Impact of Managerial Skills on the Efficiency and ... · Introduction Research Scope: The study of the impact of managerial skills on a manager’s efficiency and effectiveness according

IMPACT OF MANAGERIAL SKILLS ON THE EFFICIENCY AND EFFECTIVENESS

OF ORGANISATIONS (A CASE FOR ALBANIAN BUSINESS ORGANISATIONS)

PhD. Roland Sahatcia Prof.Asoc. Dr. Ermira Qosja Anxhela Ferhtataj

Table of Contents

Introduction

Literature Review

Methodology

Research Results

Conclusions and Recommendations

Bibliography

Introduction

Research Scope:

■ The study of the impact of managerial skills on a manager’s efficiency and effectiveness according to the levels of management in Albanian business organizations.

Research Question:

■ How do managerial skills influence the efficiency and effectiveness of managers at different levels of management?

Main Hypothesis:

■ There exists a correlation between managerial skills and a manager’s efficiency and effectiveness in accordance with the levels of management.

Literature Review

■ Robert Katz (1974) – “Skills of an effective administrator”

■ Gary Yukl (2006) –“Leadership in organizations”

■ Henry Mintzberg (2009) –“What Managers Really Do”

■ Marcus Buckingham (2009) – “What Great Managers Do”

■ Stephen P. Robbins and Mary Coulter (2012) – “Management”

■ Jack Zenger, Joseph Folkman (2014) – “The Skills Leaders Need at Every Level”

Literature Review … contd.

Researchers Research Field Research

Instrument

Study Sample

Sayed Reza Sayed Javadin,

Fereshteh Amin Maryam

Tehrani and Ali Ramezani

Study of the Relationship between Managerial Skills and

Efficiency of Bank Branches

Questionnaire 43 bank branches in the

Iranian capital, Teheran

Hoshyar Salehi, Foad

Mohammad and Hesam

Mohammadi

Study of the Relationship between Management Skills And

Customer Experience Management

Questionnaire 16 managers and 89

employees at the Bank of

Kurdistan

Maryam Hosseinpour, Leila

Tamimi, Neda Hosseinpour,

Katayon Hashami and

Somayeh Jafarzadeh

Study of the Relationship between Principals’ Management

Skills and their Effectiveness in Karaj 4th District Primary

Schools

Questionnaire 1300 teachers in Karaj

Abbas Sadeghi, Farhad

Asghari, Soheila Karami and

Atefeh Sadeghi

Survey of the Relationship between Managers’ Behavioral

Skills with their Effectiveness and Efficiency at the University

of Guilan, Iran

Questionnaire

122 employees at the

University of Guilan

Fardin Esfandnia, Mehdi

Khezeli, Ruhallah Bayat,

Shahnaz Ojaghi and Afshin

Esfandnia

Study of the Relationship between Managerial Skills and the

Effectiveness of Managers

Questionnaire 190 employees of the

Medical University at

Kermanshah

Mehmet Sami Divleli and

Ercan Ergün

Manager Effectiveness And Efficiency: The Effect Of Skills On

Different Levels of Management

Questionnaire

194 employees in Istanbul

Mojtaba Rajabi, Hadi Akbari,

Mohammad Sadegh Ghadiri

and Eman Shahraki

Study of the relationship between Management Skills and

Effectiveness in Sport and Youth Affairs Departments in

Semnan province

Questionnaire

124 managers and

experts in Semnan

Methodology

Conceptual Model:

Managerial

Skills

Technical Skills

Interpersonal Skills

Conceptual Skills

Levels of Management

Manager’s

Effectiveness

Manager’s Efficiency

Methodology … contd.

The methods used in this study are quantitative research and descriptive analysis.

Questionnaire:

■ Management Skills Assessment Instrument (MSAI), developed by Lee Collett and Carlos Mora. MSAI is used in the Management Program at the University of Michigan.

■ Consists of 94 questions, based on a five-point Likert scale ranging from “Strongly Disagree” to “Strongly Agree”, with “Disagree”, “Neutral” and “Agree” in-between.

■ The reliability coefficient, Cronbach’s Alpha, rests between the values 0.794 and 0.840.

■ The questionnaire’s link:

https://eSurv.org?s=MJLHGG_e88ccef5 -

https://esurv.org/?s=MJLHGG_e88ccef5











Methodology … contd.

The sample:

■ Among 115 managers in Albanian companies and international companies operating in Albania, the response rate was 89% = 102/115.

International corporations

19%

Large-sized companies

32%

Medium-sized companies

28%

Small-sized companies 9%

Other 12%

MANAGERS IN ACCORDANCE TO COMPANY SIZE

Top-level management

42%

Middle-level management

44%

Low-level management

14%

MANAGERS IN ACCORDANCE TO LEVELS OF MANAGEMENT

Research Results

How do managerial skills impact the efficiency and effectiveness

of managers at different levels of management?

Pearson Correlations

Technical

skills

Interpersonal

skills

Conceptual

skills

Manager’s

efficiency

Manager’s

effectiveness

Technical

skills

1

Interpersonal

skills

0.687*** 1

Conceptual

skills

0.631*** 0.623*** 1

Manager’s

efficiency

0.394*** 0.517*** 0.432*** 1

Manager’s

effectiveness

0.451*** 0.390*** 0.452*** 0.602*** 1

* p<0.05, ** p<0.01, *** p<0.001

Research Results … contd.

Main Hypothesis: There exists a correlation between managerial skills and a manager’s efficiency and effectiveness in accordance to levels of management (α=0.05).

Manager’s Efficiency Manager’s Effectiveness

Model Un-

Standard

β

Standar

d

Error

Standard

βeta

t p

Constant 1.274 0.453 2.813 0.006

Technical

skills 0.004 0.142 0.003 0.027 0.979

Interpersonal

skills 0.438 0.135 0.404 3.242 0.002

Conceptual

skills 0.189 0.124 0.178 1.528 0.130

Results of regression between managerial skills and manager’s

efficiency

Model Un-

Standard

β

Standard

Error

Standard

βeta

t p

Constant 1.161 0.495 2.346 0.021

Technical

skills 0.295 0.155 0.246 1.906 0.060

Interpersonal

skills 0.070 0.148 0.060 0.472 0.638

Conceptual

skills 0.293 0.135 0.259 2.165 0.033

Results of regression between managerial skills and manager’s

effectiveness


■ H1a: There exists a correlation between conceptual skills and a manager’s efficiency at the top-level management (α=0.05).

■ H4a: There exists a correlation between interpersonal (human) skills and a manager’s efficiency at the top-level management (α=0.05).

■ H7a: There exists a correlation between technical skills and a manager’s efficiency at the top-level management (α=0.05).

Top-level management – Manager’s Efficiency

Model Un-

Standard

β

Standard

Error

Standard

βeta

t p

Constant 1.223 0.703 1.740 0.090

Technical skills 0.014 0.244 0.012 0.058 0.954

Interpersonal skills 0.630 0.231 0.543 2.730 0.009

Conceptual skills 0.010 0.199 0.011 0.052 0.959

Results of regression between managerial skills and a manager’s efficiency at the top-level management


■ H1b: There exists a correlation between conceptual skills and a manager’s effectiveness at the top-level management (α=0.05).

■ H4b: There exists a correlation between interpersonal (human) skills and a manager’s effectiveness at the top-level management (α=0.05).

■ H7b: There exists a correlation between technical skills and a manager’s effectiveness at the top-level management (α=0.05).

Top-level management – Manager’s Effectiveness

Results of regression between managerial skills and a manager’s effectiveness at the top-level management

Model Un-

Standard

β

Standard

Error

Standard

βeta

t p

Constant 1.516 0.790 1.920 0.062


Interpersonal skills -0.021 0.259 -0.017 -0.080 0.936



■ H2a: There exists a correlation between conceptual skills and a manager’s efficiency at the middle-level management (α=0.05).

■ H5a: There exists a correlation between interpersonal (human) skills and a manager’s efficiency at the middle-level management (α=0.05).

■ H8a: There exists a correlation between technical skills and a manager’s efficiency at the middle level management (α=0.05).

Middle-level management – Manager’s Efficiency

Results of regression between managerial skills and a manager’s efficiency at the middle-level management

Model Un-

Standard

β

Standard

Error

Standard

βeta

t p

Constant 1.584 0.773 2.049 0.047

Technical skills -0.273 0.188 -0.247 -1.450 0.155




■ H2b: There exists a correlation between conceptual skills and a manager’s effectiveness at the middle-level management (α=0.05).

■ H5b: There exists a correlation between interpersonal (human) skills and a manager’s effectiveness at the middle-level management (α=0.05).

■ H8b: There exists a correlation between technical skills and a manager’s effectiveness at the middle-level management (α=0.05).

Middle-level management – Manager’s Effectiveness

Results of regression between managerial skills and a manager’s effectiveness at the middle-level management

Model Un-

Standard

β

Standard

Error

Standard

βeta

t p

Constant 1.282 0.785 1.633 0.110

Technical skills -0.036 0.191 -0.033 -0.189 0.851




■ H3a: There exists a correlation between conceptual skills and a manager’s efficiency at the low-level management (α=0.05).

■ H6a: There exists a correlation between interpersonal (human) skills and a manager’s efficiency at the low-level management (α=0.05).

■ H9a: There exists a correlation between technical skills and a manager’s efficiency at the low-level management (α=0.05).

Low-level management – Manager’s Efficiency

Results of regression between managerial skills and a manager’s efficiency at the low-level management

Model Un-

Standard

β

Standard

Error

Standard

βeta

t p

Constant 0.100 1.378 0.073 0.944





■ H3b: There exists a correlation between conceptual skills and a manager’s effectiveness at the low-level management (α=0.05).

■ H6b: There exists a correlation between interpersonal (human) skills and a manager’s effectiveness at the low-level management (α=0.05).

■ H9b: There exists a correlation between technical skills and a manager’s effectiveness at the low level management (α=0.05).

Low-level management – Manager’s Effectiveness

Results of regression between managerial skills and a manager’s effectiveness at the low-level management

Model Un-

Standard

β

Standard

Error

Standard

βeta

t p

Constant 1.580 1.077 1.467 0.173




Conclusions and Recommendations ■ Management skills have a positive correlation with a manager’s efficiency Adjusted

R2 = 0.266. Interpersonal skills have the greatest impact on a manager’s efficiency (β coefficient = 0.404)

■ Management skills have a positive correlation with a manager’s effectiveness Adjusted R2 = 0.228. Conceptual skills have the greatest impact on a manager’s effectiveness (β coefficient = 0.259).

■ Among the independent variables, the strongest correlations exist between technical and interpersonal skills.

■ At the top-management level, interpersonal skills have the strongest correlation with a manager’s efficiency (β coefficient = 0.543) and conceptual skills have the strongest correlation with a manager’s effectiveness (β coefficient = 0.118).

■ At the middle-level management, interpersonal skills have the strongest correlation to a manager’s efficiency (β coefficient = 0.488), whereas conceptual skills have the strongest correlation to a manager’s effectiveness (β coefficient = 0.356).

Conclusions and Recommendations … contd.

■ At the low-level management, technical skills have the strongest correlation to a manager’s efficiency (β coefficient = 0.592) and conceptual skills have the strongest correlation to a manager’s effectiveness (β coefficient = 1.132).

■ There exists a weak correlation between technical skills and a manager’s efficiency and effectiveness at the middle-level management, which could be a result of varied perceptions related to work position, company size or education and training.

■ At the low-level management, interpersonal skills are weakly correlated to a manager’s efficiency and effectiveness, in contradiction to the literature at hand.

■ Business organizations need to study the relationship between management skills and managerial efficiency and effectiveness through instruments analogous to the one presented in this study.

■ The results of the study demonstrate the importance of training programs to improve interpersonal skills or “soft skills”, especially for low- and middle-management.

■ Attention must be paid to the organizational structure, by aiming to make task allocation more consistent and systematic and job descriptions coherent and concise.

Bibliography

■ Buckingham, M. (2009). "What Great Managers Do". Harvard Business Review, 99-111.

■ Cameron, K. S., & Quinn, R. D. (1999). "Diagnosing and Changing Organizational Culture". Massachusetts:

Addison-Wesley .

■ Frauenheim, E. (2010, April 4). "Managers Don’t Matter". Workforce Management Online, 18-24.

■ Holcomb, T. R., Holmes Jr, R. M., & Connelly, B. L. (2009). "Making The Most Of What You Have:

Managerial Ability As A Source Of Resource". Strategic Management Journal, 457–485.

■ Katz, R. (1974). "Skills of an effective administrator". Harvard Business Review, 90-102.

■ Mintzberg, H. (2009). “What Managers Really Do”. Wall Street Journal, R2.

■ Northouse, P. G. (2010). "Leadership: Theory and practice". California: Sage.

■ Robbins, S. P., & Coulter, M. (2012). Management. New Jersey: Prentice Hall.

■ Robbins, S. P., & DeCenzo, D. A. (2008). Fundamentals of Management. (6, Ed.) New Jersey: Pearson

Education, Inc.

■ Tucker, K. A., & Allman, V. (2004). Animals Inc.: A Business Parable for the 21st Century. New York:

Business Plus. Retrieved from www.brain.gallup. com

■ Welch, J., & Welch, S. (2009, March 16). "An Employee Bill of Rights". Bloomberg BusinessWeek, 72.

■ Worldwide, W. W. (2009). “Work USA 2008/2009 Report: Driving Business Results through Continuous

Engagement”. Washington: Watson Wyatt Worldwide.

■ Yukl, G. (2006). "Leadership in organizations". New Jersey: Pearson-Prentice Hall.

■ Zenger, J., & Folkman, J. (2014, July 30). "The Skills Leaders Need at Every Level". Harvard Business

Review.

Questions?

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your attention!

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Impact of Managerial Skills on the Efficiency and ... · Introduction Research Scope: The study of the impact of managerial skills on a manager’s efficiency and effectiveness according