The Practice of Management

Peter F Drucker
1955
Presnted by
Vijay arjun.v
19047
 About the author
Born in Vienna in 1909
Educated in Austria and England
Doctorate in Law from Germany
Came to the US in 1937
Management Consultant
Taught in
Bennington College
New York University
Claremont Graduate School (Since 1971)
The Practice of Management
1955

The first true management book

Depicts management as a distinct function

Management has distinct responsibilities

 Role of management
Dynamic,life-giving element in
every business
Manager is the key player-
without him resourses of
production remain resources and
never become production
Jobs of management
Function :economic function
Three jobs of management
Managing a bussiness
Managing managers
Managing worker and work
Managing a Business
Managing a Business
 Purpose of Business
 To Create Customers
 Profit is result, not a cause, of business activity
 Who is the Customer ?
 What does the Customer Buy?
 needs
 ability to spend
 taste
 preference

 What is the Value to the Customer?

 Not only price, durability,purity,status
Functions of Business
Marketing
 Product planning
 Inventory control
 Pricing
 Distribution
 Promotion
 Sales and services

Innovation
What SHOULD our Business Be?

To find out four things-

Market potential, market trends
What are the changes in market structure to be expected
with the change in taste and preference etc.
Innovation will change the customer’s want, create new
ones.
What wants the customer have that are till now has not
been satisfied?
 Business Performance
Objectives
Market Share
Innovation
Productivity
Physical and Financial Resources
Profitability

Manager Performance and Development

Worker Performance and Attitude
Public Responsibility
Managing Managers
Three Stonecutters
“I am earning a living”
“I am being the best stonecutter
I can be”
“I am creating a cathedral”
Measurement of performance

Organizing for Peak Performance

Engineering the Job

Motivating for Peak Performance

Managing Worker and
Work
Managing Worker and Work
Work is to be performed; Resource
is to perform
Resources vary from unskilled to
artist in their work i.e., from wheel
barrow pusher to vice-president
The Work of the Manager
Set Objectives
Organize
Motivate and Communicate
Measurement
Develop People
Decision making
 Decision making
Whatever a manager does ,he does
through the decision making and
affect the future existence of the
enterprise.
Every decision tends to centre on
the problem solving
5 Steps in Making Decisions
Define the Problem
Analyze the Problem
Develop Alternative Solutions
Find the Best Solution
Implement the Decision
The Manager of Tomorrow
1. Must manage by objectives
2. Must take more risks
3. Must be able to make strategic decisions
4. Must be able to build an integrated team
5. Must be able to communicate fast and clear
6. Must see the business as whole
7. Must relate to total environment
Responsibilities of Mgmt
Management as a Leading Group

Operate at a Profit and Grow

Social Impact
Conclusions
Questions?