Managing for results

Managing for ResultsPeter.F.Drucker

Prof: Dr.Peter MattheisScientific Management Approaches and

Strategy-oriented Techniques

Dang Dinh ThanhTran Quang Minh Tan

Presented by:

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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. Conclusion4. Question

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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

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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

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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. Conclusion4. Question

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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

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What do we mean by ‘Results’?

Youtube link: http://www.youtube.com/watch?v=SMO7hJpVOMg

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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”

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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.

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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

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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

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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.

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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

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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

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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

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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.DruckerISBN-13: 978-0-7506-8504-7; Paperback: 345Imprint: Butterworth Heinemann, MAY-2007 Managing for Results by Peter F.Drucker# ISBN-13: 978-0887306143; Paperback: 256 Publisher: Collins, April 14, 1993

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Question

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