Timeliness of the Concepts and Theories of the Practice of Management Essay

Timeliness of the Concepts and Theories of the Practice of Management by Drucker Peter - Essay Example It is evidently clear from the discussion that the book â€Å"The Practice of Management† by Drucker Peter became famous and a manifesto of the time because it laid bare and explained the topic of management.   In this book, Drucker explained that management was a profession just like law and medicine, and thus it should aim at getting the best from people. The concepts outlined by Drucker became important guidelines for managers and executives of firms in the 1950s. Drucker’s theories and concepts were not only applicable in the 1950s. They are still applicable to today’s firms. According to Drucker, the only sustainable advantages for an organization are the quality and performance of management. This is true of today’s firms in that their performances are a good reflection of the quality and performance of their managers. Currently, firms are more sensitive to the quality of their management than in the past. To back up this theory, Drucker lists the duties of management that are aimed at improving the performance of the firm, these duties still applying to the management of today’s firms. Another theory postulated by Drucker in the book is that managerial capabilities will be challenged by advances in technology and automation because they will produce a highly skilled and highly knowledgeable workforce. Currently, firms are employing managers with high capabilities to lead their highly skilled and highly educated employees. In the book, Drucker explains the concept of the firm and points out six important points under this. First, Drucker states that organizations and managers should be outward looking. Considering today’s firm's managers do not just allow themselves to be influenced by the external environment. Instead, they also try to shape it through creativity. The description of organizations as social institutions still applies to today’s organizations because, in addition to being created and manag ed to be people, they also contribute to the society, economically and socially. Drucker views businesses as organizations pursuing multiple goals, both economic and non-economic. This is true of today’s firms considering that they conduct profit and non-profit making activities like charity works. Drucker identifies innovation as an important concept of a firm and as seen today, firms are placing a great emphasis on innovation, creativity, and entrepreneurship as a way of gaining a competitive advantage over similar firms. Drucker describes the firm as a focused organization. This concept is evident and applicable in today’s firms in that the management always align the resources of their firms towards the achievement of their primary objectives. Finally, the concept of firms as being spirited is still applicable today. Managers of firms develop motivated managers out of their workforce through activities that enhance personal growth among employees. A "big loser" org anization Firestone Tire and Rubber Company is one organization that can be singled out in the history of the 20th century as a big looser organization and the theories and concepts described in by the selections of part III greatly apply to it.