The traditional assumption that the inside of the organization is the domain of management means that management is assumed to concern itself with efforts , if not with costs only. For effort is the only thing that exists within an organization. And, similarly, everything inside an organization is a cost center. Management must focus on the results and performance of the organization. It is therefore the specific function of management to organize the resources of the organization for results outside the organization.
Management exists for the sake of the institution's results .
It has to start with the intended results and has to organizthe resources of the institution to attain these results. It is the organ to make the institution, whether business, church, university, hospital or a battered women's shelter, capable of producing results outside of itself. Schools and training departments are organizations, and they too must shoulder responsibility for what goes on outside their cloistered halls. Were they not so insulated, schools wouldn't need to resort to grades, and it wouldn't be so tough to cost-justify corporate training. Even organization operates on a Theory ofthe Business , that is, a set of assumptions as to what its business is, what its objectives are, how it defines results, who its customers are, what the customers value and pay for.