VCE Business Management Practice Exam 2026 – The All-in-One Guide to Master Your Exam!

The management skill that is primarily about building effective relationships is interpersonal skills. These skills are essential for fostering communication, collaboration, and trust among team members and stakeholders. Interpersonal skills encompass a range of abilities, including active listening, empathy, conflict resolution, and the ability to motivate others. Strong interpersonal skills enable managers to connect with their teams on a personal level, understand their needs and concerns, and create a positive work environment.

Building effective relationships is crucial for achieving organizational goals, as it facilitates teamwork and ensures that individuals feel valued and engaged. Managers who excel in interpersonal skills are often able to enhance group dynamics, encourage open dialogue, and support a culture of collaboration, which ultimately leads to improved performance and productivity within the organization.

In contrast, the other skills mentioned, while important in their own right, do not focus primarily on relationship-building. Decision making pertains to the ability to make choices and solve problems; leading involves guiding and motivating a group towards achieving objectives; and planning is about setting goals and outlining steps to achieve them. While these activities may benefit from strong interpersonal skills, they do not center on the relational aspect as directly as interpersonal skills do.