Highlight the major contributions of Peter Drucker.

 Major contributions of Peter Drucker:

Some of the major contributions of Peter Drucker are as follows:

i) Nature of Management: Drucker was against “bureaucratic management’ and visualised Management with creative and innovative characteristics. The basic objective of Management is to lead towards innovation, The concept of innovation in his view is quite broad, which includes development of new ideas, combining of old and new ideas, adaptation of ideas from other fields and as a catalyst in encouraging others to carry out innovation. Drucker is generally placed in ‘empirical school of management’. He treated Management as a discipline as well as a profession. As a discipline,

Management has its own tools, skills, techniques and approaches. However, Management is more a practice rather than a science..

ii) Management Functions: According to Drucker, Management is the organ of its institution. It has no functions in itself, and 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 contribution towards:

i. The specific purpose and mission of the institution whether business, hospital or university.

ii. Making work-preduetive and the worker achievement-oriented.

iii. Mar aging social impacts and social responsibilities.

iii) Restructuring Government: Drucker was against the bureaucratic structure because of its too many mdys functional effects. Therefore, he wanted that it should be replaced. He thus emphasised three basic characteristics ofan effective organisation structure and these are:

i. Enterprise should be organised for performance.

ii. It should contain the least possible number of managerial levels; and

iii. It must make possible the training and testing of tomorrow's top manager- responsibility to a manager while still he is young.

iv) Federalis: Drucker advocated the concept of Federalism. It refers to centralised control | decentralised structure and decentralised structure goes far beyond the delegation of authority, It creates a newn Constitution and new ordering principle. Drucker emphasized the close links between the decisions adopted by the top management on the one hand and by the autonomous unit on the other. Ina federal organisation, local management should participate in the decision that set the limits of their own authority. Federalism has certain positive values over other methods of organising. These are as follows:

i. It sets the top management free to devote itself to its proper functions.

ii. It defines the functions and responsibilities of the operating people.

lilt creates a yard stick to measure their success in operating jobs.

v) Management by Objective: Management by Objectives is regarded as one of the important contributions of Drucker to the discipline of management. He introduced this concept in 1954. Management by Objectives has further been modified by Edward C. Schleh, which has becn termed as ‘Management by Results’. Management by Objectives includes methods of planning, setting standards, performance appraisal. and motivation. The organisational objectives must meet four criteria:

i. Theymust be hierarchically put from most important to least important.

ii. Quantification of objectives.

iii. Specific goals.

iv. Consistentgoals.

vi) Organisational Changes: 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 organisations, which are able to absorb changes much faster than static ones. Drucker’s contributions have made tremendous impact on the management practices. “Drucker shows certain farsightedness and understanding of the development prospects of modern production when he opposes the view that worker is no more than an appendage of machine. -

vii) Rethinking and Abandonment: Drucker rejects the concept of downsizing organisations, which could prove fatal in the long run. So he proposes rethinking, which relates to identifying activities that are productive amd-meed-to be strengthened, promoted and expanded. He also suggests that that there is a need to rethink on the organisational set-up based on activities and suggestions.

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