Peter drucker

Peter Drucker contributions to management

1. Done by, Katta Ananya Sree 3225116109

2. Peter Ferdinand Drucker (Nov 19,1909-Nov 11,2005) Born in Vienna,Austria Earned Doctorate in International Law in Germany Moved to U.S. and became citizen in 1943 Popularly known as “The Father of Modern Management” Professor at New York University (1950-1971) Professor at Claremont Graduate University (1971-2005) Awarded presidential medal of freedom by G.W.Bush (2002) Writer, consultant, economist ( Author of 39 books and countless popular articles about humans in business, government and non profit world)

3. Contributions of Peter Drucker Management by Objectives (MBO) A manager’s primary task is to manage for results by translating corporate objectives into departmental, group, and individual measures of performance. Federalism – Division of power It is a concept of centralised control in decentralised structure. He has emphasised close links between the decisions adopted by the top management and the autonomous unit.

4. Management Functions Management is the organ of institution. He sees management through its tasks. Accordingly , There are Three basic functions of management : Managing a Business Managing managers Managing workers and work Five functions of Manager: Set objectives Organise Motivate and communicate Measurement Develop people

5. Organisation Structure He has emphasised three basic characteristics of an effective organisation structure. These are: Enterprise should be organised for performance I t should contain the least possible number of managerial levels I t must make possible the training and testing of tomorrow’s top manager Nature of Management He treated management as a discipline as well as profession.The basic objective of management is to lead towards innovation.

6. Organisational changes Drucker has visualised rapid changes in the society because of rapid technological development. Though he is not resistant to change, he feels concerned for the rapid changes and their impact on human life . Since rapid changes are occurring in the society, human beings should develop philosophy to face the changes and take them as challenges for making the society better. This can be done by developing dynamic organizations which are able to absorb changes much faster than static ones .

7. Concept of Knowledge worker in his book “The Landmarks of Tomorrow” in 1959. He is the first person to assert that workers should be treated as assets and not as liabilities and originated the view of Corporation as a human community in 1950. Drucker and Marketing : In his most famous book “The practice of management” published in 1954, he emphasised on 3 questions that every company should seeking a brand must ask itself : What is our business? Who is our customer? What does our customer consider valuable?

8. 5 steps in decision making Define the problem Analyse the problem Develop alternative solutions Find the best solutions Implement the decision As an economist , he emphasised The importance of the non-profit sector , which he calls the third sector (private sector) play crucial roles in the economies of countries around the world. A profound skepticism of macroeconomic theory .