The Genesis and Growth of Business and Management
P Seenivasan PMP, PgMP, PfMP
The word “management” was coined in 1911. It was unknown before then. Before that, everybody assumed that the owner run a business. Non-owners, professionals, came in shortly before World War I. Simultaneously, J. P. Morgan invented professional management in America, Eiichi Shibusawa in Japan, and [Georg] Siemens in Germany. Management was a new social function, which made possible a new society, a society of organizations. According to Drucker, though business management was the first to emerge, it was neither a challenge nor the most important.
The most important and challenging ones are the management of non-businesses, such as hospitals, missions, universities, and social, religious, and spiritual establishments. They are the most interesting organizations because they have to define what they mean by results. There is no great difference between this century and the last century, except there are so many more organizations today. We became a society of organizations in the last century.
In our modern pluralist society today, the leaders of all institutions will have to learn to be leaders beyond the ‘walls’. They will have to learn that it is not enough for them to lead their own institutions—though that is the first requirement.
They will also have to learn to become leaders in the community. In fact, they will have to learn to create community. This is going beyond. . . social responsibility. Social responsibility is usually defined as doing no harm to others in the pursuit of one’s own interest or of one’s own task. The new pluralism requires what might be called civic responsibility: giving to the community in the pursuit of one’s own interest or of one’s own task.
Non-profit organizations are becoming acutely aware of the importance of defining results in terms of their mission and their ability to effectively manage to fulfil their mission. Management framework like Project DPro and Program D Pro helps to build an objective, result oriented endeavours.
Every good tree bears good fruit, but the bad tree bears bad fruit. A good tree cannot produce bad fruit, nor can a bad tree produce good fruit. Every tree that does not bear good fruit is cut down and thrown into the fire. So then, you will know them by their fruits… Scriptures say this.
For Institutions and NGOs, the product is “a changed human being”. The non-profit institutions are human-change agents. Their “product” is a cured patient, a child that learns, a young man or woman grown into a respecting adult. Forty years ago, “management” was a very bad word in non-profit organizations. Today, the non-profit institutions also realize they need management all the more because they do not have a conventional “bottom line.”
- Adapted from Maciariello, Joseph A. A Year with Peter Drucker (p. 98). Harper Business. Kindle Edition.