Management Cases, Revised Edition PDF
Preview Management Cases, Revised Edition
Management Cases Peter F. Drucker Contents Preface vii Foreword by Warren G. Bennis ix Part I Management’s New Realities 1 Case Number 1 Yuhan-Kimberly’s New Paradigm: Respect for Human Dignity 3 Part II Business Performance 9 Case Number 2 What Is OUR Business? 11 Case Number 3 What Is a Growth Company? 15 Case Number 4 Success in the Small Multinational 17 Case Number 5 Health Care as a Business 20 Part III Performance in Ser vice Institutions 23 Case Number 6 The University Art Museum: Defining Purpose and Mission 25 Case Number 7 Rural Development Institute: Should It Tackle the Problem of the Landless Poor in India? 34 iv Contents Case Number 8 The Future of Mt. Hillyer College 53 Case Number 9 The Water Museum 56 Case Number 10 Should the Water Utility Operate a Museum? 60 Case Number 11 Meeting the Growing Needs of the Social Sector 64 Case Number 12 The Dilemma of Aliesha State College: Competence versus Need 68 Case Number 13 What Are “Results” in the Hospital? 71 Case Number 14 Cost Control in the Hospital 74 Part IV Productive Work and Achieving Worker 79 Case Number 15 Work Simplification and the Marketing Executive 81 Case Number 16 The Army Ser vice Forces 83 Case Number 17 How Does One Analyze and Organize Knowledge Work? 89 Case Number 18 Can One Learn to Manage Subordinates? 93 Case Number 19 How to Staff the Dead-end Job? 96 Case Number 20 The New Training Director in the Hospital 99 Case Number 21 Are You One of “Us” or One of “Them”? 102 Case Number 22 Midwest Metals and the Labor Union 105 Case Number 23 Safety at Kajak Airbase 108 Part V Social Impacts and Social Responsibilities 111 Case Number 24 Corporate Image to Brand Image: Yuhan-Kimberly 113 Contents v Case Number 25 The Peerless Starch Company of Blair, Indiana 116 Part VI The Manager’s Work and Jobs 123 Case Number 26 Alfred Sloan’s Management Style 125 Case Number 27 Performance Development System at Lincoln Electric for Ser vice and Knowledge Workers 128 Case Number 28 Internal and External Goal Alignment at Texas Instruments 134 Case Number 29 Can You Manage Your Boss? 138 Case Number 30 Ross Abernathy and the Frontier National Bank 142 Case Number 31 The Failed Promotion 147 Part VII Managerial Skills 155 Case Number 32 Lyndon Johnson’s Decision 157 Case Number 33 The New Export Manager 161 Case Number 34 The Insane Junior High School Principal 163 Case Number 35 The Structure of a Business Decision 167 Case Number 36 The Corporate Control Panel 170 Part VIII Innovation and Entrepreneurship 173 Case Number 37 Research Strategy and Business Objectives 175 Case Number 38 Who Is the Brightest Hamster in the Laboratory? 179 vi Contents Case Number 39 Andy Grove of Intel: Entrepreneur Turned Executive 183 Case Number 40 The Chardack-Greatbatch Implantable Pacemaker 188 Part IX Managerial Organization 191 Case Number 41 The Invincible Life Assurance Company 193 Case Number 42 The Failed Acquisition 200 Case Number 43 Banco Mercantil: Organization Structure 203 Case Number 44 The Universal Electronics Company 210 Case Number 45 Research Coordination in the Pharmaceutical Industry 215 Case Number 46 The Aftermath of Tyranny 218 Case Number 47 What Is the Contribution of Bigness? 220 Part X New Demands on the Individual 225 Case Number 48 The Function of the Chief Executive 227 Case Number 49 Drucker’s Ideas for School Reform 230 Case Number 50 What Do You Want to Be Remembered For? 240 About the Authors Credits Cover Copyright About the Publisher Preface The fifty cases in this book all deal with specific situations, specific problems, specific decisions—every one of them typical and fairly common in business and public ser vice organizations. They are all management situations, management problems, and management de- cisions—and that means that they deal with what people have to face, what p eople have to resolve, and what p eople have to decide. They are thus typical of the kind of situation, problem, and decision everyone in management commonly faces—the kind of situations, problems, and decisions today’s executives and students are likely to face tomor- row. They should thus be approached by students and instructors as cases that ask, How should one handle this? The cases are organized into ten groups following the organization of the text Management: Revised Edition. They are: I Management’s New Realities II Business Performance III Performance in Ser vice Institutions IV Productive Work and Achieving Worker V Social Impacts and Social Responsibilities VI The Manager’s Work and Jobs VII Managerial Skills viii Preface VIII Innovation and Entrepreneurship IX Managerial Organization X New Demands on the Individual Each case has one primary focus. Each is also concerned—as is every managerial situation, managerial problem, and managerial deci- sion—with both the organization and the whole person. Each can be read, discussed, and used for one main point and purpose; and each can be read, discussed, and used to gain insight into the complexity of institutions and of human behavior in institutions. The cases all deal with real people in real situations and can be used in discussion groups as well as for a topic for a paper. Most im- portant, the cases can be used to help readers convert the information and examples in the text into the real knowledge that one gains when the discipline of management is put into practice. Peter F. Drucker Foreword Rigor and Relevance The truth is that nobody can replace Peter. He was one of a kind. That’s what makes a genius, that unique quality, the sui generis, the kind of mastery that comes once in a while and makes us feel really blessed. The beauty, for those of us who are trying to follow in his footsteps, is that, as Isaac Newton once said, “We dwarfs have the good fortune of being able to stand on the shoulders of giants which allows us to see further.” My relationship with Peter goes way back. I was first introduced to him by my main mentor, Douglas McGregor. He brought us together when I had just got out of my PhD program at MIT, and we became friends. In fact, when I first moved out to Southern California in 1980, Peter and his wife, Doris, were settled in Claremont. Shortly after I ar- rived in California, Peter called and invited me to have dinner. I spent the afternoon by the pool and had dinner with the Druckers. My relationship with Peter was always interesting because I felt I was his brother. I felt he was my older brother by about two decades or so . . . and I kept seeking his approval, which I never felt I got fully. It was always so wonderful because, though he would try to do it po- litely, he was so straightforward. He would simply say, “Uhmm . . . but, Warren . . . you have it wrong.” Peter always kept me on edge.
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