Peter F. Drucker

Topics: Management, Peter Drucker, Management by objectives Pages: 5 (955 words) Published: October 9, 2014
PETER FERDINAND DRUCKER

Peter Ferdinand Drucker (November 19, 1909 – November 11, 2005) was an Austrian-born American management consultant, educator, and author, whose writings contributed to the philosophical and practical foundations of the modern business corporation. He was also a leader in the development of management education, and he invented the concept known as management by objectives.

INTRODUCTION

drucker's books and scholarly and popular articles explored how humans are organized across the business, government, and non-profit sectors of society. he is one of the best-known and most widely influential thinkers and writers on the subject of management theory and practice. his writings have predicted many of the major developments of the late twentieth century, including privatization and decentralization; the rise of japan to economic world power; the decisive importance of marketing; and the emergence of the information society with its necessity of lifelong learning. in 1959, drucker coined the term “knowledge worker" and later in his life considered knowledge worker productivity to be the next frontier of management.[4] peter drucker gave his name to three institutions: the drucker institute and the peter f. drucker and masatoshiito graduate school of management, both at claremont graduate university, and the peter f. drucker academy. the annual global peter drucker forum in his hometown of vienna, honor his legacy.

KEY IDEAS

1. Nature of management: 

Peter Drucker is against bureaucratic management & has emphasised management with creative & innovative characteristics. The basic objective of management is to lead towards innovation. The concept of innovation is quite broad. It may include development of new ideas, combining of old & new ideas, adaptation of ideas from other fields or even to act as a catalyst & encouraging other to carry out innovation. He has treated management as a discipline as well as a profession.

2. Management functions:

Peter Drucker opined that the, management is the organ of its institution. It has no functions in itself, & no existence in itself. He sees management through its tasks. Accordingly, there are three basic functions of a manager which he must perform to enable the institution to make its contributions for a) the specific purpose & mission of the institution, whether business, hospital or university.

3. Organization Structure: 

Peter Drucker has described bureaucratic structure because of its to many dysfunctional effect. Hence, it should be replaced. He has emphasised three basic features of an effective organisation structure. These are

a) enterprise should be organized for performance
b) it should contain the least possible number of managerial level and c) it must make possible the training & testing of tomorrow’s top managers – giving responsibility to a manager while still he is young. 

4. Federalism: 

the concept of federalism has been advocate by Peter Drucker. Federalism refers to centralised control in decentralised structure. De centralised structure goes far beyond the delegation of authority. It creates a new constitution, & new ordering principle.

5. Management by Objective:

P Drucker most important contributions to the discipline of management is management by objective (MBO). He introduced this concept in a 1952. MBO has further between modified by schlep which has been termed as ‘management by results’. MBO includes method of planning setting standards performance appraisals, & motivation. According to Drucker, MBO is not only a technique of management but it is philosophy of managing.

6. Organisational Changes:

 P Drucker has visualizes rapid changes in the society because of rapid technological development. Though he is not resident to change, he feels concerned for the rapid changes & their impact on human life. Normally, some changes can be absorbed by the...
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