A MODEL OF MANAGERIAL COMPETENCIES BASED ON EVIDENCE FROM COUNTIES OF SATU MARE AND BIHOR, ROMANIA

Abstract

The paper explores the managerial competencies of human resources in the companies from the counties of Satu Mare and Bihor. A model of these competencies is provided also, according to the identified relationships between various managerial competencies. Data were collected by applying a questionnaire to 114 companies located in the counties of Satu Mare and Bihor, within the project HURO/0901/264/2.2.2 implemented in partnership by "Vasile Goldis" Western University and University of Debrecen and financed by European Union through ERDF under Hungary-Romania 2007-2013 Programme. They were processed and analyzed by using the SPSS soft.

Headnote

Abstract

The paper explores the managerial competencies of human resources in the companies from the counties of Satu Mare and Bihor. A model of these competencies is provided also, according to the identified relationships between various managerial competencies. Data were collected by applying a questionnaire to 114 companies located in the counties of Satu Mare and Bihor, within the project HURO/0901/264/2.2.2 implemented in partnership by "Vasile Goldis" Western University and University of Debrecen and financed by European Union through ERDF under Hungary-Romania 2007-2013 Programme. They were processed and analyzed by using the SPSS soft.

Key words: human resources, management competencies, model of competencies

1. Introduction

Managerial competencies are critical for business success and used in the daily business practice as driven forces for performance on the market and to reach the company's goals.

The aim of the paper is to provide a model of managerial competencies, as it is resulted from the investigation of employers' opinion from the counties of Satu Mare and Bihor, regarding the use of such competencies.

In the surveyed counties, Satu Mare and Bihor, located in the proximity of the Hungarian border, the most representative economic sectors are: agriculture, forests and fishery, trade and car repair, constructions, hospitality industry, financial services, education, public administration and defence. Employers from these sectors were interviewed regarding several aspects related to their human resources and human capital in order to find the practices and their efficiency in relation to the business sector.

The paper is organized as follows: the theoretical framework is defined in the first section and the methodology of the study is described in the third section. The main findings are exposed in the fourth section and the final section is dedicated to Discussion and conclusions.

2. Theoretical framework

McClelland first introduced in 1973 the competency concept. Competency is the ability and capability of an individual to perform better in a given situation. According to McClelland, it is more important testing for competencies than testing for intelligence. After the publication of McClelland's article, numerous authors focused on the competency concept, resulting in lots of different definitions. For example, Boyatzis (1982), views competence as "an underlying characteristic of a person, which results in effective and/or superior performance in a job". Other authors as, Spencer and Spencer (1992, 1993) opined that competence means the characteristic feature of individual to perform best in a given situation.

The concept of competence is describing essential human knowledge, attitudes, and skills at work; it is focused on the relation between person and work (Sandberg, 2000). Competencies are assumed to be recognizable, assessable, and relevant for practice (Caird, 1992). Moreover, competencies can be developed, learned, and described at different levels, and are supposed to have a strong relationship with organizational effectiveness (Prahalad and Hamel, 1990).

The personal characteristics that facilitate high performance (and that are therefore part of individual competence) include motivation, disposition, self-image, values, moral standards, norms of social behaviour, and traits, as well as communication, general reasoning, and learning capabilities (Bergenhenegouwen et al. 1996; Rothwell and Lindholm 1999).

Competencies are components of a job, which are reflected in behaviour that are observable in a workplace. The common elements most frequently observed are knowledge, skills, abilities, aptitudes, personal suitability, personal suitability behaviour and impact on performance at work.

Competencies are the skills, knowledge, abilities and other characteristics that are required to perform a job effectively (Jackson & Schuler, 2003).

The dominant view in managerial practice assumes competencies are "universal" constructs whose meaning is independent from the specific organizational context in which they are activated and developed (Sandberg, 2000; Delamare Le Deist and Winterton, 2005). In line with this approach, competence is viewed as a specific set of attributes, combining functional competence (knowledge and skills) and behavioural competence (metacognition and attitudes) (Delamare Le Deist and Winterton, 2005). Consequently, competence is defined as the integrated set of knowledge, attitudes, and skills of a person (Mulder, 2007).

For the purpose of our study, by managerial competencies we understand a mixture of functional competencies (decision taking, strategy setting) and behavioural competencies (relationships, leadership, learning from own errors, capacity to motivate, influencing of others, focus on results and processes, ethical behaviour) which will be investigated in the practice of employers from Satu Mare and Bihor counties.

3. Methodology of the study

The study is based on data collected during the implementation of the project entitled "The impact of human capital quality on social and economic cohesion in the border area", HURO/0901/264/2.2.2 carried out by the "Vasile Goldis" Western University of Arad in partnership with the University of Debrecen, co-financed by the European Union trough the ERDF under the 2007-2013 Hungary-Romania Cross Border Cooperation Programme. Within this project, a research was conducted by experts from the two universities regarding the human capital in the border area and its impact on economic and social development. The field component of this research included to carry out an inquiry based on questionnaire applied to a number of 114 organisations from the counties of Satu Mare and Bihor. The questionnaire had 61 items regarding various aspects of human resources and their human capital in these organisations and was applied to employers from the target area.

For the purpose of this study it was selected from the questionnaire the item related to managerial competencies. The employers were asked to evaluate the intensity of use of listed managerial competencies through a scale, from 1-weakly to 5-very intensively and the question was: Which are the competencies specific to your employees, by their intensity? The managerial competencies are listed in the Table 1.

The data were processed by SPSS and the results displayed in Table 2 and Annex 1a and 1b.

The study was carried out in two stages. In a first stage, the intensity mean scores of using of K1-K9 managerial competencies in the 7 activity sectors were calculated (Table 2) and discussed their statistical significance. In a second stage, we proposed a hypothetical model of managerial competencies and we tested it by using Anova test for the significance of correlations and influences between variables.

We assume that ethical behaviour of managers is the result of leadership skills, relationships, focus on results and processes and capacity to motivate and learning from own errors. We also assume that leadership skills are significantly influenced by relationships, focus on results and processes, learning from own errors, influencing of others, capacity to motivate and strategy setting. The ability to motivate influences the decision taking process, leadership skills and ethical behaviour of managers. Learning from errors can influence the ethical behaviour and leadership skills. Relationships developing and maintaining are supporting leadership skills and ethical behaviour. A focus on results and processes is an advantage for a leader, it is helpful in strategy setting and can contribute to an ethical behaviour of managers. Influencing of others is a useful skill for a leader and in decision taking process.

According to these considerations, we used the following hypotheses:

H1. K1-leadership is significantly associated to K9-ethical behaviour;

H2. K2- relationships is significantly associated to K9-ethical behaviour,

H3. K3-focus on results and processes significantly associated to K9-ethical behaviour;

H4. K4- ability to motivate significantly associated to K9-ethical behaviour;

H5. K5-learning from own errors is significantly associated to K9-ethical behaviour;

H6.K4 -ability to motivate is significantly associated to K1-leadership;

H7. K3-focus on results and processes is significantly associated to K1-leadership;

H8. K4-ability to motivate is significantly associated to K7-decision taking;

H9. K5-learning from own errors is significantly associated to K1-leadership;

H10.K8-strategy setting is significantly associated to K1-leadership;

H11.K2-relationships are significantly associated to K1-leadership;

H12. K3-focus on results and processes is significantly associated to K8-strategy setting;

H13. K6-influencing of others is significantly associated to K1-leadership;

H14.K7-decision taking is significantly associated to K8-strategy setting;

H15.K6-influencing of others is significantly associated to K7-decision taking.

The hypothesized model of managerial competencies is presented in Figure 1.

The assumptions were based on the one hand, on personal experience of authors, gained from human resources practices and previous research, and on the other hand, on the mean scores, calculated in the first stage.

4. Main findings

4.1. Mean scores and their statistical significance

As we can notice in Table 2, the best valued is the ethical behaviour (K9) with a mean score of 4,44.This competency has the lowest score in public administration and health and social assistance sectors and the highest score in soft industries such as: ICT, financial activities scientific/technical activities, art and leisure.

The leadership (K1) has a maximum level of 5 in scientific/technical activities and the minimum level is registered in health and social assistance sector. Relationships development and maintaining (K2) is intensively used in ICT sector, scientific activities and hospitality industry. Low levels of its use are registered in sectors as: public administration and production/services for own consumption. Focus on results and processes (K3) is mainly very well appreciated in scientific activities and in production/services for own consumption sector as well as in electricity, gas and air conditioning sector. Agriculture is the sector with the lowest interest on this competency. Ability to motivate (K4) is the best promoted in scientific activity and it is used rarely in the public sectors such as: public administration and health and social assistance. Learning from own errors (K5) is intensively used in scientific activities and in hospitality industry and it is not valued in public sectors. Influencing of others (K6) has the highest value in scientific activities and the lowest in electricity, gas and air conditioning sector. Decisions taking (K7) has low levels in agriculture and public sectors. Strategy setting (K8) has low levels in the same sectors.

We intend to find out if there are significant differences between activity sectors as regards to the intensity level of use of various management competencies. By using the ANOVA test, we obtained the results displayed in the Annex 1.

We notice that there are statistically significant differences between activity sectors for K1-leadership, K2-relationships developing and maintaining, K4-ability to motivate, K5-learning from own errors, K7-influencing of others, K8-strategy setting and K9-ethical behaviour. For these variables the value of Sig is under 0,05 (the significance threshold). For K1, the association between this variable and the activity sector variable is strong, the correlation coefficient is 0,52. We can explain the variation of K1 in a proportion of 27% through the variation of variable related to activity sector (KS).The association between K2 and variable of activity sector (KS) is moderate (the eta coefficient is 0,499) and 24,9% of the variation of K2 is due to the variation of variable related to activity sector (KS). K4 is strongly associated to KS, the eta coefficient is 0,514 and K3 varies in a proportion of 26,5% due to the variation of KS. K5 is moderately correlated to KS, the eta coefficient is 0,498 and we can interpret 24,8% of K5 variation as a result of KS variation. K7 is moderately associated to KS (the eta coefficient is 0,504) and 25,4% of its variation is generated by the KS variation. K8 is strongly correlated to KS and the variation of K8 is due in a proportion of 26,6% to the variation of KS. Finally, K9 is moderately associated to KS and in proportion of 25,4% its variation can be explained by the variation of KS.

These significant differences between activity sectors regarding the use of managerial competencies reflect the specific orientation of managers to use certain competencies at work. For example, in scientific activities, managers are more tempted to use at maximum all management competencies, but in education sector, only leadership, relationships development and maintaining, strategy setting and ethical behaviour are intensively used. In public sectors as public administration and health and social insurance and in agriculture the intensity of use of managerial competencies is very low.

We notice also that these significant differences show the organizational differentiation across activity sectors where interviewed companies are active. In soft industries as ICT, scientific activities, arts and leisure the managerial competencies are very well valuated in practice, while in public sectors (public administration, health and insurances) and agriculture they have a low intensity of use (the mean score is between 2-3 from a maximum of 5).

4.2. The model of management competencies

By following the assumed connections between variables (K1-K9) we tested them, verifying if our hypothesis are confirmed. We used the Anova test from SPSS soft. The results are displayed in the Annex 2.

According to the testing results, the hypotheses 3, 11,12,13,14 and 15 cannot be confirmed because the associations between the mentioned variables are not significant for a significance threshold of 5%. The confirmed model of competencies, presented in Figure 2 shows the significant correlations between the 9 variables.

Hypotheses H1, H2, H4, H5, H6, H7, H8, H9 and H10 are confirmed (see Annex 2). We found positive, strong and significant correlations between the following variables: K1-K9, K2-K9, K4-K9, K5-K9, K4-K1, K3-K1, K4-K7, K5-K1, K8-K1.

Hypothesis H1 is confirmed: there is a positive correlation between K1-leadership and K9-ethical behaviour (eta coefficient is 0,97) and in a proportion of 97,5 % the ethical behaviour is determined by leadership skills, considering constant other factors.

Hypothesis H2 is confirmed: there is positive association between K2-relationships and K9-ethical behaviour, and in a proportion of 86,2% the ethical behaviour can be influenced by relationships, if other factors are constant.

Hypothesis H 3 is not confirmed: there is a positive strong correlation between K3-focus on results and processes and K9-ethical behaviour (the eta coefficient is 0,92), but it no significant (the value of Sig is higher than 0,05).

K4-capacity to motivate is strongly and positively associated with K9-ethical behaviour, the eta coefficient is 0,99. Thus, the hypothesis H4 is confirmed and in proportion of 98,9% K9 is influenced by K4 (if other factors are constant).

We found a strong and positive correlation between K5-learning from own errors and K9, the correlation coefficient is 0,93 and we could explain K9 through the 87,2% variation of K5 (if other factors are constant). The H5 hypothesis is confirmed.

The H6 hypothesis also is confirmed due to the fact that the correlation coefficient between K4- capacity to motivate and K1-leadership has the value of 0,95 and in a proportion of 92% we can explain K1-leadership through the variation of K4-capacity to motivate (other factors being constant).

K3-focus on results and processes influences significantly K1-leadership, the correlation coefficient is 0,93, the H7 hypothesis is confirmed and the variation of K1 can be explained through the variation of K3, in a proportion of 87,4% (if other factors are constant.

K4-capacity to motivate is strongly and positively associated to K7-influencing of others, the eta coefficient is 0,91, the H8 hypothesis is confirmed and we can explain the variation of K7 trough the variation of K4, in a proportion of 84% (if other factors are constant).

Hypothesis H9 is also confirmed, K5-learning from own errors positively and strongly influences K1-leadership (the eta coefficient is 0,91) and the variation of K1 is due to the variation of K5 in a proportion of 84% if other factors are constant).

K8-strategy setting is strongly associated to K1-leadership, the H10 hypothesis is confirmed and we can explain the variation of K1 through the variation of K8 (if other factors are constant).

There are two main findings generated by the study to be mentioned: (i) the antecedents of K9-ethical behaviour and (ii) the antecedents and consequences of K1-leadership skills. Firstly, ethical behaviour is significantly determined by leadership, relationships, capacity to motivate and learning from own errors. Secondly, at its turn, leadership is significantly influenced by relationships, focus on results and processes, capacity to motivate, learning from own errors and strategy setting and can explain the ethical behaviour. These findings suggest us that managerial competencies are poly-valent or at least, bi-valent. Some examples: learning from own errors can directly influence the ethical behaviour or indirectly, by influencing the leadership skills; capacity to motivate can influence directly influence the ethical behaviour or indirectly through leadership skills.

5. Discussion and conclusions

The paper aimed at highlight a model of management competencies based on evidence from companies of Satu Mare and Bihor counties.

We found that the most valuated managerial competency is the ethical behaviour, followed by relationships developing and maintaining and leadership skills. This result reflect the propensity of employers rather to soft skills than to strategy setting or decision taking skills, known as specific managerial skills in the classical theories of management.

We found also a significant differentiation across activity sectors where interviewed companies are active. In soft industries as ICT, scientific activities, arts and leisure the managerial competencies are very well valuated in practice, while in public sectors (public administration, health and insurances) and agriculture they have a low intensity of use.

In the confirmed model of managerial competencies we identified two main critical managerial competencies, ethical behaviour and leadership which are strongly associated and the most connected with other competencies. The model explains the antecedents of ethical behaviour (which can explain it) and antecedents (explanations) and consequences (effects) of leadership.

This study makes an important contribution by examining the antecedents of the ethical behaviour of managers and of their leadership skills based on evidence from the counties of Satu Mare and Bihor. We provided two insights regarding the ethical behaviour - as most valued competency in the view of interviewed managers: the ethical behaviour can be explained by leadership, relationships, capacity to motivate and learning from own errors and at its turn, leadership behaviour originates from relationships, focus on results and processes, capacity to motivate, learning from own errors and strategy setting.

The confirmed model of managerial competencies is useful in order to orient the human resources practice in the companies from the two counties by reinforcing the weak and exploit the strong connections.

References

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Appendix

(ProQuest: Appendix omitted.)