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Management : tasks, responsibilities, practices /
Peter F. Drucker.
[1st ed.]. --
New York : Harper & Row, [1974]
xvi, 839 p. ; 24 cm.
More Details
New York : Harper & Row, [1974]
general note
Includes index.
catalogue key
Bibliography: p. 813-818.
A Look Inside
First Chapter

Chapter One

The Emergence of Management

During the last fifty years, society in every developed country has become a society of institutions. Every major social task, whether economic performance or health care, education or the protection of the environment, the pursuit of new knowledge or defense, is today being entrusted to big organizations, designed for perpetuity and managed by their own managements. On the performance of these institutions, the performance of modern society--if not the survival of each individual--increasingly depends.

Only seventy-five years ago such a society would have been inconceivable. In the society of 1900 the family still served in every single country as the agent of, and organ for, most social tasks. Institutions were few and small. The society of 1900, even in the most highly institutionalized country (e.g., Imperial Germany), still resembled the Kansas prairie. There was one eminence, the central government. It loomed very large on the horizon--not because it was large but because there was nothing else around it. The rest of society was diffused in countless molecules: small workshops, small schools, the individual professional-whether doctor or lawyer-practicing by himself, the farmer, the craftsman, the neighborhood retail store, and so on. There were the beginnings of big business--but only the beginnings. And what was then considered a giant business would strike us today as very small indeed.

The octopus which so frightened the grandparents of today's Americans, Rockefeller's giant Standard Oil Trust, was split into fourteen parts by the U.S. Supreme Court in 1911. Thirty years later, on the eve of America's entry into World War II, every single one of these fourteen Standard Oil daughters had become at least four times as large as the octopus when the Supreme Court divided it--in employment, in capital, in sales, and in every other aspect. Yet, among these fourteen there were only three major oil companies--Jersey Standard, Mobil, and Standard of California. The other eleven were small to fair-sized, playing little or no role in the world economy and only a limited role in the U.S. economy.

While business has grown in these seventy years, other institutions have grown much faster. There was no university in the world before 1914 that had much more than 6,000 students--and only a handful that had more than 5,000. Today the university of 6,000 students is a pygmy; there are even some who doubt that it is viable. The hospital, similarly, has grown from a marginal institution to which the poor went to die into the center of health care and a giant in its own right--and also into one of the most complex social institutions around. Labor unions, research institutes, and many others have similarly grown to giant size and complexity.

In the early 1900s the citizens of Zurich built themselves a splendid City Hall, which they confidently believed would serve the needs of the city for all time to come. Indeed, it was bitterly attacked by conservatives as gross extravagance, if not as megalomania. Government in Switzerland has grown far less than in any other country in the world. Yet the Zurich City Hall long ago ceased to be adequate to house all the offices of the city administration. By now, these offices occupy ten times or more the space that seventy--five years ago seemed so splendid-if not extravagant.

The Employee Society

The citizen of today in every developed country is typically an employee. He works for one of the institutions. He looks to them for his livelihood. He looks to them for his opportunities. He looks to them for access to status and function in society, as well as for personal fulfillment and achievement.

The citizen of 1900 if employed worked for a small family-type operation; the small pop-and-mom store employing a helper or two; the family household; and so on. And of course, the great majority of people in those days, except in the most highly industrialized countries--such as Britain or Belgium--worked on the farm.

Our society has become an employee society. In the early 1900s people asked, "What do you do?" Today they tend to ask, "Whom do you work for?"

We have neither political nor social theory for the society of institutions and its new pluralism. It is, indeed, incompatible with the political and social theories which still dominate our view of society and our approach to political and social issues. We still use as political and social model what the great thinkers of the late sixteenth and seventeenth centuries, Bodin, Locke, Hume, and Harrington, codified: the society which knows no power centers and no autonomous institution, save only one central government. Reality has long outgrown this model--but it is still the only one we have.

A new theory to fit the new reality will be a long time coming. For new theory, to be more than idle speculation and vague dreaming, must come after the event. It codifies what we have already learned, have already achieved, have already done. But we cannot wait till we have the theory we need. We have to act. We have to use the little we know. And there is one thing we do know: management is the specific organ of the new institution, whether business enterprise or university, hospital or armed service, research lab or government agency. If institutions are to function, managements must perform.

The word "management" is a singularly difficult one. It is, in the first place, specifically American and can hardly be translated into any other language, not even into British English. It denotes a function but also the people who discharge it. It denotes a social position and rank but also a discipline and field of study.

But even within the American usage, management is not adequate as a term, for institutions other than business do not speak of management or managers, as a rule. Universities or government agencies have administrators, as have hospitals. Armed services have commanders. Other institutions speak of executives, and so on.


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Table of Contents
Preface: The Alternative to Tyrannyp. x
Introduction: From Management Boom to Management Performancep. 1
The Emergence of Managementp. 3
The Management Boom and Its Lessonsp. 11
The New Challengesp. 27
The Tasksp. 37
The Dimensions of Managementp. 39
Business Performancep. 49
Managing a Business: The Sears Storyp. 50
What Is a Business?p. 58
Business Purpose and Business Missionp. 74
The Power and Purpose of Objectives: The Marks & Spencer Story and Its Lessonsp. 95
Strategies, Objectives, Priorities, and Work Assignmentsp. 103
Strategic Planning: The Entrepreneurial Skillp. 121
Performance in the Service Institutionp. 130
The Multi-Institutional Societyp. 131
Why Service Institutions Do Not Performp. 137
The Exceptions and Their Lessonsp. 148
Managing Service Institutions for Performancep. 158
Productive Work and Achieving Workerp. 167
The New Realitiesp. 168
What We Know (and Don't Know) About Work, Working, and Workerp. 180
Making Work Productive: Work and Processp. 198
Making Work Productive: Controls and Toolsp. 217
Worker and Working: Theories and Realityp. 231
Success Stories: Japan, Zeiss, IBMp. 246
The Responsible Workerp. 266
Employment, Incomes, and Benefitsp. 285
"People Are Our Greatest Asset"p. 300
Social Impacts and Social Responsibilitiesp. 312
Management and the Quality of Lifep. 313
Social Impacts and Social Problemsp. 326
The Limits of Social Responsibilityp. 343
Business and Governmentp. 352
Primum Non Nocere: The Ethics of Responsibilityp. 366
The Manager: Work, Jobs, Skills, and Organizationp. 377
Why Managers?p. 379
The Manager's Work and Jobsp. 389
What Makes a Manager?p. 390
The Manager and His Workp. 398
Design and Content of Managerial Jobsp. 403
Developing Management and Managersp. 419
Management by Objectives and Self-Controlp. 430
From Middle Management to Knowledge Organizationp. 443
The Spirit of Performancep. 455
Managerial Skillsp. 464
The Effective Decisionp. 465
Managerial Communicationsp. 481
Controls, Control, and Managementp. 494
The Manager and the Management Sciencesp. 506
Managerial Organizationp. 517
New Needs and New Approachesp. 518
The Building Blocks of Organization...p. 529
...And How They Join Togetherp. 542
Design Logics and Design Specificationsp. 551
Work- and Task-Focused Design: Functional Structure and Teamp. 558
Result-Focused Design: Federal and Simulated Decentralizationp. 572
Relations-Focused Design: The Systems Structurep. 592
Organization Conclusionsp. 599
Top Management: Tasks, Organization, Strategiesp. 603
Georg Siemens and the Deutsche Bankp. 605
Top-Management Tasks and Organizationp. 610
Top-Management Tasksp. 611
Top-Management Structurep. 618
Needed: An Effective Boardp. 627
Strategies and Structuresp. 637
On Being the Right Sizep. 638
Managing the Small, the Fair-Sized, the Big Businessp. 644
On Being the Wrong Sizep. 664
The Pressures for Diversityp. 679
Building Unity Out of Diversityp. 694
Managing Diversityp. 711
The Multinational Corporationp. 728
Managing Growthp. 765
The Innovative Organizationp. 782
Conclusion: The Legitimacy of Managementp. 805
Bibliographyp. 813
Indexp. 819
Table of Contents provided by Ingram. All Rights Reserved.

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