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Peter Drucker’s Management Can Keep Up with Technology Thesis

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Updated: Jun 9th, 2022

Summary

There are different management styles. However, one management style may not fit all types of business organizations. For example, the old accounting system must give way to the new technology where computers and computer software are used to hasten work done and retrench redundant employees to save on costs and expenses. Conclusively, Peter Drucker insists that management should search for technological change and manage in order to increase sales, net profits, market share and reduce costs and expenses to a bare minimum.

Introduction

There are different management styles. One style will fit one or more business organizations’ setups. In the same light, one style may not fit all types of human behaviors in the organization. Some of the management styles include theory X and Theory Y. The following paragraphs will delve into management’s vital role in keeping up with technology (Micklethwait, Wooldridge, 1996)

Body

Peter Drucker emphasized that there are different management styles. However, all these management styles must adapt to change in order to keep up with technology. Both Theory X and theory Y must correspond to change innovatively. For example, Company

A must offer after-sales services to its prospective and current customers if its marketing department discovers that both of its closest rivals in the industry advertise in the media that it will be offering a lifetime free after-sales service. Likewise, company A must offer a ten percent discount to its current and prospective clients if its marketing personnel notices that their closest business rivals will be discounting their products by ten percent due to the drop in their production costs. This production cost could have been due to their purchase of new technology. The new technology could be the use of computer software and hardware and robots to produce car products. The new technology would result in the retrenchment of some of its employees due to redundancy(Boudreaux, 2005).

Peter Drucker insists that managers must set up systematic methods to look for and anticipate change. Also, the managers must know the right ways to introduce change to their employees and external parties doing business with the company. The managers must learn to balance change and continuity so that the resistance from its change–phobic employees could be reduced to the bare minimum. Lastly, the company must do its best to motivate and retain its top performers and to create a positive change mindset among its employees(Hesselbein, 2001).

Peter Ducker requests that managers must love to experiment with new technology. They must encourage their employees to accept change as a necessary tool for the company’s and the individual employees’ survival in the business world. The old technology of the typewriter must be replaced with the new technology characterized by the use of computers, and time-saving business software. The use of accounting software like Quickbook and MYOB would result in the reduction of employees by as much as sixty percent in terms of time. Also, the use of the new software would cause the termination or reassignment of employees whose jobs have been replaced by high-speed and more accurate office computer programs(Levinson, 2005).

Most importantly, Peter Drucker states that managers must encourage their employees to search for technological changes and to maximize their management in order to increase sales, increase profits, reduce variable and fixed expenses and reduce costs. Giving a 10% salary increase for saving the company’s costs by 50% thru the use of technology is a good management strategy. Employees must be trained to accept change without reservation(Swanson, 1984).

Conclusion

There are different management styles. One management style may not fit all types of business organizations. Theory X management differs from theory Y management but they must accept change or the new technology. The old accounting system must be replaced with the new technology where computer software replaces employees in order to save time and labor expenses.

Further, management must innovatively and creatively search for change, study it and control it in order to increase the company’s image. Image can be measured in terms of the use of new innovative technology to increase sales, increase net income, decrease costs and expenses and increase the company’s market share in the industry. Conclusive, this is the best management strategy in order to make this place a better world (Stone, 2006).

Works Cited

Drucker, Peter. “ A Conversation with Peter Drucker.”

Boudreaux, Greg. “Peter Drucker’s Continuing Relevance for Electric Cooperatives.” Management Quarterly 46.4 (2005): 18+.

Healey, Stephen. “Dialogue among Civilizations: Possibilities after Huntington.” International Journal on World Peace 18.1 (2001): 7.

Hesselbein, Frances. 2001.“Leading in a Time of Change.”, New York: Drucker Foundation.

Levinson, Martin H. “Using General Semantics for Effective Self-Management.” ETC.: A Review of General Semantics 62.4 (2005): 370+.

Micklethwait, John, and Adrian Wooldridge. “Drucker: The Guru’s Guru.” The McKinsey Quarterly (1996): 144.

Stone, Nan. “Thinking about Work: Peter Drucker Taught Us Why We Need to Know What the Boss Is Up To.” American Scholar Spring 2006: 125+.

Swanson, Robert D. “Compensation Options for Small Business Management.” Journal of Small Business Management (1984): 31+.

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IvyPanda. 2022. "Peter Drucker's Management Can Keep Up with Technology." June 9, 2022. https://ivypanda.com/essays/peter-druckers-management-can-keep-up-with-technology/.

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