How to Manage a Company?

Anyone who has passed a management course is familiar with Peter Drucker and his books on this subject. He coined the term “knowledge worker” and later in his life considered knowledge work productivity to be the next frontier of management.

But his most important contribution was promoting decentralization and simplification. Drucker discounted the command and control model and asserted that companies work best when they are decentralized. According to Drucker, corporations tend to produce too many products, hire employees they don’t need, and expand into economic sectors that they should avoid.

He considered companies as human organization rather than just as source of economic data. But he also insisted that all human organizations need clear objectives and hard measurements to keep them efficient. Basically, everyone needs to be accountable! And if you go higher in the chain of commands, you are more accountable; because you have more authority. He was always against “super bosses”. That is why he liked to say that people used the word guru because the word charlatan was so hard to spell!