Peter drucker management

This presentation is a summary of One of the most influential management books by Peter Drucker

1. MANAGEMENT PETER F. DRUCKER

2. 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

3. 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.

4. 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

5. 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. Source: Google Image

6. Part 1: Management New Realities

7. Knowledge is All Knowledge Economy: 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. Source: Google Image

8. 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. Source: Google Image

9. 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. Source: Google Image

10. 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 Source: Google Image

11. Part 2: Business Performance

12. 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. Source: Google Image

13. 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. Source: Google Image

14. 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 . Source: Google Image

15. Strategic Planning: The Entrepreneurial Skills Strategic planning prepares today's business for the future. The aim of strategic planning is action now.

16. Part 3: Performance in Service Institution

17. Managing Service Institution in the Society of Organizations To make service institution and service staffs perform requires: clear objective and goals 2)priorities on which resources can be concentrated. 3)clear measurement of accomplishment 4) organized abandonment of the obsolete Source: Google Image

18. What Successful & Performing Nonprofits are Teaching Us 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 Source: Google Image

19. The Accountable School The knowledge society & knowledge workers require high level of literacy, strength-based education & continuous learning. Source: Google Image

20. 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 .

21. 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 Source: Google Image

22. Part 4: Productive Work & Achieving Worker

23. 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. Source: Google Image

24. 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

25. Part 5: Social Impacts & Social Responsibilities

26. 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.

27. Part 6: The Manager’s Work & Jobs

28. 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. Source: Google Image

29. 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. Source: Google Image

30. 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. Source: Google Image

31. 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 Source: Google Image

32. Part 7: Managerial Skills

33. 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 Source: Google Image

34. The Elements of Effective Decision Making (Cont’d) Japanese Decision Making Process & Franklin Roosevelt’s Decision Process Source: Google Image

35. How To Make People Decision There are five steps in making people decisions: Carefully think through the assignment. Look at 3 to 5 qualified people Consider each candidate’s strenghts Discuss each candidate with his/her colleagues and bosses. Make sure the appointee understands the job & what it requires Report back on it once he/she is in the job. There are five ground rules for the decision maker: Accept responsibility for any people Accept also that people who do not perform must be removed Find the position that fits employee’s strengths It is manager’s responsbility to make the right people decision every time & for every position Newcomer should preferably be put first into an established position, where expectations are known & where they can be helped if necessary.

36. Part 8 : Innovation & Entrepreneurship

37. The Entrepreneurial Strategies F ustest 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. Source: Google Image

38. 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) Source: Google Image

39. 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. Source: Google Image

40. ECOLOGICAL NICHES The toll-gate strategy The specialty-skill strategy The specialty-market strategy The Entrepreneurial Strategies (Cont’d) 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. Source: Google Image

41. Part 9 : Managerial Organization

42. 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. Source: Google Image

43. 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. Source: Google Image

44. Alliances Mergers & Acquisitions and divestitutes have been around for a long time. Oganizations generally enter alliances for one of five reasons: To obtain access to new, distinct technology To achieve synergy between the strenghts of two independent partners To gain access to people with specialized knowledge To outsource noncore activities to specialist To extend a company’s geographic reach Alliances are risky. Alliance are difficult. But are increasingly necessary for growth . Source: Google Image

45. The CEO in the New Millenium The CEO in the new millenium has six specific tasks. They are: To define the meaningful outside of the organization 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 To decide what results are meaningful for the institution To set priorities for the organization To place people into key positions To organize top management

46. Part 10 : New Demands on the Individual

47. 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.

48. Managing The Boss There are seven specific keys to success in managing bosses: Make a boss list to identify who your bossess are Ask for input Enable each boss to perform, play to each boss’s strenghts Keep each boss informed Protect each other bosses from surprise Never underrate a boss All managing the boss requires is a little thinking, a little common sense. But it does require some works. Source: Google Image

49. 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. Source: Google Image

50. 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