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Gains from reform : Comments
By Dean Parham, published 24/11/2005Dean Parham argues economists' claims that Australia's productivity miracle is over are untrue.
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The 'quality' of management is harder to measure - although in the sense that a manager's job is efficiently to combine labour, capital and technology to produce whatever output s/he is responsible for, it might be argued that the improved rate of 'multi-factor productivity' which Dean Parham has documented elsewhere is (at least in part) the result of an improvement in managerial competence. One of the purported benefits of increasing the exposure of Australian firms to domestic and international competition is that it sharpens the incentives facing managers to improve the way in which they manage (or for them to be replaced if they don't).
Australian managers do seem rather prone to adapting the latest consultant-driven 'fads'. I've observed in my own experience and from hearing or reading about others, a strong tendency on the part of managers to call in consultants whenever there's a problem; for those consultants then to collect large amounts of data (in an attempt to quantify the unquantifiable), and trawl for ideas among the junior staff of the business concerned; to combine a few of them with whatever seemed to work at their last assignment; and then convert all that into a large book of Powerpoint slides (replete with arrows and quadrant diagrams) which management then faithfully implements.
Whether Australian managers are worse than any others in this respect, I couldn't really say.
I suspect that Australian managers are, in general, less successful than managers in many other countries in originating and commercializing new ideas.