Skills Management is an essential concept of human resource management in which a skill inventory may be created for each employee and managers can assign tasks to workers based on worker’s abilities. This concept is not fully practiced for two reasons: i) employee’s skills are not effectively evaluated and documented, ii) tool support is deficient to manage this complex task. Ineffective skill management of an organization fizzle tasks assigned to the incompetent employees and this may lead to project failure. To fill up this gap, a survey is conducted across various software organizations to find out the best practices for the skill management and to gather requirements for skills management framework. Based on survey findings, a mathematical framework is proposed that calculates the soft and hard skills of employees automatically based on time and achievements as skill increases or decreases over time. In this framework, the Skills Calculation Engine (SCE) is developed for the managers to enhance the capacity of appropriate decisions making in assigning tasks to the rightly skilled workers. This framework is also useful for organizations as it can increase profitability as tasks are assigned to the most appropriate employees. The SCE is implemented as a Windows-based application to calculate skills, store skills in skills inventory, and assign tasks based on an employee’s skills. The skills management tool is evaluated in a facilitated workshop; furthermore, a feature-wise comparison of the tool is also made with existing tools.