THE AND PRACTICES OF MANAGEMENT

Story By Peter Drucker

Group 5 Shweta Sinha(06) Abhijit Wakodikar(09) Sweta Singh(17) Anuja Pdhate(26) Huzefa Furniturewala(28) Pierre Faucard(42)

PETER F DRUCKER- THE FATHER OF MANAGEMENT

Peter Ferdinand Drucker (November 19, 1909 November 11, 2005) Writer, management consultant, and self-described social ecologist. Books and popular articles explored how humans are organized across the business, government and the nonprofit sectors of society. Writings predicted major developments of the late 20th century including privatization and decentralization; the decisive importance of marketing etc Drucker coined the term knowledge worker" and later in his life considered knowledge work productivity to be the next frontier of management

OLD MODEL
Twenties:

Ford healthy period (2/3 of the

market) 15 years later (World War II, 20% of the market) The big majority of the economics world agreed that Ford was going to the hell and was close to collapse. Government was ready to spend money in that business to save the national war effort. Business model: Management without management team (entrepreneurship structure managed by the owner).

THE REVIVAL
After this policy, the few managers who was in Ford were in sales service. After the war nobody was able to help Ford in the management. Current old manager lost their competencies. Henry Ford II (1944). He was in his midtwenties. He had no business experiences Epic American business History

REBUILDING FORD MANAGEMENT

The key to Fords revival has been the building and organization of management. First action: establishment as a basic policy that there would be a real management. Firstly Henry Ford II had to clean the house Management team has been mainly constitute from outside people. He mainly employed people who were able to run themselves their activities and gave them full responsibilities. (but still under observation) Management became through objectives. Full information was given (according to the feasible) to simplify the initiatives.

NEW FORD MODEL

Today its totally decentralized. 15 autonomous divisions with a fully responsible management. Running through achievement of objectives. All these concept are not from Ford but Henry Ford II applied some from GM which were very successful for the other American company. Ten years after Henry Fords action, Ford came back in the battle with GM and Chevrolet for the 1st place in the American car market.

WHAT IS MBO?

MBO PRINCIPLES
Participate in the strategic planning process Cascading of organizational goals and objectives Specific objectives for each member Participative decision making Explicit time period Performance evaluation and feedback

TYPES OF OBJECTIVES
Routine objectives Innovation objectives Improvement objectives The objectives must be: Focused on a result, not an activity Consistent Specific Measurable Related to time Attainable Avoid the activity trap

SIX MBO STAGES

Define corporate objectives at board level Analyze management tasks and devise formal job specifications, which allocate responsibilities and decisions to individual managers Set performance standards Agree and set specific objectives Align individual targets with corporate objectives Establish a management information system to monitor achievements against objectives

8 KEY RESULT AREAS

Marketing Innovation Human organization Financial resources Physical resources Productivity Social responsibility Profit requirements

A MANAGERS JOB-HOW IT
SHOULD BE
Should be to attain companys objectives. Should embody maximum challenge & carry maximum responsibility. The contribution should be clearly visible & measurable. Team tasks

MANAGERS AUTHORITY
Begin with the activities on the firing line.

Should not make decisions that affect other managers. Should not make a decision that has an adverse effect on the career & future of his subordinates without reviewing it.

THE MANAGER AND HIS SUPERIOR

Supervision is a relationship which has three dimensions: 1) Up from lower to higher manager. 2) From every manager to the enterprise. 3) Down from higher to the lower manager.

THE MANAGER AND HIS SUPERIOR

Supervision is a relationship which has three dimensions: 1) Up from lower to higher manager. 2) From every manager to the enterprise. 3) Down from higher to the lower manager.

CHIEF EXECUTIVE BOARDS AND DIRECTORS

How disorganized is the Job? Fallacy of the ONE-MAN Chief Executive. Crisis of the One-Man ONE-MAN Chief Executive Concept.
Organisation of the chief executive team.

DEVELOPING MANAGERS
Managing Relationships Manager Development cannot be promotional planning or finding back up man Manger development a three-fold responsibility-to the enterprise, to the society to the individual. The fallacy of the promotable management

PRINCIPLES OF MANAGEMENT
Development the entire management group Manager Development must be dynamic i.e. for tomorrows demand Job Rotation is not enough Business needs engineers capable of managing a business

HOW TO DEVELOP MANAGERS?

Manager manpower planning.

Individual development needs i.e self development. Manager development not in luxury, but a necessity

A MANAGERS JOB-HOW IT
SHOULD BE
Should be to attain companys objectives. Should embody maximum challenge & carry maximum responsibility. The contribution should be clearly visible & measurable.
Team tasks

THANK YOU