Peter Drucker (1909–2005) was a writer, management consultant, and self-described “social ecologist.” Widely considered to be the father of “modern management,” His 39 books and countless scholarly and popular articles explored how humans are organized across all sectors of society—in business, government and the nonprofit world. 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.”
Basic ideas
Several ideas run through most of Drucker's writings:
Decentralization and simplification. Drucker discounted the command and control model and asserted that companies work best when they are decentralized. According to Drucker, corporations tend to produce too many products, hire employees they don't need (when a better solution would be outsourcing), and expand into economic sectors that they should avoid.
A profound skepticism of macroeconomic theory. Drucker contended that economists of all schools fail to explain significant aspects of modern economies.
Respect of the worker. Drucker believed that employees are assets and not liabilities. He taught that knowledge workers are the essential ingredients of the modern economy.
A belief in what he called "the sickness of government." Drucker made nonpartisan claims that government is often unable or unwilling to provide new services that people need or want, though he believed that this condition is not inherent to democracy.
The need for "planned abandonment." Businesses and governments have a natural human tendency to cling to "yesterday's successes" rather than seeing when they are no longer useful.
A belief that, taking action without thinking is the cause of every failure.
The need for community. Early in his career, Drucker predicted the "end of economic man" and advocated the creation of a "plant community" where individuals' social needs could be met. He later acknowledged that the plant community never materialized, and by the 1980s, suggested that volunteering in the non-profit sector was the key to fostering a healthy society where people found a sense of belonging and civic pride.
The need to manage business by balancing a variety of needs and goals, rather than subordinating an institution to a single value.This concept of management by objectives forms the keynote of his 1954 landmark "The Practice of Management".
A company's primary responsibility is to serve its customers. Profit is not the primary goal, but rather an essential condition for the company's continued existence.
Organisation should have a proper way of executing all its business processes
Quotes
A collection of quotations related to:
"In fact, that management has a need for advanced education - as well as for systematic manager development - means only that management today has become an institution of our society."[26]
"The best way to predict the future is to create it."
"Management is doing things right; leadership is doing the right things."
"What's measured improves."
“Company cultures are like country cultures. Never try to change one. Try, instead, to work with what you've got.”
“Efficiency is doing better what is already being done. “
“Follow effective action with quiet reflection. From the quiet reflection will come even more effective action.”
“People who don't take risks generally make about two big mistakes a year. People who do take risks generally make about two big mistakes a year.”
“The most important thing in communication is hearing what isn't said.”
“The purpose of business is to create and keep a customer.”
“There is nothing so useless as doing efficiently that which should not be done at all.”
“When a subject becomes totally obsolete we make it a required course.”
"Rank does not confer privilege or give power. It imposes responsibility."
List of publications
Friedrich Julius Stahl: konservative Staatslehre und geschichtliche Entwicklung (1932)