FUNCTIONS OF MANAGEMENT

1. Planning

Planning is future-oriented and determines an organization’s direction. It is a rational

and systematic way of making decisions today that will affect the future of the
company. It is a kind of organized foresight as well as corrective hindsight. It involves
predicting of the future as well as attempting to control the events. It involves the
ability to foresee the effects of current actions in the long run in the future.

2. Organizing

Organizing requires a formal structure of authority and the direction and flow of such
authority through which work subdivisions are defined, arranged and coordinated so
that each part
relates to the other part in a united and coherent manner so as to attain the
prescribed objectives.

3. Staffing

Staffing is the function of hiring and retaining a suitable work-force for the enterprise
both at managerial as well as non-managerial levels. It involves the process of
recruiting, training, developing, compensating and evaluating employees and
maintaining this workforce with proper incentives and motivations. Since the human
element is the most vital factor in the process of management, it is important to
recruit the right personnel.

4. Directing

The directing function is concerned with leadership, communication, motivation, and

supervision so that the employees perform their activities in the most efficient
manner possible, in order to achieve the desired goals.

The leadership element involves issuing of instructions and guiding the subordinates
about procedures and methods.

The communication must be open both ways so that the information can be passed
on to the subordinates and the feedback received from them.

Motivation is very important since highly motivated people show excellent

performance with less direction from superiors.
 5. Controlling

The function of control consists of those activities that are undertaken to

ensure that the events do not deviate from the pre-arranged plans. The
activities consist of establishing standards for work performance, measuring
performance and comparing it to these set standards and taking corrective
actions as and when needed, to correct any deviations.

LEVELS OF MANAGEMENT

Management is typically divided into several levels within an organization,

each with its own set of responsibilities and functions. The exact number of
levels and their titles may vary depending on the organization's size,
structure, and industry. However, a common framework for management
levels includes:

1. Top-level management (Strategic Management):

 Titles: Chief Executive Officer (CEO), President, Managing Director,

Board of Directors.
 Responsibilities:
 Setting overall direction and goals for the organization.
 Making strategic decisions regarding the organization's mission,
vision, and long-term objectives.
 Establishing policies and procedures.
 Overseeing the entire organization and ensuring its success.

2. Middle-level management (Tactical Management):

 Titles: Vice President, General Manager, Division Manager,

Department Head.
 Responsibilities:
 Implementing the strategies and policies set by top-level
management.
 Translating strategic goals into actionable plans and objectives for
their respective departments or divisions.
 Coordinating the activities of different departments.
 Supervising lower-level managers and employees.
 Reporting progress and issues to top-level management.
3. Front-line or First-level management (Operational Management):

 Titles: Supervisor, Team Leader, Foreman, Department Manager.

 Responsibilities:
 Directly overseeing the day-to-day operations and activities of
frontline employees.
 Assigning tasks and responsibilities.
 Training and coaching employees.
 Monitoring performance and ensuring productivity and quality
standards are met.
 Handling routine operational issues and solving problems as they
arise.

Some organizations may have additional levels or variations in titles

depending on their specific needs and structures. Additionally, the
boundaries between these levels are not always rigid, and individuals may
move between levels as they progress in their careers or as organizational
needs change.

What Is a Performance Appraisal?

The term “performance appraisal” refers to the regular review of an
employee’s job performance and overall contribution to a company. Also
known as an annual review, employee appraisal, performance review or
evaluation, a performance appraisal evaluates an employee’s skills,
achievements, and growth, or lack thereof.

CULTURAL DIMENSION

Cultural dimensions refer to the various aspects or characteristics of a culture that shape its
members' behaviors, beliefs, values, and norms. These dimensions are used to analyze and
understand cultural differences and similarities between societies, organizations, or groups.

CONTROL MECHANISM

A control mechanism refers to any process or system put in place to monitor, regulate, or
manage the activities, behaviors, or outputs of individuals, groups, or organizations. Control
mechanisms are essential for ensuring that operations run smoothly, goals are achieved, and
resources are used effectively. They help in maintaining standards, detecting deviations from
desired outcomes, and taking corrective actions when necessary.

ORGANIZATION STRUCTURE MEANING

 Organization structure refers to the formal framework of roles, responsibilities, relationships,
and hierarchies within an organization. It defines how tasks are divided, coordinated, and
controlled to achieve the organization's goals and objectives effectively. A well-designed
organization structure provides clarity, facilitates communication, and promotes efficiency
and productivity.

Key components of organization structure include:

1. Hierarchy: The hierarchy outlines the chain of command and reporting relationships within
the organization. It defines who reports to whom and establishes levels of authority and
decision-making responsibility. Hierarchies can be tall (with many levels of management) or
flat (with few levels), depending on the organization's size and complexity.

2. Departments and Divisions: Organizations are typically divided into functional departments
or divisions based on the nature of their work or product/service offerings. Common
departments include finance, marketing, human resources, operations, and sales. Each
department may have its own manager or leader responsible for overseeing its activities.

3. Roles and Responsibilities: Organization structure clarifies the roles, responsibilities, and
duties of individuals within the organization. Job descriptions outline the tasks, skills, and
qualifications required for each position, helping employees understand their roles and
expectations.

4. Coordination Mechanisms: Organization structure defines how different departments or

divisions coordinate their activities to achieve common goals. This may involve formal
mechanisms such as meetings, committees, and cross-functional teams, as well as informal
communication channels.

5. Centralization vs. Decentralization: Organization structure determines the degree of

centralization or decentralization in decision-making authority. Centralized organizations
concentrate decision-making power at the top levels of management, while decentralized
organizations delegate authority to lower levels or departments.

6. Span of Control: Span of control refers to the number of subordinates or employees that a
manager directly supervises. A narrow span of control means fewer direct reports per
manager, while a wide span of control means more direct reports. The choice of span of
control affects communication, supervision, and managerial effectiveness.

7. Formalization: Formalization refers to the extent to which rules, procedures, and policies
govern behavior within the organization. Highly formalized organizations have strict rules
and procedures, while less formalized organizations allow more flexibility and autonomy.

Organization structure can take various forms, including functional, divisional, matrix,
network, and hybrid structures, depending on the organization's goals, size, industry, and
culture. The structure should support the organization's strategy, facilitate coordination and
communication, and enable efficient resource allocation and decision-making. Regular
 evaluation and adjustment of the organization structure may be necessary to adapt to
changing market conditions, technological advancements, and organizational needs.

DECISION MAKING MEANING

Decision making refers to the process of selecting a course of action from multiple
alternatives to achieve a desired goal or outcome. It is a fundamental aspect of human
cognition and organizational management, occurring at all levels of an organization and in
various contexts.

Key components of the decision-making process include:

1. Identifying the Problem or Opportunity: The decision-making process typically begins

with recognizing a need to make a decision, whether in response to a problem, challenge,
opportunity, or goal.

2. Gathering Information: Once the problem or opportunity is identified, relevant information

and data need to be collected and analyzed to understand the situation fully. This may involve
research, data analysis, consultation with experts, and stakeholder input.

3. Generating Alternatives: Decision makers brainstorm and develop multiple possible courses
of action or alternatives to address the problem or opportunity identified. Creativity and
critical thinking are essential during this stage.

4. Evaluating Alternatives: Each alternative is then evaluated based on criteria such as

feasibility, effectiveness, cost, risk, and alignment with organizational goals and values.
Decision makers assess the pros and cons of each option to determine its potential outcomes
and consequences.

5. Making the Decision: After evaluating the alternatives, decision makers select the most
appropriate course of action or solution. The decision may be made by an individual or a
group, depending on the complexity and significance of the decision.

6. Implementing the Decision: Once a decision is made, it needs to be implemented

effectively. This involves developing an action plan, allocating resources, assigning
responsibilities, and executing the chosen course of action.

7. Monitoring and Evaluating: Finally, decision makers monitor the implementation of the
decision and evaluate its outcomes against the desired goals and objectives. Adjustments may
be made as nee ded based on feedback and performance metrics.

Decision making can be influenced by various factors, including cognitive biases, emotions,
time constraints, organizational culture, and the availability of information. Different
decision-making models and techniques, such as rational decision making, intuitive decision
making, and bounded rationality, are used to guide and improve the decision-making process
in different situations.
 Effective decision making is crucial for organizational success, as it impacts performance,
innovation, competitiveness, and stakeholder satisfaction. By understanding the decision-
making process and employing appropriate strategies and tools, individuals and organizations
can make better decisions and achieve their objectives more efficiently and effectively.

STEPS OF PLANNING

Planning is a systematic process of setting goals, defining objectives, and determining the
actions and resources required to achieve them. It involves analyzing the current situation,
identifying future opportunities and challenges, and developing strategies to accomplish
desired outcomes. The steps of planning typically include:

1. Establishing Objectives: The first step in planning is to clearly define the objectives or goals
that the organization or individual aims to achieve. Objectives should be specific,
measurable, achievable, relevant, and time-bound (SMART). They provide direction and
purpose for the planning process.

2. Assessing the Current Situation: After establishing objectives, it's important to assess the
current situation or environment in which the planning will take place. This involves
analyzing internal factors such as strengths, weaknesses, resources, and capabilities, as well
as external factors such as market conditions, competition, technological trends, and
regulatory changes. SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is
commonly used to assess the current situation.

3. Identifying Alternatives: Based on the assessment of the current situation, alternative

courses of action or strategies are identified. These alternatives should align with the
established objectives and address the opportunities and challenges identified during the
analysis phase. Brainstorming, scenario planning, and benchmarking are some techniques
used to generate alternatives.

4. Evaluating Alternatives: Once alternatives are identified, they are evaluated against criteria
such as feasibility, effectiveness, cost, risk, and alignment with objectives. This evaluation
helps in selecting the most suitable alternative or combination of alternatives to pursue.
Decision matrices, cost-benefit analysis, and multi-criteria decision analysis are tools
commonly used for evaluation.

5. Developing the Plan: The chosen alternative is then developed into a detailed plan outlining
the specific actions, tasks, responsibilities, timelines, and resources required to achieve the
objectives. The plan should be clear, actionable, and adaptable to changing circumstances.
Depending on the scope and complexity of the plan, it may include sub-plans for different
areas or functions within the organization.

6. Implementing the Plan: With the plan in place, the next step is to implement it effectively.
This involves allocating resources, assigning responsibilities, communicating the plan to
 stakeholders, and taking the necessary actions to execute the planned activities. Effective
leadership, coordination, and monitoring are essential during the implementation phase.

7. Monitoring and Controlling: Throughout the implementation of the plan, progress is

monitored and compared against the established objectives and performance indicators. Any
deviations or issues that arise are identified and addressed through corrective actions. Regular
review meetings, performance reports, and feedback mechanisms help in tracking progress
and ensuring that the plan remains on track.

8. Reviewing and Adjusting: Planning is an iterative process, and it's important to periodically
review the plan's effectiveness and make adjustments as needed. This may involve revising
objectives, updating strategies, reallocating resources, or modifying the plan based on
changing circumstances, feedback, or lessons learned from implementation.

By following these steps, individuals and organizations can develop comprehensive and
effective plans to guide their actions and achieve their desired outcomes.

NATURE OF PLANNING

The nature of planning encompasses several key characteristics and principles that define its
essence and significance within organizations and individual endeavors. Some of the
fundamental aspects of planning include:

1. Forward-Looking: Planning involves looking ahead and anticipating future events, trends,
opportunities, and challenges. It is future-oriented and aims to prepare individuals and
organizations to navigate and capitalize on anticipated changes.

2. Goal-Oriented: At its core, planning is about setting goals and objectives that provide
direction and purpose. These goals serve as the foundation for developing strategies, making
decisions, and allocating resources effectively.

3. Systematic and Purposeful: Planning is a systematic process that involves a series of

deliberate and purposeful steps, from defining objectives to implementing and monitoring
actions. It requires logical thinking, analysis, and consideration of various factors and
alternatives.

4. Flexible and Adaptive: While planning provides a framework for action, it must also be
flexible and adaptive to accommodate changing circumstances, uncertainties, and unforeseen
events. Flexibility allows for adjustments and revisions as new information becomes
available or as conditions evolve.

5. Integrated and Coordinated: Planning involves integrating and coordinating various

activities, resources, and functions within an organization to achieve common goals. It
requires collaboration and alignment across different levels and departments to ensure
coherence and synergy in efforts.
6. Proactive and Reactive: Planning involves both proactive and reactive elements. Proactive
planning focuses on anticipating and shaping the future through proactive initiatives and
strategies, while reactive planning involves responding to immediate needs, crises, or changes
in the external environment.

7. Involves Decision Making: Planning is inherently linked to decision making, as it requires

analyzing alternatives, making choices, and prioritizing actions to achieve desired outcomes.
Effective planning relies on sound judgment, critical thinking, and a consideration of trade-
offs.

8. Continuous Process: Planning is not a one-time event but a continuous process that unfolds
over time. It involves ongoing monitoring, evaluation, and adjustment of plans in light of
changing circumstances, feedback, and performance data.

9. Resource Allocation: Planning involves allocating resources such as time, money, people,
and materials efficiently and effectively to support the implementation of strategies and
achieve desired outcomes.

10. Strategic and Operational: Planning occurs at both strategic and operational levels within
organizations. Strategic planning focuses on long-term goals, vision, and overall direction,
while operational planning deals with day-to-day activities, tactics, and resource allocation.

Understanding the nature of planning helps individuals and organizations appreciate its
importance, guiding them in developing robust plans that enable them to achieve their
objectives and adapt to a dynamic and uncertain environment.

QUALITIES OF A LEADER

1. Accountability

Taking ownership of responsibilities and positive and negative outcomes

is key to effective leadership. Leaders should be able to take
responsibility for their team's work, as well as their own. This may involve
apologizing for mistakes and developing new systems and processes to
avoid errors in the future.Related: Defining Accountability in Management

2. Active listening

Successful leaders should be able to give, but also receive feedback from
team members and listen. To actively listen, a leader can listen to the
words being spoken but also understand the meaning behind them. You
can practice active listening by minimizing distractions when having
conversations, showing interest by using non-verbal cues and
summarizing the speaker's words to show your understanding.
3. Collaboration

Often, leaders need to collaborate internally across departments and

externally with vendors, third-party companies and contractors. It's
important that they know how to find common goals and create
partnerships for the most successful and mutually beneficial outcome.
Good collaboration often involves prioritizing communication between
parties to ensure your goals align and all participants understand your
expectations.

4. Courage

Effective leaders should have the courage to do what is in the best

interest of the team and company at all times. There may be times when
leaders need to make unpopular or difficult decisions, so having courage
can help them accept the difficulty of their role and make necessary
decisions with confidence.Additionally, leaders may need courage to
pursue new challenges. You can show courage by accepting more
responsibilities or pushing yourself to gain new skills.Related:

5. Communication

Communicating in an articulate and positive style creates a clear path for

the rest of the team, project or meeting you are leading to follow. Good
communication skills include listening effectively to the needs and
expectations of others while also expressing your own. When you
communicate well with your team, it helps them understand your
expectations and goals. Additionally, your team members may feel
comfortable expressing their interests and concerns to you.

6. Empathy

Leaders need to understand how the people around them feel about
projects, decisions, morale, direction and company or team vision. Strong
leaders show empathy by recognizing and considering their employees'
feelings.Having empathy for your team members means identifying their
struggles and showing understanding toward them. When you show care
and concern about your employees, it can help you develop stronger
professional relationships.

7. Flexibility
A flexible leader can adjust and maintain ownership of the team, project
or meeting as needed. They're open to new ideas and change as long as it
moves the team and company forward. Being flexible can help you adapt
to changes in your workplace, project or stakeholders' expectations so
you can adjust your strategy for achieving goals.Related:

8. Focus

A good leader sets a practical vision and suitable, achievable targets.

They know how to set SMART goals that are specific, measurable,
attainable, realistic and timely. Using the SMART goal framework can
establish a strong foundation for achieving success.

9. Growth mindset

Leaders do well when they adopt a growth mindset. Circumstances often

change from when a project, challenge or issue began. Leaders consider
that technology may have changed or personal issues may have arisen for
their team. If they can keep a growth mindset and adapt, they can
overcome challenges to continue to make progress toward goals.

10. Eager to learn

Leaders are effective and inspirational when they stay knowledgeable of

trends and the topics they are leading. Not only does this help leaders
improve their skills and contribute to their purposes, but it also helps to
inspire the team to continue learning, too. For example, when you commit
to continuing your education or taking part in professional development
opportunities, it may motivate your team to invest in their own learning.

11. Innovation

Leaders often develop ideas, solve problems and complete tasks that
require innovation and creativity. They encourage creativity and
innovation in their teams through activities like brainstorming or
prototyping. Good leaders actively listen to their employees and motivate
them to think creatively or consider new perspectives.Related:

12. Optimism

Optimistic leaders show they believe their company is working toward a

better future. They value their team members' contributions to achieve
that goal. Effective leaders often plan ahead and maintain a positive
outlook through changes and transitions. Being positive during stressful or
adverse situations can help your team manage difficulties effectively.

13. Passion

Leaders can motivate their teams by demonstrating their passion in the

workplace. The team leader should be passionate about workplace goals,
creating unity among their team to work together. When you believe in the
value of your work, and you show your care for the work you do, it can
motivate and inspire the members of your team to engage with their
work.Related:

14. Patience

Effective leaders know that mistakes, miscommunications and failures

are part of the workplace and that having patience can help their team
overcome workplace errors.Patience involves understanding that
mistakes can happen, accepting mistakes when they happen and focusing
your efforts on staying productive. You may also show patience when
helping employees learn new roles and responsibilities since it can take
time for those you supervise to gain new skills.Related:

15. Problem-solving

Developing problem-solving skills allows teams to move past challenges

with minimal disruption. Good leaders also make training a priority for
their employees, allowing them to develop skills to do their work and
minimize the potential for problems. Being able to identify problems and
use critical thinking skills to resolve them is an important leadership
quality.

16. Resilience

Leaders are perceptive and know how to handle themselves in both

positive and potentially difficult situations. This might mean creating new
processes, hiring new people or changing the status quo. A resilient
leader focuses on the end result, avoids distractions and leads by
example.

17. Respect
Effective leaders treat their teams with respect, which can help them gain
respect in return. They value feedback and want to hear the opinions of
their teammates. Effective leaders show their respect by empowering
their employees to make decisions and use their expertise to achieve
goals. Showing respect builds their sense of worth and commitment to the
organization.Related: What Is Respect in the Workplace?

18. Self-awareness

Successful leaders express the skills and knowledge required for a certain
role in an organization or a specialty. They know their abilities and
limitations and advocate for themselves based on their self-
awareness.Effective leaders make reflection a priority to understand their
own strengths and weaknesses. Based on their self-awareness, they can
work toward improving their abilities and applying their strengths to help
their team succeed.

19. Transparency

Being open and honest makes work more efficient and enjoyable. Good
leaders consider the consequences of their decisions and actions for both
teams and customers, setting a role model for employees to do the same.
They ask for help when needed and provide honest and constructive
feedback.Related:

20. Trust

Showing trust in your team can improve employee morale and motivation.
When you allow your team members to work autonomously, make their
own decisions and apply their skills and knowledge in the workplace, they
may feel more valued for their professional expertise.To show trust in your
team, involve them in decision-making processes when possible and
empower them to make choices in their roles. Invite them to help define
reasonable expectations for their role, set their own goals and create
processes that guide their efforts

Structure of the McKinsey 7S Model

Structure, Strategy, and Systems collectively account for the “Hard Ss”
elements, whereas the remaining are considered “Soft Ss.”
1. Structure

Structure is the way in which a company is organized – the chain of

command and accountability relationships that form its organizational
chart.

2. Strategy

Strategy refers to a well-curated business plan that allows the company to

formulate a plan of action to achieve a sustainable competitive advantage,
reinforced by the company’s mission and values.

3. Systems

Systems entail the business and technical infrastructure of the company

that establishes workflows and the chain of decision-making.

4. Skills

Skills form the capabilities and competencies of a company that enables its
employees to achieve its objectives.

5. Style

The attitude of senior employees in a company establishes a code of

conduct through their ways of interactions and symbolic decision-making,
which forms the management style of its leaders.

6. Staff

Staff involves talent management and all human resources related to

company decisions, such as training, recruiting, and rewards systems

7. Shared Values

The mission, objectives, and values form the foundation of every

organization and play an important role in aligning all key elements to
maintain an effective organizational design.

PERFORMANCE APPRAISAL STEPS

1. Reflect: The beginning of effective performance appraisal is better as well
as an accurate understanding of what the employees want from their job or
what their expectations are. To accomplish it, it is vital to know:
 What reasons lie behind the existence of the job;
 Where it suits within the business firm;
 The contribution of the job in overall goals of the organization and present business strategy;
 What will be expected from the employee’s performance as per the behaviour, policies and
processes?
 What abilities and knowledge are required?

2. Set Goals: The main focus is on the aspects of the employee’s goals at
which they have to work and be better. The ambitions of the employee can
also be reflected by the goals for their career. The manager must ensure that
the employee’s goal is in direct relation with the priorities as well as
strategies of the business. This process needs the involvement of both the
manager and the individual to get a better understanding and commitment.
3. Feedback: A continuous feedback is a sine qua non of performance
appraisal but it does not have to be a part of a scheduled meeting. Most of
the best feedback can also get spontaneously in the job at any time. The
important thing is that the feedback is vital and also needs to be meaningful.
It may also be useful if the feedback is taken through other sources rather
than the conventional employee-manager relationship.
4. Develop: Through the better understanding of individual tracking next to
performance expectations, it will become easy as to what type of education,
training and other learn rope opportunities can be prioritized to pave the way
towards the goals. The activities of development may include any formal
accreditation such as degrees, diplomas and professional certificates or it
could be some alternate options like eLearning, research projects and
shadowing.
 5. Review: After every six to twelve months, the manager makes sure to keep
a check over the formal review and assess the performance according to the
specific goals of the organization.
6. Reward: The process of performance appraisal is beneficial for an
organization where the reward is given based on an employee’s
performance. It can be in the form of an increase in salary, bonus payments
and other financial incentives. But it can also be non-monetary rewards such
as awards, promotions and improved decision making.

Types of performance appraisals

Here are some types of performance appraisals:

1. Negotiated appraisal

Negotiated appraisals involve the use of a mediator during the employee

evaluation. Here, the reviewer shares what the employee is doing well
before sharing any criticisms. This type of evaluation is helpful for
situations where the employee and manager might experience tension or
disagreement.

2. Management by objective (MBO)

The management by objective (MBO) is an appraisal that involves both the

manager and employee working together to identify goals for the
employee to work on. Once they establish a goal, both individuals discuss
the progress the employee will need to make to fulfill the objectives.
When the review time concludes, the manager evaluates whether the
individual met their goal and sometimes offers incentives for meeting
it.Related: Management by Objectives: Definition, Benefits and Examples

3. Assessment center method

The assessment center method allows employees to understand how

others perceive them. This helps them understand the impact of their
performance. The assessment center method divides the review into three
stages: pre-assessment, during assessment and post-assessment. During
the assessment, the manager places the individual in role-playing
scenarios and exercises to show how successful they are in their role.

4. Self-appraisal

A self-appraisal is when an employee reflects on their personal

performance. Here, they identify their strengths and weaknesses. They
may also recount their milestones with the organization, such as
completing a high number of sales within a month. This type of appraisal
usually involves filling out a form, and manager may choose to follow up
on this written self-assessment with a one-on-one meeting.Related: How
To Write a Self-Appraisal

5. Peer reviews

Peer reviews use coworkers as the evaluator for a particular employee.

This type of performance appraisal can help access whether an individual
works well with teams and contributes to their share of work. Usually, the
employee reviewing the individual is someone who works closely with
them and has an understanding of their skills and attitude.

6. Customer or client reviews

Customer or client reviews occur when those who use a company's

product or service provide an evaluation. This provides the company with
feedback on how others perceive the employee and their organization.
Using this type of appraisal can help you improve both employee
performances and customer interactions.

7. Behaviorally anchored rating scale (BARS)

Behaviorally anchored rating scale (BARS) appraisals measure an

employee's performance by comparing it to specific behavioral examples.
Businesses give each example a rating to help collect qualitative
and quantitative data. These examples help managers measure an
employee's behavior on predetermined standards for their role.

Benefits of performance appraisals

Performance appraisals serve a variety of objectives, such as recognizing
the strengths of an employee. Conducting regular evaluations of team
members can increase communication between managers and their team
 of employees. It also can help create a plan to resolve any areas an
employee is lacking and provide additional training. Some other
advantages of performance appraisals include:

 Helping make human resource decisions, such as who

to promote and whether to raise a salary
 Developing employee skills and performance
 Determining the organization's future goals and
objectives
 Increasing employee morale
 Rewarding top performers

The 7 steps of the decision

making process
Step 1: Identify the decision that
needs to be made
When you're identifying the decision, ask yourself a few questions:
 What is the problem that needs to be solved?
 What is the goal you plan to achieve by implementing this decision?
 How will you measure success?
These questions are all common goal setting techniques that will
ultimately help you come up with possible solutions. When the
problem is clearly defined, you then have more information to come
up with the best decision to solve the problem.
Read: 22 types of business objectives to measure success

Step 2: Gather relevant

information
 Gathering information related to the decision being made is an
important step to making an informed decision. Does your team
have any historical data as it relates to this issue? Has anybody
attempted to solve this problem before?
It's also important to look for information outside of your team or
company. Effective decision making requires information from many
different sources. Find external resources, whether it’s doing
market research, working with a consultant, or talking with
colleagues at a different company who have relevant experience.
Gathering information helps your team identify different solutions to
your problem.

Step 3: Identify alternative

solutions
This step requires you to look for many different solutions for the
problem at hand. Finding more than one possible alternative is
important when it comes to business decision-making, because
different stakeholders may have different needs depending on their
role. For example, if a company is looking for a work management
tool, the design team may have different needs than a development
team. Choosing only one solution right off the bat might not be the
right course of action.
Read: What is decision tree analysis? 5 steps to make better decisions

Step 4: Weigh the evidence

This is when you take all of the different solutions you’ve come up
with and analyze how they would address your initial problem. Your
team begins identifying the pros and cons of each option, and
eliminating alternatives from those choices.
There are a few common ways your team can analyze and weigh the
evidence of options:
 Pros and cons list
 SWOT analysis
 Decision matrix

Step 5: Choose among the

alternatives
The next step is to make your final decision. Consider all of the
information you've collected and how this decision may affect each
stakeholder.
Sometimes the right decision is not one of the alternatives, but a
blend of a few different alternatives. Effective decision-making
involves creative problem solving and thinking out of the box, so
don't limit you or your teams to clear-cut options.
One of the key values at Asana is to reject false tradeoffs. Choosing
just one decision can mean losing benefits in others. If you can, try
and find options that go beyond just the alternatives presented.

Step 6: Take action

Once the final decision maker gives the green light, it's time to put
the solution into action. Take the time to create an implementation
plan so that your team is on the same page for next steps. Then it’s
time to put your plan into action and monitor progress to determine
whether or not this decision was a good one.

Step 7: Review your decision and

its impact (both good and bad)
Once you’ve made a decision, you can monitor the success metrics you
outlined in step 1. This is how you determine whether or not this
solution meets your team's criteria of success.
Here are a few questions to consider when reviewing your decision:
 Did it solve the problem your team identified in step 1?
 Did this decision impact your team in a positive or negative way?
 Which stakeholders benefited from this decision? Which stakeholders were impacted
negatively?
If this solution was not the best alternative, your team might benefit
from using an iterative form of project management. This enables
your team to quickly adapt to changes, and make the best decisions
with the resources they have.

TYPES OF MANAGERIAL SKILLS

1. Conceptual skills,
2. Human skills,
3. Technical skills.
Conceptual skills – A conceptual skills are Manager’s ability to work with
ideas and concepts.

These skills enable executives to understand and better decide the actions
that have to be taken in a particular field of work.

For example, managers use conceptual skills to take decisions and formulate
strategies.

Human skills – This is a manager’s ability to work with people, understand

and motivate them.

For example, managers use human skills to get along with people and to
communicate and work within teams.

Technical skills – This is a manager’s ability to use tools, procedures, or

techniques in his specialized area.

For example, using certain computer software packages (like; MS Excel or

Access) is an advanced technical skill.