Peter Drucker Said More Than You Thought
You and I were not the FIRST to encounter Peter Drucker:
My fiance acquried her recent Masters Degree from UCLB by relating various papers to Drucker; here, with her permission, I have reprinted her final paper on Drucker and her thoughts regarding his organiztional theories . . .
Mark
______________________________
OCST 5050:
Critical Analysis of Issues and Problems in Education and the Workplace
Andrea McCarron
December 3, 2005
Leadership
Compare and contrast the essential principals of Peter Drucker’s and Sun Tzu’s leadership theories and describe how these principals can be applied to achieve the following management objectives:
1. How does management create an environment to retain employees?
2. How can management create a positive mindset for older investigators so they are less negative and more engaged?
3. How can management develop strategies to increase staffing levels in both pathology and investigations?
Problem Statement
Like many organizations, the XYZ County Coroner’s Office has difficulty attracting, and retaining good employees, both in Pathology and in Investigation. Pathology relies upon interns who leave anytime and most certainly at semesters’ end. Investigations is no better condition. Currently staffed at 12 investigators- only one-third have 14 or more years of experience, the remainder have between one and five years. There are two pending retirements, and three of the newer investigators are transferring out. Recruiting and retaining good staff is possible and more importantly, necessary to the success and growth of the organization.
The Coroner’s office is not alone in this dilemma.
The Bureau of Labor Statistics projects 56 million jobs will open between 2002-2012 (Hecker, 2004), creating more opportunities for movement among existing staff, and much more competition. More and more organizations, both private and public are trying to recruit from essentially the same pool of applicants: college -educated “knowledge workers” as Peter Drucker, Management guru has labeled them (Drucker, 2001/2005). These are not the assembly line personalities, but bright, talented people whose biggest asset is their training and technical skills, which are as mobile as they are. There is a talent war unfolding, with 8 out of 10 unhappy employees ready to jump ship (Kaye & Jordan-Evans, 2005).
How does management create an environment to retain employees?
A lot of employees who leave their organizations do so for a couple of reasons: they are leaving the manager, not the job. In a 2000 study at the Saratoga Institute, data collected for 20 years and 60,000 exit interviews said this: ”…80% of turnover can be related to unsatisfactory relationships with the boss.” (Kaye & Jordan-Evans, 2005) and that 50% of work satisfaction is directly related to the relationship a worker has with their boss (Saratoga Institute, 1997). In addition, the top three things that were important to employees surveyed in 1946, 1986 and 1996 were “full appreciation of a job well done, feeling of being in on things, and interesting work” (Kaye & Jordan-Evans, 2005). What’s intriguing is that managers who were also surveyed in those years thought that job security and good wages were the top concerns of their workforce. How can this be? Sun Tzu said “As the voice cannot be heard in battle, gongs and drums are used. As troops cannot see each other clearly in battle, flags and banners are used” (Michaelson, 2001, pg. 66).
Translated, that means that effective internal communications is a great key to get messages received and understood. And those internal motivators having nothing to do with money are more important, such as gain sharing, glory sharing, fame sharing, and pats on the back. Sincere pats on the back. Because everyone can tell if it’s fake.
According to Drucker, this loss of interest is expected. Drucker says that most people “…deteriorate, get bored, lose all joy in their work, ‘retire on the job’ and become a burden to themselves and everyone around them” (Drucker, 1999, p. 188). Drucker’s solution is for these ‘knowledge workers’ to develop outside interests, such as directing or serving in a leadership role for a non-profit organization like their house of worship, or a pet interest.
But he does agree that employees, in order to become and stay engaged at work need a sense of ‘community’, and that can happen if management communicates effectively with its employees so they feel like they are “in” on things, feel appreciated for their work and still find their work interesting.
How can management create a positive mindset for older investigators so they are less negative and more engaged?
The Coroner’s office is not alone in dealing with employees that are not engaged.
According to a recent Gallup poll, ½ of the workforce is not engaged, and one in five workers is so negative that they poison the workplace. (Harter, 2001)
Drucker says that because knowledge workers are the new capitalists, that their knowledge is the key resource and a scarce one at that.
This means that knowledge can become obsolete, so continuing education will become not only a big growth area in society, but extremely important to the knowledge worker in order to keep their skills current (Drucker, 2001).
Further, he felt that these older workers are pretty valuable. Human resource managers “…assume the most desirable and least costly employees are young ones” (Drucker, 2001).
The trend in America is to push early retirements in order to make room for “…younger people who are believed to cost less or have more up-to-date skills.” (Drucker, 2001)
Unfortunately, as Drucker points out, after two years the younger employee recruits wage cost is higher than before the older workers were let go.
That means that age is not a determining factor in productivity.
Plus, demographics are changing.
“1/2 of the ‘76 Baby Boomers will be eligible to retire within the next 10 years. Replacements are going to have to come from a smaller generation as experts estimate that the number of workers aged 25-54 will shrink dramatically” (Kaye & Jordan-Evans, 2005).
So—it behooves management to re-engage these older workers. Drucker points out again, that not only do knowledge workers need outside interests to feel a part of something, but that management needs to find a way to form a continuing relationship with these older workers, into their retirement phase. (Drucker, 1999)
Sun Tzu, a great strategist and tactician, taught that there should be a “variation of tactics” on the part of management.
He said “there are some roads that should not be followed, some troops that must not be attacked, some cities which must not be assaulted, some ground which must not be contested, and some commands of the sovereign which must not be obeyed” (Michaelson, 2001).
Sun Tzu also pressed that maximum effort does not always yield victory.
Tactics and strategy are more important than force; generals should “strengthen the defense”.
In today’s language, sometimes that means not maintaining the status quo and thinking outside the box.
For example, in the mid-1900’s General Jack Pershing’s opinion of the arrival of the airplanes meant that now they had a better way to get oats to their horses (Stewart, 1995).
Sun Tzu’s Art of War discusses management’s role to “obey the rules ofleadership” (Michaelson, 2001).
He felt that people (troops) needed to have whatever authority necessary to achieve their objectives—except for specifically forbidden things; that freedom to do their job is important to the troops; that information sharing was a two-way street, and that too much information reporting from the troops slowed their forward progress.
Sun Tzu felt that relationships between people and information systems added stability to an organization, and that long standing relationships promoted mutual trust—so much so that new personnel were to be integrated into these relationship patterns.
He felt that people accept and learn responsibility when they have authority delegated to them, and that this helps them make better decisions in utilizing a company’s available resources to meet the organization’s objectives (Michaelson, 2001).
Managers need to understand that sometimes plans break down and constant regrouping after these breakdowns is not helpful ---the troops need to keep marching on to their objective.
In much simpler terms, General Tzu’s lessons for leading troops are as relevant today as they were in 500 B.C.
Treat people as adults.
Workplace policies and procedures should only be developed to organize work effectively, and not create rules for all employees when just a few stray from the path; minimize the number of rules that direct the behavior of adult people at work—help employees feel like members of the “in” crowd, because everyone wants to have current information at the same time.
Provide all employees the same opportunities for growth and professional development: an organization’s most visible commitment to employees are promotion and training opportunities and lateral and cross-training moves that might develop the next ‘superstar”.
Remember, these are knowledge workers whose stock in trade is knowledge.
Preferential treatment is the biggest killer of morale and greatest fuel for negativity.
“If the leadership considers the popular to be worthy and the unpopular to be unworthy, then those with many partisans get ahead, while those with few partisans fall behind. If so, then crooks will be everywhere, obscuring the worthy; loyal administrators will be terminated for no wrongdoing, while treacherous bureaucrats will assume rank by means of false representation” (Sun Tzu II, 1996).
How can management develop strategies to increase staffing levels in both pathology and investigations?
Both Peter Drucker and Sun Tzu agree on the answer to this dilemma:
If an organization and its management can discipline themselves to following the guidance provided in the answers to the first two questions, then the solution to this is much easier.
Recognize that knowledge workers do not immediately align themselves with the organization so much as with their profession.
Understand that they will all want to be successful in their profession.
Barring the feeling of success that could have been provided by their employer, they will need to seek recognition and validation elsewhere, like non-profit organizations, or their churches, or other places where they have an opportunity to shine and have some small measure of control or influence on their job.
Drucker goes further, to say that organizations need to convert their retirees into long-time “inside-outsiders”.
This way they can preserve their skills and knowledge for the enterprise and yet give them the flexibility and freedom they expect and can afford (Drucker, 2001).
But management can’t expect to bring these retirees (i.e.; retired annuitants) back into the fold if they never felt part of the fold. And all employees are ambassadors of the company.
Organizations can’t expect to recruit new personnel if existing personnel don’t sing the praises of working there.
Believe it or not, while some organizations have a “probationary” period for new employees, ALL organizations are on permanent probation with their employees.
Prospective employees interview existing staff all the time, by phone, internet, or over dinner and drinks.
The best way to bring more staff in is to 1: keep the staff you have, 2: keep the staff you have engaged, and 3: Create the kind of work environment where people want to work.
There are fewer job applicants available for more employers needing capable “knowledge workers”.
That means that no matter how good your advertising is, no matter how many job fairs you sponsor or attend, no matter how many people you can attract to your worksite—the key is creating the kind of place where talented people want to stay.
References:
Drucker, P. (2001, November 1). The new workforce [Electronic version]. The Economist, Library Survey, 1-7.
Drucker, P. (2001, November 1). The new workforce [Electronic version]. The Economist, Library Survey, 1-7.
Sun Tzu II. (1996). The lost art of war, Sun Tzu II (T. Cleary, Trans.). New York: HarperCollins Publishers.
Stewart, R. L. (1995, January). New technology: another way to get oats to the horses. Army, 23-27.
Drucker, P. (2001, November 1). The new workforce [Electronic version]. The Economist, Library Survey, 1-7.
Saratoga Institute. (1997). Study of the emerging workforce. Santa Clara, CA: Interim Services, Inc.
Kaye, B., & Jordan-Evans, S. (2005). Love 'em or lose 'em - getting good people to stay. San Francisco: Berrett-Koehler Publishers, Inc.
Drucker, P. (1999). Management challenges for the 21st century. New York: HarperBusiness Publishers.
Drucker, P. (2005). The essential Drucker. New York: HarperCollins Publisher. (Original work published 2001)
Harter, J. (2001). Taking feedback to the bottom line. Retrieved November 19, 2005, from Gallup Management Journal Web site: http://gallupjournal.com/CA/ee/20020603
Hecker, D. (2004). Occupational employment projections to 2012. Monthly Labor Review, 127(2). Retrieved November 19, 2005, from U.S. Bureau of Labor Statistics Web site: http://www.bls.gov/opub/mlr/2004/02/art5exec.htm
Michaelson, G. (2001). Sun Tzu: the art of war for managers. Avon, MA: Adams Media.
Michaelson, G., & Michaelson, S. (2003). Sun Tzu for success. Avon, MA: Adams Media.
My fiance acquried her recent Masters Degree from UCLB by relating various papers to Drucker; here, with her permission, I have reprinted her final paper on Drucker and her thoughts regarding his organiztional theories . . .
Mark
______________________________
OCST 5050:
Critical Analysis of Issues and Problems in Education and the Workplace
Andrea McCarron
December 3, 2005
Leadership
Compare and contrast the essential principals of Peter Drucker’s and Sun Tzu’s leadership theories and describe how these principals can be applied to achieve the following management objectives:
1. How does management create an environment to retain employees?
2. How can management create a positive mindset for older investigators so they are less negative and more engaged?
3. How can management develop strategies to increase staffing levels in both pathology and investigations?
Problem Statement
Like many organizations, the XYZ County Coroner’s Office has difficulty attracting, and retaining good employees, both in Pathology and in Investigation. Pathology relies upon interns who leave anytime and most certainly at semesters’ end. Investigations is no better condition. Currently staffed at 12 investigators- only one-third have 14 or more years of experience, the remainder have between one and five years. There are two pending retirements, and three of the newer investigators are transferring out. Recruiting and retaining good staff is possible and more importantly, necessary to the success and growth of the organization.
The Coroner’s office is not alone in this dilemma.
The Bureau of Labor Statistics projects 56 million jobs will open between 2002-2012 (Hecker, 2004), creating more opportunities for movement among existing staff, and much more competition. More and more organizations, both private and public are trying to recruit from essentially the same pool of applicants: college -educated “knowledge workers” as Peter Drucker, Management guru has labeled them (Drucker, 2001/2005). These are not the assembly line personalities, but bright, talented people whose biggest asset is their training and technical skills, which are as mobile as they are. There is a talent war unfolding, with 8 out of 10 unhappy employees ready to jump ship (Kaye & Jordan-Evans, 2005).
How does management create an environment to retain employees?
A lot of employees who leave their organizations do so for a couple of reasons: they are leaving the manager, not the job. In a 2000 study at the Saratoga Institute, data collected for 20 years and 60,000 exit interviews said this: ”…80% of turnover can be related to unsatisfactory relationships with the boss.” (Kaye & Jordan-Evans, 2005) and that 50% of work satisfaction is directly related to the relationship a worker has with their boss (Saratoga Institute, 1997). In addition, the top three things that were important to employees surveyed in 1946, 1986 and 1996 were “full appreciation of a job well done, feeling of being in on things, and interesting work” (Kaye & Jordan-Evans, 2005). What’s intriguing is that managers who were also surveyed in those years thought that job security and good wages were the top concerns of their workforce. How can this be? Sun Tzu said “As the voice cannot be heard in battle, gongs and drums are used. As troops cannot see each other clearly in battle, flags and banners are used” (Michaelson, 2001, pg. 66).
Translated, that means that effective internal communications is a great key to get messages received and understood. And those internal motivators having nothing to do with money are more important, such as gain sharing, glory sharing, fame sharing, and pats on the back. Sincere pats on the back. Because everyone can tell if it’s fake.
According to Drucker, this loss of interest is expected. Drucker says that most people “…deteriorate, get bored, lose all joy in their work, ‘retire on the job’ and become a burden to themselves and everyone around them” (Drucker, 1999, p. 188). Drucker’s solution is for these ‘knowledge workers’ to develop outside interests, such as directing or serving in a leadership role for a non-profit organization like their house of worship, or a pet interest.
But he does agree that employees, in order to become and stay engaged at work need a sense of ‘community’, and that can happen if management communicates effectively with its employees so they feel like they are “in” on things, feel appreciated for their work and still find their work interesting.
How can management create a positive mindset for older investigators so they are less negative and more engaged?
The Coroner’s office is not alone in dealing with employees that are not engaged.
According to a recent Gallup poll, ½ of the workforce is not engaged, and one in five workers is so negative that they poison the workplace. (Harter, 2001)
Drucker says that because knowledge workers are the new capitalists, that their knowledge is the key resource and a scarce one at that.
This means that knowledge can become obsolete, so continuing education will become not only a big growth area in society, but extremely important to the knowledge worker in order to keep their skills current (Drucker, 2001).
Further, he felt that these older workers are pretty valuable. Human resource managers “…assume the most desirable and least costly employees are young ones” (Drucker, 2001).
The trend in America is to push early retirements in order to make room for “…younger people who are believed to cost less or have more up-to-date skills.” (Drucker, 2001)
Unfortunately, as Drucker points out, after two years the younger employee recruits wage cost is higher than before the older workers were let go.
That means that age is not a determining factor in productivity.
Plus, demographics are changing.
“1/2 of the ‘76 Baby Boomers will be eligible to retire within the next 10 years. Replacements are going to have to come from a smaller generation as experts estimate that the number of workers aged 25-54 will shrink dramatically” (Kaye & Jordan-Evans, 2005).
So—it behooves management to re-engage these older workers. Drucker points out again, that not only do knowledge workers need outside interests to feel a part of something, but that management needs to find a way to form a continuing relationship with these older workers, into their retirement phase. (Drucker, 1999)
Sun Tzu, a great strategist and tactician, taught that there should be a “variation of tactics” on the part of management.
He said “there are some roads that should not be followed, some troops that must not be attacked, some cities which must not be assaulted, some ground which must not be contested, and some commands of the sovereign which must not be obeyed” (Michaelson, 2001).
Sun Tzu also pressed that maximum effort does not always yield victory.
Tactics and strategy are more important than force; generals should “strengthen the defense”.
In today’s language, sometimes that means not maintaining the status quo and thinking outside the box.
For example, in the mid-1900’s General Jack Pershing’s opinion of the arrival of the airplanes meant that now they had a better way to get oats to their horses (Stewart, 1995).
Sun Tzu’s Art of War discusses management’s role to “obey the rules ofleadership” (Michaelson, 2001).
He felt that people (troops) needed to have whatever authority necessary to achieve their objectives—except for specifically forbidden things; that freedom to do their job is important to the troops; that information sharing was a two-way street, and that too much information reporting from the troops slowed their forward progress.
Sun Tzu felt that relationships between people and information systems added stability to an organization, and that long standing relationships promoted mutual trust—so much so that new personnel were to be integrated into these relationship patterns.
He felt that people accept and learn responsibility when they have authority delegated to them, and that this helps them make better decisions in utilizing a company’s available resources to meet the organization’s objectives (Michaelson, 2001).
Managers need to understand that sometimes plans break down and constant regrouping after these breakdowns is not helpful ---the troops need to keep marching on to their objective.
In much simpler terms, General Tzu’s lessons for leading troops are as relevant today as they were in 500 B.C.
Treat people as adults.
Workplace policies and procedures should only be developed to organize work effectively, and not create rules for all employees when just a few stray from the path; minimize the number of rules that direct the behavior of adult people at work—help employees feel like members of the “in” crowd, because everyone wants to have current information at the same time.
Provide all employees the same opportunities for growth and professional development: an organization’s most visible commitment to employees are promotion and training opportunities and lateral and cross-training moves that might develop the next ‘superstar”.
Remember, these are knowledge workers whose stock in trade is knowledge.
Preferential treatment is the biggest killer of morale and greatest fuel for negativity.
“If the leadership considers the popular to be worthy and the unpopular to be unworthy, then those with many partisans get ahead, while those with few partisans fall behind. If so, then crooks will be everywhere, obscuring the worthy; loyal administrators will be terminated for no wrongdoing, while treacherous bureaucrats will assume rank by means of false representation” (Sun Tzu II, 1996).
How can management develop strategies to increase staffing levels in both pathology and investigations?
Both Peter Drucker and Sun Tzu agree on the answer to this dilemma:
If an organization and its management can discipline themselves to following the guidance provided in the answers to the first two questions, then the solution to this is much easier.
Recognize that knowledge workers do not immediately align themselves with the organization so much as with their profession.
Understand that they will all want to be successful in their profession.
Barring the feeling of success that could have been provided by their employer, they will need to seek recognition and validation elsewhere, like non-profit organizations, or their churches, or other places where they have an opportunity to shine and have some small measure of control or influence on their job.
Drucker goes further, to say that organizations need to convert their retirees into long-time “inside-outsiders”.
This way they can preserve their skills and knowledge for the enterprise and yet give them the flexibility and freedom they expect and can afford (Drucker, 2001).
But management can’t expect to bring these retirees (i.e.; retired annuitants) back into the fold if they never felt part of the fold. And all employees are ambassadors of the company.
Organizations can’t expect to recruit new personnel if existing personnel don’t sing the praises of working there.
Believe it or not, while some organizations have a “probationary” period for new employees, ALL organizations are on permanent probation with their employees.
Prospective employees interview existing staff all the time, by phone, internet, or over dinner and drinks.
The best way to bring more staff in is to 1: keep the staff you have, 2: keep the staff you have engaged, and 3: Create the kind of work environment where people want to work.
There are fewer job applicants available for more employers needing capable “knowledge workers”.
That means that no matter how good your advertising is, no matter how many job fairs you sponsor or attend, no matter how many people you can attract to your worksite—the key is creating the kind of place where talented people want to stay.
References:
Drucker, P. (2001, November 1). The new workforce [Electronic version]. The Economist, Library Survey, 1-7.
Drucker, P. (2001, November 1). The new workforce [Electronic version]. The Economist, Library Survey, 1-7.
Sun Tzu II. (1996). The lost art of war, Sun Tzu II (T. Cleary, Trans.). New York: HarperCollins Publishers.
Stewart, R. L. (1995, January). New technology: another way to get oats to the horses. Army, 23-27.
Drucker, P. (2001, November 1). The new workforce [Electronic version]. The Economist, Library Survey, 1-7.
Saratoga Institute. (1997). Study of the emerging workforce. Santa Clara, CA: Interim Services, Inc.
Kaye, B., & Jordan-Evans, S. (2005). Love 'em or lose 'em - getting good people to stay. San Francisco: Berrett-Koehler Publishers, Inc.
Drucker, P. (1999). Management challenges for the 21st century. New York: HarperBusiness Publishers.
Drucker, P. (2005). The essential Drucker. New York: HarperCollins Publisher. (Original work published 2001)
Harter, J. (2001). Taking feedback to the bottom line. Retrieved November 19, 2005, from Gallup Management Journal Web site: http://gallupjournal.com/CA/ee/20020603
Hecker, D. (2004). Occupational employment projections to 2012. Monthly Labor Review, 127(2). Retrieved November 19, 2005, from U.S. Bureau of Labor Statistics Web site: http://www.bls.gov/opub/mlr/2004/02/art5exec.htm
Michaelson, G. (2001). Sun Tzu: the art of war for managers. Avon, MA: Adams Media.
Michaelson, G., & Michaelson, S. (2003). Sun Tzu for success. Avon, MA: Adams Media.
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