Abstract: This paper explores competencies that managers of
small firms in Ghana use to enhance operational flexibility towards
the attainment of higher productivity. This is because the requisite
competence required of such managers to be effective performers
continues to be a challenge. Data was collected from managers of
three hundred small firms using a standardized self-completion
questionnaire and analyzed using the Amos-based structural equation
model approach. Findings from factor and confirmatory factor
analyses showed that the only competence exhibited by managers
toward effective performance is realistic practices evident at the
workplace. It is concluded that a manager’s self-confidence and
involvement in areas that he/she is good at, and his/her possession of
skills that enables performance at high capacity are indications of the
manger’s effectiveness. The study outcome provides a knowledge
base helpful to policy-makers, especially in Ghana, in determining
the requisite managerial competences required by small firm
managers for effective performance.