Peter drucker management

MANAGEMENT

PETER F. DRUCKER

The very best leaders are first & foremost effective managers

1-5: responsibilities of managers, responsibilities leadership group of an organization.

6-9: numerous, interrelated tasks and practices managers must acquire to fulfill their responsibilities.

10: in detail the new demands placed on managers and management by the information revolution

Who is Peter Drucker?

A social ecologist, writer, consultant, & retired professor.

Author of 41 books, have been translated into 37 languages.

Regular columnist in the Wall Street Journal for 20 years.

Has Published articles in professional journals & publications

including The Economist, Harvard Business Review, The Atlantic Monthly, Fortune, Harpers.

Awardee of the Presidential Medal of Freedom,

the U.S.’s highest civilian honor, and orders from the governments of Japan and Austria.

Holds 25 honorary doctorates from American, Belgian, Czech

, English, Spanish, and Swiss universities.

Served as the president of the Society for

the History of Technology from 1955 to 1960.

Preface

Introducing knowledge worker:“Own their means of production, for they own their knowledge. And their knowledge is

portable; it is between their ears. They outlive any employing organization”

What do you do? “I'm a tax specialist, I'm a metallurgist”

Source: Google Image

Introduction

What is Management?Management is tasks. Management is a discipline. But management is also people. every achievement of management is the

achievement of manager. Every failure is a failure of manager.

Who are the managers?Those who have responsibility for contribution. Function rather than power has to be distinctive criterion and the

organizing principle.

What do managers do?1) Set objectives: what the objective should be, what goals in each area of objective should be, decide what has to be done

to reach these objectives, make the objective effective by communicating them.

2) Organizes: Analyze the activities, decisions, and relations needs, classify the work, divide it into manageable activities-> manageable jobs, group the units into organization structure

3) Motivates & communicate: Make a team out of the people that are responsible for various Jobs.

4)Measurement: establish target and yardstick, communicate the meaning of the measurements and their findings to subordinate

5) Develops people: including the manager itself.


Part 1: Management New Realities

Knowledge is All

Knowledge Economy:1) Borderless ness, because knowledge travels even more effortlessly than money

2) Upward mobility, available to everyone through easily acquired formal education

3) The potential for failure as well as success. Anyone can acquire the "means of production"-that is, the knowledge required for the job-but not everyone can win.


New DemographicDemographic tends are having significant political and economic effects in developed countries.

Low birth rates in some countries are escalating political tensions over immigration policies.

The aging population in developed countries is straining existing social pension system, leading to pressure to increase the traditional retirement age.

Increased life expectancies, especially among knowledge workers, should make second and parallel careers possible and desirable.


The Future Of The Corporation & The Way Ahead

Some of the key assumptions on which the corporation was invented are now being reversed. First, the specialized nature of knowledge, the reduction in communication costs, and the crisscross of technology are having a profound impact on reversing the century trend toward integrating the separate activities of the corporation into a hierarchy. The process of integration is being reversed by the process of disintegration.


Management’s New ParadigmManagement as Business Management:Not completely true, Management is the specific and distinguishing organ of any and all organizations.

The one right organization: Instead of searching for the right organization, management needs to learn to look for, to develop, to test: The organization that fits the task.

There is one right way to manage people- or at least there should be. One does not "manage" people. The task is to lead people. And the goal is to make productive the specific strengths and knowledge of each individual


Part 2: Business Performance

Theory of BusinessA theory of the business has three assumptions:

There three assumptions must fit one another and reality. The theory of the business must be understood throughout the

organization.


The Purpose & Objective of A Business

Marketing and innovation are the two result areas with which the setting of objectives has to begin. And then, there is the need for objectives with respect to

all resources: people, capital, and key physical resources.

Profit & Profitability?

Profit and profitability come at the end, they are survival needs of a business and therefore require

objectives. But the needed profitability also establishes limitations on all the other objectives.


Making The Future Today!

It is possible to identify and prepare for the future that has already happened.It is futile to try to guess what products and processes the future wil want, but it is possible to decide what idea one wants to make reality in the future,

and to build different business on such an idea.

The key factor for business will not be overpopulation that we have been warned for many years, but under population of the developed countries.


Strategic Planning:The Entrepreneurial Skills

Strategic planning prepares today's business for the future. The aim of strategic planning is action now.

Part 3: Performance in Service Institution

Managing Service Institution in the Society of Organizations

To make service institution and service staffs perform requires:1) clear objective and goals

2)priorities on which resources can be concentrated.

3)clear measurement of accomplishment

4) organized abandonment of the obsolete


What Successful & Performing Nonprofits are Teaching Us

1) No bland mission statements Focus Their Mission Statement on Specific Strategies & Action

"to turn society's rejects-alcoholic, criminals, derelicts-into citizens“

2) Successful Mission Statement Focus on the OutsideThe Community & Customer

3)Know how to manage volunteers


The Accountable School

The knowledge society & knowledge workers require high level of literacy, strength-based education & continuous

learning.


Performance in Service Institution

Rethinking government should start by acquiring each agency to immediately define its performance

objective, its quality objective, and its cost objective.

This should be followed by the adoption of the formal processes of continuous improvement and

benchmarking.

Entrepreneurship in the Public-Service Institution

There are 4 requirements for successful innovation in the public-service institution, 2 of the important are:

1) Provide a clear definition of mission2) Establish goals that are attainable & stated in terms of

the optimum rather than the theoretical maximum


Part 4: Productive Work & Achieving Worker

The main challenges to managing work and working are the changed

psychological and social position of the manual worker. Work is

changing, especially as more & more married women of all classes are

working in the developed countries.


Managing The Work & Worker in Manual Work

There are number of steps to improve knowledge-worker productivity. They include:1) Define the task2) Focus on the task3) Define results4) Define quality5) Grant autonomy to the knowledge worker6) Demand accountability7) Build into tasks continuous learning & teaching

Part 5: Social Impacts & Social Responsibilities

In our society of pluralistic institution, each institution must focus on its narrow mission if it is to achieve

results & meet the minimum test of social responsibility.

Part 6: The Manager’s Work & Jobs

Why Managers: Lesson of The Ford Story

Managers are not helpers and their jobs are not delegated. Their jobs are autonomous and grounded in the needs of

the enterprise.


Design & Content of Managerial Jobs

A manager's job should always be based on necessary task. It should be a real job that makes a visible (if not a measurable)

contribution toward the objectives of the entire enterprise. It should have broadest scope & authority possible. Should be

directed and controlled by the objectives of the performance rather than by their superior.


Developing Management & Managers

Management development is based on the genuine needs of organizations and managers alike. Management

development tied to the needs of the organization, manager development tied to the needs of the individual.

Manager development is self-development, the aim of manager development is excellence.


The Spirit of Performance

The purpose of organization is to enable ordinary human beings to do extraordinary things. The test of an organization's leadership is, therefore, the spirit of

performance. This requires the specific practices rather than preachment or charisma. It requires the realization that integrity is the one absolute requirement of managers &

leaders


Part 7: Managerial Skills

The Elements of Effective Decision Making

Good decision makers don't make many decisions. They make decisions that make a difference.

The step in making important decisions are: 1) Define the problem

2) Decide on what is right3)Get other to buy the decision

4) Build action into the decision5) Test the decision against actual results

6) Building continuous learning into executive decisions


The Elements of Effective Decision Making (Cont’d)

Japanese Decision Making Process&

Franklin Roosevelt’s Decision Process


How To Make People Decision There are five steps in making people decisions:

1) Carefully think through the assignment. 2) Look at 3 to 5 qualified people3) Consider each candidate’s strenghts4) Discuss each candidate with his/her colleagues and bosses.5) Make sure the appointee understands the job & what it requires6) Report back on it once he/she is in the job.

There are five ground rules for the decision maker: 7) Accept responsibility for any people8) Accept also that people who do not perform must be removed9) Find the position that fits employee’s strengths10) It is manager’s responsbility to make the right people decision every time & for

every position11) Newcomer should preferably be put first into an established position, where

expectations are known & where they can be helped if necessary.

Part 8: Innovation & Entrepreneurship

The Entrepreneurial StrategiesFustest With the Mostest

Entrepreneur aims at leadership, if not a dominance, of a new market or a new industry. Being Fustest with the mostest is not

necessarily aim at creating a big business right away.


Hitting Them Where They Ain’t (Creative Imitation)

A strategy that is “imitation” in its substance. But it is creative because entrepreneur applying the strategy of creative innovation understands what the

innovation represents better than the people who made it & who innovated

Creative imitation is likely to work most effectively in high-tech areas for one sample reason: high tech innovators are least likely to be market focused and most

likely to be technology and product focused.

The Entrepreneurial Strategies (Cont’d)



Hitting Them Where They Ain’t (Entrepreneurial Judo)

The Japanese master looks for he strength that is his opponent’s pride & joy. He assumes, and does so with high probability that the opponent bases his strategy

on this strength in every fight. Then he turns his opponent’s strength into the opponent’s fatal weaknesses that defeats the opponent. This is the entrepreneurial

judo strategy.


ECOLOGICAL NICHESThe toll-gate strategy

The specialty-skill strategy

The specialty-market strategy


The product has to be essential to a process. The risk of not using it must be infinitely greater than the cost of the product

Unlike the toll-gate companies, theirs is a fairly large niche; yet it still unique. It wasobtained by developing high skill at a very early time.

The major difference between the specialty- skill & specialty –market is that the former is built around a product/ service and the latter around specialized knowledge of a market. Otherwise, they are similar.


Part 9: Managerial Organization

Strategies & Structure

Good Organization structure does not guarantee performance. But poor or in appropriate structure impedes performance– and performance is the test of

organization structure.


Three Kinds of TeamsTeam Building has now become buzzword in American organizations, yet the results are not overly impressive. The major reason why team building is not

successfuly applied is because the executives belief that there is just one kind of team, while actually there are 3 kind of teams. Each different in its structure, behavior & demand from its members, in its strengths, its vulnerabilities, its

limitation & its requirement.


Alliances

Mergers & Acquisitions and divestitutes have been around for a long time. Oganizations generally enter alliances for one of five reasons: 1) To obtain access to new, distinct technology 2) To achieve synergy between the strenghts of two independent partners3) To gain access to people with specialized knowledge 4) To outsource noncore activities to specialist5) To extend a company’s geographic reach

Alliances are risky. Alliance are difficult. But are increasingly necessary for growth.


The CEO in the New Millenium

The CEO in the new millenium has six specific tasks. They are:1) To define the meaningful outside of the organization2) To think through what information regarding the outside is meaningful and

needed for the organization, and then to work on getting it into usable form3) To decide what results are meaningful for the institution4) To set priorities for the organization5) To place people into key positions6) To organize top management

Part 10: New Demands on the Individual

New Demands on the Individual

Knowledge workers are likely to outlive their employing organization. Even if knowledge workers postpone entry into the labor force as long as possible—if, for instance, they pursue education till their late twenties to get a doctorate. They are likely with present life expectancies in the developed countries, to live into their

eighties. Their average working life, in other words, is likely to be fifty years.But the average life expectancy of a successful business is approximately thirty

years and in the period we are living now, it could be less.Therefore, workers, and especially knowledge workers, will outlive any one

employer, and will have to be prepared for more than one job, more than one assignment, more than one career.

Managing The Boss

There are seven specific keys to success in managing bosses:1) Make a boss list to identify who your bossess are2) Ask for input3) Enable each boss to perform, play to each boss’s strenghts4) Keep each boss informed5) Protect each other bosses from surprise6) Never underrate a boss

All managing the boss requires is a little thinking, a little common sense. But it does require some works.


The Educated Person

The knowledge society changes the very idea about the definition of educated person. In earlier societies, the educated person was an ornament. Now th

educated person is the knowledge’s society’s chief representative & key resource. This brings new responsibilities and new demands on the individual.

The educated person will have to be able to understand the world’s cultures, religions & and traditions and will have to become familiar with knowledge in

multiple disciplines, because changes in one discipline often originate from innovations in another disciplines. This requires continuous learning & teaching.


Conclusion: The Manager of Tomorrow

Manager of tomorrow will have to learn how to manage in situations where they do not have command authority, where they are neither controlled nor controlling.

The key to the productivity of knowledge workers is to make them concentrate on the real assignments. One of the worst problem in managing knowledge workers is the assumption among knowledge workers that if you are understanable, you are vulgar.

With respect to managing social impact and social responsibility, managers will have to learn how to think through systematically & carefully the difficult & risky trade-offfs between conflicting needs & conflicting rights

Peter drucker management

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