Several decades of practical observation led Drucker to conclude that there are five essential functions that combine to form the basis of every manager's job. Aim to improve your skills in each of these five areas, and assess your progress throughout the learning process.
The Five Functions of a Manager
1 Setting objectives
2 Organizing the group
3 Motivating and communicating
4 Measuring performance
5 Developing people
Effectiveness versus efficiency
Drucker stresses the vital distinction between effectiveness (doing the right thing) and efficiency (doing things right). For each of the five functions of a manager, ask yourself these two key questions:
* Am I truly effective?
* Or am I merely efficient?
To quantify the results, do a simple exercise. Set out two columns headed "Effective" and "Efficient" on a piece of paper, and write the five functions down the side. Against each function list the activities involved. For each function mark yourself out of 10 for effectiveness (doing the right thing) and for efficiency (doing things right).
Assessing your performance
Add up your score and compare it with the analysis below. A perfect total of 100 is unlikely. There is always a gap between actual performance and perfection — your score will show how far you have to go. Next, look at the balance between the effectiveness and efficiency scores. This is as important as your total; doing the right things badly and the wrong things well are both ineffective. Now concentrate on developing all five skills in the sections that follow.
Analysis
35 or below: your performance is inadequate. Act fast to improve your efficiency and effectiveness.
35-70: your performance is average to good, but requires improvement.
75 or above: you are efficient and effective, but cannot afford to relax.
