The management of managers: challenges in a small economy

Abstract

PurposeThe purpose of this paper is to discuss the findings of a study of the management of senior managers. The aim is to describe the ways in which firms in a small economy, such as New Zealand, manage their managers and analyse how they deal with the strategic challenges that are involved.Design/methodology/approachThe study applies the Boxall and Gilbert typology of company styles in the management of senior managers. A case‐study approach is used with data collected through interviews with directors, chief executive officers and senior managers in firms chosen as characteristic of New Zealand conditions.FindingsThe case studies confirm the main expectations of the model: difficulties with the recruitment and retention of talented managers are severe in New Zealand, overshadowing all other problems, such as “agency” risks. The findings underscore the need for boards of directors to take a more proactive and comprehensive approach to the management of managers.Research limitations/implicationsLimitations of a qualitative, case‐based approach are acknowledged. However, the intent is to discern and analyse patterns and problems in a particular societal context. There is ample scope for similar studies in other contexts.Practical implicationsThe study underlines the challenges firms in small economies can face in securing, developing and retaining a credible senior management team and suggests ways in which firms may approach these problems more effectively.Originality/valueThe paper presents an original study of how firms manage senior managers and uses a novel framework in drawing together themes from organisational economics, human resource development and strategic human resource management to provide an integrated analysis of how managers are managed.

The critical challenges facing New Zealand's chief executives: implications for management skills

“…In this context, it is commonplace for New Zealand managers to feel they have outgrown the country, and to seek advancement by emigrating to a larger economy or by transferring from the New Zealand branch of an international firm to one of its much larger international offices (Gilbert and Boxall ). Lack of progression to the ‘really big jobs’, and the absence of the kind of highly specialised roles available in the world's largest economies, make recruiting and retaining management talent a fundamental problem.…”

“…On the other hand, New Zealand organisations do have some advantages. They are less bureaucratic, tend to provide individuals with greater job autonomy, and can argue that New Zealanders have an enviable quality of life (Gilbert and Boxall ). An empowering kind of management style seems to be commonplace in New Zealand's smaller, more informal organisations (Macky and Boxall ).…”

Information Problems and Company Behaviour vis‐à‐vis Continuous Management Training

“…Most attention on human resource management has focused on the nonmanagerial workforce. Research on the management of managers, meanwhile, is much more limited (Gilbert & Boxall, 2009). Specifically, the main conclusion of this work is that the provision of information on the characteristics of both managers and available training offerings, determines a firm's readiness for continuous training.…”

Studying Effectiveness of Human Resource Management Actions and Organizational Agility

“…Human resource management should direct the process of transformation in the organization by means of efficient human capital management through playing new roles and help the organization achieve competitive advantage by relying on their capabilities (Noe et al, 2006). Clearly, effectiveness of human resource management system in each organization depends on several factors that are different in various environmental and organizational conditions (Yeganeh and Su, 2008;Okpara and Wynn, 2008;Antwi and Analoui, 2008;Gilbert and Boxall, 2009).…”