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TheDimensionsofManagementTheEssentialDruckerPeterF.DruckerBusinessenterprises—andpublic-serviceinstitutionsaswell—areorgansofsociety.Theydonotexistfortheirownsake,buttofulfillaspecificsocialpurposeandtosatisfyaspecificneedofasociety,acommunity,orindividuals.Theyarenotendsinthemselves,butmeans.Therightquestiontoaskinrespecttothemisnot,whatarethey?But,whataretheysupposedtobedoingandwhataretheirtasks?Management,inturn,istheorganoftheinstitution.Thequestion,whatismanagement,comessecond.Firstwehavetodefinemanagementinandthroughitstasks.Therearethreetasks,equallyimportantbutessentiallydifferent,thatmanagementhastoperformtoenabletheinstitutioninitschargetofunctionandtomakeitscontribution.Establishingthespecificpurposeandmissionoftheinstitution,whetherbusinessenterprise,hospital,oruniversity;Makingworkproductiveandtheworkereffective;Managingsocialimpactsandsocialresponsibilities.MissionAninstitutionexistsforaspecificpurposeandmission;ithasaspecificsocialfunction.Inthebusinessenterprise,thismeanseconomicperformance.Withrespecttothisfirsttask,thetaskofeconomicperformance,businessandnonbusinessinstitutionsdiffer.Inrespecttoeveryothertask,theyaresimilar.Butonlybusinesshaseconomicperformanceasitsspecificmission;itisthedefinitionofabusinessthatitexistsforthesakeofeconomicperformance.Inallotherinstitutions—hospital,church,university,orarmedservices—economicconsiderationsarearestraint.Inbusinessenterprise,economicperformanceistherationaleandpurpose.Businessmanagementmustalways,ineverydecisionandaction,puteconomicperformancefirst.Itcanjustifyitsexistenceanditsauthorityonlybytheeconomicresultsitproduces.Abusinessmanagementhasfailedifitdoesnotproduceeconomicresults.Ithasfailedifitdoesnotsupplygoodsandservicesdesiredbytheconsumeratapricetheconsumeriswillingtopay.Ithasfailedifitdoesnotimprove,oratleastmaintain,thewealth-producingcapacityoftheeconomicresourcesentrustedtoit.Andthis,whatevertheeconomicorpoliticalstructureorideologyofasociety,meansresponsibilityforprofitability.WorkerAchievementThesecondtaskofmanagementistomakeworkproductiveandtheworkereffective.Abusinessenterprise(oranyotherinstitution)hasonlyonetrueresource:people.Itsucceedsbymakinghumanresourcesproductive.Itaccomplishesitsgoalsthroughwork.Tomakeworkproductiveis,therefore,anessentialfunction.Butatthesametime,theseinstitutionsintoday’ssocietyareincreasinglythemeansthroughwhichindividualhumanbeingsfindtheirlivelihood,findtheiraccesstosocialstatus,tocommunityandtoindividualachievementandsatisfaction.Tomaketheworkerproductiveis,therefore,moreandmoreimportantandisameasureoftheperformanceofaninstitution.Itisincreasinglyataskofmanagement.Organizingworkaccordingtoitsownlogicisonlythefirststep.Thesecondandfarmoredifficultoneismakingworksuitableforhumanbeings—andtheirlogicisradicallydifferentfromthelogicofwork.Makingtheworkerachievingimpliesconsiderationofthehumanbeingasanorganismhavingpeculiarphysiologicalandpsychologicalproperties,abilities,andlimitations,andadistinctmodeofaction.SocialResponsibilitiesThethirdtaskofmanagementismanagingthesocialimpactsandthesocialresponsibilitiesoftheenterprise.Noneofourinstitutionsexistsbyitselfandisanendinitself.Everyoneisanorganofsocietyandexistsforthesakeofsociety.Businessisnoexception.Freeenterprisecannotbejustifiedasbeinggoodforbusiness;itcanbejustifiedonlyasbeinggoodforsociety.Businessexiststosupplygoodsandservicestocustomers,ratherthantosupplyjobstoworkersandmanagers,orevendividendstostockholders.Thehospitaldoesnotexistforthesakeofdoctorsandnurses,butforthesakeofpatientswhoseoneandonlydesireistoleavethehospitalcuredandnevercomeback.Psychologically,geographically,culturally,andsocially,institutionsmustbepartofthecommunity.Todischargeitsjob,toproduceeconomicgoodsandservices,thebusinessenterprisehastohaveimpactonpeople,oncommunities,andonsociety.Ithastohavepowerandauthorityoverpeople,e.g.,employees,whoseownendsandpurposesarenotdefinedbyandwithintheenterprise.Ithastohaveimpactonthecommunityasaneighbor,asthesourceofjobsandtaxrevenue(butalsoofwasteproductsandpollutants).And,increasingly,inourpluralistsocietyoforganizations,ithastoaddtoitsfundamentalconcernforthequantitiesoflife—i.e.,economicgoodsandservices—concernforthequalityoflife,thatis,forthephysical,human,andsocialenvironmentofmodernmanandmoderncommunity.APhilosophyofManagementWhatthebusinessenterpriseneedsisaprincipleofmanagementthatwillgivefullscopetoindividualstrengthandresponsibility,andatthesametimegivecommondirectionofvisionandeffort,establishteamwork,andharmonizethegoalsoftheindividualwiththecommonweal.Theonlyprinciplethatcandothisismanagementbyobjectivesandself-control.Itmakesthecommonwealtheaimofeverymanager.Itsubstitutesforcontrolfromoutsidethestricter,moreexactingandmoreeffectivecontrolfromtheinside.Itmotivatesthemanagertoactionnotbecausesomebodytellshimtodosomethingortalkshimintodoingit,butbecausetheobjectiveneedsofhistaskdemandit.Heactsnotbecausesomebodywantshimtobutbecausehehimselfdecidesthathehasto—heacts,inotherwords,asafreeman.PickingPeopletheBasicRulesMakingtheri