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INTRODUCTION TO BUSINESS

Yavuz Karazeybek

Resource: Jeff Madura-Introduction to Business (2006)

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Managerial Skills

3

Conceptual Skills

Interpersonal Skills

Technical Skills

Decision Making Skills

Time Management Skills

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Managerial Skills

3

Conceptual Skills

Conceptual skills depend on the manager’s ability to think in the abstract.

Managers need the mental capacity to understand the overall workings of the organization and its environment, to grasp how all the parts of the organization together, and to view the organization in a holistic manner.

Managers with conceptual skills:
have the ability to understand the relationships among the various tasks of a firm
see how all the pieces fit together
have general understanding of the firm’s operations

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Managerial Skills

3

Conceptual Skills

Conceptual skills are commonly used by the top-level and middle-level managers who are not directly involved in the production assembly process.

�Conceptual skills are necessary to optimally utilize employees and other resources in a manner that can achieve the firm’s goals.

�

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Managerial Skills

3

Interpersonal Skills

Interpersonal skills—the ability to communicate with, understand, and motivate both individuals and groups.

As a manager climbs the organizational ladder, he or she must be able to get along with subordinates, peers, and those at higher levels of the organization.

�Virtually all managers perform tasks that require good interpersonal skills (communication skills) which is related to communicate with employees and customers.

�

(also referred to as communication skills). All levels of managers (top level, middle level and first-line managers) need to have good interpersonal skills. Because these managers must communicate to conduct their responsiblities. Any communication problems will affect business performance. For example, the finance divison may allocate budget for marketing based on the sales projections coming from marketing dvision. Managers need interpersonal skills for an effective communication with both

customers and employees.

Communication with Customers

Many managers must communicate with customers to ensure satisfaction. They listen to customer complaints and attempt to respond in an acceptable manner. They may also

bring other complaints to the attention of top management. Managers lacking good interpersonal skills may ignore customer complaints. Consequently, problems go unnoticed until a large number of dissatisfied customers stop buying the firm’s products. By that time, it may be too late for the firmto regain customers’ trust. One of the most important interpersonal skills is the ability to ask good questions. Without this, the real story behind customer or employee dissatisfaction may not be uncovered.

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Managerial Skills

3

Interpersonal Skills

Communication with Customers

Managers must communicate with customers to ensure satisfaction.

They listen to customer complaints and attempt to respond in an acceptable manner.

They may also bring other complaints to the attention of top management

Managers lacking good interpersonal skills may ignore customer complaints. Consequently, problems go unnoticed and firm will fail.

Ability to asking good questions: without this you can not understand the real problem of customers or employees.

�

(also referred to as communication skills). All levels of managers (top level, middle level and first-line managers) need to have good interpersonal skills. Because these managers must communicate to conduct their responsiblities. Any communication problems will affect business performance. For example, the finance divison may allocate budget for marketing based on the sales projections coming from marketing dvision. Managers need interpersonal skills for an effective communication with both

customers and employees.

Communication with Customers

Many managers must communicate with customers to ensure satisfaction. They listen to customer complaints and attempt to respond in an acceptable manner. They may also

bring other complaints to the attention of top management. Managers lacking good interpersonal skills may ignore customer complaints. Consequently, problems go unnoticed until a large number of dissatisfied customers stop buying the firm’s products. By that time, it may be too late for the firmto regain customers’ trust. One of the most important interpersonal skills is the ability to ask good questions. Without this, the real story behind customer or employee dissatisfaction may not be uncovered.

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Managerial Skills

3

Interpersonal Skills

Communication with Employees

Managers need good interpersonal skills when communicating with employees:

Clearly communicate assignments to employees
communicate with employees who made mistakes on the job to correct them
listen to complaints from employees and attempt to resolve their problems

Middle and top level managers who use good interpersonal skills in communicating with lower management will be better informed about the problems within the firm.

Interpersonal skills are often used by top and middle managers when they must make decisions based on information provided by other managers. (Financial managers’ reports should include sales volume ’sales department’, production cost ‘production department’ projections)

�

(also referred to as communication skills). All levels of managers (top level, middle level and first-line managers) need to have good interpersonal skills. Because these managers must communicate to conduct their responsiblities. Any communication problems will affect business performance. For example, the finance divison may allocate budget for marketing based on the sales projections coming from marketing dvision. Managers need interpersonal skills for an effective communication with both

customers and employees.

Communication with Customers

Many managers must communicate with customers to ensure satisfaction. They listen to customer complaints and attempt to respond in an acceptable manner. They may also

bring other complaints to the attention of top management. Managers lacking good interpersonal skills may ignore customer complaints. Consequently, problems go unnoticed until a large number of dissatisfied customers stop buying the firm’s products. By that time, it may be too late for the firmto regain customers’ trust. One of the most important interpersonal skills is the ability to ask good questions. Without this, the real story behind customer or employee dissatisfaction may not be uncovered.

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Managerial Skills

3

Technical Skills

Technical skills are the skills necessary to accomplish or understand the special kind of work being done in an organization.

Technical skills are especially important for first-line managers who spend much of their time training subordinates and answering questions about work-related problems.

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Managerial Skills

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Technical Skills

Many firms are using technology to help managers improve their technological skills.

�They provide information online that can be accessed by the managers from any location.

�Some firms have established networks so that managers can collaborate to improve and develop their skills.

Such network reduces training and travel budgets because their managers no longer have to travel to conferences for training.

�

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Managerial Skills

3

Decision Making Skills

Decision-making skills refer to the manager’s ability to correctly recognize and define problems and opportunities and to then select an appropriate course of action to solve problems and capitalize on opportunities.

Managers need decision-making skills so that they can use existing information to determine how the firm’s resources should be allocated.

�

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The following are some typical decisions regarding the utilization of the firm’s resources:

Should more employees be hired?
Should more machinery be purchased?
Should a new facility be built?
Should the assembly-line operation be revised?
Should more supplies be ordered?
Should salaries be adjusted?

This decisions affect either the revenue or the operating expenses of the firm and therefore affect its earnings.

Managers who make proper decisions can improve the firm’s earnings and thereby increase its value.

Managerial Skills

3

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Managerial Skills

3

Decision Making Skills

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Managerial Skills

3

Time Management Skills

Time-management skills refer to the manager’s ability to prioritize work, to work efficiently, and to delegate appropriately.

As already noted, managers face many different pressures and challenges.

It is too easy for a manager to get bogged down doing work that can easily be postponed or delegated to others.

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How Managers Manage Time

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Managers have a limited amount of time to spend managing their responsibilities.

Therefore, they use time management, which refers to the way managers allocate their time when managing tasks.

Set proper priorities
Schedule long time intervals for large tasks
Minimize interruptions
Set short-term goals
Delegate some tasks to employees

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How Managers Manage Time

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Set Proper Priorities

One of the main reasons for time management problems is that managers lose sight of their role.

Consider a regional sales manager who has two responsibilities:

Resolving any problems with existing sales orders
Entertaining new clients.

It may be more enjoyable to entertaining new clients but manager should pay close attention to resolving existing problems.
consider what is the best for the firm and prioritize

�

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How Managers Manage Time

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Schedule Long Time Intervals for Large Tasks

Managers may be able to complete large tasks efficiently by scheduling large intervals (blocks) of time to focus on those tasks.

Within each block, managers can focus all of their attention on the large task.

�The best strategy for a task that requires less than one day of work may be to focus completely on that task until it is done.

In general, more work on a large project can be accomplished within one three-hour interval than in three separate one-hour intervals spread throughout a day or a week.

When using short time intervals, managers waste time refreshing their memories on the issue of concern and the potential solutions.

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How Managers Manage Time

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Minimize Interruptions

Virtually all managers are interrupted during the normal working day. Some problems may require immediate attention, but others can be put off until later.

Managers should stay focused on the task at hand and avoid unscheduled interruptions (except for emergencies).

Some managers have a natural tendency to create their own interruptions. For example, they may stop in offices of other employees to socialize.

�Although socializing during work hours may help reduce stress or boredom, managers should attempt to complete a certain amount of work before taking a social break. In this way, the break is a reward for accomplishing some work, not simply a means of putting off work.

�

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How Managers Manage Time

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Set Short-Term Goals

A common problem for managers is meeting deadlines, especially on large tasks.

Managers should set short-term goals so that they can chip away at large tasks.

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How Managers Manage Time

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Set Short-Term Goals

Consider a manager who is assigned the task of purchasing a new computer system for the firm. The manager should break down the assignment into smaller tasks, such as:

Obtaining all the relevant information from other employees on the features that the computer system should have (Task A)

Calling firms that sell computer systems to obtain price quotes (Task B)

Visiting firms where similar computer systems are in place to determine how well they work (Task C)

�*Task C cannot be done until Task B is completed, and Task B cannot be done until Task A is completed.

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How Managers Manage Time

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Set Short-Term Goals

Let’s say this assignment must be completed in 10 weeks.

�Task A: first 3 weeks

Task B: 4th and 5th weeks

Task C: 6th and 7th weeks

�This schedule allows a few extra weeks before the deadline in case unexpected problems cause a task to take more time than was planned.

�

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How Managers Manage Time

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Delegate Some Tasks to Employees

Managers have only so much time to complete the tasks they are assigned.

If they can delegate some authority to their employees, they will have more time to be creative.

�By delegating, managers may even increase the job satisfaction of employees who prefer extra responsibility.

However, managers should delegate only those tasks that employees can handle.

�

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Reading (p.265)

How to Manage Time to Complete a Project