Strategic Management

1) Explain what Drucker means when he says, “Trees die from the top”.

According to Drucker, “Trees die from the top” means the spirit of an organization is created from the top. If an organization is great in spirit, it is because the spirit of its top people is great. If it decays, it does so because the top rots. No one should ever become a strategist unless he or she is willing to have his or her character serve as a model for top manager. Top manager include boards of directors, presidents, vice-presidents, CEOs, general managers, and senior managers, etc.

Top management is responsible for the running of the business as a whole and has specific executive powers. The manager’s responsibility to ensure each subordinate plays their part. Senior managers must select the right people as subordinates because they are the right people for the job. They must then assign them tasks that suit their skills and abilities. When senior managers delegate they retain overall control and authority as they are still responsible and will be held accountable.

A company may decide to identify individuals from among its own employees, whom it may promote and groom over the years to lead the company in due time. However, since the position of CEOs and other leaders is so vital to the success of a business, the company may also consider the option of hiring from outside, people who have a lot of experience and have previously successfully led other companies. Successful managers often possesses the quality of being perceptive and quick to notice and read correctly the changes in the external environment and can help his company adapt smoothly.

The proof of the sincerity and seriousness of a management is uncompromising emphasis on integrity of character. Character is not something one can fool people about. The people with whom a person works, and especially subordinates, know in a few weeks whether he or she has integrity or not. They may forgive a person for a...