Conceptual skills present knowledge or ability of a manager for more abstract thinking. That means he can easily see the whole through analysis and diagnosis of different states. In such a way they can predict the future of the business or department as a whole.
Why managers need these skills?
As a first, a company contains more business elements or functions as selling, marketing, finance, production… All these business elements have different goals even completely opposed goals. Think about marketing and production as a business function and their specific goals. You’ll see the essential difference. The conceptual skills will help managers to look outside their department’s goals. So, they will make decisions that will satisfy overall business goals.
Conceptual skills are vital for top managers, less important for mid-level managers, and not required for first-level managers. As we go from a bottom of the managerial hierarchy to the top, the importance of these skills will rise.