Peter F. Drucker Boxed Set (8 Books) (The Drucker Library)

CHAPTER TWO

A Scorecard for Management

“MANAGEMENT AUDITS” ARE HOTLY debated these days by business’ friends and by its critics, by regulatory agencies, in management seminars, and in management journals. The proponents usually argue for a searching inquiry into basic management qualities—a management’s morale and integrity, its creativity, its “social values,” its human empathy, and so on. “Nonsense,” snort the opponents. “The only thing that counts is performance, and that is measured by the bottom line.”

Both sides, it can be said unequivocally, are wrong. There is a need to appraise management. Indeed, it is quite likely that boards of directors ...