Effect of competence on organisational citizenship behaviour

The impact on organisational effectiveness

1. Effect of competence on Organizational citizenship behavior and performance management: The impact on organizational effectiveness Presented To: Sir Qasim Zahoor Sb Pressented By: Fareed Ud Din Usman Nosher Rai Adeel Mummar Farooq

2. Abstract: This study explores the effect of competence on organizational citizenship behavior (OCB) and performance management as well as its impact on organizational effectiveness in Office of the Provincial Inspectorate South Sulawesi. The sample used in number as many as 96 Employees. Hypothesis testing is done using the Structural Equation Modeling with WarphPLS Ver. 5.0 as research equipment. The results of the study provide evidence that competence significantly effect on OCB and performance management. Competence, OCB and performance management significantly effect on Structural Equation Modeling . OCB employee shown proven can act as a mediator in analyzing the effect of competence on organizational effectiveness. Performance management is not able to act as a mediator in explaining the effect of competence on organizational effectiveness.

3. Introduction: Based on the information provided in the abstract, we can infer the research objectives (RO), research questions (RQs), and the novelty of the study as follows: Research Questions (RQs): What is the impact of competence on organizational citizenship behavior (OCB)? How does competence influence performance management? What is the combined effect of competence, OCB, and performance management on Structural Equation Modeling (organizational effectiveness)? Does organizational citizenship behavior (OCB) mediate the relationship between competence and organizational effectiveness? Can performance management act as a mediator in explaining the effect of competence on organizational effectiveness? Research Objectives (RO): To examine the effect of competence on organizational citizenship behavior (OCB). To investigate the impact of competence on performance management. To assess the influence of competence, OCB, and performance management on Structural Equation Modeling (representing organizational effectiveness). To explore the mediating role of OCB in the relationship between competence and organizational effectiveness. To examine whether performance management acts as a mediator in explaining the effect of competence on organizational effectiveness.

4. Novelty of the Study: The novelty of this study lies in its exploration of the relationship between competence, organizational citizenship behavior (OCB), performance management, and organizational effectiveness specifically within the context of the Office of the Provincial Inspectorate South Sulawesi. The use of Structural Equation Modeling with WarphPLS Ver. 5.0 for hypothesis testing adds a methodological dimension to the study. The finding that OCB acts as a mediator in the relationship between competence and organizational effectiveness suggests a nuanced understanding of the mechanisms through which competence influences organizational outcomes. The observation that performance management is not able to act as a mediator in explaining the effect of competence on organizational effectiveness is an intriguing result that contributes to the understanding of these organizational dynamics.

5. Competence: (IV) Competence is introduced as the ability to execute tasks based on skills and knowledge. Wibowo (2009) defines it as the capability to perform a job satisfactorily, transfer skills to new situations, and enhance agreed-upon benefits. Dimensions of Competence: Spencer and Spencer (1993) identify six clusters of competence: Achievement and action: Emphasizes orientation toward achievement, attention to order, quality, accuracy, initiative, and information search. Helping human service: Focuses on understanding interpersonal relationships and customer service. Impact and influence: Encompasses the ability to have an impact, build relationships, and maintain organizational vigilance. Managerial: Involves the development of others, directing, firmness, power-based positioning, teamwork, cooperation, and team leadership. Cognitive: Encompasses analytical thinking, conceptual thinking, and technical expertise. Personal effectiveness: Includes self-control, confidence, flexibility, and commitment to the organization. Empirical Evidence on Competence: Munro and Andrews (1994) suggest that competence serves as an enabler for organizations to build a competitive advantage by directing human resources toward enhancing the capabilities of the workforce. Apriani (2011) supports this perspective, providing empirical evidence that competence significantly affects organizational effectiveness.

6. Methodology: The study involved 96 employees from the Office of the Provincial Inspectorate South Sulawesi. Structural Equation Modeling (SEM) with WarpPLS Ver. 5.0 research equipment. was used for hypothesis testing. Hyphothesis : H 1 Competence significant effect on OCB H 2 Competence significant effect on performance management H 3 Competence significantly effect on organizational effectiveness

7. Organizational Citizenship Behaviour : (DV) OCB is introduced as behavior that changes the atmosphere in a formal organization to be more relaxed and cooperative (Smith, 1983). It is characterized as discretionary behavior not directly recognized by the formal reward system, fostering a more effective organizational function (Organ, 1990). Dimensions of OCB: Organ's (1988) initial five dimensions of OCB are outlined: Altruism, Conscientiousness, Sportsmanship, Courtesy, and Civic Virtue. Two additional dimensions were later added by Organ (1990): Peacekeeping and Cheerleading. Empirical Evidence on OCB: Evidence suggests that individuals displaying OCB exhibit better performance and receive higher performance evaluations from organizations (Podsakoff et al ., 1997). OCB is associated with altruistic behavior, which enhances group cohesion and effectiveness (George and Bettenhausen , 1990). High OCB in a group is linked to increased quantity of results, although the relationship with work quality is less clear (Podsakoff et al., 1997). OCB has a positive impact on individual and group performance, subsequently influencing organizational effectiveness (Bolon, 1997; Pattanaik and Biswas, 2005; Hofstede, 2011; MacKenzie et al., 1993).

8. Methodology: The study involved 96 employees from the Office of the Provincial Inspectorate South Sulawesi. Structural Equation Modeling (SEM) with WarpPLS Ver. 5.0 research equipment. was used for hypothesis testing. Hyphothesis : OCB significantly effect on organizational effectiveness

9. Performance Management: (DV) Performance management is described as a continuous communication process conducted in partnership between employees and their immediate supervisors. It involves establishing clear expectations and understanding the work performed ( Bacal , 2001). The evaluation or assessment of performance is identified as a crucial part of the performance management system ( Bacal , 2001). Perspectives on Performance Management: Baird (1986) views performance management as a process involving people working toward achieving set goals in a sustainable and continuous manner. Udekusuma (2007) defines performance management as a process designed to link organizational goals to individual goals, emphasizing that employees contribute to both individual and organizational objectives. Wibowo (2007) describes performance management as a management process focusing on creating relationships, ensuring effective communication, and managing performance to achieve success. Strategic Approach to Performance Management: Armstrong and Baron (1998) characterize performance management as a strategic and integrated approach to delivering sustained success to organizations. It aims to improve the performance of employees and develop the capabilities of teams and individuals. The approach involves creating a common vision of organizational goals, helping employees understand their contributions, and managing and improving individual and organizational performance (Armstrong and Baron, 1998).

10. Performance Assessment and Empirical Evidence: Performance is defined as the result of one's work, representing the quality and quantity of work accomplished in accordance with responsibilities ( Mangkunagara , 2005). Empirical evidence is cited, suggesting that Organizational Citizenship Behavior (OCB) may not be significantly correlated with individual performance ( Buentello et al., 2008). However, OCB is reported to have a positive influence on the performance of administrative personnel ( Sudarma , 2012). Methodology: The study involved 96 employees from the Office of the Provincial Inspectorate South Sulawesi. Structural Equation Modeling (SEM) with WarpPLS Ver. 5.0 research equipment. was used for hypothesis testing.

11. Hyphothesis : Performance management significantly effect on organizational effectiveness

12. Organizational Effectiveness: (DV) Organizational effectiveness is defined as the level of success in achieving goals or objectives ( Emitai Etzioni, 1982). Effectiveness is characterized by its emphasis on results and achievements rather than the sacrifices required ( Syamsi , 1988). Distinction Between Effectiveness and Efficiency: The distinction between effectiveness and efficiency is highlighted. Effectiveness is about results and achievements, while efficiency considers both results and the sacrifices needed to achieve them ( Syamsi , 1988). Measurement of Effectiveness: Sudarwan (2004) suggests various ways to measure effectiveness: (a) Number of results issued: Measuring results in terms of quantity or physical form. (b) Level of satisfaction: Quantitative and qualitative measures of satisfaction. (c) Creative product: Creating conditions conducive to fostering creativity and ability. (d) Intensity to be achieved: High adherence to an intense level of commitment.

13. Past Research on Subordinate Competencies and Organizational Effectiveness: Johny (2010) contributes to the literature by providing evidence that subordinate competencies have a significant effect on organizational effectiveness. Methodology: The study involved 96 employees from the Office of the Provincial Inspectorate South Sulawesi. Structural Equation Modeling (SEM) with WarpPLS Ver. 5.0 research equipment. was used for hypothesis testing.

14. Hyphothesis : Competence significant effect on organizational effectiveness as a mediated OCB Competence significantly effect on organizational effectiveness as a mediated performance management

15. Implications: Enhancing Competence for Improved Organizational Citizenship Behavior (OCB): The findings suggest that investing in the competence of employees within the Office of the Provincial Inspectorate South Sulawesi can positively influence their OCB. Organizations can focus on training and development programs to enhance the skills and knowledge of their workforce, thereby promoting positive citizenship behaviors. Improving Performance Management for Organizational Effectiveness: The study indicates that competence has a significant impact on performance management. Organizations should consider aligning their performance management systems with employee competence levels to ensure that performance is effectively monitored, evaluated, and enhanced. This alignment can contribute to overall organizational effectiveness. Recognizing the Mediating Role of OCB: The research highlights that OCB plays a mediating role in the relationship between competence and organizational effectiveness. Organizations should recognize the importance of fostering a positive work culture and encouraging employees to engage in extra-role behaviors. Recognizing and rewarding OCB can contribute to the overall effectiveness of the organization.

16. Limitations: Sample Size and Generalizability: The study used a sample of 96 employees from the Office of the Provincial Inspectorate South Sulawesi. The limited sample size may affect the generalizability of the findings to a broader population. Future research could benefit from larger and more diverse samples to enhance the external validity of the results. Methodological Considerations: The use of Structural Equation Modeling (SEM) with WarphPLS Ver. 5.0 as the research tool may have certain methodological implications. Researchers should be cautious about the assumptions and limitations associated with the chosen statistical method. Context-Specific Findings: The study focused on a specific organizational context (Office of the Provincial Inspectorate South Sulawesi), and the findings may be context-specific. Researchers and practitioners should consider the uniqueness of the context when applying or generalizing the results to different organizational settings.

17. Conclusions: Competence as a Key Driver: The study concludes that competence is a significant driver of both OCB and performance management. Organizations should prioritize strategies for enhancing employee competence to foster positive workplace behaviors and effective performance management. Mediating Role of OCB: The mediating role of OCB in the relationship between competence and organizational effectiveness emphasizes the importance of a positive organizational culture. Organizations should encourage and recognize employees who go beyond their formal roles, as this can contribute to overall organizational success. Caution in Performance Management Implementation: While competence significantly influences performance management, it may not directly contribute to organizational effectiveness. Organizations should approach performance management with a comprehensive understanding of other factors that may impact overall effectiveness.