Contribution of Peter f. Drucker
Among the contemporary management thinkers, peters F. Drucker was legend in the field of management. He has made may outstanding contributions to the development of management principles. Following are some of his views on management.
- Nature of Management : According to Durcker the basic objective of management is to lead towards innovation. He advocates that management is creative and innovative in nature rather than bureaucratic. Because managers practice their activities in an ever changing environment, they always deal with the human beings whose behaviour is complex and unpredictable. He was warned that too much professionalisation of management is dangerous. He has also emphasized that managers should not only have skills and techniques but should have right perspective putting the things into practice.
- Management By Objectives : ( MBO) Mangement By Objectives is regarded as one of the most important contributions of Drucker to the discipline of management. He introduced this concept in 1954. It is regarded to be his remarkable contribution to the management thought. It consists of environmental scanning, identification of key result areas, setting objectives for departments as well as to subrondinates, motivation and performance appraisal. He opines that MBO is a management Philosophy rather than a management technique.
- Management Functions : According to Drucker, management is the organ of its institution. He sees management through its tasks. Drucker has attached great importance to the objective setting function and has specified eight areas where clear objective setting is remained. These are market standing, innovation, productivity, physical and financial resources, profitability,managerial performance and development, worker performance and attitude and public responsibility.
- Organisation Structure : Drucker always advocates for the parallel growth of second line managers because whenever the existing managers vacate their offices, organizations should not suffer form the non- availability of experienced managers, if there is gap, it is determental to the performance of the organization.
- Organisation Changes : Futher Drucker has forecasted that organizations facemany changes because of rapid social and technological changes. Hence dynamic organization structures are essential than static and bureaucratic structures.
- Federalism : Federalism means centralization of control and decision making in decentralized structure. Drucker has felt the need for close links between the decisions adopted by the topmanagement on the one hand and by autonomous unit on the other hand.
- Activity Analysis, Decision Analysis and Relation Analysis : In the words of Drucker, organization is a means to the end of business performance and business results. The first question that every manager must ask himself is what is our business and what it should be? Then the organization should be designed to attain the objectives of the business.
The contributions of Drucker, especially his futurism, objective – orientedness and perception of changes stood as hall – marks in the management evolution.