The Coming of the New Organization

The Coming of the New Organization
by Peter F. Drucker

The Coming of the New Organization
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Book Summary Information

Author: Peter F. Drucker
Edition: Digital
Audio: English (Published)
Format: Download: PDF
Published: 1988-01-01
ISBN: N/A
Number of pages: 12
Publisher: Harvard Business Review

Book Reviews of The Coming of the New Organization

Book Review: The shift to knowledge-based organizations
Summary: 5 Stars

Peter F. Drucker, born in 1918, is probably the 20st Century's greatest management thinker. He was Professor at New York University and currently teaches at the Graduate Management School of Claremont University, California. Drucker is the authors of numerous books and award-winning articles. This article was published in the January-February 1988 issue of the Harvard Business Review.

Drucker discusses the changes in the concept and structure of organizations from command-and-control organization to information-based organizations. The article discusses the transformation process - the availability of capital investment information changes the traditional budget exercise into an analysis of policy, the information-based organization requires more specialists overall than the command-and-control organization, and the information-based organization will have a flatter structure where the knowledge will be primarily at the bottom. Drucker also discusses the transformation of organizations, which is hard to decipher, but the author uses the hospital, the symphony orchestra, and the British administration in India to describe the various possibilities. Information-based organizations will also have different requirements: clear, simple, common objectives that translate into particular actions, and information responsibility to others and oneself. Finally, Drucker discusses the management problems facing information-based organizations: development of rewards, recognition, and career opportunities, creation of a unified vision, management structure for an organization of task forces, and the supply, preparation, and testing of top management people. According to Dr?cker, the job of building the information-based organization is the managerial challenge of the future.

Drucker has a reputation for predicting future trends and in this article he shows that skill again (do not forget that this article was written in 1988!). In simple terms he explains the challenges facing organizations turning from command-and-control into knowledge-based. For people that like the articles from Peter Drucker I recommend his (great value-for-money) book 'On the Profession of Management' (1998), which is a collection of 14 Harvard Business Review articles. The author uses simple US-English.

Summary of The Coming of the New Organization

Twenty years from now, the typical large business will have half the levels of management and one third the managers of its counterpart today. Work will be done by specialists brought together in task forces that cut across traditional departments. Coordination and control will depend largely on employees' willingness to discipline themselves. Behind these changes lies information technology. Information-based organizations pose their own management challenges: motivating and rewarding specialists; creating a vision to unify an organization of specialists; devising a management structure that works with task forces; and ensuring the supply, preparation, and testing of top management people.
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