4/28/2019 Management Skills - Types and Examples of Management Skills

What are Management Skills?

Management skills can be de ned as certain attributes or abilities that
an executive should possess in order to ful ll speci c tasks in an
organization. They include the capacity to perform executive duties in an
organization while avoiding crisis situations and promptly solving
problems when they occur. Management skills can be developed
through learning and practical experience as a manager. The skills help
the manager to relate with their fellow co-workers and know how to deal
well with their subordinates, which allows for the easy ow of activities in
the organization.

Good management skills are vital for any organization to succeed and
achieve its goals and objectives. A manager who fosters good
management skills is able to propel the company’s mission and vision or
business goals forward with fewer hurdles and objections from internal
and external sources.

Management and leadership skills are often used interchangeably as

they both involve planning, decision-making, problem-solving,
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communication, delegation, and time management. Good managers are

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almost always good leaders as well. In addition to leading, a critical role

of a manager is to also ensure that all parts of the organization are
functioning cohesively. Without such integration, several issues can arise
and failure is bound to happen. Management skills are crucial for various
positions and at di erent levels of a company, from top leadership to
intermediate supervisors to rst level managers.

Types of Management Skills

According to American social and organizational psychologist Robert
Katz, the three basic types of management skills include:

1. Technical Skills
Technical skills involve skills that give the managers the ability and the
knowledge to use a variety of techniques to achieve their objectives.
These skills not only involve operating machines and software,
production tools, and pieces of equipment but also the skills needed to
boost sales, design di erent types of products and services, and market
the services and the products.

2. Conceptual Skills
These involve the skills managers present in terms of the knowledge and
ability for abstract thinking and formulating ideas. The manager is able
to see an entire concept, analyze and diagnose a problem, and nd
creative solutions. This helps the manager to e ectively predict hurdles
their department or the business as a whole may face.

3. Human or Interpersonal Skills

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The human or the interpersonal skills are the skills that present the
managers’ ability to interact, work or relate e ectively with people. These
skills enable the managers to make use of human potential in the
company and motivate the employees for better results.

Examples of Management Skills

There is a wide range of skills that management should possess to run
an organization e ectively and e ciently. The following are six essential
management skills that any manager ought to possess for them to
perform their duties:

1. Planning
Planning is a vital aspect within an organization. Planning is one’s ability
to organize activities in line with set guidelines while still remaining
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within the limits of the available resources such as time, money, and

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labor. It is also the process of formulating a set of actions or one or more

strategies to pursue to achieve certain goals or objectives with the
available resources. The planning process includes identifying and
setting achievable goals, developing necessary strategies, and outlining
the tasks and schedules on how to achieve the set goals. Without a good
plan, little can be achieved.

2. Communication
Possessing great communication skills is crucial for a manager. It can
determine how well information is shared throughout a team, ensuring
that the group acts as a uni ed workforce. How well a manager
communicates with the rest of his team also determines how well
outlined procedures can be followed, how well the tasks and activities
can be completed, and thus, how successful an organization will be.

Communication involves the ow of information within the organization,

whether formal or informal, verbal or written, vertical or horizontal, and
it facilitates smooth functioning of the organization. Clearly established
communication channels in an organization allow the manager to
collaborate with the team, prevent con icts, and resolve issues as they
arise. A manager with good communication skills can relate well with the
employees and thus, able to achieve the company’s set goals and
objectives easily.

3. Decision-making
Another vital management skill is decision-making. Managers make
numerous decisions, whether knowingly or not, and making decisions is
a key component in a manager’s success. Making proper and right
decisions results in the success of the organization, while poor or bad
decisions may lead to failure or poor performance. For the organization
to run e ectively and smoothly, clear and right decisions should be
made. A manager must be accountable for every decision that they make
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and also be willing to take responsibility for the results of their decisions.
A good manager needs to possess great decision-making skills, as it
often dictates his/her success in achieving organizational objectives.

4. Delegation
Delegation is another key management skill. Delegation is the act of
passing on work-related tasks and/or authorities to other employees or
subordinates. It involves the process of allowing your tasks or those of
your employees to be re-assigned or re-allocated to other employees
depending on current workloads. A manager with good delegation skills
is able to e ectively and e ciently re-assign tasks and give authority to
the right employees. When delegation is carried out e ectively, it helps
facilitate quick and easy results.

Delegation helps the manager to avoid wastage of time, optimizes

productivity, and ensures responsibility and accountability on the part of
employees. Every manager must have good delegation abilities to
achieve optimal results and accomplish the required productivity results.

5. Problem-solving
Problem-solving is another essential skill. A good manager must have the
ability to tackle and solve the frequent problems that can arise in a
typical workday. Problem-solving in management involves identifying a
certain problem or situation and then nding the best way to handle the
problem and get the best solution. It is the ability to sort things out even
when the prevailing conditions are not right.  When it is clear that a
manager has great problem-solving skills, it di erentiates him/her from
the rest of the team and gives subordinates con dence in his/her
managerial skills.

6. Motivating 

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The ability to motivate is another important skill in an organization.

Motivation helps bring forth a desired behavior or response from the
employees or certain stakeholders. There are numerous motivation
tactics that managers can use, and choosing the right ones can depend
on characteristics such as company and team culture, team
personalities, and more. There are two primary types of motivation that
a manager can use, which includes intrinsic and extrinsic motivation.

Bottom Line
Management skills are a collection of abilities that include things such as
business planning, decision-making, problem-solving, communication,
delegation, and time management. While di erent roles and
organizations require the use of various skillsets, management skills help
a professional stand out and excel no matter what their level. In top
management, these skills are essential to run an organization well and
achieve desired business objectives.

Additional Resources
Thank you for reading CFI’s guide to management skills. CFI is a leading
provider of career resources for nance professionals. To continue
learning and advancing your career, the additional resources below will
be helpful:

Adaptive Leadership
Crisis Management
Interpersonal Skills
Leadership Traits

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Become a certi ed Financial Modeling and Valuation Analyst (FMVA)® by

completing CFI’s online nancial modeling classes and training program!

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