This document discusses managerial effectiveness and interpersonal skills. It defines managerial effectiveness as performing managerial activities effectively and efficiently. An effective manager has qualities like basic knowledge, skills, creativity and self-awareness. Effective managers focus on their contribution, build on strengths, concentrate on one task at a time and make systematic decisions. Interpersonal skills are crucial for managers to communicate, motivate teams and develop relationships both internally and externally. Transactional analysis is a technique to understand behavior and relationships through analyzing ego states, transactions, scripts, games and life positions. Managers need to develop interpersonal skills like active listening, empathy and resolving conflicts.