CONTRIBUTION IN

MANAGEMENT

BY:PETER F.DRUKER
 Presented by--
SOURAV AGRAWAL
TANISHA MOHANTY
UTKAL KESHARI DAS

SWAYAM DIKSHIT

SUSHIL SAMANTRAY

SUBHASHREE PRUSTY

SUBHAM SAHOO

SOUBHAGYA RANJAN MISHRA

SONALI NAYAK

SMRUTI SAMIKHYA SAHOO

PERSONAL LIFE:

❑ Peter Ferdinand Drucker was an Austrian-

born American management consultant,
educator, and author, whose writings
contributed to the philosophical and
practical foundations of the modern
business corporation
❑ He was also a leader in the development of
management education, he invented the
concept known as management by
objectives and self-control. He has been
described as "the founder of modern
management”
 CONTRIBUTIONS:
➢ Drucker introduced the idea of decentralization-1940
➢ He was the first to assert that workers should be treated
as an assets not as liabilities to be eliminated.He
originated the view of corporation as a human
community 1950
➢ He argued for the importance of substance over style
for institutionalized practices over charismatic ,cult leader
-1960
➢ He wrote about the contribution of knowledge workers -
1970
➢ Druckers’s work at General Electric-1980
 Some more Insights

Drucker and MBO

A manager’s primary task is to manage for the

results by translating corporate objectives into
departmental, group and individual measures of
performance.
Management by Objective(MBO)
Company
vision
Mission
statement

Strategic objective

Hierarchy of goals
 DRUCKER AND MARKETING:

• His most famous book is the “ THE PRACTICE OF

MANAGEMENT” published in 1954.
• Three question that every company seeking to establish a
brand must ask itself:
• “What is our business?”
• “Who is our customers?”
• “What does our customer consider valueable?”
Three Roles of management:-
• Managing a business
• Managing managers
• Managing workers and work
 Managing a business:-
❑Purpose of Business
➢ To create customers

❑Functions of Business
➢ MARKETING
➢ INNOVATION

❖Profit is result, not a cause,of business

activity
 BUSINESS PERFORMANCE OBJECTIVE:-

o Market Share
o Innovation
o Productivity
o Physical And Financial Resources
o Profitability
o Manager Performance And Development
o Worker Performance And Attitude
o Public Responsibility
 THE WORK OF THE MANAGER:
• Set objectives
• Organize
• Motivate and communicate
• Measurement
• Develop people
5 steps in making
decisions:
• Define the problem
• Analyze the problem
• Develop alternative solutions
• Find the best solution
• Implement the decision
 Managing workers and work:-

❑Personnel management
❑Organizing for peak performance
❑Motivating for peak performance
❑Supervisor/foreman
❑Professional employee
ROLES OF
MANAGEMENT:-
Management as a Practice:-
• According to Drucker management there are two important functions:-
• INNOVATION
• MARKETING
• He has treated management as a discipline as well as profession, according
to him, management is more a practice. It is goal orientated.
• If understand and in the right way helps any organization to achieve
success.
 Function of management
• Drucker points out three basic functions of
Management which are as follows:-
• The achievement of purpose and mission of the
institution.
• Make the work productive and the worker achieving.
• Effective management of social responsibility.
 Objective Setting:-
• Drucker has attached great important to objective setting. He has specified
the objectives should be set for all the key result areas of business.
• To make the objective setting and their achievement more meaningful, he
has given a new tool, which is known as “Management by
Objectives(MBO)”.
• MBO is regarded as one of his most important contribution to the discipline
management. He has discussed the concept in great details in his book
which name is “The Practice of Management”.
• MBO is the process whereby superior and subordinates jointly identify the
common objective, set the results that should be achieved by subordinates
and the access the contribution of each individuals.
 Orientation towards future:-

• Drucker visualized the concept of modern

organization and its impact on the society several
years ago.
• His views on the many facets of the modern
corporations have almost all become reality now.
• To put it in his own words, he described the
present age as the “age of discontinuity”.
 Federalism:-
• Drucker has advocated the concept of federalism. Federalism according to
him, involves centralized control in a decentralized structure.
• Federalism has certain positive values over other methods of organizing which
are as follows:-
• It sets the top management free to devote itself to major policy formulation
and strategy development.
• It defines the functions and responsibilities of the operating people.
• It creates yardsticks to measure twin success and effectiveness in operating
jobs.
• It helps to resolve the problem of continuity through giving educational to the
managers of various units while in an operating positions.