5 Key Competencies of Effective Managers

An effective management must have somebody that has certain essential competencies and abilities. The management reflects the type of leader behind it. 

Now, what makes a manager effective? How can we determine that their management is effective? The short answer could be: because they maximise the use of available resources, minimise loss and makes the organisation profitable. 

However, these 3 approaches constitute what is expected of a manager. We should also include creating effective work teams, generating the necessary synergy, being a tenacious communicator and taking the risks that only a true leader would take, among others. 

Competencies of an effective leader 

  1. Planning – Organising – Directing – Supervising – Controlling: Every manager must know the management cycle or process. This is where effective management begins. The effective manager must know not only the concepts, but also the proper application of each step or stage. 
  2. The manager that does not make use of this tool has limited scope and effectiveness. Below we briefly explain each one of these competencies: 
  • Planning: it implies establishing priorities and defining goals, as well as the strategies that will lead to those goals. The control system is defined to assess the management effectiveness, in this case. 
  • Organising: it is a process for establishing responsibilities, positions, authority and allocation of (material and financial) resources. Communication channels are created. 
  • Directing: clearly providing the specific instructions for achieving the goals. Positions and responsibilities are assigned. It also entails leadership, motivation, and the use of communication channels. 
  • Supervising: not only does it mean assessing the team’s performance, but also providing support to individual performance. Note: people are supervised and goals are controlled. 
  • Control: the control system is implemented. It is the constant results assessment, until the end of the term (the year or project.) Deviations must be corrected and adjusted to the plan. 
  1. Teamwork: Being part and knowing how to be part of a high-performance work team. The manager is not an isolated entity; this person is part of a complex system called company, comprised of interdependent areas and individuals.  

The proper performance of the company depends on the correct performance of the different areas or managements comprising it. The effective manager knows how to be part of the company’s work team. However, they should also know how to choose, bring together and direct the best available human talent to develop their management. 

Should any of these two approaches be not adopted, or if they are poorly achieved, the general management of the company will not improve. 

  1. Effective management of available resources: Knowledge and proper use of each resource (such as human, financial, material and time resources) will immediately pay off in the company. 

The effective manager knows when, how, and the number of resources that should be used. It is clearly a competency acquired from academic education, constant training and management experience (including successes and failures.) 

  1. Effective communication: listening with empathy and communicating clearly. The effective manager must be an experienced communicator, not only outside the company, but also within it. 

The company requires executives capable of creating assertive communication channels. Nothing must be “assumed”; instead, things should be positively understood. 

The manager must be able to analyse the circumstances and the environment and develop the best communication strategy at all levels of the organisation and outside it, without fear and knowing the implications of what they will say and how they will say it. 

  1. Knowing the specific management of their area: It is highly convenient for the manager to broadly know the responsibilities they undertake (or will undertake). Whether it is the financial, HR, operations, sales, etc. area, the effective manager knows all details and technical, legal and operating implications within their area.