The first concern in building a management structure is the requirements it has to satisfy. What are its typical stresses and strains? What performance does it have to be capable of?
There are three major answers to these questions. 1. It must be organization for business performance. This is the end
which all activities in the enterprise serve. Indeed, organization can be likened to a transmission that converts all activities into the one ‘drive’, that is, business performance. Organization is the more efficient the more ‘direct’ and simple it is, that is, the less it has to change the speed and direction of individual activities to make them result in business performance. The largest possible number of managers should perform as business men rather than as bureaucrats, should be tested against business performance and results rather than primarily by standards of administrative skill or professional competence.