Management by Peter Drucker - Research Paper Example

? Critical Analysis of a Book Critical Analysis of a Book Taylor and Francis published the book Management by Peter Drucker, ISBN 0750643897, in 1999. The book is intended for professional managers. It enlightens managers on the areas of management that have not been exploited to improve the performance in organizations. Most managers are today still ignorant of most vital factors to put into consideration in management. He explores the untapped strategies that people in the management are ignorant of. The book looks into the practices, principles and policies that may be used to enhance management. It imparts into the managers the skills that are vital for present management as well as in the future. Managers are informed on better strategies that are necessary for solving problems. The new strategies were previously hidden from them. The theoretical proposals of the book when applied in management can help enhance the performance of various organizations. The first part of the book talks about business performance. Drucker says although there is no known genuine business theory and no integrated business strategy is in existence, people know about business and its key functions (Peter, 1999). In deed no standard management strategy exists. The practical implication of this fact is for the managers to design the strategy that will most suit the needs of their organizations. Different organizations have different management strategies and this explains the diversity in the performances of organizations. This fact coincides with what happens in reality. Managers should set balanced objectives in the key areas of production in line with the current prevailing factors and those of the future. Owing to the fact that businesses have certain set goals, the managers must lay down clear strategies that will help steer their business to achieving those goals. Applying the strategies proposed in the book puts the managers at a better position to improve their organizations. They must learn how to mobilize the necessary resources required in realizing the objectives of their businesses. When strategizing, managers should also put into consideration how the decisions will impact on the performance of the business in the future. When fully adhered to, the business performance proposals can be of great help in management of organizations. The book talks about dimensions of management. Organizations, both business enterprises and public institutions exist for a purpose. There are three major roles of management in an organization. The managers must ensure that these roles of management are achieved. The first role is to think through and define the specific reason for existence and mission of the institution, whether hospital, business enterprise or university. If the organization is a business enterprise, its reason for existence would be to make profit and expand its scale of operation. The second purpose is to ensure productivity and the employees achieving. The last role is to manage social impacts and responsibilities. Todays organizations’ success is based on these three pillars. Managers should know the purpose of an organization. Once they are fully in terms with the mission and purpose of an organization, they can set policies and strategies that can enhance the productivity and efficiency that aim at achieving the set goals. The strategies formulated should conform to the objectives to be achieved. Time dimension, as proposed in the book, affects management of businesses and institutions. This coincides with the real situation in most organizations today. In making decisions, managers should put into considerations the time factor. For a productive organization, every decision made and objectives set must be time bound. The managers must live at present and also in the future. The future goals of an organization can only be achieved from the present as they represent the continuity of the organization. Management of various organization when planning include the future in the decision making. The book talks about entrepreneurship as a dimension to managerial performance. The entrepreneurship theory when applied in management can enhance the performance of the organization. For an organization to flourish among its competitors, the managers must adopt the characteristics of entrepreneurs. This means that they should be able to divert resources from areas of low returns to those that give good returns whenever it seems necessary. This should also extend to the ability to identify viable business opportunities that can help expand the profit margins of businesses. The administrative role of managers should also incorporate the ability to improve on the already existing factors. Todays’ managers must always be on the move to guarantee the efficiency of their enterprises. Most of the management theories being taught in class also incorporate entrepreneurship as an important quality necessary for management teams of organizations Businesses are created and managed by people. It is the people who control businesses and not forces. The much talked about economic forces only create opportunities for the actions of managers but they do not at all influence what the business is or what activities it engages in. the Sears story clearly illustrates this fact. The role of management is to adapt the business to the existing forces of the market. This is the case in the real situation. The business environment is very dynamic and it is the role of management to always put in place the necessary strategies that will ensure the survival of the business whenever there is a change in the environment. Economic and social environment keep changing and the management should always be on the alert to adjust to these changes. Adjusting to the changes means reconsidering the policies and practices of the organization. On the purpose of a business, the book emphasizes that it must lie outside the business. It should be found in the society where it operates. As we all know, the purpose of any business enterprise is to make profit. The profit margin of a business is directly proportional to its customer base. Practicality of this theory is vital. The management of any enterprise should give the interest of the customer the first priority when making major decisions in the business. The quality of the services rendered and the goods availed to the customers must be high enough. The customers are the reasons for existence of a business enterprise. Because the purpose of the business is to create customers, the management must carry out to adequate levels the roles of marketing and innovation. Organization of a business is also touched in the book. Drucker says that there is no known standard structure of organizations (Drucker 1999). The structure of organizations is very dynamic with new structural design emerging. The practical implication of this is for the management to adopt the structure that fit the different role of the business. It must put into consideration the three kinds of work of a business organization; innovation, operations and top management when designing the structure of a business. The various types of organizations, irrespective whether it is a business enterprise or a government institution, must keep restructuring to ensure improved service delivery. Wrong organizational structure may lead to the failure of that organization. It is the role of managers to always reorganize the business so as to improve its performance. The structure of the organization becomes important in cases where an initially small enterprise evolve into a large business enterprise. This is the case with most organization today. The restructuring is necessary as it gives the management an opportunity to device a structure that will put it in a position to better manage the increased work force. Restructuring is also needed when a business enterprise introduces new products to the market. When reorganizing, the management should be critical so that some quarters of the workforce are not demoralized to ensure continued productive. The components of an organization innovation, top management and operations must be adequately covered in the organization. These are applied in the management of most organizations. Today in management innovation is vital for organizations as it provide new ways of providing services and also brings new goods into the market. Operations in the organization are also important. There should be a clear uninterrupted flow of work from one department to another. The management should allocate roles to each department so that no overlap exists between two or more departments. The role and position of the top management should be clear in the structure of the organization. In this book, Drucker has managed to achieve his intended objective which is to impart the necessary managerial skills to his intended audience, the managers. when this proposals are implemented in organization, increased efficiency and productivity will be experienced. The managers must know and fully comprehend the purpose and mission of the organization. They must also be aware of the impact and responsibity of the organizations to the society where it operates. Generally, management forms a vital part of an organization. It is the role of the managers to formulate goals and policies that ensure the smooth operations and sustainability of the organization. Reference Peter, D. (1999). Management. New York, NY: Taylor & Francis. Read More