Management creates economic and social development.
Economic and social development is the result of management. It can be
said, without too much oversimplification, that there are no
'underdeveloped countries'. There are only 'undermanaged' ones. Japan a
hundred and forty years ago was an underdeveloped country by every
material measurement. But it very quickly produced management of great
competence, indeed, of excellence.
This means that management is the prime mover and
that development is a consequence. All our experience in economic
development proves this. Wherever we have only capital, we have not
achieved development. In the few cases where we have been able to
generate management energies, we have generated rapid development.
Development, in other words, is a matter of human energies rather than
of economic wealth. And the generation and direction of human energies
is the task of management.
ACTION POINT: What
impact does your company have in the developing world? Are your
activities there raising the managerial standards of local companies?
FAILURE OF CENTRAL PLANNING
"Any society in the era of the new technology
would perish miserably were it to run the economy by central
The new technology will greatly extend the management
area; many people now considered rank-and-file will have to become
capable of doing management work. And on all levels the demands on the
manager's responsibility and competence, her vision, her capacity to
choose between alternate risks, her economic knowledge and skill, her
ability to mange managers and to manage worker and work, her competence
in making decisions, will be greatly increased.
The new technology will demand the utmost in
decentralization. Any society in the era of the new technology would
perish miserably were it to attempt to get rid of free management of
autonomous enterprise so as to run the economy by central planning. And
so would any enterprise that attempted to centralize responsibility and
decision making at the top. It would go under like the great reptiles of
the saurian age who attempted to control a huge body by a small,
centralized nervous system that could not adapt to rapid change in the
Do you micromanage your employees? Start empowering them by making sure
they are trained properly to do their jobs, and then give them
responsibility to do it. Provide room for failure.
The Practice of Management.
"Organise for the next day at the end of the
previous day. This is what gives me peace of mind at night, a feeling
that I am on top of things, and a real excitement about coming into work
the next morning. Simply by arranging the next day — defining on paper
what I want to accomplish — I feel that I have a head start."
Mark H. McCormack, Americansports marketing
consultants, founder and CEO of International Management Group, and
"What's the difference between a leader and a
manager? Leader know the best course of action, while managers only know
the best way to follow it."
"He who has never learned to obey cannot be a
ARISTOTLE (384-322BC), Greek Philosopher. Politics
(4th century BC)
"Leadership is all about taking. Followers take
orders, leaders take charge."
"Management is doing things right; leadership is
doing the right things."
Peter Drucker and Warren Bennis. American academics
and authors. Quoted in Stephen R. Covey, The 7 Habits of Highly
Effective People (Simon & Schuster, New York, 1989).
"Effective negotiation persuade their
counterparts. They understand that it is usually more persuasive to
convince the other side than the given result would be fair rather than
convince by stubbornness. Arguing about what they will or won't do
creates a contest in which the other side knows that stubbornness will
be rewarded. That is not an incentive we would like to create for either
side. We would like both parties to be open to new ideas. We are not
saying 'be fair to be nice,' or even 'be fair to produce a fair
agreement.' Those are possible by-products. We are suggesting that
criteria of fairness are valuable as a sword to persuade others and as a
shield to protect ourselves from being unfairly treated."
(Roger Fisher, American law professor at Harward Law
school, conflict management consultant and author, and Danny Ertel,
American dispute resolution counsellor, columnist and author. Getting
ready to negotiate).
"If you want ten days of happiness, grow grain.
If you want ten years of happiness, grow a tree. If you want hundred
years of happiness, grow people."
(Harvey Mackay, American business executive, CEO of
Mackay Envelope company, motivator and author.)
"I never think of the future. It comes soon
Albert Einstein (1879-1955), German-Swiss-American