Abstract
The three-factor, forty-five item instrument measuring manager's competence in retail banking returns a poor comparative fit index when modelled as an orthogonal or oblique model. Revisiting the original scale development study published in 1996 with a new data set and following a revised research design yields a considerably improved model. A second-order factor, overall managerial competence, is demonstrated to capture a meaning common to the five first-order factors, namely, entrepreneurial style , interpersonal skills , intellectual capacity , participative management style and emotional maturity . The revised model with substantially improved construct validity and reconfirmed instrument reliability can now be used with more confidence by human resource managers. The revised instrument can become a diagnostic tool in identifying areas of incompetence in management, as well as an instrument of feedback to the manager from subordinates. Allowing subordinates to voice their opinions about their immediate supervisor can become a welcome addition to the practice of participative management. The emergence of interpersonal skills and participative management style as the key factors explaining overall managerial competence indicates the importance of assessing managerial candidates on these factors.
Published Version
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