Post – Capitalist SocietyPeter F. Drucker

(1994)

DA 8010 Organization Analysis and ManagementPatcharawan Ubonloet

571013100114 October 2015

Outline• Overview• Society• Polity• Knowledge• Conclusion• Comments

OVERVIEW

OverviewCapitalist society• Factor of production capital (land and

labor etc.)• Society is dominated by two social

classes- the capitalists and workers• Politics: Sovereign Nation-state-

sovereignty is defined by territory

OverviewPost- Capitalist society• Primary resource is knowledge• Employees owns both means and tools for

production• Society is both a non-socialist and post-capitalist• Politics: Plural state-> Post- Capitalist polity which

transnational, regional, nation-state and local even tribal compete and co-exist

• The application of knowledge to work and knowledge worker crucial to economy and society

SOCIETY

1.Society1.1 From Capitalism to Knowledge Society

Meaning of Knowledge

1750 – 1900 : Capitalism prevailed over the globe• 1st phrase Knowledge was applied to tools,

processes, products Industrial Revolution• 2nd phrase (1880 End of WW II) Knowledge is applied

to work Productivity Revolution• 3rd phrase (After WW II) Knowledge is applied to

knowledge itself Knowledge is the most vital factor of production

• Today Knowledge is its ability to do and effective application to increase productivity

1.Society• Organizations is always specialized. It is defined by task. Community

and society, by contrast, are defined by a bond that holds together human beings, whether language, culture, history, or locality. An organization is effective as long as it focuses on one task. Society in all developed countries has become a society of organizations. If not all social tasks are being done in and by an organization. Characteristics and tasks of organization

• Modern organization is an org, of knowledge specialists. It has to be organization of equals, of colleagues, of associates. No boss and subordinate. It must be organized as team of associates.

• The task of organization is to make knowledges become more productive by fusing them into a single unified knowledge, and able to manage change and innovation creation.

• Post-capitalist society employee own means of production and they have high mobility as their means of production is carried with them.

• The redefining of the role, power, and function of both capital and ownership is required.

1.2 The Society of Organizations

1.Society

• Labor based manufacturing should be converted to knowledge based

• Knowledge workers easily lose motivation and dedication because corporations too much attempt maximize shareholders’ value dampening wealth producing capacity of firms

• In the economy of change and innovation, there is no profit only the past and costs of an vague future. The minimum financial return from the operations of the past that is sufficient to the costs of the future is the cost of capital

1.3 Labor, Capital and their Future

1.Society

• Structure of post-capitalist Knowledge and service works requires team meaning dependency on other to organize the work to get things done effectively i.e. writer& editor, painter & gallery. There are three kinds of team 1) Baseball 2) Soccer and 3) Doubles tennis. If we want to change we must cuts across old, long-established, and cherished human relationships.

• To improve productivity organization must remove work that do not contribute to performance and concentrate only on core tasks. Alliances and partnerships are crucial.

• Knowledge is changing so productivity requires continuous learning into your job and organization. The best way is to learn and to teach to others until organization becomes learning and teaching organization.

• Structure of post-capitalist society, on the other hand, tends to resemble a liquid rather than crystalline in their structure like capitalist society.

1.4 The Productivity of the New WorkforcesProductivity relates to economic stagnation and social tension because they knowledge and service workers are paid according to their productivity. To improve productivity requires both changes in structure of organization and society.

1.Society• An organization has full social responsibility for its impact on community

and society, for the effluents it discharges into society and environment such as a local river.

• If organization does not discharge anything, it will reduce organization competence to perform main task and mission.

• Organization must transform from power-based organization to responsibility-based organization.

• The characteristics or responsible-based organization is everyone is associates not superior and subordinate relationship. Everyone know organization’s objective, make contribution and responsible for own behavior which fit the requirement of knowledge-based organization. Everybody is contributor to organizaion.

1.5 The Responsibility Based Organization

POLITY

2.Polity2.1 From Nation- State to Mega State• Mega state is somehow between capitalism and socialism as a

response to the tensions and problems created by the rapid spread of capitalism and technology. It attempts to regulates business activities and address society problems. However, it did not succeed in redistribution of income. The needs to contract out prevail for better achievement in social and economic issues.

• Instead, independent non-profit agencies have done better especially in the U.S.

• The modern state requires a restoration of citizenship of the post-capitalist polity. Every developed country needs an autonomous, self-governing social sector of community organizations. Community can no longer be destiny. In the post-capitalist society and polity, community has to be converted into commitment.

2.Polity2.2 Transnationalism, Regionalism and Tribalism• Neither government, central banks nor nation-state can control

the flow of money. Not even mutual action.• There are also no national boundaries anymore for information as

seen in totalitarianism. The most absolute regime in history to control access to information was a major factor in the collapse of Communism and the Soviet Empire.

• Today information is transnational as money.• Sovereignty over money and information is almost unmanageable.• They require transnational agencies. Increasingly, regionalism also

makes the nation-state less important. While internally, the nation-state is being undermined by tribalism if an attempt to exclude, force tribal groups (immigrants/minority) to the mainstream exists. The best way is advocate of “diversity” because people need roots/ community in transnational world.

2.Polity2.3 The Needed Government Turnaround• Countries should focus on the economic “climate” rather than the

economic “weather.” like Japan and Germany. The aim of economic policies must be to make the patient healthy to keep the patient healthy. It must be to create an economic environment in which the economy can grow; acquire resistance to infection, injury, and disease; acquire the ability to adapt and to change rapidly; and stay competitive. Creating the right climate is not the same thing as keeping taxes low.

• The proper aim of fiscal policy has to be the encouragement of investment in knowledge and in human resources, in productive facilities in business, and in infrastructure. The success cases are Japan, Germany and the Four Asian Tigers- South Korea, Hong Kong, Singapore and Taiwan.

2.Polity2.4 Citizenship through Social Sector• In Mega- state political citizenship can no longer function. Without

citizenship the political unit whether state or empire can only be a power that is the only thing that holds it together.

• In order to be able to act in a rapidly changing and precarious world, the post- capitalist polity must create citizenship.

• Citizenship is active commitment, responsibility and making a difference in one’s community, in one’s society, in one’s country

• It is believed that citizenship can be built trough social sector as the knowledge workers want to voluntarily do more for their community and their country.

KNOWLEDGE

Knowledge3.1 KNOWLEDGE: Its Economic and Its

productivity• It is no longer possible to make huge profits by doing or moving things.

Increasingly, there is less and less return on the traditional resources: labor, land and (money) capital. The main producers of wealth have become information and knowledge.

The AssumptionsTraditional economy Knowledge economy Imperfect competition is the result outside interference with the economy, i.e., of monopoly; of patent protection; of government regulation; and so on.

Imperfect competition is inherent in the economy itself

Economy is determined either by consumption or by investment.

Little evidence that increased consumption or investment in the economy leads to greater production of knowledge.

Knowledge3.1 Knowledge: Its Economic and Its productivity

Three kinds of knowledge

Continuous improvement

Continuous Exploitation

Genuine Innovation

Knowledge3.1 KNOWLEDGE: Its Economic and Its productivity

Knowledge: The New Investment

knowledge Productivity

Social and Economic wellbeing

NationalCompetitiveness

Knowledge3.1 KNOWLEDGE: Its Economic and Its productivity

Making Knowledge Productive

• Systematic, organized application of knowledge to knowledge

• Ambitious result- Make a difference• Clear focus• Systematic exploitation of

opportunities for change that have to be matched with the competences and strengths of the knowledge worker and the team

• Balancing the long term with the short term results

• Turn specialization in knowledge into performance.

Productivity

Knowledge3.2 The Accountable School

School becomes accountable for performance and results

• Technology transforms school but it matters less than the changes which it triggers in substance, content, and focus of schooling and school. These changes in substance, content, and focus are what really matter.

• Continuing education is now a social necessity. The school will be the place where adults continue learning even though they are working full time. They will come back to school for part time courses. Schools will no longer be monopolists. In many areas, schools will only be only one of several available teaching and learning institutions, in competition with other purveyors of teaching and learning.

• Undeniably, school faces radical change that will transform the school. The school will have to commit itself to results. It will have to establish its “bottom line,” the performance for which it should be held responsible and for which it is being paid. The school will finally become accountable.

Knowledge3.3 The Educated Person• Knowledge is not impersonal, like money. Knowledge does not reside

in a book, a databank, a software program. Knowledge is always embodied in person; carried by a person; created, augmented, or improved by a person; applied by a person; taught and passed on by a person; used or misused by a person. The shift to the knowledge society therefore puts the person in the center.

• Educator is a representative of knowledge society who are able to appreciate other cultures and traditions.

• Educated person also will have to be far less exclusively “bookish” than the product of the liberal education of the Humanists.

• Educated person will have to be prepared for life in a global world- a “Westernized” world, yet ever more a tribalized world. He or she must become a “citizen of the world” – in vision, horizon, information with appreciation of the importance and impact of local culture.

CONCLUSION

Conclusion• The great developments in structure of economy and society done by

capitalism have created aftermath in how economy and society should be progressed.

• Knowledge plays crucial role even unlike industrial development in the past but it transcends worker to knowledge worker, the way people live and work together.

• Knowledge workers have high mobility because they have specialization.• Their capacity relates to national competiveness- economy and society.• To deal with the post-capitalist circumstance we must be able to design

organization structure that promote employees to make effective contribution to organization they belong to.

• Organization must be responsible not only for their shareholders but also employees, society to motivate and to improve their productivity.

• Government needs to adapt their role from being control and regulating to a more use of contracting out approach particularly in social tasks.

• Educational institutions will have to be more accountable for developing knowledge workers.

• The most important thing is to built educator that understand and appreciate the difference among tribes, minority groups, religion and the surge of economic activities, people within and between regions that comes with different knowledge and skills.

COMMENTS

Comments• Several phenomenon have already occurred in the U.S.

such as the role of social organization effectively driven by citizenship.

• Even in Thailand we have attempt to adopt this concept to major policies formation, it is not certain that it works because the difference in mindset of people toward social responsibility.

• Society and organization should be less hierarchy, more open for communication freely as it leads to knowledge exchange, productivity improvement and innovation eventually.

• The role of government in developing economic climate that enhances knowledge worker’s productivity and attract those from abroad remain vital concern.

THANK YOU