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Book Review on 'The Essential Drucker'
Introduction
BornNovember 19, 1909 (Died
November 11, 2005)
Place of Birth Kaasgraben, Austria
Graduated from University of Frankfurt
OccupationManagement consultant,
educator and author
Number of Books Written 39
Awards and Honors
Presidential Medal of Freedom (2002), Grand Silver Medal for
Services to the Republic of Austria (1974), Grand Gold
Decoration for Services to the Republic of Austria (1991)
Worked at
Bennington College (1942 - 1949), Professor of
Management at New York University (1950 - 1971),
Founder of Claremont Graduate University
About Peter F. Drucker
The Essential Drucker
Selection of 26 chapters from Drucker’s sixty years of work
Compiled by Drucker’s Japanese friend Atsuo Ueda
Edited by Cass Canfield Jr. for USA and UK
Aim of the book is to provide an introduction to management via Drucker’s work
About The Book
Origins of Management
The World War II – First Example of Management in Action
Troops
• One fifth of the Population of all other belligerents combined
• Had almost as many men in uniforms
War Material
• Produced more war material than others combined
Transportation
• Managed to transport men and arms on fighting fronts as far as China, Russia, India, Africa and western Europe
Allies Won – Their
Victory Achieved by Manageme
nt
Accountability in Management
Peter Drucker Believes That Management…
Is not Solely about Short Term gains to Stakeholders
It has to be accountable for Performance
Should be in charge of defining Performance
Should be in charge of measuring Performance
Should Ensure that Performance is enforced
Dimensions of Management
Dimensions of Management
Establish Mission or Objective
for a Business
Make work
Productive and Worker Effectiv
e
Manage Social
Impacts and
Social Responsibilities
Purpose & Objective of a Business
Purpose of a BusinessMarketing
Innovation
Main Purpose
is to Create a Customer
What it takes to Define Objectives
Objectives are needed in all areas on which survival
of business depends
Objectives must make possible concentration of
resources and efforts
Objectives must be operational and capable of being converted
into specific targets
Objectives must be driven from What our Business is , what it will be and what it should be
Objectives Must Be Set in Following Keys
Marketing
Human Resources
Physical Resources
Social Responsibility
Innovation
Financial Resources
Productivity
Profit Requirement
Social & Environmental Impacts
Social & Environmental Impacts
Responsibility for Impacts – The First Job of Management
is to Identify Impacts.
Deal with Impacts – Elimination of Impact
into opportunity should be attempted. If it
cannot be done, find a regulation.
Social Problems Business Opportunities – Social Problems represent
challenges and are a source of opportunity.
Limits of Social Responsibility – Social
responsibility cannot be fulfilled by a business
without minimum profitability.
Limits of Authority – Management should resist responsibility of a social
problem that would compromise the
performance of the business.
Ethics of Responsibility – The social responsibility should be taken up in everyday honesty and
social responsibility should not be forced upon anyone.
Information Executives Need Today
• Traditional cost accounting measure what it cost to do something.• Activity based costing also records the cost of not doing.
Traditional to activity based cost accounting
Management by Objectives & Self-Control
Objective
Multiple People have different contributions
towards…
Should be derive from goals of the business enterprise
Manager must be able to measure his performance
against his business goals.
Management should utilize reports and
procedures to ensure self-control
towards…
Picking People – The Basic RulesThink through the assignment and understand the job description.
Look at a number of potentially
qualified people.
Think hard about how to look at the
candidates and if they fit into the
assignment.
Discuss each of the candidate with
several people who have worked with
them.
Make sure the appointee
understands the job..
The Entrepreneurial Business
“Entrepre
neurial
business
es tre
at
entrepre
neurship as a
duty. They are
disciplin
ed about it,
they w
ork at i
t and th
ey
pract
ice it
.”
The Don’ts on an Entrepreneurial Businesses
Do not mix management
units and entrepreneurial units together
Innovation better not be
diversification. An existing business
must innovate where it has
expertise
Avoid making one’s own business
entrepreneurial by acquisition as the managers of
the acquired company are more likely to
leave.
New Venture
A New Venture has Following Requirements
Focus on The Market •The new venture needs to build in systematic practices to remind itself that a product or a services is defined by the customer not by the producer. It needs to work continuously in respect to the utility and value that its product or services contribute to customers.
Financial Foresight •The new venture needs cash flow analysis, cash flow forecasts and cash management. A growing new venture should know twelve months ahead of time how much cash it will need, when and for what purposes.
Building a Top Management •Once the business starts growing, it needs a management team at the top. Goal and objectives for each area needs to be set. Also founder has to learn to be become leader of a team rather than star with helpers.
Effectiveness
Effectiveness Must be Learned
Why we need Effectiveness?
Who is an executive?
Executive Realities
The Promise of Effectiveness
Can Effectiveness be learned?
Contribution
OWN COMMITMENT CONTRIBUTION OF KNOWLEDGE
RIGHT HUMAN RELATION
Focus on Contribution
Concentrate on your Strengths
Work on improving your strengths
Identify where intellectual arrogance causes disabling ignorance
Remedy your Bad Habits
Waste as little effort as possible on improving areas of low competence
What are My strengths
One is a Reader or listener?
How one learns?Whether one
perform well under stress?
Do not try to change yourself!!
HOW DO I PERFORM??How do I Perform
What are my Values?
Where do I belong?
...this is who I am!!!
Record time
Manage time
Consolidate Time
Know Your Time
Effective Decisions
The Decision ProcessR
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.
Converting the decision into action.
The Decision Process
Communications
Fundamentals of Communication
Communication
Communication is
Perception
Communication Makes Demands
Communication and
Information
Communication is
Expectation
Leadership
Qualities of a LeaderThe foundation of effective leadership is thinking through the organization's mission, defining it and establishing it clearly. The leader sets goals, defines priorities and maintains the standards.He makes compromises with constraints of reality which are compatible with mission and goals.
The leader sees leadership as responsibility rather than rank and privilege.
Effective leader encourages his subordinates, pushes them and glories them.
He sees subordinates as his triumphs rather than threats.
Effective leader hold himself ultimately responsible for the mistakes of his subordinates.The final requirement of leadership is trust. The only definition of a leader is someone who has followers. Trust is the conviction that the leader means what he says.
Innovation
Principles of Innovation
Systematic Innovation begins
with the analysis of the opportunities.
An Innovation to be effective has to be simple and it
has to be focused.
Effective Innovation start small. It should try to do one specific thing. It may
be to enable a moving train draw electric power while it runs along rails
Innovation is work. It requires knowledge. Innovators rarely work more than one area. An Innovator in financial area is unlikely to bring innovations
in healthcare.
To succeed innovators must build on their strengths.
Innovators look at opportunities that fits the
company, puts to work what it is good at and have shown capacity for performance.
Thank You
Name Roll Number
Almog Ramrajkar 41
Vaibhav Sawant 55
Naresh Naik 31
Preeti Patel 33