Skills Of A Manager Three Essential Skills Or Competencies Business Essay

A manager's job is varied and complex. Managers need certain skills to perform the duties and activities associated with being a manager

A mark of your good leader is usually to be in a position to provide steady motivation to his team encouraging them to realize excellence and quality in their performance. An excellent leader is obviously looking for ways to improve production and standards. Listed below are six management skills you can develop as a leader in working to create an excellent effective team

The three essential skills or competencies are:

1. Technical skills -

involve process or technique knowledge and proficiency in a certain specialized field, such as engineering, computers, accounting, or manufacturing. These skills are definitely more important at lower levels of management since these managers are dealing with employees doing the organization's work.

The technical skill involves the manager's knowledge of the type of job that people under him have to execute. It refers to a person's knowledge and proficiency in any kind of process or technique. In a very production department, this might mean a knowledge of the technicalities of the process of production. Whereas this kind of skill and competence seems to be more important at the lower degrees of management, its relative importance as a part of the managerial role diminishes as the manager moves to raised positions. In higher functional positions, including the position of a marketing manager or production manager, the conceptual component, related to these functional areas becomes more important and the technical component becomes less important and the technical component becomes less important.

2. Human Skills -

involve the ability to interact effectively with people. Managers interact and cooperate with employees. Because managers deal directly with people, this skill is vital. Managers with good human skills re bale to get best out of their people. They learn how to communicate, motivate, lead, and inspire enthusiasm and trust. These skills are equally important whatsoever degrees of management.

Human skills are also the capability to interact effectively with people at all levels. This skill develops in the manager sufficient ability.

a) To recognize the feelings and sentiments of others

b) To guage the possible reactions to, and outcomes of varied courses of action he might undertake and

c) To examine his own concepts and values this may enable him to develop more useful attitudes about himself.

3. Conceptual Skills-

involve the formulation of ideas, conceptualization about abstract and complex situations. Managers understand abstract relationships, develop ideas and solve problems creatively. Using these skills, managers must have the ability to start to see the organization all together. They need to understand the relationships among various subunits, and visualize how organization fits into its border environment. These skills are most significant at the very top management levels.

Conceptual skills make reference to the ability of a manager to have a broad and farsighted view of the organization and its own future, his ability to believe in abstract, his ability to analyze the forces employed in a predicament, his creative and innovative ability and his ability to assess the surroundings and the changes occurring in it. In a nutshell, it is his ability to conceptualize the surroundings, the organization, and his won job, so that he can set appropriate goals for his organization, for himself as well as for his team. This skill seems to upsurge in importance as a manager move up to higher positions of responsibility in the organization. Thus, technical skill handles things, human skills concerns people, and conceptual-skill has to do with ideas.

A manager is responsible for the successful implementation of management skills. An excellent manager must adhere to the essential management principles and exhibit the essential management skills in his/her personality.

Basic Management Skills

1. Leadership:

This is one of the most important management skills. Leadership comprises of the efficient organization of the resources in attaining a business goal. Leadership involves the management of human resources with an assessment of the strengths and weaknesses of every person in the team. It is about leading people and guiding them for the accomplishment of an common goal. Leadership includes a just allocation of work to the resources, planning of the implementation of tasks assigned and helping the team with task completion.

2. Team Building:

This is another basic management skill that includes dealing with people, the most important asset of a business. Encouraging the team members to speak up, produce ideas and permitting them to make mistakes and learn from them can be described as a team building skill. To build a team, one must foster the team spirit in all of the team members. For the team to feel motivated to work, it's important for a manager to cater to their expectations, recognize their strengths and understand where they lack. The building of an team is approximately building the team spirit in members and maintaining it. The skill lies in knowing the team and encouraging them to take initiative and enthusiastically participate in every venture of the company.

3. Communication and Presentation Skills:

After having achieved the knowledge of a certain domain and on having imbibed the technical skills and moreover self-confidence needed to be a manager, what one may lack are the soft skills, that happen to be equally important in general management. The soft skills encompass the communication and presentation skills. A manager should be open to his/her team. A manager can accept constructive criticism. It's important for the manager to communicate his/her plans to the team and accept the team members' inputs on the plan of action. Communication is a two-way activity and for it to remain so, a manager needs to have listening skills. They help a manager understand his/her associates, invite their participation and earn their regard. Good presentation skills help a manager impressively talk to the team. 'How you communicate?' is really as important as 'what you communicate?'

So, the presentation skills definitely matter.

4. Decision-making Skill:

Many a time, quick decisions have to be made. In such cases it becomes necessary for a manager to grasp the situation, think about what can be done and thoughtfully analyze the consequences of the decision to be produced. A problem-solving approach is also considered as one of the essential management skills. To check out a situation analytically, one needs to bear a problem-solving approach. One must reason every consequence and produce the pros and cons of your choice. A manager must be a quick thinker. When planning on taking the right decision, one cannot afford to panic. You have to keep his/her cool, be familiar with the results of the decisions and be prepared on their behalf. A manager can get opportunities to celebrate a business success. But it is equally probable that a manager is forced to take care of the consequences of a wrong decision. Hence although it is necessary to tell apart between your 'right' and the 'wrong', it is also necessary to be ready to simply accept the 'wrongs' and deal with them.

In short management skills are about making the right decisions and getting them executed by the right people. Thus, management skills are indeed all those things that effective management professionals do!

Management Skills

A Manager must utilize skills to effectively organize the team, to achieve an effective goal, in the least amount of time, and cost. Management skills are learned in school, by experience, and information gathered from

employees that caused managers. A manager knows how to lead the team, but never be a


Listed here are management skills

Recruit and Interview:

Managers recruit and interview the best applicants for the business. Matching the training, experience, and knowledge, for a specific job. Letting each candidate know, what are the expectations, and acquiring any suggestions.


Organizing the team to achieve a specific goal. Delegating each team member, to a assigned task. Remembering, to never over extend obligations to 1 person. Always, getting the confidence and giving respect to each member.


Managing a budget is critically very important to the financial integrity of any project. Under budgeting a project, may undermine the capability to obtain the project done on time or failure. Owning a project that is under budget, certainly is most desirable for the price savings.


Managers can motivate their staff by praise and incentives, to make a friendly working environment, and having diligent employees, that are less likely to resign.


Managers should uphold business ethics. Disregarding ethical standards can ruin the trustworthiness of a manager and the increased loss of respect earned from his employees, and clients. Ethics can be learned, but honesty comes from the heart


Each year, thousands of folks make the switch from staff engineer or scientist to manager. And, although some of us anticipate the change, we find it frustrating once we get there. Whenever we were engineers, we were rewarded for our technical skills and labors in direct proportion to what we accomplished.

But now, as a manager, our success is measured not by our own output hut by the output and productivity of folks we supervise. And that sense of not being in direct control can be considered a frustrating feeling.

Fortunately, working with others and getting them to offer their finest can be in the same way rewarding as technical accomplishments. . . once you get the hang from it. Listed below are eight tips that will help you to manage and to guide your people more effectively.

The Human Touch

The most valuable qualities you can develop within yourself are patience, kindness, and consideration for other folks. Although machines and chemicals don't care whether you scream and curse at them, people do.

Your subordinates are not just engineers, scientists, administrators, clerks, and programmers they're people, first of all. People with families and friends, likes and dislikes. People who have feelings. Respect them as people and you will get their respect and loyalty in exchange. But treat them coldly and impersonally and they will lose motivation to perform for you.

Corny as it sounds, the Golden Rule "Do unto others as you'll have others do unto you'' ˜is a sound, proven management principle. The next time you're going to discipline an employee or voice your displeasure, consider, "Would I like to be spoken to the way I'm thinking about speaking to him or her?'' Give your people the same kindness and consideration that you would want to receive if you were in their place.

Don't Be Overly Critical

As a manager, it's part of your task to keep your people on the right track. And that involves pointing out errors and telling them where they've gone wrong.

But some managers are overly critical. They're unhappy unless they can be criticizing. They rarely accomplish much or undertake anything new themselves, however they are only too happy to tell others where they went wrong, why they're carrying it out incorrectly, and just why they could get the job done better.

Don't be this type of person. Chances are, you have more knowledge and experience in your field than a good lots of the people you supervise. But that's why the business made you the boss! Your task is to guide and teach these people never to yell or nit-pick or show them how dumb they may be in comparison to you.

Mary Kay Ash, founder and director of Mary Kay Cosmetics, says that successful managers encourage their people rather than criticizing them. " Forget their mistakes, " she advises, "and zero in on one small thing they certainly right. Praise them and they're going to do more things right and find out talents and abilities they never realized they had. "

Let Them Fail

Of course, to check out through on Mary Kay's advice, you've got to let your people make some mistakes.

Does this shock you? I'm not surprised. Most staff expect to be punished for each mistake. Most managers think it's a "black eye" on their record when an employee goofs.

But successful managers know that the best way for their visitors to learn and grow is through experience and which means taking risks and making errors.

Give your people the chance to try new skills or tasks without a supervisor looking over their shoulders but only on smaller, less crucial projects. Like that, mistakes won't hurt the business and can quickly and easily be corrected. On major projects, where performance is crucial, you'll want to provide just as much supervision as is needed to ensure successful completion of the task.

Be Available

Have you have you been enthusiastic about a project, only to find yourself stuck, unable to continue, when you waited for someone higher up to check on your projects before giving the go ahead for the next thing?

Few things dampen employee motivation more than management inattention. As the manager, you have a million what to worry about aside from the report sitting in your mailbox, looking forward to your approval. But to the person who wrote that report, each day's delay causes frustration, anger, worry, and insecurity.

So, although there is a lot to do, give your first focus on approving, reviewing, and okaying projects happening. If employees drop by to ask a question or discuss a project, invite them to sit down for a few momemts. If you are pressed for time, create a scheduled appointment for later that day, and keep it. This will let your people know you are genuinely thinking about them. And that's something they'll really appreciate.

Improve the Workplace

People are most productive when they have the right tools and work in pleasant, comfortable surroundings. According to a report by the Buffalo Organization, a comfortable work place creates a supplementary $1600 of productivity annually for professionals and managers.

Having the right equipment is equally important. Among my clients recently hired a full-time technical writer at an income of $25, 000, but was reluctant to get $2500 in a word processor for him to work with.

I explained that, if you ask me, a word processor can simply double the productivity of your writer. Therefore, if the writer was expected to produce $25, 000 worth of work with a typewriter, he could produce $50, 000 with a word processor an extra $25, 000 each year in productivity for a $2500 investment! The client bought the computer. Both the company and the writer were delighted with the results.

Be aware that you may well not be the best judge of what your employees need to do their jobs effectively. Even if you have done the work yourself, someone else may work best with another type of group of tools, or in a different setup because each person differs.

If your people complain about work conditions, listen. These complaints are usually not designed for selfgain, but stem from each worker's wish to do the best job possible. And by giving the right equipment or work area, you can achieve enormous increases in output. . . open with a minimal investment.

A Personal Interest in People

When is the last time you asked your secretary how her son was doing in Little League or how she enjoyed her vacation?

Good salespeople know that relating to the customer over a person-to-person level is the quickest way to win friends and sales. Yet many technical managers remain aloof and steer clear of conversation that will not relate directly to business. Why? Perhaps it is because engineers are more comfortable with equations and inanimate objects than with people, and feel uncomfortable in social situations.

But just like a salesperson wants to access know his customer, you will benefit by showing a little personal interest in your people their problems, family life, health, and hobbies. This won't have to be insincere or overdone just the kind of routine conversation that should naturally pass between people who work closely.

If you've been ignoring your employees, get into the habit of going for a few minutes every week (or every day) to say "hello" and chat for just a few minutes If a worker has a personal problem affecting his mood or performance, try to learn what it is and exactly how you may help. Send a card or small gift idea on important occasions and holidays, like a 10th anniversary with the firm or a birthday. Often, it's the little things we do for people (such as letting staff with long commutes leave early on a snowy day, or springing for supper when overtime is necessary) that determine their loyally to you.

Be Open to Ideas

You may think the hallmark of a good manager is to have a department where everybody is busy at the job on their assigned tasks. If a people are merely "doing their jobs, " they're only working at about half their potential. A productive department is one where every employee is actively thinking about better, more efficient ways of working ways in which to make a higher quality product. in less time, at less expensive.

To understand this kind of innovation from your people, you have to be receptive to new ideas; also, you have to encourage your visitors to produce new ideas. Incentives are one of many ways you can offer a cash bonus, time off, something special. But a far more potent form of motivation is merely the employee's realizing that management does listen and does put employee recommendations and ideas to work. Quality Circles, employed by Westinghouse and other major firms, are one way of putting this into action. . . The old standby, the suggestion box. is another time tested method.

And when you listen to new ideas, be of an open mind. Don't shoot down an indicator before you've heard it completely. Many of us are too quick, too eager, showing off our own experience and knowledge and say that something won't work because "we've tried it before" or "we don't get it done doing this. " Well, maybe you did check it out before, but that doesn't mean it won't work now. And having done things a certain way before doesn't mean you've necessarily been doing them the simplest way. A good manager is open-minded and receptive to new ideas.

Give Your People a location to Go

If an employee doesn't have a destination to go a position to desire to, a promotion to work toward then his job is a dead end. And dead-end personnel are usually bored, unhappy, and unproductive. Organize your department so that everyone has chance for advancement, so that there surely is a logical progression in the ladder in conditions of title, responsibility, status, and pay. If this isn't possible because your department is too small, perhaps that progression must inevitably lead to jobs beyond your department. If so, don't hold people back; instead, cause them to become aim for these goals in order that they will help with their best efforts during all the years they are simply together with you.

Planning and Controlling


The process of setting goals, developing strategies, and outlining tasks and schedules to accomplish the goals.


Management control describes the means where the actions of people or groups within an organization are constrained to perform certain actions while avoiding other actions in an effort to achieve organizational goals.

Management control falls into two broad categories-regulative and normative controls-but within these categories are several types.

Planning and controlling are two separate fuctions of management, yet they may be closely related. The scope of activities if both are overlapping to each other. Without the basis of planning, controlling activities becomes baseless and without controlling, planning becomes a meaningless exercise. In absense of controlling, no purpose can be served by. Therefore, planning and controlling reinforce each other. According to Billy Goetz, "Relationship between the two can be summarized in the next points

Planning preceeds controlling and controlling succeeds planning.

Planning and controlling are inseperable functions of management.

Activities are placed on rails by planning and they're kept at right place through controlling.

The process of planning and controlling works on Systems Approach which is as follows

Planning ' Results ' Corrective Action

Planning and controlling are integral elements of a business as both are essential for smooth running of an enterprise.

Planning and controlling reinforce each other. Each drives the other function of management.

In today's dynamic environment which affects the organization, the strong relationship between your two is very critical and important. In the present day environment, it is quite likely that planning fails due to some unforeseen events. There controlling comes to the rescue. Once controlling is done effectively, it give us stimulus to make better plans. Therefore, planning and controlling are in separate functions of a business enterprise.

Types of Plan

A business plan is basically a road map to success for your business. A lot of people have great ideas for businesses, but can't ever get that business from the ground. A business plan details every one of the facets of an enterprise and explains how it'll be successful. If you are thinking of beginning a company, start with a business plan. There a few different kinds of business plans; as a business owner, you need to use these as helpful information to thinking about how precisely to make your business work

Feasibility Plan

A feasibility plan should be the vital thing you complete. This outlines the chances that a start-up venture will be successful. It should detail the amount of money necessary for the start-up, regular expenses and the price of offered goods and services. Essentially, it examines whether the venture is worth pursuing.

Start-Up Plan

This is the most typical type of business plan. A start-up plan details all the things you need to do to begin the business enterprise. It should cover many details, including the products that you will be providing, the marketing strategies you plan to employ, the team or employees that you will be using and a financial analysis--how you plan to pay for all of it. Answering these questions will let you think more in-depth about your business venture and put an idea doing his thing.

Strategic Plan

A strategic plan handles the strategy you intend to employ for a certain project. Perchance you intend to launch a fresh product or provide a new service. Perhaps you want to lessen your marketing budget, or restructure the business. This can all be achieved with a strategy plan, where you brainstorm what sort of project can be done.

Growth Plan

A growth plan is necessary for many who own businesses that are moderately successful, and who are prepared for another level: growth. A rise plan details how the business will grow. It gives a target date or a basic itinerary for the projected growth period, and details how that growth will need place: perhaps through aggressive marketing, more investors or better production.

Operations Plan

An functions plan is an internal plan that is not often meant for investors or clients, but also for the owner and employees only. This will detail the way the business is intended to run. It could include upcoming projects, events and milestones for the business. Additionally, it may detail different employees' responsibilities.

Long Term Plan

A long-term planning MIS is vital as it's focus is strategic in nature, and are long-term in nature and hence it's development and budgeting should be planeed for if MIS is to be used and expanded but some parts are also medium term as in tactical, and short-term as with operational. Without a permanent plan integrating MIS of most three levels is difficult. Since business plan are naturally long lasting, its integration with MIS and its own support to strategic nature is also long lasting. MIS is very much indeed part of your business operation as it is like any long term assets, such as building and equipment. Without infomation or MIS, a transaction, plans necessary to managed becomes very difficult to compete nowadays without information.

Short Term Plan

In real life business terms, short term plans are plan made to last ranging from 3 and a year. Medium term plans can be between 1 and 3 to 5 5 years.

In general, an idea with a planning horizon of five years or less. Also called short range plan.

Single-Use Plans

Single-use plans are essentially one-time use plans having a particular goal or objective. They may run for a few days or last many years. Projects, programs, and budgets are generally thought of as single-use plans. Planning is looking ahead and controlling is looking back

Standing Plans

Standing plans contain policies, procedures, and regulations. They exist to guide you in the absence of higher authority. They allow someone to make rational, informed, constant decisions and plans without constantly consulting higher levels of command. Standing plans exist until canceled or changed by higher authority

Planning is looking ahesd and controlling os looking back

Planning is Looking Ahead is true since it contributes heavily to success and gives us some control over the near future. By, planning we reserve our tasks and deadlines so we can enlarge our mental focus and seeing the larger picture. By, planning we can set our Personal or organizational goals and because of this defiantly we have to look ahead.

But, Planning is not ending with such strategies or guidelines. It offers relation with Implementation and controls. Because plans are not always proceed as conceived. The control process measures progress towards goal attainment and indicate corrective action if too much deviation is detected.

Controlling investigates whether planning was successful.

Controlling known as terminal management function, takes place after the other functions have been completed. And for this process we must look back and have to investigate the performance of our planning, organizing and leading. And for that reason we have to look back also.

So, yes we can say Control is looking back for Investigation, Analysis, and Understandings as well as for checking our effectiveness and efficiency.

Types of Control

Regulative Controls

Normative Controls

Bureaucratic Controls

Team Norms

Financial Controls

Organizational Cultural Norms

Quality Controls

The following section addresses regulative controls including bureaucratic controls, financial controls, and quality controls. The second section addresses normative controls including team norms and organization cultural norms.


Regulative controls stem from standing policies and standard operating procedures, leading some to criticize regulative controls as outdated and counter-productive. As organizations have grown to be more flexible in recent years by flattening organizational hierarchies, expanding organizational boundaries to add suppliers in inventory management and customers in new product development, forging cooperative alliances with competitors, and developing virtual organizations where employees are geographically dispersed and may meet just a few time every year, critics explain that regulative controls may prevent rather promote goal attainment.

There is some truth to the. Customer support representatives at Holiday Inn are limited in the extent to which they can correct mistakes involving guests. They are able to move guests to a different room if there is excessive noise in the area next to the guest's room. In some instances, guests may get a gift certificate for an additional night at another Holiday Inn if indeed they have had a particularly bad experience. On the other hand, customer support representatives at Tokyo's Marriott Inn contain the latitude to take up to $500 off a customer's bill to solve complaints.

The actions of customer support representatives at both Holiday Inn and Marriott Inn are required to follow policies and procedures, yet those at Marriott are likely to feel less constrained and much more empowered by Marriott's policies and procedures in comparison to Holiday Inn customer support representatives. The main element in terms of management control is matching regulative controls such as policies and procedures with organizational goals such as customer satisfaction. Each one of the three types of regulative controls discussed within the next few paragraphs has the potential to align or misalign organizational goals with regulative controls. The task for managers is striking the right balance between too much control and inadequate.


Bureaucratic controls stem from lines of authority which authority includes one's position in the organizational hierarchy. The higher up the chain of command, the more an individual will have authority to dictate policies and procedures. Bureaucratic controls have gotten a terrible name and often rightfully so. Organizations inserting too much reliance on chain of command authority relationships inhibit flexibility to cope with unexpected events. However, there are ways managers can build flexibility into policies and procedures that make bureaucracies as flexible and in a position to quickly respond to customer problems as any other form of organizational control.

Consider how hospitals, for example, are structured along hierarchical lines of authority.

Table 2

Definition and Types of Regulative Controls

Type of Regulative Control



Bureaucratic Controls

Policies and operating procedures

Employee handbook

Financial Controls

Key financial targets

Return on investment

Quality Controls

Acceptable degrees of product or process variation

Defects per million

The Board of Directors reaches the top, followed by the CEO and then the Medical Director. Below these top executives are vice presidents with responsibility for overseeing various hospital functions such as human resources, medical records, surgery, and intensive care units. The chain of command in hospitals is clear; a nurse, for example, wouldn't normally dare increase the dosage of your heart medication to a patient within an intensive care unit with out a physician's order. Clearly, this has the to slow reaction times-physicians sometimes spread their time across hospital rounds for two or three hospitals and also their individual office practice. Yet, it is the nurses and other direct care providers who have the most connection with patients and are in the best position to rapidly react to changes in a patient's condition.

The question bureaucratic controls must address is: How do the chain of command be preserved while also building versatility and quick response times in to the system? One of many ways is through standard operating procedures that delegate responsibility downward. Some hospital respiratory therapy departments, for example, have developed standard operating procedures (in health care terms, therapist-driven protocols or TDPs) with input from physicians.

TDPs usually have branching logic structures requiring therapists to perform specific tests prior to certain patient interventions to generate safety in to the protocol. Once physicians approve a couple of TDPs, therapists contain the autonomy to make decisions concerning patient care without further physicians' orders so long as these decisions stay within the boundaries of the TDP. Patients need not await a physician to make the next set of rounds or patient visits, write a fresh group of orders, enter the orders on the hospitals intranet, and await the manager of respiratory therapy to schedule a therapist to perform the intervention. Instead, therapists can respond immediately because protocols are established that build in versatility and fast response along with safety checks to limit mistakes.

Bureaucratic control is thus not synonymous with rigidity. Unfortunately, organizations have built rigidity into many bureaucratic systems, but this do not need to be the case. It is entirely easy for creative managers to develop flexible, quick-response bureaucracies.


Financial controls include key financial targets that managers are held accountable. These kinds of controls are common among firms that are organized as multiple strategic sections (SBUs). SBUs are product, service, or geographic lines having managers who are responsible for the SBU's profits and losses. These managers are held accountable to upper management to achieve financial targets that donate to the entire profitability of the organization.

Managers who are not SBU executives frequently have financial responsibility as well. Individual department heads are usually responsible for keeping expenses within budgeted guidelines. These managers, however, tend to have less overall responsibility for financial profitability targets than SBU managers.

In either case, financial controls place constraints on spending. For SBU managers, increased spending must be justified by increased revenues. For departmental managers, staying within budget is typically one key measure of periodic performance reviews. The role of financial controls, then, is to increase overall profitability as well concerning keep costs in-line. To determine which costs are reasonable, some firms will benchmark other firms in the same industry. Such benchmarking, without always an "apples-to-apples" comparison, provides at least some evidence to find out whether costs are consistent with industry averages.


Quality controls describe the extent of variation in processes or products that is known as acceptable. For some companies, zero defects-no variation at all-is the typical. In other companies, statistically insignificant variation is allowable.

Quality controls influence the ultimate service or product outcome wanted to customers. By maintaining constant quality, customers can rely on a firm's service or product attributes, but this also creates an interesting dilemma. An overemphasis on consistency where variation is kept to the lowest levels could also reduce respond to unique customer needs. This isn't an issue when the product or service is relatively standardized like a McDonald's hamburger,

Table 3

Definition and Examples of Normative Controls

Type of Normative Control



Team Norms

Informal team rules and responsibilities

Task delegation based on team member expertise

Organizational Cultural Norms

Shared organizational values, beliefs, and rituals

Collaboration may be valued more than individual "stars"

but may pose a difficulty when customers have nonstandard situations for which a one-size-fits-all solution is inappropriate. Wealth managers, for example, may create investment portfolios tailored to a single client, but the process used to implement that portfolio such as stock market transactions will be standardized. Thus, there is room within quality control for both creativity; e. g. , wealth portfolio solutions, and standardization; e. g. , currency markets transactions.


Rather than relying on written policies and procedures just as regulative controls, normative controls govern employee and managerial behavior through generally accepted patterns of action. One of many ways to think of normative controls is within terms how certain behaviors work as well as others are less appropriate. For example, a tuxedo might be the appropriate attire for an American business awards ceremony, but totally out of place at a Scottish awards ceremony, where a formal kilt may become more consistent with local customs. However, there would generally be no written policy regarding disciplinary action for failure to wear the correct attire, thus separating formal regulative controls for the more informal normative controls.


Teams have become commonplace in many organizations. Team norms will be the informal rules that produce team members alert to their responsibilities to the team. Although the duty of the team may be formally documented and communicated, the ways in which associates interact are typically developed as time passes as the team undergoes phases of growth. Even team leadership be informally agreed upon; at times, an appointed leader may have less influence than a casual leader. If, for example, a casual leader has greater expertise than a formal team leader, team members may turn to the informal leader for guidance requiring specific skills or knowledge. Team norms tend to develop gradually, but once formed, can be powerful influences over behavior.


In addition to team norms, norms predicated on organizational culture are another type of normative control. Organizational culture involves the shared values, beliefs, and rituals of a particular organization. The Internet search firm, Google, Inc. has a culture where innovation is valued, beliefs are shared among employees that the work of the organization is important, and teamwork and collaboration are common. In contrast, the retirement specialty firm, VALIC, targets individual production for its sales agents, de-emphasizing teamwork and collaboration in favor of personal effort and rewards. Both these example are equally effective in matching norms with organizational goals; the key is thus in properly aligning norms and goals.

The broad types of regulative and normative controls are present in almost all organizations, however the relative emphasis of every kind of control varies. Within the regulative category are bureaucratic, financial, and quality controls. Inside the normative category are team norms and organization cultural norms. Both categories of norms can be effective and some may be not inherently superior to the other. The managerial challenge is to encourage norms that align employee behavior with organizational goals.


Decisions are very important part in life; we take decisions at every moment in daily routine. If we choose a TV program to view among several programs it means we took decision about which program to watch.

Decision is an option created from available alternatives.

There are two types of decision

Programmed Decisions

Non-programmed Decisions

Programmed Decisions

The Programmed decisions in Management of a business are worried with the relatively routine problems. These decisions are used the regular course of any business operations and occur at a day-to-day frequency.

These decisions are repetitive and structured in nature. These are small and also have a minimal scope of impact.

The Information related to these types of decisions are plentiful and can be processed in a pre-determined manner. These demand hardly any commitment as there are pre-determined decision rules and procedures.

These are taken at lower levels of management

For example, a decision regarding a personnel coming late regularly.

Non- Programmed Decisions

The Non-programmed decisions in general management are concerned with original or unusual problems. They are really encountered in a very non-frequent manner.

These decisions are unstructured, non-recurring and ill-defined in nature. Such decisions are relatively complex and also have a long-term impact.

The Information regarding these problems are not easily available. Therefore, they might need high degree of executive judgment and deliberation.

These are usually taken at higher levels in the organization.

Eg-Decisions about the expansion of business.

3. Strategic Decisions.

Strategic decisions will be the decisions that are worried with whole environment in which the firm operates, the entire resources and the folks who form the company and the interface between your two.

Characteristics/Features of Strategic Decisions

Strategic decisions have major resource propositions for an organization. These decisions may get worried with possessing new resources, organizing others or reallocating others.

Strategic decisions deal with harmonizing organizational resource capabilities with the threats and opportunities.

Strategic decisions deal with the number of organizational activities. It is all about what they need the business to end up like also to be about.

Strategic decisions involve a big change of major kind since an organization operates in ever-changing environment.

Strategic decisions are complex in nature.

Strategic decisions are at the top most level, are uncertain as they deal with the future, and involve a lot of risk.

Strategic decisions are different from administrative and operational decisions. Administrative decisions are routine decisions that assist or rather facilitate strategic decisions or operational decisions. Operational decisions are technical decisions that assist execution of strategic decisions. To reduce cost is a strategic decision which is achieved through operational decision of reducing the number of employees and how we carry out these reductions will be administrative decision

4. Administrative decisions.

Administrative decisions are taken daily, They are short-term based Decisions These are taken according to strategic and operational Decisions. These are related to working of employees in an Organization. These are in welfare of employees working in an organization

5. Operational Decisions.

These are short-term decisions (also known as administrative decisions) about how precisely to implement the tactics eg which firm to make use of to make deliveries

Operational decisions are short-term decisions instead of the longer-term strategic investment decisions that are needed when physical assets are being acquired. Some of the more common decisions related to plant operations involve material, plant facilities, and in-house capabilities of company personnel. Short-term operational decisions are also called Present Economic Studies plus they require the estimation of costs associated with various production and manufacturing activities. These costs provide the basis for developing successful business strategies and planning future operations.

To make operational decisions it can help to understand some fundamental cost-volume relationships related to the procedure of a company. A visit to the "Short-term Decisions" page will be appropriate for a review of some typically common types of short-term operational decisions.

The differences between Strategic, Administrative and Operational decisions can be summarized as follows-

Sr. #

Strategic Decisions

Administrative Decisions

Operational Decisions


Strategic decisions are long-term decisions.

Administrative decisions are taken daily.

Operational decisions aren't frequently taken.


These are believed where in fact the future planning is concerned.

These are short-term based Decisions.

These are medium-period based decisions.


Strategic decisions are used Accordance with organizational mission and vision.

These are taken according to strategic and operational Decisions.

These are taken in accordance with strategic and administrative decision.


These are related to overall Counter planning of all Organization.

These are related to working of employees within an Organization.

These are related to production.


These deal with organizational Growth.

These are in welfare of employees employed in a business.

These are related to production and factory growth.

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