Managerial competence and profitability of manufacturing companies in Uganda, a case of Simba Cement Ltd, Tororo

Abstract

This study examined the effect of managerial competence on the profitability of manufacturing companies. The study was guided by the following objectives notably; to examine the impact of planning competence on profitability of manufacturing industries, to establish the effect of leadership competence on profitability of manufacturing industries and to establish the effect of team work competence on profitability of manufacturing industries. The study used a cross sectional research design, and a quantitative approach. Data was collected from a target population of 45 of employees with accessible unit of 40 employees of Simba cement, using simple random and purposive sampling techniques. Data were collected with the aid of closed ended questionnaire and Statistical Packages for Social Sciences was employed for analyzing data from which frequency tables, descriptive statistics (mean and standard deviation), reliability, validity, correlation, and regression results were obtained. The study findings revealed that there is a positive and a significant effect of planning competence on profitability; leadership competence on profitability; and team work competence on profitability of manufacturing industries. The study, recommends that efforts to improve profitability of manufacturing industries depend on managerial competence (planning competence, leadership competence, and team work competence). Finally, the study concludes that there is a strong predictive power that the dimensions of managerial competence contribute towards enhancing profitability of manufacturing companies in Simba cement Ltd Tororo district.