Managing Business

This article discusses the importance of managerial skills at each level of management and the VRIO framework for determining the competitiveness of resources and capabilities. It also explores the four functions of management and their significance in organizational success.

Running Head: MANAGEMENT 0
Managing Business

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Executive summary
In recent time, competition has increased largely that requires the manager to possess several
skills. At each managerial level, several skills are needed for a manager to possess. Among
all, the important skills are conceptual, human, and technical skills. In addition to this, all the
four functions of management play an important role in the organization. The four functions
of management include planning, organising, directing and controlling. Several reprocess as
well as capabilities presents in the firm. Therefore, it is essential to determine the competitive
of those resources. In this, VRIO (valuable, rare, imitable, and organised) helps in greater
way.

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Contents
Introduction...........................................................................................................................................3
Different managerial skills needed at each management level...............................................................3
VRIO framework to determine the competitiveness of its resources and capabilities..........................4
Importance of four functions of management........................................................................................6
Conclusion And Recommendation.........................................................................................................7
References.............................................................................................................................................9

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Introduction
Management is such a wide concept that requires to effectively understanding for ensuring
the success in organization. For this, it is also essential for the manager to adopt various
managerial skills that are required to use. The report starts with discussing the importance of
managerial skills that required at each level of management. Furthermore, it has also
discussed the VRIO framework that helps in determining the competitiveness of its
capabilities and resources. The discussion ends by providing the importance of all the four
functions of management.
Different managerial skills needed at each management level
Management skills play an essential role in formulating the each function of management.
Some skills differ in each of the industry. In addition to this, several managerial skills are
universal across each of the work environment. In order to ensure the success in planning,
organizing, leading, and controlling, managers are required to use the variety of skills. Skill is
the capability of person to do something. Managerial skills are divided in the three categories:
human relations, technique skills, and conceptual skills. In the increasing global workplace,
managers are required to develop some special set of skills in order to deal with management
issues globally (Sunindijo, 2015).
Technical skills: expertise and knowledge in the specialized areas proves to be the technical
skill for manager. In addition to this, manager is also required to apply that knowledge.
Preparation of financial statement, designing of office building, programming of computer as
well as analysing the market research are some of the example of technical skills (Noe,
Hollenbeck, Gerhart and Wright, 2017). These types of skills are significant for the manager
as they work with all the employees who are producing the goods and services. It is true that
there are some changes occurred that requires the manager to work accordingly by bringing
some changes in their skills. A manager is not always able to give their 100 per cent by
utilising these services. In such a case, their skills not prove to be effective for the
organization.
Human relations skills: These skills are the interpersonal skills that manager can use to
achieve the goals by effectively using the human resources. These skills include the effective
communication, capability in understanding the human behaviour, as well as motivating the

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employees for accomplishing their goals. It is also required by the manager to being sensitive
and good to the individual needs, providing positive feedback to employees, as well as
showing the willing for empowering subordinates are all the example included in human
relation skills. The manager at each managerial function also requires this skill. For example-
at the time of controlling, it is essential for the manager to provide the proper feedback to all
the employees. There is time when manager is not effective to provide the feedback. Some
managers also use the autocratic style that is not effective at each of the managerial level.
Conceptual skills- this include the capability to view the organization as whole as well as
understanding the several parts, and at last assessing how an organization relates to the
external environment (Helfat and Peteraf, 2015). All these skills are required at each of the
managerial level. Good and effective conceptual skills are especially required for the
manager at top of the pyramid.
VRIO framework to determine the competitiveness of its
resources and capabilities
The resource-based view is such perspective that tends to find out the link between the
internal characteristic of company as well as its performance. Therefore, organizations are
required to look inside the company for searching the competitive advantage instead of
looking at the competitive environment. The resources of firm is defined as the capabilities,
assets, firm attributes, organizational procedure, knowledge and information that are
controlled by the firm in order to improve its effectiveness and efficiency (Bromiley and Rau,
2016). Resource are divided into two first: tangible (machinery, equipment, building, land,
and cash), and intangible (patent, brad reputation, trademark, and license). Fir transferring all
these resources into the sustainable competitive advantage, resource must require having the
four attributes. All these four attributes are summarized into the VRIO framework
(Margerison, 2017).
Valuable- First of all, all the resources is required to be valuable. As per the resource based
view, resources are valuable as they help the firms for implementing such strategies that
helps in improving the effectiveness and efficiency by mitigating all the threats and
exploiting the opportunities. The other way for assessing the value of any cost invested in
resource is looking at its net present value. If no resource will prove to be valuable, the firm
will get the competitive disadvantage (Knott, 2015).

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Rare- Resource can also be rare. Resource that can be acquired or few companies are said to
be rare resources. If some various players in the industry possess the valuable resource, every
industry will have the ability in exploiting the resources; therefore, implementation of
common strategy can give the competitive advantage to the firm (Akter, Wamba,
Gunasekaran, Dubey and Childe, 2016). Such situation is known as the competitive equality.
In case, if any company possess such resources that are rare or valuable, it will definitely
have less competitive advantage.
Inimitable
Although all the rare and valuable resources can help, the companies to engage in any of the
strategy that firm cannot adopt since the other firm do not have sufficient resources. It can
also provide the local company great advantage but it is true that competitors will definitely
try to imitate all these resources (Lopes, Farinha, Ferreira and Silveira, 2018). Another
criterion that resources tend to meet should be costly or hard to substitute or imitate. As per
the resource-based view, resources can be imperfectly imitable due to the following reasons:
 If the significant resources of the company the mixture of the strength of its
interpersonal relations, social network, its reputation among customers and suppliers, and
company culture, it will be quite hard for all the competitors to build the identical social
network as it depends on varied factors (Lioukas, Reuer and Zollo, 2016).
 Choices that are made in the past tend to influence the choices that company has in
present as well as future. Similarly, if any company has located its facility on such location
that will prove to be valuable location than anticipated prior, I will have imperfectly imitable
physical resource.
 Casual ambiguity will present if link between the resource that are controlled by the
focal and the sustainable competitive advantage is not understood fully. In such case,
competitors will not be able to match the main company, as they do not know which of the
resources are required to be imitated.
Organized
The resources do not create the advantage by themselves if company is not organized in such
a way that can capture the value and exploit the resource. The focal company can therefore
require coordinating the resource effectively and can assemble. In addition, without the
correct organization to use, acquire or monitor the resources that are involved, even the

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companies with rare, valuable, and imperfect imitable resource will not be capable to create
the competitive advantage. In this way, VRIO framework plays an essential role in the
organization (Chatzoglou, Chatzoudes, Sarigiannidis and Theriou, 2018).
Importance of four functions of management
Management functions play an essential role in the organization. The first function of
management is planning. It deals with the future course of action by deciding in advance
what to achieve in future and how to achieve it. It helps in the effectiveness of all the
operation by properly using all the skills by bridging out the gap from where the organization
and where it wants to go, it assists in bringing the efficiency in all the functions of
organization. This function also precedes all the other function of manager that require the
due consideration all part of the management. Thus, planning is the systematic thinking
regarding the means and ways for achieving the desired goal (Collings, Wood and Szamosi,
2018). If proper planning is done, it will help in properly utilizing a; the human as well as
non-human resources. It also helps in clarifying the responsibility of all the employees
required in the operation. Another function of management is organizing. It is the process of
bringing together the financial, physical, and human resource. It tends to develop the
productive relationship among all of them for achieving the goal. By forming productive
relationship, it brings out the effectiveness and efficiency in the operations of organization.
By organizing the business properly (raw material, capital, tool, and personnel), it brings pout
the effectiveness. It is significant, as without the organisation of all these things properly, it
will not bring out the positive results. The organising skills of manager also help in ensuring
the departmental or company units to run smoothly. From the establishment of internal
structure and procedure to knowing which of the team and employees are best for the specific
task, keeping ach and everything organized through the day-to-day operation are the
important function of management. For fulfilling the organising function of management,
managers are required to be recognise how to response to new challenges. This can also come
into practice by re allocating the task from to other team or by adjusting the timeline of
project (Kerzner and Kerzner, 2017).
As compare to the two significant function of management, directing is also considered to be
the essential managerial function. Directing is that part of the management function that
actuates the organizational methods for working effectively. It is the main function from
where the working in organization begins. It is also considered to be the life of the enterprise

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that sets the action of people. It is significant as without the action of people, organization
will not able to achieve the success. It is also important because it deals directly with the
guiding, influencing, supervising, as well as motivating the subordinates for accomplishing
the goals of organization. By including the essential element, it is important for the
organization in successful operation. In this management function, motivation is also
included that increase the chances of effectiveness in the working of employees.
Controlling is the last function of management that proves to be quite essential. It plays a
significant part in the organization for effective and efficient functioning of operations in the
organization. It ensures that everything is done in the proper manner. An efficient system of
management helps the organization. It also helps in preventing all the deviations. Removing
of all the deviations in the organization is significant that is not possible without the proper
controlling of activities or output. By identifying the shortcomings, it helps in removing those
issues by taking alternative course of action for such issue (Shatalova, Chebykina, Zhirnova
and Bobkova, 2016). Controlling ensures the correction of performing activities of all the
subordinates for making sure that the organization plans and objectives are achieved as
desired.
Conclusion And Recommendation
In the limelight of above discussion, it can be concluded that competition has increased to a
great extent that requires the manager to acquire several skills. IN order to compete
effectively with the competitors, manager required to possess several essential skills. It is true
that all these skills are significant at each of the managerial level. Due to changing
conditions, managers are also required to have some special skills that will help the
organization. IN addition to this, it is also required by the organization to manipulate its
resource for making its best use. In this case, it becomes essential to determine the
competitiveness of all the resources. VRIO framework is the effective framework if it’s used
in effective manner in the organization. At last, planning, organising, directing, as well as
controlling are the four essential functions of management. Without their best use, it is not
possible to plan something best and getting the best output.
Therefore, it is recommended to the organization for using VRIO framework by the
competent person so that it can make the best of it. In addition to this, planning is the primary

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function of function that requires being effective in order to preceded all the other functions
of management.

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References
Akter, S., Wamba, S.F., Gunasekaran, A., Dubey, R. and Childe, S.J. (2016) How to improve
firm performance using big data analytics capability and business strategy
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Bromiley, P. and Rau, D. (2016) Operations management and the resource based view:
Another view. Journal of Operations Management, 41, pp.95-106.
Chatzoglou, P., Chatzoudes, D., Sarigiannidis, L. and Theriou, G. (2018) The role of firm-
specific factors in the strategy-performance relationship: Revisiting the resource-based view
of the firm and the VRIO framework. Management Research Review, 41(1), pp.46-73.
Collings, D.G., Wood, G.T. and Szamosi, L.T. (2018) Human resource management: A
critical approach. In Human Resource Management (pp. 1-23). United Kingdom: Routledge.
Helfat, C.E. and Peteraf, M.A. (2015) Managerial cognitive capabilities and the
microfoundations of dynamic capabilities. Strategic Management Journal, 36(6), pp.831-850.
Kerzner, H. and Kerzner, H.R. (2017) Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Knott, P.J. (2015) Does VRIO help managers evaluate a firm’s resources?. Management
Decision, 53(8), pp.1806-1822.
Lioukas, C.S., Reuer, J.J. and Zollo, M. (2016) Effects of information technology capabilities
on strategic alliances: Implications for the resource‐based view. Journal of Management
Studies, 53(2), pp.161-183.
Lopes, J., Farinha, L., Ferreira, J.J. and Silveira, P. (2018) Does regional VRIO model help
policy-makers to assess the resources of a region? A stakeholder perception approach. Land
use policy, 79, pp.659-670.
Margerison, C.J. (2017) Managerial Consulting Skills: A Practical Guide: A Practical Guide.
Routledge.

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Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2017) Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Samson, D., Donnet, T. and Daft, R. (2018) Fundamentals of Management [6th Asia-Pacific
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Shatalova, T.N., Chebykina, M.V., Zhirnova, T.V. and Bobkova, E.Y. (2016) Controlling
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