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Development and Validation of Managerial Ability Scale

Development and Validation of Managerial Ability Scale

Acknowledgements

Thank God for the wisdom and perseverance that he has been bestowed upon me during this research project, and indeed, throughout my life: “I can do everything through him who gives me strength.”

At this moment of accomplishment, first of all I pay homage to my supervisor I feel much pleasure in expressing my heartiest gratitude to my ever affectionate supervisor for her dynamic and friendly supervision, patient guidance, encouragement and advice she has provided throughout my time as her student and whose inspiring attitude made it very easy to undertake this project. I have been extremely lucky to have a supervisor who cared so much about my work, and who responded to my questions and queries so promptly. This work would not have been possible without her guidance, support and encouragement. Under her guidance I successfully overcame many difficulties and learned a lot. It was only through his guidance that my efforts were fruitful.

I would like to thank Director of Institute of Applied Psychology; this research work would not have been possible without her suggestion and encouragement.

I offer special thanks to the department’s library and computer lab staff for their ever present help and cooperation and for providing me necessary books and facilities for the completion of this research.

To me, there is nothing better than having good friends, so great pride is with me while thanking my friends. Thank you doesn’t seem sufficient but it is said with appreciation.

It is also a pleasure to mention my good friends, for their love, care, support and creating a pleasant atmosphere for me here.  This helped me a lot to work for hours together tirelessly.

I acknowledge with gratitude the many organizations that did see the value of participating in research that explored. I especially acknowledge Govt banks, private banks, national and multinational banks, who participated in both phases.

Last but certainly not least, deepest appreciations are extended to my beloved Parents, for my success is really the fruit of their devoted prayers and encouragement. I am greatly indebted and submit my earnest thanks to my mother. May Almighty Allah bless them with good health and prosperous long lives and be a source of prayer for me.

DEDICATION

This thesis is dedicated to my parents

For their endless love, support and encouragement

Table of Contents – Development and Validation of Managerial Ability Scale

Title                                                                                                    Page No.

  • Declaration                                                                                                      i
  • Certificate                                                                                                       ii
  • Acknowledgement                                                                                          iii
  • Dedication                                                                                                      iv
  • Table of content                                                                                              v
  • List of table’s                                                                                                  ix
  • Appendices                                                                                                     x
  • Abstract                                                                                                          xi

Chapter I

Introduction                                                                                                    1

  • 1.1       Managerial Ability                                                                  4
  • 1.1.1    Leadership                                                                                4
  • 1.1.2    Emotional intelligence                                                           6
  • 1.1.3    Decision making                                                                      8
  • 1.1.4    Time management                                                                  10
  • 1.1.5    Team management                                                                 11
  • 1.1.6    Work place happiness                                                             13
  • 1.1.7    Stress management                                                                15
  • 1.1.8    Theoretical background                                                         18

Chapter II

Review of Empirical Literature                                                                      23

  • 2.1       Managerial ability                                                                    23
  • 2.2       Good manager                                                                       24
  • 2.3       scale development                                                                  25
  • 2.4       Emotional intelligence and leadership                                   25
  • 2.5       Leadership                                                                             26
  • 2.6       Decision making and mental ability                                       26
  • 2.7       Behavioral decision making and time management                27
  • 2.8       Time management                                                                  27
  • 2.9       Indigenous researches                                                             28
  • 2.9.1    Scale development                                                                    28
  • 2.9.2    Emotional intelligence                                                            29
  • 2.9.3    Emotional intelligence and career decision making         29
  • 2.9.4    Leadership style and decision making                                 29
  • 2.10     Summary                                                                                30
  • 2.11     Rational                                                                                  30
  • 2.12     Objectives of study                                                                 30

Chapter III

Method                                                                                                           32

  • 3.1       Purpose                                                                                               32
  • 3.2       Sample                                                                                                32
  • 3.3       Step 1                                                                                                  32
  • 3.4       Step 2                                                                                                  33
  • 3.5       Step 3                                                                                                  33
  • 3.5.1    Sample                                                                                                33
  • 3.6       Step 4                                                                                                  33
  • 3.6.1    Sample                                                                                                34
  • 3.7       Inclusion criteria                                                                                 34
  • 3.8       Demographic information questionnaire                                     34
  • 3.9       Measures                                                                                             34
  • 3.10     Procedure                                                                                            34
  • 3.11     Ethical consideration                                                                          36

Chapter IV

  • Results                                                                                                            37
  • Item generation                                                                                             39
  • Sub dimensions                                                                                             44

Chapter V

Discussion                                                                                                       47

  • 5.1       Limitations                                                                                          52
  • 5.2       Suggestions                                                                                         53
  • 5.3       Implications                                                                                        53
  • 5.4       conclusion                                                                                           54
  • References                                                                                                   55

List of Tables

Table  2Descriptive statistics of demographic variables (N=150)35
Table 3

Table 4

Correlation between the manager responses and employees responses

Independent sample t-test for difference of male and female on managerial ability scale.

38

38

Appendices

Appendix APermission Letter from Authors
Appendix BConsent Form
Appendix CDemographic Sheet
Appendix DAssessment Scales

Abstract

The study aimed at developing an indigenous managerial ability scale to assess the abilities of Pakistani managers as there was no exact measure in this area. Managerial ability scale was developed in 4 steps. A sample of 30 male and female managers, reporting managers and subordinates were selected from govt and private bankers. In step I, open ended questionnaire was used to elicit list abilities that a manager should have. A list of 53 abilities was prepared. It was edited from the answer of 30 managers. In step II, list was given to two industrial and organizational psychologists for checking its content validity. In step III, this list was finalized and given to test its readability and relevance to the managers. At the 4th last step a final study was conducted using this scale. Sample of 50 male female bank managers were selected from govt and private banks. Its psychometric properties such as reliability analysis were checked. Over all cronbach’s Alpha reliability of managerial ability was .77. To further assess its validity the same scale was given to the subordinates of the same manager who had completed the scale for 12 each manager 2 subordinates completed the scale. The introductory lines of the scale were changed as suitable for subordinates. To rate their manager’s ability to see the relationship between self rated managerial ability and employees’ rated managerial ability. There was a significant positive correlation between manager self rating and employees rating on the managerial ability scale. According to the themes certain sublevels or dimensions of managerial abilities were identified use content analysis and thematic analysis since factor analysis was not possible due to small sample. These were leadership, emotional intelligence, decision making, problem solving, team management, time management, stress management and workplace happiness and T-test indicated that there is no difference in the managerial ability of male and female bank managers. Implications of the study are discussed along with limitations and suggestions for future researches.

Chapter I

Introduction

Managers are integral part of any organization. Each organization wants and needs effective managers since it is an important element in success of every business. Administration comprises of five procedures specifically, planning, sorting out, leading, organizing and controlling. Management is fundamentally an authoritative movement, the association of work and resources to attain achievement. The effective association of work and assets obliges cautious arranging. Powerful arranging includes foreknowledge. One ought to be mindful of the potential dangers and be ready to fight them. It is vital to lead the group and aide the allies towards achievement and that includes the key part of a supervisor. involves the key role of a manager.  Managers are important to an organization because they can manage, coordinate, guide and motivate their subordinates so that they can achieve their organizational goal. In addition, managers also help in good communication flow in organization by connecting top level management with lower level employee. A manager is in charge of the effective execution of business courses of action by putting into utilization his abilities and management skills. For this top level management managers need some abilities. Many authors have defined ability so collectively we can summarize ability as a procured or common limit or ability that empowers a single person to perform a specific employment or assignment effectively. We can also say that ability is the force or ability to do or act physically, rationally, lawfully, ethically and monetarily etc. .It’s a long discussion so collectively I have come to know the eighth key abilities that a manager should have that are leadership, emotional intelligence, decision making, time management, team management, stress management, work place happiness and interpersonal relationship. These all abilities are correlated and a good manager should have all these collectively.

The management literature is filled with arrangements of characteristics, practices, aptitudes, introductions and methods for successful performance but unfortunately the area of managerial ability is least explored hence no work is founded in Pakistani population. Previous researches have focused on how management ability corporate policies and outcomes. Melbourne (2003) focuses on the managerial ability and measures it as far as the amount of press articles that referred to the CEO. He found that recompense contracts given to CEOs with a high capability (i.e., those with more media-counts) displayed more noteworthy equity instruments. Chemmanur and Paeglis (2005) reported that better quality management can affect the firm’s IPO characteristics. A few studies have analyzed whether the reputational inspirations of Ceos influence their choice making practices, for example, speculation and reporting choices (Hirshleifer 1993; Sridar 1994). Not many studies be that as it may, have observationally inspected whether managerial capability maintains sustains firm’s good performance and whether the expectation of superior performance of high ability CEOs, in fact, is delivered.

My focus on managerial ability is motivated by three considerations. First, managerial ability is one of the most important intangible assets that a firm has (Gaines-Ross, 2003).

Besides, it catches the measurement of managerial human capital (Francis, Huang, Rajgopal and Zang 2008). Thirdly, as indicated by Burson-Marsteller’s overview in 1999, al-most a large portion of a company’s notoriety is based upon the picture of its administration group. Subsequently this present administrator’s attributes conceivably can have an agreeable effect on corporate financial profits.  Infect one of the reasons for the small number of experiential studies related to managerial ability is the difficulty of measuring the abilities of managers.

To overcome this concern, I measure managerial ability utilizing four substitutes which are frequently employed by past studies: Press Citation, CEO rewarded from business journals, manager-specific efficiency derived from data envelope analysis (DEA), and industry adjusted firm performance (Milbourn 2003; Francis et al. 2004; Malmendier and Tate 2005).

Empirical investigation of the economic benefits of managerial ability is important because top executives with highly developed management skills often receive high pay. The ability perspective advocates economic benefits of managerial ability. Most of previous studies have focused on the impact of managerial ability on the future operating performance and yielded mixed evidence (Nanda et al. 1996; Malmendier and Tate 2005). In fact, Gaines-Ross (2003) finds that experts prescribe an organization’s stock focused around CEO notoriety on the grounds that a CEO with a settled notoriety, accepted to have high capability, will support great execution or turn around poor execution. A directorate will give an exceedingly respected CEO more chances to commit up for his or her errors, in light of the fact that they accept that the CEO will turn around present poor execution in the close term

. Therefore, I expect that higher ability managers are able to sustain stable performance over the long run (i.e., higher earnings persistence).

Baik et al. (2011) reported that managerial ability is is positively related to the likelihood of voluntary management earnings forecasts. This finding is consistent with highly reputed CEOs having incentives to keep the market informed about their firms’ economic prospects.

Moreover, managers with high abilities may have higher ability to get more exact information on investment open doors, settle on better financing decisions and accomplish successful task results with greater likelihood Chemmanur, Paeglis, and Simonyan 2009). Successful corporate investments enhance firm future profits. Given that managerial ability provides useful information about future profit streams, it helps investors to better predict future earnings. Thus more data about future income ought to be reflected in present stock costs. Utilizing future profit reaction coefficient (FERC) as substitute for price in formativeness, we expect that it correlates positively with the level of managerial ability.

Managerial Abilities

A skill is something that might be learned or required through training and could be cognitive, perceptual and moptor. Ability is the generic make up of an individual either perceptual or motor in nature that could be inherited from one’s parents. Abilities are principally qualities that enable one to do or perform a specific task while skills are the ones that make an individual do tasks at a higher degree or standard. Several recent and past conversations have brought into mind some important managerial abilities. Mel Hensey (2011) reported competency, character and commitment are the most important managerial abilities. According to Mike Ullman (2011) Vision, Trust, Candor and Talent differentiation are major abilities.

  • Leadership

Gary Yukl (2006) defines leadership as “the process of influencing others to understand and agree about what needs to be done and how to do it and the process of facilitating individual and collective efforts to accomplish shared objectives”.

Peter Northouse (2007) defines leadership as “a process whereby an individual influences a group of individuals to achieve a common goal.”

1.1.1 Leadership and management. Zaleznik (1977) accepts that managers and leaders are extremely different, and being one blocks being the other. He contends that managers are receptive, keeping in mind they are eager to Work with individuals to take care of issues, they do so with insignificant emotional involvement. Then again, leaders are candidly included and look to shape plans as opposed to responding to others’ thoughts. managers limit decision, while leaders work to grow the amount of options to issues that have tormented an association for a long time of time. Leaders change individuals’ attitudes, while managers just change their conduct.

Kotter (1998) contends that associations are over managed and under headed. On the other hand, strong relationship with weak management is no better and may be worse. He recommends that organizations need strong leadership and strong management. Managers are required to handle unpredictability by founding planning, sorting out and staffing, and controlling and critical thinking. Leaders are required to handle alter through formulating the needed steps, adjusting individuals, and spurring and rousing individuals. He contends that organizations need individuals who can do both they require leaders management.

Mintzberg (1998) fights that managers lead by utilizing a cerebral face. This face stresses computation, sees an organization as segments of a portfolio and works with words and amounts of rationality. He proposes that leaders lead by utilizing a insightful face.  This face stresses responsibility, sees organizations with an integrative viewpoint and is established in the pictures and feel of integrity. He contends that supervisors need to be two-timing. They have to all the while be a manager and a leader Rowe (2001) battles that leaders and managers are diverse and proposes that one part of the distinction may be philosophical. Supervisors accept that the choices they make are resolved for them by the organization they work for and that the organizations they work for behave in a way that is dictated by the business or environment in which they work. At the end of the day, managers are deterministic in their conviction framework. Leaders accept that the decisions they make will influence their associations and that their associations will influence or shape the commercial ventures or situations in which they work. As such, the conviction frameworks of leaders are more adjusted to a philosophical viewpoint of unrestrained choice.

  • Emotional Intelligence (EI)

EI can be defined as the ability to monitor one’s own and other people’s emotions to discriminate between different emotions and label them appropriately, and to use emotional information to guide thinking and behavior. Emotional intelligence is ‘the ability to perceive emotions, to access and generate emotions so as to assist thought, to understand emotions and emotional knowledge, and to reflectively regulate emotions so as to promote emotional and intellectual growth’. Emotional intelligence essentially describes the ability to effectively join emotions and reasoning, using emotions to facilitate reasoning and reasoning intelligently about emotions (Mayer & Salovey, 1997).

Emotional intelligence taps into the extent to which people’s cognitive capabilities are informed by emotions and the extent to which emotions are cognitively managed. Additionally, it should be pointed out that emotional intelligence is distinct from predispositions to experience certain kinds of emotions captured by the personality traits of positive and negative affectivity

(George, 1996; Tellegen, 1985).

1.2.1 Emotional intelligence and effective leadership. Emotional intelligence can lead to enhanced functioning in a variety of aspects of life such as achievement and close relationships (Goleman, 1995;Salovey & Mayer, 1989–90). I propose that it may play a particularly important role in leadership effectiveness and expression of emotions, use of emotion to enhance cognitive processing and decision making, knowledge about emotions, and management of emotions – contribute to effective leadership. In order to explore the implications of emotional intelligence for effective leadership, it is necessary to identify the fundamental nature of effective leadership.

Based on the syntheses of Yukl (1998), Locke (1991); Conger and Kanungo (1998), as well as the larger leadership literature, specific elements of leadership effectiveness can be identified. As described by these authors (Conger & Kanungo, 1998; Locke, 1991; Yukl, 1998), effective leadership includes the following essential elements

(a) Development of a collective sense of goals and objectives and how to go about achieving        them. (b) Instilling in others knowledge and appreciation of the importance of work activities and behaviors. (c) Generating and maintaining excitement, enthusiasm, confidence, and optimism in an organization as well as cooperation and trust. (d) Encouraging flexibility in decision making and change. (e)  Establishing and maintaining a meaningful identity for an organization.

Leaders high on emotional intelligence also are likely to have knowledge about the fact that their positive moods may cause them to be overly optimistic. Hence, in order to ensure that they are being realistic and appropriately critical, they may be more likely to revisit their judgments when in a more neutral or negative mood to ensure a careful consideration of all the issues involved. Such leaders also are likely to be better able to repair negative moods arising from any number of sources that may limit flexibility and creativity and more generally, use meta-mood processes to manage their moods and emotions in functional ways (Mayer et al., 1991).

1.2.2 Emotional intelligence matters at workplace. Organizational behavior consists of a complex network of human relations built and maintained by bridging the gap between significant behavioral differences. The quality of these relations defines the so – called organizational climate or atmosphere. Goleman (1998) asserts that emotional intelligence, not IQ, predicts workplace success and who transpires as a leader.

In a study of Harvard graduates in the fields of law, medicine, teaching, and business, scores on entrance exams had zero or negative correlation with their eventual career success. (Goleman, 1998).

A multitude of studies suggest that EI is a strong predictor of job performance. In a study that examined workers in a cigarette factory in China, EI was found to predict employee performance (Law, Wong, & Song, 2004). Another study found that partners in a multinational consulting firm who scored higher than the median on an EI measure produced $1.2 million more in business than the other partners did (Cherniss). Greenstein (2001) conducted a study that looked at the successes and failures of eleven American presidents. They were assessed on six qualities: organization, communication, vision, political skill, cognitive style, and emotional intelligence. The results showed that emotional intelligence was the key quality that distinguished the successful (e.g., Roosevelt) from the unsuccessful (e.g., Carter).

Elfenbein and Ambady (2002), the ability to perceive emotions in others’ facial expressions and pick up subtle signals about people’s emotions predicted peer ratings of how valuable these people were to their organization.

1.3 Decision Making

         Thearet (1976) defined decision process as a situate act and forceful factors that begin with the recognition of a motivation for behavior and split ends with a specific devotion to action.

Decision making is the study of classifying and selecting alternatives based on the values and likings of the decision maker.  According to Kuzgun (1992), decision-making can be defined as a predisposition to amaze the existent problem when more than one way happens to primary us to an object that is thought to be the satisfier of responsibility.

Stoner, Yetton, Craig and   Johnston (1994) define decision making as the method by which a way of act is certain as the result to a specific crisis. Lawson and Shen (1998) also noted that decision making is the process of choose in the middle of alternative, implement a decision and using the following result data to form any more decisions linked with the past one.

Miller and Byrnes (2001) defined decision-making as the process of choosing between different alternatives while in the focus of pursuing one’s goal. Huber (1980) distinguishes decision making from choice making and from problem solving. He suggest that choice making refers to the slight set of actions concerned in choosing one option from a set on alternative choices whereas problem solving.

Huber (1980) distinguishes decision making from choice making and from problem solving. He suggest that choice making refers to the slight set of actions concerned in choosing one option from a set on alternative choices whereas problem solving. Programmed decisions usually involve highly repetitive and routine problems in which the procedures for decision making are well established, applied frequently, easily triggered and require immediate action.

Simon (1977) suggested that in programmed decision-making, the focus is on the implementation of decision with the first steps highly standardized as represented in operating manuals and standard operating procedure.

1.3.1 Decision making and managers in an organization. Organizations with different structures, functioning in different environments have to be managed. Managers have to make effective decisions to keep the organization flourishing. As long as there is management there will be the problem of how to manage better. In one sense,

attempts at answers to this problem will be as numerous as managers for each will bring an individual approach to the task. Nonetheless, at any one time, there is enough in common for broad similarities to exist in what is thought and what is taught on this issue.

Basi (1998) describes how executives need to have a high level of intuition when making decisions, and be able to scan to environment for threats and opportunities. The lower level of manager needs to have good compromise and negotiation skills to successfully see a decision through to implementation. The lowest level of supervisor needs to have good computational abilities, as the types of decisions here are usually unambiguous and less consequential. As an organization moves from a paternalistic to synergistic structure, there is an increasing need for stakeholder participation in the decision-making process.

An organization is unlikely to maintain a decision process that requires deciding

Consequential and equivocal decisions on a frequent basis with irregularity (Butler

et al. 1979). Stimuli are required to generate a decision process. In a crisis and opportunity situation, only one stimulus is usually required, whereas a problem situation can need many stimuli (Mintzberg et al., 1976).

1.4 Time Management

Lakein (1973) defined that time management refers to the use of particular techniques such as ‘to-do’ lists or deliberately planning activities or to participate in training with the purpose of learning how to master and use such a technique. Time management is defined as one process by which you can accomplish the tasks and goals which will enable you to be effective in your job and career Randall (1979).

According to Chales (1987) who is one of the foremost influencer in the field of time management, defines time as ‘occurrence of events one after another and defines management as the act of controlling’. He claims that, therefore, time management becomes the act of controlling events.

According to Allen (2001), time management is defined as practices individuals follow to make better use of their time. It also refers to principles and systems that individuals use to make conscious decisions about the activities that occupy their time.

1.4.1 Effective time management and time.  North (2004), time management is the organization of tasks or events by first estimating how much time a task will take to be completed, when it must be completed, and then adjusting events that would interfere with its completion is reached in the appropriate amount of time.

According to Hisrich and Peters (2002), “time is a unique quantity an entrepreneur (manager) cannot store it, rent it, and buy it. Claessens and Roe, Rutte (2009), everything requires it and it passes at the same rate for everyone. Time management is a method for managers to increase work performance effectiveness.

1.5 Team management

Team Management refers to techniques, processes and tools for organizing and coordinating a group of individuals working towards a common goal or task; i.e. a team. One way to define a team is to differentiate it from a committee. A team by definition is a group of three to twelve people with the following characteristics

1.5.1 Joint accountability. All team members must have more reasons to cooperate within their group than they do with persons or groups from outside. This means they are within a defined boundary and all work for a common person or unit. The team must have a common goal and purpose, work to be done, a convening activity. The goal requires some kind of interdependent action in its attainment; no one individual can drive team goals by him.

Management theory identifies a team as 3 or more members with the opportunity to create hierarchies and interactions amongst them (therefore a large group of people is not a team).

There are three distinct types of teams; i) Organic teams. Teams which are supported by an organizational structure, ii) Project teams. Teams which are assembled for a specific project, iii) Non-organic teams. Teams which are assembled in an organization for a specific process or       task or multi-disciplinary teams.

Creating and Managing Effective Teams in the Workplace. In every team the manager plays a role in which professional as well as procedural guidance holds an extremely important place. In order to create and manage effective teams, a manager must work to enable the advantages of a team to bloom. A manager of a good effective team must use the following characteristics to most benefit the organization: i) Use the differential knowledge of team members. The sum of knowledge in a team is obviously greater then of any individual. Moreover, differential knowledge creates that sought after synergy, ii) Enable diversity of opinion and approach different team members have accumulated different experience and to solving problems. Use that resource in order to address issues i a variety of ways. Acceptance and commitment Being a part of a process or team creates acceptance and i) Commitment to the team and to its goals. Encourage the team to share and make use of every team member in order to create that commitment, ii) Offer team members a stage to show intellectual abilities. Team members will flourish if given the opportunity do express themselves. (iii) Do not be afraid of disputes lead to growth in a team.

1.5.2    Diversity in Team Management.  Diversity in groups and teams is often portrayed as a positive force leading to effective functioning of the team. Diversity supposedly leads to greater variance in ideas, creativity, and innovation, thus generating better group performance (Cox, 1993;Jackson, May and Whitney, 1995).

      In the popular press, diversity is almost always synonymous with gender or ethnic diversity. Research on organizational work groups, however, has focused on other forms of diversity including differences in age, education, firm tenure, and functional or technical background (Jackson, 1995).

    Cross-functional teams, for example, are by defi-nition designed with deliberate differences in demographic diversity and technical specialization (Ancona and Caldwell, 1992).

1.6 Workplace Happiness

Happiness may be defined as the experience of frequent positive affect, infrequent negative affect and an overall sense of satisfaction with life as a whole (Myers & Diener, 1995). Dr Laurel Edmunds and Jessica Pryce-Jones have researched the issue of happiness at work at length and from their findings have defined Workplace Happiness thus: “Happiness at work is about mindfully making the best use of the resources you have, to overcome the challenges you face. Actively relishing the highs and managing the lows will help you maximize your performance and achieve your potential. And this not only builds your happiness but also that of others – who will be affected and energized by what you do.”

1.6.1 Why is Workplace Happiness Important? University of Illinois Professor Edward Diener, a pioneering researcher on ‘subjective well-being’ (his term for happiness) points out that nobody can tell a person that he or she is, or should be, happy. Nor is there a set of circumstances that guarantees that the person experiencing them will be happy. Instead, happiness is an entirely subjective feeling of well-being experienced by the person, characterized by the presence of positive emotions and the absence of negative emotions. It is subjective in that the person can report whether or not he or she is happy, but an outside observer will not be able to make that same judgment, because well-being is entirely in the mind of the subject.

         The question of whether happy workers matter to firm performance has been asked for nearly a century. Recent work by the University of Nevada’s Tom Wright and the University of Arizona’s Russell Cropanzano makes the case that happy employees defined broadly using the metrics of subjective well-being demonstrate superior job performance that is, happy employees are better employees. In addition, they suggest that happy employees are more sensitive to opportunities in the work environment, more outgoing and helpful to co-workers, and more optimistic and confident cxall of which are positive features for the organization.

1.6.2 Other Drivers of Workplace Happiness. Fairness “I’m happy when I am treated fairly “Being valued “I’m happy as long as I feel the organization values me and is committed to me as an employee” Trust “I have to feel trusted by my boss and have a good working relationship with him/her” Meaning “I understand the aims of my organization and the role I play in helping achieve this” Utilization “Happiness for me means being able to develop my full potential at work” Autonomy “I need to feel empowered and have a sense of autonomy in my job, in order to be happy in it” Positive Emotion “I experience positive feelings at work” Work Engagement “I like work that engages my attention” Rewarding Relationships “I feel a sense of fulfillment when I have a good relationship with colleagues and supervisors at work” Challenge of Work “I am involved with my task and time seems to fly” Sense of Purpose “My work offers exciting challenges; I believe I am doing something worthwhile at work” Leader Influence “My supervisor’s influence determines whether I like my work or not” Work Life Balance “I am happy at work as long as it does not intrude into my personal life” Holistic Approach “My work gives me a sense of being, becoming and belonging” Creativity “My work provides me with creative opportunities, complex problems and challenging tasks.”

1.6.3 Leadership and Workplace Happiness. The importance of leadership and its criticality to an organization cannot be overemphasized. Workers at every level form impressions regarding whether they are valued and respected, from important cues that emanate from their environment, especially those that come from the leaders that they report into (Gmelch and Miskin, 1993; Fryer and Lovas, 1991).

The largest developmental impact was raising the positive beliefs of followers, instilling in them the conviction that they were better at a performance task then

they thought.”(Avolio and Luthans 2006).

 1.7 Stress Management

           Hans Selye ( 2010) defined “Stress is the body‘s nonspecific response to a demand placed on it”  Richard S. Lazarus defined “Stress as a condition or feeling experienced when a person       perceives that demands exceed the personal and social resources the individual is able to mobilize. D‘Souza defined stress as “Nervous tension that results from internal conflicts from a wide range of external situations.”

Stress has become significant due to dynamic social factor and changing needs of life styles. Stress is man‘s adaptive reaction to an outward situation which would lead to physical, mental and behavioral changes. Even though stress kills brain cells, not all stresses are destructive in nature. Appropriate amount of stress can actually trigger passion for work, tap latent abilities and even ignite inspirations. The study throws light on the wide spread silent problem by name stress which gave raise to acute dysfunctions and are called many diseases, increase divorce rates, and other harassments. The work stress is found in all professions (Uma. T, (2008).

1.7.1 Stress Management at workplace. Vijay, V. &  Raghavan, (2010) the effect of flexible work schedule, employee support and training, and telecommuting as potential coping resources to relieve stress. Perceived workload, role ambiguity, work facilitation, and decision latitude are potential stressors of IT professionals. Removing role ambiguity and improving work facilitation reduce work-related stress and allowing employees to have flexible work schedules ease their perceptions of workload.

Charan, S. (2007) high work pressure, long hours in front of the computer and a fast-paced lifestyle, if these factors team up to weaken your physical health, here is one more strong reason why they are simply unhealthy.

Raj, M. (2009) depression is usually related to work and stress these people undergo because of the pressure to perform better, compete with other colleagues and meet tight deadlines. Most of their work is target oriented and if targets are not met, it can lead to anxiety.

Balu, K. (2002) most stress management programmes focus attention on the individual either assisting employees or help them to cope with job-related stressors.

Rosch, E. (1990) has summarized a wide range of other strategies which are directed towards increasing worker autonomy, participation and control. These strategies include: redesigning tasks, redesigning the physical work environment, role definition and clarification, establishing more flexible work schedules, participative management, employee-centered career development programmers, providing feedback and social support for employees and more equitable reward system.

Interpersonal relationship is a strong, deep, or close association or acquaintance between two or more people that may range in duration from brief to enduring. This association may be based on inference, love, solidarity, regular business interactions, or some other type of social commitment (Ellen, 1999).

Relationships make life meaningful, whether they’re good or bad. When asked ‘What’s necessary for your happiness?’ most people say, before anything else, satisfying close relationships with friends, family and romantic partners (Berscheid, 1985).

Interpersonal relationships are formed in the context of social, cultural and other influences. The context can vary from family or kinship relations, friendship, marriage, relations with associates, work, clubs, neighborhoods, and places of worship. They may be regulated by law, custom, or mutual agreement, and are the basis of social groups and society as a whole.

The advanced technology has made it possible for geographically dispersed managers and employees, to work together, communicate and interact (Bell & Kozlowski, 2002). It is also important for organizations to study the relational and leadership issues that can arise as a result of the geographical distance between managers and employees (DeRosa et al. 2004). Especially the employee-manager relationship is important to study (Golden & Veiga, 2008) and then develop new ways of improving the interpersonal relationships between them (DeRosa et al. 2004). One of the problems for managers of virtual teams can be that some find it hard to build good relationships with their employees because of the lack of visibility in the employees’ daily work (Watson, 2007).

1.8 Theoretical back ground

In this theory, management assumes employees may be ambitious and self-motivated and exercise self-control. It is believed that employees enjoy their mental and physical work duties. According to them work is as natural as play. They possess the ability for creative problem solving, but their talents are underused in most organizations. Given the proper conditions, Theory Y managers believe that employees will learn to seek out and accept responsibility and to exercise self-control and self-direction in accomplishing objectives to which they are committed. A Theory Y manager believes that, given the right conditions, most people will want to do well at work. They believe that the satisfaction of doing a good job is a strong motivation. Many people interpret Theory Y as a positive set of beliefs about workers. A close reading of The Human Side of Enterprise reveals that McGregor simply argues for managers to be opened to a more positive view of workers and the possibilities that this creates. He thinks that Theory Y managers are more likely than Theory X managers to develop the climate of trust with employees that are required for employee development. It’s employee development that is a crucial aspect of any organization. This would include managers communicating openly with subordinates, minimizing the difference between superior-subordinate relationships, creating a comfortable environment in which subordinates can develop and use their abilities. This environment would include sharing of decision making so that subordinates have a say in decisions that influence them.

The new management model that should be implemented across all business organizations begins with the function of leadership. There is a new era that has spread through the business world that involves rapid changes. One rapid change is that management has increasingly become a leadership task. Leaders help employees act on the vision of the company. Leaders execute and heighten the inspiration of employees, which cause employees to align relationships with management and better achieve company goals (Kotelnikov 2005).

The next function is setting new focuses on creating vision and empowering employees of the organization. Managers need to focus their attention on the three key sections of a business which are: people, knowledge, and coherence. Once managers have shifted their focus to the three key sections, financial performance will be enhanced. Managers should make sure that the shift of focus is in place and working well so that both long-term and short-term goals can be achieved. The next function is the fact that management can only be effective if the three enablers are coached. In the fast pace business today, managers need to stay competitive. Managers need to be effective with their employees and learn to coach. According to a survey by the Work Foundation, most managers are not trained in coaching, but statistics show that more that 80 percent of organizations use coaching to develop their staff (Kotelnikov 2005).

Another function is systems thinking. It is the ability to see things as a whole. It concentrates on components that will help the organization achieve results that are greater than the sum of the parts (Kotelnikov 2005). The last function of the new effective management model is aligning Internet and new technologies with the implementation of systems thinking. In the new management theory, an increasing number of executives shift emphasis from the traditional control-based management practices to managing relationships in their organizations through the Internet or other technologies that allow the organization to communicate. The theory emphasizes the fact that it is important to build and maintain good relationships between workers and managers, and between employees and customers to make companies maximize profits and be considered successful.

The most important lesson that needs to be taken from this new effective theory of management is that one must be able to understand how to work with other people, and managers should understand that they are capable of influencing and motivating employees to achieve company goals. This is the most important talent that a manager should have. The new management theory shows managers how to become successful. It is a model that shows managers that they can support and influence employees to be their best. It is a positive model of influence that is key to making a business successful and this model is the best way to develop the talent that a manager needs to be successful in an organization.

1.9 Summary

Managers are integral part of any organization. The management literature was full of   number of attributes, behaviors, skills, orientations and strategies for enhancing successful performance but unfortunately the area of managerial ability is least explored and no work was found in this area. My focus on managerial ability was motivated by three considerations. First, managerial ability is one of the most important intangible assets that a firm has. Secondly, it captures the dimension of managerial human capital. Thirdly, al-most half of a firm’s reputation is based upon the image of its management team. Abilities are mainly qualities that enable one to do or perform a particular task while skills are the ones that make a person do tasks at a higher degree or standard. Several recent and past conversations have brought some important dimensions of managerial abilities that are leadership. Emotional intelligence, decision making, time management, team management, work place happiness, stress management and interpersonal relationship. Leadership is a process where an individual influences a group of individuals to achieve a common goal. Organizations are over managed and under led. However, strong leadership with weak management is no better and may be worse. Organizations need strong leadership and strong management. Emotional Intelligence can be defined as the ability to monitor one’s own and other people’s emotions to discriminate between different emotions and label them appropriately, and to use emotional information to guide thinking and behavior. Emotional intelligence can lead to enhanced functioning in a variety of aspects of life such as achievement and close relationships. EI is a strong predictor of job performance not IQ, predicts workplace success and who transpires as a leader. Decision making is the study of classifying and selecting alternatives based on the values and likings of the decision maker or decision-making as the process of choosing between different alternatives while in the focus of pursuing one’s goal. Organizations with different structures, functioning in different environments have to be managed. Managers have to make effective decisions to keep the organization flourishing.

Time management refers to the use of particular techniques such as ‘to-do’ lists or deliberately planning activities or to participate in training with the purpose of learning how to master and use such a technique and time is a unique quantity an entrepreneur (manager) cannot store it, rent it, and buy it. Team management refers to techniques, processes and tools for organizing and coordinating a group of individuals working towards a common goal or task; i.e. a team. Team must have a common goal and purpose and goal requires some kind of interdependent action in its attainment; no one individual can drive team goals by himself. Happiness at work is about mindfully making the best use of the resources you have, to overcome the challenges you face. Actively relishing the highs and managing the lows will help you maximize your performance and achieve your potential. Stress is the body‘s nonspecific response to a demand placed on it Interpersonal relationship is a strong, deep, or close association or acquaintance between two or more people that may range in duration from brief to enduring.

 

Chapter II

Literature review

2.1 Managerial ability

Hayes and Schaefer (1998) identify manager/firm separations where managers quit for a new job and study abnormal returns associated with these events. Applying analyses from labor economics, they argue that the average ability of managers who resign for a similar position at another firm should be higher than that of managers who die suddenly. Controlling for age and tenure, they find that losing managers to other firms experience an average abnormal return off 1.51%, compared to #3.82% for firms whose managers die suddenly. We use differences in returns across groups to measure the value of differences in managerial ability

Jensen and Fuller (2002) assert that CEO reputation is a major determinant of the long-term success and survival of a firm.

Silva (2009) present a model to show how managerial ability the ability to run risky projects can increase total factor productivity and explain the pattern of capital flows. The model implies that countries with more high ability managers use more risky projects and have higher productivity. I define proxies for managerial ability with data on physical and human capital, schooling, and entrepreneurship. Consistent with the pattern of capital flows, the model predicts similar returns to capital across countries and higher returns in middle-income countries. A substantial body of research is dedicated to understanding the determinants of managerial ability and information environment.

Switzer and Bourdon (2010) show several proxies for management quality significantly affect operating performance of IPOs in Canada. Above only discuss the relation between managerial ability and current firm’s performance and extend the line of research about the information content of Managerial ability: whether better managerial ability help stock prices to reflect more future earnings given they convey forward looking information.

Baik (2011) show that a personal characteristic of the CEO is associated with the forecast accuracy increases in CEO ability. The better managers may be able to recognize the firm’s quality, thus declining the extent of information asymmetry between firm insiders and outsiders. This means that managerial ability as a signal to help the investor can predict or determine future profit.

Baik (2010) finds that firms with highly reputed CEOs are associated with lower clarity, suggesting that CEOs act to protect their reputations by increasing the flow of information to the market. They also views from an investor perspective and find that 5 firm value is increasing in CEO reputation, suggesting that investors perceive that highly reputed CEOs improve the information environment.

2.2 Good management

Fama (1980), Narayanan (1985), Holmstrom and Ricart Costa (1986), Holmstrom (1999), Chemmanur et al. (2009) indicate that better and more reputable managers may be able to select better projects, characterized by a larger NPV for any given scale. Taken together, these studies suggest that talent managers are able to cut down financing costs, improve corporate governance and select the better investment project.

Agarwal  (2007) consider that good management enhances firm value, well managed firms have higher profitability are able to sustain superior operating performance for longer and are rewarded by higher market valuations.

Chemmanura and Paeglisb (2005) suggest that IPOs firms with higher management quality will be characterized by lower under pricing, greater institutional interest, more reputable underwriters, and smaller underwriting expenses. Management reputation can reduce agency problems, managers intend to obtain funds and earn rents, and firms must establish a reputation for generating profits and repaying these profits to investors.

2.3 Scale development

Sendejaya (2003) conducted a research to develop and validate a measurement scale of servant leadership. The stages of scale development which have been undertaken, domain and item generation, content expert validation, and pilot test.  Although content/face validity and internal consistency of the scores on servant leadership scale, some preliminary results on its construct validity are presented. Future research directions are discussed to ensure that the psychometric properties of the scores of the scale are theoretically sound and empirically solid.

2.4 Emotional intelligence and leadership

Michael (2002) conducted this research. This study reflects a comparison of the measured emotional intelligence ability to the evaluated leadership performance of 104 select male and female U.S. Naval Academy midshipmen. Binary logistical regressions were used to analyze the impact of selected explanatory variables on the probability of an individual performing effectively as a squad leader. Separate leader performance models were estimated on the members of the sample, and some significant relationships between the EIQ scores and leadership performance were found. The results of this research assessed the utility of the Mayer, Salovey, Caruso Emotional Intelligence Test, Version 2 (MSCEIT v.2) to discriminate between effective leaders as questionable, while some scores from the MSCEIT v.2 were found to add to the predictive validity of each of the models.

Javidparvar, Hosseini and Berjisian (2013) conducted this research. The objective of the study was to investigate the relationship between emotional intelligence and leadership performance in primary schools managers of Isfahan. The population of this study was all managers and teachers of state-run and ordinary primary schools in sextuple districts of Isfahan among which 80 managers and 160 teachers were selected using stratified sampling proportional to the population size and according to variables of gender and the location of the service area. The research method is applied in terms of objective and it was a filed study in terms of method of data collection, also it was correlation in terms of methodology. In this study, on emotional intelligence questionnaire (1980) and Visca’smanagers’ performance questionnaire (1989) were used. These questionnaires enjoyed construct validity. Using Cronbach for emotional intelligence the reliability was 0.93 and for performance 0.98. The results showed that emotional intelligence and its components as well as manages’ performances and their dimensions were above average and statistically significant (p= 0.000). The findings showed that the coefficient of determination between the components of emotional intelligence and performance was significant (R2=0.443 and p= 0.000).

2.5 Leadership

Inman (2007) explores the journey to leadership of eighteen leader-academics within six chartered and statutory universities in the south of Wales and the west of England. Semi-structured biographical interviews were used between November 2005 and April 2006 to secure academics’ perceptions of their own lif history, including the significance of their formative years, career trajectories, motivations, training and less formal learning, to equip them with the necessary attributes to lead.

2.6 Decision making and mental abilities

Thunholm (2003) conducted a research. The aim of this study was to explore the relations between individual decision-making styles as measured by the General Decision-making Style (GDMS) test developed by Scott and Bruce (1995), and some mental abilities theoretically related to decision-making. Participants were 206 Swedish military officers from all services. The multiple regression analysis showed that the Rational, Dependent and Avoidant, but not the Intuitive and Spontaneous decision-making styles could be partly predicted from scores on the Self-esteem Scales (Forsman & Johnson, 1996) and from scores on the Action Control Scales (Kuhl, 1994). The result indicates that decision-making style is not only reflective of habits and thinking practices as proposed in earlier research.

 2.7 Behavioural decision making and time management

Koniga, Kleinmannb and Hohmannc (2012) tested the effectiveness of quiet hours. Based on interruptions research and on a behavioral decision making approach to time management, they argue that establishing quiet hours is a pre commitment strategy against predominantly harmful interruptions. Furthermore, conscientiousness and the use of other time management techniques should moderate the effects of the quiet hour. They tested this by using a two week experimental diary study with managers as participants. Multi-level analyses showed that a quiet hour improved the performance on a task worked on during the quiet hour in comparison to a similar task on a day without a quiet hour. Furthermore, overall performance was higher on days with a quiet hour than on days without one. Conscientiousness acted as a moderator, unlike the use of other time management techniques. These results imply that more people should consider implementing a quiet hour, especially if they are non conscientious.

2.8 Time management

Anita and Robert,  (1986) examined Four groups of preserves teachers participating in student teaching seminars were randomly assigned to one of three conditions to test the effectiveness of brief training in time-management techniques. A control group received no training. Experimental Group 2 received basic training in time management, whereas Experimental Group 1 received the same training and in addition implemented two specific time management procedures (written planning and self-monitoring) under the supervision of the experimenters. Significant differences among the groups were observed in the expected direction on measures of promptness in completing tasks during student teaching and on self-ratings of proficiency in time management.

2.9 Indigenous Researches  

2.9.1 Scale development. Ahmad and Akhtar (2012) conducted this research. The purpose of the research was to develop a research scale to assess the effective implementation of HRPs in General Public Sector Universities (GPSUs) of Pakistan. The development of the research scale was done after Considering the details and specifications taken from related literature review. 34 statements were selected. University of the Punjab, Lahore was selected through simple random sampling two hundred and fifty (250) permanent faculty members were also taken through simple random sampling. The scale reliability index was found alpha (α) 0.937, whereas for each factor, α ranged from 0.598 to 0.927. The positive, strong and significant correlation of each factor with overall sum of Human Resource Practices-Assessment Scale (HRP-AS) for teachers showed that all factors contribute towards assessing the main construct while relatively weaker inter-factor correlations indicate mutual independence of each factor.

Amjad and Rizvi (2008) conducted this research. The aim of the research was find out the relationship between emotional intelligence and effective leadership style. Total 80 leaders, 33 heads of the department from different academic institute of Lahore and 47 managers from different national and multinational banks of Lahore participated in this research. Purposive sampling was employed. Emotional intelligence Scale (self constructed, coefficient alpha .89) was used to assess leadership style. There was a significant positive correlation between emotional intelligence and effective leadership (r = .82, p, 0.01).

2.9.2 Emotional intelligence. Nasir and Munaf (2011) conducted research to examine relationship between emotional intelligence and academic achievement of the adolescents as well as to explore gender differences in emotional intelligence and the academic scores. Participants included 188 adolescents of secondary school students recruited from different schools of Karachi, Pakistan. Emotional Quotient Inventory Youth Version was used to assess EQ and percentages of all subjects of most recent examination were used for academic performance. Significant positive correlation was found between emotional intelligence and academic scores of adolescents for combined sample as well as for separate samples of males and females.

2.9.3 Emotional intelligence and career decision making. Afzal and Shujja ( 2013) conducted this study to examine predictive relationship pattern between emotional intelligence (EI), and career decision making. Sample of the study comprised of (N = 203) university undergraduates. EI, its facets and career decision making were operationalized through Wong and Law Emotional Intelligence Scale (Wong & Law, 2002) and Career Decision Profile (Jones & Lohmann, 1998) respectively. Correlation analysis revealed that emotional intelligence was positively correlated with career decision making. More specifically, the constructs of EI most related to career decision making were examined. Multiple regression analysis demonstrated that among EI factors self-emotional appraisal, and utilization of emotions were found significantly correlated with career decision making.

2.9.4. Leadership style and decision-making. This study was conducted by Rehman and Waheed (2012) research investigated the leadership styles and their potential influence on individual decision making styles in banking sector of Pakistan along with the role of emotional intelligence in predicting the relationship between leadership’s styles and decision making styles. Questionnaire method is employed to collect data from employees working in the banking sector mainly located in two cities i.e., Islamabad and Rawalpindi, Pakistan. Results showed that transformational leadership positively predicts rational, intuitive, dependant and spontaneous decision making styles. Results also described that among leadership and decision making styles, transformational and rational decision making styles are the most preferred styles of banking sectors’ employees.

2.10 Summary

According to the findings revealed in literature review it was found that ability of managers and good management enhance the firm value and high profitability and managers are able to perform well in organizations. Countries with more high ability managers use more risky projects and have higher productivity. On the other hand, abilities e.g. emotional intelligence and decision making abilities are correlated. Decision making considered being determinants of every aspect of life including career, relationships and psychological well being. Effective decision making has always been a golden trait for individuals of every dimension of life (Scott & Bruce, 1995). Leadership style and decision making style , transformational ant rational decision making style are the most preferred style of banking sector’ employees.

2.11 Rationale

The area of managerial ability is very least explored. It is important area of study regarding organization. Development and validation of managerial ability measure provides us information about manager’s those abilities that are essential for institutional goals fulfilment, well being of employees, efficiency predicts outcomes. By them it would hiring better mangers and improves our workplace.

2.12 Objectives of study

  • To develop an indigenous managerial ability scale.
  • To determine the psychometric properties of scale.
  • To examine component of managerial ability.
  • To compare self rating of managers with employees rating.

Chapter III

Method

3.1 Purpose

Study was focused on the following objects:

  1. To develop managerial ability scale.
  2. To determine its validity and reliability.
  3. To examine most common abilities of managers.

3.2 Sample

Sample was consisted of 10 managers 10 reporting managers and 10 subordinates of private and government organizations (banks).

3.3 Step 1

The aim of this step was to elicit the abilities of the managers.  Method was employed the use of open ended questions after that it was asked managers please elaborate abilities that are essential for managers. Participants were encouraged talking about their abilities. Managers, reporting managers and subordinates of managers’ responses were noted down in verbatim.  Items example are followed:

  1. Who is effective manager?
  2. What abilities does an efficient manager possess?
  3. Which type of skills is necessary for a good manager?

Managers, reporting manager and subordinate were contacted on their job. Some demographic information was taken like age, education, duration at work. They were encouraged talking to their abilities. Managers, reporting managers and subordinates were request to describe freely the abilities of manager.

They were instructed to write down all those abilities those will be in good and effective managers

All abilities reported by managers were listed and frequencies of their occurrence were computed separately. In this way a list of 53 abilities were prepared.

All abilities reported by managers, reporting managers and subordinates were listed and frequencies of their occurrences were computed separately. In this way a list of 53 items were prepared.

3.4 Step 2

The aim of this step involves finding out content validity of the questionnaire. So the item were be given to 2 Industrial and organizational psychologists for finding its content validity. The supervisor and the researcher also scrutinized the list.

3.5 Step 3

Basic purpose of this stage is to conduct a pilot study in which readability and feedback of managers can also be received.

3.5.1 Sample.

Sample was consisted of 10 managers.

Questionnaire of all abilities with five point rating scale ranging from with 1= not necessary, 2= Not very important, 3= somewhat important, 4= important, 5= extremely important.  Basic purpose of this step was conducted pilot study.  They were requested to complete it and give feedback about it and also give suggestions so that improvement can be in managerial ability questionnaire.

3.6 Step 4 

  • 3.6.1 Sample.

Samples of 50 male and female participants were select through convenient sampling techniques.

3.7 Inclusion criteria

  • Managers were considering the inclusion criteria in this research.
  • Only those males and females include in this research that were on managerial post.
  • Minimum 2 years and maximum 20 years experience participants were include in this research.
  • Age range was above 25.

3.8 Demographic information questionnaire

Demographic Information Questionnaire  developed by the researcher to gather information from the participant such as name, age, gender, education, organizational name, designation, salary range and other information

3.9 Measure

Self developed managerial ability scale was used

3.10 Procedure

An authority letter from the institute of applied psychology university of the Punjab explaining the nature of research study and request from the permission of data collection was taken. Firstly the consent was taken from the participants and was asked for voluntary participation. Content analysis was used to analyze the data.

Table 1

Descriptive Statistics of Demographic Variables (Gender, Education and Marital Status,) of the Sample.

Variables   f %    
Gender

Male

Female

Education

    31

19

  

62

38

 

    

 

 

 

MA612
MBA3570
Other918
Education categories

         Graduate

Post graduate

Marital Status

    4

46

  8

92

    
Married3876
Unmarried714
         Divorce   3 6   
Widow/Widower24
 minimummaximumMSD
Experience23012.365.98
Income 150001,75,0001.712.35

Note: f= Frequency, %= Percentage

3.11 Ethical Consideration

In order to conduct this research some ethical consideration was kept in mind. Institutional permission was taken from the concerned authorities. Informed consent was taken from the participants and they were brief about the research objective. Anonymity of the participants and confidentiality of the data was ensuring.

Chapter IV

Results

This section describes an analysis of the data. Data was analyzed by using statistical package for social sciences (SPSS). A total of 50 managers from different national and multinational banks of Lahore were taken for this research. Analysis was divided in three portions. First portion contains the analysis containing the psychometric analysis of self construct questionnaire and descriptive analysis of demographic variable (age, gender, education, duration in service and age). Second portion contains advance statistical analysis. Pearson product moment correlation was carried out to find out the relationship between the manager responses and his subordinate responses. Third portion comprises reliability of scale.

Reliability and descriptive statistic of managerial ability scale were calculated.  The chronbach Alpha value of managerial ability questionnaire was .77. The result showed that our managerial ability scale is reliable for measuring manager’s ability.

Pearson Product Moment Correlation was applied to see the relationship between one manager’s responses with his two employees’ responses (12 managers with 24 employees) in table

Table 2

Pearson Product Moment Correlation between the managers responses and employees responses.

VariableManagersEmployees
Managers .75**
Employees  

Correlation is significant at 0.01 levels (2-tailed).

The relationship between manager’s responses and employees responses on managerial ability scale was investigated by using Pearson Product moment correlation coefficient. As table 3 shows that there is a strong positive statistically significant relationship between manager’s responses and employees’ responses on managerial ability. It means that managers self rating on Managerial ability scale was consistent with the rating of their employees. This scale is effective for the measurement of the managerial ability. Employee’s responses showed that employees considered that these abilities are existed in managers.

Table 3

Table shows the result of independent sample t-test for gender differences in managerial ability

NMS.Dtdfp
MA total

Male

Female

31

19

2.15

2.09

22.96

20.622

.95447.345
QuestionsParticipantsResponsesThemesItems
Q.1 Who is effective manager?1Effective manager who know about the importance of time managementTime managementMy working time can be flexible.

I can decide when to take a break.

2Effective manager is a person who manages his team.Team managementMy staff understands their roles and responsibility.

My team has clearly articulated goals.

3Who take all his team along with each otherTeam managementMy team operates at a high level of efficiency due to cooperation with each other.
4Who manage the issues within the circumstances and condition provide without mess and pressure.Stress managementI usually manage difficulties one way or another at work.
5A manager who solve problems effectively.Problem solvingI am effective at problem solving.

I immediately address problem when they arise.

Q.2 what abilities does an efficient manager possess?1Attitude toward staff should be supportive and hard working as a team leaderLeadershipI develop co-operative relationships with the people I work with
2He should have leadership qualities, time management skills; manage his time with smoothly flow.Leadership

Time management

I treat all members of my team with dignity and respect.

I have a choice in deciding what I do at work

3Leadership, emotional control, problem solving and decision making abilities.Leadership, emotional intelligence, problem solving, decision making.I look ahead and forecast what I expect the future to be.

I am aware of the non-verbal messages I send to others like.

I use my emotional energy to motivate others.

I work hard to find consensus in conflict situations.

I like to take most decision.

Making strategic plans for my company appeals to me.

4Leadership and effective decision making.Leadership, decision makingI look ahead and forecast what I expect the future to be like.

I work out all the prons and cons before making a decision.

I remain calm when I have to make decision very quickly

5Leadership is essential ability

For effective manager.

LeadershipI describe the kind of future I want my team to create.
Q.3 What type of skills are necessary for manager?1Handle and perform his duties successfully even in panic situation or time constrain.Stress managementI behave calmly in stressful situation.

I usually manage difficulties one way or another at work.

2Have skill to make their organization fun place to work.Workplace happinessI enjoy my job.

I am happier than most people I know.

I managing people and resources on workplace it is one of my strength.

3Manage his team and lead his team.LeadershipI am consistent in practising the values I believe in.
4Manager should be a good leaderLeadershipI expect that I will do well on most things I try.

I am able to accomplish goals I set for myself.

5Manager must have all skill like behave well at work place and do guide junior staff.leadershipI treat all members of my team with dignity and respect.

An independent sample t-test was conducted to find out the difference in managerial ability in males and female s. results have shown that there is no significant difference in male and females.

According to the themes following are few factors that were assigned to gauge out certain sub-levels or dimensions associated with managerial ability

Dimension or sub dimensionsExample managerial ability
LeadershipI develop co-operative relationships with the people I work with.
I treat all members of my team with dignity and respect.
I break projects down into manageable chunks.
I am consistent in practicing the values I believe in.
I expect that I will do well on most things I try.
Emotional Intelligence
I use my emotional energy to motivate others.
I am aware of the non-verbal messages I send to others.
I know why my emotions change.
I am patient with people.
I like to share my emotions with others.
  I am aware of my emotions as I experience them.
Team Management
My team operates at a high level of efficiency
My staff understand their roles and responsibility
My team has clearly articulated goals
Staff are held accountable for their actions
Decision Making
I prefer to avoid making decision if I can.
I take the safe options if there is one.
Making strategic plans for my company appeals to me.
I take intended risks to reach a goal.
I work out all the prons and cons before making a decision.
I avoid taking advice over decision.
I take the safe options if there is one.
Problem Solving
I am effective at problem solving.
 I immediately address problem when they arise.
I work hard to find consensus in conflict situations.
I resolves conflicts successfully
Time Management
I can decide when to take a break.
I have unachievable deadlines.
I have to neglect some tasks because I have too much to do.
My working time can be flexible
I feel that there are too many deadlines in my work/ life that are difficult to meet.
I have a choice in deciding what I do at work
Stress Management
I behaves calmly in stressful situation
I usually manage difficulties one way or another at work
I get easily distracted from my plans.
I seek out activities that make me happy.
Work place Happiness
I enjoy my job.
I am happier than most people I know.
I like the people I work with

Chapter IV

Discussion

The present research intended to develop an indigenous, scale for assessing the managerial ability

There is limited data on this specific topic to know about the abilities of the managers. Due to lack of adequate information on managerial abilities this study sought to gain a detailed understanding and knowledge of managerial abilities.

Sendjaya (2003) conducted the study development and validation of servant leadership behavior scale. Results of quantitative and qualitative studies which were conducted to build a measurement scale of servant leadership. The psychometric properties of the scores of the scale are theoretically sound and empirically solid. This study support results.

A research of Akhtar and Ahmad is consistence with the study. They conducted a study on development of scale to assess effective execution of human resource practices for general public sector universities. The scale reliability index was found alpha (α) 0.937.

Sendjaya (2003) conducted the study development and validation of servant leadership behavior scale. Results of quantitative and qualitative studies which were conducted to build a measurement scale of servant leadership. The psychometric properties of the scores of the scale are theoretically sound and empirically solid. This study support results.

Amjad and Rizvi (2008) is consistence with research. The aim of the research was find out the relationship between emotional intelligence and effective leadership style. They developed scale for affective leadership and alpha reliability of their scale is .89.

Managerial abilities are correlated with each other e.g.  Afzal and Shujja ( 2013) examine predictive relationship pattern between emotional intelligence (EI), and career decision making. Correlation analysis revealed that emotional intelligence was positively correlated with career decision making.

Rehman and Waheed(2012) leadership styles and their potential influence on individual decision making styles in banking sector of Pakistan along with the role of emotional intelligence in predicting the relationship between leadership’s styles and decision making styles. Results also described that among leadership and decision making styles, transformational and rational decision making styles are the most preferred styles of banking sectors’ employees.

Managerial ability enhance the manager’s performance Agarwal et al. (2007) consistence with research good management enhances firm value, well managed firms have higher profitability are able to sustain superior operating performance for longer and are rewarded by higher market valuations.

Silva (2009) model show how managerial ability the ability to run risky projects can increase total factor productivity and explain the pattern of capital flows. The model implies that countries with more high ability managers use more risky projects and have higher productivity. Consistent with the pattern of capital flows, the model predicts similar returns to capital across countries and higher returns in middle-income countries.

Theory Y said, managers may be ambitious and self-motivated and exercise self-control. It is believed that employees enjoy their mental and physical work duties. They possess the ability for creative problem solving, but their talents are underused in most organizations. Our result parallel to theory purposed. Problem solving is a state of desire for reaching a definite ‘goal’ from a present condition that either is not directly moving toward the goal, is far from it, or needs more complex logic for finding a missing description of conditions or steps toward the goal. Problem solving is a higher order cognitive process that requires the modulation and control of more routine or fundamental skills and as problem solving is a considerable managerial ability, it plays its part in determining high level of organizational performance.

According to the new management model that implemented across all business organizations begins with the function of leadership. There is a new era that has spread through the business world that involves rapid changes. One rapid change is that management has increasingly become a leadership task. Leaders help employees act on the vision of the company. Leaders execute and heighten the inspiration of employees, which cause employees to align relationships with management and better achieve company goals (Kotelnikov 2005). Our result was appeared to be consistent with leadership that component of the model.

My results are consistent with new effective theory of management that managers understand how to work with other people, and are capable of influencing and motivating employees to achieve company goals. This is the most important talent that a manager should have.

Therefore we can conclude that managerial ability can be significantly directed by means of certain aspects that we have discussed in this study. If a person needs to increase the level of his performance in an organization, he may need to work on these major perspectives.

Limitations   

Although the results indicated that questionnaire is reliable but these words are not, however, final words on this topic because several limitations have been noted in the present research.

Due to certain limitations, findings of the current research should b interpreted with caution. The first and most obvious matter is that the process of development is very time consuming and demanding vigorous efforts and devotion. Undoubtedly, it was very difficult, if not impossible to complete this work in short and stipulated period of time along with other course requirements.

The second major limitation is that subjects were taken from Lahore city only, which limits the generalize ability of study.

Due to time restriction a small sample was taken (N=50) whereas while constructing a test large number of subjects should be considered as ideal. So a large sample could have permitted reliable and valid results and consequently generalization of the results.

More over the conditions in which questionnaire was completed were not ideal because distracting variables like preoccupation of meetings and clients dealing were not controlled which might have affected the responses.

Suggestions

Due to above mentioned limitations, it is suggested that an intensive study is required on wide scale to get more reliable scores. For this purpose, following recommendations can be made: it may be suggested that sample should be recruited from different cities. It is also suggested that a large sample should be taken to run factor analysis.

Similarly a large sample should be taken to increase the generalize ability of the results.

Different extraneous variables should be controlled to have more confirmed results.

Implication

In Pakistan managerial skill questionnaire is used for assessing manager’s skill. But there is no one questionnaire for assessing managerial ability. But managerial ability scale is an indigenous tool and it assessed only abilities which are most commonly found in managers. As Pakistani managers first directly asked abilities which exists in a manager. Its psychometric properties as well as reliability and validity have been determined. Which showed that it is a fairly valid and reliable test can be used in Pakistan.

Conclusion

This study was conducted to develop an indigenous, reliable and valid tool for the assessment of Pakistani managers. So a fairly valid and reliable was mad. Identifying factors resulted into 8 independent factors, having total 53 items of managerial ability.

Also Study:

Sample Employee Development Plan Example

Development and Validation of Managerial Ability Scale – References;
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