EIJMRMS ISSN: 2750-8587
VOLUME04 ISSUE12
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THE EFFECT OF SUPERVISOR COMPETENCIES ON WORKFORCE PRODUCTIVITY IN
PENANG MANUFACTURING COMPANIES
Skandar Musa
University Sultan Azlan Shah Faculty of Management and Information Technology, Malaysia
AB O U T ART I CL E
Key words:
Supervisor competencies, Workforce
productivity,
Employee
performance,
Manufacturing industry, Penang, Leadership
skills, Communication skills.
Received:
21.11.2024
Accepted
: 26.11.2024
Published
: 01.12.2024
Abstract:
This study investigates the effect of
supervisor
competencies
on
workforce
productivity in manufacturing companies located
in Penang, Malaysia. The research aims to examine
how the knowledge, skills, and behaviors of
supervisors influence the performance and
efficiency of employees in the manufacturing
sector. Utilizing a quantitative approach, data was
collected through surveys administered to
employees working in various manufacturing
firms across Penang. The findings indicate that
supervisor competencies
—
specifically in areas
such as leadership, communication, decision-
making, and problem-solving
—
have a significant
positive impact on employee performance and
productivity. Effective supervisors are shown to
foster a more motivated, efficient, and committed
workforce,
contributing
to
the
overall
productivity of the organization. The study
highlights the importance of supervisor training
and development in enhancing employee
performance, with implications for human
resource management and organizational
development in the Malaysian manufacturing
context.
INTRODUCTION
In today’s competitive global economy, manufacturing firms face increasing pressure
to enhance productivity and improve operational efficiency. One of the critical factors contributing to
workforce productivity is the role of supervisors, who serve as intermediaries between upper
management and frontline employees. Supervisors' competencies
—
comprising skills, knowledge, and
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EUROPEAN INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY RESEARCH
AND MANAGEMENT STUDIES
ISSN: 2750-8587
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behaviors
—
have been identified as significant determinants of employee performance, motivation, and
job satisfaction. Effective supervision is essential for creating an environment that fosters engagement,
enhances work quality, and drives organizational success. In the manufacturing sector, where the pace
of production and adherence to quality standards are paramount, the influence of supervisors on
workforce productivity cannot be overstated.
In Penang, Malaysia, a key hub for manufacturing in Southeast Asia, the manufacturing sector is integral
to the economic growth and development of the region. The ability of firms in Penang to compete in
global markets depends, in part, on the productivity of their workforce. However, there is limited
research that specifically addresses the impact of supervisor competencies on employee performance
within this context. Given the rapid development of the manufacturing industry in Penang and the
increasing demand for skilled labor, understanding how supervisory skills influence productivity is
crucial for enhancing workforce efficiency and achieving business objectives.
This study aims to explore the relationship between supervisor competencies and workforce
productivity in Penang manufacturing companies. By examining various dimensions of supervisor
competencies, including leadership, communication, problem-solving, and decision-making, the
research seeks to determine how these factors affect employees’ performance and overall
organizational output. The findings of this study are expected to offer valuable insights for
manufacturing firms in Penang, enabling them to design effective training and development programs
that enhance supervisor capabilities and, by extension, improve workforce productivity.
The structure of the paper is as follows: the next section reviews the literature on supervisor
competencies and their impact on employee performance, followed by the methodology used in this
study. Results and discussion of the findings are presented, leading to conclusions and practical
recommendations for organizations seeking to optimize their supervisory practices for enhanced
workforce productivity.
METHOD
This study employs a quantitative research design to investigate the effect of supervisor competencies
on workforce productivity in manufacturing companies in Penang, Malaysia. The research uses a
survey-based approach to collect primary data from employees working in various manufacturing firms
across Penang. The method was designed to ensure that the collected data is both reliable and valid,
enabling a comprehensive analysis of the relationship between supervisor competencies and workforce
productivity.
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ISSN: 2750-8587
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The target population for this study consists of employees working in manufacturing companies based
in Penang. A stratified random sampling technique was employed to ensure the representation of
employees from different manufacturing sectors, such as electronics, automotive, and food processing.
The sample size was determined using a confidence level of 95% and a margin of error of 5%.
Approximately 300 employees were selected to participate in the study. This sample size is sufficient
to draw meaningful conclusions about the effect of supervisor competencies on workforce productivity
while accounting for variability within the manufacturing sector.
Data was collected using a structured questionnaire developed specifically for this study. The
questionnaire was divided into two main sections: the first section measured supervisor competencies,
and the second section assessed employee productivity.
Supervisor Competencies: Supervisor competencies were measured based on four key dimensions:
leadership skills, communication skills, decision-making abilities, and problem-solving abilities. These
competencies were adapted from established frameworks in leadership and management literature,
such as those proposed by Bass and Avolio (1994) and Yukl (2010). The items were rated on a Likert
scale ranging from 1 (strongly disagree) to 5 (strongly agree), allowing respondents to evaluate the
effectiveness of their supervisors in each competency area.
Workforce Productivity: Employee productivity was measured using a combination of self-reported
performance metrics and objective indicators. The self-reported metrics included items related to work
efficiency, quality of output, and task completion rate. Additionally, objective measures, such as
production targets and output data, were obtained through collaboration with participating companies,
ensuring that the data reflects actual productivity levels within each firm. These variables were also
measured on a Likert scale to capture respondents' perceptions of their own performance relative to
organizational expectations.
The survey was distributed to employees via both online and paper-based formats, depending on the
accessibility and preference of the participants. Prior to distribution, the questionnaire was piloted with
a small group of employees to test its clarity and reliability. Feedback from the pilot study was used to
refine the survey instrument. Once the survey was finalized, it was distributed to employees during
work hours, with a two-week response window. Anonymity and confidentiality of responses were
emphasized to encourage honest participation. A total of 280 completed surveys were returned,
resulting in a response rate of 93%.
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The data collected from the survey was analyzed using statistical methods to test the hypothesized
relationships between supervisor competencies and workforce productivity. Descriptive statistics were
used to summarize the demographic information of the respondents and provide an overview of the
supervisor competencies and productivity levels across the sample.
To examine the effect of supervisor competencies on workforce productivity, inferential statistical
methods were applied, including correlation analysis and multiple regression analysis. The correlation
analysis was used to explore the strength and direction of the relationship between the supervisor
competencies (independent variables) and workforce productivity (dependent variable). Multiple
regression analysis was employed to assess the extent to which supervisor competencies predict
workforce productivity, controlling for potential confounding variables such as employee
demographics, job tenure, and company size.
Additionally, to ensure the reliability and validity of the scales used in the questionnaire, Cronbach's
alpha was calculated for each competency and productivity scale. A value above 0.7 indicated
acceptable internal consistency for the constructs.
This study adhered to ethical standards throughout the research process. Informed consent was
obtained from all participants, and they were assured that participation was voluntary and that they
could withdraw from the study at any time without consequence. The study maintained strict
confidentiality, with all data being anonymized to protect the identity of the participants. Furthermore,
no personal information was collected without explicit consent, and all results were reported in
aggregate form to preserve anonymity.
While the study provides valuable insights into the relationship between supervisor competencies and
workforce productivity, several limitations must be acknowledged. First, the reliance on self-reported
data may introduce bias, as employees might provide socially desirable answers regarding their
supervisor’s effectiveness. Second, the cross
-sectional nature of the survey limits the ability to draw
conclusions about causality. Future research could use longitudinal designs or experimental methods
to further explore the causal relationships between supervisor competencies and employee
performance. Finally, the sample is limited to manufacturing firms in Penang, which may limit the
generalizability of the findings to other regions or sectors.
RESULTS
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The results of this study indicate a significant relationship between supervisor competencies and
workforce productivity in manufacturing companies in Penang. The data analysis, including descriptive
statistics, correlation analysis, and multiple regression, revealed the following key findings:
Supervisor Competencies and Workforce Productivity: A strong positive correlation was found
between supervisor competencies and workforce productivity (r = 0.68, p < 0.01). This suggests that as
supervisor competencies increase, employee productivity also tends to improve. Among the four
dimensions of supervisor competencies
—
leadership, communication, decision-making, and problem-
solving
—leadership skills (β = 0.35) were found to have the strongest impact on em
ployee productivity,
followed by communication skills (β = 0.29). Problem
-solving and decision-making abilities also
showed a significant positive influence, but to a lesser extent.
Leadership Competencies: Employees working under supervisors with strong leadership skills
reported higher levels of motivation, task efficiency, and overall productivity. The results indicated that
employees are more likely to be productive when supervisors demonstrate transformational leadership
qualities, such as inspiring and motivating teams, fostering a positive work environment, and providing
clear direction.
Communication Skills: Communication skills were also found to be a critical factor influencing
productivity. Supervisors who effectively communicated expectations, provided feedback, and
maintained open channels for employee concerns were associated with higher employee performance.
Effective communication was shown to enhance clarity in task assignments, reduce misunderstandings,
and increase employee engagement.
Problem-solving and Decision-making Competencies: Both problem-solving and decision-making
competencies were positively correlated with workforce productivity. Supervisors who could
effectively address challenges and make informed decisions, especially in high-pressure situations,
contributed to higher productivity levels. Employees were more likely to be productive when they felt
confident in their supervisor’s ability to navigate difficult situations and make timely, effective
decisions.
Demographic Variables: Analysis of demographic factors (e.g., age, job tenure, education) indicated that
these had a minimal impact on the relationship between supervisor competencies and productivity. The
most notable finding was that employees with longer job tenure reported a stronger perception of
supervisor competencies, indicating that experience may influence the effectiveness of supervisors in
managing teams.
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DISCUSSION
The findings of this study underscore the critical role that supervisor competencies play in enhancing
workforce productivity, particularly in the manufacturing sector. Supervisors in Penang’s
manufacturing companies who possess strong leadership, communication, problem-solving, and
decision-making skills tend to create work environments that promote higher levels of employee
engagement, motivation, and performance. This aligns with existing literature that suggests that
supervisory competence is essential for fostering employee productivity (Bass & Avolio, 1994; Yukl,
2010).
The significant impact of leadership competencies on productivity highlights the importance of
leadership styles that inspire and motivate employees. Transformational leadership, characterized by
a focus on vision, inspiration, and individualized consideration, emerged as particularly influential.
Supervisors who empower their employees and encourage autonomy tend to see higher levels of
motivation and performance from their teams. This finding supports previous research by Bass (1990),
which found that transformational leadership positively affects employee outcomes such as job
satisfaction and productivity.
Communication skills emerged as a crucial competency in this study. Supervisors who can communicate
effectively with their teams contribute to clearer understanding of expectations, less ambiguity in task
completion, and increased organizational transparency. Effective communication not only improves
task execution but also strengthens the supervisor-employee relationship, fostering an environment of
trust and respect. This finding corroborates earlier studies by Hackman and Johnson (2009), which
emphasize the importance of communication in leadership effectiveness.
The relationship between problem-solving and decision-making competencies and productivity also
highlights their importance in dynamic work environments like manufacturing. Supervisors who can
address operational challenges and make quick, informed decisions are more likely to enhance the
overall productivity of their teams. Employees value supervisors who can lead them through difficulties
and help them overcome obstacles to achieve organizational goals. These findings align with research
by Yukl (2010), which argues that decision-making abilities directly influence team performance,
particularly in fast-paced industries.
Additionally, the minimal influence of demographic factors, such as age and job tenure, on the
supervisor-productivity relationship suggests that supervisor competencies are universally applicable
across various employee groups. However, the slightly stronger perception of supervisor competencies
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among more experienced employees may reflect a deeper understanding of leadership dynamics over
time.
CONCLUSION
This study confirms that supervisor competencies are a key determinant of workforce productivity in
manufacturing companies in Penang, Malaysia. Supervisors who demonstrate strong leadership,
communication, problem-solving, and decision-making skills significantly influence employee
performance and the overall productivity of the organization. The findings suggest that manufacturing
companies in Penang, and by extension, other similar contexts, can improve workforce productivity by
investing in supervisor training and development programs that focus on these core competencies.
For companies seeking to enhance their productivity, it is essential to prioritize the recruitment and
development of supervisors with high competency in these areas. Moreover, fostering a culture of
leadership and continuous learning within the organization can empower supervisors to improve their
effectiveness, thus driving overall organizational performance. Future research could explore the long-
term effects of supervisor training programs on workforce productivity and the potential mediating
factors that influence the supervisor-employee relationship.
Ultimately, the results of this study contribute to the growing div of knowledge on leadership and
organizational effectiveness, offering practical insights for managers and human resource professionals
in the manufacturing sector. Investing in supervisor development is not just an operational need, but a
strategic approach to ensuring sustainable productivity and competitiveness in an increasingly
globalized market.
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