MANAGEMENT
According to studies done by Manpower Group, Panama is undergoing a serious problem with lack of adequate employees in general. In the survey conducted, 47 % of employers reported that it was difficult to find talented people in the Panamanian labor market( Caicedo). Employers claim that the only thing holding Panama back is the lack of skilled labor. These claims are supported not only by national, but also, international studies that have tested the Panamanian education system. As reported by PRS,
“ the September 2011 World Economic Forum Global Competitiveness Report ranked Panama 133 out of 142 countries for quality of education. This poor showing underscored the 2010 OECD Program for International Student Achievement( PISA) analysis, which ranked Panama second worst among participating Latin American countries.”
As far as managerial positions and management in general are concerned, Panama is going through something very close to a crisis. Recent analyses and reports suggest that almost 80 % of management positions in Panama are held by foreigners or Panamanians that have been educated outside the country. As reported by local newspaper, during a study conducted by Delloite Panama regarding human capital, 64 % of the studied companies said it was extremely difficult to fill in management positions; they were very often empty. The study also showed that most companies would depend on current employee references when looking for prospective managers. This scarcity is mainly due to a lack of analytical and numerical skills, and the inability to communicate effectively in English, which are key elements for management positions in recent times.
Management style in the country
Managers in the nation need to realize the importance of relationship building; management in Panama is all about adherence to hierarchical roles, respect to superiors, a lot of networking, and, essentially, knowing the“ important” people. Although Panama is good at adapting to change, things move at a very slow pace. Thus, change is supposed to be introduced slowly and adjustment takes time. One of the most important characteristics a manager is Panama needs to possess is patience, since the concept of time in Panama is very“ flexible.” Furthermore, management in Panama needs to be able to deal with functional silos and strong departmentalization within an organization( Kwintessential).
LEADERSHIP
Leadership is all about placing yourself in a position where others will look up and follow; the leader will show the way. It depends a lot on cultural views. This is a theory that was proven by researchers of GLOBE, a project that provided information on six“ global leadership behaviors,” namely: charismatic / value based, teamoriented, participative, humane oriented, autonomous, and self-protective. The researchers claimed that different regions and nations worldwide ranked differently on each of these styles, which meant that, for example some were more charismatic / value based, whereas others were autonomous leadership based. As indicated in their research, like most Latin American countries, Panamanian firms benefit most from leadership behaviors based on:
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Charismatic / value based leadership: this kind of leadership, as defined by GLOBE researchers,“ reflects the ability to inspire, to motivate, and to expect high performance outcomes from others on the basis of firmly held core values.” It is
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