Archives For Peter Drucker

Human Factor in Management – Management is about human beings.

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Role of the Bystander – … the bystander sees things neither actor nor audience notices.

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The leaders who work most effectively, it seems to me, never say “I.” And that’s not because they have trained themselves not to say “I.” They don’t think “I.” They think “we”; they think “team.” They understand their job to be to make the team function. They accept responsibility and don’t sidestep it, but “we” gets the credit … This is what creates trust, what enable you to get the task done.

~ Peter F. Drucker

The educated person needs to bring knowledge to bear on the present, not to mention molding the future.

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The Management Revolution – What matters is the productivity of nonmanual workers.

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Crossing the DivideCrossing the divide into the new realities.

Every few hundred years there occurs a sharp transformation. We cross a “divide.” Within a few short decades, society rearranges itself—its worldview, its basic values, there is a new world. The people born after this transformation cannot imagine the world in which their grandparents lived and into which their own parents were born.

But today’s fundamental changes, these new realities visible thirty years ago, are actually only beginning and just about to have their full impacts. They underlie the worldview restructuring of businesses, large and small—mergers, divestitures, alliances. They underlie the worldview restructuring of the workforce—which, while, largely an accomplished fact in the U.S., is still in its early stages in Japan and Europe. And they underlie the need for fundamental innovation in education and especially in higher education. These realities are different from the issues on which politicians, economists, scholars, businessmen, and union leaders still fix their attention, still write books, still make speeches.

ACTION POINT:       Next time you hear colleagues pounding the table for something that is clearly yesterday’s news, find a way to tell them they need to wake up and smell the coffee.

~ Peter F. Drucker, The Daily Drucker

Performance: The Test of Management.

Achievement rather than knowledge remains both the proof and aim of management.

The ultimate test of management is performance. Management, in other words, is a practice, rather than a science or profession, although containing elements of both. No greater damage could be done to our economy or to our society than to attempt to professionalize management by licensing managers, for instance, or by limiting access to management positions to people with a special academic degree. On the contrary, the test of good management is whether it enables the successful performer to do her work. And any serious attempt to make management “scientific” or a “profession” is bound to lead to the attempt to eliminate those “disturbing nuisances,” the unpredictabilities of business life—its risk, its ups and downs, its “wasteful competition,” the “irrational choices” of the consumer—and in the process, the economy’s freedom and its ability to grow.

~ Peter Drucker, The Practice of Management.


The Discipline of Management

If you can’t replicate something because you don’t understand it, then it really hasn’t been invented; it’s only been done.

When I published The Practice of Management, Fifty years ago, that book made it possible for people to learn how to manage, something that up until then only a few geniuses seemed to be able to do, and nobody could replicate it.

When I came into management, a lot of it had come out of the field of engineering. And a lot of it had come out of accounting. And some of it came out of psychology. And some more came out of labor relations. Each of those fields was considered separate, and each of them, by itself, was ineffectual. You can’t do carpentry, you know, if you only have a saw, or only a hammer, or if you have never heard of a pair of pliers. It’s when you put all of those tools into one kit that you invent it. That’s what I did in large part in The Practice of Management. I made a discipline of it.

~ Peter Drucker, The Practice of Management.

Nature of Man and Society. 

Every organized society is built upon a concept of the nature of man and of his function and place in society. 

Whatever its truth as a picture of human nature, this concept always gives a true picture of the nature of the society, which recognizes and identifies itself with it. It symbolizes the fundamental tenets and beliefs of society by showing the sphere of human activity, which it regards as socially decisive and supreme. The concept of man as “economic animal” is the true symbol of societies of bourgeois capitalism and of Marxist socialism, which see in the free exercise of man’s economic activity the means toward the realization of their aims. Economic satisfaction alone appear socially important and relevant. Economic positions, economic privileges, and economic rights are those for which man works.

~ Peter Drucker, The End of The Economic Man

The Purpose of Society. 

Society is only meaningful it its purpose and ideals make sense in terms of the individual’s purposes and ideals. 

For the individual there is no society unless he has social status and function. There must be a definite functional relationship between individual life and group life. For the individual without function and status, society is irrational, incalculable, and shapeless. The “rootless” individual, the outcast—for absence of social function and status casts a man from the society of his fellows—sees no society. He sees only demonic forces, half sensible, half meaningless, half in light and half in darkness, but never predictable. They decide about his life and his livelihood without the possibility of interference on his part, indeed without the possibility of interference on his part, indeed the possibility of his understanding them. He is like a blindfolded man in a strange room playing a game of which he does not know the rules.

~ Peter Drucker, The Future of Industrial Man