Peter Drucker

Topics: Management, Peter Drucker, Management by objectives Pages: 7 (1569 words) Published: July 1, 2015

An organization is to be defined as a social entity knowingly created and recreated to hunt for particular objectives (Etzioni, 1964). Although this definition is out-of-date, the perception of what an organization should be stayed the same. The term can also refer to the staffs themselves or the progression of reaching a mutual objective, classified into product and service based. Effective modern organizations should be able to turn their investments to lucrative profits hence minimizing the workload as one successful entity in order to accomplish its objective. Given the wide range choices of business strategies, it is understandable that there are huge amount of business philosophies in which they can be utilized. With that said, Peter Drucker, also known as “the father of modern management”, has indeed transformed modern management philosophy into a profound regulation (Rosenstein, 2008). Peter Drucker  a man, born in 1909 in Vienna, entered a London investment organization upon the rising of Hitler, before he moved to the United States in 1937 (Hiltzik, 2009). He received education in Austria and England and acquired a law doctorate in Germany (Duncan, n.d.). He later transferred to the New York University after he taught at Bennington College in which he settled for two decades, then he became a professor at Claremont Graduate University from 1971 almost until his passing away (op.cit.). Following his death at the age of 95, Peter Drucker’s teachings on business management have preserved their astounding insight for several years.

Management by Objectives

Many of the concepts that Drucker established since the 1940s have been instilled into the basis of the world renowned organizations and adopted as secondary features by a communal entrepreneurs’ generation (Wartzman, 2007). Among them, Peter Drucker has introduced the concept of management by objectives (MBO). MBO has gotten its share of reviews over the past and it can be defined by which managers of the organization come together identifying objectives, visibly outline the responsibilities of each employee for reaching them, and discover how to evaluate the outcomes (Wartzman, 2008). MBO is well-known and highly practiced among the modern organizations, such as Hewlett-Packard (Mougayar, 2013). Since the manufacturing of the first personal computer in 1968, Hewlett-Packard has developed into one of the leading organizations over the years (Gustin, 2013). When the founders of Hewlett-Packard became aware that the only solution to handle their increasing number of employees that were distributed in various places was to appoint them goals, however also allowing them the rights to reach goals in the methods they find best, within their specific area of duties  the concept of MBO was hence implemented (Mougayar, 2013). As MBO is viewed as a repetitive process, long term and short term goals are determined, which are obtained from the objectives of Hewlett-Packard. Throughout a certain time period, the managers of Hewlett-Packard regularly gather to evaluate the performance of the employees in regards to achieving goals. Dave Packard, one of Hewlett-Packard’s founders, therefore mentioned that the contribution of MBO has led to the company’s success more than any operating system (Witcher & Butterworth, 2000).

Knowledge Workers

Drucker’s concepts are often regarded as common sense today as they are widely recognized. His creations and personal connections have indeed sculpted the minds of the modern management in leading organizations. Before anybody realized or valued how knowledge would prevail basic matter as New Economy’s fundamental asset, Peter Drucker noted on the subject of workers who are knowledgeable (Ostdick, 2010). Modern organizations, such as Dow Chemical (DOW), can no more distribute data exclusively to the workers if they wish to increase their business output (Colak, 2012). As the workers realize how their...

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