CONTRIBUTION OF PETER DUCKER , Management By Objective

 

CONTRIBUTION OF PETER DUCKER

Peter ducker outlines all. He has varied experience and background which includes psychologist, sociology, law and journalism. Therefore his contribution covers various approaches of mgt. His contribution are termed as “empirical school of mgt”.

MAIN TOPIC OF PETER DUCKER:-

1.    NATURE OF MGT

 He is against bureaucratic mgt and has emphasized mgt with creative & innovative characteristics.  According to ducker “mgt is more practice rather than a science and mgt is a distinct discipline as well as profession.

2.    MANAGEMENT FUNCTION  

According to Ducker a manager must performed the function to enable the organisation to make its contribution for –

1)      Achieving the specific purpose and mission of the organisation.

2)      Making work productive and the worker achieving.

3)      Managing social impact and social responsibility.

 

3.    ORGANISATION STRUCTURE

As per Ducker, bureaucratic structure should be replaced by an effective organisation structure having three main features –

·         Enterprise should be organised for performance.

·         It should contain the least possible no. Of managerial level.

·         It must make possible the training & testing of tomorrow top managers.

He has identified 3 basic aspects in organization:

       I.            Activity analysis

    II.            Decision analysis

 III.            Relation analysis

 

4.    Federalism-

Drucker has advocated the concept of Federalism which refers to Centralized Control in Decentralized Structure. He has emphasized the close links between the decisions adopted by the top management on the one hand by the autonomous units on the other.

 

 

 

5.    Management By Objective-

Management by objective (MBO) is regarded as one of the most important contribution of Drucker to the discipline of Management.

MBO includes:

                               I.            Method of Planning

                            II.            Setting standards

                         III.            Performance appraisal

                         IV.            Motivation

MBO is not only a technique of management but it is a philosophy of managing. It transforms the basic assumptions of managing from exercising control to self-control.

6.    Organizational change-

He has visualized rapid changes in the society because of rapid technological development. In order to overcome the –ve consequences of rapid changes, human being should develop philosophy to face the changes and take them as challenges for making the society better by developing dynamic organizations which are able to absorb changes much faster than static ones.