Book Review: The Practice of Management by Peter F. Drucker

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The Practice of Management by Peter F. Drucker. Harper & Row, 1954 This book is divided into 6 main parts: Managing A Business; Managing Managers; The Structure Of Management; Management Of Workers And The Worker; What It Means To Be A Manager; and a conclusion. In Managing a Business, Drucker stresses the importance of the customer , not economic or market forces, in defining a business. He suggests that it is the customer, not forces, that converts economic resources into wealth, and things into goods. He states that "there is only one valid definition of business purpose: to create a customer." (p.37) Drucker goes on to say that any business enterprise has two basic functions - marketing and innovation. I would argue that there should…show more content…
In The Management of Worker and Work, Drucker tells the IBM story where during the depression , they decided to maintain employment levels and enlarged the jobs of employees. As a result output actually increased, especially because the workers had job security and thus didn't feel the need to restrict their output. In order to prevent a surplus of goods, this forced IBM to seek out new markets and new needs both domestically and globally. This made IBM a stronger company during times when most firms would be weaker. Drucker also reminds us that when employing someone, the manager needs to respect that he or she is not simply employing a pair of hands, he or she is employing the whole man who is not only an employee, but a family man and a member of the community. Therefore it would be unfair to expect work to take over the whole sphere of his being, rather the manager should expect to play only a part in it for that worker to be a happier and more productive employee. In analyzing the management of workers, Drucker plays down the importance of personnel and human resources management. He argues that it is the worker's manager who should take a lead in their management because the manager would have a much better idea of what their job entails. Scientific management is also not an advisable

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