Author: Peter F. Drucker
Summary of the Book "The Practice of Management"
When one hears the word "management" for the first time, it often induces a sense of fear because it typically implies discipline, rigor, and numerous constraints. However, with Peter Drucker's book "The Practice of Management," this perception changes entirely. Management becomes a practice and an art. This book thoroughly discusses management as a whole, describing it as a distinct function and a specific task. It talks about managing a company, managing managers, and how decisions are made. Thus, Peter Drucker introduces the concept of management in an unprecedented way, despite previous important writings, positioning us to understand the successes or failures of companies and institutions. This enables those interested in this field to recognize the importance of management and strive to improve and develop its performance.
First published in 1954, "The Practice of Management" was the first book to explore management as a whole and the nature of managers' work as a distinct responsibility from other duties.
"The Practice of Management" laid down the principles of contemporary management practices. This book remains an indispensable, easy-to-understand reference for management students, aspiring managers, and seasoned professionals.
The book combines the present and the future, discussing the three major functions of management:
Managing the company
Managing managers
Managing work and workers
"The Practice of Management" presents the overall challenges facing management, such as the new industrial revolution and the realities of automation. The author uses the example of Sears as a productive institution that grants workers the greatest degree of authority and responsibility for results.
The book explains what a company is, how it is managed, and the meaning of managing a company. It then transitions to understanding production, its systems, requirements, and methods.
It also discusses the concept of company spirit and the role of managers in improvement and development, contributing significantly to the company's ethos. The author examines IBM to illustrate fundamental issues in managing work and workers and some principles for solving these problems.
Peter Drucker analyzes small, large, and developing companies in terms of management, managers, and problems arising from growth and employee behavior in senior management.
The book also addresses strategic decisions, their importance, and how to make them, emphasizing that the effectiveness of these decisions is determined by the behavior of those who implement them.
"The Practice of Management" explains that the concept of management has faced much criticism over the years. Some people, in particular, said it is a difficult system to implement and does not work well in rapidly changing environments. Drucker himself pointed out that management by objectives (MBO) is not a cure-all. He emphasized that this method only works when you think comprehensively about your goals first. He remarked, "But you don't do this ninety percent of the time."
Worse still, a group of executives and management consultants began to misapply the management by objectives method during the 1970s and 1980s. These individuals twisted Drucker's vision, leading to a distorted application of the MBO method. Instead of working with employees to agree on common goals, senior management imposed objectives on them.
This misapplication negatively impacted the MBO method. However, those who used it in its original form, as designed by "The Practice of Management" author, continued to trust it as one of the most valuable management systems. Over 70 academic studies on MBO in both government institutions and the private sector discovered significant advantages to this approach. On average, organizations that correctly applied MBO saw productivity gains five times greater than those that did not. It's no wonder that The Economist magazine declared several years ago, "Drucker, the author of 'The Practice of Management,' is responsible for establishing one of the most rational and successful schools of management: management by objectives."
The Relationship Between the Doc Suite HR System and "The Practice of Management" Book
The Doc Suite HR system is used in companies to manage employee information, including personal data, attendance, performance, training, salaries, and more. In contrast, "The Practice of Management" provides a set of guidelines and principles aimed at improving management performance within organizations.
The relationship between the system and the book lies in the fact that the Doc Suite HR system serves as a technological tool supporting the application of optimal management principles and practices discussed in "The Practice of Management." For example, the Doc Suite HR system can be used to implement human resource policies outlined in the book, such as performance evaluations, training and development programs, and the day-to-day management of employees.
You can download the book "The Practice of Management" directly from here.