Managerial Process

Skills
 SYLLABUS
Dynamics of entrepreneurship- commitment &determination, leadership
Dynamics of entrepreneurship-Opportunity ,Obsession , tolerance of risk
Dynamics of entrepreneurship-ambiguity &uncertainty, self-reliance &
ability to adapt
Dynamics of entrepreneurship-support from significant others,
motivation to excel
Intraprenurship, Entrepreneurship projects
Entraprenurship projects
Methods of generating ideas
Creative problem solving techniques
Lateral thinking
Analytical skills
 Reference
The Essentials of Managing Change Harvard
Business School Press
Organization Behaviour Fred Luthans
 Management is a not simple task, because it
needs knowledge and experience.
Therefore, there is hierarchy, and possibilities
to go through it.
There is not existing individuals that after
receiving educational skill become a top
manager.
 What are Managerial Skills?

Knowledge to fulfill some activities or tasks.

Knowledge can be learned. But, it also can be acquired
through practical fulfillment of these activities. Therefore,
skills can be acquired through learning and experience of
individuals.
Skills as some type of talent.
Talent is something personal in an individual and represent a
native gift from nature about something in that individual.
All individuals cannot be artists. Usually artists are born
with the gift of art and after that they develop their talent in
quality art skills through educational systems.
 Managerial skills those are skills used from
managers that enable them maintaining
efficiency in the way how employers
performing working tasks.
Because of that managers must have a skill
with which they will manage people and
technology with the purpose of effective and
efficient fulfillment of their working tasks.
THREE TYPES OF MANAGERIAL SKILLS

Robert Kaz identifies three types of skills that

are essential for a successful management
process:
Technical,
Conceptual and
Human skills.
 Technical Skills

As the name of these skills tells us, these are skills about
technique of fulfillment of tasks. These are not only for working
on machines, but also can be skills to performing sales, about
marketing and so on.
For example, some individual work in a sales department and
have skills about sales that were developed through education
and experience. This person is perfect to become some day
sales manager because have great technical skills from sales.
Technical skills are most needed for first-level managers, but
for the top managers, there is not needing for this type of skills.
As we go through a hierarchy the bottom to upper levels the
technical skills lose their signification.
 Conceptual Skills

Conceptual skills are ability or knowledge of managers for

abstract thinking that mean to see the whole through
analysis and diagnose of different states and to predict the
future state of the business as a whole.
Why is needed this skill? Firstly, one business is composed
from several business elements as selling, marketing,
finance, production. All of these business elements have
different objects even completely opposed as marketing
and production.
This skill helps top managers to look outside from single
objects of business elements and to take decisions that will
bring fulfillment of overall business objects.
 Conceptual skills are most needed for top
managers, little for mid-level managers, and it
is not needed for first-level managers. As we
go from a bottom of the managerial hierarchy
to the top, significance of these skills is
increasing.
 Human Skills

Human skills are knowledge of managers to work with

people. The most important task for managers is to work
with people. Without people, there is not needed for
management and managers.
These skills will enable managers to become leaders, to
motivate employees for better accomplishment of their
tasks, to make more effective use of human potential in the
business.
These are most important skills for managers. Human skills
are needed equally on all hierarchical levels of
management.
 These are the basic managerial skills needed for a
successful management as a process. Lets take an
example with skills about controlling. This is one of the
functions of management, and we accomplish controlling
function through the human skills that we described
previously.
Other additional skills that are skills about a decision
making. This is the process and not the skills. When we
have conceptual skills we will make a better decision.
Furthermore, when we have technical skills we will make
a better technical decision.
 What is Entrepreneurship?
Capacity to take risks
Ability to own and organize
Desire and capability to innovate and diversify
(Stepanek, 1962)

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 What is an Entrepreneur?
An Entrepreneur (ahntra pra nur) is a
person who organizes and manages a
business undertaking, assuming the
risk for the sake of profit. Any person
(any age) who starts and operates a
business is an entrepreneur.
 Who is an entrepreneur?
Person conducting own business (Webster)
Person who sets up business deals in order to
make profits (Collins Cobuild)
Organizer of an economic venture, one who
owns, organizes, manages, and assumes the
risks of the business (Chandrashekhar)

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 Entrepreneur
An entrepreneur is a person who has possession of a new
enterprise, venture or idea and is accountable for the inherent
risks and the outcome.
The term was originally a loanword from French and was first
defined by the Irish-French economist Richard Cantillon.
Entrepreneur in English is a term applied to a person who is
willing to launch a new venture or enterprise and accept full
responsibility for the outcome. Jean-Baptist Say, a French
economist, is believed to have coined the word "entrepreneur" in
the 1800's - he defined an entrepreneur as "one who undertakes
an enterprise, especially a contractor, acting as intermediatory
between capital and labour.
 Leadership attributes
The entrepreneur leads the firm or organisation
and also demonstrates leadership qualities by
selecting managerial staff. Management skill
and strong team building abilities are essential
leadership attributes for successful
entrepreneurs.
Scholar Robert. B. Reich considers leadership,
management ability, and team-building as
essential qualities of an entrepreneur.
 Entrepreneurs emerge from the population and become
leaders because they perceive opportunities available and are
well-positioned to take advantage of them.
An entrepreneur may perceive that they are among the few to
recognize or be able to solve a problem. Joseph Schumpeter
saw the entrepreneur as innovators and popularized the uses
of the phrase creative destruction to describe his view of the
role of entrepreneurs in changing business norms.
Creative destruction encompasses changes entrepreneurial
activity makes every time a new process, product or company
enters the market.
 Influences, personality traits, and
characteristics
The most significant influence on an individual's decision to
become an entrepreneur is workplace peers and the social
composition of the workplace. Entrepreneurs also often possess
innate traits such as extroversion and a propensity for risk-
taking.
According to Schumpeter, an entrepreneur characteristically
innovates, introduces new technologies, increases efficiency,
productivity, or generates new products or services.
An entrepreneur acts as a catalyst for economic change and
research indicates that entrepreneurs are highly creative
individuals who imagine new solutions by generating
opportunities for profit or reward.
 There is a complexity and lack of cohesion between research studies
that explore the characteristics and personality traits of, and
influences on, the entrepreneur. Most studies, however, agree that
there are certain entrepreneurial traits and environmental influences
that tend to be consistent.
Although certain entrepreneurial traits are required, entrepreneurial
behaviours are dynamic and influenced by environmental factors.
Shane and VenKataraman (2000) argue the entrepreneur is solely
concerned with opportunity recognition and exploitation; however,
the opportunity that is recognised depends on the type of entrepreneur
which Ucbasaranet al. (2001) argue there are many different types
dependent on their business and personal circumstances.
 Psychological studies show that the psychological propensities for male
and female entrepreneurs are more similar than different. Perceived
gender differences may be due more to gender stereotyping.
There is a growing body of work that shows that entrepreneurial
behavior is dependent on social and economic factors. For example,
countries which have healthy and diversified labor markets or stronger
safety nets show a more favorable ratio of opportunity driven rather
than necessity-driven women entrepreneurs. Empirical studies suggest
that women entrepreneurs possess strong negotiating skills and
consensus-forming abilities.
New research regarding the qualities required for successful
entrepreneurship is ongoing, with work from the Kauffman Institute
forming the statistical basis for much of it.
 Types of entrepreneurs
Social Entrepreneur
Serial Entrepreneur
Lifestyle Entrepreneur
 Social Entrepreneur
Social entrepreneur is motivated by a desire to help, improve
and transform social, environmental, educational and
economic conditions. Key traits and characteristics of highly
effective social entrepreneurs include ambition and a lack of
acceptance of the status quo or accepting the world "as it is".
The social entrepreneur is driven by an emotional desire to
address some of the big social and economic conditions in the
world, for example, poverty and educational deprivation,
rather than by the desire for profit.
Social entrepreneurs seek to develop innovative solutions to
global problems that can be copied by others to enact change.
 Social entrepreneurs act within a market aiming to create
social value through the improvement of goods and
services offered to the community.
Their main aim is to help offer a better service improving
the community as a whole and are predominately run as
non profit schemes. Zahra et al. (2009: 519) said that
social entrepreneurs make significant and diverse
contributions to their communities and societies,
adopting business models to offer creative solutions to
complex and persistent social problems.
 Serial Entrepreneur

A serial entrepreneur is one who continuously

comes up with new ideas and starts new
businesses. In the media, the serial entrepreneur
is represented as possessing a higher propensity
for risk, innovation and achievement.
Serial entrepreneurs are more likely to
experience repeated entrepreneurial success.
They are more likely to take risks and recover
from business failure.
 Lifestyle Entrepreneur
A lifestyle entrepreneur places passion before profit when
launching a business in order to combine personal interests
and talent with the ability to earn a living. Many entrepreneurs
may be primarily motivated by the intention to make their
business profitable in order to sell to shareholders.
In contrast, a lifestyle entrepreneur intentially chooses a
business model intended to develop and grow their business in
order to make a long-term, sustainable and viable living
working in a field where they have a particular interest,
passion, talent, knowledge or high degree of expertise.[
 A lifestyle entrepreneur may decide to become self-
employed in order to achieve greater personal freedom,
more family time and more time working on projects or
business goals that inspire them.
A lifestyle entrepreneur may combine a hobby with a
profession or they may specifically decide not to expand
their business in order to remain in control of their
venture.
Common goals held by the lifestyle entrepreneur include
earning a living doing something that they love, earning
a living in a way that facilitates self-employment,
achieving a good work/life balance and owning a
business without shareholders.
 Many lifestyle entrepreneurs are very dedicated to their
business and may work within the creative industries or
tourism industry,[ where a passion before profit approach to
entrepreneurship often prevails.
While many entrepreneurs may launch their business with a
clear exit strategy, a lifestyle entrepreneur may deliberately
and consciously choose to keep their venture fully within
their own control.
Lifestyle entrepreneurship is becoming increasing popular
as technology provides small business owners with the
digital platforms needed to reach a large global market. [
 Why entrepreneurship?
Process of creating something different, with
value, by devoting necessary time and effort,
by assuming the accompanying financial,
psychological, and social risks, and receiving
the resulting rewards of monetary and
personal satisfaction (Bowen and Hisrich,
1986).

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 Role of the Entrepreneur
An innovator who combines technical innovations
and financial finesses.
Important role in producing competitive products,
processes, and services.
Generation of new employment
Local and regional economic development
Improved allocation of resources and transfer of
technologies

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