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Operations management is chiefly concerned with planning, organizing and supervising in the contexts of production, manufacturing or the provision of services.

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Personal power is your own skill and ability to influence people and events whether or not you have any formal authority.

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"I'm not afraid of storms, for I'm learning to sail my ship." - Louisa May Alcott

Personal leadership is a powerful thing.

In fact, Peter Drucker said personal leadership is "the only leadership that's going to matter in the 21st century."

According to Bill Butler, personal leadership extracts your potential and polishes it.

What makes personal leadership so powerful is that it applies to you. It's personal. It's you at your best. Personal leadership is a way to lead yourself from the inside out and apply proven business skills to get more out of life.

In The Inner Edge: The 10 Practices of Personal Leadership, Joelle K. Jay shares insights into why and how personal leadership is one of your most powerful tools for achieving more meaning and creating the life you want.

What Is Personal Leadership

In Building Personal Leadership, Joel Farcht defines personal leadership as follows:
"Personal leadership is the self-confident ability to crystalize your thinking and establish an exact direction for your own life, to commit yourself to moving in that direction, and then to take determined action to acquire, accomplish, or become whatever you identify as the ultimate goal in your life."
Design, Create, and Achieve Your Ideal Life

When you decide to lead a life of action, you write your story forward. You become the director of your life. You become the artist that throws the paint on the canvas of your future.

Via The Inner Edge: The 10 Practices of Personal Leadership:
"Personal leadership is your commitment to take the lead in your own life. You take the opportunity to design, create, and achieve your ideal ways of living and leading. In a positive, unselfish way, personal leadership means putting yourself first. Literally speaking, personal means 'about you'; leadership means 'coming first.'"
Lead Yourself from the Inside Out

Personal leadership is the kindling within. When you fan the inner flame, you unleash what you're capable of.

Via The Inner Edge: The 10 Practices of Personal Leadership:
"When you practice personal leadership, you lead from the inside out. The process involves asking yourself, 'How do I need to be and act and think in order to be my best?' - a kind of self-driven style well-suited to dedicated leaders like you who will carry business into the future. In order to do that, you must periodically turn away from the concerns of the day - the people, the problems, and the pressure - to explore and discover your inner edge."
Apply Business Skills to Your Personal Life

You can use the same practices that businesses use to survive and thrive and evolve over time.

Via The Inner Edge: The 10 Practices of Personal Leadership:
"To practice personal leadership, you apply the principles of leadership that make business a success ... to yourself. For example, leading in business involves having a compelling vision, developing strategies, and inspiring people to use their talents to meet a goal for improved business results. Leading yourself means applying these same principles of leadership to your role as a leader and your life. You, too, need a compelling vision and a strategy for reaching it. You need a team supporting you. You need results, as well as a sense of contribution and purpose. The difference is that personal leadership doesn't just make for better business, it makes for better leadership. It makes for a better you."
Inspiration, Not Perspiration

Personal leadership is a smarter kind of personal growth and path of personal excellence.

Via The Inner Edge: The 10 Practices of Personal Leadership:
"As a leader, you must learn to lead yourself to stay effective. When you practice personal leadership, you use every ounce of your potential with inspiration instead of perspiration, synergy instead of sacrifice, and wisdom instead of work."
Characteristics of Personal Leadership

What makes personal leadership different from other forms of leadership? Jay says "personal leadership is distinguished by its focus on the individual and an appreciation for who you are."

Via The Inner Edge: The 10 Practices of Personal Leadership:
Respectful. Personal leadership respects the extraordinary value of each human being. It does not, as many models do, tell you to be like someone else. Reflective. Personal leadership means thinking about what you're doing, in a spirit of wholeheartedness, openness, and responsibility. Renewing. A 2000 report from McKinsey and the Society for Organizational Development reported that 'the most important tool for leading 21st century change is the leader's self.' Unlike a take-no-prisoner approach to leadership, personal leadership offers an element of renewal- a way for leaders to slow down and advance in a powerful yet sustainable way. When you are overworked, overtaxed, and overtired, you burn out. When you are rested, rewarded, and renewed, you excel. Rewarding. No matter what you do for a living, your work can be rewarding. Personal leadership offers you the chance to create true prosperity - the kind of happiness that comes not just from financial gain but also from the richness of life. Raising the Bar. A focus on slowing down and thinking about oneself might seem at odds with traditional business goals of speed, profitability, and results. On the contrary, there is no correlation between success and hours worked. There is however, a strong correction between your ability to product and the joy you take in your work. Those who practice personal leadership don't just meet expectations: they exceed them.
The Benefits of Personal Leadership for You

Why should you consider practicing persona leadership. According to Jay, "personal leadership gives you a host of ways to do more, faster, and better."

Via The Inner Edge: The 10 Practices of Personal Leadership:
You Are More Efficient and Productive. You learn to do things the way they come naturally so you can be productive without being so busy. You learn to use your mind well. You manage your focus instead of your time, and your energy instead of your effort. The result? You achieve more with less. You experience quality work and quality time at once. You Feel Motivated and Inspired. Practicing personal leadership means you not only know what you do well, you know why you're doing it in the first place. Work isn't just work anymore. It's your chance to contribute your talents to people and ideas in which you believe. You Experience a Life of Joy and Fulfillment. One important aspect of personal leadership is the ability to connect, not separate, the different parts of your life. You can still be committed to your work, but your commitment supports your personal life. You can still devote yourself to your personal interests, but your devotion is integrated with your work. You don't have to trade one for the other, and so you move from distress to de-stress. Reconnecting with your sense of self does more than enliven your work. It makes life more rewarding. You see through the well-documented myth that money alone can buy happiness. Don't worry-you don't have to give up the gains of success. You just get to experience the rewards of joy and fulfillment as well. You Get Your Life Back. When you learn to lead yourself, you find more free time, choice, and control. Practice personal leadership, you learn that you can have it all without doing it all. You learn to put first things first and to let things happen instead of making them happen. Then at last you can achieve your ambitions while still saving something for yourself. You Get Better Results. It may seem that personal leadership has an awful lot to do with you. Indeed it does. But your success as a leader also produces better results for your business. As you focus on your inner edge, you become more effective on your outer edge. As you improve yourself, you improve your team, your organization, your company, and your results.
The Benefits of Personal Leadership for Business

Personal leadership isn't just a game changer for life. It helps with business, too.

Via The Inner Edge: The 10 Practices of Personal Leadership:
"In a time when leaders are gasping for breath, personal leadership breathes in new life. Businesses that honor the development and well-being of their leaders experience the following: higher customer satisfaction, lower turnover, higher productivity, increased creativity, integrity, resilience, speed, quality, and innovation. Study after study show the importance of high-performance leadership in business. Engagement alone, just one results of personal leadership, accounts for an 18 percent advantage in earnings-per share for organizations over their competitors. A study of the top 20 companies for leadership development showed that companies that emphasize leadership development gain higher profitability long-term. The bottom line: Personal leadership is smart business."
Love what you're capable of.

If you always thought leadership was for other people, or if leadership was all about leading others, take a fresh look at where true leadership really starts.

If you want to lead others, you need to lead yourself first.

Expand your sphere of influence from the inside out.

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"I'm not afraid of storms, for I'm learning to sail my ship." - Louisa May Alcott Personal leadership is a powerful thing. In fact, Peter Drucker said personal leadership is "the only leadership that's going to matter in the 21st century." According to Bill Butler, personal leadership extracts your potential and polishes it.

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Position power is the authority you wield by virtue of your position in the organisation’s structure and hierarchy.

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The control process involves carefully collecting information about a system, process, person, or group of people in order to make necessary decisions about each.

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Servant Leadership leads to higher engagement, more trust, and stronger relationships with team members and other stakeholders. It can also lead to increased innovation.

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Servant Leadership: How a jar can change the way you lead and serve | Ali Fett | TEDxFondduLac

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Job-centered Behavior:
This type of leader relies on reward, punishment, and legitimate power to influence the behavior of followers. An employee-centered workplace is one in which all individuals, programs, processes, and systems are focused on helping employees become fully successful.

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The life cycle theory of leadership postulates that as the group matures, appropriate leader behavior varies from high task and low consideration to both high to high consideration and low task to both low.

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Leadership Theory  Part-3 - III : Situational Theories -  Life-Cycle Theory (Hindi)- NET

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Defining Leadership: leadership is one of the four main interdependent activities of the influencing subsystem and accomplished by communicating with others. The central theme of leadership is getting things accomplished through people.

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Why good leaders make you feel safe | Simon Sinek | TED

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Interpersonal Communication: Interpersonal communication is not just about what is actually said - the language used - but how it is said and the non-verbal messages sent through tone of voice, facial expressions, gestures and body language.

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Develop your interpersonal communication skills. Learn about the communication processes and how to develop your verbal, nonverbal, listening and other skills.

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Emotional Intelligence is characterized by self-awareness, self-motivation, self-regulation, empathy for others, and adeptness in building relationships.

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With the help of a job analysis, you can accurately identify job candidates with the highest potential to become high performers.

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Equal Employment Opportunity Commission (EEOC):
The EEOC is responsible for interpreting and enforcing most – but not all – federal laws that prohibit employment discrimination

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The Equal Employment Opportunity Commission enforces federal laws prohibiting workplace discrimination.

The Equal Employment Opportunity Commission (EEOC) is an agency of the federal government, created by the Civil Rights Act of 1964 (Title VII). The purpose of the EEOC is to interpret and enforce federal laws prohibiting discrimination.

To achieve these goals, the EEOC holds hearings, administers equal employment opportunity laws for employees of the federal government, issues regulations interpreting the law, and litigates discrimination cases, among other things. The EEOC also accepts charges of discrimination from employees, investigates those charges, and attempts to mediate settlements between employees and employers.

Federal Laws Enforced By the EEOC

The EEOC is responsible for interpreting and enforcing most - but not all - federal laws that prohibit employment discrimination, including:

Title VII of the Civil Rights Act of 1964. Title VII prohibits workplace discrimination on the basis of race, color, national origin, sex, and religion. Since the 1980s, courts have also interpreted Title VII to prohibit harassment based on these characteristics. Title VII prohibits employers from retaliating against employees who complain of discrimination or otherwise assert their rights under the law.

The Pregnancy Discrimination Act. After a Supreme Court case in 1976 found that discriminating against pregnant women does not necessarily violate Title VII, Congress amended the law to clarify that pregnancy discrimination is a form of illegal sex discrimination.

The Equal Pay Act. The Equal Pay Act requires employers to pay men and women equally for doing equal work. Because the Equal Pay Act was passed before the Civil Rights Act of 1964 created the EEOC, it was originally enforced by the federal Department of Labor.

The Americans with Disabilities Act (ADA). The ADA protects employees and applicants with disabilities from discrimination. Employees and applicants are protected if they have a disability, have a record of disability, or are regarded by the employer - even incorrectly - as having a disability. The ADA also requires employers to provide reasonable accommodations to allow employees with disabilities to do their jobs.

The Age Discrimination in Employment Act (ADEA). The ADEA prohibits age discrimination against employees and applicants who are at least 40. The ADEA also requires equal benefits for older employees and requires employers to provide certain information to older employees when they are asked to waive their right to sue for age discrimination (as part of a severance package or early retirement program, for example).

The Genetic Information Nondiscrimination Act (GINA). GINA prohibits discrimination on the basis of genetic information. It also prohibits employers from gathering genetic information about employees in most circumstances, and requires them to keep any such information they acquire confidential.

The EEOC's Role

As the agency responsible for interpreting and enforcing these civil rights laws, the EEOC has a number of responsibilities.

Regulations and Guidance

When Congress passes a law prohibiting discrimination, the EEOC often issues regulations that interpret the law. The EEOC might also issue regulations when a law is amended or when important Supreme Court cases clarify the law. These regulations define important terms used in the statute, establish procedures for enforcing employee rights, and generally fill in the gaps left by Congress so both employees and employers are clear on their rights and obligations under the law.

Sometimes, the EEOC also issues enforcement guidance on specific issues, such as using criminal records in hiring or applying the ADA to employees with mental disabilities. These documents explain how the law works in the real world, typically using lots of examples to flesh out the details. When the EEOC is considering regulatory action or looking at developing civil rights issues, it often holds hearings and solicits public comments to inform its decision-making process.

Federal Employee Rights

The EEOC is also responsible for EEO compliance in the federal government. If a federal government employee wants to complain about discrimination, harassment, or retaliation, the employee must first file a complaint with the EEO office in the employee's own agency, which investigates and processes the complaint. The complaint may be heard - and a decision issued -- by an administrative law judge. If the employee isn't satisfied with the outcome, the employee can appeal to the EEOC's Office of Federal Operations.

Charge Processing

The primary way most employees encounter the EEOC is through its charge-handling function. The EEOC takes charges (complaints) of discrimination from employees and applicants. Filing a charge is a legal prerequisite to filing a lawsuit; employees who fail to complain to the EEOC (or a similar state agency) and give it an opportunity to process the charge won't be allowed to sue.

Once the EEOC receives a charge, it evaluates the employee's claims and decides how to proceed. Among the options:

The agency may dismiss the charge, if it concludes that it has no jurisdiction (for example, because the employee missed the deadline to file a charge or the employee's claims don't violate the law).

The EEOC may investigate the charge. The agency may interview witnesses, ask the employer and employee to provide information, gather documents, and even visit the workplace.

The EEOC may try to mediate a settlement of the case. In mediation, the employee and employer sit down together with a neutral third party to try to come up with a solution to the problem. If everyone agrees, the mediated settlement will resolve the case.

The agency may issue a finding, either that cause exists to believe discrimination took place or that no such cause exists.

The EEOC may decide to litigate the charge itself on behalf of the employee. This is exceedingly rare. Typically, the EEOC takes a case on only if it raises novel or important issues the agency wants to prosecute.

If the employee wants to go ahead with a lawsuit while the EEOC is still processing the charge, the employee may request a right to sue letter. (Even if the employee doesn't request one, the EEOC will issue a right to sue letter to the employee once it finishes processing the charge.) This aptly named document states that the employee has met the requirement of filing a charge and may proceed to court.

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The Equal Employment Opportunity Commission enforces federal laws prohibiting workplace discrimination. The Equal Employment Opportunity Commission (EEOC) is an agency of the federal government, created by the Civil Rights Act of 1964 (Title VII). The purpose of the EEOC is to interpret and enforce federal laws prohibiting discrimination.

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Centralization and Decentralization:  Most large businesses necessarily involve a degree of decentralization when it starts to operate from several locations or it adds new business units and markets.

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Functional Similarity Method: One person cannot be responsible for performing all of the activities that take place within an organization. Since so many people work in a given management system, organizing necessarily involves dividing job activities among a no. of individuals.

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Roles of Staff Personnel:
The manager acts as a bridge between senior management for translating higher-level strategies and goals into operating plans that drive the business.

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In two related articles, " What Does a Manager Do?" and " Why It's Time to Change Our Views on Management and the Job of the Manager, " we explore this changing and important role in-depth. In this article, we take a step back and focus on the fundamentals of the job of manager and why it is both critical to success in today's organizations and why it represents a viable career option.

The Manager's Role Inside the Organization

Organizations are hierarchies of titles.

The organizational chart or the structure of the company and the relationships of the jobs and responsibilities, from the top down, maybe CEO, Vice President, Director, then Manager, each of whom perform separate and critical functions, enabling the organization to function, meet its obligations and turn a profit.

The higher you climb in the organization's ranks, the further away you move from the day-to-day operations and work of the firm's employees. While the CEO and Vice-Presidents focus more of their efforts on issues of strategy, investment, and overall coordination, managers are directly involved with the individuals serving customers, producing and selling the firm's goods or services, and providing internal support to other groups.

Additionally, the manager acts as a bridge between senior management for translating higher-level strategies and goals into operating plans that drive the business.

The challenging role of the manager is accountable to senior executives for performance and to front-line employees for guidance, motivation, and support. It is common for managers to feel as if they are pulled between the demands of top leaders and the needs of the individuals performing the work of the firm.

The Work of the Manager

Have you ever witnessed the "plate spinner" at the circus? This is the individual who places a breakable dinner plate on a stick and starts it spinning. The entertainer repeats this task a dozen or more times, and then runs around and striving to keep all of the plates spinning without letting any crash to the floor. On many occasions, the role of manager feels a great deal like this "plate spinner." The manager's functions are many and varied, including:

Hiring and staffing.

Training new employees.

Coaching and developing existing employees.

Dealing with performance problems and terminations.

Supporting problem resolution and decision-making.

Conducting timely performance evaluations.

Translating corporate goals into functional and individual goals.

Monitoring performance and initiating action to strengthen results.

Monitoring and controlling expenses and budgets.

Tracking and reporting scorecard results to senior management.

Planning and goal-setting for future periods.

The daily work of the manager is filled with one-on-one or group interactions focused on operations. Many managers use early mornings or later evenings to complete their reports, catch-up on e-mail and update their task lists.

There is never a dull moment much less time for quiet contemplation in the lives of most managers.

Types of Managers

Managers are most often responsible for a particular function or department within the organization. From accounting to marketing, to sales, customer support, engineering, quality, and all other groups, a manager either lead a team directly or leads a group of supervisors who lead the teams.

In addition to the traditional role of departmental or functional manager, there are also product and project managers who are responsible for a set of activities or initiatives, often without any people reporting to them. These informal managers work across functions and recruit team members from the various groups for temporary and unique initiatives.

Span of Control

The phrase "span of control" relates to the number of individuals who report directly to any particular manager.

One of the trends of recent years has been to reduce the number of managers in an organization and increase the number of direct reports working for remaining managers.

A manager optimally has no more than six to eight direct reports, although many have ten or even twenty individuals they are responsible for on a daily basis. A smaller span of control enables increased support for training, coaching, and development. The larger span reduces the manager's effectiveness for supporting her direct reports.

Authority of the Manager

A manager may have the power to hire or fire employees or to promote them. In larger companies, a manager may only recommend such action to the next level of management. The manager has the authority to change the work assignments of team members.

Essential Skills of the Manager

Managers need to develop and hone the following skills:

Leadership-You've got to be able to set priorities and motivate your team members. This involves self-awareness, self-management, social awareness and relationship management. Be a source of energy, empathy, and trust. And remember that effective leaders work daily to develop team members through positive feedback, constructive feedback, and coaching.

Communication-Become a student of effective communication in all its applications, including one-on-one, small group, large group, email and social media. Realize that the most important aspect of communicating is listening.

Collaboration-Serve as a role model for working together. Support cross-functional efforts and model collaborative behaviors to set the example for your team members.

Critical Thinking-Strive to understand where and how your projects fit into the bigger picture to enhance your effectiveness. Review priorities in light of larger goals. Translate this understanding into meaningful goals and objectives for your team members.

Finance-Learn the language of numbers. Managers must strive to understand how company funds are invested and to ensure that these investments earn a good return for the firm. While you do not need to be an accountant to be a manager, it is imperative that you learn and apply the basics.

Project Management-Everything that we do that is new in an organization is created in the form of projects. Today's managers understand and leverage formal project management practices to ensure timely completion and proper control of initiatives.

The Bottom Line-A Career in Management

The work of management is divided into the activities around planning, leading, organizing and controlling, and the work of a manager encompasses all of these areas. Anyone aspiring to move into management as a career should develop and display strong technical and functional skills-become an expert in your discipline, and have a strong liking of interacting with, supporting and guiding others.

The best managers understand their role is about their team and their team's performance and not about themselves. They work hard to develop the skills identified above and they take great satisfaction in the successes of their team members. Do this effectively at a lower level and others will recognize your value and abilities and strive to increase your responsibilities over time. Management as a career is simultaneously challenging and exciting.

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Here Is a Look at the Role and Responsibilities of Today's Manager

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In two related articles, " What Does a Manager Do?" and " Why It's Time to Change Our Views on Management and the Job of the Manager, " we explore this changing and important role in-depth.

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Division of Labor: Breaking down work into simple repetitive tasks eliminates unnecessary motion and limits the handling of different tools and parts. The consequent reduction in production time and the ability to replace craftsmen with lower-paid unskilled workers result in lower production costs and a less expensive final product.

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If you're familiar with the term "divide and conquer," you're familiar with the concept of division of labor. Dividing labor among two or more workers or groups of workers enables a company to operate more quickly and efficiently because it makes it possible for the workers and teams to focus on specific components of an operation, rather than saddling them with multiple tasks. Although there are numerous advantages to dividing workplace labor, there are also disadvantages to this practice. More steps in an operational process mean more opportunities for one step to go wrong and delay the next step, creating a snowball effect that backs up the entire process.

TL;DR (Too Long; Didn't Read)

Division of labor isn't a one-size-fits-all arrangement. Look at ways other companies in your industry divide their labor to get ideas about how to effectively to split-up tasks among your workers.

Advantages of Division of Labor

Many of the advantages of dividing labor in your workplace are obvious. They include:

Saving time.

Giving each employee tasks that best suit her skills.

Increasing productivity.

Needing only one set of tools, rather than many, for the tasks at hand.

All of these advantages create one larger, more significant advantage: saving your company money by capitalizing on the economy of scale. When a company can create the same amount or more of its product or service in a shorter amount of time than it previously took to create the product, the product's cost to produce falls. The company can continue charging customers the same amount of money for the product, increasing its profit, or lower the price to entice new customers to buy the product or existing customers to buy more by bundling the product with others from the company.

There are other advantages to dividing labor, too. Dividing labor encourages the use of machines to complete simple tasks, which drives down production costs further. It also facilitates invention and innovation because workers who focus on the same task can learn the task intimately and develop new ways to do it faster, more easily or better.

Disadvantages of Division of Labor

Dividing labor can be a great strategy for your company, but there are disadvantages to doing so, too. These include:

Not developing workers' skills.

Division of responsibilities.

Creating a system of dependence.

Reduced worker mobility.

When every team only knows how to perform one task, workers' individual skills aren't always utilized to their fullest. Workers can also lose pride in their work because instead of being able to take ownership of a finished product, they only play a small role in creating that product. These workers can become demotivated and lazy, which can cause their work to suffer.

Dividing Labor Effectively

As a manager, one of your most important tasks is to determine an appropriate, effective way to break down the tasks your team needs to complete. Consider the advantages and disadvantages above to determine how many teams you will need to effectively complete the job, which team is best suited to each task and how to organize workflow so the teams' efforts complement each other and create a flow, rather than a series of holdups in a convoluted system.

About the Author

Lindsay Kramer has been a full-time writer since 2014. In that time, she's experienced the ups, downs and crazy twists life tends to take when you're launching, building and leading a small business. As a small business owner, her favorite aspect about writing in this field is helping other small business owners and aspiring entrepreneurs become more fluent in the terminology and concepts they face in this role. Previously, she's written on entrepreneurship for 99designs and covered business law topics for law firms.

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What Are the Advantages & Disadvantages of Division of Labor?

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Throughout human history, we have divided our labor to make it easier for all parties involved. In the workplace, there are advantages and disadvantages to dividing labor between employee teams, all of which affect workflow, the quality of the finished product, and the company's bottom line.

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Strategic planning is an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes/results, and assess and adjust the organization's direction in response to a changing environment.

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Managers make decisions affecting the organization daily and communicate those decisions to the other organization members. Types of Decisions:

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Essays, Research Papers and Articles on Business Management

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Programmed Decisions:

Decisions related to structured situations, where the problem is more or less routine and repetitive in nature are known as programmed decisions. For example, problems related to leave are solved by policy relating to leave rules. Employees who take leave according to leave rules Eire granted leave and those who do not follow the leave rules may not be granted leave. The routine problems may not always be simple.

There may be complex routine problems. For example, production department follows a routine that managers order for inventory when it reaches the re-order point. If there is sudden increase in demand for the product, managers cannot wait for inventory to reach the re-order point to make fresh orders. Orders are placed before this level is reached. Ordering inventory is, thus, a problem of routine nature but ordering inventory before the re-order point is a routine but complex problem.

In either situation, managers depend on pre-established criteria for taking decisions. Various policies, schedules and procedures guide these decisions and, therefore, policies and procedures should be as clear as possible. Since decisions are based on pre-defined standards, they do not require much of brainstorming and are taken normally by middle and lower-level managers.

Managers do not think of innovative ways to solve the routine problems. Therefore, they can concentrate on important and crucial activities. These decisions also involve some amount of certainty, i.e., outcomes of these decisions are, by and large, known.
Various types of programmed decisions are:
(1) Organisational decisions

(2) Operational decisions

(3) Research decisions, and

(4) Opportunity decisions.

Non-Programmed Decisions:

These decisions are taken in unstructured situations which reflect novel, ill-defined and complex problems. The problems are non-recurring or exceptional in nature. Since they have not occurred before, they require extensive brainstorming. Managers use skills and subjective judgment to solve the problems through scientific analysis and logical reasoning.

Subjective judgment is based on assessment of the situation. In objective judgment (in case of programmed decisions), past experience forms the basis for decision-making. These decisions involve fair degree of uncertainty since outcomes of decisions are not always known. These decisions are based on partial ignorance as the alternatives and their outcomes cannot be known in advance. They are taken in the context of changing, dynamic environmental conditions.

For example, increase in advertising expenditure, effective salesmanship, upgraded technology, quality controls, brand image and reasonable prices are expected to increase sales and profits. If, despite all this, profits are declining, it requires immediate decision-making and such decisions are non-programmed decisions.

These decisions are taken by top-level managers. As we move up the organisational hierarchy, the need for taking non-programmed decisions increases.
Different types of non-programmed decisions are:
(1) Personal decisions,

(2) Strategic decisions,

(3) Crisis intuitive decisions, and

(4) Problem-solving decisions.

There is no clear line of demarcation between programmed and non-programmed decisions. Decisions are neither totally programmed nor non-programmed. They are a combination of both and lie on continuum of decision; between totally programmed decisions at one end of the continuum and totally non-programmed decisions at the other end.
A brief description of different types of programmed and non-programmed decisions is given below: 1. Organisational and personal decisions:
These decisions reflect use of authority. Decisions taken in interest of the organisation are organisational decisions and decisions taken for personal interests are personal decisions. Organisational decisions can be delegated but personal decisions cannot.

Managers are officially authorised to make organisational decisions but they do not have authority to make personal decisions. They are based on personal biases. For example, firing an employee because he does not conform to rules is an organisational decision but firing due to personal enmity is a personal decision.
2. Operational and strategic decisions:
These decisions reflect scope of decision-making processes. Operational decisions are taken as a matter of routine. They relate to daily operations and aim to achieve short-term objectives of the firm. They are taken by middle and lower- level managers within the framework of policies and procedures and allow limited use of discretion by managers. Their impact is also limited and short-range in nature.

These decisions affect part of the organisation and are based on pre-defined policies and procedures. For instance, purchase of stationery and raw material are day-to-day decisions which affect only the purchase department and are taken according to pre-defined procedures defined for the purchase department.

Decisions related to important and non-recurring problems are called strategic decisions. Managerial skill and judgment are used to make these decisions. They relate to long-term goals of the company, define relationship of the organisation with the environment and are risky in nature. They are taken by top-level managers. Decisions to update the technology, launch a new plant or change the policies are strategic decisions.
Strategic decisions involve three important elements: (a) Result element: (b) Action element: (c) Commitment element: 3. Research and crisis-intuitive decisions: 4. Opportunity and problem-solving decisions:
These decisions affect the whole or major part of the organisation and contribute directly to organisational objectives. They are usually not based on past experience and involve a major departure from earlier business practices regarding various business decisions like expansion of business in international markets, diversification, change in marketing mix etc.

It specifies the result (objective) to be achieved through the decision.

It specifies the action to be taken to achieve the result.

It specifies the dedication, loyalty and commitment with which people who are responsible for taking action to achieve results are involved in making the decisions.

These decisions reflect urgency of decision-making. Decisions which involve regular survey of the market are research decisions and decisions made under situations of crisis or emergency are crisis - intuitive decisions. For example, decision to allocate funds to Research and Development for product designing is a research decision; decision to increase production of medicines because of earthquake or war is a crisis-intuitive decision.

These decisions reflect foresightedness. Managers forecast opportunities to promote organisational growth. The decision to grow and diversify (market penetration and market development) is an opportunity decision.

Problem-solving decision solves a specific problem. For example, decision to enter into new markets even when the company is making profits in the existing market is an opportunity decision and decision to drop a product line because it is unprofitable is a problem-solving decision.

(Market penetration increases sale of existing products to the existing and new customers in the existing markets and market development increases sale by entering into new markets with same products or products with minor modifications).

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Types of Decisions: Programmed and Non-Programmed

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After reading this article you will learn about the programmed and non-programmed decisions. Programmed Decisions: Decisions related to structured situations, where the problem is more or less routine and repetitive in nature are known as programmed decisions. For example, problems related to leave are solved by policy relating to leave rules.

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Single-use plan is used only once because it focuses on unique or rare situations within the organization.

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Standing Plan is used to focus on organizational situations that occur repeatedly.

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Asian-Pacific Economic Cooperation (APEC) was established in 1989 to further the economic growth and prosperity of the Asian-Pacific community with 21 members, including Canada, the People's Republic of China Indonesia, and US.

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Public Urges Economic Integration to Address Global Challenges: Report

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North American Free Trade Agreement (NAFTA) is an international market agreement aimed at facilitating trade among member nations; Include the US, Canada, and Mexico.

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The European Union (EU) is an international market agreement (est.1994), that is dedicated to facilitating trade among member nations; include Denmark, UK, Portugal, Netherlands, Belgium, Spain, Ireland, Luxembourg, France, Germany, Italy, and Greece.

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The European Union is a unified trade and monetary body of 27 member countries.﻿ It eliminates all border controls between members. The open border allows the free flow of goods and people. There may be police checks, based on police information and experience, that are not equivalent to border checks.﻿﻿

Any product manufactured in one EU country can be sold to any other member without tariffs or duties.﻿﻿ Practitioners of most services, such as law, medicine, tourism, banking, and insurance, can operate a business in all member countries.﻿﻿

The EU's purpose is to be more competitive in the global marketplace. At the same time, it must balance the needs of its independent fiscal and political members.

Its 27 member countries are Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.﻿﻿

How It Is Governed

Three bodies run the EU. The EU Council represents national governments. The Parliament is elected by the people. The European Commission is the EU staff. They make sure all members act consistently in regional, agricultural, and social policies. Contributions of 120 billion euros a year from member states fund the EU.

Here's how the three bodies uphold the laws governing the EU. These are spelled out in a series of treaties and supporting regulations:﻿﻿

1. The European Commission proposes new legislation. The commissioners serve a five-year term.﻿﻿

2. The European Parliament gets the first read of all laws the Commission proposes. Its members are elected every five years.﻿﻿

3. The European Council gets the second read on all laws and can accept the Parliament's position, thus adopting the law. The council is made up of the Union's 27 heads of state, plus a president.﻿﻿

The euro is the common currency for the EU area. It is the second most commonly held currency in the world, after the U.S. dollar. It replaced the Italian lira, the French franc, and the German Deutschmark, among others.﻿﻿

The value of the euro is free-floating instead of a fixed exchange rate.﻿﻿ As a result, foreign exchange traders determine its value each day. The most widely-watched value is how much the euro's value is compared to the U.S. dollar.﻿﻿ The dollar is the unofficial world currency.﻿﻿

The Difference Between the Eurozone and the EU

The eurozone consists of all countries that use the euro. All EU members pledge to convert to the euro, but only 19 have so far. They are Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, and Spain.﻿﻿

The European Central Bank is the EU's central bank. It sets monetary policy and manages bank lending rates and foreign exchange reserves. Its target inflation rate is less than 2%.﻿﻿

The Schengen Area

The Schengen Area guarantees free movement to those legally residing within its boundaries. Residents and visitors can cross borders without getting visas or showing their passports.﻿﻿

In total, there are 26 members of the Schengen Area. They are Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and Switzerland.

One EU country, Ireland has declined the Schengen benefits. Four non-EU countries, Iceland, Liechtenstein, Norway, and Switzerland have adopted the Schengen Agreement. Three territories are special members of the EU and part of the Schengen Area: the Azores, Madeira, and the Canary Islands. Three countries have open borders with the Schengen Area: Monaco, San Marino, and Vatican City.﻿﻿

This chart shows which countries are members of the EU, the eurozone, and the Schengen Area:

In 1950, the concept of a European trade area was first established. The European Coal and Steel Community had six founding members: Belgium, France, Germany, Italy, Luxembourg, and the Netherlands.

In 1957, the Treaty of Rome established a common market. It eliminated customs duties in 1968. It put in place standard policies, particularly in trade and agriculture. In 1973, the ECSC added Denmark, Ireland, and the United Kingdom. It created its first Parliament in 1979. Greece joined in 1981, followed by Spain and Portugal in 1986.

In 1993, the Treaty of Maastricht established the European Union common market. Two years later, the EU added Austria, Sweden, and Finland.﻿﻿ In 2004, twelve more countries joined: Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia. Bulgaria and Romania joined in 2007.﻿﻿

In 2009, the Treaty of Lisbon increased the powers of the European Parliament. It gave the EU the legal authority to negotiate and sign international treaties. It increased EU powers, border control, immigration, judicial cooperation in civil and criminal matters, and police cooperation. It abandoned the idea of a European Constitution. European law is still established by international treaties.﻿﻿

The EU's trade structure has propelled it to become the world's second-largest economy after China. In 2018, its gross domestic product was $22 trillion, while China's was $25.3 trillion.

These measurements use purchasing power parity to account for the discrepancy between each country's standard of living. The United States was third, producing $20.5 trillion.﻿﻿

The EU's top three exports in 2018 were petroleum, medication, and automobiles; while its top imports are petroleum, communications equipment, and natural gas.

Its top export partner is the United States and its top import partner is China.﻿﻿

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How Europe Became an Economic Powerhouse

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The European Union is a unified trade and monetary body of 27 member countries.﻿ It eliminates all border controls between members. The open border allows the free flow of goods and people.

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International management involves understanding international economics, leading change in international corporations and creating global business strategies

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A company who embraces diversity will attract a wider range of candidates to their vacancies, as it will be viewed as a more progressive organization and will appeal to individuals from all walks of life.

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The Importance of Diversity In The Workplace

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Sustainability: Forward-thinking revolving around creating new products that, in the long run, will improve society's ills. There are ethical and obligatory duties that every human (and also that of a corporation) has to society.

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Business Ethics: Corporate Social Responsibility

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Social Responsibility is the managerial obligation to take actions that protects and improves both the welfare of society as a whole and the interests of the organization. An organization who also strive to accomplish social responsibility helps increase consumer trust and loyalty.

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What is corporate social responsibility?

Corporate social responsibility is a type of business self-regulation with the aim of social accountability and making a positive impact on society. Some ways that a company can embrace CSR include being environmentally friendly and eco-conscious; promoting equality, diversity, and inclusion in the workplace; treating employees with respect; giving back to the community; and ensuring business decisions are ethical.

CSR evolved from the voluntary choices of individual companies to mandatory regulations at regional, national and international levels. However, many companies choose to go beyond the legal requirements and embed the idea of "doing good" into their business models.

There is no one way a company can embrace CSR, but one thing is certain - to be perceived as genuine, the company's practices need to be integrated into its culture and business operations. In today's socially conscious environment, employees and customers place a premium on working for and spending their money on businesses that prioritize CSR. They can detect corporate hypocrisy.

To ensure CSR authenticity, a company should look at its values, business mission and core issues and determine which initiatives best align with the business's goals and culture. The business can do this internally or hire a third party to conduct an assessment.

Reviewing the United Nations 17 Sustainable Development Goals is a good place to start. While goals like Good Health and Well-Being or Gender Equality can apply to most businesses, specific goals like Life Below Water or Affordable and Clean Energy may be relevant to select industries like water technology or energy providers.

Why CSR is important

There are many reasons for a company to embrace CSR practices.

1. It improves customers' perception of your brand.

It's increasingly important for companies to have a socially conscious image. Consumers, employees, and stakeholders prioritize CSR when choosing a brand or company, and they hold corporations accountable for effecting social change with their beliefs, practices, and profits.

"What the public thinks of your company is critical to its success," said Katie Schmidt, founder and lead designer of Passion Lilie. "By building a positive image that you believe in, you can make a name for your company as being socially conscious."

To stand out among the competition, your company needs to prove to the public that it is a force for good. Advocating and raising awareness for socially important causes is an excellent way for your business to stay top-of-mind and increase brand value.

The Kantar Purpose 2020 study demonstrated a direct correlation between perceived positive impact and brand value growth. Companies that the public considers highly impactful demonstrated a brand value growth of 175% over 12 years, while businesses with a low positive impact showed only 70% growth.

Schmidt also said that sustainable development could help a business financially. For example, using less packaging and less energy can reduce production costs.

2. It attracts and retains employees.

Consumers aren't the only ones drawn to businesses that give back. Susan Cooney, head of global diversity and inclusion at Symantec, said that sustainability strategy is a big factor in where today's top talent chooses to work.

"The next generation of employees is seeking out employers that are focused on the triple bottom line: people, planet and revenue," she said. "Coming out of the recession, corporate revenue has been getting stronger. Companies are encouraged to put that increased profit into programs that give back."

According to Deloitte's 2021 Millennial and Gen Z Survey, the modern workforce prioritizes culture, diversity, and high impact over financial benefits. An estimated 44% of millennials and 49% of Gen Zers rely on their personal ethics in determining the type of work and companies they'd join. The respondents of the Porter Novelli Purpose Tracker 2021 report go even further, with 70% saying they wouldn't work for a company without a strong purpose.

What's more, employees that share the company's values and can relate to its CSR initiatives are much more likely to stay. Deloitte's 2020 Global Marketing Trends Report shows that purpose-driven companies retain talent up to 40% more than their competitors. Considering that the estimated cost of losing an employee averages 40% of their annual salary, according to a report by the Washington Center for Equitable Growth, offering your team a sense of purpose and meaning in their work is worth the effort.

3. It increases your appeal to investors.

By demonstrating a developed CSR program and initiatives, your company is bound to become more appealing to both current and future investors. CECP's influential 2021 Giving in Numbers report shows that investors play a growing role as key stakeholders in corporate social responsibility. Almost 80% of surveyed businesses were open to providing them with data and considering their perspectives on sustainability. Just like customers, investors are holding businesses accountable when it comes to social responsibility.

At the same time, a company that takes CSR seriously signals to both investors and partners that it's interested in long-term as well as short-term gain. CSR goes hand in hand with environmental, social, and governance (ESG) metrics that help external analysts quantify the company's social efforts, and becomes a key factor for investors' consideration and continued interest.

4 types of corporate responsibility your business can practice

In recognition of how important socially responsible efforts are to their customers, employees and stakeholders, many companies focus on four broad CSR categories.

1. Environmental efforts: One primary focus of CSR is the environment. Businesses have large carbon footprints, regardless of size. Any steps a company can take to reduce its footprint is considered good for both the company and society.

2. Philanthropy: Businesses can practice social responsibility by donating money, products or services to social causes and nonprofits. Larger companies tend to have plentiful resources that can benefit charities and local community programs; however, even as a small business, your efforts can make a difference. If you have a specific charity or program in mind, reach out to the organization. Ask them about their specific needs and whether a donation of money, time or your company's products would best help them.

3. Ethical labor practices: Companies can demonstrate CSR by treating employees fairly and ethically. This is especially true of businesses that operate in international locations with labor laws that differ from those in the U. S.

4. Volunteering: Participating in local causes or volunteering your time (and your staff's time) to community events says a lot about your company's sincerity. When your company does good deeds without expecting anything in return, you express concern (and support) for specific issues and social causes.

Building a socially responsible business

While startups and small companies don't have the deep financial pockets that enterprises have, their efforts can have a significant impact, especially in their local communities.

"Even 5%, though it might not sound like a lot, can add up to make a difference," Schmidt said. "When thinking of ways to donate and give back, start local, and then move from there."

When identifying and launching a CSR initiative, involve your employees in the decision-making process. Create an internal team to spearhead the efforts and identify organizations or causes related to your business or that employees feel strongly about. You'll increase engagement and success when you contribute to something that matters to your employees. Involving your employees in the decision-making process can also bring clarity and assurance to your team.

"If decisions [about CSR] are made behind closed doors, people will wonder if there are strings attached and if the donations are really going where they say," Cooney said. " Engage your employees [and consumers] in giving back. Let them feel like they have a voice."

Whichever strategies you use for sustainable development, be vocal. Let your consumers know what you are doing to be socially conscious. [Related read: PayPal's Mission for Corporate Social Responsibility]

"Consumers deserve to share in the good feelings associated with doing the right thing, and many surveys have found that consumers are inclined to purchase a sustainable product over a conventional alternative," Cooney said. "Announcing these benefits is a win-win from both a commercial and sustainability perspective."

What to avoid when creating a socially responsible business model

Becoming a socially responsible business can be simple, but there are a few caveats.

1. Don't choose unrelated initiatives.

Avoid participating in charitable efforts that are not related to your core business focus or that violate your company's ethical standards in any way. Instead of blindly sending money to a completely unrelated organization, find a nonprofit that your company believes in or invest in a project in your community.

2. Don't use CSR as a marketing scheme.

Don't use CSR opportunities solely for marketing purposes. Schmidt said running a corporate responsibility campaign as a quick marketing scheme can backfire if your business doesn't follow through. Instead of trying a one-time stunt, adopt socially responsible business practices over time. Schmidt said employees and consumers react positively to companies that embrace long-term social responsibility.

3. Don't wait for the industry to catch up.

If you are considering sustainable activities that aren't legally required yet, don't wait. By adopting socially responsible norms early on, you set the bar for your industry and refine your process. [Related read: 14 Examples of Socially Responsible Businesses]

Undertaking CSR initiatives is a win for everyone involved. The impact of your actions will not only appeal to socially conscious consumers and employees, but can also make a real difference in the world.

CSR certifications

While many companies self-assess their CSR efforts, often the most practical and trusted way to prove your company's social accountability to the public is to undergo a third-party social impact assessment.

These three corporate social responsibility certifications can help you achieve public recognition for your sustainability and CSR efforts.

B-corp certification

Certified B corporations, or B-corps, are companies verified by B Lab to meet high standards of social and environmental performance, accountability, and transparency. To become a B-corp, a company must undergo a rigorous and holistic verification process every three years, integrate B-corp commitments to all stakeholders (rather than only shareholders) into its governing documents, and pay a sales-based annual fee.

While B-corp status is mainly associated with multinationals like Patagonia or Ben & Jerry's, small businesses and startups that strive for social and environmental excellence can also receive this CSR certification. The first step is to complete the free and confidential B Impact Assessment on the B Lab website and receive a minimum score of 80. If you meet the baseline, you can submit the impact assessment for review and start the verification process.

ISEAL code compliance

ISEAL Alliance is a global membership organization for credible sustainability standards whose members include Fairtrade International, Gold Standard, Alliance for Water Stewardship and more. An assessment from ISEAL is carried out by an independent third-party verification provider that determines whether a business meets Codes of Good Practice and can be deemed ISEAL Code Compliant. This assessment offers a reputable seal of approval for companies that emphasize sustainability.

In some circumstances, verifications from ISEAL members can directly impact business continuity. For example, the absence of a certification from the Roundtable for Sustainable Palm Oil can effectively close down a supply chain for some consumer brands.

SASB standards

The Sustainability Accounting Standards Board is one of the most established environmental, social, and governance (ESG) guidance frameworks, providing standards for disclosing the financial impact of a company's sustainability efforts. In other words, it allows businesses to communicate the financial outcomes of their CSR and ESG measures to investors and other stakeholders.

SASB Standards are evidence-based, cost-effective, market-informed, and industry-specific, covering 77 industries. These standards help produce structured, comparable, and standardized data that is perfect for both internal and external communications of CSR and ESG impacts.

Examples of CSR companies

If you're looking for CSR inspiration for your business, here are six companies practicing corporate social responsibility on a large scale.

LEGO: The toy company has invested millions of dollars into addressing climate change and reducing waste. LEGO's environmentally conscious efforts include reduced packaging, sustainable materials, and investments in alternative energy.

TOMS: TOMS donates one-third of its net profits to charities that support physical and mental health as well as educational opportunities. During the pandemic, the brand directed all charitable donations to the TOMS COVID-19 Global Giving Fund.

Johnson & Johnson: The brand Johnson & Johnson focuses on reducing its environmental impact by investing in alternative energy sources. Globally, Johnson & Johnson also works to provide clean, safe water to communities.

Starbucks: The global coffee chain has implemented a socially responsible hiring process to diversify its workforce. Its efforts are focused on hiring more veterans, young people looking to start their careers, and refugees.

Google: Google has demonstrated its commitment to the environment by investing in renewable energy sources and sustainable offices. CEO Sundar Pichai is also known to take stands on certain social issues.

Pfizer: The pharmaceutical company's focus on corporate citizenship is reflected in its healthcare initiatives, which include spreading awareness about non-infectious diseases and providing accessible health services to women and children in need.

Corporate social responsibility FAQs

Corporate social responsibility is a modern approach to running a business. Here are some of the most frequently asked questions about it.

What is corporate social responsibility (CSR)?

Corporate social responsibility is a way of describing how companies measure and control their impact on society. This includes a company's contributions - both positive and negative - to the economy, environment and greater community.

Who is CSR for?

Businesses of all sizes can choose to introduce a comprehensive CSR program or selected initiatives and reap the associated benefits. No matter the size or maturity of your business, an investment in ethical behavior and sustainable practices can improve your brand value, build customer trust, grow your company, and improve the bottom line.

What are the benefits of CSR for companies?

CSR can be beneficial to a company in several ways. The first is by improving its brand image. When customers or clients see evidence that a business is socially responsible, they tend to respond positively.

The second benefit is improving employee morale. Morale tends to be higher at companies that invest effort and resources into ethical and socially responsible behavior.

The third involves appealing to new talent. Modern employees often choose purpose-driven and environmentally conscious companies over financial benefits.

Lastly, CSR-active companies attract investors and partners. A company that is willing to invest in long-term policies and improvements offers security to potential investors.

What are examples of CSR initiatives?

Some examples of CSR components are reducing carbon footprint and energy consumption, engaging in wildlife conservation initiatives, encouraging charity and volunteer work, supporting local communities, improving labor policies, ensuring diversity and equality in the workplace, investing in nonprofit organizations, and guaranteeing ethically sourced materials.

Whichever practices you employ, make sure they are authentic and match your corporate values. Otherwise, your business might be accused of greenwashing.

How do you monitor CSR?

There are a few key ways to measure CSR. The first is to break CSR goals into categories, such as philanthropy, labor practices, and environmental efforts.

To track the success of these investments, look for measurable key performance indicators. How much has your company's carbon footprint changed? How many people did you reach with a charitable effort? Monitor new developments and keep a pulse on general public perception of issues associated with your company's social causes.
Skye Schooley, Nicole Fallon and Sammi Caramela contributed to the writing and reporting in this article. Source interviews were conducted for a previous version of this article.

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What Is Corporate Social Responsibility (CSR)?

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Corporate social responsibility is imperative for businesses that want to appeal to modern consumers. Learn what it is and how to maintain it.

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Management skills are needed for an organization's success. Such abilities are essential to be an effective leader and to achieve the organization's objectives.

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What are Management Skills?

Management skills can be defined as certain attributes or abilities that an executive should possess in order to fulfill specific tasks in an organization. They include the capacity to perform executive duties in an organization Corporate Structure while avoiding crisis situations and promptly solving problems when they occur. Management skills can be developed through and practical experience as a manager. The skills help the manager to relate with their fellow co-workers and know how to deal well with their subordinates, which allows for the easy flow of activities in the organization.

Good management skills are vital for any organization to succeed and achieve its goals and objectives. A manager who fosters good management skills is able to propel the company's mission and or business goals forward with fewer hurdles and objections from internal and external sources.

Management and leadership skills are often used interchangeably as they both involve planning, decision-making, problem-solving, communication, delegation, and . Good managers are almost always good leaders as well.

In addition to leading, a critical role of a manager is to also ensure that all parts of the organization are functioning cohesively. Without such integration, several issues can arise and failure is bound to happen. Management skills are crucial for various positions and at different levels of a company, from top leadership to intermediate supervisors to first-level managers.

Types of Management Skills

According to American social and organizational psychologist Robert Katz, the three basic types of management skills include:

1. Technical Skills

Technical skills involve skills that give the managers the ability and the knowledge to use a variety of techniques to achieve their objectives. These skills not only involve operating machines and software, production tools, and pieces of equipment but also the skills needed to boost sales, design different types of products and services, and market the services and the products.

2. Conceptual Skills

These involve the skills managers present in terms of the knowledge and ability for abstract thinking and formulating ideas. The manager is able to see an entire concept, analyze and diagnose a problem, and find creative solutions. This helps the manager to effectively predict hurdles their department or the business as a whole may face.

3. Human or Interpersonal Skills

The human or the interpersonal skills are the skills that present the managers' ability to interact, work or relate effectively with people. These skills enable the managers to make use of human potential in the company and motivate the employees for better results.

Examples of Management Skills

There is a wide range of skills that management should possess to run an organization effectively and efficiently. The following are six essential management skills that any manager ought to possess for them to perform their duties:

1. Planning

Planning is a vital aspect within an organization. It refers to one's ability to organize activities in line with set guidelines while still remaining within the limits of the available resources such as time, money, and labor. It is also the process of formulating a set of actions or one or more strategies to pursue and achieve certain goals or objectives with the available resources.

The planning process includes identifying and setting achievable goals, developing necessary strategies, and outlining the tasks and schedules on how to achieve the set goals. Without a good plan, little can be achieved.

2. Communication

Possessing great communication skills is crucial for a manager. It can determine how well information is shared throughout a team, ensuring that the group acts as a unified workforce. How well a manager communicates with the rest of his/her team also determines how well outlined procedures can be followed, how well the tasks and activities can be completed, and thus, how successful an organization will be.

Communication involves the flow of information within the organization, whether formal or informal, verbal or written, vertical or horizontal, and it facilitates smooth functioning of the organization. Clearly established communication channels in an organization allow the manager to collaborate with the team, prevent conflicts, and resolve issues as they arise. A manager with good communication skills can relate well with the employees and thus, be able to achieve the company's set goals and objectives easily.

3. Decision-making

Another vital management skill is decision-making. Managers make numerous decisions, whether knowingly or not, and making decisions is a key component in a manager's success. Making proper and right decisions results in the success of the organization, while poor or bad decisions may lead to failure or poor performance.

For the organization to run effectively and smoothly, clear and right decisions should be made. A manager must be accountable for every decision that they make and also be willing to take responsibility for the results of their decisions. A good manager needs to possess great decision-making skills, as it often dictates his/her success in achieving organizational objectives.

4. Delegation

Delegation is another key management skill. Delegation is the act of passing on work-related tasks and/or authorities to other employees or subordinates. It involves the process of allowing your tasks or those of your employees to be reassigned or reallocated to other employees depending on current workloads. A manager with good delegation skills is able to effectively and efficiently reassign tasks and give authority to the right employees. When delegation is carried out effectively, it helps facilitate efficient task completion.

Delegation helps the manager to avoid wastage of time, optimizes productivity, and ensures responsibility and accountability on the part of employees. Every manager must have good delegation abilities to achieve optimal results and accomplish the required productivity results.

5. Problem-solving

Problem-solving is another essential skill. A good manager must have the ability to tackle and solve the frequent problems that can arise in a typical workday. Problem-solving in management involves identifying a certain problem or situation and then finding the best way to handle the problem and get the best solution. It is the ability to sort things out even when the prevailing conditions are not right. When it is clear that a manager has great problem-solving skills, it differentiates him/her from the rest of the team and gives subordinates confidence in his/her managerial skills.

6. Motivating

The ability to motivate is another important skill in an organization. Motivation helps bring forth a desired behavior or response from the employees or certain stakeholders. There are numerous motivation tactics that managers can use, and choosing the right ones can depend on characteristics such as company and team culture, team personalities, and more. There are two primary types of motivation that a manager can use. These are intrinsic and extrinsic motivation.

Bottom Line

Management skills are a collection of abilities that include things such as business planning, decision-making, problem-solving, communication, delegation, and time management. While different roles and organizations require the use of various skill sets, management skills help a professional stand out and excel no matter what their level. In top management, these skills are essential to run an organization well and achieve desired business objectives.

Additional Resources

Thank you for reading CFI's guide to management skills. CFI is a leading provider of for finance professionals. To continue learning and advancing your career, the additional resources below will be helpful:

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Management Skills - Types and Examples of Management Skills

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Management skills can be defined as certain attributes or abilities that an executive should possess in order to fulfill specific tasks in an organization. They include the capacity to perform executive duties in an organization Corporate Structure while avoiding crisis situations and promptly solving problems when they occur.