What is Management by Peter Drucker?

According to Peter Drucker, management is a tool that allows an organization to achieve its goals. That is, its effectiveness is assessed by the ability and speed of achieving the result. To do this, it is necessary to identify several stages to achieve the goal, so that at a certain period of time, company leaders or other responsible persons can conclude how the policy applied in the company works.

Basic principles of effective management

Drucker identified several principles of modern management, which were as follows:

• It concerns only human beings and should enable them to interact with each other as efficiently as possible for the good of the enterprise or common cause.
• All employees should strive for a common goal that everyone understands. They are obliged to sincerely share the ideas and principles of the organization in order to work most efficiently and making efforts to change the current strategy to achieve the goal.
• The enterprise itself and each employee must have the opportunity to grow. For this, training programs are organized. It is perfect, when training takes place continuously.
• Individual responsibility and information exchange between employees allow the company to grow efficiently.
• The most important criterion for a successful management system is a satisfied customer.

Essential! The volume of production and economic performance of the company cannot reflect the effectiveness of management by the Drucker. Therefore, it is important to establish feedback with the consumer in order to improve the work of the enterprise. You can use various methods for this. The easiest is to conduct a survey. No need to close yourself off from the consumer. The more open is the company, the higher is the level of trust in it.

Management objectives

Peter Drucker identified three main tasks:

• correctly formulate the goal and mission of the organization, regardless of its specificity;
• to achieve high efficiency of the company as a whole and each employee individually;
• regulate the social responsibility of the company.

That is, each employee is his own manager and boss at the same time. He must be fully aware of what he is doing and why. For this, training is constantly conducted. At the same time, tasks can constantly change, depending on the state of the organization.

It is worth considering the importance of all three tasks in more detail.

Statement of purpose and mission

This is an important and difficult stage, but the effectiveness of the company depends on it. The objectives of the organization should flow from what they represent at a particular time. They should be practical and can change over time.

Essential! There must always be strategic and tactical objectives. The first ones determine the general line of development of the enterprise over the next few years. The second ones allow solving current problems. For example, increasing sales, developing new markets, and so on.

An incorrectly set goal will not allow you to become effective, as another tools will be used. For example, the University in France with the goal to enter the Moscow market cannot be successful. Its main goal should be to provide quality education. The higher its value, the more students will apply. Then the task of opening new branches will not be long in coming.

Improving company and employee performance

This is only possible if everyone will feel personally interested. For example, it is possible to provide each employee with a specific quantity of company shares. Then they will understand that the value of the security will depend on the effectiveness of their work.

But not all organizations can use this method. Therefore, it is important to constantly train specialists and promote the culture and values of the company during the seminars.

Thus, personal responsibility and full commitment during work allow the company to grow rapidly. However, one cannot hold a good employee in one position for a long time. He must constantly develop and grow. Then he will show others by his example how to work in order to become successful at work and in life.

Social responsibility

In this case, the company should not deal with society as a tool for profit. The consumer is a person. He has his own desires and preferences. Thus, it is required to create a positive image of the company through advertising, the release of quality products and the organizing of customer feedback.

What is the personal effectiveness of an entrepreneur?

In one of his books, Peter Drucker says that it depends on the entrepreneur how effective his brainchild will be. That is, he himself must build an effective management system. His goal is to find staff who will be truly interested in the work and development of the organization. There are various ways to motivate people:

• find those who share the ideas of a businessman (there are few of them, but they are the most valuable);
• provide career opportunities;
• pay salaries, which will depend on the employee’s performance.

It is important to constantly improve yourself and your subordinates. You need to grow the leaders who will make their own decisions without looking at the instructions. Moreover, decisions should not go against the principles of the company.

Thus, effective management at the enterprise does not depend on the company's profit for the reporting period, but on the ability to work in a team. That is why the world's leading organizations today pay more attention to the corporate spirit, business ethics and interaction between departments. Entire institutions are also being created that allow you to track the opinion of consumers on a particular product.

Some experts believe that the management by Peter Drucker can allow you to build a successful company, regardless of the purpose of its creation. These may be non-profit associations, the University, a manufacturing enterprise, or retailers. The speed of task fulfillment and the success of the company in the market in general will depend on the personal responsibility of each employee and his level of loyalty to the company.

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