Contribution
of Peter F. Druker in modern management
of Peter F. Druker in modern management
Peter Ferdinand Drucker 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, he invented the concept known as management by objectives and self-control.
He has been described as “the founder of modern management”
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, he invented the concept known as management by objectives and self-control.
He has been described as “the founder of modern management”
As
we know that Drucker is highly respected management thinker. He is a prolific
writer and has published several books and articles on the management
practices. He is so versatile that there is hardly any area in management which
is not touched by him.
we know that Drucker is highly respected management thinker. He is a prolific
writer and has published several books and articles on the management
practices. He is so versatile that there is hardly any area in management which
is not touched by him.
Now
we will discuss his views on management which as follows:-
we will discuss his views on management which as follows:-
1. Management as a Practice
According to Drucker
management has two important functions:-
management has two important functions:-
i.
Innovation
Innovation
ii.
Marketing
Marketing
He
has treated management as a discipline as well as profession, according to him,
management is more a practice. It is always a goal oriented.
has treated management as a discipline as well as profession, according to him,
management is more a practice. It is always a goal oriented.
Why he
has said that the reason being on the point of view purpose of any business as
the creation of customer.
has said that the reason being on the point of view purpose of any business as
the creation of customer.
If
understood and in the right way helps any organization to achieve success.
understood and in the right way helps any organization to achieve success.
2.
Functions
of Management
Drucker points out three
basic functions of Management which as follow:-
basic functions of Management which as follow:-
i.
The achievement of purpose and mission of the
institution;
The achievement of purpose and mission of the
institution;
ii.
Make the work productive and the worker
achieving;
Make the work productive and the worker
achieving;
iii.
Effective management of social responsibility.
Effective management of social responsibility.
3.
Objective
Setting
Drucker has attached great
importance to objective setting. He has specified the objectives should be set
for all the key result areas of business.
importance to objective setting. He has specified the objectives should be set
for all the key result areas of business.
To make the objective
setting and their achievement more meaningful he has given new tool, which is
known as ‘Management by objectives (MBO)’
setting and their achievement more meaningful he has given new tool, which is
known as ‘Management by objectives (MBO)’
MBO is
regarded as one of his most important contribution to the discipline
management. He has discussed the concept in great details in his book which
name is The Practice of Management.
regarded as one of his most important contribution to the discipline
management. He has discussed the concept in great details in his book which
name is The Practice of Management.
MBO is
the process whereby superior and subordinates jointly identify the common
objective, set the results that should be achieved by subordinates and assess
the contribution of each individuals.
the process whereby superior and subordinates jointly identify the common
objective, set the results that should be achieved by subordinates and assess
the contribution of each individuals.
4.
Orientation
towards future
Drucker visualized the
concept of modern organization and its impact on the society several years ago. His views on the many facets of the modern corporations have almost all become
reality now.
concept of modern organization and its impact on the society several years ago. His views on the many facets of the modern corporations have almost all become
reality now.
To put it in his own words,
he described the present age as the “age
of discontinuity”
he described the present age as the “age
of discontinuity”
5. Federalism
Drucker has advocated the
concept of federalism. Federalism according to him, involves centralized
control in a decentralized structure.
concept of federalism. Federalism according to him, involves centralized
control in a decentralized structure.
Federalism has certain
positive values over other methods of organizing which as follow:-
positive values over other methods of organizing which as follow:-
- It sets the top management free to devote
itself to major policy formulation and strategy development. - It defines the functions and responsibilities
of the operating people. - It creates yardsticks to measure twin success
and effectiveness in operating jobs. - It helps to resolve the problem of continuity
through giving educational to the managers of various units while in an
operating position.