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Frederick Winslow Taylor (March 20, 1856 March 21, 1915) was anAmerican mechanical

engineerwho sought to improveindustrialefficiency.[1]He is regarded as the father ofscientific managementand was one of the firstmanagement consultants.[2]Taylor was one of theintellectual leaders of theEfficiency Movement and his ideas, broadly conceived, were highlyinfluential in theProgressive Era.

biogragraphy

Taylor was born in 1856 to a wealthyQuakerfamily inGermantown, Philadelphia, Pennsylva.

Taylor's father, Franklin Taylor, aPrinceton-educated lawyer, built his wealth onmortgages.[3] Taylor's mother, Emily Annette Taylor (neWinslow), was an ardentabolitionistand acoworker withLucretia Mott. His father'sancestor, Samuel Taylor, settled inBurlington,New Jersey, in 1677. His mother's ancestor,Edward Winslow, was 1 of the 15 originalMayflower Pilgrims that brought servants orchildren, and 1 of 8 that had the honorable

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distinction of Mister. Winslow served for man years as the Governor of the Plymouth colony

Educated early by his mother, Taylor studied two years in France and Germany and traveleEurope for 18 months.[4]In 1872, he enteredPhillips Exeter AcademyinExeter, NewHampshire, with the plan of eventually going to

Harvard and becoming a lawyer like his fathe1874, Taylor passed the Harvard entranceexaminations with honors. However, allegedlto rapidly deteriorating eyesight, Taylor chosquite a different path.

Instead of attending Harvard, Taylor became apprenticepatternmakerand machinist, gainingshop-floor experience at Enterprise HydraulicWorks in Philadelphia (a pump-manufacturincompany whose proprietors were friends of thTaylor family). He left his apprenticeship for months, and represented a group of New Engmachine tool manufacturers at Philadelphia'scentennial exposition. Taylor finished his 4 yapprenticeship, and then in 1878 he became a

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men and the machines (although the word"productivity" was not used at the time, and t

applied science of productivity had not yet bedeveloped). His focus on the human componeproduction eventually became ScientificManagement, while the focus on the machinecomponent led to his famous metalcutting andmaterials innovations.While Taylor worked at Midvale, he andClarenceClarkwon the first tennis doubles tournament the 1881 US National Championships,theprecursor of theUS Open.[1]Taylor became astudent ofStevens Institute of Technology,studying via correspondence[5]and obtaining adegree in mechanical engineering in 1883. On3, 1884, he married Louise M. Spooner ofPhiladelphia.From 1890 until 1893 Taylor worked as a genmanager and a consulting engineer to managefor the Manufacturing Investment Company oPhiladelphia, a company that operated large pmills in Maine and Wisconsin. He spent time

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plant manager in Maine. In 1893, Taylor openindependent consulting practice in Philadelph

His business card read "Consulting Engineer Systematizing Shop Management andManufacturing Costs a Specialty". Through thconsulting experiences, Taylor perfected hismanagement system. In 1898, Taylor joinedBethlehem Steelin order to solve an expensivemachine shop capacity problem. As a result, hand Maunsel White, with a team of assistantsdevelopedhigh speed steel, which paved the wayfor greatly increased mass production. Taylorforced to leave Bethlehem Steel in 1901 after

antagonisms with other managers.After leaving Bethlehem Steel, Taylor focusethe rest of his career on publicly promoting hmanagement and machining methods throughlecturing, writing, and consulting. In 1910, du

the Eastern Rate Case, Frederick Winslow Taand his Scientific Management methodologiebecome famous worldwide.In 1911, Taylorintroduces The Principles of Scientific

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Management paper to the American mechaniengineering society (8 years after his Shop

Management paper).On October 19, 1906, Taylor was awarded anhonorary degree ofDoctor of Scienceby theUniversity of Pennsylvania.[6] Taylor eventuallybecame a professor at theTuck School of

Businessat Dartmouth College.[7]

Late winter of1915 Taylor caught pneumonia and one day ahis fifty-ninth birthday, on March 21, 1915 hedied. He was buried inWest Laurel Hill Cemetery,inBala Cynwyd, Pennsylvania.

WorkTaylor was a mechanical engineer who soughimproveindustrial efficiency.Taylor is regardedas the father ofscientific management,and wasone of the firstmanagement consultantsand

director of a famous firm. InPeter Drucker'sdescription,Frederick W. Taylor was the first man inrecorded history who deemed work deserving

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systematic observation and study. On Taylor's'scientific management' rests, above all, the

tremendous surge of affluence in the lastseventy-five years which has lifted the workinmasses in the developed countries well abovelevel recorded before, even for the well-to-doTaylor, though the Isaac Newton (or perhaps Archimedes) of the science of work, laid onlyfirst foundations, however. Not much has beeadded to them since even though he has beendead all of sixty years.[8] FutureUS Supreme CourtjusticeLouis Brandeis coined the termscientific management in thecourse of his argument for theEastern Rate Case before theInterstate Commerce Commissionin1910. Brandeis debated that railroads, whengoverned according to the principles of Taylodid not need to raise rates to increase wages.

Taylor used Brandeis's term in the title of hismonographThe Principles of Scientific Management , published in 1911.The Eastern RateCase propelled Taylor's ideas to the forefront

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the management agenda. Taylor wrote to Bra"I have rarely seen a new movement started w

such great momentum as you have given this Taylor's approach is also often referred to asTaylor's Principles , or frequently disparagingly, Taylorism . Taylor's scientific managementconsisted of four principles:

1. Replace rule-of-thumb work methods withmethods based on a scientific study of thetasks.

2. Scientifically select, train, and develop eachemployee rather than passively leaving themtrain themselves.

3. Provide "Detailed instruction and supervisioeach worker in the performance of thatworker's discrete task" (Montgomery 1997:250).

4. Divide work nearly equally between manag

and workers, so that the managers applyscientific management principles to planninwork and the workers actually perform thetasks.

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Managers and workers

Taylor had very precise ideas about how tointroduce his system:It is only throughenforced standardization ofmethods,enforced adoption of the bestimplements and working conditions, andenforced cooperation that this faster work can be assurAnd the duty of enforcing the adoption ofstandards and enforcing this cooperation restswithmanagement alone.[9] Workers were supposed to be incapable ofunderstanding what they were doing. AccordiTaylor this was true even for rather simple tas'I can say, without the slightest hesitation,'Taylor told a congressional committee, 'that tscience of handling pig-ironis so great that theman who is ... physically able to handle pig-irand is sufficiently phlegmatic and stupid tochoose this for his occupation is rarely able tocomprehend the science of handling pig-iron.[10]

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Taylor believed in transferring control fromworkers to management. He set out to increas

the distinction between mental (planning worand manual labor (executing work). Detailed specifying the job, and how it was to be donewere to be formulated by management andcommunicated to the workers.[11]

The introduction of his system was oftenresented by workers and provoked numerousstrikes. The strike atWatertown Arsenal led tothe congressional investigation in 1912. Taylobelieved the laborer was worthy of his hire, apay was linked to productivity. His workers wable to earn substantially more than those undconventional management,[12]and this earned himenemies among the owners of factories wherescientific management was not in use.Propaganda techniques

Taylor promised to reconcile labor and capitaWith the triumph of scientific management,unions would have nothing left to do, and the

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would have been cleansed of their most evilfeature: the restriction of output. To undersco

this idea, Taylor fashioned the myth that 'therhas never been a strike of men working underscientific management', trying to give itcredibility by constant repetition. In similarfashion he incessantly linked his proposals toshorter hours of work, without bothering toproduce evidence of "Taylorized" firms thatreduced working hours, and he revised his famtale of Schmidt carrying pig iron at BethlehemSteel at least three times, obscuring someaspects of his study and stressing others, so th

each successive version made Schmidt'sexertions more impressive, more voluntary anmore rewarding to him than the last. Unlike[Harrington] Emerson, Taylor was not a charlbut his ideological message required thesuppression of all evidence of worker's dissenof coercion, or of any human motives oraspirations other than those his vision ofprogress could encompass.[13]

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Management theory

Taylor thought that by analyzing work, the "OBest Way" to do it would be found. He is mosremembered for developing the stopwatch timstudy, which combined with Frank Gilbreth'smotion study methods later becomes the fieldtime and motion study. He would break a job into

its component parts and measure each to thehundredth of a minute. One of his most famostudies involved shovels. He noticed that worused the same shovel for all materials. Hedetermined that the most effective load was 2lb, and found or designed shovels that for eacmaterial would scoop up that amount. He wasgenerally unsuccessful in getting his conceptsapplied and was dismissed fromBethlehem Steel. Nevertheless, Taylor was able to convinceworkers who used shovels and whose

compensation was tied to how much theyproduced to adopt his advice about the optimuway to shovel by breaking the movements dointo their component elements and recommen

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better ways to perform these movements. It wlargely through the efforts of his disciples (m

notablyH.L. Gantt) that industry came toimplement his ideas. Moreover, the book he wafter parting company withBethlehem Steel, Shop Management , sold well.Relations with ASME

Taylor's own written works were designed forpresentation to theAmerican Society ofMechanical Engineers(ASME). These includeNotes on Belting (1894), A Piece-Rate System(1895), Shop Management (1903), Art of Cut

Metals (1906), and The Principles of ScientifManagement (1911).Taylor waspresidentof the ASME from 1906 to1907. While president, he tried to implement system into the management of the ASME bu

was met with much resistance. He was only ato reorganize the publications department andthen only partially. He also forced out theASME's long-time secretary,Morris L. Cooke, and

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replaced him with Calvin W. Rice. His tenure aspresident was trouble-ridden and marked the

beginning of a period of internal dissension wthe ASME during the Progressive Age.[14] In 1911, Taylor collected a number of his artiinto a book-length manuscript which he submto the ASME for publication. The ASME form

an ad hoc committee to review the text. Thecommittee included Taylor allies such as JamesMapes DodgeandHenry R. Towne. The committeedelegated the report to the editor of theAmerican Machinist , Leon P. Alford. Alford was acritic of the Taylor system and the report wasnegative. The committee modified the reportslightly, but accepted Alford's recommendationot to publish Taylor's book. Taylor angrilywithdrew the book and publishedPrinciples without ASME approval.[15]Taylor published the

trade book himself in 1912.

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Henri Fayol (Istanbul, 29 July 1841Paris, 19November 1925) was aFrench mining engineer

anddirector of mines who developed a generatheory ofbusiness administration.[1]He and hiscolleagues developed this theory independentscientific managementbut roughlycontemporaneously. He wasone of the mostinfluential contributors to modern concepts omanagement.

Biography

Fayol was born in 1841 in a suburb of Istanbul,Ottoman Empire, where his father, an engineer,was appointed superintendent of works to buibridge over the Golden Horn[1](Galata Bridge).They returned to France in 1847, where Fayostudied at the mining school "cole NationaleSuprieure des Mines" inSaint-tienne.When 19 years old he started as an engineer amining company "Compagnie de Commentry

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Fourchambeau-Decazeville" inCommentry. By1900 the company was one of the largest

producers of iron and steel in France and wasregarded as a vital industry.[1]Fayol becamemanaging director in 1888, when the minecompany employed over 1,000 people, and hthat position over 30 years until 1918.

In 1916 he published his experience in the bo"Administration Industrielle et Gnrale", atabout the same time as Frederick Winslow Taylo published hisPrinciples of Scientific Management Theory

Fayolism

Fayol's work was one of the first comprehensivestatements of a general theory of managemen.[2] He proposed that there were five primaryfunctions of management and 14 principles omanagement[3] Functions of management

1. to forecast and plan

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2. to organize3. to command

4. to coordinate5. to control (French: contrler : in the sensethat a manager must receive feedback aboa process in order to make necessaryadjustments).

Principles of Management 1. Division of work . This principle is the same aAdam Smith's 'division of labour'.Specialisation increases output by makingemployees more efficient.

2. Authority . Managers must be able to giveorders. Authority gives them this right. Nothat responsibility arises wherever authoriis exercised.

3. Discipline . Employees must obey and respecthe rules that govern the organization. Goodiscipline is the result of effectiveleadership, a clear understanding betweenmanagement and workers regarding the

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organization's rules, and the judicious use penalties for infractions of the rules.

4. Unity of command . Every employee shouldreceive orders from only one superior. likefrom top to bottom in an organization.

5. Unity of direction . Each group oforganisational activities that have the samobjective should be directed by one managusing one plan.6. Subordination of individual interests to the general interest . The interests of any oneemployee or group of employees should ntake precedence over the interests of the

organization as a whole.7. Remuneration . Workers must be paid a fairwage for their services.

8. Centralisation . Centralisation refers to thedegree to which subordinates are involveddecision making. Whether decision makincentralized (to management) or decentrali(to subordinates) is a question of properproportion. The task is to find the optimumdegree of centralisation for each situation.

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9. Scalar chain . The line of authority from topmanagement to the lowest ranks represent

the scalar chain. Communications shouldfollow this chain. However, if following thchain creates delays, cross-communicationcan be allowed if agreed to by all parties asuperiors are kept informed.

10. Order . People and materials should be ithe right place at the right time.11. Equity . Managers should be kind and faito their subordinates.

12. Stability of tenure of personnel . Highemployee turnover is inefficient. Managem

should provide orderly personnel planningensure that replacements are available to fvacancies.

13. Initiative . Employees who are allowed toriginate and carry out plans will exert higlevels of effort.

14. Esprit de corps . Promoting team spirit wibuild harmony and unity within theorganization.

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Fayol's work has stood the test of time and habeen shown to be relevant and appropriate to

contemporary management. Many of todaysmanagement texts including Daft[4]have reducedthe six functions to four: (1) planning; (2)organizing; (3) leading; and (4) controlling. Dtext is organized around Fayol's four function

Mary Parker Follett (3 September 1868 18

December 1933)was an Americansocial worker,management consultantand pioneer in the fieldsof organizational theoryandorganizationalbehavior.Shealso authored a number of booksand numerous essays, articles and speeches odemocracy, human relations, political philosophy, psychology, organizational behaviorandconflictresolution. Along withLillian Gilbreth, MaryParker Follettwas one of two great womenmanagement gurus in the early days of classi

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management theory. She admonishedovermanaging employees, a process now kno

micromanaging, as bossism and she is regardedby some writers as the mother of ScientificManagement. As such she was one of the firstwomen ever invited to address the London Scof Economics, where she spoke on cutting-edmanagement issues. She also distinguishedherself in the field of management by beingsought out byPresident Theodore Rooseveltashis personal consultant on managing not-for-profit, non-governmental, and voluntaryorganizations. In her capacity as a manageme

theorist, Mary Parker Follett pioneered theunderstanding of lateral processes withinhierarchical organizations (which recognitiondirectly to the formation of matrix-styleorganizations, the first of which was DuPont,the 1920s), the importance of informal proceswithin organizations, and the idea of the"authority of expertise"--which really served modify the typology of authority developed bher German contemporary,Max Weber,who

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broke authority down into three separatecategories: rational-legal, traditional and

charismatic.[2]

Follett was born inMassachusettsand spentmuch of her early life there. In September 18she enrolled inAnna Ticknor's Society toEncourage Studies at Home.[3]In 1898 she

graduated fromRadcliffe College,but was denieda doctorate at Harvard on the grounds that shwas a woman.Over the next three decades, however,shepublished many works, including:

The Speaker of the House of Representatives (1896)

The New State (1918) Creative Experience (1924) Dynamic Administration (1942) (this

collection of speeches and short articles wpublished posthumously)She recognized the holistic nature of communand advanced the idea of "reciprocal

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relationships" in understanding the dynamicaspects of the individual in relationship to oth

Follettadvocated the principle of what shetermed "integration," or noncoercive power-sharing based on the use of her concept of"power with" rather than "power over." Her idonnegotiation, power,andemployee participation were highly influential in the development offields oforganizational studies, alternativedispute resolution, and theHuman RelationsMovement.[citation needed ] Follett contributed greatlyto thewin-winphilosophy, coining the term in hwork with groups. Her approach to conflict w

embrace it as a mechanism of diversity and anopportunity to develop integrated solutionsrather than simply compromising.[4]She was also apioneer in the establishment ofcommunitycenters.

Even though most of Mary Parker Follett'swritings remained known in very limited circuntil republished at the beginning of this deca(beginning with Pauline C. Graham's first-rat

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work), her ideas gained great influence afterChester Barnard,a New Jersey Bell executive

and advisor to PresidentFranklin D. Roosevelt,published his seminal treatment of executivemanagement,The Functions of the Executive .[5] Barnard's work, which stressed the critical roof "soft" factors such as "communication" an"informal processes" in organizations, owed atelling yet undisclosed debt to Follett's thoughand writings. In addition, her emphasis on susoft factors paralleled the work ofElton MayoatWestern Electric's Hawthorne Plant, andpresaged the rise of theHuman Relations

Movement, as developed through the work ofsuch figures asAbraham Maslow, Kurt Lewin, Douglas McGregor, Chris Argyris, Dick Beckhardand other breakthrough contributors to the fieof Organizational Developmentor "OD".[6]Herinfluence can also be seen indirectly perhaps the work of Ron Lippitt, Ken Benne, Lee BraEdie Seashore and others at theNationalTraining Laboratoriesin Bethel, Maine, where T-Group methodology was first theorized and

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developed.[7]Thus, Mary Follett's work set thestage for a generation of effective, progressiv

changes in management philosophy, style andpractice, revolutionizing and humanizing theAmerican workplace, and allowing the fulfillof Douglas McGregor's management visionquantum leaps in productivity effected througthe humanization of the workplace.[8] Follett's writings span the decades. InThe New State, Follett ponders many of the social issueat hand today. "It is a mistake to think that soprogress is to depend upon anything happeninthe working people: some say that they are togiven more material goods and all will be wesome think they are to be given more "educatand the world will be saved. It is equally a mito think that what we need is the conversion t"unselfishness" of the capitalist class." [9]

Pawelec, (1998) (now Ann Deschenes) foundobscure reference pointing to Mary Parker Fohaving coined the term "TransformationalLeadership". She quote: Rusch, Edith A. (199

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"The social construction of leadership: Fromtheory to praxis" discovered that"writings and

lectures by Mary Parker Follet from as early a1927 contained references to transformationaleadership, the interrelationship of leadershipand followership, and the power of collectivegoals of leaders and followers" (p. 8). Burnsmakes no reference to Mary Parker Follet inLeadership, Nonetheless Rusch was able to trwhat appear to be parallel themes in the workBurns and Follet." Rusch presents directreferences in Appendix A. Pawelec (Deschenfound further parallels of transformational

discourse between Follet's ( 1947,1987) workBurns(1978).

Chester Irving Barnard (November 7, 1886 June 7, 1961)was anAmericanbusinessexecutive, public administrator, and the authorpioneering work inmanagementtheory and

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organizational studies. His landmark 1938 book,The Functions of the Executive , sets out atheory

of organizationand of the functions ofexecutives in organizations. The book has beenwidely assigned in university courses inmanagementtheory andorganizationalsociology.[2]

biography

In his youth, Barnard worked on a farm, thenstudied economics atHarvard University,earning

money selling pianos and operating a dance bHarvard denied him a BA because of atechnicality, but a number of universities latergranted him honorary doctorates.[1] Barnard joined theAmerican Telephone and

Telegraph Company(now AT&T) in 1909. In 192he became president of theNew Jersey BellTelephone Company.During theGreat Depression,he directed the New Jersey state relief

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system.[2]He was elected a Fellow of theAmerican Academy of Arts and Sciencesin

1939.[3]

He was president of theUnited ServiceOrganizations(USO), 1942-45. Upon retiringfrom business, he served as president of theRockefeller Foundation, 194852, and as chairmanof theNational Science Foundation, 1952-54.[2] End 1950s he was among the first members othe Society for General Systems Research. Work

Barnard looked at organizations as systems ocooperation of human activity, and noted that

they are typically short-lived. It is rare for afirm to last more than a century. Similarly monations last for less than a century. The onlyorganization that can claim a substantial age ithe Roman Catholic Church.According to Barnardorganizations are not long-lived because theynot meet the two criteria necessary for surviveffectivenessandefficiency. Effectiveness, isdefined the usual way: as being able to accomstated goals. In contrast, Barnard's meaning o

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organizational efficiency differed substantiallfrom the conventional use of the word. He

defined efficiency of an organization as thedegree to which that organization is able tosatisfy themotivesof the individuals. If anorganization satisfies the motives of its membwhile attaining its explicit goals, cooperationamong its members will last.Barnard was a great admirer ofTalcott Parsons (19021979) and he and Parsons correspondedpersistently. The two scholars would sendmanuscripts for commentary to each other anthey would write long letters where they engain a common theoretical discussion. The firstcorrespondence between Barnard and Parsonbegan in the end of the 1930s and it persistedessentially to Barnards death in 1961. The Functions of the Executive

Main article:The Functions of the ExecutiveBarnard's classic 1938 bookThe Functions of the Executive discusses, as the title suggests, the

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functions of the executive, but not from a merintuitive point of view, but instead deriving th

from his conception of cooperative systems.Barnard summarized the functions of theexecutive as follows:

Establishing and maintaining a system ofcommunication;

Securing essential services from othermembers; Formulating organizational purposes andobjectives.

Authority and incentives

Barnard formulated two interesting theories: of authorityand the other ofincentives.Both areseen in the context of acommunication system grounded in seven essential rules:

The channels of communication should bedefinite; Everyone should know of the channels ofcommunication;

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Everyone should have access to the formachannels of communication;

Lines of communication should be as shoras direct as possible; Competence of persons serving ascommunication centers should be adequat

The line of communication should not beinterrupted when the organization isfunctioning;

Every communication should be authenticThus, what makes a communicationauthoritative rests with the subordinate rather than with hissuperior. Barnard's perspective had affinities that ofMary Parker Follettand was very unusualfor his time, and that has remained the case dto the present day. He seemed to argue thatmanagers should obtain authority by treatingsubordinates with respect and competence.

As for incentives, he proposed two ways ofconvincing subordinates to cooperate: tangiblincentives andpersuasion. He gives greatimportance to persuasion, much more than to

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economic incentives.He described four generaland four specific incentives. The specific

incentives were:1. Money and other material inducements;2. Personal non-material opportunities for

distinction;3. Desirable physical conditions of work;

4. Ideal benefactions, such as pride ofworkmanship etc.

Peter Ferdinand Drucker (November 19, 1909 November 11, 2005) was an influential writermanagement consultant, and self-described

social ecologist.[1]

Introduction

Drucker's books and scholarly and populararticles explored how humans are organizedacross the business, government and thenonprofit sectors of society.[2]He is one of thebest-known and most widely influential think

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and writers on the subject ofmanagementtheoryand practice. His writings have predicted man

the major developments of the late twentiethcentury, including privatization anddecentralization; the rise of Japan to economiworld power; the decisive importance ofmarketing; and the emergence of the informasociety with its necessity of lifelong learning.[3] In 1959, Drucker coined the term knowledgeworker" and later in his life consideredknowledgeworker productivityto be the next frontier ofmanagement.[4]Peter Drucker gave his name totwo institutions: theDrucker Instituteand the

Peter F. Drucker and Masatoshi Ito GraduateSchool of Management, both at ClaremontGraduate University.[5]The annualGlobal PeterDrucker Forumin his hometown ofVienna Austria, honors his legacy.

BiographyLife

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Drucker was of Jewish descent on both hispaternal and his maternal sides,[6]but his parents

converted to Christianity and lived in what hereferred to as a "liberal" Lutheran Protestanthousehold inAustria-Hungary.[7]His motherCaroline Bondi had studied medicine and hisfather Adolf Drucker was a lawyer and high-lcivil servant.[8]Drucker was born inVienna, thecapital ofAustria, in a small village namedKaasgraben (now part of the 19th district ofVienna, Dbling).[9]He grew up in a home whereintellectuals, high government officials, andscientists would meet to discuss new ideas.[10]

After graduating from DblingGymnasium,Drucker found few opportunities for employmin post-World WarVienna, so he moved toHamburg, Germany,first working as an apprenticat an established cotton trading company, the

a journalist, writing forDer sterreichische Volkswirt (The Austrian Economist ).[8]Druckerthen moved toFrankfurt, where he took a job atthe DailyFrankfurter General-Anzeiger .[11]While

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in Frankfurt, he also earned a doctorate ininternational lawand public law from the

University of Frankfurtin 1931.[12]

In 1933, Drucker left Germany for England.[13]InLondon, he worked for an insurance company, as the chief economist at a private bank.[14]Healso reconnected with Doris Schmitz, an

acquaintance from the University of Frankfurwhom he married in 1934.[15]The couplepermanently relocated to the United States,where he became a university professor as wea free-lance writer andbusinessconsultant.

In 1943, Drucker became anaturalized citizenofthe United States. He then had a distinguishedcareer as a teacher, first as a professor ofpolitics and philosophy atBennington Collegefrom19421949, then for more than twenty years atNew York Universityas a Professor ofManagementfrom 1950 to 1971.Drucker came to California in 1971, where hedeveloped one of the country's first executive

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MBA programsfor working professionals atClaremont Graduate University(then known as

Claremont Graduate School). From 1971 to hdeath he was the Clarke Professor ofSocialScienceandManagementat Claremont GraduateUniversity.[16] Claremont Graduate University'smanagement school was named the "Peter F.Drucker Graduate School of Management" inhonor in 1987 (later renamed the "Peter F.Drucker and Masatoshi Ito Graduate School oManagement"). He established the DruckerArchives at Claremont Graduate University in1999; the Archives became the Drucker Instit

in 2006. Drucker taught his last class in 2002age 92. He continued to act as aconsultanttobusinessesandnon-profit organizationswell intohis nineties.Drucker died November 11, 2005 inClaremont,

Californiaof natural causes at 95.Family

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In 1934 Drucker married Doris Schmitz, whomet at the University of Frankfurt. Their

wedding certificate lists his name as "PeterGeorg Drucker".[15]They had four children and sgrandchildren and lived in Claremont,California.[16] Work and philosophy

Early influences

Among Peter Drucker's early influences was Austrian economistJoseph Schumpeter, a friendof his fathers, who impressed upon Drucker theimportance ofinnovationandentrepreneurship.[17] Drucker was also influenced, in a much differway, byJohn Maynard Keynes,whom he heardlecture in 1934 inCambridge.[18] I suddenlyrealized that Keynes and all the brilliant econstudents in the room were interested in the

behavior of commodities, Drucker wrote, while Iwas interested in the behavior of people. [19] Over the next 70 years, Druckers writings wouldbe marked by a focus on relationships among

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human beings, as opposed to the crunching ofnumbers. His books were filled with lessons on

how organizations can bring out the best inpeople, and how workers can find a sense ofcommunity and dignity in a modern societyorganized around large institutions.[2]As abusiness consultant, Drucker disliked the termguru, though it was often applied to him; I havebeen saying for many years, Drucker onceremarked, that we are using the word guru onlybecause charlatan is too long to fit into aheadline.[20] As a young writer, Drucker wrote two pieces one on the conservative German philosopherFriedrich Julius Stahlandanother called The Jewish Question in Germany that were burnedand banned by the Nazis.[3] The 'business thinker'

Drucker's career as a business thinker took ofin 1942, when his initial writings on politics asociety won him access to the internal workin

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of General Motors (GM), one of the largestcompanies in the world at that time. His

experiences inEuropehad left him fascinatedwith the problem of authority. He shared hisfascination withDonaldson Brown, themastermind behind the administrative controlGM. In 1943 Brown invited him in to conducmight be called a "political audit": a two-yearsocial-scientific analysis of the corporation.Drucker attended every board meeting,interviewed employees, and analyzed producand decision-making processes.The resulting book,Concept of the Corporation , popularized GM's multidivisional structure anto numerous articles, consulting engagementsadditional books. GM, however, was hardly twith the final product. Drucker had suggestedthat the auto giant might want to reexamine a

host of long-standing policies on customerrelations, dealer relations, employee relationsmore. Inside the corporation, Druckers counselwas viewed as hypercritical. GM's revered

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knew more about certain subjects than theirbosses or colleagues and yet had to cooperate

with others in a large organization. Rather thasimply glorify the phenomenon as the epitomhuman progress, Drucker analyzed it andexplained how it challenged the common thinabout how organizations should be run.

His approach worked well in the increasinglymature business world of the second half of thtwentieth century. By that time, largecorporations had developed the basicmanufacturing efficiencies and managerialhierarchies ofmass production.Executivesthought they knew how to run companies, andDrucker took it upon himself to poke holes intheir beliefs, lest organizations become stale. he did so in a sympathetic way. He assumed this readers were intelligent, rational, hardwor

people of good will. If their organizationsstruggled, he believed it was usually because outdated ideas, a narrow conception of probleor internal misunderstandings.

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Consulting career

During his long consulting career, Drucker wwith many major corporations, includingGeneralElectric, Coca-Cola,[23] Citicorp, IBM,andIntel. He consulted with notable business leaders suas GEs Jack Welch ;[24] Procter & Gambles A.G.Lafley;[25] Intels Andy Grove ;[25] Edward Jones

John Bachmann;[26]

Shoichiro Toyoda, thehonorary chairman ofToyotaMotor Corp.; andMasatoshi Ito, the honorary chairman of theIto-YokadoGroup, the second largest retailingorganization in the world.[27]Although he helpedmany corporate executives succeed, he wasappalled when the level ofFortune 500CEO payin America ballooned to hundreds of times ththe average worker. He argued in a 1984 essathat CEO compensation should be no more th20 times what the rank and file makeespecially

at companies where thousands of employees being laid off. This is morally and sociallyunforgivable, Drucker wrote, and we will pay aheavy price for it. [3]

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Drucker served as a consultant for variousgovernment agencies in theUnited States,

CanadaandJapan.He worked with variousnonprofit organizations to help them becomesuccessful, often consulting pro bono. Amongmany social-sector groups he advised were thSalvation Army, theGirl Scouts of the USA,C.A.R.E., theAmerican Red Cross, and theNavajoIndian Tribal Council.[28] In fact, Drucker anticipated the rise of the socsector in America, maintaining that it wasthrough volunteering in nonprofits that peoplwould find the kind of fulfillment that heoriginally thought would be provided throughtheir place of work, but that had proven elusivthat arena. Citizenship in and through the socialsector is not a panacea for the ills of post-capitalist society and post-capitalist polity, bu

may be a prerequisite for tackling these ills,Drucker wrote. It restores the civicresponsibility that is the mark of citizenship, the civic pride that is the mark of community. [29]

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Drucker's writings

Drucker's 39 books have been translated intomore than thirtylanguages.Two arenovels, oneanautobiography.He is the co-author of a bookonJapanese painting, and made eight series ofeducational filmsonmanagementtopics. He alsopenned a regular column in the Wall Street

Journal for 10 years and contributed frequentlyto theHarvard Business Review , The Atlantic Monthly , andThe Economist . His work is especiallypopular in Japan,even moreso after the publication of "What If the Female

Manager of a High-School Baseball Team ReDruckers Management" , a novel that features themain character using one of his books to greaeffect, which was also adapted into an anime a live action film.[30]His popularity in Japan maybe compared with that of his contemporaryW.Edwards Deming.[31] Peter Drucker also wrote a book in 2001 calle"The Essential Drucker". It is the first volume

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and combination of the past sixteen years ofPeter Drucker's work on management. The

information gather is a collection from hisprevious findings, The Practice of Manageme(1954) to Management Challenges for the 21Century (1999), this book offers, in Drucker'swords, "a coherent and fairly comprehensiveintroduction to management". He also answerfrequently asked questions from up and comientrepreneurs who wonder the questionableoutcomes of management.[16] Key ideas

Several ideas run through most of Drucker'swritings: Decentralization and simplification.[32] Drucker discounted thecommand and control model and asserted that companies work b

when they are decentralized. According toDrucker, corporations tend to produce toomany products, hire employees they don'tneed (when a better solution would be

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outsourcing), and expand into economicsectors that they should avoid.

The concept of "Knowledge Worker" in hi1959 book "The Landmarks of Tomorrow.[33] Since then, knowledge-based work hasbecome increasingly important in businessworldwide.

The prediction of the death of the "BlueCollar" worker.[34]A blue collar worker is atypical high school dropout who was paidmiddle class wages with all benefits forassembling cars in Detroit. The changing of the US Auto Industry is a testimony to

this prediction. The concept of what eventually came to bknown as "outsourcing."[35]He used theexample of front room and a back room ofeach business: A company should be engain only the front room activities that are coto supporting its business. Back roomactivities should be handed over to othercompanies, for whom these are the frontroom activities.

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The importance of the non-profit sector,[36] which he calls the third sector (private

sector and the Government sector being thfirst two.) Non-Government Organization(NGOs) play crucial roles in countries arothe world.

A profound skepticism ofmacroeconomic theory.[37]Drucker contended thateconomists of all schools fail to explainsignificant aspects of modern economies.

Respect of the worker. Drucker believed themployees are assets and not liabilities. Htaught that knowledgeable workers are the

essential ingredients of the modern economCentral to this philosophy is the view thatpeople are an organization's most valuableresource, and that a manager's job is both prepare people to perform and give themfreedom to do so.[38]

A belief in what he called "the sickness ofgovernment." Drucker made nonpartisanclaims that government is often unable orunwilling to provide new services that peo

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need or want, though he believed that thiscondition is not inherent to the form of

government. The chapter "The Sickness oGovernment"[39]in his bookThe Age of Discontinuity formed the basis ofNew PublicManagement,[40] a theory of publicadministration that dominated the disciplinin the 1980s and 1990s.

The need for "planned abandonment."Businesses and governments have a naturahuman tendency to cling to "yesterday'ssuccesses" rather than seeing when they arno longer useful.[41]

A belief that taking action without thinkinthe cause of every failure.[42] Theneed for community. Early in his career,Drucker predicted the "end of economic mand advocated the creation of a "plantcommunity"[43]where an individual's socialneeds could be met. He later acknowledgethat the plant community never materializand by the 1980s, suggested thatvolunteering in the nonprofit sector was th

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key to fostering a healthy society wherepeople found a sense of belonging and civ

pride.[44]

The need to manage business by balancingvariety of needs and goals, rather thansubordinating an institution to a singlevalue.[45][46]This concept ofmanagement byobjectivesforms the keynote of his 1954landmarkThe Practice of Management .[47]

A company's primary responsibility is to sits customers. Profit is not the primary goabut rather an essential condition for thecompany's continued existence.[48]

A belief in the notion that great companiecould stand among humankind's noblestinventions.[49]

Criticism of Drucker's work

The Wall Street Journal researched several ofhis lectures in 1987 and reported that he wassometimes loose with the facts. Drucker was the mark, for example, when he told an audiethat English was the official language for all

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employees at Japans Mits ui trading company.(Druckers defense: I use anecdotes to make a

point, not to write history.) And while he wasknown for his prescience, he wasnt alwayscorrect in his forecasts. He predicted, forinstance, that the nations financial center wouldshift from New York to Washington.[50]

Others maintain that one of Druckers coreconceptsmanagement by objectivesis flawedand has never really been proven to workeffectively. Critic Dale Krueger said that thesystem is difficult to implement, and thatcompanies often wind up overemphasizing coas opposed to fostering creativity, to meet thegoals.[51] Drucker's classicConcept of the Corporation criticizedGeneral Motorsat a time when it was,in some ways, the most successful corporatiothe world. Many of GM's executives considerDruckerpersona non gratafor a long timeafterward.Alfred P. Sloanrefrained frompersonal hostility toward Drucker, but even S

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considered Drucker's critiques of GM'smanagement to be "dead wrong".[52]

Awards and honors

Drucker was awarded thePresidential Medal ofFreedomby U.S. PresidentGeorge W. BushonJuly 9, 2002.[53] He also received honors from thgovernments of Japan[54]and Austria.[55]He wasthe Honorary Chairman of thePeter F. Drucker Foundation for Nonprofit Management , now theLeader to Leader Institute , from 1990 through2002.[56]In 1969 he was awardedNew YorkUniversitys highest honor, the NYU Presidentia

Citation.[57]

Harvard Business ReviewhonoredDrucker in the June 2004 with his seventhMcKinsey Award for his article, "What MakeEffective Executive", the most awarded to onperson.[58]Drucker was inducted into the JunioAchievement U.S. Business Hall of Fame in1996.[59]Additionally he holds 25 honorarydoctorates from American, Belgian, Czech,English, Spanish and Swiss Universities.[60]His1954 bookThe Practice of Management was voted

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