The Impact of Management Development on Perceptions of Organizational Performance in some New Zealand firms Dr Damian Ruth & Associate Professor Andrea McIlroy Department of Management and Enterprise Development Massey University Wellington
[email protected] Ruth01 Page 1 of 19 The Impact of Management Development on Perceptions of Organizational Performance in some New Zealand firms ABSTRACT This paper explores the impact of management development (MD) on perceived organizational performance in some New Zealand-owned or controlled firms. Paired interviews were conducted with Human Resource Managers (HRMs) and Line Managers (LMs) from 86 firms (172 interviews in total) in manufacturing/processing, distribution/transport, and services, varying in size from 20 to more than 500 EFTs. The findings indicate there is a positive correlation between both organizational fit and LMs’ perceived importance of MD and established criteria of firm performance; they do not support a positive correlation between strategic fit and firm performance. Whilst turnover, size, and sector may explain some variance in perceptions of organizational performance, the way management development is organizationally integrated appears to be crucial. Keywords: management development, HRM, firm performance, New Zealand INTRODUCTION In the face of globalisation and increasingly competitive economies, the Ministry of Economic Development of New Zealand (Massey et al, 2004) and the New Zealand Department of Labour (2004), as well as The New Zealand Institute of Management (2001; 2003) and the Human Resources Institute of New Zealand, have directed more and more attention to management development (MD). There has been much growth in business education and in management development area, and research on MD in New Zealand continues to seek refinement, especially in terms of evidence of positive impact on firm performance.