technology to produce quality products within a short period. The non-profit and public chief executives now have to reason more imaginatively about their provision. Therefore, managers have to be more adaptable to solve problems and change the procedures of the game.

According to Ross, & Philpott, (2015 p. 42) New Zealand is a mixed economy which works on free market rules. Management is very vital to the development of the state however the chief executives have to come up with ways to get the best out of each employee to work towards a common goal. Chief executives should emphasise on the need to improve efficiency either through improvement of the current model or employment of new models of management. They should also work together to with the managers and employees to identify the waste of resources and come up with strategies to assist the economy and the country.

Conclusion

New Zealand’s chief executives always encounter stiff economic conditions due to the changing times of new technologies and current and evolving markets. The management is competitive due to lack of adequate talents to compete with the international markets. However, most private sectors are reframing their business models to compete with the moving economy while the public sector and the non-profit organisations are finding new ways to compete on the high cost of living Hutchinson and Boxall, (2014). When these issues are tackled, New Zealand will have changed its environments and be placed in the first moving economies.