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Managerial Skills and the Organizational Hierarchy

Types of Managerial Skills

Robert L. Katz, a teacher and business executive, has popularized a concept developed early in this century by Henri Fayol, a famous management theorist and father of modern management. Fayol identified three basic skills - technical skills, human skills, and conceptual skills. Diagnostic skills and analytical skills are prerequisites to managerial success.
 
Technical skill: Technical skill is the ability to use the specialized knowledge, procedures, and techniques of a field of activities. Accountants, engineers, and surgeons all have the technical skills necessary for their respective professions. Most managers, especially at the lower and middle levels, need technical skills for effective task performance.
 
Technical skill is required to perform a particular job in prescribed ways.
 
Technical skill enables a person to accomplish the mechanics of performing a particular job. This may be knowing how to maintain accounts, how to conduct a financial audit, how to construct a building, or how to perform in the operation theatre.
 
Technical skills are important, especially for first-line managers, who spend much of their time training subordinates and supervising their work-related problems. To be effective as managers and also to command the respect of their subordinates, they must first know how to perform tasks assigned to their subordinates.
 
Human skill: Human skill is the ability to work with, understand, and motivate other people as individuals or in groups. Managers spend much of their time interacting with people both inside and outside their organizations. We may recall here Mintzberg's explanation of how top (and middle) managers spend their time: 59 percent in meetings, 6 percent on the phone, and 3 percent on tours. All of these managerial activities involve other people. Human skill includes the ability to work with others and get cooperation from people in the workgroup. This means, for example, knowing what to do being able to communicate ideas and beliefs to others, and understanding what thoughts others are trying to convey to the manager. Moreover, the manager with human knowledge and skill understands and recognizes what views are brought to situations and in turn what adjustments in these views might be made as a result of working with associates.
 
Human skills are chiefly necessary for coordinating and maintaining relationships with people inside and outside the organization for taking care of the human factors that exist in the organizational structure.
 
The ability to understand others and communicate with people both inside and outside the organization is of special significance to one who is called on to handle disturbances, allocate resources, and negotiate. The roles of leader, disseminator, negotiator, and resource allocator require skill in motivating. This skill, for example, will help a manager persuade a sales force to accept a raised sales presentation or win the cooperation of a group of angry subordinates.
 
It is, however, interesting to note that not all managers exhibit good human (interpersonal) skills. Managers, who are harsh with their subordinates, would simply tend to increase personal turnover; moreover, it becomes increasingly difficult to replace those who leave. The other things being equal, the manager who has good human skills is likely to be more successful than the one with poor human skills.
 
Conceptual skill: Conceptual skill is the ability to coordinate and integrate all of an organization’s interests and activities. It requires having the ability to visualize the enterprise as a whole, envision all the functions involved in a given situation or circumstance, understand how its parts depend on one another, and anticipate how a change in any of its parts will affect the whole. Conceptual skills depend on the manager’s ability to think in the abstract and to view the organization holistically. Conceptualization requires imagination, broad knowledge, and the mental capacity to conceive abstract ideas. Applying this requirement may involve suggesting a new product line for a company, introducing computer technology to the organization’s operations, or entering the international market. One example of conceptual skill may be that the managing director of a bank visualizes the importance of better service for its clients which ultimately helps attract a vast number of clients and an unexpected increase in its deposits and profits.
 
Conceptual skill helps the manager conceive abstract ideas and foresee the organization’s future shape.
 

Relative Skills Needed for Effective Performance at Different Levels of Management

Fayol and Katz suggest that although all the skills i.e. technical, human, and conceptual, are essential to a manager, their relative importance depends especially on the manager's rank in the organizational hierarchy.
 
Technical skills are especially important for first-line managers who spend much of their time training workers and answering questions about work-related problems.
 
Human skills, although important for managers at all levels, are especially needed by mid-level managers. Their ability to tap this resource of their subordinates is more important than their technical proficiency.
 
Conceptual skill is mostly needed at the top level. The importance of conceptual skill increases as one rises through the ranks of management. At higher and higher levels of organization, the full range of relationships, and the organization’s place in time are important to understand. This is where a manager must have a clear grasp of the total picture of what his/ her enterprise would look like in the remote future.
 
Other Skills of Managers
Besides the skills discussed so far, there are two other skills that a manager should possess, namely diagnostic skills and analytical skills.
 
Diagnostic skills: Successful managers are found to possess diagnostic skills. A manager can diagnose a problem in the organization by studying its symptoms. For example, a particular division may be suffering from low productivity. With the help of diagnostic skills, the manager may find out that the division’s supervisor has poor human skills. This problem might then be solved by transferring or training the supervisor.
 
Diagnostic skill helps locate trouble spots in an enterprise while analytical skill helps ascertain appropriate measures to solve problems. But neither of these two skills is the same as decision-making skills.
 
Analytical skill: By analytical skill, we mean the manager’s ability to identify the key variables in a situation, see how they are interrelated, and decide which ones should receive the most attention. This skill enables the manager to determine possible strategies and select the most appropriate one for the situation. Analytical skills are similar to decision-making skills, but analysis may not involve making an actual decision. For example, when selecting a site for a new plant, a manager may analyze the advantages and disadvantages of several sites and make a recommendation to the board of directors, which makes the ultimate decision.
 
In short, diagnostic skill enables managers to understand a situation, whereas analytical skill helps determine what to do in a given situation.
 

Sources of Management Skills

There are primarily two sources of management skills viz. (i) education and (ii) experience. Some managers draw largely from one source or the other, whereas others rely on a combination of the two.
 
Education as a source of management skills: The principal advantage of education as a source of management skills is that a student can follow a well-developed program of study, thereby becoming familiar with current research and thinking on management. Moreover, most college and university students can fully devote their time, energy, and attention to learning. They can acquire management skills in an academic setting.
 
In developed as well as developing countries, the number of enrolments in business schools and colleges has tremendously risen in recent years. More and more bright students are seeking degrees in management and administration. B.B.A. and M.B.A. programs at universities, colleges, and institutes have also been experiencing rapid growth, and they often attract students from diverse fields.
 
With the advancement of modern technology, management requires highly qualified managers. Hence, the number of management students is increasing fast, and a great many of them are currently employed as executives.
 
Moreover, the current trend is clearly toward formal education as a prerequisite to business success. Non-business graduates, like engineers, architects, and so on have recently begun to take more and more business courses to enhance their job opportunities. Even though they have degrees in management, most of them have not stopped their academic education in management. Many of them periodically return to the campus to participate in management development programs. Lower- and mid-level managers also take advantage of programmers offered by open universities under the distance mode.
 
The most recent innovation in extended management education is the Executive MBA program offered by business schools and institutes of business administration. Under this system, middle and top managers enroll in accelerated programs of study on weekends.
 
In Bangladesh, as in most developing countries, most managers in the 70s or even in the 80s were without any degree, let alone a management degree. The most modern developments in information and computer technology, communication, etc. have made them redundant as managers. Thus, today’s employers are very careful in employing only properly educated people in managerial positions.
 
Experience as a source of management skills: Management education may be too general to make a manager successful in a specific field and herein comes the importance of experience as a source of management skill. In fact, for a variety of reasons, experience has no alternative to success in many managerial positions. Thus, many managers get to the top because of their rich resources of experience in other jobs. By experiencing the day-to-day pressures and by meeting a variety of managerial challenges, a manager develops insights that cannot be learned from a book. His hands-on experience is an invaluable treasure that no one can acquire merely by reading books.
 
Practical experience makes academic education in management tested and foolproof.
 
Young and prospective managers can gather experience in several ways. Organizationally, they can be systematically assigned to a variety of different jobs. Over time they are exposed to most, if not all, of the major aspects of their organizations. In this way, managers can perfect their required skills through experience. Both formal and informal training programs also help managers sharpen their job experience.


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2024-07-11 14:37:56
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