Peter Drucker

1.0 Introduction

The main objective for this task is known about the Father of Management Theory – Peter Drucker. I can study and understand the basic that infiltrate all the P. Drucker’s contributions, and to express his teachings from his inner experiences and helping him to exploit and expressive the theory of management. Besides that, I also can study the theory of marketing in the task. The key achievement of Drucker’s is the most important resources like knowledge and information that can be reinvigorate to guild us comprehend the alteringof  situations in the economy which business value is created.

2.0 Teachings of Peter Drucker

There are many theories that we can learn from Peter Drucker but I just focus on few important theories such as the basic function of business are marketing and innovation, the theory of knowledge worker, and the concept of decentralization in this assignment. His ideas penetrate the literature of marketing and management. To create customer is the objectives of doing a business by P.Drucker. Marketing and Innovation are the two basic function of business for an organization (Gunther, 2009). According to Drucker, the meaning of innovation is the particular implement of operate a business and the act that compose the resources in a new capacitance to create profits. Furthermore, innovation is the essential to make the business grow rapidly by handle the change of trends (Drucker and Maciariello, 2008). Besides that, Peter Drucker also wrote about the contribution of knowledge worker in 1970. He specialised knowledge is not productive in and of itself. The reading will become fruitful when managers integrate distinct types of knowledge that can make their product become competitive advantages (Anne Bang, 2013). Peter Drucker also introduced the idea of decentralization which this theory became the substrata principle for every corporation in the world (Ostdick, 2010). The concept of decentralization is the characteristics of company that manage in complex, unfathomable environment. In 1950s, Drucker assert that the workers should be treated as assets, not as liabilities to be eliminated (Byrne, 2005). It was one of a main idea of Concept of the Corporation which focus on the proficiency resulting from technology to reduce worker cost.

3.0 Relevance of Peter Drucker Teaching Related to Modern Day            

     Organization

Peter Drucker believes in decentralization of management. He saw that many leaders try to take on everything in demonstration of power, under the supposition that only they can achieve a task correctly. Drucker believe that managers should assign the tasks in order to empower workers (Cramer, 2011). Decentralization requires the managers has the ability to have strong decision making skills in order to develop the understanding of environment. Nowadays, the tendency has been change toward structure of decentralized organization, and the most successful corporation, including Mcdonald’s that has decentralized decision-making authority. McDonald’s offer the McItaly, a burger made with only Italian products and designed with red and green Italian flag in mind; customers can choose from different types of ingredients such as cheese, lettuce and pancetta. The change of decentralization structure seems to be McDonald’s key to better, not just bigger (Ferrell, 2011).