Exploring the Essence of Management: A Review of "The Essential Drucker" by Peter F. Drucker

I was introduced to the writings of Peter F. Drucker a very long time ago, when I was a first-year bachelor's student. I pursued both a bachelor's and a master's degree in management, which is why I had to study his works. He is renowned for modern management theory and is a leader in the development of management education. He has written 39 books that have been translated into more than thirty-six languages. One of his masterpieces, "The Essential Drucker," is a compilation of his writings spanning 60 years, aimed at highlighting his core concepts.

I recently purchased this book from the Harvard Bookstore in Boston. However, I couldn't manage to finish it quickly; it took me a few months to start and complete it. After finishing it, I am now attempting to share my insights from this reading.

The book contains 26 chapters and summarizes the writings published from 1954 to 1999. Drucker's prose invites readers into a world where management transcends corporate jargon; it's a fundamental aspect of societal organization. Chapters addressing organizational management, individual roles within organizations, and broader societal aspects are seamlessly intertwined, illuminating the interconnectedness of these realms.

Drucker's thoughtful breakdown of chapter sources enhances the book's structure, guiding readers to delve deeper into specific topics. Each chapter's origin is meticulously noted, allowing those intrigued by particular concepts to explore Drucker's other seminal works, such as "Innovation and Entrepreneurship," "The Effective Executive," and "The Practice of Management."

To emphasize the importance of management, the writer mentions that a modern business may employ ten thousand highly knowledgeable individuals representing up to sixty different knowledge areas, but none would be effective without proper management. The enterprise must have clear, unifying objectives. Management's primary role is to conceive, establish, and exemplify those objectives, values, and goals.

In every decision and action, business management must prioritize economic performance. The second task of management is to enhance productivity and the effectiveness of workers. The third task involves managing the social impacts and responsibilities of the enterprise.

One interesting insight from Chapter 3 is Drucker's observation that when asked about the purpose of business, most people would respond, "To make a profit." However, he contends that this answer is not only false but also irrelevant. According to Drucker, profitability is not the purpose; rather, it is a limiting factor of business activity. He posits that the sole valid definition of business purpose is to create a customer. People didn't know they wanted a Xerox machine or a computer until these products became available.

A business enterprise has two fundamental functions: Marketing and Innovation. Business objectives should be established in eight key areas: Marketing, Innovation, Human Resources, Financial Resources, Physical Resources, Productivity, Social Responsibility, and Profit Requirements.

Until 1950, many misconceptions existed about management. Most associated management with business management. By 1950, "business" had become a positive term, largely due to the successful performance of American business management during World War II. However, Management is the distinct and defining organ of any organization. In Chapter 8, Drucker mentions that any business enterprise must build a cohesive team and unify individual efforts toward a common goal. While each member contributes differently, their efforts must align toward the same direction, creating a seamless whole without gaps or unnecessary duplication of effort.

Chapter 10 discusses "The Entrepreneurial Business." The conventional wisdom claims that big businesses don't innovate. Drucker contradicts this by stating that it's not size but rather the existing operation, especially a successful one, that impedes entrepreneurship and innovation.

A competent manager emphasizes responsibility, while an effective person focuses on contribution. Effective decision-making involves concentrating on the important, strategic, and generic aspects, rather than simply "solving problems."

In Chapter 24, the writer discusses "The Coming of the Entrepreneurial Society." Innovation and entrepreneurship are vital not only in the economy but also in society and public-service institutions. An entrepreneurial society, where innovation and entrepreneurship are normal and continuous, is needed.

The writer also acknowledges uncertainty about future changes. Although the future of society and the economy are uncertain, the writer encourages us to learn from the past to better prepare for the future with the necessary managerial skills.

Personally, I believe this book is a must-read for all top-level managers and newcomers seeking to comprehend society, business, and leadership. The book covers essential managerial tasks and provides insights to perform effectively in the evolving society and economy.