A technical manager has the technical know-how of the industry, whereas a people manager has the personal know-how of the team.

Many times, technical managers were initially individual contributors who were promoted due to their output. People managers, on the other hand, are generalists who studied management but have minimal experience with the product.

Each type has its strengths and weaknesses. If you want a manager who understands the product and technology, then hire a technical manager. If you want a manager who understands social psychology, then hire a people manager.

Ideally, you want someone with both skillsets—a manager who not only has the hard skills of the business (IQ), but also the soft skills of dealing with people (EQ).