Drucker's Management Theory

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Peter Drucker, a well-known pioneer in management field and his teachings have contributed to the modern organization. He was known as the father of modern management as he was able to predict the future direction for the modern corporation. According to the article “The Man who Invented Management”, it stated that Drucker influences most of the leaders from different corporations in different business sectors (Business Week, 2005). The objectives of this paper is to study the Drucker’s teachings and have a better understanding on how its relevance to the modern organization.

Peter Drucker’s Teachings
Drucker’s teachings are valuable to modern organization. There are a numbers of teachings including knowledge worker, management by objective and so on. In this paper, three theories are picked to discuss.
Decentralization
Drucker mentioned that decentralization was benefited to the corporation because it assigns the authorities to the lower management department where they would felt that their contribution is important (BBC Learning, n.d.). Intentionally, this helps to increase the engagement of employees. Decentralization is good because more people provide input into decisions and employees are more likely to involve themselves (Robbins and Judge, 2013).
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To enable their employees to balance their work-life, P&G offers an option to work fewer days or fewer hours; offers loans to employees without collecting any interest; offers employee-assistance program for counseling purpose (Emerald, 2011). P&G also introduced profit-sharing program to their employees because they believed that this action allows their company and employees bound closely together as the employees became stockholders (Procter & Gamble, 2014). In 2012, P&G was ranked as #2 in the category of ‘World’s Most Admired Companies’ by Fortune Magazine due to its quality management (Procter & Gamble…show more content…
Take Toyota Company as example, Toyota recalls back all the problem vehicles and its centralized decision making had caused the loss of $2.2 billion. Decentralization management is a good way to build strong leadership.
Every business should understand the concept of “innovates or die”. In this strong competition era, if we are not going to innovate, our business would not survive. As my suggestion, modern organization nowadays should invest more on innovation in order to safeguard the future of their business.
Moreover, I strongly agreed with the teachings of Drucker. Employees are part of the companies. Workers are human with feeling, not a working machine. If company want their employees serve customers with quality, then the company should be the role model first and act ethically as well as treat their employees like how they want their employees to treat the customers.
In conclusion, Drucker’s teachings are valuable for the modern organization nowadays. He is a highly respected and influential thinker in business management field. His contribution deserves to be
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