Management. Revised Edition. Peter F. Drucker With Joseph A. Maciariello

Transcription

1 Management Revised Edition Peter F. Drucker With Joseph A. Maciariello

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4 Learning Objectives After successfully completing this lesson, you will be able to: a. Explain what is management b. Explain what is management by objectives c. Describe what managers do d. Recall the roots and history of management

5 Contents 1. Introduction 2. What is management? 3. Who are the managers? 4. The new definition of a manager 5. What do managers do? 6. The manager s resource: people 7. Management: a practice, not a science 8. Note: the roots and history of management 9. The emergence of large-scale organization 10. The first management boom 11. The work of the 1920s and 1930s

6 1. Introduction Management was first popularized by Frederick Winslow Taylor to describe what he had formerly (and more accurately) called work study or task study ; we call it industrial engineering today. But when Taylor talked about what we now call management and managers, he said the owners and their representatives

7 Management by Objectives Can be defined as a process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individual s major areas of responsibility in terms of the results expected, and use these measures as guides for operating the unit and assessing the contribution of each of its members. George S. Odiorne

8 2. What is Management? They are the specific organ of every institution At some point, size turns into complexity. At this point owners no longer run their own businesses even if they are the sole proprietors Management precedes and even outranks ownership. The owner has to subordinate himself to the enterprise s need for management and managers

9 3. Who are the Managers? Early in the history of management a manager was defined as someone who is responsible for the work of other people The most rapidly growing group in today s organizations is composed of people who are management in the sense of being responsible for contribution to and results of the enterprise but who are not responsible for the work of other people

10 First-line supervisors Whether in the factory or in the office, are not commonly expected to plan and to organize, or to take much responsibility for their contribution and results Thus they are not managers

11 4. The New Definition of a Manager Management group, all of whom have executive responsibility for contribution. Some have responsibility for the work of others Others who do not carry this responsibility And a third group, somewhat ambiguous and in between: people whose job is that of a team leader or task-force captain, or people who combine the function of adviser to top management with supervisory and administrative responsibilities over a staff in a given area

12 5. What do Managers do? There are five basic operations in the work of the manager. Together they result in the integration of resources into a viable, growing organism: 1. Sets objectives 2. Organizes 3. Motivates and communicate 4. Measurement 5. Develop people, including himself or herself

13 6. The Manager s Resource: People The manager works with a specific resource: people And the human being is a unique resource, requiring particular qualities in whoever attempts to work with it Developing people still requires integrity of character What a manager does can be analyzed systematically and be learned. One qualification cannot acquire but must bring to the task. It is not genius: it is character

14 7. Management: a Practice, not a Science During the years since the 1930s, every developed country has become a society of institutions The performance and the survival of the institution depend on the performance of management Management is not just a matter of experience, hunch, or native ability

15 Improving Management Performance Managers can improve their performance in all areas of management and at all levels of management through: a) Systematic study of principles b) Acquisition of organized knowledge c) Continuing analysis of performance in all areas of work

16 The Ultimate Test of Management The ultimate test of management is performance. Achievement rather than knowledge remains, of necessity, both aim and proof. Management is a practice rather than a science or a profession, though containing elements of both

17 The Attempt to Professionalize Management Only damage to society and the economy could result from the attempt to professionalize management by limiting access to management to people with a special academic degree The end would be the replacement of managers by bureaucrats and the stifling of innovation, entrepreneurship, and creativity

18 8. Note: The Roots and History of Management Management, both as a practice and as a field of study, has a respectable history, in many different countries, going back almost two centuries When the early economists from Adam Smith ( ) to Karl Marx ( ) did their work, management did not exist J. B. Say ( ), French economist, was an early follower of Adam Smith. But in his own works, the pivot is not the factors of production. It is the entrepreneur a word Say coined who directs resources from less productive into more productive investments and who thereby creates wealth

19 9. The Emergence of Large-scale Organization This occurred simultaneously around 1870 in two places In North America the transcontinental railroad emerged as a managerial problem On the continent of Europe, the universal bank entrepreneurial in aim, national in scope, and with multiple headquarters made obsolescent traditional structures and concepts and required management

20 10. The First Management Boom After World War I there came what might be called the first management boom It was sparked primarily by two of the most highly respected statesmen of the period, the American Herbert Hoover ( ) and the Czech Thomas G. Masaryk ( ) The period between the two World Wars was a period of stagnation, a period in which the highest goal that any national government or any economy except that of the United States could conceive was a return to what had been

21 11. The Work of the 1920s and 1930s Management as a discipline also began to be taught in the interwar years. The Harvard Business School first began in the 1930s to teach courses in management though still mainly in production management At the same time, the Massachusetts Institute of Technology started advanced management work with young executives in mid-career

22 Management Consulting The American James McKinsey ( ) and the Englishman Lyndall F. Urwick ( ) started management consulting, that is, consulting no longer confined to technical problems but dealing with fundamental management concerns, such as business policy and management organization Urwick also classified and codified the work on the structure of management and on the function of the executive that had been done until that time

23 Summary In the 20th century our society became a society of organizations Organizations depend on managers Once an organization grows beyond a very small size, it needs managers who practice professional management This means management based on discipline and informed by the objective needs of the organization and of its people, rather than management based on ownership or on political appointment

24 Summary (cont.) Every organization needs people managers who do the specific work of management: planning, organizing, integrating, measuring, and developing people It needs managers who take responsibility for contribution Responsibility for contribution, rather than rank or title or command over people, defines the manager And integrity rather than genius is the manager s basic requirement

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