Economic Skills That Are Important For Managers In Carrying Out Their Roles

When someone has worked for a long time in a company, of course they want to be a leader. Usually, employees expect a promotion to fill the manager position they are after.

Of course it takes courage and ability for a manager to be able to lead his team. When a team is faced with a challenge, managers must have the ability to find the right solution. The required solution must also accommodate the needs of the team.

It can be said that a manager is a pillar for its members. However, is it enough to become a manager by mastering leadership and managerial skills? The ability of a manager is not only limited to the field of knowledge that is occupied, but also the skill set as a supporter.

The Importance of Skill Sets for a Manager

As a manager, the core function of the role you have is managing the team to achieve business goals or targets. Managing a team is one aspect of a manager's job. A manager needs skills to lead team members so that they are always compact and can be relied on each other.

Not only do they need strong leadership and managerial skills, managers need to know some basic business skills. A manager must be able to identify opportunities in the developed business so that it can achieve the target. Therefore, they need to have knowledge about business, especially those related to the economy.

Economic Knowledge That Is Important For Managers

Economic concepts and principles are used to maximize the effectiveness of achieving the goals of the manager and his team. Here are some economic skills that managers need to master.

1. Economic Concepts and Framework

To be a manager who can bring success to the team, it is necessary to have a basic knowledge of how the market works. This knowledge must be known to know what can affect the business. The change in influence is something that can bring the business more success or maybe vice versa.

With this knowledge, a manager can better understand the picture of business competition that is being experienced. It can also be an internal and external force that plays a role in the business. If a manager has conceptual knowledge, it will be easier to have the right decisions about taking certain steps or decisions.

2. Ability to Know Product Demand

In order for their performance to be effective, it is important for a manager to apply economic knowledge to supply and demand. This is necessary so that the business is superior and always competitive. To develop these skills, managers need a solid understanding of basic concepts and how to apply them to business.

Several techniques to evaluate demand and economic conditions according to the market are carried out directly, among others.

• Conduct surveys and form focus groups. Surveys usually collect large amounts of measurable data, while focus groups produce information of a qualitative nature.
• Submit Auction. To find out how much consumers are willing to pay for the products offered, the company can hold an auction. Some types of auctions that are effective are the open outcry auction and the vickrey auction.

In addition, there are several indirect methods to determine demand, including conducting experiments and looking at customer preferences. With this method, the data will show what variables the customer uses to buy the product. Managers can adjust variables that can increase product sales and reduce non-conforming variables.

By evaluating demand, managers can take advantage of the evaluation results to become a new business strategy. Managers can use an understanding of market demand to set prices for a company's products or services. The right product price will increase the effectiveness of the company's income so that it can achieve maximum profit.

3. Economic Analysis Ability

A manager needs to do an economic analysis of the business and how the business market operates. In addition to requiring general analytical skills, managers also need to know specific statistical analysis, one of which is conjoint analysis.

Conjoint analysis is a method used to evaluate the importance of certain product features to customers. Performing this analysis allows managers to determine which features are most important to customers.

In addition, it is also necessary to conduct a relative cost analysis to compare the company's costs related to activities in the business model against competitors. Analysis allows managers to find opportunities to maximize revenue and stay ahead of competitors.

4. Ability to Communicate Research Results

Managers must have the ability to communicate effectively with team members. When doing research and finding something, the manager must be able to explain the findings to team members. Communicating the findings both in writing and verbally, can support the team to identify deeper business opportunities.

5. Strategic Thinking

A manager needs to have strategic thinking to increase business opportunities. Strategic thinking skills are very important to make decisions from the results of their analysis and understanding of economic concepts.

Strategic thinking skills include the ability to think critically about complex problems and plan for the future. This includes analytical skills, problem solving, communication skills, planning, and management.

That is the importance of having basic economic skills for a manager. In general, this ability is very important to help the company's strategic planning. To determine the efficiency of resource utilization, the Financial Analysis program can provide an important role for managers to obtain the right information from financial analysis.