Managerial Skills – Three Types

Do you have managerial skills to manage your own company? What are you thinking about your own managerial skills? Can you be a real manager with all skills necessary for you and your company?


Business owners are entrepreneurs until they become managers. When they become managers, they will start feeling frustrated because then they will need to deal with new type of problems, managerial problems.

Management is not a simple task. It needs knowledge and experience. Because of that, there is existence of hierarchy, organizational structure, and possibilities for each organizational member with adequate education and skills to move from the bottom to the middle and top level. There are small possibilities for the individuals with high educational skills immediately to become top managers.

I have already written about entrepreneurial skills, and you can read more in ten smart skills every entrepreneur need now. Here, I want to talk about the three basic managerial skills as well as their link to the hierarchical structure in the company.

Here, I want to talk about the three basic managerial skills as well as their link to the hierarchical structure in the company.

What are Managerial Skills?

Simply, managerial skills represent a knowledge to fulfill some activities or tasks. This knowledge can be learned. However, it also can be acquired through practical implementation of these activities. Therefore, each skill can be developed through learning and experience of the individuals.

There are many definitions about skills that talk about talent. Talent is something personal in an individual and represents a native gift from the nature about that something inside talented persons. All persons cannot be artists. Usually, artists are born with the gift of art, but regardless their talent they continue to develop their talent to improve their art skills.

When we talk about managerial skills, we talk about skill of the manager to maintain high efficiency in the way how their employees complete their working tasks. Because of that, managers must have skills that will help them to manage people and technology to ensure an effective and efficient realization of their working tasks.

Three types of managerial skills

Robert Katz identifies three types of skills that are essential for a successful management process:

  • Technical,
  • Conceptual and
  • Human or interpersonal managerial skills.

Technical Skills

As the name of these skills tells us, these skills give the manager’s knowledge of different techniques of task completion. They are not only for working on machines or other equipment, but also they are skills that will be needed to realize sales, design different types of products and services, market the products, and services…

For example, a person work in sales department and have high developed sales skills obtained through education and experience in that or the same departments in different organizations. Because of that, this person can be a perfect solution to become sales manager because he has great technical skills focused in sales.

On the other hand, one person that become sales manager start to build next type of skills, because if his tasks until know was only to work with the customers as sales representative, know it will need to work with employees in sales department as addition to the work with customers.

Technical skills are most important for first-level managers, but for the top managers, these skills are not something with high significance. As we go through a hierarchy from the bottom to higher levels, the technical skills lose their importance.

Conceptual Skills

Conceptual skills present managerial ability or knowledge for more abstract thinking. That means seeing the whole through analyzing and diagnosing of different states to predict the future of the business or department as a whole.

Why managers need these skills?

First, one business has more business elements or functions as selling, marketing, finance, production… All these business elements have different goals even completely opposed. Think about marketing and production as a business function and their separate goals. You’ll see the essential difference.

These skills will help managers to look outside from the goals of single business department and make decisions that will satisfy overall business goals.

Conceptual skills are vital for top managers, little for mid-level managers, and they are not required for first-level managers. As we go from a bottom of the managerial hierarchy to the top, the importance of these skills will rise.

Human or Interpersonal Managerial Skills

Human or interpersonal managerial skills present a knowledge of managers to work with people. One of the most important tasks for managers is to work with people. Without people, there will not be a need for management and managers.

These skills will enable managers to become leaders, to motivate employees for better accomplishments, to make more effective use of human potential in the business… They are most important skills for managers.

Interpersonal managerial skills are important for all hierarchical levels in the company.


These are the basic skills required for a successful management as a process. Some authors also mention other skills that when I am thinking about them, they are some part from these three primary skills.

Let’s take an example with skills about controlling. The controlling can’t be a skill, but rather a process, and one of the managerial functions. Managers perform controlling through their interpersonal managerial skills that we already described. Other additional skills that I find in the theory are skills about decision making. This also is a process and not the skill. When we have conceptual skills, we will make a better decision. Furthermore, when we have technical skills, we will make a better technical decision. Because of that I think that the basic skills every manager will need to are technical, conceptual, and interpersonal managerial skills.

At the end, I want to note something about managerial skills and business potential energy. Better managerial skills in your company will produce higher business potential energy. Because of that this type of skills are in the category of business elements that can increase your business potential energy.

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