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Cabinet is group of advisers to the head of the state who themselves are usually the heads of the administrative government departments. The New Zealand Cabinet functions as the policy and decision-making body of the executive branch within the New Zealand government system.
The cabinet is chosen by the Prime Minister, who is guided by the necessity of choosing a group that will represent the disparate elements in his party.The Prime Minister and many Ministers of the Crown serve as members of the Cabinet. All Cabinet ministers also serve as members of the Executive Council, which "advises" the Governor-General(“New Zealand Cabinet,” 2011). Cabinet itself acts as the accepted forum for establishing this framework. Ministers will jointly discuss the policy which the government as a whole will pursue, and ministers who do not exercise their respective powers in a manner compatible with Cabinet's decision risk losing those powers. This has become known as the doctrine of collective responsibility. Problems arise when the Prime Minister breaches collective responsibility. Since ministerial appointments and dismissals are in practice in the hands of the Prime Minister, the Cabinet can not directly initiate any action against a Prime Minister who openly disagrees with his government's policy. On the other hand, a Prime Minister who tries to act against concerted opposition from his Cabinet risks losing the confidence of his party colleagues.

The Prime Minister of New Zealand is New Zealand's head of government consequent on being the leader of the party or coalition with majority support in the Parliament of New Zealand. Since 19 November 2008, the Prime Minister has been John Key of the National Party("Prime Minister of New Zealand," 2011).
The role of the Prime Minister is not formally defined, being based on constitutional convention rather than specific legislation. According to these conventions, the Prime Minister is leader of Cabinet (itself a body existing by convention), and takes a co-ordinating role.
The Prime Minister is regarded by convention as "first among equals". He or she does indeed hold the most senior post in the administration, but is also required to adhere to any decisions taken by Cabinet.

The prime minister can call him Governor-General advised him to dissolve parliament.The Prime Minister also indirectly holds the power to appoint and recall the Governor-General, As long as the prime minister has support in the house of representatives, although this force never resolution in New Zealand have done.




References:

I'd like my references right here:
New Zealand Cabinet. (2011). Retrieved March 28, 2011, from Wikipedia: http://en.wikipedia.org/wiki/New_Zealand_Cabinet
Prime Minister of New Zealand. (2011). Retrieved March 28, 2011, from Wikipedia: http://en.wikipedia.org/wiki/Prime_Minister_of_New_Zealand

Written by X,L(Wendy)