Friday, November 26, 2010


Business enterprises and public service institution as well are organs of society. They do not exist for their own sake, but to fulfill a specifics purpose and to satisfy a specific need of society, community or individuals.They are not ends in themselves but means. Management, in turn, is the organs of institutions. It has no function in itself, indeed, no existence in itself.Management divorced from the institution it serves is not management.There are three tasks equally important but essentially different that face the management of every institution.
  • to think through and define the specific purpose and mission of the institution,
  • to make work productive and more worker achieving and
  • to make social impacts and social responsibilities.

These might be called the dimension of management.


An institution exists for a specific purpose and mission, a specific social function.In the business enterprises this means economic performance.With respect to this first task, the task of specific performance, business and non business differ.In respect to together they are similar.In all other institution-hospital, church, university and armed services, economic is a restraint.In business enterprise, economic performance is the rationale and purpose.Business management always must, in every decision and action, put economic performance first.It can justify its existence and its authority only by the economic results it produces.A business management has failed if it fails to produce economic results.The first definition of business management is that it is an economic organ, the specifically economic organ of an industrial society.Every act, every decision, every deliberation of management, has economic performance as its first dimension. But business management is not different from the other institutions in one crucial respect; it has to manage.And managing is not just passive, adaptive behaviour, it means taking action to make the desired results come to pass.Off course it is important to adapt to economic changes rapidly,intelligently and rapidly. But managing implies responsibility for attempting to save the economic environment for planning, initiating and carrying through changes in that economic changes.


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