Peter Ferdinand Drucker

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 ORGANISATION BUT NOT THE RAPID CHANGES. SINCE
RAPID CHANGES ARE OCCURRING IN THE SOCIETY, HUMAN BEINGS SHOULD DEVELOP
PHILOSOPHY TO FACE THE CHANGES & TAKE THEM AS CHALLENGES OF MAKING THE SOCIETY
BETTER.








WRITINGS

PETER F. DRUCKER HAS WRITTEN ABOUT 39 BOOKS, ALONG WITH VARIOUS MONOGRAPHS
AND HAS ALSO ASSISTED SEVERAL OTHER WRITERS IN THEIR WRITINGS.

SOME OF HIS MOST POPULAR WORKS ARE:

1. THE PRACTICE OF MANAGEMENT (1954)

2. THE EFFECTIVE EXECUTIVE (1966)

3. INNOVATION AND ENTREPRENEURSHIP (1985)

4. MANAGEMENT CHALLENGES FOR THE 21ST CENTURY (1999)

5. MANAGING THE NONPROFIT ORGANIZATION: PRINCIPLES AND PRACTICES (1990)



AWARDS AND HONOURS


DRUCKER WAS AWARDED THE PRESIDENTIAL MEDAL OF FREEDOM BY US PRESIDENT GEORGE
W. BUSH ON JULY 9, 2002. HE ALSO RECEIVED HONOURS FROM THE GOVERNMENTS OF
AUSTRIA, INCLUDING THE GRAND SILVER MEDAL FOR SERVICES TO THE REPUBLIC OF AUSTRIA IN
1974, THE GRAND GOLD DECORATION FOR SERVICES TO THE REPUBLIC OF AUSTRIA IN
1991AND THE AUSTRIAN CROSS OF HONOUR FOR SCIENCE AND ART, 1ST CLASS IN 1999 AND
JAPAN (ORDER OF THE SACRED TREASURE, 3RD CLASS; 24 JUNE 1966).


DRUCKER WAS THE HONORARY CHAIRMAN OF THE PETER F. DRUCKER FOUNDATION FOR NON-
PROFIT MANAGEMENT, NOW THE LEADER TO LEADER INSTITUTE, FROM 1990 THROUGH
2002. IN 1969 HE WAS AWARDED NEW YORK UNIVERSITY’S HIGHEST HONOUR, ITS
PRESIDENTIAL CITATION. FOR HIS ARTICLE, "WHAT MAKES AN EFFECTIVE
EXECUTIVE", HARVARD BUSINESS REVIEW HONOURED DRUCKER IN THE JUNE 2004 WITH HIS
SEVENTH MCKINSEY AWARD — THE MOST AWARDED TO ONE PERSON. DRUCKER WAS INDUCTED
INTO THE JUNIOR ACHIEVEMENT US BUSINESS HALL OF FAME IN 1996. HE RECEIVED 25
HONORARY DOCTORATES FROM AMERICAN, BELGIAN, CZECH, ENGLISH, SPANISH AND SWISS
UNIVERSITIES. HIS 1954 BOOK THE PRACTICE OF MANAGEMENT WAS VOTED THE THIRD MOST
INFLUENTIAL MANAGEMENT BOOK OF THE 20TH CENTURY IN A POLL OF THE FELLOWS OF
THE ACADEMY OF MANAGEMENT. IN CLAREMONT, CALIFORNIA, ELEVENTH STREET BETWEEN
COLLEGE AVENUE AND DARTMOUTH AVENUE WAS RENAMED "DRUCKER WAY" IN OCTOBER
2009 TO COMMEMORATE THE 100TH ANNIVERSARY OF DRUCKER'S BIRTH.


SOURCES

http://hbr.org/2009/11/why-read-peter-drucker/ar/1

http://www.cgu.edu/pages/292.asp

http://en.wikipedia.org/wiki/Peter_Drucker

http://www.success.com/article/peter-drucker-the-father-of-
management-theory

http://mbapunebooks.blogspot.in/2011/01/contribution-by-peter-
f-drucker-mbo.html