Reading notes: Chapter 26 of "Understanding Management" by Peter Drucker: Management by Objectives and Self-Control

1. Overview of Chapter Contents

The contributions of employees in an enterprise are different from each other, but all contributions must be directed towards common goals and common performance. Every manager should strive to improve his or her work skills. Excellent skills are the means to achieve common goals. Organizations are often misled away from common goals, so organizations need to implement management by objectives to integrate individual efforts into common performance. Managers' goals need to be set by themselves, and goals should be used for self-control. Management by objectives and self-control can indeed be called "the management philosophy of free people."

2. Chapter Question Set

Question 1:What are the factors inherent in the organization4 that can mislead managers a>?

1. Process mix: Which combination is more productive: buying or manufacturing components, assembling products in-house or outsourcing assembly, marketing under own brands or letting independent wholesalers sell under their own brands? These process combinations can have an impact on managers' decisions and may mislead them into choosing inappropriate combinations.
2. Time: Time is an organization’s most fragile resource. People and machines are utilized all or part of the time, resulting in differences in their productivity. The least productive arrangements are those where capital equipment sits idle or the time of highly paid, capable talent is wasted. An equally unproductive behavior might be to impose more productive labor than can be accommodated for a period of time, for example, by implementing three shifts in a crowded factory or on old and fragile equipment. The most productive (or least productive) time is the manager's time. Yet of all the elements of productivity, managers’ time is the least understood, least analyzed, and least managed.
3. Product mix: Productivity is also a function of product mix, which is the balance between various outputs under the same resource conditions. Every manager knows that the differences in market value of different product portfolios are rarely proportional to the effort put into making up the portfolio. A company's product quantity, raw materials and technology used, and direct and indirect labor remain unchanged, but its product mix is ​​different, and it may gain wealth or go bankrupt. Obviously, this represents a huge difference in productivity for the same resource. But this difference is not reflected in the cost, or cost analysis cannot detect this difference.
4. Organizational structure: The organizational structure of a company and the balance between various internal activities have a crucial impact on productivity. If the lack of a clear organizational structure causes managers to waste time figuring out what they should be doing instead of actually doing the work, then the company's scarcest resource is being wasted. If top management is only interested in engineering (perhaps because they all come from engineering backgrounds) and the business is faced with a situation that requires a heavy emphasis on marketing, then productivity will be hurt. The resulting losses are much more serious than the drop in output per unit of work-hour.

Therefore, for these four factors, managers need to carefully consider and develop effective strategies to deal with the possible impacts.

Question 2:Why is it sometimes dangerous for managers in professional and functional jobs to strive to improve their professional skills?

For managers in specialized and functional jobs, efforts to improve their professional skills can sometimes be dangerous for the following reasons:

1. Ignoring the basic tasks of management: Managers first need to focus on the overall operation of the enterprise and achieving organizational goals, rather than just focusing on their own areas of expertise. If managers blindly pursue the improvement of professional skills, they may ignore the basic tasks of management, leading to poor coordination within the organization, low work efficiency, and even affecting the overall performance of the enterprise.
2. Lack of overall perspective: As leaders in an enterprise, managers need to have an overall perspective and understand the overall operations of the enterprise and the work of each department. If managers are too focused on their own areas of expertise, they may lack an overall vision and have difficulty coordinating and integrating the work of different departments, thereby affecting the overall operations of the company.
3. Inability to adapt to changes: The business environment of modern enterprises changes rapidly, and managers need to be flexible and adaptable to cope with various changes. If you pursue the improvement of professional skills too much, you may become complacent and find it difficult to adapt to new changes and challenges.
4. Difficulty improving leadership skills: Managers’ leadership skills are one of the important factors in the success of business management. If managers only focus on their professional skills and ignore the continuous improvement of management skills and management concepts, their leadership capabilities may not be improved, which will affect the long-term development of the company.

To sum up, although improving professional skills is beneficial to managers, excessive pursuit of professional skills and ignoring the improvement of other aspects may bring danger to managers. Therefore, managers engaged in professional and functional work should focus on improving their management skills, overall concepts and leadership capabilities to better cope with the challenges and changes of modern enterprises.

Question 3:What are the ways in which superior leaders mislead subordinates?

There are many ways for superiors to mislead their subordinates. Here are some possible ways:

1. Giving vague instructions: Superior leaders give vague instructions so that subordinates cannot accurately understand their intentions, resulting in deviations or errors during execution.
2. Ignoring information: Superior leaders ignore certain important information, preventing subordinates from fully considering the problem in the decision-making or execution process, thus making wrong decisions or actions.
3. Conveying wrong information: Superior leaders deliberately convey wrong information to mislead subordinates’ understanding or judgment, thereby affecting their decision-making or execution effects.
4. Ignoring feedback from subordinates: Superior leaders ignore feedback and suggestions from subordinates and only make decisions and actions based on their own ideas, thus misleading subordinates' execution direction and effects.
5. Disrespect for subordinates: Superior leaders do not respect the opinions and ideas of subordinates, and even belittle or insult them, causing subordinates to lose their confidence and judgment, making them unable to make correct decisions and actions.
6. Ignoring organizational goals: Superior leaders ignore the overall goals and strategies of the organization and focus only on their own power and interests, thereby misleading subordinates to perform behaviors that are not in line with organizational goals.
7. Failure to provide support: Superior leaders do not provide necessary support and resources, causing subordinates to encounter difficulties and challenges during execution, making it impossible to complete tasks or achieve expected goals.
8. Lack of Integrity and Transparency: Dishonesty or lack of transparency by superior leaders prevents subordinates from trusting and understanding the intentions and meaning behind their decisions and actions.

These methods may lead to deviations or errors by subordinates when performing tasks, thereby affecting the performance and goal achievement of the entire organization. Therefore, as a superior leader, you should always pay attention to the feedback and understanding of your subordinates and avoid misleading subordinates. At the same time, subordinates should also actively feedback questions and suggestions to their superiors to help superiors better guide and support their work.

Question 4:How does the story of the blind men and the elephant apply to the problem of misdirection in management?

The story of the blind men and the elephant can be applied to the problem of misdirection in management. It vividly illustrates the relationship between local truth and global truth. In management, every blind person touches part of the elephant, but they only focus on the part they touch and ignore the overall situation. This may lead decision-makers to only see part of the problem and ignore the overall situation, thereby making wrong decisions.

For example, in a company, if one department only focuses on its own work and ignores collaboration with other departments and the overall goals of the company, it may lead to misdirection. Management needs to look at the problem from a global perspective and understand the company's overall operations in order to make correct decisions.

Therefore, in management, it is necessary to avoid focusing only on local situations, but to comprehensively consider global factors in order to avoid misleading problems. Management needs to understand the company's overall strategy and goals, the work and interrelationships of various departments, as well as the company's external environment and competition. Only in this way can we make the right decisions and achieve the company's overall goals.

Question 5:What kind of instructions do managers get from the organization’s compensation system?

The signals managers receive from an organization's compensation system typically include the following:

1. Organizational value orientation: The compensation system usually reflects the organization's value assessment of different positions and jobs. By comparing the salary of their own position with the salary of other positions, managers can understand the importance the organization attaches to their work. If managers are paid less than other positions, it may mean that the organization does not give managers adequate recognition for their job responsibilities and risks.
2. Feedback on job performance: In many organizations, compensation is often based in part on job performance. This is reflected not only in performance bonuses, but also in other forms of incentive pay. By looking at their own compensation, managers can understand how they are performing and where there may be room for improvement.
3. Competitiveness in the market: Organizations usually consider competitiveness in the market when formulating their compensation systems. If a manager's compensation is significantly lower than the market average, it may mean that the organization needs to re-evaluate compensation for the position to avoid losing talent.
4. The organization's strategic goals: An organization's compensation system is often closely linked to the organization's strategic goals. If the organization is pursuing a specific strategy (e.g., expanding market share, improving product quality, etc.), then these goals may be reflected in the compensation system to encourage employees to work hard to achieve these goals.

Overall, managers can obtain important signals about their work value, job performance, market competitiveness, and the organization's strategic goals from the organization's compensation system. These signals help managers understand their status and value in the organization and provide guidance for future career development.

Question 6:What are the dangers of directly linking managers’ compensation to measurable results?

Linking manager compensation directly to measurable results may pose the following dangers:

1. Short-sighted behavior: In order to achieve short-term goals, managers may adopt strategies that are not conducive to long-term development, such as cutting R&D budgets, ignoring product quality, etc., in order to pursue higher short-term performance.
2. Bias of pay setters: Pay setters may have personal biases, such as favoring certain people or departments, resulting in unfair pay distribution. Additionally, if compensation is directly tied to measurable outcomes, managers may try to manipulate those measures to get themselves higher pay.
3. Ignoring immeasurable contributions: Some managers’ contributions cannot be reflected in measurable results, such as developing employees’ abilities and improving team morale. If compensation is directly tied to measurable results, these non-measurable contributions may be overlooked.
4. Incentive Conflicts: Managers may face incentive conflicts if their compensation is tied to several different performance measures. For example, if managers' compensation is tied to both sales and customer satisfaction, they may face difficulty weighing these two metrics.
5. Politicization of organizations: If managers' compensation is directly tied to measurable results, organizations are likely to become more politicized. Managers may engage in power struggles for their own self-interest rather than to achieve the overall goals of the organization.

So while tying managers’ compensation directly to measurable results may have some short-term benefits, in the long term it could lead to a host of problems. In order to avoid these problems, organizations should adopt more complex and comprehensive compensation systems that comprehensively consider multiple aspects of managers' performance and contributions.

Question 7:What should be the goals of managers?

Managers’ goals should include the following aspects:

1. Achieve the overall goals of the organization and the goals of each area. Managers need to set and achieve the organization's overall goals and goals in various fields, including finance, marketing, production, R&D, human resources and other fields. These goals should be consistent with the organization's strategy and vision and be able to be translated into concrete action plans and metrics.
2. Optimize the management and operations of your organization. Managers need to take various measures to optimize the organization's management and operations, including formulating organizational structures, processes and systems, coordinating the work of various departments and employees, and ensuring that the organization's operations are efficient, stable, and reliable.
3. Motivate and communicate. Managers need to motivate employees, communicate with employees, stimulate employees' enthusiasm and creativity, and improve employee satisfaction and loyalty. At the same time, it is also necessary to communicate and coordinate effectively with superiors, peers and subordinates to ensure smooth flow of information and coordination of work.
4. Evaluate and improve organizational performance. Managers need to evaluate the organization's performance, analyze problems and deficiencies, and take steps to improve it. Evaluations should be based on objective criteria and data, including financial indicators, customer satisfaction, employee satisfaction, etc.
5. Develop human resources. Managers need to develop human resources, including recruitment, training, promotion, rewards, etc. These tasks should be consistent with the organization's strategies and goals, aiming to improve the quality and capabilities of employees and promote their personal development and the overall development of the organization.
6. Managing the social impact and social responsibility of the organization. Managers need to manage the social impact and social responsibilities of the organization, including environmental protection, social responsibility, public relations and other aspects. These tasks should comply with the requirements of laws, regulations and ethics and aim to improve the organization's image and social value.

In short, the goals of managers should be multifaceted, including achieving the overall goals of the organization, optimizing the organization's management and operations, motivating and communicating, evaluating and improving the organization's performance, developing human resources, and managing the social impact and social responsibility of the organization. etc. work. These goals need to be consistent with the organization's strategy and vision and be able to be translated into concrete action plans and metrics.

Question 8:What problems does movement management cause?

Sports management may cause the following problems:

1. Short-term behavior: Movement management often focuses on short-term goals and ignores long-term development. This may result in companies focusing only on current performance and neglecting long-term strategy and continued development.
2. Waste of resources: Movement management may lead to waste of resources. Because management's decisions may lack forethought, resources may be allocated inappropriately among projects, resulting in some projects being over-supported and others under-resourced.
3. Employee fatigue: Movement management can lead to employee fatigue. As management continually introduces new campaigns or projects, employees may feel overstressed or even resistant. This can reduce employee productivity and motivation.
4. Trust issues: Movement management can lead to trust issues. Management may use coercive or punitive measures to push employees to perform tasks, which may make employees feel distrustful or disrespected. This can lead to employees losing trust in management, reducing productivity and willingness to cooperate.
5. Difficulty in Continuous Improvement: Movement management can make it difficult to continuously improve. As management focuses on short-term goals rather than long-term improvement and innovation, businesses may fail to achieve continuous improvement and long-term growth.

Therefore, movement management may bring about a series of problems, including short-term behavior, waste of resources, employee fatigue, trust issues and difficulty in continuous improvement. In order to avoid these problems, companies should adopt more scientific and sustainable management methods, focus on long-term strategy and sustainable development, and pay attention to the needs and interests of employees.

Question 9:How should managers’ goals be set?Who should set them ?

Managers' goals should be formulated in light of the organization's overall strategies and goals. When setting goals, managers need to analyze the organization's internal and external environment, determine the organization's goals and strategies, and then break them down into goals for each department and position, and communicate with employees to jointly develop specific action plans.

Manager's goals should be set jointly by managers and employees. Managers should communicate with employees to understand their needs and expectations, and combine them with the organization's overall strategies and goals to formulate goals that are consistent with the actual situation of the organization. In the process of setting goals, managers need to take into account the interests of employees and the organization, as well as the achievability and measurability of the goals.

In short, managers' goal setting needs to be combined with the overall strategy and goals of the organization, while communicating with employees and jointly formulating specific action plans to ensure the realization and achievement of goals.

Question 10:“Consider the truth” What is it??How do you use it?

“Letter to Manager” is a letter in the form of a letter to a manager Instructional articles designed to help them better perform their management responsibilities. The letters cover a variety of management topics, from how to set goals to how to resolve employee disputes and how to lead a team.

To use"Letter to Manager", First you need to understand its content and purpose. These letters are not simple suggestions or tips, but in-depth analysis and solutions for real management scenarios. Therefore, when using these letters, you need to carefully read and understand the contents and apply them based on your own actual situation.

Secondly, you need to clarify your management goals and problems. When reading the letter, you need to think about your management goals and current problems, and try to compare and think about the suggestions and cases in the letter with your actual situation.

Finally, the suggestions in the letter need to be put into practice. Only by transforming theoretical knowledge into practical experience can we truly achieve our full potential"Letter to Manager"< The role of a i=4>. Therefore, after reading the letter, you need to formulate a specific action plan, apply the suggestions to actual management, and continuously observe and evaluate the effects.

In summary,"Letter to Manager" is A valuable resource that can help managers better fulfill their responsibilities and improve management effectiveness. However, to get the most out of it requires careful reading, in-depth understanding and practice.

Question 11:What kind of performance evaluation do managers need?

Managers need a comprehensive and accurate performance evaluation method to ensure that the overall goals of the organization and the goals of each area are achieved. Here are some key performance evaluation criteria:

1. Clear goals: Managers should set clear, specific, measurable goals and communicate these goals to employees to ensure that everyone understands the contribution of their work to the organization.
2. Performance Standards: Managers should set clear performance standards and ensure that every employee understands them. These standards should be consistent with the overall goals of the organization and the goals of each area.
3. Fairness of evaluation: Managers should fairly evaluate employee performance, avoiding bias and subjective judgment. Assessments should be based on objective facts and data.
4. Timely feedback: Managers should give timely feedback to their employees so that they understand how they are doing and where they need to improve. Feedback should be constructive and designed to help employees improve the efficiency and quality of their work.
5. Motivating employees: Managers should adopt appropriate incentives to encourage employees to improve their performance. This can include offering incentives, promotion opportunities, training and other benefits.
6. Focus on team performance: Managers need to focus not only on their employees’ individual performance, but also on team performance. Team performance is one of the key factors for organizational success, so managers should ensure cooperation and coordination among team members.
7. Continuous improvement: Managers should continually seek opportunities for improvement and develop improvement plans with employees. This helps improve the overall efficiency and competitiveness of the organization.

In summary, a manager's performance appraisal should be a comprehensive and accurate approach designed to ensure that the organization's overall goals and objectives in each area are achieved. Evaluation criteria should be clear, fair, timely, motivate employees, focus on team performance and enable continuous improvement.

Question 12:What assumptions should managers make about the motivations of managers and professionals?

Regarding the motivations of managers and professionals, managers should make the following assumptions:

1. Motivation is complex: people pursue a variety of goals that may conflict with or reinforce each other. Therefore, managers need to understand each employee's personal goals, values, and needs.
2. Motivation is dynamic: people's motivations change as time and circumstances change. Therefore, managers need to regularly reassess employees' motivations and goals to ensure they are consistent with the organization's mission and goals.
3. Motivation is interconnected: a person's motivations influence not only his or her own behavior, but also the motivations and behavior of others. Therefore, managers need to create a positive, supportive and challenging work environment to stimulate positive motivation among employees and encourage them to work towards common goals.
4. Motivation is inducible: People's motivations can be changed through external incentives (such as rewards, punishments). Therefore, managers need to understand which motivational means best meet the needs of employees and use these means flexibly to motivate employees.
5. Motivation is self-fulfilling: People's motivations are largely influenced by themselves. Therefore, managers need to provide opportunities and resources that enable employees to achieve their goals while encouraging them to contribute to the success of the organization.

In summary, managers should assume that each employee has their own motivations and goals that influence their behavior and performance. Therefore, managers need to understand employees' motivations and goals and adopt appropriate strategies to stimulate their positive motivation and improve their performance and satisfaction.