Importance of management skills

Introduction

For your small business to grow, expands and flourish the management team needs to follow basic, yet profound skill sets to achieve success of the business. If these management skills are not taken seriously enough the outcome will begin to become failure of the business. A couple of three key management skills that small company managers need to follow for success they are; Technical skills, Human skills, Conceptual skills. Then there are specialised skills that are imperative for small business success that occurs these include; Planning, Organising, Directing and Controlling. Small enterprises might not obtain these skills because of not having the opportunities to learn these skill sets by using courses or university education. Without these skills smaller businesses will find it near impossible to be successful but through the implementation of the skill sets smaller businesses will experience growth and prosperous times.

Technical skills

Boone, L. E. , Kurtz D. L. , (2005) states that technical skills are when the manager of the small business gets the capacity to recognise and use the data, techniques, tools and equipment for the explicit tasks of the tiny business in question. Technical skills examples that managers should be proficient in include education and accounting because they are processes or working with physical objects.

Human Skills

Human skills will be the interpersonal skills management need to permit their staff to work well and efficiently. Within the adaption of human skills, there's a need for the capability to communicate, motivate and lead employees to meet and accomplish goals and objectives set to them. It really is vital for a manager of a tiny business to obtain human skills due to need on all sides of the business enterprise, this can be seen through the use of communicating effectively to their staff through the use of email, mobile phones, faxing, and even through completely new forms such as instant messaging like msn and social networking sites such as face book and MySpace (Drucker, P. F. , 2007).

Conceptual skills

Conceptual skill are the managers ability to see the organisation as a unified whole and also to understand how every part of the overall small company work together (Drucker, P. F. , 2007). Conceptual skills involve the ability to see the big picture by acquiring, analysing and interpreting everything passed to them by their subordinates. A manager that is efficient with conceptual skills can pinpoint how changes in one portion of the organisation will consequently affect other parts of the organisation.

Planning

Planning is the procedure of anticipating future events and conditions and identifying courses of action for achieving organisational objectives. Effective planning can help the management team to cement the ideas for the tiny business as well as trying to minimise and steer clear of expensive mistakes and pick up on great and beneficial opportunities. The look process should take place in the beginning of any new projects going to be taken on board, this can be done through the assistance of using mind mapping skills, listing or a project managements benefits and drawbacks list. Without planning the organisation is set up to fail as they cannot justify its budgeting needs of their time, labour, costs and materials necessary for the project to be completed ( Ebert, R. J. , Griffin, R. W. , 2007).

Organising

Another skill that is vastly important to the success of the small business is organising. Ebert, (2007) states that organising is when managers blend human and material resources together via a formal structure of tasks and authority. Organising help sort and separate work into manageable units by identifying specific responsibilities necessary to complete the small businesses goals and objectives. While organising is paramount in organising projects, it's all also imperative for planning staff to execute the tasks. The management have to be able to perform the necessary tasks and transfer power and responsibility to staff, who is able to adequately meet up with the goals and objectives of the tiny business to a superior quality and on time, if staff are not properly sourced for the roles being performed the project will thus fail and intern hamper any long time success of the small business.

Directing

An imperative skill that managers must have for a little business to achieve success is directing, which is the motivation of the employees by managers to perform organisational objectives. The tasks involved for the manager is to clarify procedures, issue orders and oversee all mistakes until they are corrected (Ebert, 2007). Other types of directing that managers need to work with are through getting their subordinates to agree on how they will meet their objectives and inspire these to step beyond what is expected of these by the business. Directing originates from having leadership qualities to be able to motivate and inspire all employees into following their instructions as well as providing them with ample possibility to achieve the goals and objectives that contain been set.

Controlling

Controlling is the skill of evaluating an organisation's performance to find out whether it's accomplishing its objectives. The reason a manager uses controlling is to determine the success of the look function by the end of most projects no matter the size, the controlling skill allows for feedback for planning in the future. You will find four standard steps for controlling to be a highly effective tool, they are the establishment of performance standards, monitor actual performance, compare actual performance with established standards also to take action to improve and mistakes if needed.

Consequences for not having management skills

"A failure establishes only this, our determination to succeed had not been strong enough. " (Boyee) Small businesses have one fundamental flaw that sets them apart from big business, they don't have funding and the person power to cover almost all their mistakes, these mistakes can easily be avoided by the induction of management skills. With no carful and succinct use of the skills within smaller businesses will quickly loose clients that may lead to less revenue which will lead to the failure of the business.

Without careful planning and organising, there can be no summary of products that the small business will be using is target to the right audience or socio economical market, an example of this would be a surfboard shop opening in the primary road of Kalgoorlie, Western Australia as it is a mining town in the middle of the Australian Outback eight hundred kilometres away from the closet beach. A more appropriate selection of store will be a tradesman store stocking steel cap boots, reflective shirts and hard hats; these meet up with the demands for a more substantial range of potential clients and the community.

Without the human skills being utilized by management within the tiny business there will be a degree of discontent and dishearten of all the subordinates, this will be through having less bonding between management and personnel over not merely work issues but also social issues. Certo, S. C. , Certo, S. T. , (2006) states that this can create workplace politic problems the draw essential attention from the work accessible thus not reaching the goals and objectives that have been set. Also if human skills are not being met within small businesses there is absolutely no way for management to be able to update and help employees when they are trapped in situations that are unfavourable to the business enterprise or even to the successful completion of projects.

If small businesses didn't take having technical skills serious when starting the business enterprise, they'll soon be in trouble, technology is the trunk bone of all businesses across the world, without technology businesses would not have the ability to order new stock, send purchases to clients, talk to other employees and investigate enquires. Technology that is taken for granted such as computers, phones and tills all need proper training and careful caring for, without this employees would have no idea what to do when positioning a transaction through, who to demand ordering new stock or checking emails on the computers from clients wanting to purchase the merchandise. If Technical skills are missed out by the business enterprise vital cashflow from potential clients are missed out thus having a detrimental effect on the success of the tiny business.

Conceptual skills in management is a superb asset to sustainability and growth of smaller businesses. An lack of conceptual skills is the most common reason why smaller businesses struggle or fail, this is through management not considering the wider picture only concentrating on one section believing this is actually the answer to being truly a successful business. This may happen in the short run, however, not in the long run, with the long range plans for the future direction of the business, also parts of the business such as bills and expenditures aren't kept under wraps and documented properly set alongside the income of the small business can plummet the business enterprise into debt quite quickly through unexpected bills pilling up and needing to be paid all at once.

Reasons for not having Key management skills and introduction ideas

When smaller businesses first start up there is great deal of of idealism that goes into the way the business was going to succeed in the near future. Following the initial set up many of these smaller businesses get trapped into a regular cycle of repetitiveness, leaving no room for growth through the introduction of key management skills. The reason behind not have the main element management skills will come from various number of different reasons, the first is that there is no sufficient training for the manager within the business. This could accumulates from the fact that usually a small business owner can be an entrepreneur or simply coming out of an apprenticeship, meaning that they have the skills and the idea for what their product is but no idea how to run the actual administration side of the business. For the management skills to be in practice within a little business an education within the management field, or courses would allow small businesses to begin using management skills.

The second reason for small businesses never to have key management skills within the business is through problems of attracting key quality staff. Small businesses aren't the first area for highly educated businessmen and women to consider employment due to volatility of failure of small businesses, they mainly look for more developed large organisations to prosper and grow within. Small businesses are only attracting these kind of staff who result from family connections or who've become tired of the organization world and its own fast lifestyle and also have now buying change. This gives the tiny business only a slim potential for being able to attract staff that will help introduce and help prosper with the use of key management skills.

The third reason behind why smaller businesses are not introduce key management skills within their business is due to structure the business enterprise is under, like the family business that has been operating for several generations. These lenders possess the older generation in power positions that contain no formal education about business or about the changes that are had a need to stay financially viable in today's business society as well the older generation have a resistance to change. The old and outdated views of how to perform a business are passed down to the younger generations, who might possibly not have any formal education themselves, leaving the tiny business to suffer have no staff who have knowledge how to integrate and flourish the main element management skill in to the business. There's a state of favouritism that originates from family smaller businesses with an acceptance of poorly suited family members given management positions over more desirable staff; this gives no chances in the hiring of outside staff with the skills and qualification to the small business.

The current economical climate has turned vary volatile within the last year with the recent global financial economic crisis, small businesses have had to cut back on staff mainly in the area of administration. The loss of income that contributes to the increased loss of staff effectively cuts out all management who could effectively implement the management skills which could over time keep the business afloat.

There is other ways to improve the direction of smaller businesses that are not on the right track by no using the main element management skills. The first is to address all staffing roles, this is done through the use of a collective meeting of most staff and management, this meeting will cover the workings of the business enterprise to see what parts contributes to the downfall. This might lead to dismissal of staff but in the long term for the success of the business enterprise it is beneficial, hiring of staff who have or new management team who have clear goals and objectives on how to carefully turn the organisation around and implementation of the new key management skills.

Another key change is the introduction of a small business mentor in to the management team, thus giving a organisation expert the chance to help and develop certain parts of the management team to change the direction and structure of the tiny business. The mentor gives specific training and advice as well as help develop new goals and objects tailored around the new direction of the business. Also the mentor will show how to implement key management skills in to the management side to achieve greater long term success.

Conclusion

It is imperative for small businesses to really have the fundamentals of management skill to succeed in the long term within corporate society. Without the use of the vastly important skills the tiny business are affected detrimentally through the loss of income and consequently ending in closure of the business. These skills that managers need to implement include; Technical skills, Human skills, Conceptual skills, Planning, Organising, Directing and Controlling. Smaller businesses such as tradesmen and family run do not usual have adequate staff to deal with the implementation of the skills through various reasons, but this may change with a few steps that can be taken and so improve the life and positive outcome of the tiny business.

References

  • Boone, L. E. , Kurtz D. L. , (2005) Contemporary Business 11edition, Thomson& South-Western, United States
  • Drucker, P. F. , (2007) The Practice of management, Elsevier Limited, Oxford
  • Ebert, R. J. , Griffin, R. W. , (2007) Business Essentials 6edition, Pearson- Prentice Hall, New Jersey
  • Certo, S. C. , Certo, S. T. , (2006) Modern Management, Pearson- Prentice Hall, New Jersey
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