The Public Interest

Managing the public service institution

Peter F. Drucker

Fall 1973

SERVICE institutions are an increasingly important part of our society. Schools and universities; research laboratories; public utilities; hospitals and other health-care institutions; professional, industry, and trade associations; and many others—all these are as much “institutions” as is the business firm, and, therefore, are equally in need of management. 1 They all have people who are designated to exercise the management function and who are paid for doing the management job—even though they may not be called “managers,” but “administrators,” “directors,” “executives,” or some other such title.

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