Skills Shortage Among Chinese Business Managers: A contingency Framwork for Understanding Skills Deficiency, Mediated by management Development and Training, on Managers' and Organisational Performance

This study examined the impacts of skills deficiencies on both managers’ and organisational performance, mediated by management development and training, in organisations doing business in China. Consequently, this research built on human capital theory and the resource-based view of organisations that recognises the critical role of managers and their skills in organisations. In particular, this study determined that the established scales used for
testing the four constructs (i.e. skills deficiency, managers’ performance, organisational performance, and management development and training) are valid in a Chinese context. This was achieved through conducting factor analysis. The study also established measurement models and structural models to determine the relationshipsamong the four constructs.

Data were collected through a survey involving managers. Questionnaires were distributed by specific contacts at participating organisations, following a pilot study. Out of the 1,100 questionnaires distributed, 422 were returned, of which 405 were fully completed and usable, yielding a response rate of 36.81%.

Research on skills deficiency and its impacts on managers’ and organisational performance, especially in the Chinese context is limited. First, the current study confirmed the existence of the skills deficiencies of Chinese managers. Second, this study provided insights into the structure of scales for the four constructs, namely, skills deficiency (including the usefulness of skills and proficiency of the skills), managers’ performance, organisational performance, and management development and training, in a Chinese context, through advanced statistical modelling. These four models assist in understanding and developing frameworks related to the four constructs. Third, this study examined how individual demographic and organisational variables influence the factors of the four constructs. Results from multivariate analysis of variance demonstrate managers with different backgrounds and working in different types of organisations have different perspectives on the factors of each of the four
constructs. Finally, this study tested relationships between skills deficiency, managers’ performance and organisational performance, mediated by management development and training. All hypothesised relationships except one (the relationship between skills deficiency and management development and training) are supported, and most of the results are consistent with previous studies.

This study also presented a number of substantial implications. First, it benefits organisation and individual work on studies related to the skills of managers, the four constructs, and the relationships between the four constructs. Moreover, findings from the analysis of skills and skills deficiency, as well as management development and training, help employers and education and training agencies to design training programs. In turn, it also benefits everyone who attends those training programs. These findings contribute to human capital theory and
the resource-based view of organisations. In addition, this study contributes to practice by offering employers and managers’ a deeper understanding of managers’ and organisational performance. Overall, the findings suggest that private organisations should make serious efforts to enhance their own and their managers’ performance.

This study has several limitations that point to a number of avenues for future research. First, as with all single-country research, the results of this study may not be generalised to other countries. Therefore, there is a need for future studies to conduct similar research based in different countries. Another important limitation lies in the sample size. Although adequate for this study, the findings might vary with a larger sample. Third, this study only considered
management development and training as the mediator in the relationship with skills deficiency, management performance and organisation performance. Future research could identify and examine the mediating and moderating impacts of other influencing factors, such as organisational commitment, employee motivation and leadership.