Peter Drucker - Rightfully known as the Father of Management has written over 39 books and has been honoured by prestigious awards including the Presidential Medal of Freedom in 2002. The book "The Essential Drucker" is a compilation of 26 chapters from Drucker's 60 years of work.It takes you through Peter Drucker's thoughts on Management and the values that differentiate great managers from good. In a nutshell;, the book talks about the origins of management, how organizations have evolved, what drives them, what kind of data is needed by executives in the modern day functioning and what qualities are required to be developed to move from Good to great. These qualities include, leadership, good communication, time management, accountability etc. Enjoy the presentation and please share your thoughts and comments!!!

1. Book Review on 'TheEssential Drucker'

2. Introduction

3. Born
November 19, 1909 (Died November
11, 2005)
Place of Birth Kaasgraben, Austria
Graduated from University of Frankfurt
Occupation
Management consultant, educator
and author
Number of Books Written 39
Awards and Honors
Presidential Medal of Freedom
(2002), Grand Silver Medal for
Services to the Republic of Austria
(1974), Grand Gold Decoration for
Services to the Republic of
Austria (1991)
Worked at
Bennington College (1942 -
1949), Professor of Management at
New York University (1950 - 1971),
About Peter F. Drucker

4. The Essential Drucker

5. Selection of 26 chapters from Drucker’s sixty
years of work
Compiled by Drucker’s Japanese friend
Atsuo Ueda
Edited by Cass Canfield Jr. for USA and UK
Aim of the book is to provide an introduction
to management via Drucker’s work
About The Book

6. Origins of Management

7. The World War II – FirstExampleof Management in Action
Troops
• One fifth of the
Population of all other
belligerents combined
• Had almost as many men
in uniforms
War
Material
• Produced more war
material than others
combined
Transportation
• Managed to transport
men and arms on
fighting fronts as far as
China, Russia, India,
Africa and western
Europe
Allies Won – Their Victory Achieved by
Achieved by Management

8. Accountabilityin Management

9. Peter Drucker Believes ThatManagement…
Is not Solely about Short Term gainsto Stakeholders
It has to be accountable for Performance
Should bein charge of defining Performance
Should bein charge of measuring Performance
Should Ensure that Performance is enforced

10. Dimensionsof Management

11. Dimensionsof Management
Establish Mission or
Mission or Objective
Objective for a
Business
Makework
work
Productiveand
eandWorker
Worker
Effective
Manage Social
SocialImpacts
Impacts and
andSocial
Responsibilities

12. Purpose & Objective of a Business

13. Purpose of a Business
Marketing
Innovation
Main Purpose is
Purpose is to
toCreate a
Customer

14. What it takes toDefine Objectives
Objectives areneeded in all areas onwhich
areas onwhich survival of business depends
Objectives must makepossible concentration of
concentration of resources and efforts
Objectives must be operational and capable of
and capable of being converted into specific
into specific targets
Objectives must bedriven from What our
What our Business is , what it will beand what it
be and what it should be

15. ObjectivesMust Be Set in FollowingKeys
Marketing
HumanResources
PhysicalResources
SocialResponsibility
Innovation
FinancialResources
Productivity
ProfitRequirement

16. Social& EnvironmentalImpacts

17. Social& EnvironmentalImpacts
ResponsibilityforImpacts –The FirstJob
The FirstJob of Managementisto
Managementisto IdentifyImpacts.
Dealwith Impacts – Elimination of
Elimination of Impact intoopportunity
opportunityshould be attempted.If it
attempted.If itcannot bedone, finda
done, finda regulation.
SocialProblemsBusinessOpportunities
Opportunities– SocialProblems
Problemsrepresentchallengesandare a
challengesand are a sourceof
of opportunity.
LimitsofSocialResponsibility –Social
Responsibility– Socialresponsibility
responsibilitycannot befulfilledby a
fulfilledby a businesswithout minimum
withoutminimum profitability.
LimitsofAuthority – Management
Managementshouldresistresponsibility
responsibilityof a socialproblem that
problem thatwould compromisethe
compromisethe performanceof the
performanceof the business.
Ethicsof Responsibility– The social
The socialresponsibilityshould betaken
shouldbe taken up in everydayhonesty
everydayhonestyand social
responsibilityshouldnot be forced upon
forced uponanyone.

18. InformationExecutivesNeed Today
• Traditional cost accounting measure what
measure what it cost to do something.
Traditional to activity
activity based cost
accounting
• It is not enough to only know the cost of
the cost of internal operations.
Legal Fiction To Economic
Economic Reality • Management Should use tools such as
tools such as Cash-flow, Liquidity
Liquidity Projections, productivity
productivity measurements,
benchmarking etc. to gain information
information necessary information for an
information for an enterprise to create
to create wealth
Information For wealth
wealth Creation.

19. Management byObjectives& Self-Control
Objective
MultiplePeoplehave
havedifferent
contributionstowards…
Shouldbederivefrom
fromgoalsofthebusiness
businessenterprise
Managermustbeableto
abletomeasurehis
hisperformanceagainst
againsthisbusinessgoals.
Managementshould
shouldutilizereportsand
reportsand proceduresto
procedurestoensureself-
ensureself-control
controltowards…

20. PickingPeople –The Basic Rules
Thinkthrough the assignment
assignment andunderstand
understand the job
description.
Look at a number of
potentially qualified people.
Thinkhardabout how to look
how to look at thecandidates
candidates andif they fit into
they fit intothe assignment.
Discuss each of the candidate
candidate with several people
several people whohave
haveworked with them.
Make surethe appointee
appointee understands the
understands the job..

21. The EntrepreneurialBusiness
The Don’ts on an Entrepreneurial
Entrepreneurial Businesses
Donotmix management
managementunits and
units andentrepreneurial
entrepreneurialunits
units together
Innovationbetternotbe
notbe diversification. An
diversification. An
existingbusinessmust
mustinnovate whereit
whereit hasexpertise
Avoid makingone’s own
one’sownbusiness
business entrepreneurial
entrepreneurialby
by acquisition as the
themanagersofthe
the acquired companyare
companyare morelikely
morelikely to leave.

22. New Venture

23. A New Venture has FollowingRequirements
Focus on The
TheMarket
• The new venture needs to build in systematic practices to remind itself that a product or a services is
that a product or a services is defined by the customer not by the producer. It needs to work
producer. It needs to work continuously in respect to the utility and value that its product or services
value that itsproduct orservices contributetocustomers.
FinancialForesight
• The new venture needs cash flow analysis, cash flow forecasts and cash management. A growing new
cash management. A growing new venture should know twelve months ahead of time how much cash
ahead oftimehow muchcash itwillneed,whenandfor what purposes.
Buildinga Top
Management
• Once the business starts growing, it needs a management team at the top. Goal and objectives for each
top.Goal andobjectives foreacharea needs tobe set.Also founder has tolearn tobe becomeleaderof
has tolearn tobebecome leaderof a teamrather than starwith helpers.

24. Effectiveness

25. Effectiveness Must be Learned
Why we need Effectiveness?
Whois an executive?
Executive Realities
The Promise of Effectiveness
CanEffectiveness be learned?

26. Contribution

27. Focus on Contribution

28. Concentrate on your Strengths
Work on improving your strengths
Identify where intellectual arrogance causes disabling ignorance
Remedy your Bad Habits
Waste as little effort as possible on improving areas of low
competence
What are My strengths

29. One is a
Reader or
listener?
How one
learns?
Whether one
perform well
under stress?
Do not try to change yourself!!
How do I Perform

30. What are my Values?
Where do I belong?

31. Record time
Manage time
Consolidate Time
Know Your Time

32. EffectiveDecisions

33. The DecisionProcess
Realization of situation whether
whethergeneric oranexception.
Clear specification as to what
whatdecision hastoaccomplish.
Convertingthedecision intoaction.
Feedback has to be built into the
built into the decision to have a
have a continual testing against
againstactualevents
The Decision
Process

34. Communications

35. Fundamentals ofCommunication
Communication
Communication is
Perception
Communication
Makes Demands
Communication and
and Information
Communication is
is Expectation

37. Qualitiesof a Leader
The foundation of effective leadership is thinking through the organization's mission, defining it and establishing it
mission, defining itandestablishing itclearly.The leader sets goals,defines priorities andmaintainsthe standards.
He makes compromises with constraints of reality which arecompatible with mission and goals.
Theleader sees leadership asresponsibility rather thanrankandprivilege.
Effective leader encourages hissubordinates, pushes them andgloriesthem.
He sees subordinates as histriumphs rather than threats.
Effective leader hold himself ultimately responsible for themistakes of his subordinates.
subordinates.
The final requirement of leadership is trust. The only definition of a leader is someone who has followers. Trust is the
someone who hasfollowers. Trust isthe conviction thatthe leader means what he says.
says.

38. Innovation

39. Principlesof Innovation
SystematicInnovationbeginswith the
beginswiththe analysisof the
theopportunities.
An Innovationto beeffectivehasto be
has tobe simpleand ithas tobe focused.
EffectiveInnovationstartsmall.It should
small.It shouldtry to doone specific
specificthing.Itmay be to enablea
enablea moving traindraw electric
electricpower whileit runs alongrails
Innovationiswork. It requires
requiresknowledge. Innovators rarely
Innovators rarelywork more than one
than one area.An Innovatorin financial
in financialareais unlikelyto bring
to bring innovationsinhealthcare.
To succeedinnovatorsmust buildon
buildon theirstrengths.Innovators look
Innovators lookat opportunitiesthatfits
opportunitiesthat fitsthe company, puts
company, puts towork whatit isgoodat
itisgood atand haveshown capacityfor
capacityforperformance.

40. Thank You
Name Roll Number
Almog Ramrajkar 41
Vaibhav Sawant 55
Naresh Naik 31
Preeti Patel 33