TOPIC:

BZU, BAHADUR SUB-CAMPUS LAYYAHDEPARTMENT OF BUSINESS ADMINISTRATION

MBA 2009-12, SEMESTER 7COMPARATIVE MANAGEMENT

MANAGEMENT IN NEW ZEALANDSUBMITTED TO:Mr. HASHIM ZAMEERSUBMITTED BY: IJAZ HUSSAIN

(MB-09-27)

DECEMER 14, 2012

Acknowledgements

I am very thankful to Almighty Allah Who has given me wisdom and power to learn and seek. All praises and admirations to Almighty Allah who is the creator of everything.

Thanks also to Hazrat Muhammad (PBUH) who is source of knowledge and leadership for all mankind forever.

I am also very thankful to my beloved teacher Mr. Hashim Zameer, who is prompting us towards professionalism. Tons of thanks for his valuable support and consistent guidance.

IJAZ HUSSAINDEDICATION This

Report

Is

Dedicated

To OUR DEAR PARENTSWho are always a source of love, affection and inspiration for us.

Whose love and prayers always accompanied us and guide us like a shining star whenever we were in darkness and enable us to reach this stage.

NEW ZEALANDHISTORY

New Zealand's colourful history commences from the time when the Rangitata Land mass separates from the ancient super continent of Gondwana 80 million years ago, evolving over time to become modern New Zealand.

As Polynesians discover and settle New Zealand, thought to be sometime between 950 and 1130 AD, the Moriori people are settling, possibly around the same time, the Chatham Islands, or Rekohu, a small group of islands off the coast of New Zealand.

In 1642 the first of the European explorers, Abel Janszoon Tasman from Holland, sails into New Zealand waters. The first encounter between Mori and European is violent, leading to bloodshed. After partly charting the coastline, Tasman leaves New Zealand without ever having had the occasion to set foot ashore.

One hundred years pass by before the next Europeans arrive. In 1769 James Cook, British explorer, and Jean Franois Marie de Surville, commander of a French trading ship, both arrive by coincidence in New Zealand waters at the same time. Neither ship ever sights the other.

From the late 1790's on, whalers, traders and missionaries arrive, establishing settlements mainly along the far northern coast of New Zealand.

Wars and conflicts between Mori (indigenous people of New Zealand) tribes were always constant, and weapons used until now were spears or clubs. The arrival of traders leads to a flourishing musket trade with local Mori, who rapidly foresee the advantages of overcoming enemy tribes with this deadly new weapon. The devastating period known as the inter tribal Musket Wars commences.

Rumours of French plans for the colonisation of the South Island help hasten British action to annexe, and then colonise New Zealand. A number of Mori chiefs sign a Treaty with the British on 6th February 1840, to be known as the Treaty of Waitangi. The subsequent influx of European settlers leads to the turbulent period of the New Zealand Wars, also known as the Land Wars, which last for over twenty years. BRIEF OVERVIEW

History

Full name: New Zealand

Population: 43,73,146 (2010 estimates)

Capital: Wellington

Largest city: Auckland

Area: 268,021 sq km

Official languages: English, Mori

Major religion: Christianity

Life expectancy: 76 years (men), 81 years (women)

Monetary unit: 1 NZ dollar ($NZ) = 100 cents

Main exports: Wool, food and dairy products, wood and paper products

GNI per capita: $25,200 (World Bank, 2008)

Internet domain: .nx

International dialing code: +64

MACRO ENVIRONMENT

Political Life

Government New Zealand is a member of the British Commonwealth, and the sovereign is represented by a governor general. Within the Commonwealth, New Zealand is autonomous and is governed by a house of representatives with one hundred twenty elected members of parliament from six political parties. The present government is the first to be elected under a system of proportional representation. A clear majority under this system is unlikely, and the government usually is a coalition.

Leadership and Political Officials

The national government is divided between executive (elected) and administrative officers. It is headed by a prime minister, twenty cabinet ministers, and several ministers outside the cabinet. Below these are regional government bodies divided into cities and districts led by mayors and councillors. Government departments are run on a day-to-day basis by chief executives recommended by the state services commissioner.

Social LifeThe Privy Council in London is the final court of appeal but may deliver only an opinion, not a judgment. The New Zealand Court of Appeal is the highest national appeals court. Its findings must be observed by the High Court. The High Court holds hearings in the main centers. There are district courts (local), employment courts, family courts, youth courts, Maori land courts, and environment courts. There are also over one hundred tribunals dealing with small claims and complaints.

Community law centers, originally set up by law students, give legal advice to those who cannot afford lawyers. There are also victim support groups. The most notable effort at informal social control has been the attempt by Maori to be allowed to exercise whanau (family) authority over accused and accuser in the context of the marae, where the whanau confront each other and elders seek a settlement.

The country is divided into four police region, and there are about 6,500 full-time officers. There are seventeen armed offenders squads that are called out when firearms are involved. There is also a search and rescue service. Other than the armed offenders squad, police do not carry firearms.

Accusations of "racial bias" by police toward Maori and Polynesians have become more frequent, but attitudes toward the police vary with the social and economic circumstances of a person's life. Drug and alcohol abuse seems to be a common ingredient in a large proportion of public and domestic violence and crime.

Social Welfare and Change Programs

New Zealand has a noncontributory income support scheme for the unemployed, disabled, and sick, for domestic purposes (low income/sole parent), and for retired persons. Numerous social services are government-funded but also rely on volunteers. The numerous services (school, church, club, victim support, etc.), are coordinated as the New Zealand Council of Social Services, which lobbies for changes in government welfare programs and agencies. It stresses biculturalism. There is a no-fault Accident Compensation Corporation funded by employer and employee levies.

Nongovernmental Organizations and Other Associations

Numerous charitable trusts supported by individual donations or corporate profits fund community activities from bagpiping to creche care. There are neighborhood watch organizations. School boards serve voluntarily. There are chapters of worldwide associations such as the Red Cross, Salvation Army, Saint Vincent de Paul, Returned Services Association (veterans), and numerous charitable societies for the blind, the deaf, and the disabled. Gender Roles and Statuses

Division of Labor by Gender. The stereotype of women in the home and men in the workplace is slowly disappearing. There has been an increase in the number of de facto partnerships and a resulting lack of commitment of men financially and emotionally to children and domestic responsibility.

The Ministry of Women's Affairs seeks to enforce equal opportunity legislation. Shearing gangs are traditionally mixed (male shearers/female sorters), and trades and occupations are becoming less gender-based. There is one female bishop (Anglican), though congregations are overwhelmingly female. In 1996 there were forty women members of parliament, and in 1997 the first woman prime minister took office.

Marriage, Family, and Kinship

Marriage. Except in Muslim, Hindu and a few Chinese groups, marriages are entered into by mutual choice. Marriage may be conducted by a celebrant, a Church priest, or a vicar. Parental consent is required if a partner is under 20 years of age. De facto relationships are officially recognized for inheritance and benefit purposes. In 1996, 43 percent of males and 41 percent of females over 15 years were married. The only ground for divorce is irreconcilable breakdown, signaled by the two parties living separately for two years. Traditional weddings are still in evidence, but more people plan their own, and minorities hew to their traditional forms.

Religion

Religious Beliefs

Sixteen religious sects are representedwith the Anglican Church (18.4 percent) the largest, followed by Catholic (13.8 percent) and Presbyterian (13.4 percent). Twenty-six percent of the people have no religious affiliation. The Pentecostal, Buddhist, and Muslim religions have had the greatest degree of increase.

Religious Practitioners

Archbishops, bishops, priests, presbyters, rabbis, imams, mullahs, elders, and pastors are office holders in New Zealand branches of worldwide churches. There is one Maori church (Ratana), and Maoridom makes wide use of the sacred-secular healing and counseling powers of the tohunga , a specialist in medicine and spirit belief.

Rituals and Holy Places

Rites of the Christian calendar are observed. Cathedrals are present in every major city, and many rural areas maintain small wooden parish churches. Cemeteries are controlled by local bodies, except for Maori burial grounds. Statues of nineteenth- and early twentieth-century Pakeha public figures and war memorials are universal. Their disfigurement has become a sign of Maori protest. Waitangi has become a national memorial, as has One Tree Hill in Auckland, both marking significant events in the evolution of early MaoriEuropean relations. Birthdays, anniversaries, and deaths may be privately or publicly commemorated.

Death and the Afterlife

If embalming is not to take place, burial occurs within a day or two of death. Otherwise, funeral parlors embalm and show the body. Funeral services may be held in churches or funeral parlors. A Maori funeral ( tangi ) takes place in the marae and is a mixture of festivity and grief. Christians believe in a heaven for the afterlife (and a hell if Fundamentalist). Maori ancestors dwell after death in the ancestral lands and are

Secular Celebrations

New Year's Day, Waitangi Day, a special assembly at Waitangi of public dignitaries, the queen's birthday, and the anniversary of a province are celebrated. Legal System

Settlers also believed in the rule of law the idea that all are to be equal before the law, and that society, as a whole, is to be governed by law (rather than by rulers acting arbitrarily). Early settlers also believed that traditional British legal principles (including individual title to land) would be upheld in New Zealands new surroundings.

Protection

While states everywhere are expected to provide security for their people, settlers in new societies living on a frontier close to indigenous inhabitants with their own outlooks and expectations have a more urgent sense of the need for protection. From colonial times, New Zealanders have identified their government as a source of protection from harsh economic times as well as from other forms of danger rather than as an oppressive entity. Pkeh New Zealanders have no history of rebellion, either against British rule or against their own government. Economic System

New Zealands economic freedom score is 82.1, making its economy the 4th freest in the 2012 Index. Its score is 0.2 point worse than last year, reflecting modest declines in investment freedom and the control of government spending that offset an improvement in fiscal freedom. New Zealand is ranked 4th out of 41 countries in the AsiaPacific region, and its score is far above the world and regional averages.

New Zealands strong commitment to economic freedom has resulted in a policy framework that encourages impressive economic resilience. Openness to global trade and investment are firmly institutionalized, and the economy rebounded quickly from the global recession. A severe earthquake in 2011 in Christchurch caused only a transitory dip in healthy economic growth.

The financial system has remained stable, and prudent regulations allowed banks to withstand the global financial turmoil with little disruption. Other institutional strengths include relatively sound public finance management and strong protection of property rights. The government has delivered on its commitment to tax reform. The corporate rate was cut from 30 percent to 28 percent in 2011. A transparent and stable business climate makes New Zealand one of the worlds friendliest environments for entrepreneurs.

Background

New Zealand is a parliamentary democracy and one of the AsiaPacific regions most prosperous countries. After 10 years of Labor Partydominated governments, the National Party, led by Prime Minister John Key, returned to power in November 2008. Far-reaching economic liberalization in the 1980s and 1990s largely deregulated the economy, which is powered mainly by agriculture but also benefits from a flourishing manufacturing sector, a thriving tourism industry, and a strong renewable energy resource base. The global economic recession, however, caused a sizable financial contraction, during which the unemployment rate increased and the New Zealand dollar weakened against foreign currencies.

Open market

The trade weighted average tariff rate is competitively low at 1.6 percent, and non-tariff barriers are nominal. There are very few limitations on investment activities, and foreign investment has been actively encouraged. The well-developed financial sector offers a wide range of financing instruments. Overall financial regulations are prudent and transparent. Banks remain well-capitalized and stable.

CULTUREWhile New Zealand is culturally and linguistically part of Polynesia, forming the south-western anchor of the Polynesian Triangle, much of contemporary New Zealand culture is derived from British roots. It also includes significant influences from American, Australian and Mori cultures, along with those of other European cultures and more recently non-Mori Polynesian and Asian cultures.

Celebration of Diwali and Chinese New Year are held in several of the larger cities. The world's largest Polynesian festival, Pasifika, is an annual event in Auckland.

Food

New Zealand cuisine is largely driven by local ingredients and seasonal variations. Occupying an Island nation with a primarily agricultural economy, New Zealanders enjoy quality local produce from land and sea. Similar to the cuisine of Australia, the cuisine of New Zealand is a diverse British-based cuisine with Mediterranean and Pacific Rim influences.

Historical influences came from Mori culture, and New American cuisine, Southeast Asian, East Asian and Indian traditions have become popular since the 1970s.

Public Holidays

New Year's Day - January 1st

Day after New Year January 2nd

Waitangi Day February 6th

Good Friday varies every year

Easter Monday varies every year

ANZAC Day April 25th

Queens Birthday 1st Monday in June

Labour Day 4th Monday in October

Christmas Day December 25th

Boxing Day December 26th

Time Zones

New Zealand has two time zones.

The main Islands use New Zealand Standard Time (NZST) 6:30 hours plus IST

Chatham Islands use Chatham Standard Time (CHAST) 7:15 hours plus IST

New Zealand politics and political valuesBEING A MANAGER IN NEW ZEALANDThe business set up in New Zealand is egalitarian and to ensure successful cross cultural management it is important to remember to treat each and every person with equal respect and deference. Intercultural adaptability relies on an understanding of New Zealanders direct communication. Avoid "hard sell" techniques and do not take a relaxed attitude as indicative of a lack of attention to detail.The Role of a Manager

Cross cultural communiciation will be more effective when working in New Zealand when you remember that the most productive managers in New Zealand recognize and value the specialized knowledge that employees at all levels bring. Employees expect to be consulted on decisions that affect them and the greater good of the organization.Managers tend to be task-oriented, but do not generally micro-manage their staff. Managers emphasize achieving a goal, productivity and profits and expect their employees to do their job in a professional manner.Successful intercultural management will remember that the role of the leader is to harness the talent of the group assembled, and develop any resulting synergies.APPROACH TO CHANGENew Zealands intercultural competence and readiness for change is high. Businesses in New Zealand have a high tolerance for risk and a ready acceptance for change. The underlying mindset is that change, while difficult, usually brings improvements and that hard work and innovation will bring a better tomorrow.

Underlying this readiness for risk and change is a generally optimistic and positive mindset, which believes that hard work and innovation will bring a better tomorrow. Successful entrepreneurs who have achieved enormous wealth are admired as heroes and icons as evidence of New Zealands land-of-opportunity mythology.Approach to Time and Priorities

The expectations of intercultural expansion and global business have caused the New Zealanders to adopt relatively strict standards of adhering to schedules. Adherence to schedules is important and expected. In New Zealand missing a deadline is a sign of poor management and inefficiency, and will shake peoples confidence.

Since New Zealanders respect schedules and deadlines, it is not unusual for managers to expect people to work late and even give up weekends in order to meet target deadlines. Successful intercultural management will depend on the individuals ability to meet deadlines.Decision Making

In large companies managers tend to be task-oriented, but do not generally micro-manage their staff. They emphasize achieving a goal and productivity and expect their subordinates to do their job in a professional manner. Since New Zealanders are both egalitarian and avid sportsmen, they understand the benefits to be gained by working in teams to achieve a common goal.It is important to follow through on commitments as it fosters a feeling of trust. If you do not do what you say you will do, you will be branded as unreliable. This is true whether you are the boss, the employee, or a visiting colleague. Under promising and over delivering are keys to building trust the New Zealand way.

Managers are appointed to their positions based on their performance, trustworthiness, and honesty. Kiwis try to maintain a balanced life style, although this is becoming increasingly difficult in a global economy.

Boss or Team Player?

The egalitarian belief of New Zealanders supports a collaborative and participative management style. New Zealanders are often quite comfortable working in teams and do not expect to be singled out for their contribution.

Communication and Negotiation Styles

To ensure successful cross cultural management, you must understand that the negotiating process takes time. Do not attempt high-pressure sales tactics. Demonstrate the benefits of your services or products rather than talking about them. Start your negotiations with a realistic figure. Since this is not a bargaining culture, New Zealanders do not expect to haggle over price. Do not make promises you cannot keep or offer unrealistic proposals. Kiwis do not generally trust people who have to oversell. REFERENCES

Campbell-Hunt, C. & Corbett, L. 1996, A Season of Excellence? An Overview of New

Zealand Enterprise in the Nineties, New Zealand Institute of Economic Research,

Wellington.Inkson, K. 1987, Organisational Behaviour: A Review of New Zealand Research. New

Zealand Journal of Psychology, vol. 16, pp. 9-27.

Dvir D., Sadeh A., Malach-Pines A. (2006) Projects and Project Managers: The Relationship between Project

Managers' Personality, Project Types, and Project Success. Project Management Journal, 37 (5): 36-48.

Hofstede G. (2001). Cultures consequences. 2nd edition. Newbury Park (CA): Sage Publications.

Dholakia, R.R. (1999). Going Shopping: Key Determinants of Shopping

Behaviours and Motivations. International Journal of Retail and

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