Management Challenges for the 21st Century

Citation

Baruch, Y. and Lowson, B. (2002), "Management Challenges for the 21st Century", International Journal of Manpower, Vol. 23 No. 1, pp. 100-103. https://doi.org/10.1108/ijm.2002.23.1.100.2

It is always a pleasure to note the work of genius, and as Peter Drucker has proved, he is one of the most prominent management thinkers of this century. The author revisits some basic assumptions: for example, that there is one best way to manage and organize. Perhaps to no‐ones surprise he dismisses these and other traditional management axioms as no longer applicable and, while wisely refraining from trying to cover all issues, he admits there is still plenty to do for managers and academics studying the nature of organizations. His emphases upon external influences or issues such as birth‐rate and other demographic factors provides an all important and refreshing focus after so many books on technology, competitiveness or strategy, and reflects a needed change of mindset for organizations and individuals alike. Drucker presents and analyses a set of apparent assumptions, and his conclusions makes the reading worthwhile. In particular, he saves us from the flawed idea of management as being legally or politically defined, although good management must be aware of legal implications, and provides the core idea that management has to be operational, that is, results and performance orientated. The author considers a list of concepts that, he believes, may hold the answers to management in the next century (perhaps, readers could have been enlightened as to the reasons behind this choice).

The general agenda for management is set‐out in the first chapter. Although he often seems to be rushing into an open door, as many managers and scholars are well aware that management is not simply a question of one correct organizational structure, or one “perfect way to manage” people.

Similarly, in Chapter 2, he concludes that in this era of uncertainty and complexity, strategy, or perhaps the term planning may be more apt, can no longer be used to direct the organization. In the “global community” there are now too many discontinuities and rapid changes for conventional strategic approaches. Demography in a global context – from the organization to the national level of analysis, must be accounted for. By coupling a number of older people issues (perhaps too many) with younger ones (maybe too few) within developing countries, Drucker points to a dangerous trend, which people, organizations and nations, tend to overlook; possibly due to the rather uneasy implications. He suggests that organizations be advised by the endorsement of individuals (for example: invest only in what fits your strategy; keep to the “theory of your business”; consider what are your aims are; and, how any action you take will lead you to the conclusions you seek).

Leadership and change are the subjects of the next chapter. A provocative slogan: “one cannot manage change”. The speed of change does, he asserts, prevent the management of change. Change is unavoidable, but instead of reactive management, it should be proactively led. Change needs to be created using external “windows of opportunity” and a policy of innovation. Drucker proposes a new terminology; perhaps more than just a terminology – a new concept of “leading change” and focusing on the future rather than the past. Some useful and practical concepts are offered, although seemingly borrowed from models such as business process re‐engineering and the thinking of the “Boston Group”.

In Chapter 4 the author exhorts us to give greater consideration to information rather than its supporting technology in the new Information Revolution. Technology, in the form of the computer, has made a “revolutionary impact so far, where none of us then anticipated: on operations”. But, at the level of decision making, the computer and the technology arising from it have had little direct contribution. Further, we are still suffering a dearth of information in the one area of uncertainty having the most profound impact upon our organizations: the external environment. The author then provides us with a somewhat vague list of information needs for the new challenge of the future – “the creation of value and wealth”. However, with Drucker’s background in economics it is not surprising to find some of the best ideas in this chapter. For example, the suggested shift from cost‐led pricing to price‐led costing and advice upon how to use IT, at the upper echelons of the organization in particular.

A framework for knowledge‐workers productivity and how to manage this, compared to the classical style management, is offered in Chapter 5. Knowledge work and knowledge workers are put under scrutiny. While paying substantial tribute to Frederick Taylor and his contribution to the study of manual work, Drucker takes us on a journey examining the issues of knowledge work and a focus on productivity matters. The knowledge worker must concentrate upon quality and ensure control over his/her task – such workers are a future capital asset. Technologists are, apparently, the new breed of the workforce, those people who acquire knowledge rather than complete manual work. For the knowledge worker the way forward is via questions (whereas for manual work it is answers). Such individuals need to consider a number of issues. What is their task? What is quality? How to reach, maintain and improve quality? How to identify productivity determinants such as task clarity, autonomy, quality of output rather than quantity and the need to treat individuals as an organizational asset rather than cost. The chapter ends with questions about the future of knowledge workers, and the reader, most probably a knowledge worker her/himself (at least in part), is left to contemplate upon some stark considerations.

Perhaps the most insightful and provocative section of the book is retained for the end: recognizing the role individuals will play in the twenty‐first century. Using his sharp and incisive style, Drucker forces the readers to ask themselves difficult but revealing questions. Using some old and new dichotomies (readers versus listeners, for example), he provides a set of directive questions that may help people find what should they do, or more important, what they should not do, and how they should achieve this. This takes the form of checklist by which the individual should “learn to develop themselves” through direction (where do I belong), possible contribution, relationships, responsibilities and long‐term career or life goals. In our view, the chapter is certainly an important contribution for anyone considering or undertaking a career in counseling.

In fairness to potential purchasers of the book, we should also point‐out that the work does, in our opinion, have some shortcomings. First, from a writer and visionary of Peter Drucker’s standing, it was to a degree limited in its innovative contribution to the shape of management in the twenty‐first century. Readers will no doubt agree with the assertion that many of our formal organizations (both public and private sector) are witnessing unprecedented demands requiring a flexibility of response beyond their existing capabilities. Nevertheless, their most pressing pleas will entail providing a means of coping and the implications this has for individuals, organizations and management. Unfortunately, despite its novel approach, the book did not really offer substantive enlightenment in this arena. Second, we felt there was an excess of “best practice” or “best examples” and most are not referenced or even attributed. Finally, the use of his interesting, if not challenging style of prose (ALL CAPITALS to REINFORCE and EMPHASIZE, for example) does tend to annoy and distract the reader.

Overall, despite one or two irritations, we found the book interesting and stimulating and we would thoroughly recommended it as essential reading for managers, consultants and management scholars. The book certainly deserves its place on the bookshelf.