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The Importance of Managerial Skills for Organizational Success

Literature Review

People in an organization are since several years considered as one of the most valuable resources and crucial element for the smooth running of business because of its effort in increasing output, business performance and economic growth (Schultz, 1962).The changes that organizations are facing in the 20th century have made businesses very complexed and the success of any organization will depend largely on good decision-making skills, effective work systems, and processes, as well as effective managerial skills. The numerous management skills are technical, conceptual and human skills.

Management skills are vital and they are important at various levels in an organization. According to Koch (1997), skill is an ability and when the skill of a manager matches their job's skill requirements, it is in the advantage of both the manager and the organization. These skills position you to act as a good leader and problem-solver in so many circumstances.

Throughout this study, a quick informal chat was conducted with the Human Resource Manager and Operation manager of 2mtech Services Ltd where we found out that the skills needed to be a good manager are an amalgamation of both hard and soft skills.

The most common classification of managerial skills was conducted by Robert Katz. Katz (1955) has conducted research in administration and through his observation on an employee in the office he concluded that these skills are of utmost importance for effective administration and these skills are technical, human and conceptual skills

Noe, Hollenbeck, Gerhart, and Wright (2017) has stated that the technical skills are significant for the manager. It involves the technical knowledge, process, as well as proficiency in some of the fields such as accounting, computers, manufacturing, and engineering. As per Rasaki, E., and Abioye, A. (2018), technical skills take account of the capacity to make use of complex procedures and techniques of specific ?eld. It has also discussed that the proper understanding of the job nature is also included in the technical skills. In recent time, several technical advancements are seen that tends to help attain organizational success. According to Boone, L.E., Kurtz D.L., (2005), managers who possess technical skills can identify and use the knowledge, techniques, tools, and equipment for the define tasks of small business in question.

Katz (1955) has also added when people have the knowledge and capabilities to use the knowledge, techniques, tools, and equipment for the specific type of work or activity. It includes know-how in a specific area, analytical ability and the capacity to use appropriate tools and techniques (Katz 1955).

Technical Skills

Drucker, P. F. (2007) stated that with the help of such a skill, managers can look at the organization as a whole and see how each department works together. Block (2016) has also recognized the importance of conceptual skills. It means the formulation of proper ideas as well as a solution for the complex problem. Conceptual skills are highly significant for top managers as well as middle managers and it helps them visualize concepts, see the interrelationships between each departments and it helps them see the organization as a whole.

In addition to this, Longenecker, C. (2001) has recognized the importance of conceptual skills and has added that it is the ability to make quick decisions, solve issues, to develop effective business strategies and to establish rapidly changing operations. In today's competitive environment, organizations come across several complex problems. The solution for those complex problems is the responsibility of a manager in an organization and its success depends on how much the organization can solve the problems. Managers who possess conceptual skills are also responsible for developing creative ideas and as well as an understanding of complex situations that an organization might face in this competitive world. No organization can succeed in this competitive environment without ensuring innovation and creativity.

Sunindijo (2015) has stated that human skills are skills that help an organization achieve success, it involves the ability of the manager to communicate with the people effectively. In every organization, communication between a manager and his/her employees is essential. Managers with the best communication skills can bring out the best among people. They effectively know how to motivate, communicate, inspire, as well as lead the employees.

Managers with human skills are easily able to recognize the sentiments and feelings of other people. Being interactive with every person daily has proved to be the topmost human skill. Therefore, interpersonal skills are required for the smooth running of the operation. Rasaki, E. and Abioye, A. (2018) stated that human skills are skills that allow managers to interact, able to work with, value and encourage other people either as individuals or groups.

Without the use of motivation tactics, managers will not be able to keep the positive energy within its workplace . Good managers are emotionally intelligent people and they are able to communicate the goals of the organization to the employees.  As per Stashevsky, S., Burke, R., Carmeli, A. and Tishler, A. (2006), both human skills and intellectual abilities has an impact on the performance of the company, but human skill has a greater impact on the performance

Conceptual Skills

As illustrated in Figure 1, technical skill is vital for lower-level managers and less significant for top managers. As we climb the hierarchical ladder from lower to higher-level managers, the technical skills lose its importance, for CEOs and Directors at the top-level technical skill are less significant. Top-level managers depend on skilled subordinates to handle technical problems in the department. However, human skills are necessary at the three-level of management whereas conceptual skills are less at the supervisory level.

This study also helps us understand how the managers should apply those skills to perform their function properly. For us to get the whole idea regarding organizational effectiveness, it is essential to keep a clear list of success. Good management practice is required to achieve effective utilization of resources and minimum wastage. Management skills are said to be the abilities and attributes that are required for fulfilling a certain task and function in the organization. The several functions include planning, organizing, leading and controlling. It also includes the capability to perform the responsibilities and duties by avowing some problems. Skills in a manager can also be developed through practical experience as well as learning. Without the necessary skills, the manager won't be able to deal with its subordinates that further allow the easy flow of some activities.

Karbelkar and Hart (2018) have stated that without the help of these skills, it is not possible to perform the different functions of management. The first function of management is planning and after deciding the objectives in planning, it is also essential for the manager to gather the necessary resources that are required and this is known as organizing. Whilst deciding the goals, it is important for the manager to properly figure out the significant changes that the organization requires. At this time also, human skills are required for carrying out the proper planning process and conceptual skill is also required in this process. Managers in the organization are responsible for properly allocating the short term as well as a long-term goal in the appropriate way.

Leading is also one the  function of the management and it helps the management in controlling the actions of its members. It further helps the organization in communication, motivation as well as leadership. Under the leading function of management, managers tend to maintain a positive and productive working environment where employees are also engaged in problem-solving. However, it can only be possible when the manager ensures communication. There are times when employees are not communicated properly. In such a situation, employees tend to perceive things according to them. Sometimes, results turn out to be negative due to the wrong perception of things.

Human Skills

In such a situation, managers are required to clarify the concepts to the lower level management so that they assure the employees regarding their roles and responsibilities. At the time of controlling too, the manager needs to check the results and this requires technical skills. It requires due consideration on the part of the organization to compare the current performance of employees with the past performance.

For the reference of this study, we shall be analyzing the skills that managers possess at 2mtech services Ltd, which is an IT consultancy firm.

In 2mtech services Ltd, the higher management has identified that the demand of customers is also continuously changing such as online purchasing. Due to such changes, managers in the organization are required to think strategically which affects the organization positively. By addressing this, Margerison (2017) identified that managers who fail to address the technological changes; the organization will not be able to grow in the 21st century. To achieve success, an organization is required to be adapted to the changing environment and managers have the responsibility for ensuring the development and growth in an organization.

The Human resource manager of 2mtech Services Ltd emphasizes on human skills and it has helped the company to achieve its goals and objectives. She believes that managers who can motivate the employees have proved to be a significant asset for the organization. She also added that managers who are not aware of the importance of its human resource will lead to lower productivity as well as a higher level of dissatisfaction. Luthans, F. and Peterson, S. (2002) state that manager's ability to accomplish a task may be related to employee commitment because as the manager's employees become more passionate about their work, the managers become confident and trust their abilities to create and bring employees together to form a team.

The strong performance of the manager tends to enhance the commitment of employees and their engagement will also help the organization in gaining loyal customers. The success of any organization largely depends on better services. As a result, the skills of the manager in ensuring the employee's engagement proved to be highly helpful for the organization. A good manager always possesses those skills that tend to create a balance between the personal and professional life of any individual. When employees are not given the chance to fulfill their personal needs, they will not be able to perform well. It, therefore, decreases the morale of employees and the performance of the organization.

Problem-solving is also a significant skill that empowers the manager to face, identify, as well as overcome the several problems that can arise in the workplace and it forms part of the conceptual skill. The operation manager of 2mtech Services ltd also uses conceptual skills to solve the complex problems such as increasing the churn rate. In this regard, Hurrell (2016) stated that conceptual skills are the creative force within the workforce. It helps the organization in analyzing the environment as well as threats and opportunities. It is especially required at the top-level management. If top-level management fails to identify the opportunities exist within the organization, it will not be able to succeed.

The conceptual skills are the final type of skills that give managers the capacity to evaluate a situation and differentiate between cause and effect. Bharwani, S. and Talib, P. (2017), also said that through conceptual skills, a manager will be able to make a decision, think strategically and analyze the complex situation.

A manager who fosters effective management skills is easily able to work according to the vision and mission of the organization. Good managers also prove as a good leader in the organization. The manager act as the role model by expanding some of the good examples to its employees.

Through the above analysis, it can be stated that the organization's effectiveness and success largely depend on the skills possessed by the manager. 2mtech services Ltd runs based on policies and rules made by top-level management. Based on those policies, each department of the organization works and moves further. If 2mtech services Ltd's top management will fail in making the appropriate policies, it will not be able to bring the productivity on the part of employees. It impedes the top management to ensure that a manager tries their potential best in seeking excellence and thrive organizational success.

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