Peter Drucker is considered the "Godfather of Management" for coining terms like "knowledge worker." He believed people are an organization's most valuable asset and that there is no business without customers. Drucker identified six functions of management including planning, organizing, staffing, leading, controlling, and motivating. The evolution of management in the US has been influenced by wars, technology, the Industrial Revolution, and the rise of knowledge workers. In the late 1990s, a "Silent Revolution" changed the business environment across five fronts including the flow of information, global reach, demographics, empowered customers, and dissolving industry walls.

1. PETER DRUCKER ARTICLE DISCUSSION QUESTIONS
1) What term is Drucker credited with coining?
2)What is Drucker's true legacy?
3) Where was Drucker born?
4) Where did Drucker earn his doctorate?
5) What corporation did Drucker spend 2 year studying in the 1940's?
6) What university's management school was named in Drucker's honor in 1987?
7) What view is central to Drucker's philosophy?
8) What was Drucker awarded in July 2002?
CHAPTER 1 DISCUSSION QUESTIONS
1) In your opinion, what organization is successful? In your opinion, what makes the organization successful?
2) In your own words (do not look in a dictionary), define "management.“
3) In your opinion, what has caused management to evolve in the US?
4) What is the Silent Revolution?
5) Summarize what happened during each of the 5 fronts of the Silent Revolution.
6) What are the 3 fastest-growing consumer purchases today?
7) Home Depot passed all its logistics issues off to what company?
8) What innovative group in northern California is trying to find a cure for multiple sclerosis?
9) In Druker's opinion, how did the Americans win the Gulf War in 1991? In his opinion, how will the war on
terrorism be won?
10) What does the author mean when she states, "in the 21st century, businesses exist in a Lego world?"

2. IN YOUR OPINION, WHAT ORGANIZATIONS ARE
SUCCESSFUL? WHY?
WHAT MAKES AN ORGANIZATION SUCCESSFUL?

3. SUCCESSFUL BUSINESS ATTRIBUTES

4. 1) CUSTOMER SATISFACTION

5. 2) CUSTOMER LOYALTY

6. 3) PROFITABILITY
TOP 3 MOST PROFITABLE COMPANIES IN 2011.
1: $30+ BILLION 2: $19+ BILLION 3: $19+ BILLION

7. 4) MARKET SHARE
WHAT COMPANY IS THE WHAT COMPANY IS THE
LEADER IN MARKET LEADER IN MARKET
SHARE IN THE FAST- SHARE IN THE BEER
FOOD INDUSTRY? INDUSTRY?
13% 25%

8. 5) BRAND RECOGNITION

9. 6) PERCEIVED VALUE

10. PETER DRUCKER
“THE GODFATHER OF MANAGEMENT”
MAIN BELIEFS ABOUT MANAGEMENT:
1) PEOPLE ARE AN ORGANIZATION’S MOST VALUABLE ASSET.
2) THERE IS NO BUSINESS WITHOUT A CUSTOMER.

11. MANAGEMENT
• “THE ACT OF GETTING PEOPLE TOGETHER TO ACCOMPLISH DESIRED GOALS.”
• IT IS ABOUT GETTING THE BEST OUT OF PEOPLE.
• IT IS A PROFESSION LIKE MEDICINE OR LAW.
6 FUNCTIONS OF MANAGEMENT:
• PLANNING: DECIDING WHAT NEEDS TO HAPPEN IN THE FUTURE & GENERATING
PLANS FOR ACTION.
• ORGANIZING: MAKING OPTIMUM USE OF THE RESOURCES REQUIRED TO ENABLE
THE SUCCESSFUL CARRYING OUT OF PLANS.
• STAFFING: JOB ANALYZING, RECRUITMENT, & HIRING INDIVIDUALS FOR
APPROPRIATE JOBS.
• LEADING: EXHIBITING SKILLS IN ORDER TO ENCOURAGE OTHERS TO PLAY AN
EFFECTIVE ROLE IN THE ORGANIZATION.
• CONTROLLING: MONITORING & CHECKING PROGRESS AGAINST PLANS, WHICH
MAY NEED MODIFICATION BASED ON FEEDBACK.
• MOTIVATING: THE PROCESS OF STIMULATING AN INDIVIDUAL TO TAKE ACTION &
ACCOMPLISH A DESIRED GOAL.

12. THE EVOLUTION OF ORGANIZATIONAL
MANAGEMENT.
-WOULD YOU BE MANAGING EMPLOYEES AT
D.G. YUENGLING & SON THE SAME TODAY AS
YOU WOULD HAVE IN 1829? WHY/WHY NOT?
-WHAT U.S. EVENTS HAVE CAUSED A
PARADIGM CHANGE IN MANAGEMENT?

13. 1) WARS
ARMY COMMAND MODEL: VERTICAL MANAGEMENT

14. 2) THE INDUSTRIAL REVOLUTION
ASSEMBLY LINE MODEL: HORIZONTAL MANAGEMENT

15. 3) TECHNOLOGY
AUTOMATION MODEL: HUMAN DISPLACEMENT

16. 4) KNOWLEDGE WORKERS
KNOWLEDGE-BASED MANAGEMENT MODEL: ACCESSING, INTERPRETING,
CONNECTING, & TRANSLATING KNOWLEDGE.

17. THE SILENT

18. IN THE LATE 1990’s, REVOLUTIONARY CHANGES CREATED
A NEW BUSINESS ENVIRONMENT FOR THE 21st CENTURY.
THIS REVOLUTION TOOK PLACE ON 5 FRONTS.
1) INFORMATION FLEW.
2) THE GEOGRAPHIC REACH OF COMPANIES & CUSTOMERS
EXPLODED.
3) BASIC DEMOGRAPHIC ASSUMPTIONS WERE UPENDED.
4) CUSTOMERS STEPPED UP & TOOK CONTROL.
5) DEFINING WALLS FELL.

19. 1) INFORMATION FLEW.
HOW DID THIS CONTRIBUTE TO THE
SILENT REVOLUTION?

20. THE INTERNET ALLOWS INFORMATION TO TRAVEL
FAST TO ANYONE, ANYWHERE.

21. PRE-REVOLUTION:
INFORMATION WAS POWER.

22. POST-REVOLUTION:
POWER COMES FROM BEING ABLE TO
TRANSLATE INFORMATION INTO ACTION.
“TWITTER REVOLUTIONS”

23. 2) THE GEOGRAPHIC REACH OF COMPANIES &
CUSTOMERS EXPLODED.
HOW DID THIS CONTRIBUTE TO THE REVOLUTION?

24. THE 21ST CENTURY WORLD IS A GLOBAL MARKETPLACE

25. BARRIERS TO ENTRY ARE KNOCKED DOWN AS BRANDS CAN
GAIN WIDESPREAD RECOGNITION IN SHORT PERIODS OF
TIME.
THE RESULT: BIG NAME BRANDS ARE NOT AS DOMINANT

27. 3) BASIC DEMOGRAPHIC ASSUMPTIONS WERE UPENDED.
HOW DID THIS CONTRIBUTE TO THE REVOLUTION?

28. LONGER LIFE SPANS, LATER RETIREMENTS, & MORE
WOMEN IN THE WORKPLACE HAVE CHANGED
CORPORATIONS RELATIONSHIPS WITH CUSTOMERS &
EMPLOYEES.
THE RESULT: CONVENIENCE MATTERS MORE NOW
THAN EVER BEFORE

29. THE THREE FASTEST GROWING CONSUMER PURCHASES
ACTIVITIES HEALTH CARE
EDUCATION
-HEALTH CARE & EDUCATION MAKE UP 1/3 OF AMERICA’S
GROSS NATIONAL PRODUCT (GNP).
-GNP: MEASURES THE OUTPUT (PRODUCTS & SERVICES)
GENERATED BY A COUNTRY’S ENTERPRISES--WHETHER
PHYSICALLY LOCATED DOMESTICALLY OR ABROAD.

30. 4) CUSTOMERS STEPPED UP AND TOOK
CONTROL.
HOW DID THIS CONTRIBUTE TO THE
REVOLUTION?

31. TODAY CUSTOMERS ARE NO LONGER PASSIVE RECIPIENTS
OF GOODS & SERVICES. THEY ARE ACTIVE PARTICIPANTS &
PART OF THE PROCESS STARTING WITH THE PRODUCT
INCEPTION.

32. 5) DEFINING WALLS FELL.
HOW DID THIS CONTRIBUTE TO THE
REVOLUTION?

33. COMPANIES LOOK TO OTHER INDUSTRIES TO FORM PARTNERSHIPS TO
DRAW ON EXPERTISE OUTSIDE THEIR CAPABILITIES.
THE RESULT: CUSTOMERS ARE SERVED MORE EFFICIENTLY

34. THE KNOWLEDGE WORKER
-SOMEONE WHO IS EMPLOYED DUE TO HIS/HER
KNOWLEDGE OF A SUBJECT MATTER RATHER THAN THEIR
ABILITY TO PERFORM MANUAL LABOR.
-LAWYERS, TEACHERS, MARKETERS, IT, ETC.
-YOU!!!
MANAGEMENT OF KNOWLEDGE WORKERS
-PRODUCE MORE WHEN EMPOWERED
-CAN WORK ON MULTIPLE PROJECTS AT ONCE
-KNOW HOW TO ALLOCATE THEIR TIME
-CAN MULTIPLY THEIR RESULTS THROUGH SOFT FACTORS
LIKE EMOTIONAL INTELLIGENCE & TRUST