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1) Politicians in developed countries are increasingly becoming centrist, and function-oriented. Most political debate is focused on the means, not the goal. Chrisma is not needed.
2) The concept of government as the savior of society is dead. Instead, it will offer specific remedies for specific ills. The government cannot run the economy, but just help create the right climate for business, trade, and activity.
3) Society is segmenting into knowledge workers and non-knowledge workers (laborers). This concept runs through all his books.
4) Russia will segment and collapse. This will create imbalance as the majority of Russians are actually Asian and Muslim.
5) The military will continue to be a drag on the economy. Weapons will become increasingly counterproductive as the enemy unknown and elusive. Terrorism will rise, and the military will suffer an identity crisis.
6) The third sector (after the knowledge workers and manual laborers) will be non-profit. This serves a large function in society and provides many of the services once expected from the government. Volunteer hours totalling $150 billion (in imaginary wages).
7) Interest groups will continue to gain political influence. Drucker calls it the "tyranny of the small majority". These single cause minorities will be very vocal and usually against (rather than for) something.
8) In the transnational economy, cheap direct labor will no longer the way to competitiveness (since the portion of direct labor for goods is declining)
9) George Stigler, University of Chicago economist and Nobel prize winner, showed that NOT ONE of the regulations through which the US government tried to control, direct, or regulate the economy has worked. (pg 166)
10) Information based organizations should most resemble an orchestra. Each participant is a specialist and an individual contributor. They have separate responsibility and are expected to handle that work without direct supervision. Things get done, but only if the common objectives (the score) is clear and simple.
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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 Drücker, 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.
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This package makes a wonderful gift for a student, a graduate, someone taking a new job, or someone hungry for renewal. The paperback editions of the books are attractive and easy to carry, and the boxed set is handsome.
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Drucker, in his unlikely autobiography, introduced some interesting and unforgettable characters at his times, entertains, educates and empowers us to think there are always equally interesting and unforgettable souls at our times, and probably at all times.
An enjoyable experience to have read this book, and more enjoyable experience when we can learn from him the passion and depth in appreciate people around us.
highly recommended.
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