The “Father of Modern Management,” Peter F. Drucker, contributed significantly to business management. His theories have revolutionized management techniques and are often taught in MBA project management programs today.
The common idea across his theories is decentralization, which is the idea that management should focus on empowering employees and creating relationships with customers.
Here is more information about Drucker’s business management theories:
Peter F. Drucker’s Theories in MBA Project Management Programs
Peter Drucker was an educator, business consultant, and author whose works made his name synonymous with management.
His theories provide valuable business insights and management tips that can be practiced and taught in university settings.
Many business-focused programs, like MBA project management programs, in institutions providing hands-on, real-world education implement these teachings in their coursework. Here are some of Drucker’s theories that are taught in MBA programs:
1. Management of Objectives
Management of Objectives (MBO) is a model where managers and their subordinates collaborate to formulate clear objectives.
The main goal of this model is to improve employee participation and commitment toward achieving the organization’s goals.
Drucker believed that involving employees in planning and setting objectives provides opportunities for them to commit to work-related activities and experience their work more meaningfully.
In his book The Practice of Management, Drucker outlines the principles of MBO and the steps needed to implement the technique.
These steps include formulating objectives, designing an action plan, implementing the plan, monitoring performance, and providing honest feedback.
2. Concept of Decentralization
Drucker believed in and advocated for the decentralization of management, arguing that traditional, centralized management no longer worked effectively for modern organizations.
According to this concept, diversifying decision-making empowers employees to make decisions that impact their work and the organization’s operations.
Delegating decision-making powers can help an organization respond faster to changing conditions and customers’ needs.
Subordinates can make decisions without being hindered by stringent procedures as long as the decisions align with the organization’s goals.
3. Concept of the Knowledge Worker
According to Drucker, knowledge workers are employees who acquire, manipulate, and apply knowledge and information to make decisions within an organization.
Their roles are integral to organizations’ growth as they provide solutions that drive innovation and competitiveness.
Knowledge workers can also help organizations develop their services and products. Examples of knowledge workers include researchers and financial analysts.
4. Concept of the Age of Discontinuity
In his book, “The Age of Discontinuity: Guidelines to Our Changing Society,” Peter Drucker introduced the concept of the age of discontinuity, which explains the transition to unpredictable, modern business landscapes.
He describes the critical role of knowledge workers in the age of discontinuity and how they can help shape an organization’s future. These ideas remain relevant today, with rapid technological changes, the economy, and the geopolitical landscape.
This concept encourages MBA project management students to be forward-thinking, innovative, and adaptable.
Peter F. Drucker Theories Shaping the Future of Management
As a consultant and author, Peter Drucker coined many theories and concepts that modernized corporate management. These theories are taught today in MBA programs as a foundation for understanding effective management and leadership in the business world.
Many institutions have incorporated Drucker’s theories into their curriculum to help learners engage with and fit into today’s dynamic business landscape.
Explore various MBA programs today to learn more about Drucker’s theories and how they are taught to graduate students.