MANAGEMENT TRAINING AND DEVELOPMENT: A NEW ZEALAND STUDY CHRISTOPHER SELVARAJAH RMIT University Floor 11, 239 Bourke Street Melbourne VIC 3000 Australia Tel: +61 3 9925 5588 Fax: +61 3 9925 5580 Email: christopher.selvarajah@rmit.edu.au TAMMY SUNG-WAILAU Hong Kong Bank House 290 Queen Street, Auckland New Zealand Tel: +649 308 8786 Fax: +64 9 309 6681 ROBERT J TAORMINA Massey University Private Bag 102 904, North Shore MSC Auckland New Zealand Tel: +64 9 441 8115 Fax: +64 9 441 8109 Email: R.J. Taormina@massey.ac.nz Correspondence to: C SELVARAJAH RMIT University Floor 11, 239 Bourke Street Melbourne VIC 3000 Australia Tel: +613 9925 2588 Fax: +61 3 9925 5580 Email: christopher. selvarajah @rmit. edu. au ABSTRACT Studies have shown that management training and development (MTD) can be a strategic weapon in improving performance and in building and sustaining competitive advantage. However, recent studies suggest that M T D is under-valued and under-used as a strategic tool by New Zealand firms as, despite a managerial skill shortage, New Zealand firms have not invested heavily in MTD. The present paper discusses a study of employer-based MTD in New Zealand that investigated managerial attitudes towards, and propensity to engage in, MTD. The study found several indicators that predict four MTD related variables (the MTD index, the percent of payroll spent on MTD, the increase in training expenditure and expected future increases in the MTD budget). The results suggest organisations that engage in MTD improve organisational effectiveness and implement their business strategy better and that MTD was seen as an important tool in gaining a competitive advantage. Introduction Since major economic reforms in the mid- 1980s, protectionism and certainty have been removed from the New Zealand economy (Enderick & Akoone, 1994; Bollard, 1992; Crocombe, Enright & Porter, 1991; OECD, 1991). Globalisation, increased competition, market restructuring and deregulation have changed the context within which New Zealand organisations and managers operate (Hamilton, Dakin & Loney, 1992a; Linowes & Dixon, 1992). In response, many New Zealand organisations have undergone major structural changes (Hamilton et al, 1992b; Hooley & Franko, 1990), downsizing, flat- tening organisational structures, reducing middle management layers, decentralising and devolving power and authority. Given these contextual changes, New Zealand managers have taken on a wider 28 JOURNAL OF THE AUSTRALIAN AND NEW ZEALAND ACADEMY OF MANAGEMENT - VOL 5, NUMBER 2