8/4/2019 Contribution of Mbo

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Thursday, January 13, 2011Contribution by Peter F. Drucker MBOContribution by Peter F. Drucker MBO : Drucker is highly respected mgmt thinker. He is a prolific writer & haspublished several books & articles on the mgmt practices. His views on mgmt may be summarised asfollows: 1.Nature of mgmt: peter Drucker is against bureaucratic mgmt & has emphasised mgmt with creative &innovative characteristics. The basic objective of mgmt is to lead towards innovation. The concept of innovation isquite broad. It may include development of new ideas, combining of old & new ideas, adaptation of ideas from other

fields or even to act as a catalyst & encouraging other to carry out innovation. He has treated mgmt as a discipline aswell as a profession. 2.Mgmt functions: Peter Drucker opined that the, mgmt is the organ of its institution. It has nofunctions in itself, & no existence in itself. He sees mgmt through its tasks. Accordingly, there are three basicfunctions of a manager which he must perform to enable the institution to make its contributions for a) the specificpurpose & mission of the institution, whether business, hospital or university. 3.Organization Structure: Peter Drucker has described bureaucratic structure because of its to many dysfunctional effect. Hence, it should bereplaced. He has emphasised three basic features of an effective organisation structure. These are a) enterpriseshould be organized for performance b) it should contain the least possible number of managerial level and c) it mustmake possible the training & testing of tomorrows top mangers giving responsibility to a manager while still he isyoung. 4. Federalism: the concept of federalism has been advocate by Peter Drucker. Federalism refers tocentralised control in decentralised structure. De centralised structure goes far beyond the delegation of authority. Itcreates a new constitution, & new ordering principle. 5.Mgmt by Objective: P.Drucker most important contributions tothe discipline of mgmt is mgmt by objective (MBO). He introduce this concept in a 1952. MBO has further betweenmodified by schleh which has been termed as mgmt by results. MBO includes method of planning setting standardsperformance appraisals, & motivation. According to Drucker, MBO is not only a technique of mgmt but it is philosophyof managing. 6.Organisational Changes: P Drucker has visualizes rapid changes in the society because of rapidtechnological development. Though he is not resident to change, he feels concerned for the rapid changes & their impact on human life. Normally, some changes can be absorbed by the organisation but not the rapid changes. Sincerapid changes are occurring in the society, human beings should develop philosophy to face the changes & takethem as challenges of making the society better