Classic Drucker Chapter 11 The New Society of Organizations

1. Classic Drucker Chapter 11The New Society of Organizations Course: ETLS 505 - Managerial Accounting & Performance Management   Professor: George G. Gleeson Student: Kou Song

2. Agenda • History and transition change • Knowledge • Innovation • Organization changes • Old vs. New • Organizational team • Plural • Conclusion

3. Transition Occurs • Society arranges itself throughout Western history • Fifty years later a new world exists. • People born in the new world cannot imagine the historical world that their grandparents lived. • Transform began with emergence in Japan as great economic power. • Drucker – chooses GI Bill of Rights to give American’s veterans money to attend college . • Signaled the shift to a knowledge society.

4. Knowledge • “Specialized knowledge by itself produces nothing. It can become productive only when it is integrated into a task”. (Drucker, 2006, p.140) • Transformation and specialization in an organization Knowledge Is Power

5. On-line education On-line shopping Cell Phone XboX Flat Screen TV Development homes Jet ski ATV Innovation Ebay Craigslist Facebook YouTube LinkedIn • Modern organization is a “destabilizer”. • It must be organize for constant change. • Innovation, Innovation, and Innovation • Knowledge will have to acquire new knowledge every four to five years or become obsolete. • Only science and technology creates new knowledge. • Example: • WWII – change in weapon • From railroad to automobile, the truck, and the airplane Ipad SMART Car Satellite Innovation Is The Future

6. Management and New Organization • Three systematic practices of dynamic knowledge. • 1. Continuous improvement known as Kaizen. • 2. Exploit its knowledge. • 3. Learn to innovate as a systematic process. • Organization need to focus on innovation. • Destabilize the community • Disorganize • Constantly upset

7. Modern Organization • Need to have social power • Power to make decision • Aggressiveness • Establish rules • Disciplines required to produce results • ETLS 504 Excellence in Operations (Becker, 2008)

8. “Management Revolution” • Allows us to see modern organization • Organization must have: • Single-minded to reduce confusion • Focused and common mission enables productivity • Mission to prevent credibility loss • Organization needs to become an organization of knowledge workers – the Mafia • Organization is always in competition for knowledgeable people

9. People Are the Greatest Assets? • Nineteenth-century • People need the company more than the company need them? True or False? • Attract people • Hold people • Recognize and reward people • Motive people • Relationship between knowledge workers and their organization. • People can work only because there exist an organization. • Modern society • The organization must prove knowledge employees opportunities. • Knowledgeable contribution will yield success. Answer = False -> Individuals Now Have Knowledge

10. Modern Organization As A Team • Only 3 kind of team • Tennis doubles • Game - acts sort of like a team and plays together with different goals. Small game and each member has their own personality, strengths, and skills. • European football or soccer • Each player has a fixed position, but moves together as whole team. • American baseball team • All members have fixed positions

11. Organization Team Continues… • American industry uses baseball style team for new product development. • Passing the ball • Japan uses reorganization new product development into a soccer team. • Each function has own responsibility • From beginning they all functions together • Then move with the task same as soccer, the team moves with the ball • Modern knowledge worker becomes a part of the organization to follow a model and work together (soccer team). All Members See Themselves As Executives

12. Pluralism • Definition - a social organization in which diversity of racial or religious or ethnic or cultural groups is tolerated . (WordNet, 2010) • New society with new pluralism. • Europe and Japan history of competing centers of power • United States remained pluralistic in religious and educational organization • Industrial Revolution - diversity single task strength • A pluralism of function instead of one political power

13. Chapter 11 - Conclusion • Significant organizational change • Think innovation and continuous improvement • Knowledge is power • People are selling themselves – GGG • New management style • Team productivity • Society and socialism

14. Questions

15. References • Drucker F. P. (2006). Classic Drucker. Boston: Havard Business School Publishing Corporation • * Class Lecture – ETLS 504 Excellence in Operations – Master of Science in Manufacturing Systems, University of St. Thomas, November 12, 2008. • WordNet. (2010). Pluralism Retrieved April 26, 2010, from WordNet Web Site: http://wordnetweb.princeton.edu/perl/webwn?s=pluralism