Answer of Managing for the Future - Peter Drucker

Topics: Latin America, United States, Developed country Pages: 34 (12776 words) Published: February 27, 2011

Q.1 Write a short note on reshaping companies.

A.1 ( Short note on reshaping companies, as per Mr. Peter Drucker In the a year, 1990's there were for reaching changes in the social & economical environment and in the strategies, structure & management of the business of companies. The trends towards central principle of International economic integration has by now become well – high irreversible, whether one likes it or not (and Mr. Peter Drucker does). Thus, the first step in the world economy will be quite different from what businesspersons, politicians & economists still means or understand about it. As per second step, into the world economy the integration of the business will start through alliances in the form of minority participations, joint ventures, and research & market groups, partnerships in subsidiaries or in special projects & cross licensing etc. Thus, markets are rapidly changing, merging cries crossing & over-lapping each other. In the third one, in 1920s, first the modern corporate organization evolved. After that, in 1990s the business will undergo more & more radical restructuring. It was treated as sensational news. Only five years ago, when Mr. Peter Drucker pointed out information based organization needs for fewer levels of management than traditional command and control model. Then a large numbers of American companies have cut management levels by one third or more. But the restructuring of corporations from smaller sized corporations, middle sized corporations & larger sized corporations. Nowadays, business will follow two new rules. 1. The first rule followed by the Business

To move work to where the people are rather than to people where the work is. This means business makes an arrangement to transfer the work towards the people instead of transfer of people towards the work.

2. The second rule followed by the Business
To farm out the activities that don't offer opportunities for advancement into fairly senior management or professional positions like clerical, maintenance or the "Back – office" in the brokerage house, for the drafting in large architectural firm, for the medical laboratory in the hospital to an outside contractors. On reason for the changes, is that this century can move ideas & information fast & cheaply. At the same time the great nineteenth–century achievement, the ability to move people, has outlived its usefulness; witness the horrors of daily commuting in most big cities & the smog the hovers over the increasingly clogged traffic arteries. Moving work out to where the people are already in full train. Few large American banks or insurance companies still process their paperwork in the downtown office. It has been moved out to a satellite in the suburbs. Few airlines still locate their reservations computer at the main office or even at the airport. At per Mr. Peter Drucker, it may take another 'energy crunch' for this trend to become a shock wave. But most work that requires neither decision making nor face-to-face customer contact will have been moved out by the decade, at least in Western countries; Tokyo and Osaka will take a little longer. Even in Japan, the trend toward 'farming out' is also well under way. Most large Japanese hospitals are today cleaned by the local affiliate of the same maintenance contractor that services most American hospitals. Underlying this trend is the growing need for productivity in service work done largely by people without much education or skill. This almost requires that the work be lodged in a separate, outside organization with its own career ladders. Otherwise, it will be given neither enough attention nor importance to ensure the hard work that needed not just on quality & training, but on work-study, work-flow and tools. At the end of the coming...
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