That intellectual leadership in management is urgently needed can hardly be denied. Managing can no longer be only a practical art requiring merely native intelligence and experience. The rapid growth of underlying knowledge and the obvious need for even more, particularly that knowledge which is organized and useful for improvement of practice are requirements which have tremendous significance.
For people in every type of enterprise, at any part of the globe, the challenge of creating a highly productive society is great. History teaches us that when needs exist and are recognized, leadership usually rises to inspired solutions. The challenging needs are here, waiting the application of knowledge, which is aimed at making you more effective as a person and as a manager so that you can lead a productive organization.
Many overall controls are financial. One widely used control of overall performance is the summary budget, which is a summary of all operating revenue and expenses budgets. Another kind of control is profit and loss control. Still another overall control technique is the exercise of control through calculating and comparing return on investment. This approach is based on the idea that profit should not be considered as an absolute measure but as a return on the capital employed in a segment of a business. An example is the well-known Du Pont return-on-investment (ROI) model.
In carrying out the controlling function, managers have two basic approaches. The most usual one, direct control, consists of developing standards for desired performance and then comparing actual performance against these standards. The normal procedure is to trace the cause of an unsatisfactory result back to the persons responsible for it and get them to correct their practices.
The other approach is “preventive” control, in which an attempt is made to prevent negative deviations from standards by ensuring that managers at all levels apply effectively the fundamentals of management. The principle of preventive control is stated as follows: The higher the quality of managers and their subordinates, the less will be the need for direct controls. The assumptions that underline the principle of preventive control are that (1) qualified managers make a minimum of errors, (2) management fundamentals can be used to measure performance, and (3) the application of management fundamentals can be evaluated.
Without question, the manager’s role is expanding and changing. With new knowledge being developed and social forces requiring managers to take advantage of it, the danger that managers will become obsolete is growing more serious. Many factors can help avoid this possibility: managers who are willing to learn, acceleration of programs of management development more effective planning for innovation, better methods for evaluating and rewarding managerial performance more tailored information, and greater emphasis on managerial research, development and inventions. The best intellectual leadership in management is urgently required to meet the challenges.