"Whoever makes two blades of grass grow where
only one grew before deserves better of mankind than any speculative
philosopher or metaphysical system builder."
Management will remain a basic and dominant
institution perhaps as long as Western civilization itself survives. For
management is not only grounded in the nature of the modern industrial
system and in the needs of modern business enterprise, both human and
material. Management also expresses the basic beliefs of modern Western
society. It expresses the belief in the possibility of controlling man's
livelihood through the systematic organization of economic resources. It
expresses the belief that economic change can be made into the most
powerful engine for human betterment and social justice- that, as
Jonathan Swift first overstated it three hundred years ago, whoever
makes two blades of grass grow where only one grew before deserves
better of mankind than any speculative philosopher or metaphysical
Management -which is the organ of society
specifically charged with making resources productive, that is, with the
responsibility for organized economic advance- therefore reflects the
basic spirit of the modern age. It is, in fact, indispensable, and this
explains why, once begotten, it grew so fast and with so little
Come up with a few examples of why
management, its competence, its integrity, and its performance, is so
decisive to the free world.
THE PRACTICE OF MANAGEMENT.
BALANCING OBJECTIVES AND MEASUREMENTS
"The traditional theorem of the maximization of
profit has to be discarded."
To manage a business is to balanace a variety of
needs and goals. To empasisze only profit, misdirects managers to the
point where they may in danger the survival of the business. To obtain
profit today, they tend to undermine the future. They may push the most
easily saleable product lines and slide those that are the market of
tomorrow. They tend to shot change research, promotion, and other
postponable investment. Above all, they shy away from any capital
expenditure that may increase the investment capital based against which
profit are measured; and the result is dangerous obsolescing of
eqiupment. In other words, they are directed into the worst practises of
Objectives are needed in wevery area where
performance and results directly and widely affect the survival and
prosperity of the business. There are eight areas in which performance
and objective have to bhe set: market standing, innovation,
productivity, physical and financial resources, profitability, manger
performance and development, worker performance and attitude, and public
responsibility. Different key areas require different emphasis in
different businesses - and different emphasis at different stages of the
development of each business. But the areas are the same, whatever the
business, whatever the economic conditions, whatever the business's size
or stage of growth.
ACTION POINT: In addition to setting profit objects,
set objectives for your business in the following areas: market
standing, innovation, productivity, physical and financial resources,
profitability, manager performance and development, worker performance,
and public responsibility.
THE PRACTICE OF MANAGEMNET.
By: Peter F. Drucker
"Do your duty in all things. You cannot do more.
You should never wish to do less."
ROBERT E. LEE (1807-1870), American soldier and
commanding general of armies of the confiderate States of
"If you go over budget, you have to start asking
people for money and that means they have a right to opinion about what
you are shooting. You have to be financially responsible or your
independence gets taken away."
JODIE FOSTER, American film producer, director and
"The richest reward of all is being proud of
JAN CARLZON, Swidish business leader, former CEO of
Scandinavian Airline System, speaker and author.
"Prospect is often better than possession."
THOMAS FULLER M. D. (1654 - 1734), British physician
"I am a perfectionist, and that brings
self-imposed pressures, expectations - and those expectations are
CRAIG WARREM, Australian professional Golfer.
"Judement is not upon all occassions required,
but discretion always is."
LORD CHESTERFIELD, British statesman.
"Act so in the valley that you need not fair
goes who stands on the hill."
"He who treads softly go far."
"In this job there are times when you have to
stick with a decision and try to get the best deal you can get. It's not
that I enjoy the fight - I just like to achieve a good deal for people,
for my team."
JAN CHAPMAN, Australian flm producer.
"Business Decisions based purely on instinct may
be risky. The next time you have a gut feeling about something, make
sure it isn't just indigestion."
"Decisions are like New Years resolution -
making them is easy: sticking to them is the hard part."
"Tomorrow is the day on which lazy people have
the most to do."
"Put off untill tomorrow only what you are
willing to die having left undone."
PABLO PICCASSO (1881- 1973), Spanish artist.