Nature of Management and its Process

Management Skills

Management Skills are important to lead a team and drive the organization in the right direction. And to be a good manager it is important to have skills like Planning and creating an effective strategy, good communication skills, decision making, leadership skills, problem-solving skills, time management, conceptual-skills, controlling, motivating, and leading the team, etc. A Manager with good managerial skills is one of the pillars of the organization and has the ability to lead the company to success. Famous French Industrialist Henry Fayol divided management into 5 types. In this article, we will discuss the skills all managers should have.

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Management Skills

Following are the four management skills or functions which are essential for the success of any manager. Regardless of the size and nature of the organization, a manager requires all these four managerial skills to achieve the organization’s goals.

  • Planning
  • Controlling
  • Organizing
  • Leading

management skills


Planning is one of the most important skills for project managers. It is all about defining the goals of the organization. The manager should have a vision and plan for the future. Further, it includes two important components:

  1. Determining objectives with respect to the goals and
  2. Finalizing plans, strategies, and actions for achieving the goals.

Browse more Topics under Nature Of Management And Its Process

Learn more about Managerial Roles here in detail.


Once the planning is done, the manager needs to allocate and arrange resources for the successful implementation of the plans. These resources include both human and non-human resources.

Organizing is one of the essential managerial skills. Organizing helps managers determine the list of pending tasks, combine them into jobs, and group the jobs into units giving a form to the organization’s structure.


One of the primary responsibilities of a manager is to ensure the completion of all tasks on time and strict adherence to policies. And for this Leadership skills are important. Leadership skill involves:

  • Creating and sharing a vision of possible achievements by the organization
  • Communicating with employees and creating good interpersonal relations
  • Motivating and inspiring team members to perform better.

Leading also ensures that the managers create a positive environment at work. This also helps improve the performance of each employee or group of people, boosts their morale and leads to a productive and innovative team.


Another important management skill is ensuring that the performance of the organization conforms to the expected goals and standards. They do this by regulating the activities in the organization. Also, in order to regulate, a manager’s role involves:

  • Monitoring ongoing activities
  • Establishing standards of performance/output
  • Comparing results with the standards
  • Identifying areas that need improvement (can be processes, policies, or practices) and initiate corrective action.

Also, there are times when the strategies and/or plans developed and implemented do not work as planned due to external factors. At such times, identifying such factors and taking corrective action can help bring the team back on track.

Learn more about Tasks and Responsibilities of Effective Manager here in detail.

Other soft skills a manager should have for effective management are:

  • Technical Skills
  • Conceptual Skills
  • Interpersonal Skills
  • Problem Solving Skills

Management Process

Management is a complex process and requires an excellent manager with adequate management skills for balancing all the different components. Further, in an organization, managers at all levels are involved in all four functions specified above.

However, the balance between them can vary depending on their level/role. The sign of a great manager is the optimal use of all these four functions in a systematic manner.

Also, in a business environment, these four functions, along with the resources and outcomes are inter-related and work in tandem as a process.

management process

For any business

  • Inputs include resources like human, financial, raw materials, technology, and also information.
  • After receiving these inputs, the staff’s activities, management functions, and the organization’s processes and technology turn them into finished products/services.
  • Outputs include products/services, financial results (like profits or losses), and human results like employee productivity and also job satisfaction.
  • Also, the system’s success depends on its effective interaction with its environment which includes the institutions and groups that it depends on. Some such groups/institutions are financial institutions, labor unions, suppliers, customers, government agencies, etc.
  • Further, for any business organization, the sale of products and/or services generates revenue which pays taxes, wages, helps in the purchase of more inputs, repay loans, and generates profits. The organization dies if the revenues are not enough to satisfy the different environmental demands.

Solved Question for You

Q1. What are the four primary skills and functions of a manager?


The four primary skills and functions of a manager are:

  1. Planning
  2. Organizing
  3. Leading
  4. Controlling
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One response to “Development of Management Theory”

  1. Chris D says:

    Weber’s principles seem so progressive, even for modern workplaces!

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