Peter Drucker outlines three steps for managing business effectively: 1. Analysis - Managers must analyze facts about opportunities and costs to understand where resources are best allocated. 2. Allocation - Resources should be allocated according to anticipated results, focusing on opportunities rather than problems. 3. Decision - Managers must decide which products, activities, and costs areas improve results and opportunities rather than hurting culture.

1. Presented By : Ajit Kumar
PGDM Exe SIMSR
1
MANAGING FOR BUSINESS
EFFECTIVENESS
BY : PETER DRUCKER

2. SYNOPSIS : MANAGER’S REAL WORK
Q . What is the first duty and the continuing
responsibility of the business manager
A . To strive for the best possible economics result
from the resource currently employed .
 It requires that that he attacks the problem of
increasing
1.Business Effectiveness
2.Systematically with a plan of action & with a
method of the analysis
3.Understanding of the tools he need 2

3. IN REALITY :
Bulk of the time ,work attention and money first goes to
‘ problem ‘ rather than to opportunities
3

4. Q . WHY MANAGER DO NOT “AS A RULE”
UNDERSTAND THIS FACT
A .
 A manager’s job is – Work hard
 Demanding
 Risk taking work
 Meeting dead lines
 Meeting management expectation
 High Profit Margins @ low cost
Which leads to generate confusion pressure and anxiety ,
So they emphasis on money and profit only 4
Managing For business Effectiveness

5. THREE STEPS WHICH ENABLE MANAGING
BUSINESS EFFECTIVELY
1 . Analysis : Manager has to know the facts of the
opportunity and true cost of product
Potential contribution of different staff activity
2.Allocation : Manager has to allocate resource
according to result anticipated .
3.Decision : Decide product ,staff activity ,cost
area that deteriorate culture rather than bring
opportunity and result . Eg.
5

6. 6

7. 6