UGC NET COMMERCE November 2017(Paper-II) Q22
- Option : D
- Explanation : Professor Drucker regards management as an
economic organ which determines how well
or ill an enterprise fulfils its essential function:
economic performance. His basic assumption
is that in determining the economic
performance of an enterprise, the manager can
improve his performance through the
systematic study of principles, the acquisition
of organized knowledge, and the systematic
analysis of his own performance. This impact
of the manager on modern society is so great
“as to require of him the self-discipline and
the high standards of public service of a true
professional.”
Within the economic realm, Drucker’s view of management requires than mere passive adaptation to changing conditions. “It is management’s specific job,” he says, “to make what is desirable first possible and then actual. Management is not just a creature of the economy; it is a creator as well.”
Since management’s job is to make a productive enterprise out of men and materials, it accomplishes its mission by managing managers, who will be effective in fulfilling the two major functions of any business enterprise: to create customers and to innovate. These, according to Drucker are the two entrepreneurial functions.
