Drucker’s Five Basic Operations in the

Work of Manager
1. A manager sets objectives.
• He determines what the objectives should be.
• He determines what has to be done to reach these
objectives.
• He decides what has to be done to reach these
objectives.
• He makes the objectives effectives effectively by
communicating them to the people whose
performance is needed to attain them.
 Setting objectives requires analytical and synthesizing
ability.
 For instance, setting objectives is a problem of
balances: a balance between business results and the
realization of principles one believes in; a balance
between immediate needs of the business and those of
the future; a balance between desirable ends and
available means.
2. A manager organizes
 He analyzes the activities, decisions, and relations
needed.
 He classifies the work.
 He divides it into manageable activities and further
divides the activities into manageable jobs.
 He groups these units and jobs into an organization
structure.
 He selects people for the management of these units
and for the jobs to be done.
 Organizing requires analytical ability.
 For it demands the most economical use of scarce
resources.
 But it deals with human beings, and therefore stands
under the principle of justice and requires integrity.
 Analytical ability and integrity are required for the
development of people.
3. A manager motivates and
communicates
 He makes a team out of the people that are
responsible for the various jobs.
 He does that through the practices with which he
works.
 He does it in his own relations to the men with whom
he works.
 He does through constant communication, to and from
his subordinates, to and from his superior, and to and
from his colleagues.
 The skill needed for motivating and communicating is
primarily social.
 Integration and synthesis, instead of analysis, are
needed.
 Justice dominates as the principle; economy is
secondary.
 And integrity is of much greater importance than
analytical ability.
4. Measurement is the fourth basic
element in the work of manager
 He establishes yardsticks, benchmarks.
 He sees to it that each man has measurements
available to him which are focused on the performance
of the whole organization and which, at the times,
focus on the work of the individual and help him do it.
 He analyzes, appraises, and interprets performance.
 As in all other areas of his work, he communicates the
meaning of the measurements and their findings to his
subordinates, to his superiors, and to colleagues.
 Measuring requires analytical ability.
 Measurement should be done with self-control.
 It should not be abused to control or dominate people.
5. A manager develops people,
including himself
Management Skills

Top
Management

Middle Conceptua
Management l Skills
Human
Skills
Lower-level Technical
Skills
Management
1. Conceptual Skills
 The cognitive ability to see the organization as a whole
and the relationship among its parts.
 Conceptual skills are needed to perceive significant
elements in a situation and abroad conceptual patterns;
 Need to fashion the organizational vision and mission or
the corporate purpose and set overall goals and
strategies.
 Conceptual skills involves the manager’s thinking,
information processing, and planning abilities.
 Involves knowing where one’s department fits into entire
organization and how the organization fits into the
industry, the community, and the broader business and
social environment.
 It means the ability to think strategically”- to take the
broad and long term view.
 Top management needs more conceptual skill.
2. Human Skills
 The ability to work with and through other people and
to work effectively as a group member and as a leader
who gets things done through others.
 This skill is demonstrated in the way a manager relates
to other people, including ability to motivate, facilitate,
communicate, coordinate, lead, and resolve conflicts.
 A manager with human skills allows subordinates to
express themselves without fear of ridicule and
encourages participation.
 Middle management needs more human skills.
3. Technical Skill
 The understanding of and proficiency in the performance
of specific tasks.
 Technical skill includes mastery of the methods,
techniques, and equipment involved in specific functions
such as engineering, manufacturing, or finance.
 Technical skill also includes specialized knowledge,
analytical ability, and the competent use of tools and
techniques to solve problems in that specific discipline.
 Many managers got promoted to their first management
job by having excellent technical skills.
 However, technical skills as managers move up the
hierarchy.
 First-line or supervisory management needs more
technical skills.
Management Vertical Levels

Top Managers

Middle Managers

Non-managerial
Employees
Top Manager
◦ A manager who is at the top of the organizational
hierarchy and responsible for the whole
organization.
◦ Top managers are responsible for formulating and
communicating a shared vision and mission of the
organization
◦ Shaping a corporate culture
◦ Setting organizational goals
◦ Defining strategies, monitoring and interpreting the
external environment
◦ Nurturing an entrepreneurial spirit that help the
organization keep up with the pace of change.
 Making decisions that effect the entire organization
 They look at the longer-term future, scan the
environmental trends,
 Take responsibility for the overall success of the
organization.
 They have such little as chairman-CEO, president,
COO, managing director, and executive vice-president.
2. Middle Manager
 A manager who works at the middle level of the
organization and is responsible for major departments.
 Middle managers are responsible for implementing the
strategies and policies set by top management.
 They are concerned with tomorrow or the near future
 Expected to establish good relationships with peers
around the organization
 Encourage teamwork
 And avoid conflicts.
3. First-line Manager
 A manager who is at the first-line level and is directly
responsible for the production of goods and services.
 They are responsible for groups of non-management ,
the people, the rank and the file employees.
 Their primary concern is the application of rules and
procedures to achieve efficient production or delivery
of services, provide technical assistance, and motivate
subordinates.
 Their time horizon is short, with emphasis on
accomplishing day-to-day objectives.
 They carry such tittles as supervisor, line manager,
section chief, office manager.
 Horizontal Level
1. Functional Manager
Manager who is responsible for a department
that performs a single functional task and
has employees with similar training and skills.
2. General Manager
Manager who is responsible for several
departments that perform different functions.
End…