Drucker’s theories focus on leaders’ commitment of various corporations to make constructive policies on full employment (Yaeger & Sorensen, 2011). He suggested that an organization can make fiscal polices that clearly favor the capitalizations of profits as reserves. Thus, expansion can be financed while being shielded from the risk it entails.
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In the event that the amount of profit retained and not generated exceeds that required to cover losses or invest in productive assets, such profit would become table. An even attractive incentive could be given by cutting tax on the profit obtained through capital investments. It is highly probable that this would make it easier for corporations to implement strategic planning for long-term investments than short-term ones (Teo-Dixon & Monin, 2007).
Ducker’s thinking considers the creative power of human imagination and initiative. It is important, especially, when the economy has entered a cycle of maturity and there is a shortage of raw materials. These resources, that come directly from man, and are called to replace natural resource, must be cared for, cultivated, motivated, and encouraged.
A practical way is to encourage free, individual entrepreneurship, rather than strangling it with control and state planning (Teo-Dixon & Monin, 2007). Drucker has emphasized on the theory of getting the right things to be done. Ideally, the success of a manager in a non-profit making organization will be achieved through the understanding that the effectiveness, in any operation, is learned. For one to be effective, the manager should adhere to basic principles that incorporate discipline.
The manager should not only be creative and knowledgeable, but discipline plays a vital role in his success. Discipline is achieved by utilizing the time available—time management skill—by discarding or minimizing the activities that waste a lot of time. Drucker’s other suggestion of effectiveness is mobilization of strength in an organization.
Consequently, Drucker’s analysis of management and strategic planning, he argues that the strategic planning commences with the organization’s mission. Following this trend, the strategy should put into consideration the economic climate; that is analyzing the changes inherent in the economy. Drucker’s describes decision making as a timely machine that synchronizes the current number of the divergent spans of time. Decision making process is an active element in defining an organization’s success. The strategic planning depends on management’s vital decision, which also determines the organization’s success (Kurzynski, 2009).
According to Druker, strategic planning is a long range planning that is made by short-run decisions (Micklethwait & Wooldridge, 2011). The long-term decisions can be ineffective unless it is based on short-term decisions and plans. Management needs to integrate the short-term decisions and plans from various departments in order to realize a successful strategic planning; otherwise, it will be a futile exercise (Teo-Dixon & Monin, 2007).
Drucker seeks to provide an insight on the perception of the religious organization, and how it should be managed effectively. Indeed, in the shadow of the Christian tradition, he develops a theory, which argues that perfection or efficiency does not distinguish freedom in the society (Meynhardt, 2010).
Choice and responsibility are given in the social field. Only the social sphere can be constitutively free or not free. Freedom lies not in laws, it is not the result of a legislative decision; however, it stands on social beliefs and institutions. However, Drucker suggests that somehow we must return to the roots of the conservative counter-revolution of 1776 and 1787. In this era, there was provision of values, beliefs, and abilities that enhanced new social integration in the society.
Kurzynski, M. (2009). Peter Drucker: modern day Aristotle for the business community. Journal of Management History. Vol. 15: Iss: 4, pp. 357-374
Meynhardt, T. (2010). The Practical Wisdom of Peter Drucker: roots in the Christian tradition. Journal of Management Development, Vol. 29 Iss: 7/8, pp. 616-625.
Micklethwait, J. & Wooldridge, A. (2011). Drucker: the guru’s guru. Web.
Teo-Dixon, G. & Monin, N. (2007). Guru of Gurus. Peter Drucker, Logology, and the Ultimate Leader. Journal of Management Inquiry, Vol 1. pp. 6-17.
Yaeger, T & Sorensen, P. (2011). In Memory of Peter Drucker 1909-2005. Web.