Description
FOR THE MANAGERS......... FROM THE FATHER OF MANAGEMENT
PETER DRUCKER
Peter F. DRUCKER: Management by Objectives and Self-Control
zusammengestellt von Martin Hinterseer 16-03-2002
Introduction
A common goal requires common efforts and common efforts presume individual efforts
£ ¤ ¥ ¡ ¢
Every members effort must pull in the same direction All the contributions must fit together to produce a whole
Without gaps Without friction Without unnecessary duplication of effort
The Idea of Management by Objective
common goal
objective manager
. . .
...
objective manager
...
objective manager
Every manager knows his objectives and understands the common goal Workmanship is a MUST, but only related to the needs of the whole
¦ §
Misdirection
DANGER of hierarchical structureseverybody does without thinking what the boss says, even he makes a joke
¨ ©
subordinate managers are frustrated this leads to poor performance Most managers who misdirect don’t perceive it Solution: Choosing an management structure that focuses the manager’s and his boss’s eyes on what the job demands.
The Objectives (1)
Everybody needs clearly spelled out objectives
" # !
What performance of the management unit is supposed to produce The expected contribution of the own unit to help other units to obtain their objectives The expected contributions from the other units to reach the own objective
These objectives are derived from the goal of the whole business Information should reach everyone
The Objectives (2)
How to obtain balanced effort of all managers ? On time-scale
short range consideration long range consideration
kind of objectives
tangible business objectives intangible objectives
manager organistation manager developement
$ %
The Objectives (3)
managers objectives =
&
sub-managers objectives sub-managers objectives sub-managers objectives
The manager has to set the objectives of his unit Higher management approves this objective
' 2 3 4 5 ( ) 0 1
The Objectives (4)
Management-Letters written down by each manager (e.g. 2x a year)
7 6 8
objectives of superior objectives of his own unit own performance standard what is to
obstacles things that help from superior things that hamper from superior
if accepted it is the charter for the specified time + check against inconsitences + check against conflicting aims
Self-Control through Measurement (1)
Greatest advantage of management by objective
@ 9 B G H I P Q A C D E F
the possibility of controlling the own performance
Self-control gives stronger motivation
„a desire to do the best rather than just enough to get by“
Management by objectives enables to substitute management by domination with management by self-control
Self-control through Measurement (2)
A manager must know more than his goal Ability to measure performance and results against the goal The Tools of Measurement
not exact not rightly quantitative clear simple rational
Self-Control through Measurement (3)
A manager must have all information to measure the performance Measurement – no tool to control from above!
R U V W ` a b S T X Y
Example: General Electrics – „traveling auditors“
every unit has an audit each year the study goes only to the unit-manager not to his boss the unit-manager is enabled to self-control
Reports & Procedures
Important, but DANGER Misuse is possible
procedures as instruments of morality – procedures never decide what should be done only how procedures as substitution for judgement – civilisation tend to believe in printed papers, nonroutine and exceptional situations are never written in procedures control from above – if managers have to report information they don't need to do their job.
doc_587504986.pdf
FOR THE MANAGERS......... FROM THE FATHER OF MANAGEMENT
PETER DRUCKER
Peter F. DRUCKER: Management by Objectives and Self-Control
zusammengestellt von Martin Hinterseer 16-03-2002
Introduction
A common goal requires common efforts and common efforts presume individual efforts
£ ¤ ¥ ¡ ¢
Every members effort must pull in the same direction All the contributions must fit together to produce a whole
Without gaps Without friction Without unnecessary duplication of effort
The Idea of Management by Objective
common goal
objective manager
. . .
...
objective manager
...
objective manager
Every manager knows his objectives and understands the common goal Workmanship is a MUST, but only related to the needs of the whole
¦ §
Misdirection
DANGER of hierarchical structureseverybody does without thinking what the boss says, even he makes a joke
¨ ©
subordinate managers are frustrated this leads to poor performance Most managers who misdirect don’t perceive it Solution: Choosing an management structure that focuses the manager’s and his boss’s eyes on what the job demands.
The Objectives (1)
Everybody needs clearly spelled out objectives
" # !
What performance of the management unit is supposed to produce The expected contribution of the own unit to help other units to obtain their objectives The expected contributions from the other units to reach the own objective
These objectives are derived from the goal of the whole business Information should reach everyone
The Objectives (2)
How to obtain balanced effort of all managers ? On time-scale
short range consideration long range consideration
kind of objectives
tangible business objectives intangible objectives
manager organistation manager developement
$ %
The Objectives (3)
managers objectives =
&
sub-managers objectives sub-managers objectives sub-managers objectives
The manager has to set the objectives of his unit Higher management approves this objective
' 2 3 4 5 ( ) 0 1
The Objectives (4)
Management-Letters written down by each manager (e.g. 2x a year)
7 6 8
objectives of superior objectives of his own unit own performance standard what is to
obstacles things that help from superior things that hamper from superior
if accepted it is the charter for the specified time + check against inconsitences + check against conflicting aims
Self-Control through Measurement (1)
Greatest advantage of management by objective
@ 9 B G H I P Q A C D E F
the possibility of controlling the own performance
Self-control gives stronger motivation
„a desire to do the best rather than just enough to get by“
Management by objectives enables to substitute management by domination with management by self-control
Self-control through Measurement (2)
A manager must know more than his goal Ability to measure performance and results against the goal The Tools of Measurement
not exact not rightly quantitative clear simple rational
Self-Control through Measurement (3)
A manager must have all information to measure the performance Measurement – no tool to control from above!
R U V W ` a b S T X Y
Example: General Electrics – „traveling auditors“
every unit has an audit each year the study goes only to the unit-manager not to his boss the unit-manager is enabled to self-control
Reports & Procedures
Important, but DANGER Misuse is possible
procedures as instruments of morality – procedures never decide what should be done only how procedures as substitution for judgement – civilisation tend to believe in printed papers, nonroutine and exceptional situations are never written in procedures control from above – if managers have to report information they don't need to do their job.
doc_587504986.pdf