Management is the act of getting people together to accomplish desired goals

and objectives using available resources efficiently and effectively. Since

organizations can be viewed as systems, management can also be defined as
human action, including design, to facilitate the production of useful outcomes
from a system. This view opens the opportunity to manage oneself, a pre-
requisite to attempting to manage others.

Management functions include: Planning, organizing, staffing, leading or directing,

and controlling an organization (a group of one or more people or entities) or
effort for the purpose of accomplishing a goal.

Top-Level Managers

As you would expect, top-level managers (or top managers) are the “bosses” of
the organization. They have titles such as chief executive officer (CEO), chief
operations officer (COO), chief marketing officer (CMO), chief technology officer
(CTO), and chief financial officer (CFO). A new executive position known as the
chief compliance officer (CCO) is showing up on many organizational charts in
response to the demands of the government to comply with complex rules and
regulations. Depending on the size and type of organization, executive vice
presidents and division heads would also be part of the top management team.
The relative importance of these positions varies according to the type of
organization they head. For example, in a pharmaceutical firm, the CCO may
report directly to the CEO or to the board of directors.

Top managers are ultimately responsible for the long-term success of the
organization. They set long-term goals and define strategies to achieve them.
They pay careful attention to the external environment of the organization: the
economy, proposals for laws that would affect profits, stakeholder demands, and
consumer and public relations. They will make the decisions that affect the whole
company such as financial investments, mergers and acquisitions, partnerships
and strategic alliances, and changes to the brand or product line of the
organization.
Middle Managers

A businessman works at a desk on a laptop computer.

Middle managers must be good communicators because they link line managers
and top-level management.

Middle managers have titles like department head, director, and chief supervisor.
They are links between the top managers and the first-line managers and have
one or two levels below them. Middle managers receive broad strategic plans
from top managers and turn them into operational blueprints with specific
objectives and programs for first-line managers. They also encourage, support,
and foster talented employees within the organization. An important function of
middle managers is providing leadership, both in implementing top manager
directives and in enabling first-line managers to support teams and effectively
report both positive performances and obstacles to meeting objectives.

First-Line Managers

First-line managers are the entry level of management, the individuals “on the
line” and in the closest contact with the workers. They are directly responsible for
making sure that organizational objectives and plans are implemented effectively.
They may be called assistant managers, shift managers, foremen, section chiefs,
or office managers. First-line managers are focused almost exclusively on the
internal issues of the organization and are the first to see problems with the
operation of the business, such as untrained labor, poor quality materials,
machinery breakdowns, or new procedures that slow down production. It is
essential that they communicate regularly with middle management.

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.

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.

Managerial Roles

For better understanding, Mintzberg categorized all activities into ten managerial
roles performed over the course of a day. These are as follows:

Interpersonal Roles

Figurehead – includes symbolic duties which are legal or social in nature.

Leader – includes all aspects of being a good leader. This involves building a team,
coaching the members, motivating them, and developing strong relationships.

Liaison – includes developing and maintaining a network outside the office for
information and assistance.

Informational Roles

Monitor – includes seeking information regarding the issues that are affecting the
organization. Also, this includes internal as well as external information.

Disseminator – On receiving any important information from internal or external

sources, the same needs to be disseminated or transmitted within the
organization.
Spokesperson – includes representing the organization and providing information
about the organization to outsiders.

Decisional Roles

Entrepreneur – involves all aspects associated with acting as an initiator, designer,

and also an encourager of innovation and change.

Disturbance handler – taking corrective action when the organization faces

unexpected difficulties which are important in nature.

Resource Allocator – being responsible for the optimum allocation of resources

like time, equipment, funds, and also human resources, etc.

Negotiator – includes representing the organization in negotiations which affect

the manager’s scope of responsibility.

Organizational Models
I shall begin by describing briefly the major structural and behavioral
characteristics of these three delivery systems, focusing mainly on their
organizational and economic characteristics, and on the manner in which they
regulate the performance of health providers.

The Professional Model

The existing health system has been termed “the Professional Model” because its
most salient feature is the influence and dominance physicians exercise over its
structure, its practice patterns and the regulation of its performance.
Organization
The nation's health industry is often called a “cottage” industry. This is not meant
to imply that the industry has spurned the development and use of sophisticated
technology and scientific knowledge or that it relies solely on the uneven skills of
individual craftsmen who learn their “trade” through trial-and-error. What is
meant is that—unlike other industries that have undergone organizational, as
well as technologic, revolution—the organizational structure of the health
industry in essence retains its pre-Industrial Revolution format, relying to a large
extent on small independent firms.
Health care delivery currently revolves around the central role of the individual
physician and the doctor-patient relationship. The physician functions as the
consumer's point-of-entry and guide in a complex system of small, and often
highly specialized, provider units that are only loosely related. At the outset, the
consumer selects a physician of his choice, but thereafter most health care
choices, including such critical decisions as those involving specialist/consultants,
hospital admission, prescription drugs and so on, are made by the doctor, not the
consumer. Moreover, the commitments physicians and patients make to one
another have no particular time limit, and can be quite temporary, even though
the relationship ordinarily continues through specific episodes of illness.
Economic Characteristics
The economic characteristics of the present health system reflect the size of its
basic provider firms, and the dominance professionals exert over its
organizational structure. For example, separate financial transactions take place
between consumer and providers following each major event in the health care
process. Physicians receive fees for each service they render, such as operation or
office visits, whereas hospitals are paid on a daily charge basis. Moreover, prices
for medical services are determined by physicians themselves on the basis of
“customary fees,” and hospitals determine their charges according to cost-plus
formulas. Competitive pricing is limited almost entirely to medical products
suppliers and health insurance companies, and, even in these instances,
competition is limited because of the consumer's lack of knowledge about
products he buys.
Control of Performance
The health industry is a highly regulated one whose regulatory controls are
dominated by practitioners and their professional societies and associations, and
are focused on the activities of individual practitioners. The emphasis in assuring
and assessing quality is on inputs, such as the licensure of individual practitioners,
and—to a lesser degree—on performance review by professional peers.
Consumers have very little knowledge of the quality of care provided by individual
practitioners or institutions. Examples of professional dominance of regulatory
controls include the following:
1. State laws grant physicians the “right to practice” medicine by licensure
mechanisms, and grant more circumscribed licenses to other health
 professionals and paraprofessionals, vesting control of the licensure
process by statute with professionals themselves.
2. Regulation of hospitals and other health institutions, through such
mechanisms as facility licensure, accreditation and training program
approval, similarly is vested in various professional organizations either by
statute, common law or historic practice.
3. Review of the quality of health care is conducted by means of peer and
utilization review committees and mortality conferences—procedures that
are controlled by physicians.
4. The distribution of health manpower, both by specialty and practice
location, is determined largely by the availability of training and practice
opportunities, and by individual preference.
5. Health planning agencies, whether voluntary or federally funded such as
Regional Medical Programs (RMP) and Comprehensive Health Planning
(CHP), created for the purpose of improving the quality and availability of
care, tend to be dominated directly or indirectly by health providers.

The Central Planning Model

The search for a more equitable and efficient way to deliver health care has again
drawn attention to the nationalized health systems in Western European
countries such as Britain and Sweden, and led to proposals that the United States
health system be restructured along similar organizational lines.
The Central Planning Model is based on the fundamental notion of public control
over the planning and allocation of health resources, and sometimes over the
actual management of these resources in delivering health services. This basic
approach is built into several delivery system proposals currently under discussion
in the United States. For example, under the terms of the American Hospital
Association's Ameriplan proposal, local health care corporations would report to
state health commissions and bureaus of health financing, which in turn would
report to a national health commission. The resource allocation mechanisms,
included in several national health insurance plans, would follow a similar
organizational pattern. These various proposals differ somewhat in detail, but all
are essentially variations of this basic organizational model.
In a more incipient form, this approach also can be discerned in the programs of
comprehensive health planning agencies and, to a lesser extent, in some regional
medical programs. In fact, some comprehensive health planning agencies already
have been given statutory authority to plan and control the number and location
of hospital beds and other major capital facilities.
Organization
In a fully developed health system, based on the Central Planning Model, all
medical care is provided through non-competitive regional health systems.
Generally, a planning agency or health authority is responsible for coordinating all
health resources—practitioners and facilities—within a defined region, and for
ensuring the availability of comprehensive health care services to everyone
residing in that region.
Economic Characteristics
The hallmark of the Central Planning Model is that health resources are allocated
by a central governmental body rather than by providers or the forces of a
competitive market, on the assumption that the political process is a more
reliable and effective means for assuring equitable health care for every citizen.
Control of Performance
The primary objective of assuring equitable access to quality health services
requires that the central planning agency have jurisdiction over both the
allocation of scarce resources and the performance of providers. Accordingly, the
Central Planning Model includes machinery for determining the master blueprint
that will be followed in allocating the nation's health resources. Responsibility for
resource planning and allocation within geographic regions is delegated to
regional health authorities.
Physician manpower probably would be controlled by establishing national quota
systems to assure optimum supplies of various medical specialists based on
determinations of medical need and existing specialist supplies. Selected medical
centers, with established reputations in particular specialty fields, would be given
contracts to produce a stated number of specialists to meet national quotas. The
right to practice a given specialty in a particular community would be subject to
the authority of regional planning bodies. Decisions about the size and location of
hospitals and ambulatory care centers, the kinds and location of specialized
services and facilities and so on, also would be based on national criteria. The
actual construction or acquisition of facilities, and major capital improvements
would be subject to the authority of regional planning bodies.

The Competitive HMO Model

As already indicated, a description of the Competitive HMO Model must be
somewhat hypothetical, because—although prototype HMOs exist—a truly
competitive health market does not, and the Model assumes that marketplace
forces would alter the performance of all health providers.
Organization
As the Competitive HMO Model implies, health care would be delivered by a
variety of provider units, giving consumers the opportunity to choose from among
competing HMOs and conventional providers in obtaining health care.
Competition over prices and benefits would be encouraged, and monopolies
would be discouraged. HMOs that succeed in attracting consumers would expand;
those that are unsuccessful would fail. Solo practitioners, fee-for-service medical
groups and voluntary hospitals could continue to function much as they do now,
although it is expected that a greater emphasis would be placed on organizations
delivering health services.
Economic Characteristics
In the Competitive HMO Model consumers could purchase health care either on a
fee-for-service basis from conventional providers, or by a single financial
transaction, through fixed-price contracts with HMOs. Capitation prepayment
changes the financial incentives for providers and places the obligation on them
to control costs. HMOs are responsible for the care of defined populations; thus
they can array and allocate their resources in the most cost-effective manner
possible. For example, the experience of existing HMOs suggests that capitation
payments covering both physician and hospital services lead to a substitution of
ambulatory care for inpatient care.
Prices and benefits would be strongly influenced by the competitive market
because consumers would base their purchase decisions on information about
the comparative costs, range of benefits and amenities offered by competing
providers. Unlike the fee-for-service system, HMOs and their subscribers would
measure the organization's success in terms of its ability to optimize subscriber
health at reasonable cost, rather than in terms of the number and type of services
the organization provides.
Control of Performance
Paying HMOs in advance on a capitation basis for a specified set of services
provides them with a powerful inducement to render cost-effective health care,
but it also creates an incentive to provide too few services of too low quality and
to engage in the practice of “creaming,” by limiting enrollments to persons judged
to be favorable health risks.
Thus, the quality control problem in HMOs is a unique one. Some have assumed
that the HMO strategy should logically include the creation of a new system of
regulation to guard against underservice, on the one hand, and to take advantage
of the opportunity offered by these organized health care systems to shift to a
more rational basis for monitoring and assessing the outcomes of health care, on
the other. The establishment of a health outcomes commission has been
proposed for this reason.