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Oct 18

Basic Business Management Skills That Managers Need to Have (2)

basic business management skill

Business Management Skill

Directed Thinking
Simply put, it refers to thinking towards a specific goal. The ability of directed thinking is crucial to develop a business idea as it involves logical, purposeful thinking to reach a particular goal. It is an important part of problem solving, and can fall under both, conceptual and diagnostic business management skills.

Effectiveness
One more quality that a skilled manager should possess, is the willingness to work effectively towards the achievement of his business goal. Management guru Peter Drucker made a distinction between ‘efficient’ and ‘effective’. According to him, performing an activity swiftly and economically refers to being efficient, while doing the right thing at the right time, with efficiency, refers to effectiveness. Good business management skills lead you to the right goals. On the other hand, doing the wrong things or doing things in the wrong direction is a waste of time and resources. In other words, it’s the exercise of efficiency to no avail. A leader should know how to prioritize business activities. He should be able to understand what’s important for the business and differentiate it from what is urgent. It is important for effective business management.

Knowledge of Strengths and Opportunities
Effective business management asks for a complete knowledge of the strengths and growth opportunities a business has. Knowing the strengths requires an  understanding of the availability and potential of the business resources. A complete understanding of the business and competition can help a manager understand the prospects of his business.

Knowledge of Weaknesses and Threats
As a leader, one should be able to understand the weaknesses of his organization and try to improve on them. A manager must be able to identify the threats to his business and fight them effectively. He should have the skill to endure every setback and learn from mistakes or bad decisions. Successful business development strategies used by others can help a business manager devise his own. This is where the skill to ‘experiment’ comes in the scene. Experimentation needs to be accompanied by the right judgment of actions and results.

Business management includes management of all business/organizational  resources. And that includes management of money, time, and people. Proper prioritizing and scheduling of tasks for oneself and the team is an important constituent of business management. Management of money is integral to running a business. The activities of buying, selling, and pricing have to be done skillfully.  Business management is not a cakewalk. It includes everything from planning, supervising, right up to being the spokesperson for your business.

People Skills
A business manager needs to possess people skills for effective management of human resources. A manager should be able to bring out the best from his team. Difficult people, those with rigid opinions and those not adaptable to change, need to be dealt with. Identification of errors followed by instructions for improvement need to come from a manager. He needs to imbibe in the minds of others that improvement is a continuous process and is essential for growth. A manager should take every opportunity to appreciate the efforts of his team members and celebrate the team’s successes. This encourages them to work to the fullest of their capacities. A manager should have the ability to keep the team’s spirits high and keep the people motivated. It’s human psychology to like getting noticed for one’s work. It’s not unnatural for one to expect recognition for his work. One of the most important business management skills is to be able to encourage your team members, extract work from them and appreciate them for it.

Approachability
Another managerial skill is to create and maintain an open atmosphere in the team. The team members should feel free to voice their concerns and always feel assured of their concerns being heard. There should be a proper hierarchy for  communication within the organization. It is a good practice to assign relatively experienced employees as buddies for those newly joined so that the new recruits do not feel unheard. This way, everyone in the organization has a point of contact.

Communication Skills
Communicating in a way that everyone understands is a skill a manager should have. That’s essential for teamwork and thereby for business management. In the words of Henry Ford, “Coming together is a beginning. Keeping together is progress.  Working together is success”. This is what teamwork means. Developing a team spirit and maintaining it through thick and thin of a business is indeed a management skill. Keeping people together needs a manager to be a good communicator. Being able to convey one’s ideas to people, and getting good work done from them, is a skill. Communication should be effective. A business manager needs to exercise his communication skills, not just when interacting with the team, but also when communicating with external agencies, for example, during business negotiations or when addressing customer issues. That depends on your job responsibilities in the organization, but communication is an important part of a managerial role.

Foresight
It is important in business management. A business manager needs to be able to sense trouble ahead of time. He needs to be prepared for it and plan work and devise strategies accordingly. Foresightedness helps a manager assess future needs of the business and identify emerging fields for diversification.

An excellent example of a business developer with foresight, was Steve Jobs. “You can’t just ask customers what they want and then try to give that to them. By the time you get it built, they’ll want something new”, Steve Jobs said. He believed in anticipating customer needs in advance to be able to give them products they would start wanting.

Management is about taking the right decisions at the right time and getting them implemented by the right people. Effective business management requires a manager to have certain basic skills like the ones given above. And the important one, yet uncommon thing he needs to have is common sense.

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