The Practice of Management

Peter F Drucker1955

Presnted byVijay arjun.v19047

About the authorBorn in Vienna in 1909Educated in Austria and EnglandDoctorate in Law from GermanyCame to the US in 1937Management ConsultantTaught in

Bennington CollegeNew York UniversityClaremont Graduate School (Since 1971)

The Practice of Management1955

The first true management book

Depicts management as a distinct function

Management has distinct responsibilities

Role of management

Dynamic,life-giving element in every businessManager is the key player-without him resourses of production remain resources and never become production

Jobs of managementFunction :economic functionThree jobs of management

Managing a bussinessManaging managersManaging worker and work

Managing a Business

Managing a Business Purpose of Business

To Create Customers Profit is result, not a cause, of business activity Who is the Customer ? What does the Customer Buy?

needs ability to spend taste preference

What is the Value to the Customer? Not only price, durability,purity,status

Functions of BusinessMarketing

Product planning Inventory control Pricing Distribution Promotion Sales and services

Innovation

What SHOULD our Business Be?

To find out four things- Market potential, market trendsWhat are the changes in market structure to be

expected with the change in taste and preference etc.

Innovation will change the customer’s want, create new ones.

What wants the customer have that are till now has not been satisfied?

Business Performance Objectives

Market ShareInnovationProductivityPhysical and Financial ResourcesProfitability

Manager Performance and Development

Worker Performance and AttitudePublic Responsibility

Managing Managers

Three Stonecutters“I am earning a living”“I am being the best stonecutter I can be”

“I am creating a cathedral”

Measurement of performance

Organizing for Peak PerformanceEngineering the Job

Motivating for Peak Performance

Managing Worker and Work

Managing Worker and WorkWork is to be performed; Resource is to perform

Resources vary from unskilled to artist in their work i.e., from wheel barrow pusher to vice-president

The Work of the ManagerSet ObjectivesOrganizeMotivate and CommunicateMeasurementDevelop PeopleDecision making

Decision makingWhatever a manager does ,he does through the decision making and affect the future existence of the enterprise.

Every decision tends to centre on the problem solving

5 Steps in Making DecisionsDefine the ProblemAnalyze the ProblemDevelop Alternative SolutionsFind the Best SolutionImplement the Decision

The Manager of Tomorrow1. Must manage by objectives2. Must take more risks 3. Must be able to make strategic

decisions4. Must be able to build an integrated

team5. Must be able to communicate fast and

clear6. Must see the business as whole7. Must relate to total environment

Responsibilities of Mgmt

Management as a Leading Group

Operate at a Profit and Grow

Social Impact

Conclusions

Questions?