Peter Ferdinand Drucker (November 19, 1909–November 11, 2005) was a writer, management consultant, and self-described “social ecologist.”[1] Widely considered to be the father of “modern management,” his 39 books and countless scholarly and popular articles explored how humans are organized across all sectors of society—in business, government and the nonprofit world.[2] His writings have predicted many of the major developments of the late twentieth century, including privatization and decentralization; the rise of Japan to economic world power; the decisive importance of marketing; and the emergence of the information society with its necessity of lifelong learning.[3] In 1959, Drucker coined the term “knowledge worker" and later in his life considered knowledge work productivity to be the next frontier of management.[4] The son of a high level civil servant in Austria-Hungary – his mother Caroline Bondi had studied medicine and his father Adolph Bertram Drucker was a lawyer – Drucker was born in Vienna, the capital of Austria, in a small village named Kaasgraben (now part of the 19th district ofVienna, Döbling). He grew up in a home where intellectuals, high government officials and scientists would meet to discuss new ideas and ideals.[5] After graduating from Döbling Gymnasium, Drucker found few opportunities for employment in post-Habsburg Vienna, so he moved toHamburg, Germany, first working as an apprentice at an established cotton trading company, then as a journalist, writing for Der Österreichische Volkswirt (The Austrian Economist). Drucker then moved to Frankfurt, where he took a job at the Daily Frankfurter General-Anzeiger. While in Frankfurt, he also earned a doctorate in international law and public law from the University of Frankfurt in 1931. Among his early influences was the Austrian economist Joseph Schumpeter, a friend of his father’s, who impressed upon Drucker the importance ofinnovation and entrepreneurship.[6] Drucker also was influenced, in a much different way, by John Maynard Keynes, whom he heard lecture in 1934 in Cambridge. “I suddenly realized that Keynes and all the brilliant economic students in the room were interested in the behavior of commodities,” Drucker wrote, “while I was interested in the behavior of people.”[7] Indeed, over the next 70 years, Drucker’s writings would be marked by a clear focus on relationships among human beings, as opposed to the crunching of numbers. His books were filled with lessons on how organizations can bring out the best in people, and how workers can find a sense of community and dignity in a modern society organized around large institutions.[8] As a young writer, Drucker wrote two pieces — one on the conservative German philosopher Friedrich Julius Stahl and another called “The Jewish Question in Germany” — that were burned and banned by the Nazis.[9] In 1933, Drucker left Germany for England. In London, he worked for an insurance company then as the chief economist at a private bank. He also reconnected with Doris Schmitz, an acquaintance from the University of Frankfurt. They married in 1934. (His wedding certificate lists his name as Peter Georg Drucker.[10]) The couple permanently relocated to the United States, where he became a university professor as well as a freelance writer and business consultant. (Drucker disliked the term “guru,” though it was often applied to him; “I have been saying for many years,” Drucker once remarked, “that we are using the word ‘guru’ only because ‘charlatan’ is too long to fit into a headline.”)[11] In 1943, Drucker became a naturalized citizen of the United States. He taught at Bennington College from 1942-1949, then at New York University as a Professor of Management from 1950 to 1971. Drucker came to California in 1971, where he developed one of the country's first executive MBA program for working professionals at Claremont Graduate University (then known as Claremont Graduate School). From 1971 to his death he was the Clarke Professor of Social Science and Management at Claremont Graduate University. The university's management school was named the "Peter F. Drucker Graduate School of Management" (later known as the "Peter F. Drucker and Masatoshi Ito Graduate School of Management") in his honor in 1987. He taught his last class at the school in 2002 at age 92. His career as a business thinker took off in 1942, when his initial writings on politics and society won him access to the internal workings ofGeneral Motors (GM), one of the largest companies in the world at that time. His experiences in Europe had left him fascinated with the problem of authority. He shared his fascination with Donaldson Brown, the mastermind behind the administrative controls at GM. In 1943 Brown invited him in to conduct what might be called a "political audit": a two-year social-scientific analysis of the corporation. Drucker attended every board meeting, interviewed employees, and analyzed production and decision-making processes. The resulting book, Concept of the Corporation, popularized GM's multidivisional structure and led to numerous articles, consulting engagements, and additional books. GM, however, was hardly thrilled with the final product. Drucker had suggested that the auto giant might want to reexamine a host of long-standing policies on customer relations, dealer relations, employee relations and more. Inside the corporation, Drucker’s counsel was viewed as hypercritical. GM's revered chairman, Alfred Sloan, was so upset about the book that he “simply treated it as if it did not exist,” Drucker later recalled, “never mentioning it and never allowing it to be mentioned in his presence.”[12] Drucker taught that management is “a liberal art,” and he infused his management advice with interdisciplinary lessons from history, sociology, psychology, philosophy, culture and religion.[13] He also believed strongly that all institutions, including those in the private sector, have a responsibility to the whole of society. “The fact is,” Drucker wrote in his 1973 magnum opus, Management: Tasks, Responsibilities, Practices, “that in modern society there is no other leadership group but managers. If the managers of our major institutions, and especially of business, do not take responsibility for the common good, no one else can or will.”[14] Drucker was interested in the growing effect of people who worked with their minds rather than their hands. He was intrigued by employees who knew more about certain subjects than their bosses or colleagues and yet had to cooperate with others in a large organization. Rather than simply glorify the phenomenon as the epitome of human progress, Drucker analyzed it and explained how it challenged the common thinking about how organizations should be run. His approach worked well in the increasingly mature business world of the second half of the twentieth century. By that time, large corporations had developed the basic manufacturing efficiencies and managerial hierarchies of mass production. Executives thought they knew how to run companies, and Drucker took it upon himself to poke holes in their beliefs, lest organizations become stale. But he did so in a sympathetic way. He assumed that his readers were intelligent, rational, hardworking people of good will. If their organizations struggled, he believed it was usually because of outdated ideas, a narrow conception of problems, or internal misunderstandings. During his long consulting career, Drucker worked with many major corporations, including General Electric, Coca- Cola, Citicorp, IBM, and Intel. He consulted with notable business leaders such as GE’s Jack Welch; Procter & Gamble’s A.G. Lafley; Intel’s Andy Grove, Edward Jones’ John Bachmann; Shoichiro Toyoda, the honorary chairman of Toyota Motor Corp.; and Masatoshi Ito, the honorary chairman of the Ito-Yokado Group, the second largest retailing organization in the world.[15] But Drucker’s insights extended far beyond business. He served as a consultant for various government agencies in the United States, Canada and Japan. And, most notably, he worked with various non-profit organizations to help them become successful, often consulting pro-bono. Among the many social-sector groups he advised were the Salvation Army, the Girl Scouts of the USA, C.A.R.E., the American Red Cross, and the Navajo Indian Tribal Council.[16] In fact, Drucker anticipated the rise of the social sector in America, maintaining that it was through volunteering in nonprofits that people would find the kind of fulfillment that he originally thought would be provided through their place of work, but that had proven elusive in that arena. “Citizenship in and through the social sector is not a panacea for the ills of post-capitalist society and post-capitalist polity, but it may be a prerequisite for tackling these ills,” Drucker wrote. “It restores the civic responsibility that is the mark of citizenship, and the civic pride that is the mark of community.”[17] Drucker's books have been translated into more than thirty languages. Two are novels, one an autobiography. He is the co-author of a book onJapanese painting, and made eight series of educational films on management topics. He also penned a regular column in the Wall Street Journal for 20 years and contributed frequently to the Harvard Business Review, The Atlantic Monthly, and The Economist. He continued to act as a consultant to businesses and non-profit organizations well into his nineties. Drucker died November 11, 2005 in Claremont, California of natural causes at 95. He is survived by his wife Doris, four children, and six grandchildren. Several ideas run through most of Drucker's writings: Drucker was awarded the Presidential Medal of Freedom by U.S. President George W. Bush on July 9, 2002[1]. He also received honors from the governments of Japan and Austria. He was the Honorary Chairman of the Peter F. Drucker Foundation for Nonprofit Management, now the Leader to Leader Institute, from 1990 through 2002. In 1969 he was awarded New York University’s highest honor, the NYU Presidential Citation. Harvard Business Review honored Drucker in the spring of 2005 with his seventh McKinsey Award for his article, "What Makes an Effective Executive", the most awarded to one person.[25] Drucker was inducted into the Junior Achievement U.S. Business Hall of Fame in 1996. Additionally he holds 25 honorary doctorates from American, Belgian, Czech, English, Spanish and Swiss Universities. The Wall Street Journal researched several of his lectures in 1987 and reported that he was sometimes loose with the facts. Drucker was off the mark, for example, when he told an audience that English was the official language for all employees at Japan’s Mitsui trading company. (Drucker’s defense: “I use anecdotes to make a point, not to write history.”) And while he was known for his prescience, he wasn’t always correct in his forecasts. He anticipated, for instance, that the nation’s financial center would shift from New York to Washington.[26]. While this has not happened, the Global financial crisis of 2008–2009 and the involvement of the US government with the financial companies may prove him correct after all. Others maintain that one of Drucker’s core concepts—“management by objectives”—is flawed and has never really been proven to work effectively. Specifically, critics say that the system is difficult to implement, and that companies often wind up overemphasizing control, as opposed to fostering creativity, to meet their goals.[27] Although he helped many corporate executives succeed, he was appalled when the level of Fortune 500 CEO pay in America ballooned to hundreds of times that of the average worker. He argued in a 1984 essay that CEO compensation should be no more than 20 times what the rank and file make—especially at companies where thousands of employees are being laid off. “This is morally and socially unforgivable,” Drucker wrote, “and we will pay a heavy price for it.”[28]Peter Drucker
This article reads like an obituary. Wikipedia is not a memorial site and articles should have aneutral point of view. Please help edit it to help achieve a neutral point of view, or discuss changes on the talk page. (April 2009) Peter Ferdinand Drucker Born November 19, 1909
Kaasgraben, Vienna, AustriaDied November 11, 2005
Claremont, California, USAOccupation Writer, Professor, Management Consultant Contents
[hide][edit]Personal life and roots of his philosophy
[edit]Career
[edit]Author
[edit]Basic ideas
[edit]Awards and honors
[edit]Criticism and Controversy
[edit]List of publications
[edit]Books about Peter Drucker
[edit]Quotes
Wikiquote has a collection of quotations related to: Peter Drucker [edit]References
[edit]External links
Wikiquote has a collection of quotations related to: Peter Drucker
Saturday, 18 April 2009
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