Contribution of Peter F. Druker in modern management

Contribution 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”
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.
Now we will discuss his views on management which as follows:-

Management as a Practice

According to Drucker management has two important functions:-
  1. Innovation
  2. 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. 
Why he 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.
Functions of Management
Drucker points out three basic functions of Management which as follow:-
  1. The achievement of purpose and mission of the
  2. Make the work productive and the worker achieving;
  3. Effective management of social responsibility.

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.
To make the objective 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.
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.

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.
To put it in his own words, he described the present age as the “age of discontinuity”


Drucker has advocated the 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:-
  1. It sets the top management free to devote itself to major policy formulation and strategy development.
  2.  It defines the functions and responsibilities of the operating people.
  3. It creates yardsticks to measure twin success and effectiveness in operating jobs.
  4. It helps to resolve the problem of continuity through giving educational to the managers of various units while in an operating position.
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