The Ghanaian banking sector has recently faced challenges including license suspensions and fraud cases, raising concerns about managerial competence. This study investigates the relationship between managerial competence and performance, focusing on five key competencies derived from Assumeng's (2014) holistic-domain model: technical/business competence, intrapersonal competence, interpersonal competence, leadership competence, and customer value management competence. Effective management is crucial for organizational success, and understanding the link between competence and performance is vital for improving the sector's stability and growth, particularly in a developing economy like Ghana. The study aims to address the limited research on this specific relationship within the Ghanaian context and utilize advanced PLS-SEM analysis to provide a more robust understanding than previous studies.

Existing literature highlights the importance of managerial competence for organizational success and employee performance. Studies have identified various key competencies such as communication, planning, teamwork, and customer focus. However, there's a gap in research specifically focusing on the Ghanaian banking sector and the application of the holistic-domain model, which integrates behavioral, functional, and job competency perspectives. Previous studies have often lacked the sophisticated analytical methods such as PLS-SEM used in this research, limiting the depth of their findings. This study bridges these gaps by focusing on the Ghanaian banking sector and employing PLS-SEM to analyze the relationship between specific managerial competencies and managerial performance.

This study employed a quantitative, cross-sectional survey design. A purposive sample of 127 branch and operational managers from all sixteen administrative regions of Ghana was selected. Data were collected using a questionnaire adapted from Apreku-Djan et al. (2022), measuring managerial performance across four dimensions (task performance, contextual performance, adaptive performance, and counterproductive work behavior) and five managerial competencies (technical, intrapersonal, interpersonal, leadership, and customer value management). A four-point Likert scale was used. PLS-SEM was used for data analysis. Prior to analysis, the validity and reliability of the instrument were assessed using Cronbach's alpha (all values above 0.70), rho_A, composite reliability, and average variance extracted (AVE; all values above 0.50). Construct validity was assessed using the Fornell-Larcker criterion and Heterotrait-Monotrait Ratio (HTMT), ensuring discriminant validity. Multicollinearity was checked using Variance Inflation Factors (VIF).

The demographic analysis revealed that the majority of respondents were 36 years or older, male, married, and had more than five years of managerial experience. PLS-SEM analysis showed that all five hypothesized relationships between managerial competencies and managerial performance were significant. Customer value management competence was the strongest predictor of managerial performance (β = 0.520, t = 10.639, p < 0.000), followed by interpersonal competence (β = 0.222, t = 4.674, p < 0.000), intrapersonal competence (β = 0.196, t = 3.371, p = 0.001), leadership competence (β = 0.172, t = 3.518, p < 0.000), and technical competence (β = 0.078, t = 2.200, p = 0.028). The R-squared value of 0.532 indicated that the five competencies explained approximately 53% of the variance in managerial performance.

The findings highlight the critical role of managerial competence, particularly customer value management, in driving managerial performance within the Ghanaian banking sector. The strong positive relationship between customer focus and performance underscores the importance of customer-centric strategies in a competitive banking environment. The significance of interpersonal and leadership competencies emphasizes the importance of effective communication, team building, and motivation. The results support the holistic-domain model by demonstrating the contribution of both technical and non-technical competencies to overall performance. These findings have important implications for human resource management practices within the sector.

This study concludes that managerial competence significantly influences managerial performance in the Ghanaian banking sector. Customer value management, interpersonal, leadership, intrapersonal, and technical competencies are all important, with customer value management being the most significant. These findings highlight the need for targeted recruitment, training, and development initiatives focusing on these key competencies to enhance managerial performance and the overall stability of the sector. Further research could explore the impact of specific leadership styles, organizational culture, and external factors on the relationship between competence and performance.

This study's limitations include the cross-sectional design, which limits causal inferences. The sample, while representative across regions, may not fully capture the diversity within the Ghanaian banking sector. The reliance on self-reported data could introduce potential biases. Future studies could address these limitations by employing longitudinal designs, larger and more diverse samples, and incorporating multiple data sources.