LECTURE #6: PETER DRUCKER'S MANAGEMENT THEORY

• Peter Drucker

  • Father of modern management.
  • Believed that managers should be leaders.
• Nature of Management

  • The basic objective of management is to read towards innovation which may include:
  • Development of new ideas
  • Combining od old and new ideas
  • Adaptation of ideas from other fields or even to act as a catalyst and encouraging others to carry out innovation.
• Decentralization

  • managers should empower employees by delegating tasks.
• Management by Objective (MBO)

  • involves superiors and their subordinates working together to set common goals, identify employees’ areas of expertise and define measurable expected results.
• SMART method

  • goals need to be specific, measurable, achievable, relevant, time-specific, and recorded. 
• Corporate and social responsibility

  • type of business self-regulation to be socially accountable and contribute to the well-being of communities and society as a whole.
• Applying the Drucker theory of management

  • Delegate power equitability
  • Encourage collaboration
  • Increase efficiency 
  • Boost innovation