Peter Drucker was an influential management thinker. In his work "Managing for Results", he discusses eight perceptions of management including focusing resources on opportunities rather than problems. He advocates for management by objectives where employees and managers agree on clear objectives. Drucker also emphasizes the need for managers to focus on business effectiveness, make strategic decisions, and continuously develop their skills to address changing business needs. The presentation provides an overview of Drucker's influential work on modern management practices.
2. 2
AGENDA
1. Something about Peter.F.Drucker
History of Drucker & Drucker on Management
2. Managing for Results
Eight perceptions
What do we mean by ‘Results’?
Management by Objectives
Manager and his work
Managing for Business Effectiveness
Managerial Decision Making
The Manager of Tomorrow
3. Conclusion
4. Question
3. 3
History of Drucker
19-Nov-1909 :– Peter F. Drucker born in Vienna, Austria
1930 – Studied Law from University of Frankfurt
1933 – Moved to London and started career as financial writer
and then security analyst
1943 – Drucker emigrated and became US citizen
1970 – Became Professor of Social Science in US
2005 – Great Management Thinker died at 95
Something about Peter.F.Drucker
4. 4
Something about Peter.F.Drucker (cont)
Drucker on Management
Considered as a Father of Modern Management
Drucker, was a Writer, Management Consultant, Views
Management as a philosophy, where as F.W Taylor & H. Ford
considered it as a Science
His 39 books and popular articles explored how humans are
organized across all sectors of society
1939 – Published First book, ‘The End of Economic Man’ at the
age of 27
1946 – Wrote ‘Concept of the Corporation’ which explores
evolution of corporation and society
Drucker’s work focused on the need for manager’s and
organizations to focus on social impact
5. 5
AGENDA
1. Something about Peter.F.Drucker
History of Drucker & Drucker on Management
2. Managing for Results
Eight perceptions
What do we mean by ‘Results’?
Management by Objectives
Manager and his work
Managing for Business Effectiveness
Managerial Decision Making
The Manager of Tomorrow
3. Conclusion
4. Question
6. 6
Eight Perceptions
1. Resources and results exist outside, not inside, the business
2. Results come from exploiting opportunities, not solving problems
3. For results, resources must go to opportunities, not to problems
4. "Economic results" do not go to minor players in a given market, but
to market leadership
5. Leadership, however, is not likely to last
6. What exists is getting old
7. What exists is likely to be misallocated (i.e. according to the 80/20
Principle, the first 20% of effort produces 80% of the results)
8. To achieve economic results, concentrate
7. 7
What do we mean by ‘Results’?
Youtube link: http://www.youtube.com/watch?v=SMO7hJpVOMg
8. 8
What do we mean by ‘Results’?
The nature of results
Management practice
Delivering change
Enhancing customer relations
Enabling continuous improvement
The perceived balance of results
“Whole being greater than the sum of the parts”
9. 9
Management by Objectives (MBO)
Description
Management by Objectives
(MBO) is a process of defining
objectives within an
organization so that
management and employees
agree to the objectives and
understand what they are in the
organization.
The basic principle behind Management by Objectives (MBO) is for employees to
have a clear understanding of the roles and responsibilities expected of them. They
can then understand how their activities relate to the achievement of the
organization.
10. 10
Management by Objectives (MBO) (cont.)
Features and Advantages
Motivation
Better communication and Coordination
Clarity of goals
Subordinates have a higher commitment to objectives
Managers can ensure that objectives of the subordinates are linked
to the organization's objectives.
Limitations
It over-emphasizes the setting of goals over the working of a plan
as a driver of outcomes.
It underemphasizes the importance of the environment or context
in which the goals are set.
Companies evaluated their employees by comparing them with the
"ideal" employee
11. 11
Manager and his work
The work of a true Manager
The manager has the task of creating a true whole that is larger than the sum of
its parts. Second task is to harmonize in every decision and action the
requirements of immediate and long range future.
A Man can improve his performance as a manager by
improving his performance of these operations :
Setting objectives
Organizing the group
Motivating and communicating
Measuring Performance
Developing People
12. 12
Managing for Business Effectiveness
Managers tend to spend much of their time on the problems of short-
run economic performance.
Concentrating on the smallest number of products, product lines,
services, customers, markets, distribution channels and so on which will
produce the largest amount of revenue.
Staff efforts are concentrated on the very few activities that are
capable of producing truly significant business results.
Allocate resources, to activities that provide opportunities for high
economic results.
13. 13
Managerial Decision Making
The important decisions that really matter, are strategic. In these
specifically managerial decisions, the important and difficult job is never
to find the right answer, it is to find the right question.
Defining the problem
Analyzing the problem
Developing alternative solutions
Deciding upon the best solution
Converting the decision into effective action
14. 14
The Manager of Tomorrow
The manager will have to acquire a whole new set of tools many of
which he will have to develop himself
He needs to acquire economic tools to make meaningful decisions today
for a long range tomorrow
He must be able to make strategic decisions
He should be able to communicate information fast and clearly and he
should be able to motivate people
He must take more risks and for a longer period ahead and risk taking
decisions will have to be made at lower levels in the organization
15. 15
Conclusion
The effective business, Peter Drucker observes, focuses on opportunities
rather than problems.
Manager must consider overall performance of the organization
One and the same decision or action of a manager must always be sound
in all the areas
Whoever says responsibility also implies authority
One does not exist without the other
16. 16
Reference
Resources
Articles:
Classic Drucker, Wisdom from Peter Drucker,Harvard Business Review
Peter F.Drucker,Management by Objectives and self control
Management by Objectives, Wikipedia
http://en.wikipedia.org/wiki/Management_by_objectives
The Practice of Management by Peter F.Drucker
ISBN-13: 978-0-7506-8504-7; Paperback: 345
Imprint: Butterworth Heinemann, MAY-2007
Managing for Results by Peter F.Drucker
# ISBN-13: 978-0887306143; Paperback: 256
Publisher: Collins, April 14, 1993