Assessing Social and Intellectual Competencies as Predictors of Managerial Performance: In Context to Manufacturing Units

Transcription

1 Assessing Social and Intellectual Competencies as Predictors of Managerial Performance: In Context to Manufacturing Units Sambedna Jena and Chandan Kumar Sahoo Abstract Organizations worldwide are focused on achieving productivity and effectiveness for their workforce. Researches on managerial effectiveness illustrates, that it is basically concentrated upon the personal attributes of an individual within a firm. The purpose of the study is to ascertain predictors for enhanced managerial performance with special emphasis on intellectual and social competencies required in manufacturing units. A self-designed pre-tested questionnaire has been used for the conduction of this study. The study has been conducted on 450 managers from manufacturing units and data was collected from them by administering a structured schedule. In total, 380 responses were obtained and were subjected to analysis using the SPSS statistical software. The result of the study showcases that intellectual and social competencies have considerable influence on the ability to be effective as a manager in an organizational setup. Index Terms Social competencies, intellectual competencies, managerial performance, manufacturing units. I. INTRODUCTION The performance of the managers is highly dependent on the level of accuracy in performing the varied duties and roles allotted to them over a period of time within an organization [1]. Reference [2] stated that, competencies are the standardised requirement of an individual, comprising of knowledge, skills and behaviour which are necessary for performing a specific job adequately as well as improves the overall individual performance within an organizational setup. According to [3], competencies are a series of behavioural patterns needed to be carried out, so as to accomplish the work process within an organization successfully. A competent workforce of an organization is directly linked to competitive advantage for an organization, as it is difficult to replicate it. The recent studies highlights the need of appropriate competencies within manufacturing industries, that are increasing across occupations due to increment in scientific and technological advances, automation, regulatory requirements and due to drive for continuous improvement. These factors are initiating the demand for enhancement and upgradation of skills for the existing workforce as well as ensures that the skills supplied by mainstream education and training are sufficient and relevant to industry requirements. This thrust for competent managerial workforce, has Manuscript received March 18, 2014; revised May 20, The authors are with National Institute of Technology/School of Management, Rourkela, India ( moony.jena@gmail.com, sahooc@nitrkl.ac.in). instigated the need to identify the essential managerial competencies that can promote managerial performance within manufacturing industries. Though the manufacturing industries have realised the importance of managerial competencies in relation to overall performance of the firm, still there is a lack of adequate measurement scale to evaluate the essential competencies directly with managerial performance. Previous literatures indicate the importance of intellectual and social competencies in improving managerial performance. The purpose of this study is to precisely examine the attributes of intellectual and social competencies that affect the managerial performance in the manufacturing units in the state of Odisha in eastern India. The current study proposes an integrated measurement scale that can evaluate the competencies in relation to managerial performance, as well as will establish a quantitative relationship that exists between intellectual and social competencies with that of enhanced managerial performance. II. LITERATURE OVERVIEW The management process is becoming increasingly dynamic and complex with time. The lower and middle level management have to bear the brunt of these changes as they are always under enormous pressure to deal with the ever changing direction from the top management as well as the aspirations of the society at large. To fit in the immediate organization environment and to fulfil their role within the organization effectively they need to undergo significant changes. According to [4], job security of an individual is now being replaced by continuous employability, which needs updated skills, knowledge and experience so as to fulfil the tasks allotted. Development and management of key managerial competencies have become the focus of much attention for research in the past few decades. Attempts have been made by numerous authors to identify a set of competencies in the areas of management development so as to further the growth of competent managers in organizations worldwide. Several taxonomies of managerial competence have been put forward, with special emphasis on the competency approach to management development [5]-[9]. Competence of an individual is distinctively associated with their ability to coordinate affect, cognition and behaviour in such as way that they can achieve a good developmental outcome at their workplace [10]. Social competencies are vital for the managerial positions as upon DOI: /IJIMT.2014.V

2 them expectations for future interaction with others is built as well as their growth index within the organization. The process of socialization within an organization aids in acquisition of knowledge about the performance benchmark, crucial employees in the organization, organizational goals and values and organizational jargons used within the organization thus helping the employee to fit in the organizational culture [11], [12]. In previous studies of social competence it has been viewed as a multifaceted construct which involves relationship building and coordination, interpersonal understanding, positive self concept and impact, persuasiveness, networking ability, etc. [13]-[15]. Though various literature reviews on social competencies, it can be deduced that there exists a positive relationship between managerial performance and social competencies in an organizational setup. H1: It is hypothesized that social competencies of participants will be positively correlated to that of managerial performance with the organization. Intellectual competencies are vital prerequisite for the acquisition of knowledge and skills that are related to actual and desired job related complexities. These competencies comprises of both cognitive and non-cognitive traits that leads towards observable individual differences in future achievements [16]-[19]. An individual s intellectual competency can be viewed as those skills and modes of thinking that are essential for assuming various roles within an organization [20]. According to [21] intellectual abilities emphasizes the pragmatic nature of cognitive constructs that is developed as a result of adaptation of an individual's abilities to the socio-cultural environments in which one resides and carries out their tasks. Researches on intellectual competencies has illustrated that it consists of various constructs such as learning orientation, technical expertise, information collection, etc. which enhances the managerial ability to maximise their performance within organization [22]-[24]. H2: It is hypothesized that social competencies of participants will be positively correlated to that of managerial performance with the organization. A. Research Objective III. RESEARCH METHOD To survive the cut throat world competition in manufacturing sector, the companies today need to remain at the top of their abilities. The companies need to produce world-class quality products and services to meet the needs of the customers effectively, which can only be achieved by competent workforce exhibiting creativity, responding to customers, continually improving processes and are able to turn company policies into action [25]. Previous research showcases that social and intellectual competencies are vital for generating performance excellence among the managers of manufacturing sector. To identify the impact of social and intellectual competencies on managerial performance, the following objectives were identified for this study: To explore the various attributes of social and intellectual competencies that are considered to be most important, for the managers to acquire within the organization. To identify which attributes of social and intellectual competencies have been considered the most significant for improving managerial performance. B. Scope of the Study This research is focused on analysing the competency portfolio of a sample of managers from manufacturing units, in order to investigate the relationship between social and intellectual competencies with that of managerial performance. The scope of the study has been limited to the middle and lower level mangers working in the manufacturing units in the state of Odisha in eastern India. C. Participants A sample of 380 respondents consisting of middle and lower level managers of National Aluminium Company Limited (NALCO) and Tata Steel Ferro Alloys Limited (T S Alloys Ltd.) situated in the state of Odisha in eastern India has been selected for the conduction of this study. Data have been tabulated in the form of tables to get a better insight of the relationship between social and intellectual competencies on managerial performance within an organisation. Out of 380 samples of managers 65% were males and 3% were females, which indicate a skewed profile of managers working in manufacturing units. D. Research Design The purpose of this study was to identify the essential social and intellectual competencies for the managers working in the selected manufacturing units. Firstly, to carry out the study, the competencies of the managers were identified. Secondly, based on the identified competencies, the level of competencies parallel with managerial performance of the respondents was evaluated. The ultimate motive of this study was to illustrate the impact of social and intellectual competencies on excelled performance of the respondents that would lead to superior organizational performance. The data was collected from the respondents with the help of a structured questionnaire. The statistical tools used for the purpose of data analysis are factor analysis and multiple regression analysis to draw the inference. E. Measures To measure the effectiveness of social and intellectual competencies on managerial performance a self-designed, pre-tested questionnaire has been implemented to collect primary data. The items of the questionnaire were tested for its reliability. The value of Cronbach alpha was found to be 0.83, which indicates that the items included in this study have a higher reliability value. Owing to the previous literature review an inventory of items were generated for each of the dimensions, were the ultimate motive was to develop a generalised instrument for the managers of the manufacturing units partaken for this study. A 20 item questionnaire was designed consisting of various attributes of social and intellectual competencies, which was measured by using a five point Likert scale (5= Strongly Agree to 1= Strongly Disagree). 165

3 F. Procedure For the purpose of data collection, the questionnaires were distributed among the employees of the manufacturing units through personal contacts, with prior permission from the organizations. A rapport was established with the respondents and the purpose of the research was briefly explained to them, so as to get reliable responses from them. The respondents were asked to fill up the questionnaire carefully and doubts were clarified whenever requested. After successful completion of the questionnaires by the respondents they were collected back and the participants were thanked for their co-operation. A total of 450 questionnaires were distributed among the managers, out of which a total of 380 useable responses were obtained. The data collected were then sorted and was set for further analysis by using SPSS 20.0 software. G. Results TABLE I: THE KMO AND BARTLETT S TEST Kaiser-Meyer-Olkin Measure of.739 Sampling Adequacy Bartlett's Test of Sphericity Approximate Chi - df Sig TABLE II: THE COMMUNALITIES TABLE Loaded Items Communalities Has a positive impact on people.770 Has the ability to persuade and influence others.787 Shows compassion and sensitivity towards the.676 feelings of others Flexible enough to share information on the work.694 setting Building of proper relationships and coordination.429 with others Negotiation with the stakeholders towards value.697 addition Develops strong network connections with others.806 Have a pleasing personality and attitude towards.771 others Maintaining of healthy interpersonal.548 understanding with others Has the ability to adapt to stressful situations.407 successfully Collection of relevant information for completion.713 of tasks Can analyze and find solutions for problems in an.798 orderly manner Can understand and utilize numerical data.604 efficiently Effectively judge the situations at hand.598 Can do proper planning to complete a task.382 successfully Always ready to learn new things and is learning.739 oriented Aware of the circumstances persisting within the.804 organization Ability to identify and integrate key external.761 factors into the work activities Has technical expertise and is computer literate.654 Capable of solving serious problems for the organization.545 Factor analysis is used to uncover the latent structure of a set of variables. It is used to determine the smallest number of factors that can best represent the inter-relationships among a set of social and intellectual competencies in relation to managerial performance within an organizational setup. Factor analysis was been chosen as a method for data reduction, since it is suitable for identifying correlation among variables in complex sets of data [26]. Kaiser- Meyer-Olkin (KMO) and Bartlett s test of sphericity were conducted to measure the sampling adequacy as shown in Table I. According to [27], a value of 0.50 or more in KMO test indicates that the data is adequate for factor analysis. Bartlett s test of sphericity relates to the significance of the study and thereby shows the validity and suitability of the responses collected for the problem being addressed through this study, as well as tests the presence of correlations among variables. A small value less than 0.05 of significance level has been recommended suitable for the study [28]. In this study the KMO measure was.739 while the Bartlett s test of sphericity indicates a significance level of Both the KMO and Bartlett s test of sphericity are found to be significant for this study. On the basis of the results it was implied that the dataset was fit for conducting factor analysis. TABLE III: FACTORS EXTRACTED THROUGH PRINCIPAL COMPONENT ANALYSIS Components Initial Extraction Sums Rotation Sums of Eigenvalues of d d Loadings Loadings Total % of Variance Cumulative % Total In this study the factors have been extracted through the principle components factor analysis method, as this method partitions the total variance of all original variables by finding the first linear combination of variables that accounts for the maximum variance. The communalities represent the amount of systematic variation for each variable that is accounted for by the set of factors in a study and the value ranges from 0 to 1. According [29], communalities with a value below.30 suggest that few variables are associated and thus a suitable factor model may not emerge. Therefore such values need to be removed from the scale. In this study all the values in the communalities (Table II) are above.30, thus indicating that % of Variance Cumulative % Total % of Variance Cumulative %

4 the variables provide a sufficient explanation for the factor solution. For instance, 80% of variance is explained by develops strong network connections with others and aware of the circumstances persisting within the organization. While, 79% of the variance is explained by can analyze and find solutions for problems in an orderly manner. Similarly, 78% of the variance is explained by has the ability to persuade and influence others. From the total variance table as shown in Table III, we get the eigenvalues which are the variances of the factors that have been extracted by using the principal component analysis method. Five factors have been extracted for this study whose eigenvalue is greater than 1, as they explain nearly 66% about the total variables taken into account. The first factor Authority and control accounts for considerably more variance than the remaining four ( % compared to %, 8.929%, 7.369% and 5.950%). The rotation sums of squared loadings shown in the table represent the distribution of the variance after the varimax rotation. Varimax rotation is an orthogonal rotation which is commonly used, as it tries to maximize the variance of each of the factors in such a way that the total amount of variance accounted for is redistributed over the five extracted factors. The five factors extracted have been renamed as Authority and control, Knowledge and recognition, Information oriented, Negotiation and relationship building and Interpersonal awareness. Table IV exhibits the factor loadings of the five extracted factors after varimax rotation. Loaded Items Factor 1: Authority and Control TABLE IV: FACTOR LOADINGS AFTER VARIMAX ROTATION Factor Loadings Has a positive impact on people.850 Has the ability to persuade and influence others.856 Shows compassion and sensitivity towards the feelings of others.718 Flexible enough to share information on the work setting.771 Factor 2: Knowledge and Recognition Always ready to learn new things and is learning oriented.843 Aware of the circumstances persisting within the organization.881 Ability to identify and integrate key external factors into the work activities.850 Can do proper planning to complete a task successfully.528 Factor 3: Information Oriented Collection of relevant information for completion of tasks.751 Can analyze and find solutions for problems in an orderly manner.876 Can understand and utilize numerical data efficiently.580 Effectively judge the situations at hand.719 Has technical expertise and is computer literate.636 Factor 4: Negotiation and Relationship Building Building of proper relationships and coordination with others.568 Negotiation with the stakeholders towards value addition.815 Develops strong network connections with others.854 Have a pleasing personality and attitude towards others.810 Factor 5: Interpersonal Awareness Maintaining of healthy interpersonal understanding with others.584 Has the ability to adapt to stressful situations successfully.571 Capable of solving serious problems for the organization.616 TABLE V(A): MODEL SUMMARY AND ANOVA FOR INTELLECTUAL COMPETENCIES Model R R Adjusted R Std. Error of Estimate Regression analysis is a statistical process which is used for estimating the relationships among variables in a study. In order to examine the extent to which the five extracted factors affect the managerial performance within an F Sig Notes: Predictors: (Constant), Authority and control, Knowledge and recognition, Information oriented and Negotiation and relationship building organization, the data is further utilized in regression for validation. The four factors Authority and control, Knowledge and recognition, Information oriented and Negotiation and relationship building are found to be significant for intellectual competencies and considered as predictors of the criterion variable (managerial performance). The model summary in Table V(A) depicts the value of R 2, which refers to the proportion of variance in the dependent variable that can be explained by the independent variable. The explanatory power of a model increases with higher value of R 2. The value of R 2 is 0.636, which indicates that 64% of the variance in the dependent variable is explained by the predictor variables. The 167

5 adjusted R 2 is an adjustment of the R 2 that penalizes the addition of extraneous predictors to the model and indicates the fitness of a model. In this model the value of adjusted R 2 is 0.631, which is close to the value of R 2 (0.636), thus indicating the fitness of the model. The standard error of estimate is which signifies that the value is good enough to imply reliable prediction of the model. The value of F is , with a significance level of (p<0.001) which indicates that the model is statistically significant. TABLE V(B): MODEL SUMMARY AND ANOVA FOR SOCIAL COMPETENCIES Model R R F Sig. Model Adjusted R Std. Error of Estimate Notes: Predictors: (Constant), Authority and control, Knowledge and recognition, Information oriented and Negotiation and relationship building TABLE VI(A): THE REGRESSION COEFFICIENTS FOR INTELLECTUAL COMPETENCIES 1 (Constant) Authority and control B Unstandardize d Coefficients Std. Error Standardized Coefficients Beta.070 t Sig..025 Collinearity statistics Tolerance 1 1 VIF 1 1 of F is , with a significance level of (p<0.001) which indicates that the model is statistically significant. The size of the coefficient for each independent variable gives the size of the effect that variable is having on the dependent variable and the sign on the coefficient (positive or negative) gives the direction of the effect. The regression coefficient table illustrates a range of unstandardised and standardised coefficients. The unstandardized coefficients indicate that how much the dependent variable goes up, on average, given that the independent variable goes up one unit. Similarly, the standardised coefficients estimates resulting from an analysis carried out on independent variables that have been standardized so that their variances are 1. Therefore, standardized coefficients refer to how many standard deviations a dependent variable will change, per standard deviation increase in the predictor variable. In Table VI(A) the highest beta coefficient is Information oriented (0.857). The t-value for the significance of each of the four predictors indicates significance at (p<0.05) levels. In the collinearity statistical test both the tolerance and VIF level is equal to 1, which indicates that there is no multicollinearity problem in this study. On the basis of the results we can conclude that the predictors extracted are significant indicators of superior managerial performance in case of intellectual competencies. Model TABLE VI(B): THE REGRESSION COEFFICIENTS FOR SOCIAL COMPETENCIES 1 (Constant) B Unstandardiz ed Coefficients Std. Error Standardized Coefficients Beta t Sig. Toler ance 1 Collinearity statistics VIF 1 Knowledge and recognition Authority and control Information oriented Negotiation and relationship building Negotiation and relationship building Interpersonal awareness The model summary in Table V(B), indicates that out of the five extracted factors only three of the factors Authority and control, Negotiation and relationship building and Interpersonal awareness are found to be significant for social competencies and considered as predictors of the criterion variable (managerial performance). The value of R 2 is 0.550, which indicates that 55% of the variance in the dependent variable is explained by the predictor variables. Similarly, the value of adjusted R 2 is 0.544, which is close to the value of R 2 (0.550), thus indicating the fitness of the model. The standard error of estimate is which signifies that the value is good enough to imply reliable prediction of the model. The value In Table VI(B) the highest beta coefficient is Authority and control (0.804). The t- value for the significance of the each of the three predictors indicates significance at (p< 0.05) levels. In the collinearity statistical test both the tolerance and VIF level is equal to 1, which indicates that there is no multicollinearity problem in this study. On the basis of the results we can conclude that the predictors extracted are significant indicators of superior managerial performance in case of social competencies. IV. DISCUSSION This study examined the relationship between social and 168

6 intellectual competencies among the middle and lower level managers of selected manufacturing units for improved managerial performance. Cronbach s alpha was used to test the coefficient of internal consistency of all the items. Since all the items were found to be highly reliable for conduction of the study, factor analysis was used for data reduction procedure. Through factor analysis, five major factors of social and intellectual competencies were extracted that influenced managerial performance significantly such as; Authority and control, Knowledge and recognition, Information oriented, Negotiation and relationship building and Interpersonal awareness. Based on the extracted factors, a factorial regression analysis was carried out. The regression analysis illustrated that both the social and intellectual competencies are positively related to managerial performance. The hypothesis one (H1) was supported by four factors namely, Authority and control, Knowledge and recognition, Information oriented and Negotiation and relationship building, while hypothesis two (H2) was supported by three of the factors namely, Authority and control, Negotiation and relationship building and Interpersonal awareness. The purpose of this study was to determine that the dimensions of intellectual and social competencies that are significantly related to excelled managerial performance. Consistent with prior literature reviews we have identified that intellectual and social competencies have a positive effect on improved managerial performance, seems to hold strong in this study as well. From this study we can infer that both the intellectual and social competencies play a pivotal role in influencing the performance of the managers within the organization and therefore it is of utmost importance that the organization realises the effect of these competencies on individual performance. A. Limitations The study has its limitations, as it has only been focused towards manufacturing units but it can also be tested for other sectors as well. Intellectual and social competencies are not the only essential managerial competencies for improved performance as many other managerial competencies influence managerial performance within an organization. The sample size taken for this study is low, as well as the sample has been selected from a particular state of Odisha in eastern India. It would be more appropriate to select a diverse sample from other states, so as to depict a clear picture for the manufacturing sector. In future studies, it would be recommended to illustrate a comparison of intellectual and social competencies on managerial performance in respect to different manufacturing units so as to extend these findings for other professionals employed in manufacturing industries. B. Implications of the Study The study extends the intellectual and social competencies literature by examining a wide range of factors which affects the managerial performance in the manufacturing units positively. The results obtained from this study has got practical implications for the manufacturing organizations interested in imparting intellectual and social competencies to the managers for improving their overall performance within the firm. These findings illustrate the major attributes of intellectual and social competencies that have been considered as most significant for superior managerial performance. From the findings we can also infer that intellectual and social competencies provide significant contribution towards managerial performance within an organization, therefore creating an opportunity for the organizations to develop consequential strategies to empower their managers, to obtain competent workforce as well as to have a competitive edge over its competitors. ACKNOWLEDGEMENT The authors would like to acknowledge for the financial support provided by Indian Council of Social Science Research, New Delhi, India, to carry out the doctoral research. REFERENCES [1] T. Ley, A. Ulbrich, P. Scheir, S. N. Lindstaedt, B. Kump, and D. Albert, Modelling competencies for supporting work-integrated learning in knowledge work, Journal of Knowledge Management, vol. 12, no. 6, pp , [2] R. E. Boyatzis, The Competent Manager: A Model for Effective Performance, 1st ed. New York, NY: Wiley Publication, 1982, ch. 1. 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