This study investigates the influence of managerial skills on organizational performance in private banks operating in Harar City, Ethiopia. The research was motivated by the growing recognition that managerial competence plays a decisive role in shaping employee effectiveness and overall institutional success. The objective was to determine whether specific managerial skills-namely technical, communication, human relation, conceptual, and supervisory skills-contribute significantly to the performance of banks. A mixed-methods approach was employed, combining quantitative surveys with qualitative interviews and focus group discussions. Data were collected from 286 participants across 12 branches, including both employees and clients. Statistical analysis revealed that all five categories of managerial skills positively affect organizational performance, with communication (r = 0.72, p 0.01), human relation (r = 0.68, p 0.01), and technical skills (r = 0.65, p 0.01) exerting the strongest influence. The findings highlight that effective managerial practices foster improved employee commitment, customer satisfaction, and operational efficiency, thereby enhancing the competitive position of banks. The study concludes that managerial skills are not merely supportive attributes but essential drivers of organizational success. It recommends that bank managers prioritize continuous development in communication, interpersonal relations, and technical expertise to sustain growth and performance. By emphasizing skill development, private banks can strengthen their resilience in a dynamic business environment and achieve long-term strategic objectives. Managers should prioritize continuous development in communication, interpersonal relations, and technical expertise.
Alemseged Mengiste (Fri,) studied this question.