Proceedings of the 8th European Conference on Management Leadership and Governance Neapolis University Pafos, Cyprus 8-9 November 2012 Edited by Professor John Politis, Neapolis University Pafos Cyprus
Copyright The Authors, 2012. All Rights Reserved. No reproduction, copy or transmission may be made without written permission from the individual authors. Papers have been double-blind peer reviewed before final submission to the conference. Initially, paper abstracts were read and selected by the conference panel for submission as possible papers for the conference. Many thanks to the reviewers who helped ensure the quality of the full papers. These Conference Proceedings have been submitted to Thomson ISI for indexing. Further copies of this book and previous year’s proceedings can be purchased from http://academic-bookshop.com CD version ISBN: 978-1-908272-76-8 CD version ISSN: 2048-9048 Book version ISBN: 978-1-908272-75-1 Book Version ISSN: 2048-9021 Published by Academic Publishing International Limited Reading UK 44-118-972-4148 www.academic-publishing.org
Contents Paper Title
Author(s)
Page No.
Preface Committee Biographies Reintroducing the Owner: On Corporate Governance, Goals, Organisation and Leadership Theories
Jon Aarum Andersen
1
Creating the Superior Islamic Banking Through Improving Quality of Human Resources in Pakistan
Sanaullah Ansari and Muhammad Arshad Abbas
8
Brand Management - the Part of Integrated Marketing Communication of Industrial Enterprises
Dagmar Babčanová, Vanessa Prajová and Petra Marková
15
An Investigative Research Regarding Romanian Managers Behaviour Towards Creative Accounting Practices
Diana Balaciu, Victoria Bogdan, Dana Gherai and Dorina Popa
22
Virtual Reality as a Decision Making Tool in Construction Management
John Bellos
30
Bata and Amoeba: Successful Management Systems to Maximize Corporate Performance
Michaela Blahová
39
Rational Team Concert in Software Engineering and Management Education
David Bleicher, William Foy and Nasseh Tabrizi
50
Reporting Business Risks: A Necessity of Sound Corporate Governance Mechanisms
Carmen Giorgiana Bonaci, Razvan Mustata and Jiří Strouhal
58
Quality Process Management in Healthcare Facilities
Petr Briš and Kristýna Keclíková
66
A Comprehensive View on Evaluation of Cluster Initiatives
Vladimír Bureš, Veronika Jašíková, Tereza Otčenášková, Karolína Kolerová, Václav Zubr and Petra Marešová
74
Career Development for ICT Professionals: Driving Transparency in Educational Attainment
Marian Carcary, Martin Sherry, Stephen McLaughlin and Conor O’Brien
80
Discourses of Governance: Paradox, Paralysis and Generativity
Brigid Carroll, Coral Ingley, Lester Levy, and Kerr Inkson
88
Sustainable Value Creation Through Entrepreneurial Leadership in SME
Eng Chew
96
Audit Demand in Private Firms: Coping With Complexity
Maarten Corten, Tensie Steijvers and Nadine Lybaert
103
Do Employees Accept the Information Systems That Management Buy? A BPM Implementation Case Study
Benny de Waal, Paul Breman and Ronald Batenburg
110
Is Religion an Influential Factor in the Managerial Decision Taken at the Level of Corporate Governance Structures?
Paul Diaconu and Dan Dumitrescu
120
Approval and Application Accounting Policies in Romania– Expression of International Accounting Convergence Impact on the Systems of Corporate Governance
Elena Dobre
128
i
Paper Title
Author(s)
Network Governance and Supporting Entrepreneurship Case Study: Regional Entrepreneurship Network in North – West and West Regions of Romania
Anca Dodescu and Ioana Pop-Cohuţ
136
Information and Communication Technologies: Their Impact on Management and Key Functions to Adapt
Diane Duparc
141
Leading to an Ultimately Ethical Management Practice in Engineering
Th. Economides
148
Public Sector Leadership for Sustainable Environment Directives
Th. Economides and Athena Economides
155
Barriers to the Effective Deployment of Information Assets: The Role of the Executive Manager
Nina Evans, Louis Fourie and James Price
162
The Evolution of Corporate Governance and Accounting in a Sustainability Context
Niculae Feleagă, Liliana Feleagă and Voicu Dan Dragomir
170
Insights for a Business Administration Faculty: Considering SME Manager’s Style of Leadership
Valentina Ghinea and Irina Purcarea
178
Does International Business Travel Weaken National Attachments of Russian Business People? An Interdisciplinary Exploration of the Cultural Distance/Cultural Friction Debate
Tatiana Gladkikh and Christopher Mabey
188
Fragile Links and Border Crossers in the Triple Helix: Personnel Exchange Within R&D Partnerships
Silke Gloaguen
198
Entrepreneurial Globalization: Emerging Multinationals From Emerging Economies
Sam Hariharan and Srinivasa Rangan
209
Business and IT: Beyond Alignment
Kari Hiekkanen, Mika Helenius, Janne Korhonen and Elisabete Patricio
217
Women in Business: Blueprint for Individuals and Organisations
Viki Holton and Fiona Dent
225
Performance Audit Considering the Sustainability: Approach of the Czech Enterprises
Michaela Horová
231
The Transformation of Citizens in an Entrepreneurial City’s Human Resource Through Participation
Monica Izvercianu and Ana-Maria Branea
237
Changing Marketing Tools and Principles in Prosumer Innovation Management
Monica Izvercianu, Sabina Şeran and CellaFlavia Buciuman
246
Developing the Competence of the Managers in Selected Manufacturing Enterprises Operating in the Slovak Republic
Martina Jakábová, Dagmar Babčanová, Dagmar Cagáňová, Martin Hrablik, Jana Urdziková and Rastislav Beňo
256
Evolution of Corporate Governance Models and Implications for Central and Eastern European Countries (The Case of Poland)
Jan Jeżak
265
Two-Dimensional Governance Matrix: A Framework to Evaluate Organizational Governance
Pavel Kral, Stanislav Tripes, Petr Pirozek and Pavel Pudil
272
Customer! The Forgotten Stakeholder
Themistokles Lazarides, Stamatios Kontsas and Electra Pitoska
279
A Synthesis of Grounded Approaches to Governance Research: Black Box Research Reveals the Division of Labour
James Lockhart
286
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Page No.
Paper Title
Author(s)
The Impact of the Crisis Onto the Romania’s SMEs’ Activity
Liana Meşter, Nicoleta Bugnar and Adriana Giurgiu
294
Measuring Corporate Social Responsibility (CSR) With Multi-Dimensional Scales: A Caution on The Risks Of Conceptual Misspecification
Salmi Mohd Isa and Jon Reast
302
Vicious Cycles – Challenges to Voluntary Leadership in Nigeria
Abiola Olukemi Ogunyemi
311
Leadership Impact on Elementary School’s Effectiveness and Improvement
Christos Papademetriou
317
Current Intercultural Management Strategies: The Role of Communication in Company Efficiency Development
Marcel Pikhart
327
The Relationship Between Servant Leadership and Personality Characteristics: The ‘Big Five’
John Politis and Nicholas Politis
332
The Relationship Between Agency Problems and Ethical Leadership
Dario Pontiggia and John Politis
340
Leadership as Facilitation: Practices That Create a Winning Environment in Organizations
Parveen Prasad
347
Review of Leadership Curricula at Selected Higher Educational Institutions: A Public Management Paradigm
Maliga Reddy and Pregala Pillay
355
The Effect of Absorptive Capacity on Product Innovation: A Leadership Perspective
Mohammad Rezaei Zadeh and Nandish Patel
366
Social Justice for Sustainable Management
Vitalija Rudzkiene and Migle Cernikovaite
372
Convergence of Corporate Governance in a Globalised World: The Case of the BRICs
Daniela Salvioni, Alex Almici and Luisa Bosetti
380
Accounting Aspects of Cross-Border Mergers Between Czech and Cypriot Companies
Roman Sklenár
390
Developing the new Dimension of Monitoring and Evaluation Processes Within Project Management
Florin Tache
398
The Perception of Romanian Entrepreneurs on Environmental Leadership: An Empirical Study
Oana-Cătălina Țăpurică
408
Processes of Accounting Harmonization and Standardization in the European Union Versus the Sustainability Development Concept
Lucie Vallišová and Lilia Dvořáková
418
Resolving Conflicts Within Multicultural Teams in Industrial Enterprises in Slovakia
Veronika Videnová, Dagmar Cagáňová, Paul Spencer Woolliscroft, Jana Makraiová and Viera Vančová
426
Symbiosis of Management and Leadership in Non-Profit Sport Clubs
Jan Voracek, Stanislav Tripes, Pavel Pudil and Petr Somol
433
Corporate Leadership in the 21st Century and its Influence in Sustainability Reporting
Jitka Zborková
442
PHD Papers
Page No.
449 Adrian Doru Bîgioi, Niculae Feleagă and Liliana Feleagă
Corporate Governance of Public Companies Proposed to Privatize in Romania
iii
451
Paper Title
Author(s)
The Issues Surrounding the Fiscal Effectiveness of Investment Incentives in the Czech Republic
Miroslava Cedidlová
459
Impacts of Selected Methods of Credit Risk Management on Bank’s Performance
Eva Cipovová and Jaroslav Belás
465
Theory of Constraints Based Information Systems in Production Management
Denisa Ferenčíková
474
Assessment Methods of Corporate Governance Systems: Factors, Indicators and Measures
Jiří Franek and Miroslav Hučka
481
Theoretical Model of Communication Approaches in Family-Owned Businesses During Generational Transition
Milan Hnátek
490
Virtual Enterprise: Benefits and its Quantification
Kateřina Huspeninová and Lubor Homolka
497
Leadership Styles of Undergraduates: The Impact of Emotional Intelligence
Chandana Jayawardena
505
Implementation of ERP System and its Effects on Modern Management Accounting
Veronika Komorousová
514
Process Management for Quality Assurance: Case of Universities
Jānis Mazais, Inga Lapiņa and Raimonda Liepiņa
522
Organisational Change and Culture: A Case Study of the University of KwaZulu-Natal, South Africa
Saloschini Pillay and Pregala Pillay
531
The Evolution of Romania’s Regional Competitiveness as Response to Regional Government
Ramona Marinela Simuţ and Lavinia Florentina Chirilă
542
Work in Progress papers
Page No.
551
Civic Leadership for Cities in Transition
Dorothy Mckee, Janette Sheerman and Michelle Rusk
553
Searching Factors of Corporate Competitiveness Using Statistical Pattern Recognition Techniques
Pavel Pudil, Ladislav Blazek, Petr Somol, Jana Pokorna and Petr Pirozek
556
Adoption of IFRS in Emerging Economies: A Note on Cost/Benefit Analysis from Czech Perspective
Jiří Strouhal, Marie Paseková and Hana Ředinová
560
Late Submission
565 Philip Dover and Udo Dierk
Developing an Entrepreneurial Mindset: Does Size of Firm Matter?
iv
567
Preface These Proceedings represent research presented at the 8th European Conference on Management, Leadership and Governance (ECMLG) hosted this year by The Neapolis University Pafos. The Programme Chair is Professor John Politis and the Conference Chair is Professor Elias Dinenis, both from the Neapolis University Pafos, Cyprus. The main purpose of the ECMLG Conference is for individuals working in the area of Management Leadership and Governance to come together to share knowledge with peers interested in the same area of study. The range of papers will ensure an interesting two days. The topics covered by the papers illustrate the wide range of issues that fall into this important research area. With an initial submission of 203 abstracts, after the double blind, peer review process there are 57 academic research papers, 12 PhD papers and 3 work in progress papers published in the Conference Proceedings. These papers represent research from Australia, Belgium, Cyprus, Czech Republic, Finland, France, Germany, Greece, India, Iran, Ireland, Italy, Latvia, Lithuania, Malaysia, New Zealand, Nigeria, Norway, Pakistan, Poland, Romania, Slovakia, South Africa, The Netherlands, United Kingdom and United States of America. I hope that you have an enjoyable conference. Professor John Politis, Neapolis University Pafos, Cyprus October 2012
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Conference Committee Conference Executive Danièle Chauvel, SKEMA Business School, Sophia-Antipolis, Nice, France Elias Dinenis, Neapolis University Pafos, Cyprus Charles Despres, SKEMA Business School, Sophia-Antipolis, Nice, France John Politis Neapolis University, Pafos, Cyprus
Mini Track Chairs Professor Philip Dover, Babson College, USA Professor Niculae Feleaga, Academy of Economic Studies, Romania Dr James Lockhart, Massey University, New Zealand Assistant Professor Monica Zaharie, Babes-Bolyai University, Romania
Committee Members The conference programme committee consists of key individuals from countries around the world working and researching in the management, leadership and governance fields especially as it relates to information systems. The following have confirmed their participation: Paul Abbiati (PMMS Consulting Group Legal Consultant and member of The Chartered Institute of Purchasing & Supply, UK); Mo'taz Amin Al Sa'eed (Al - Balqa' Applied University, Amman, Jordan); Ruth Alas (Estonian Business School, Tallin, Estonia); Maria Argyropoulou (Boudewijngebouw 4B , Greece); Ahmet Aykac (Theseus Business School, Lyons, France); Egon Berghout (University of Groningen, The Netherlands); Svein Bergum (Lillehammer University College, Norway); Mihai Berinde (University of Oradea, Romania); Malcolm Berry (University of Reading, UK); Douglas Branson (University of Pittsburgh, PA, USA); Kiymet Tunca Caliyurt (Department of Accounting & Finance, Trakya University Faculty of Business Administration and Economics, Turkey); Akemi Chatfield (University of Wollongong, New South Wales, Australia); Daniele Chauvel (SKEMA Business School, Sophia-Antipolis, Nice, France); Eng Chew (University of Technology, Sydney, Australia); Mei-Tai Chu (La Trobe University, Australia); Phillip Davidson (University of Phoenix, School of Advanced Studies, Arizona, USA); John Deary Independent Consultant, UK & Italy); Andrew Deegan (University College Dublin, Ireland); Dirk DeSchoolmeester (Ghent Business School, Belgium); Charles Despres (SKEMA Business School, Sophia-Antipolis, Nice, France); Sonia Dias (Faculdade Boa Viagem, Recife, Brazil); Elias Dinenis (Neapolis University Pafos, Cyprus); Philip Dover (Babson college, USA); Katarzyna Durniat (Wrocław University, Poland); David Edgar (Caledonian Business School, Glasgow, UK); Niculae Feleaga (Academy of Economic Studies, Romania); Liliana Feleaga (Academy of Economic Studies (ASE), Romania,); Aikyna Finch (Strayer University, USA); Shay Fitzmaurice (Public Sector Times, Ireland); Silvia Florea (Lucian Blaga University, Romania,); Adriana Giurgiu (University of Oradea, Faculty of Economic Sciences, Romania); Ken Grant (Ryerson University, Toronto, Canada); Paul Griffiths (Director, IBM, Santiago, Chile); Adam Gurba (WSZ Edukacja Management Department, Poland); Ray Hackney (Brunel Business School, UK); Joe Hair (Louisiana State University, USA); Memiyanty Haji Abdul Rahim (Universiti Teknologi MARA, Malaysia); Patrick Hester (Old Dominion University, USA); Fakhari Hossien (UMA university, Iran); Jack Huddlestone (Cappella University, USA); Gordon Hunter (University of Lethbridge, Canada); Eun Hwang (Indiana University of Pennslyvania, USA,); Nada Kakabadse (Northampton Business School, UK); Georgios Kapogiannis (University of Salford, Manchester, UK); Husnu Kapu (Kafkas University, Turkey); Panagiotis Karampelas (Hellenic American University, Athens, Greece); Alicja Keplinger (Institute of Psychology at the University of Wroclaw, Poland); Zdzisław Knecht (Wroclaw College of Management, Poland); Maria Knecht-Tarczewska (Wroclaw College of Management “Edukacja”, Poland); Dimitrios Koufopoulos (Brunel University, UK); Jolanta Kowal (College of Management and Wroclaw University, Poland); Aleksandra Kwiatkowska (College of Management and Wroclaw University,, Poland); Mieczysław Leniartek (Technical University in Cracow, Poland); James Lockhart (Massey University, Palmerston North, New Zealand); Sam Lubbe (University of South Africa, South Africa); Camelia Iuliana Lungu (Academy of Economic Studies, Bucharest, Romania, Romania,); Ahmad Magad (Marketing Council, Asia, Singapore); Virginia Maracine (Bucharest University of Economic Studies, Romania); Bill Martin (Royal Melbourne Institute of Technology, Australia); Xavier Martin (ESSEC, France); Aneta Masalkovska-Trpkoski (Faculty of Administration and Information Systems Management, Macedonia); Roger Mason (Durban University of Technology, South Africa); Michael Massey (International Centre for Applied EQ Leadership, UK); Luis Mendes (Beira Interior University, Portugal); Philip Merry (Global Leadership Academy); Thomas Meyers (Old Dominion University, USA); Kevin Money (Henley Business School of the University of Reading, UK); Aroop Mukherjee (King Saud University, Saudi Arabia); Hirohisa Nagai (University of Tsukuba/Izmir University of Economics, Japan/Turkey); Timothy Nichol (Northumbria University, UK); Chris Norman (Deloitte & Touche, Neuilly, France); Maciej Nowak (University of Wrocław, Poland); Abdelnaser Omran (School of Housing, Building and Planning, vi
Universiti Sains Malaysia, Malaysia); Nayantara Padhi (Indira Gandhi National Open University, New Delhi, India); Eleonora Paganelli (University of Camerino, Italy); Jatin Pancholi (Middlesex University, UK); Ewa Panka (College of Management and Wroclaw University, Poland); Stavros Parlalis (Frederick University, Cyprus); Noel Pearse (Rhodes Business School, South Africa); George Phillip (Queens University of Belfast, Ireland); John Politis (Neapolis University Pafos, Cyprus); Nataša Pomazalová (FEM University of Defence, Czech Republic); Adina Simona Popa (UNIVERSITY "EFTIMIE MURGU" OF RESITA, ROMANIA); David Price (Henley Business School of the University of Reading, UK); Despina Prinias (Hellenic American University, Athens, Greece); Gazmend Qorraj (University of Prishtina, Kosovo); Senthamil Raja (Pondicherry University, India); George Rideout (Evolution Strategists, LLC, USA, www.evolutionstrategists.com); Jan Sarpara (University of Balochistan, Qetta, Pakistan); Chaudhary Imran Sarwar (Creative Researcher, Lahore, Pakistan); Maria Theresia Semmelrock-Picej (Klagenfurt University Biztec, Austria); Kakoli Sen (Institute for International Management and Technology (IIMT) Gurgaon, India); Irma Shyle (Polytechnicc University of Tirana, Albania); Samuel Simpson (University of Ghana Business School, Accra, Ghana); Raj Singh (University of Riverside, USA); Gregory Skulmoski (Cleveland Clinic Abu Dhabi, United Arab Emirates); Mateusz Sliwa (Wrocław University, Poland); Peter Smith (University of Sunderland, UK); John Sullivan (School of Information, University of South Florida, USA); Reima Suomi (University of Turku, Finland); Ramayah Thurasamy (Universiti Sains Malaysia, Malaysia); Milan Todorovic (Union Nikola Tesla University, Serbia); Alan Twite (COO Vtesse Networks, UK); Gerry Urwin (Coventry University, UK,); Mirosława Wawrzak- Chodaczek (Institute of Pedagogy, Wrocław University, Poland); Lugkana Worasinchai (Bangkok University, Thailand); Brent Work (Cardiff University, UK); Monica Zaharie (Babes-Bolyai University, Romania).
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Developing the Competence of the Managers in Selected Manufacturing Enterprises Operating in the Slovak Republic Martina Jakábová, Dagmar Babčanová, Dagmar Cagáňová, Martin Hrablik, Jana Urdziková and Rastislav Beňo Slovak University of Technology in Bratislava, Faculty of Materials Science and Technology in Trnava, Institute of Industrial Engineering, Management and Quality, Paulínska 16, Trnava, Slovak Republic
[email protected] [email protected] [email protected] [email protected] [email protected] [email protected] Abstract: This paper deals with the results of the research on the present state of project managers’ competences development in selected manufacturing enterprises in the Slovak Republic. Research was carried out in order to record real competences of project managers and other members of project teams (employees working on projects) in project management. Selective research sample presented random selected 710 manufacturing enterprises in Slovakia. Total of 64 respondents took part in the research. It was carried out by means of electronic questionnaire and interview throughout May 2011. Individual questions in the questionnaire arose out of existing approaches and standards of project management and the research carried out in 2008 within the frame of dissertation thesis called Proposal of Methodology for Managing the Life Cycle of Projects for Industrial Companies in Slovakia. Paper included individual analysis carried out following the distribution of respondents according to their sex – male and female. Methods of preparation to scientific and research activity, methods of collecting new data (observation and analysis of documents, questionnaire and interview) and methods of data processing (Pearson´s chi-square test and qualitative methods) were used to process the research results. Moreover, a number of other creative methods, techniques and tools of data files processing were used in addition. As to the competences of project management, the research results pointed out that most frequently are the individual competencies evaluated as sufficient (median) – in men as well as women, for example team work, problem and new situation solving, communication and cooperation, leadership, involvement and motivation, self-control, performance, personal management, health, safety, protection of life and environment, analysing and setting the goals of the project, planning, evaluation and rewarding, business aptitude, strategic thinking, independence etc. Women were much stricter in self-evaluation of competencies in the field of project management, mainly when we speak about the area of finances (average evaluation median). Men, without telling the reason, did not show any interest in developing their competencies in project management. Women, in contrast to men, did show interest in developing their competencies in project management. However, their busyness and personalities often prevented them from doing so. At the same time, three hypotheses were defined. Two of them were focused on the influence of enterprise size and the space employees have to develop their competencies and methods of evaluating the competencies in enterprises. Third hypothesis was focused on the difference between men and women in their interest in developing their competences in project management. Keywords: project management, competence, gender; enterprise, framework
1. Introduction Nowadays many enterprises, whether large or small, recognise project management as a core business capability. They seek to reap benefits for the business through effective project management. As a result of the problems of defining and measuring competency for project managers are exercising the profession’s leading researchers and practitioners alike from the field. Project management is increasingly recognised in the world and requires mastery of a vast range of behaviours honed to suit the particular project and organizational context. Project management competency describes those behaviours that enable effective managing projects (Murray-Webster, 2011; Delo, Hepworth, Hepworth, 2011; Hillson, 2011; Cartwright, Yinger, 2011; Reháková, Jakábová, 2011). This paper presents the outcomes of research that examined the current status of competence development of project managers in selected manufacturing enterprises operating in the Slovak
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Martina Jakábová et al. Republic. The paper focuses on the general aspects of skills and knowledge development, since that presents commonality for the different project types.
2. Theoretical background In the literature there appears a whole range of differing approaches to understanding the term competency. The difference is in its use and importance that the professional and general public attaches to it. They still understand competency as an opportunity to comment on some problem, or power or authority to decide about something. In this case the term competency is linked to other terms such as influence, power or authority (Reháková, Jakábová, 2011). The very term competency comes from the Latin word “competens” (suitable, appropriate, proper etc.). “Competentie” can be translated as “somebody, who has the right to judge” or “somebody, who has the right to speak”. In general use, terms such as knowledge, skill, attitude, ability, capability, aptitude and performance are often used interchangeably with the term competency. In addition, some practitioners use the term competence – thus creating confusion in the use of different terms competency (plural competencies) and competence (plural competences). It is important to clarify the generally accepted usage of the terms (see Table 1). Table 1: The differences between competency and competence (Delo, Hepworth, Hepworth, 2011; Reháková, Jakábová, 2011) INPUT COMPETENCIES In general, cover a wide range of different situations.
OUTPUT COMPETENCES Based on a work task and relate to a particular role or job.
OUTCOME SUCCESSFUL PROJECT DELIVERY
Decision Making Ability, Personality, etc.
Execution of Risk Management. Maintaining Stakeholder Commitment, etc.
Delivered project objectives. On course to achieve benefits. Stakeholders satisfied.
Performance
Although long discussions are held about it – the term "competence" better captures the essence in the Slovak language. It is also necessary to distinguish a project management competence and a competent project manager. Project management competence is the demonstrated ability to perform activities within a project environment that leads to expected outcomes based on defined and accepted standards. A competent project manager consistently applies his (her) knowledge, skills and personal characteristics to deliver projects that meet stakeholders’ requirements (Murray-Webster, 2011; Delo, Hepworth, Hepworth, 2011; Hillson, 2011; Cartwright, Yinger, 2011; Reháková, Jakábová, 2011). Project management competence frameworks: The different ways exist for measuring project competences that include psychometric instruments, project management knowledge tests, peer assessments and assessment centres. Competences can be measured in similar ways using self-assessment and (or) peer assessment against a ® ® competence framework (for example ICB ; APM Competence Framework etc.), or assessment ® centres (for example APM Practitioner Qualification etc.). Listed below are some examples of project management competence frameworks (Hoberecht, B. 2010; Delo, Hepworth, Hepworth, 2011; Reháková, Jakábová, 2011). PMI® - PMCDF® (Project Management Competency Development Framework® - 2nd edition in 2007; USA) is a standard developed by the PMI®, based upon the now-obsolete PMBoK® (Project Management Body of Knowledge®) (Hoberecht, B. 2010; Cartwright, Yinger, 2011; Project Management Institute®, 2007). The standard provides guidance the general principles for defining project manager competence. There are three different competence dimensions – project management personal, knowledge (not in the PMCDF®, defined by the PMP® Examination Specification) and performance competences. The standard is structured to show units of competence, a number of elements of competence and performance criteria. Types of evidence are associated with each of the performance criteria (Hoberecht, B. 2010; Delo, Hepworth, Hepworth, 2011; Cartwright, Yinger, 2011; Project Management Institute®, 2007; Reháková, Jakábová, 2011).
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Martina Jakábová et al. IPMA® - ICB® (IPMA Competence Baseline® - 3rd edition in 2006; Europe) defines the knowledge and experience expected from the project managers. It was issued by the IPMA® (International Project Management Association®) (Coll., 2006). The foundation of this standard is that competence is best indicated by a demonstrated ability to apply knowledge and skills. It classifies 46 competency elements into three groups – technical, behavioural and contextual competence elements. Each element is composed of a knowledge and experience component that can be evaluated to yield a competency assessment, where value from 0 (no competence) through 10 (absolute maximum) are use (Hoberecht, B. 2010; Cartwright, Yinger, 2011; Reháková, Jakábová, 2011). APM® - APM® Competency Framework, based upon the APM Body of Knowledge 5th edition, is a tailored version of the ICB®. The standard has the same structure, but has a different set of competence elements. The APM® Competency Framework’s self-assessment form shows the overall structure and names of all the competence elements (Hoberecht, B. 2010). The Project Management Standard published as open source by the GAPPS (Global Alliance for Project Performance Standards). This standard is structured into six units – manage stakeholder relationships, manage development of the plan for the project, manage project progress, manage product acceptance, manage project transitions, evaluate and improve project performance. Each unit has multiple elements, which in turn have defined performance criteria (Hoberecht, B. 2010). ISO/IEC – ISO 21500 defines competences of project personal. Project management competences can be categorized into, but not limited to – technical competences for delivered projects, in structured way, including the project management processes defined in this standard, behavioural associated with the personal relationship within the defined boundaries of the project, contextual competences – related to management of the project within the organisation environment (Jakábová, 2010). These are all very good competency frameworks, and each is the result of significant research and review. Of course, there are other also good project management competency frameworks, such as ® ® PRINCE2 (PRojects IN Controlled Environment ); Certified Scrum Master; ESI International; ® Australian Institute of Project Management etc. If you use one Project Management Framework, do not use another.
3. Specifying the problems and setting up the hypotheses To develop the skills of project managers is very important as they have opportunities in their work to enable them to develop their skills. This also personally moves them forward and effectively manages business and an overview of their job. The issue of competence development can to some extent influence the size of the undertaking in which the manager operates. Concerning the mentioned fact, the first hypothesis was set up. It will be proved or disapproved in the next part of this article (Reháková, Jakábová, 2011): H1: There is a relation between the size of enterprises and the opportunity for employees to develop their competences. Not every employee wants to develop their competences, which are the basis of business management and project team. The research has shown that there is a difference in the interest of the use of competences between male and female. Based on the above problem the second hypothesis was formulated. The aim was find out, which sex had more interested in developing competence. On the ground of the aforesaid, the second hypothesis was set up. It will be proved or disapproved in the next part of this article. H2: There is a relation between male and female in order to develop their skills. There are different methods to evaluate competences. Each of them is focused on testing or studying in other areas, such as personality, knowledge, skills or logical thinking. With all methods the ability of employees or their suitability to perform those position are verified. H3: There is a relation between the size of enterprises and use of methods for assessing competences.
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Martina Jakábová et al. Based on the problems mentioned above, the goal of this research was set up. It is the „analysis of current state of competence development of project managers in manufacturing enterprises in Slovakia“. This research can be characterised as quantitative. Research hypotheses were descriptive. The main goal was to gain the exact, objective and verifiable data on the examined problem (Reháková, Jakábová, 2011).
4. Research methodology Research was focused mainly on the examination of competence development of project managers in manufacturing enterprises in the Slovak Republic. It was an explorative or more precisely investigative research. The main objects of study within this research were manufacturing enterprises operating in the Slovak Republic regardless of their size. The selected sample was chosen randomly. Considering the time demand, the overall amount was set up for the sample of 710 addressed manufacturing enterprises. The collection of research data was carried out from 06th of May 2011 to 20th of May 2011. From the total number of addressed manufacturing enterprises, 64 respondents answered the questionnaire, representing a response rate of 9 % (Reháková, Jakábová, 2011). The questioning method was in the form of an electronic questionnaire which was selected to collect the data. The results of the theoretical knowledge analysis, enterprise websites and their promotional material were used to design the questionnaire. The questionnaire was designed to cover the problem in the most complex way. The questionnaire structure was divided into 2 parts – input (introductory information on securing of respondent’s anonymity, instructions, and request for handing in the questionnaire plus thanking) and the main part sought views on importance of a competences identified from the literature and their current ability to use it. The questionnaire included 18 questions. According to the degree of answers latitude, closed, open and semi-open questions were used in this questionnaire. The closed questions offered in advance one and more possible variations of answers. Then there were partially closed questions which, instead of giving alternative answers, offered selection with open ending. The main reason for selecting the closed questions was that it was a quantitative research with relatively high number of respondents. In the questionnaire, structured answers were used, categorical answers as well as answers to complete. The respondents were requested to evaluate competences on a five-point scale – value from 1 (excellent preparedness) through 5 (lack of preparedness). The research examination procedure came out directly from the set goal, which was possible to fulfil only on the ground of detailed and systematic processing of sufficient theoretical and practical knowledge in the field of project management competence, gained from primary and secondary resources (Ph.D. thesis and other theses from the field of project management competence worked out at the Institute of Industrial Engineering, Management and Quality at the Faculty of Materials Science and Technology in Trnava, studies of analysis and questionnaire surveys carried out at other universities and in the business practice abroad and in Slovakia, studies of domestic and foreign scientific literature, documents, scientific magazines, periodicals, monographs, educational texts, interviews with scientists and professionals from the practice etc.). To reach the expected goal, many different approaches, methods, techniques or tools of scientific research were used. Time, organisational, personal, technical and expense possibilities of the research solution were taken into consideration. While working out the problem, the methods for preparation to scientific research were applied (study of scientific literature, working out the literature retrieval, working out the excerpts, their processing and classification, using the literature), as well as the methods of gaining new data (monitoring, document analysis, questionnaire and interview), methods of data processing (quantitative methods, such as methods of setting up the statistical characteristics – Pearson’s chisquare test and qualitative methods, such as analysis and synthesis, induction and deduction, comparison and generalisation). Including the methods into the individual phases of the solving process was not constant. Some methods were used in other phases of the problem solving process as well. As additional methods were used graphic presentations, table visualisation and word and number interpretation. Transmission of all data gained was provided through MS Excel and on-line statistic package. Moreover, whole rank of other creative methods, techniques and tools of data file processing were used marginally (Cartwright, Yinger, 2011; Foret, Stavkova, 2003; Kozel et al, 2005). General Background: Most respondents (61 %) were male and only 39 % were female from the manufacturing enterprises. Approximately 37,50 % of respondents worked in the micro-enterprises (men 25 %, women 12,50 %), followed small enterprises (29,69 %; men 15,63 %, women 14,06 %), medium enterprises (20,31 %; men 14,06 %, women 6,25 %) and large enterprises (12,50 %; men 3,13 %, women 9,38 %). The
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Martina Jakábová et al. target group of the research was project managers. However, not every manufacturing enterprise had the position of project manager; therefore other positions have been included in the research. The aim was to contact like employees with similar positions or those working in management positions in the project management field. The research results show that positions in the company of manager (36 %), production manager (3 %) and IT manager (2 %) were mostly male. Females worked more often as personnel managers (9 %) or project leaders (5 %). More than 35 % of males and 11 % of females were from the enterprises existing on the market from 11 to 20 years, followed enterprises older than 30 years, where 7 % of male and 11 % female worked. Eleven percent of male and female worked in the enterprises existing on the market from 6 to 10 years, 2 % of male and 4 % of female were from the enterprises existing from 0 to 3 years and 2 % of male and female from the enterprises existing from 4 to 5 year. Only 4 % of male were from the enterprises existing on the market from 21 to 30 years. Fifty percent of male and 33 % female were active participated in carrying out projects. Together, these general background results were taken to indicate that the respondents were qualified to participate in the research and hence the results should reflect the current and important project management issues addressed by the research (Reháková, Jakábová, 2011). Project Management Competences – differences between respondent group (male – female): By 8 % of men and only 1 % of women, the term “competence” was understood as a complex ability and other suppositions, (mainly) motivation to deliver managerial performance. Competence as a set of skills, knowledge and behaviour necessary for successful job performance was ticked by 5 % of men and 11 % of women. The same percentage of men and women (3 %; 3 %) stated that competence is a person´s ability to carry out certain function or activity and 3 % of men and 1 % of women considered competence as a feature of an employee that significantly conditions his performance and quality at a given position. After distribution of respondents according to their sex, an interesting fact appeared. There were mainly men in the enterprise, who were working with people as well as with process management. Thirty-two percent of men worked in the field of process management and only 15 % of women were involved. In the area of management, 23 % of men and only 9 % of women worked. Competence would not be classed in any of the stated areas by 5 % of men and 11 % of women. Three percent of women ticked other possibility – competence would be classed in the overall management of enterprise. Thirty-one percent of men and 11 % of women had carte blanche in work; it means free space to develop competencies in enterprise. Seventeen percent of men and only 5 % of women had partially set borders to develop competences in enterprise. Only 9 % of men and 17 % of women had carte blanche in certain situations in enterprise, but in some other situations they were tied by rules. Little space to develop own competences in enterprise was characterised by the same percentage of men and women (3 %, 3 %). Three percent of women could not develop their competencies in enterprise at all. Busyness prevented 34 % of men and 17 % of women from developing their competences in enterprise, it means the respondents (mainly men) would like to develop their competences, but they have not found the time to do so yet. Consequently the small number of employees managed by the respondents prevented them from developing their competences (men 12 %; women 3 %) as well as independent workload of respondents (men as well as women 8 %) with clearly defined responsibilities and no time, space or respondent´s personality to develop competences (men 1 %; women 6 %), respondents rather followed the orders than to be initiative (respondent was not a leader in his personality). Five percent of men and 3 % of women could not develop their competencies due to other circumstances that were not further specified. Goal of the following 6 questions was to find out the level of project managers readiness in utilizing their competencies from given fields through their self-evaluation. Individual competencies arose directly out of the methodology and standards of project management. Five point scale was used, where 1 stood for excellent readiness, sufficient readiness was expressed by number 2, 3 was for average readiness, 4 stood for weak readiness and number 5 presented insufficient readiness. To evaluate the competencies, median was used in order to determine the importance of present utilization of competencies (see Table 2): Research further pointed out that only 14 % of men and 8 % of women in enterprise used the methods of competences evaluation. Among the most frequently used methods of competences evaluation in enterprises, the respondents stated (see Table 3):
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Martina Jakábová et al. Table 2: Rating of readiness level for using the competences (Reháková, Jakábová, 2011) Area of competence Analyzing and setting goals Planning Performance and evaluation Business spirit Strategic thinking Independence Project organisation Solving problems and new situations Teamwork Communication and cooperation Leadership Involvement and motivation Performance Self-control Personnel management
Men – med (x) 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Women – med (x) 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Finance
2
3
Health, safety, life and environment
2
2
Level of readiness sufficient readiness sufficient readiness sufficient readiness sufficient readiness sufficient readiness sufficient readiness sufficient readiness sufficient readiness sufficient readiness sufficient readiness sufficient readiness sufficient readiness sufficient readiness sufficient readiness sufficient readiness sufficient readiness / average readiness sufficient readiness
Table 3: Kinds of used methods for evaluating competences (Reháková, Jakábová, 2011) Answer Standardized structured interview Model situation Skills tests Various knowledge tests Standardized psycho-diagnostic tests Numerical ability tests Other methods (without specifying)
Men 22 % 7% 7% 7% 4% 0% 7%
Women 12 % 12 % 12 % 7% 0% 4% 0%
Only 6 % of women do not know why they do not utilise the methods of competences evaluation. Among the most often stated reasons why the competence development methods are not utilised, were (see Table 4): Table 4: Reason of not using methods for evaluating competences (Reháková, Jakábová, 2011) Answer Enterprise is too small for implementing the evaluation system Situation did not require the evaluation of competences
Men
Women
Economic problems Other priorities that hinder implementation of the evaluation system
18 % 18 % 12 % 11 %
0% 0% 0% 0%
No time for evaluation of competences
6%
6%
Only 14 % of men and 19 % of women were interested in development of their competences. Most frequently stated ways of developing the competences were by means of (see Table 5): Table 5: The way of developing the competences (Reháková, Jakábová, 2011) Answer No need to develop Model situation Education and dissemination Study and training Time and experience Developing a comprehensive project team Reduction in competence Financial motivation Cooperation Project practice
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Men 12 % 12 % 12 % 12 % 6% 6% 6% 6% 0% 0%
Women 6% 6% 0% 6% 0% 0% 0% 0% 6% 6%
Martina Jakábová et al. Answer More space in decision making
Men 0%
Women 6%
Forty-four percent of men and 19 % of women were not interested in further development of their competences. These respondents were fully satisfied with all the things as they were. As the main reason, they presented the lack of time (men 2 %, women 2 %) (Reháková, Jakábová, 2011).
5. Testing and evaluating of the hypotheses Data gained through the questionnaires were analysed and interpreted using the Pearson’s chisquare test of percentage formulation, graphic presentation (column charts) and table formulation with the help of on-line statistic package. The statistical significance of the results was evaluated at the alpha level (α) 0.05. It was the basic descriptive statistics. When using the Pearson’s chi-square test, the contingency table was used. Data from this table was filled in the on-line form and the resultant values were generated consequently. Pearson’s chi-square test verified whether the differences between the real and the expected multitudes are only accidental or they are too high to be considered accidental. It would mean they are statistically significant. The goal of the first hypothesis was to verify the assumption if there is a relation between the size of enterprises and the space for employees to develop their competences. Finally, the zero hypothesis was set up: H10: There is no relation between the size of enterprises and the space for employees to develop their competences. On the contrary to this statement, the alternative hypothesis was set up: H11: There is a relation between the size of enterprises and the space for employees to develop their competences. Value of the Pearson’s chi-square test at 12 degrees of latitude was 20.363 and reached signification (0.06052333) experienced value higher than alpha. It means that the result was statistically non-significant. Zero hypothesis was not dismissed and at the same time, the zero hypothesis was proved. There is no relation between the size of enterprises and the space for employees to develop their competences. The goal of the second hypothesis was to find out if there is a relationship between male and female in order to develop their skills. Statistical testing was carried out in the same way as during the statistical testing of the first hypothesis. The second zero hypothesis was set up: H20: There is no relationship between male and female in order to develop their skills. On the contrary to this statement, the alternative hypothesis was set up: H21: There is a relation between male and female in order to develop their skills. Value of the Pearson’s chi-square test at 2 degrees of latitude was 04.637 and reached signification (0.09842111) experienced value higher than alpha. It means that the result was statistically non-significant. In this case, the zero hypothesis was not dismissed and following the results, it was obvious that there is no relationship between male and female in order to develop their skills. The third zero hypothesis was set up: H30: There is no relation between the size of enterprises and use of methods for assessing competences. On the contrary to this statement, the alternative hypothesis was set up: H31: There is a relation between the size of enterprises and use of methods for assessing competences. Value of the Pearson’s chi-square test at 6 degrees of latitude was 10.914 and reached signification (0.09107101) experienced value higher than alpha. It means that the result was statistically insignificant. In this case, the zero hypothesis was not dismissed and following the results, it was obvious that there is no relation between the size of enterprises and use of methods for assessing competences.
6. In conclusion Success of the projects and so the enterprise is therefore dependent on the level of development and utilisation of competences of project managers and members of project teams. Manufacturing enterprises should be very particular about the development of competences; not only of the project managers, but also of the other employees working on the project (so called members of project teams) and it is necessary to develop the competences on their behalf. This paper presents the results of electronic research focused on investigation concerning the current conditions in project manager competence development in selected manufacturing enterprises in the Slovak Republic carried out throughout May 2011. Selective file was analysed according to the sex of the respondents – men and women, who worked on the similar position as project managers, it means on managerial positions in the field of project management in manufacturing enterprises. Research proved the differences in answers in connection with the competences from the field of project management and
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Martina Jakábová et al. those listed in the questionnaire. Selected selective sample answered the selected set of questions and by comparison of these answers, it is possible to assume general behaviour of individual respondents in the future. Research results show that mostly men worked in small enterprises and occupied positions like enterprise manager, production manager or IT manager. They understood “competence” as a set of activities, authority, and rightfulness to do something or complex ability and other assumptions (motivation) to deliver managerial performance. Men participated more in process management than in human management. Free hands and only little restrictions in work enabled them to develop sufficiently their competencies. However, they did not make use of it. As the main reason, they presented own busyness. Moreover, men were not interested in developing their competences. Most frequently used method to evaluate competences in enterprises was standardized structured depth interview. In the field of self-evaluation, men marked their readiness for utilising competences mostly with number 2, it means sufficient readiness. Without telling any reason, they were not interested in developing their competencies within project management. On the other hand, women occupied the positions like personal manager, or project manager. They were mostly employed in small enterprises. Similar to men, they understood the term “competence” as a set of activities, authority and rightfulness to do something or a set of skills, knowledge, abilities and behaviour necessary to successful practise of profession. Women participated more in overall organization of work than in process management and human management. At the same time, they were much more limited in work by rules and restrictions. Their busyness and own personality prevented them from developing their competences. It means that they rather followed the orders than to be initiative. Despite this fact, they would like to develop their competences further. Women employed the methods of competence evaluation much less in their work. If they finally did use some of them, these were mainly the standardized structured depth interviews (similarly as it was in men), skills tests and solving model situations. Women were much more self-critical in self-evaluation. They also often marked their readiness to use competences as sufficient, but more frequently than in men marks 3 and 5 appeared here; it means weak and insufficient readiness. Following the aforementioned research results, it is possible to say that there is a necessity to deal with the problem of project management competencies, both from the view of the enterprise and respondents themselves. This problem is presently still not elaborated in further details.
Acknowledgements The paper is a part of submitted VEGA project No. 1/0787/12 „The identification of sustainable performance key parameters in industrial enterprises within multicultural environment“.
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