Local managers are ill-equipped for the Asian Century, the Australian Institute of Management (AIM) has found.
Following its latest Australian Management Capability Index (AMCI), AIM said local managers were working at only 70 per cent of their capabilities.
AMCI 2013 assessed managers in 10 areas affecting performance and profit including leadership, financial and organisation management, technology and relationships.
Under-performance was noted in a number of key areas, with Australian managers scoring only 70.3 out of 100 for their management capabilities, AIM national president Brian Nye said.
"We face serious issues unless managers improve their skills and knowledge and then apply them in the workplace," he said.
Nye said Australian managers scored worst — at 60.3 — for demonstrating international perspectives and understanding global markets and thinking.
"That level of capability means we will struggle to meet the Government's challenge to benefit fully from the Asian boom," he said.
Other areas exposed as deficient included workforce planning in the face of a looming skills shortage; more innovation in products and services; team building; and a commitment to best management practices and continuous learning.
The index revealed Australian managers were most capable in financial management and corporate governance. They also rated well for networking, customer and supplier relationships and projecting good images of their organisation.
Nye said managers should use the index to compare with global peers.
The report was compiled following an online survey of 461 chief executives from the education, business, not-for-profit and government sectors.
