Peter drucker management

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 Demographic
Demographic 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 Paradigm
Management 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


Theory of Business
A 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 Outside
The 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 mission
2) 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 task
2) Focus on the task
3) Define results
4) Define quality
5) Grant autonomy to the knowledge worker
6) Demand accountability
7) 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


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 right
3)Get other to buy the decision
4) Build action into the decision
5) 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 people
3) Consider each candidate’s strenghts
4) Discuss each candidate with his/her colleagues and bosses.
5) Make sure the appointee understands the job & what it requires
6) Report back on it once he/she is in the job.
There are five ground rules for the decision maker:
1) Accept responsibility for any people
2) Accept also that people who do not perform must be removed
3) Find the position that fits employee’s strengths
4) It is manager’s responsbility to make the right people decision every time
& for every position
5) 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 Strategies
Fustest 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.


The Entrepreneurial Strategies (Cont’d)
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.


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 NICHES
The toll-gate 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

The specialty-skill strategy
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 specialty-market strategy
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 Teams
Team 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 partners
3) To gain access to people with specialized knowledge
4) To outsource noncore activities to specialist
5) 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 organization
2) To think through what information regarding the outside is meaningful and
needed for the organization, and then to work on getting it into usable form
3) To decide what results are meaningful for the institution
4) To set priorities for the organization
5) To place people into key positions
6) 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 are
2) Ask for input
3) Enable each boss to perform, play to each boss’s strenghts
4) Keep each boss informed
5) Protect each other bosses from surprise
6) 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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