the practice of management book review

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Most of the books I review for the Extensor Newsletter are relatively recent publication.  This one is different.  It was first published in 1955 and I wanted to review t for two reasons.  First, because it was in its day a seminal work by the legendary Peter Drucker, a man who came to be regarded as a guru by everyone from Winston Churchill to Bill Gates and, second, because I wanted to see if its advice, written before the invention of the Internet, was still relevant in today’s fast-moving business environment.

I am sure that the age of this book, written more than 50 years ago, will put many readers off - it shouldn’t.  The book is packed full of good advice that rings as true today as I am sure it did then.  But I think its greatest value is in challenging the reader to think about how things have changed from then to now and considering whether the differences justify different actions or not.

For example, the book places great emphasis on the importance of market research.  This is because, as Drucker observes, “it is the customer who determines what a business is.”  While this is a truism, requirements change so fast that businesses often have to second-guess consumer requirements.  If they didn’t, they would be at risk of missing opportunities.  Furthermore, asking customers what they want is only of any assistance in driving incremental changes to existing products and services.  If you want to secure new customers, then a) you don’t know who they are as they are not yet customers and b) it is possible that you don’t yet have a product for them as otherwise it is likely that they would already be customers.

It is interesting also that the pace of change scarcely gets a mention.  In describing the objectives of a business, the need for flexibility, agility or scalability is not mentioned.  Whereas in today’s businesses, these are key factors. In other areas the book makes quite profound predictions.  For example, in considering the opportunities for productivity improvement Drucker suggests that “the greatest opportunities … lie in distribution”.  In other words, in the way in which the press, radio and television can be used as a substitute for individual selling effort.  This certainly came to pass and was taken a stage further with the invention of the World Wide Webb.

One of the other points the book makes that I particularly thought was highly observant was that; “A business is set apart from all other human organisations in that it markets a product or service.  Any organisation in which marketing is either absent or incidental is not a business and should never be run as if it were one.”  

The interesting thing is that for the last 20-30 years successive governments on both sides of the Atlantic have tried to run everything including the police, the NHS, schools and even natural monopolies as though they are businesses with at best disappointing results.  Once again, the great Peter Drucker was way ahead of them.

In conclusion, this is an excellent book which would unquestionably have been an outstanding book in 1955 when it was first published.  Reading it today is fascinating in demonstrating the quality if Drucker’s thinking and vision and revealing in highlighting the small number of areas in which organisation life has changed, and the larger number of areas where it has not.

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The Practice of Management

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This classic volume achieves a remarkable width of appeal without sacrificing scientific accuracy or depth of analysis. It is a valuable contribution to the study of business efficiency which should be read by anyone wanting information about the developments and place of management, and it is as relevant today as when it was first written. This is a practical book, written out of many years of experience in working with managements of small, medium and large corporations. It aims to be a management guide, enabling readers to examine their own work and performance, to diagnose their weaknesses and to improve their own effectiveness as well as the results of the enterprise they are responsible for.

TABLE OF CONTENTS

Part | 20  pages, introduction, chapter | 3  pages, the role of management, chapter | 10  pages, the jobs of management, chapter | 5  pages, the challenge to management, part | 73  pages, managing a business, chapter | 6  pages, the sears story, chapter | 13  pages, what is a business, chapter | 12  pages, what is our business – and what should it be, chapter | 22  pages, the objectives of a business, today's decisions for tomorrow's results, the principles of production, part | 69  pages, managing managers, chapter | 8  pages, the ford story, chapter | 14  pages, management by objectives and self-control, managers must manage, the spirit of an organization, chapter | 18  pages, chief executive and board, chapter | 7  pages, developing managers, part | 54  pages, the structure of management, what kind of structure, building the structure, the small, the large, the growing business, part | 74  pages, the management of worker and work, the ibm story, chapter | 9  pages, employing the whole man, is personnel management bankrupt, chapter | 11  pages, human organization for peak performance, motivating to peak performance, the economic dimension, the supervisor, the professional employee, part | 35  pages, what it means to be a manager, the manager and his work, chapter | 16  pages, making decisions, the manager of tomorrow, part | 12  pages, conclusions, the responsibilities of management.

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The Practice of Management

Peter F. Drucker | 4.33 | 2,074 ratings and reviews

Ranked #21 in Lean Startup

Reviews and Recommendations

We've comprehensively compiled reviews of The Practice of Management from the world's leading experts.

William Hopper Well, my interest was first stimulated by my elder brother and co-author Ken. As an engineer, he had worked for many different companies in Britain and the US and been struck by the enormous differences which existed in managerial styles between these two countries. Although each enjoyed strengths and weaknesses, the American version was, in his opinion, much superior. This started him off on a lifelong study of what you might call ‘comparative national managerial cultures’. He began to write a book about it way back in the 1970s, but regrettably took ill and became a chronic invalid soon... (Source)

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The Practice Of Management- a legacy of influential works - Book Review

In November 2005, the father of management theory and one of its luminaries, Peter Drucker, passed away. Renowned for seamlessly blending academic and theoretical knowledge, Drucker held diverse roles as a lecturer, management consultant, "guru," and prolific author. He left behind a legacy of 39 books and hundreds of articles, having lived to 96.

Most knowledge managers are familiar with Drucker's groundbreaking work, "Management Challenges in the 21st Century," published in 1999. In this seminal piece, Drucker explores the significance of information for managers, the knowledge worker’s role, and strategies for achieving efficiency in knowledge-rich organizations.

Equally revolutionary is Drucker's "The Practice Of Management," published in 1954, laying out modern management theory's foundational principles. While the book may not strike us as revolutionary today, it's because its methods have become ingrained in the world's practices, with many of us now reaping the benefits rather than witnessing the initial revolution.

This article aims to explore Drucker's insights not from the perspective of traditional managers but through the lens of knowledge managers. Acknowledging that our discussion merely scratches the surface of Drucker's comprehensive work, we encourage readers to delve into the books themselves. Our goal is to examine the processes inherent to knowledge management, validating and reinforcing existing methodologies while gaining insights from Drucker's timeless wisdom.

According to Drucker, successful business requires addressing the mission-oriented question, "What is our business?" This question is equally crucial in the realm of knowledge management, and its significance can be highlighted for various reasons:

Managing knowledge without a clear goal is akin to employing the proper methods for the wrong purpose. Establishing "What is our business" serves as the fundamental groundwork. Only after defining these aspects should an organization determine the focus of its knowledge management endeavors.

The "What is our business" concept often extends beyond the original boundary that shaped the organization's inception and directed its efforts. Understanding this mission becomes especially advantageous when expanding organizational boundaries. It facilitates seamless sharing and management of knowledge. Consequently, the organization can leverage existing knowledge in an expanded scope without additional investments. This is achieved by defining and organizing knowledge in a manner that aligns with the articulated mission of "What is our business."

Following the definition of the mission, Drucker explores the establishment of goals, delineating eight critical areas for goal setting related to execution and results:

Material and financial resources

Execution of managers and their development

Public Responsibility

Market Status

Profitability

Performance of employees and their attitude

We won't delve into each objective's specifics or significance here. However, it is a crucial point for our knowledgeable managers. We assert that knowledge management should serve as a means to support organizational and business goals. Drucker's list becomes a benchmark for the goals that knowledge management should prioritize. Any involvement in knowledge management not aligned with these goals is deemed ineffective and secondary.

Every manager, from the "big boss" to the production manager, requires defined goals, and the preferred method is management by objectives. This approach demands self-control and thoughtful consideration of how reports, procedures, and forms are utilized. These tools are meant to guide and control, aiding managers in achieving predetermined objectives. Drucker identifies three ways in which reports and procedures are commonly misused: first, the misconception that procedures dictate what must be done; second, viewing procedures as a substitute for decision-making authority; and third, using reports and procedures as tools for top-down supervision.

Similar concerns arise in the realm of knowledge management. There is a risk that metrics such as usage and entry levels could transform into instruments for supervisory control rather than aiding assimilation. Therefore, it is crucial to ensure that these measurements serve as tools to assist assimilation and guide knowledge managers in understanding the organization's essential needs without becoming supervision instruments.

Drucker extensively explores the worker as a valuable resource in his book. As employers, we don't simply hire the mathematical and analytical ability of an employee; we hire the person as a whole, and this distinction is essential to remember. Drucker emphasizes the unique capacity of humans to change, surpassing other animals in this aspect. Two critical concepts emerge in this context: Drucker notes that while individuals can learn rapidly, their ability to forget is comparatively slow. The learning capacity doesn't diminish over time, but the challenge lies in the increasing difficulty of forgetting what has been learned. Drucker contends that experience, rather than age, becomes the critical factor for easy forgetfulness and quick learning of new things. Knowledge managers play a vital role in combining acquired knowledge with personal experience.

The second concept addresses change management. Drucker challenges the notion that human nature inherently resists change, emphasizing the importance of creating conditions for acceptance of change. For change to be embraced, it must appear acceptable to the worker, be seen as an improvement, and unfold gradually without erasing psychological signs related to work, relationships, skills, and prestige. In the 21st century, knowledge managers should conduct an "EMI test" – to ensure that change is Engaging, Meaningful, and Immediate with visible benefits for the worker.

Drucker's exploration of integrated perfection is a focal point in his book. It advocates against separating planners from performers and treating human resources as mere components of a giant puzzle. The employee executing tasks should always witness results, even if they are not perfect. Defining a challenge, focusing on the outcome, and incorporating judgment are essential elements that drive worker productivity. Knowledge managers have a role in achieving integration by providing knowledge beyond immediate work requirements. This aligns with Nonka's perspective, emphasizing that overlapping knowledge and information foster the formation and development of knowledge. While cautioning against overflow, organizing knowledge to showcase its holistic advancement to employees is crucial, highlighting results and the overall environment rather than solely focusing on actions.

To enhance employee performance, Drucker contends that accountability is crucial. Achieving this involves four simultaneous strategies: careful placement, maintaining high-performance standards, providing employees with information (and knowledge) for self-critique, and offering participation opportunities to foster a managerial vision. Interestingly, in his later work, "The Fifth Discipline," Sanji emphasizes the significance of employees as learners, stressing that organizations evolve through individuals who engage in continuous learning. Personal skill development, mainly cultivating a personal vision, is critical in this process. As knowledge managers, we recognize our pivotal role in advancing one of the essential conditions – providing employees with information and knowledge. Drucker underscores that lacking information leaves employees without motivation and the means to enhance their performance.

In the book's concluding sections, Drucker delves into administration and management, highlighting the indispensable role of information (and knowledge) as a crucial tool for managerial performance.

Drucker introduced a novel concept in 1954 – the professional worker- alongside managers and employees. Unlike managers, the professional worker's goals stem from professional rather than business objectives, measured against professional standards.

This professional worker has five specific needs for efficiency and productivity:

Being a professional and understanding one's contribution.

Having opportunities for professional and personal advancement.

Receiving financial encouragement for improved performance.

Engaging in the occupation of a professional worker.

Receiving professional recognition within the enterprise and publicly.

According to Drucker, this definition lays the groundwork for the development of the knowledge worker. Drucker introduced the term "knowledge worker" 55 years later in "Management Challenges in the 21st Century," asserting that knowledge workers are not subordinates but colleagues. They are expected to possess superior knowledge about their occupation and job compared to their managers, with their output being knowledge itself.

In the contemporary landscape, a noticeable trend is emerging—organizations are becoming increasingly knowledge-intensive, recognizing knowledge as a paramount asset. Remarkably, the sentiments articulated by Drucker in 1954 form the bedrock of our work on a global scale and, precisely, guide knowledge managers in their roles.

Looking ahead, we hope that the world at large will embrace Drucker's concluding assertion: "Whatever a person's general education or education in management, in the future, the most decisive factor of all, even more than in the past, is neither education nor skill; It's integrity." This powerful statement underscores the enduring importance of integrity as the ultimate determining factor, surpassing education and skill in significance.

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The Practice of Management

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This classic volume achieves a remarkable width of appeal without sacrificing scientific accuracy or depth of analysis. It is a valuable contribution to the study of business efficiency which should be read by anyone wanting information about the developments and place of management, and it is as relevant today as when it was first written. This is a practical book, written out of many years of experience in working with managements of small, medium and large corporations. It aims to be a management guide, enabling readers to examine their own work and performance, to diagnose their weaknesses and to improve their own effectiveness as well as the results of the enterprise they are responsible for.

Table of Contents

Peter F. Drucker

Critics' Reviews

'It is a tour de force, brilliantly conceived and admirably carried out. It is original, stimulating and full of wisdom. Every manager in British business should buy a copy. Boards of directors might well consider presenting one to every executive.' The Times Review of Industry 'This is one of the best and certainly the most stimulating of books on management that had appeared for some years. Those who now manage ought to read it: those who try to teach management ought to buy it.' The Times Educational Supplement

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The Practice of Management Hardcover – January 1, 1954

• Print length 404 pages
• Language English
• Publisher Harper & Row
• Publication date January 1, 1954
• See all details

Product details

• ASIN ‏ : ‎ B000MTCYLM
• Publisher ‏ : ‎ Harper & Row; DJ Has Edgewear, Closed Tears edition (January 1, 1954)
• Language ‏ : ‎ English
• Hardcover ‏ : ‎ 404 pages
• Item Weight ‏ : ‎ 1.55 pounds
• Best Sellers Rank: #2,736,282 in Books ( See Top 100 in Books )

About the author

Peter f. drucker.

Peter F. Drucker (1909-2005) was considered the top management thinker of his time. He authored over 25 books, with his first, The End of Economic Man published in 1939. His ideas have had an enormous impact on shaping the modern corporation. One of his most famous disciples alive today is Jack Welch. He was a teacher, philosopher, reporter and consultant.

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The 9 Most Common Habits of Blue Zones - Including Tea!

Blue Zones are regions around the world where people live significantly longer, healthier lives compared to the global average (think 4 - 14 years longer!) These zones include Okinawa Japan, Sardinia Italy, Nicoya Costa Rica, Ikaria Greece, and Loma Linda California, USA. Despite their geographical differences, these communities share several lifestyle habits that contribute to their residents' exceptional longevity. Lucky for us, we can include these habits in our daily lives too! 

1. Plant-based diets

One of the most prominent habits in Blue Zones is the emphasis on plant-based diets . 

Residents consume large amounts of fruits, vegetables, whole grains, nuts, and legumes. Meat is eaten sparingly, often only on special occasions or in small portions. Eating a diet rich in plants and low in meat provides essential nutrients like vitamins, minerals, fibers and antioxidants. It also reduces the risk of chronic diseases like heart disease, diabetes, and cancer by reducing blood sugar, cholesterol and reducing inflammation. 

In Blue Zones, food isn’t just sustenance; it’s what fuels a long and healthy life and a lot of care, thought and planning goes into what food is eaten every day. 

2. Regular, Moderate Physical Activity

Ok this one may shock you - Blue Zone residents don’t engage in intense workouts or structured gym sessions; instead, they incorporate natural movement into their daily routines. 

Gardening, walking, cycling, and other low-intensity physical activities are part of everyday life. This consistent, moderate exercise helps maintain healthy body weight, boosts cardiovascular health, and keeps joints and muscles strong well into old age. 

The key is movement integrated naturally throughout the day, rather than isolated, strenuous exercise sessions. Building exercise routines that can be maintained as you age is how you keep physical activity part of your life no matter how old you are. 

3. Strong Social Connections

Maintaining strong, meaningful relationships is another common thread in Blue Zones. 

These communities prioritize family and close friendships, which provide emotional support and reduce stress. Social connections help combat loneliness, a key factor linked to higher mortality rates. In places like Okinawa, people form lifelong social circles called “moais,” which offer mutual support, financial help, and companionship. 

This sense of belonging and emotional security is a powerful contributor to longevity of the mind and the body. 

4. Stress Management and Relaxation

Stress is a part of life everywhere, but Blue Zone residents have mastered ways to manage it effectively. 

Whether it's through daily naps in Ikaria, prayer sessions in Loma Linda, or afternoon tea rituals in Okinawa, Blue Zone communities prioritize downtime and relaxation. These practices help reduce inflammation and cortisol levels, lowering the risk of chronic illnesses. The less stressed you are, the lower your blood pressure and heart rate. Your immune system is stronger with lower stress and your sleep quality is significantly higher. 

Incorporating relaxation techniques like meditation, deep breathing , or simply taking a break can help manage stress and improve overall well-being.

5. Purpose-Driven Lives

Having a sense of purpose, or “ikigai” in Okinawa and “plan de vida” in Nicoya, is a common characteristic of Blue Zone inhabitants. 

Knowing your purpose in life gives a reason to get up in the morning. Purpose-driven individuals are often more active, socially connected, and motivated to take care of their health. Studies have shown that a strong sense of purpose can significantly reduce the risk of cardiovascular disease, stroke, and cognitive decline. 

Finding your purpose may feel like a tricky task to take on, experts say that reflecting on your passions and interests and experimenting with new hobbies and job opportunities that align with what excites you and brings you joy is a great way to start. 

6. Eating Until 80% Full

Another dietary practice common in Blue Zones is the habit of eating until they are about 80% full, a concept known as “hara hachi bu” in Okinawa. 

This mindful approach to eating helps prevent overeating and maintains a healthy weight. By eating slowly and savoring meals, you can better recognize when you are satisfied rather than stuffed. 

This habit naturally regulates calorie intake, reduces digestive stress, and helps maintain a balanced weight throughout life. If you’re a member of the “clean plate club” this tip could seem like a throw away. Trust us, it’s not! To slow down your eating pace and allow yourself to feel full faster, try taking a sip of water between bites of food, putting your utensils down or taking smaller bites. Engage in conversation if you’re eating with someone and savor the flavors of your meal. 

7. Moderate Alcohol Consumption

While some Blue Zones are alcohol-free, many incorporate moderate alcohol consumption into their daily lives. 

The key is moderation—often just one or two small glasses of wine per day, typically consumed with food and in the company of friends and family. In Sardinia, residents enjoy Cannonau wine, which is rich in antioxidants and linked to better cardiovascular health. 

Studies do show that drinking in moderation can have health benefits, but it's important to note that these benefits are best achieved when alcohol is consumed responsibly and as part of a well balanced diet.

8. Green Tea and Matcha Consumption

Green tea and matcha are staples in Okinawa, where people have some of the longest life expectancies in the world. 

Rich in antioxidants, particularly catechins , green tea has anti-inflammatory properties that help protect against heart disease , certain cancers , and cognitive decline . Matcha, a powdered form of green tea, offers even more concentrated benefits. Due to the presence of an amino acid called l-theanine , it provides a steady release of energy without the jitters associated with coffee and helps improve focus, reduce stress , and boost the immune system. 

Incorporating green tea or matcha into your daily routine can provide a soothing ritual that supports both physical and mental health.

9. Prioritizing Rest and Sleep

Residents of Blue Zones prioritize getting adequate rest and quality sleep , which is crucial for maintaining overall health and longevity. 

Unlike in high-stress urban environments, people in these regions adhere to natural sleep cycles, often influenced by sunrise and sunset. Napping is also a common practice, especially in places like Ikaria, where afternoon siestas are a daily ritual. Good sleep hygiene is linked to better cognitive function, improved mood, and reduced risk of chronic diseases. 

Blue zone communities demonstrate that rest is not a luxury but a necessary part of a healthy, balanced life. Take sleep seriously and your body and mind will thank you for it. 

The bottom line

The habits of Blue Zones provide valuable insights into how we can enhance our own lives by embracing simple, healthy routines. Establishing habits for living longer is a marathon, not a sprint.  You don’t need to change every aspect of your lifestyle to improve longevity. Pick a few of these to try and see if they change the way you feel day to day. Drinking matcha is our favorite! Everyone can take meaningful steps toward a longer, healthier, and more fulfilling life.

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Chareonrungrueangchai, K., Wongkawinwoot, K., Anothaisintawee, T., & Reutrakul, S. (2020). Dietary Factors and Risks of Cardiovascular Diseases: An Umbrella Review. Nutrients, 12(4), 1088. https://doi.org/10.3390/nu12041088

Katz, D. L., & Meller, S. (2014). Can we say what diet is best for health?. Annual review of public health, 35, 83–103. https://doi.org/10.1146/annurev-publhealth-032013-182351

Snell-Bergeon, J. K., & Wadwa, R. P. (2012). Hypoglycemia, diabetes, and cardiovascular disease. Diabetes technology & therapeutics, 14 Suppl 1(Suppl 1), S51–S58. https://doi.org/10.1089/dia.2012.0031

Leech, R. M., Worsley, A., Timperio, A., & McNaughton, S. A. (2015). Understanding meal patterns: definitions, methodology and impact on nutrient intake and diet quality. Nutrition research reviews, 28(1), 1–21. https://doi.org/10.1017/S0954422414000262

Roundtable on Population Health Improvement; Board on Population Health and Public Health Practice; Institute of Medicine. Business Engagement in Building Healthy Communities: Workshop Summary. Washington (DC): National Academies Press (US); 2015 May 8. 2, Lessons from the Blue Zones®. Available from: https://www.ncbi.nlm.nih.gov/books/NBK298903/

McEwen B. S. (2006). Protective and damaging effects of stress mediators: central role of the brain. Dialogues in clinical neuroscience, 8(4), 367–381. https://doi.org/10.31887/DCNS.2006.8.4/bmcewen

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