Essential Drucker Chapter8: Management by Objectives and Self-control

Drucker’s Basic Idea

Any business enterprises or public service organizations are organs of a society. Business enterprises exsist to attain specific needs of a society. To achieve their purpose, any organization must establish the specific mission, and build a team by combining individuals with different professions.

The main idea of this chapter is,
1. How each team or individual in a team should be managed?

• Each team in an organization, or an indivduals in a team should be managed by objectives, not by a domination or strict rules.

2. How should the objectives be set?

• The objectives must be derived from the goal of the whole business of the organization.
• Roles of manager ;to inform his team, even a foreman in a production, of what the statements of the team and of the whole business
• The manager must understand what the business goal demand of him in terms of performance.
• And his boss must know what contribution to demand of him, and must judge him accordingly.

3. What should the objectives be?

• Emphasis should be on teamwork.
• The objectives should explain what performance each unit is supposed to produce, what contribution the unit is expected to help other unit, and what contribution the unit can expect from other unit

4. Why do managers have to do so?

• Self-control means stronger motivation:a desire to do the best rather than just enough to get by.