This past September I picked up The Essential Drucker by managment great Peter Drucker. I sort of bought this out of
remorse….. in an earlier discussion with someone I was asked to consider Porters 5 Forces for an organization and drew a complete blank ( this was quickly fixed when I got to my Strategic Management class … I know pretty bad).
As I’m done exams and school work I finally have a chance to read this book and I’ve gotten far enough to start forming opinions about his writing. At first I was put off by how overlly wordy at times his writing can be ( using words such as fastidiousness even sends me looking for a dictionary) but overall I’m begining to find some usefull insight .
I’ve just finished the chapter called ” Social Impacts and Social Problems” discussing the role of corporations in society. Drucker discusses how while supporting society and being aware of the impact a firm has may seem to go against the idea of profit maximization it actually works in the firms best interest. Companies need advancing and growing societies to operate and as he discusses earlier on in the text the most important thing to a company’s success is the customer.
Within the chapter he also brings up topics that fit very well with todays current economic situation . Companies should knowingly do no wrong as customers and stake holders will loose faith in organizations who only work in their self interest. They should also operate within their realms of responsibility or be held responsible for thier mistakes. He also discusses the falsehood of executive compensation.In his opinion compensation packages don’t reward for expertise and knowledge but rather are made for status and personal standing.
I may give an update or two on some interesting points in the book as I go on but it looks like I may complete it fairly quickly! From what I’ve been reading so far though I think P.Druckers reputation holds true and that his insights are relevant and useful for anyone involved in an organization for-profit or otherwise .