January 2005 (Re-edited December 2011) i DRUCKERS MbO His primary sources and contributions tomanagement in his book The Practice of Management, following the development of his ideas inhis first four books PETER STARBUCK lulu.com January 2005 (Re-edited December 2011) ii Research For The Award Of A Doctor of Philosophy Degree To The Open University Business School The Open University Walton Hall MILTON KEYNES Buckinghamshire MK7 6AA OU Ref: R 520 1357 THIS IS VOLUME 2 IN A SERIES OF 3 Peter Starbuck FRICS, FCIOB, FCMI, PhD OSWESTRY Shropshire E-mail: peterstarbuck@ic24.net Supervisors:Emeritus Professor of International Management Derek S Pugh ACSS Emeritus Professor Andrew W J Thomson OBE (For Part) Examiners: Internal: Dr Geoff R Mallory External: Professor Ken Starkey, Professor of Management and Organisational Learning Nottingham University Business School Published by Peter Starbuck Copyright Dr Peter Starbuck 2012 Peter Starbuck asserts the moral right to be identified as the author of this work ISBN No: 978-1-291-43465-1 Printed by lulu.com January 2005 (Re-edited December 2011) iii EXPLANATORY NOTE This publication is part of ongoing research into Druckers work and that of his identified influence.It is the second of three documents, Volume II of a trilogy, with the third volume planned for publication later this year 2013. Since its preparation in January 2005 further information has emerged regarding Drucker together with extensive research.Consequential is that some further observations, revisions and additions need to be acknowledged. When Drucker was interviewed as (Pekar Jnr December 1992:17) he is reported to have said that he attended the first Montessori school in Austria.Subsequent evidence is that he attended a progressive school which was not Montessori.My revised conclusion is that Drucker was indicating that he attended a progressive school in a manner which would be meaningful to his American audiences.For a further explanation see: Volume No: 1 in Later Reflections in Peter F Drucker His Primary Sources and Contribution to Management in his book The Practice of Management Following the Evolution Of His Ideas In His First Four Books (Starbuck January 2005) Introduction (April 2011). Referring to Appendix 5 Philosophical Influences That Drucker Considered In Evolving His Managerial Ideas (VolumeNo: 1) further research has been added.Readers are reminded that the analysis of Druckers relationship with his influences covers his ideas which are evident in his first five books.Other scholars will have different opinions This is why this volume has been published to extend the international debate on Druckers work. January 2005 (Re-edited December 2011) iv Also Acknowledged is that Druckers opinion of his influences changed with time. Volume No: 3 is a repeat of Chapters 1 to 9 together with a chapter on Hoskin Kanri together with an extension to the Appendices including Profiles of Druckers Influences and a Collection of his Citations. January 2005 (Re-edited December 2011) v ABSTRACT The object of this thesis is to establish what unique contribution Drucker has made to the theory and practice of management.It examines Druckers environment and development from his birth in Vienna, in 1909, up to and including the publication of his seminal management book The Practice of Management in 1954.It shows how Drucker evolved his ideas for the new society that was essential to replace the European totalitarian model.It examines the influences that helped Drucker develop his management idea that was based on a Christian Protestant society, which would provide man with freedom, status and function.His experiences and development are tracked as he moved from Austria to work and also study at universities in Germany, before leaving for England after registering his opposition to Adolf Hitler and the Nazis in 1933.His stay in England until 1937 is recorded before his permanent migration to America, where his interest in management ideas were propagated and developed. This thesis is part of a much larger research project, which has examined the backgrounds and ideas of his influences and the reaction of his biographers and reviewers of his work.The findings of this research have been summarised.This thesis also seeks to determine whether Drucker can meet his own claim in The Practice of Management, that by integrating the functions of management, he made a discipline of it! A stand-alone timeline Appendix 1 - Peter Ferdinand Drucker Timeline for the Period 1909-1954 has been produced to highlight the consequential events in his life, and to record the management ideas that he identified. January 2005 (Re-edited December 2011) viThis document was submitted for consideration of the examiners for the award of a PhD.It was deferred as they required a Thesis on Druckers formative influences.Noted is that this document has been re-edited in September 2011.The text has had minor editing.Appendices 2, 3, 4 and 5 have been updated. January 2005 (Re-edited December 2011) viiCONTENTS Explanatory Notei Abstract iii Contents iv Acknowledgements xi Abbreviations Usedxiv Chapter 1The Thesis and Its Methodology 1 Introduction1 Objectives2 Why a Further Study of Peter F Drucker?3 What Am I Going to Achieve?3 The Methodology4 Primary Material - The Core Books7 Support Material9 Problems of Archival Research9 Advice on Archival and Literature Research13 January 2005 (Re-edited December 2011) viiiChapter 2Druckers Biography16 Austria & Germany 1909-1933 The Formative Years16 England 1933-1937 The Interim Period21 America 1937- Onwards Developing and Contributing Period22 Reflecting on Management 1946-195029 Taking a Central Position 1950-195330 Chapter 3The Evolution of Druckers Ideas in his First Four Books 32 The End of Economic Man: The World of Despair32 The Future of Industrial Man: Management Ideas Germinating 1943 38 Concept of the Corporation: Learning about Management in Practice 1944 - 194648 Reflecting on Management 1946 - 195063 The New Society: 1.Society Previous Ideas64 Refinements of Previous Ideas64 2.The Industrial Enterprise Previous Ideas 68 Refinements of Previous Ideas68 New Ideas 77 January 2005 (Re-edited December 2011) ixChapter 4The Practice of Management 82 Introduction82 Purpose85 Method86 1.Previous Influences and their ideas that are carried forward87 2.Friends in American Management (1954: Preface viii) 97 3.References within the text 98 4.Case Studies 99 5.Selected Bibliography for further reading100 6.Post Practice influence101 Chapter 5Druckers Seven Key Ideas 102 Druckers Seven Key Ideas103 1.Management Will Be - Management by Objectives and Self Control (MbO) 105 2.Decentralisation as the Preferred Structure 113 3.The Integration of Productivity by Automation and Profit 115 (i)Automation 119 (ii)Profit123 4.Managers Must Measure 127 5.The Entrepreneurial Function is: The Purpose of a Business which is to create a customer136 January 2005 (Re-edited December 2011) x(i)Marketing136 (ii)Innovation139 6.People are Central to the Organisation 141 (i)Introduction 141 (ii)What does the Enterprise require? 142 (iii)The Workers Attitude 144 (iv)The Status Quo 145 (v)The Way Ahead Supported by Case Studies 149 7.The Managers Job is Total Integration 156 (i)The Managers Tasks158 (ii)Managing a Business Supported by Case Studies159 (a)The Need for Teamwork160 (b)What Business Are We In?161 (c)Delegation by Span of Control andSpan of Managerial Responsibility165 (iii)Managing Managers 168 (iv)Managing The Worker and Work 179 (v)Time184 The Impact of what was the Contribution of Druckers Seven Key Ideas 185 1.MbO 185 2.Decentralisation 185 3.Integration by Productivity, Automation and Profit 186 4.Managers Must Measure 186 5.Entrepreneurial Function 187 6.People are Central to the Organisation 187 7.The Managers Job is Total Integration 188 January 2005 (Re-edited December 2011) xiThe Conclusion of Practice189 Chapter 6The Philosophical Influences that were available forDrucker to use 191 Introduction 191 1.Rejected Influences192 2.Transitional Influences193 3.Ambivalent Influences193 4.Accepted Influences195 (i)Ethics195 (ii)Philosophy 196 (iii)Political, Social and Managerial Society197 (iv)Management Society198 (v)Economists and Measurement200 (vi)Management Ideas201 (vii)People People are Central to Druckers Ideas203 5.Consequential Corporate Influences204 Chapter 7Reactions to Druckers Work 207 Introduction207 1.Book Reviews of Practice208 2.The Work of his Biographers 209 (i)Introduction209 (ii)Biographies about Peter F Drucker209 January 2005 (Re-edited December 2011) xii(iii)Chapters or Significant Entries on Peter F Drucker210 3.Treatment of Drucker by Academics211 Introduction211 (i)Theses on Druckers Work211 (ii)Academic Reviews213 Economic Man213 Future 213 Concept214 Society216 Practice220 Summary223 4.Reference to Drucker in other writings225 5.Conclusions to the Reactions of Druckers Work227 Chapter 8Druckers Contribution to Management as a Practice229 1.As a Synthesiser? 229 2.As an Originator? 233 3.Did he make a Discipline of Management? 238 Conclusion247 January 2005 (Re-edited December 2011) xiiiChapter 9Evaluation of this Thesis250 1.Personal Reflections on Druckers Work250 2.What is My Contribution?258 3.What is My Thesis?260 4.The Arguments and Evidence that Support the Thesis263 Appendices 1.Peter Ferdinand Drucker Timeline for the Period 1909-1954 2.Bibliography of Peter Ferdinand Druckers Primary Literature and of his Significant Biographers (in English) 3.Thesis Bibliography 4.Publications by Peter Starbuck 5.Philosophical Influences that Drucker Considered in Evolving his Management Ideas 6.About the Author January 2005 (Re-edited December 2011) xiv ACKNOWLEDGEMENTS Drucker wrote that for management to succeed it always had to be a team effort.This thesis would not have been possible without the assistance of others whom I now readily acknowledge. The credits given in Volume I have not been repeated.

Of those who have helped with the typing, Joan Irwin started with Margarette Pugh and Sue Barton.Antony and Samantha gave a burst of effort during the concluding stages, but Sue Bell has carried the burden since my research became formalised during this thesis and has worked patiently through many re-drafts. Encouragement and assistance during my earlier preparation came from John Roberts, Stephen Jury, Professor Gerald Bennett, Kate Gilbert and Professor Les Worrall of Wolverhampton University. Stanley Harris and Bob Norton of the Chartered Management Institute introduced me to Edward Brech, who made contact with the Open University which started my thesis process.Rosemary Geller and Professor David Coleman acted as my referees, the latter giving his expert views on demographics.Dr Bill Cooke of UMIST gave important information on archival research literature. Valuable advice and time were given by the staff of various libraries, particularly Carole Hunter-Brown and Tim Wales of the Open University, Milton Keynes.In addition to the American Libraries, which are later noted, particular mention must be made of Chicago University Library, New York Public Library, New York University the New York Metropolitan Library and the Library of Congress, Washington.Important British libraries January 2005 (Re-edited December 2011) xvand staff were The British Library - in particular Denis Ready, Graham Cranfield and Judith Harrison.The Newspaper Library and those of London School of Economics, Cambridge University - in particular Barry Eden, Wolverhampton University, Manchester City, Birmingham City and The Chartered Managers Institute.Special mention and thanks must be recorded to the Shropshire County Headquarters Library, my Local Branch Library, and in particular to John Oxley and his colleagues at the Reference Section, and Sue Owen at the Shirehall. Sally Halper of the British Library must be acknowledged for her help in getting Volume I published online, as must Piers Cai n of the CMI for the Drudker London Project. My thanks also goes to The American Embassy Library - Paul Evans in particular, and also to the embassy libraries of France, Germany and Sweden (International Cultural Section).Also included is the Bergen Art Gallery, Norway. Others who have given general help and assistance are: Lord John Biffen, Reverend David North, Reverend Barry Kinsman, Felix Martin, Jeremy Beadle, Carol Kennedy, Christine Hawksworth, Peter Day of the BBC, Dr Roger Hargroves of Ricoh, Dr Gunther Krase, Alan Johnson, Elwyn Jones, Allen Edwards, The Kaizen Institute and Paul Roberts of Warwick University, The Juran Institute and Professor Bill Starbuck of New York University.Others are listed in Chapter 1 including the staff of several embassies and their various departments. Special mention must be made of Annette Parks, who has helped my American research together with Otto Doering III, who provided personal details of his grandfather.While in Britain, Jonathan Hall and Mike Robinson have burdened themselves with proof reading, which has moved my grammar from the primitive to at least the acceptable, and Brian Jones, who has been a permanent help in many ways. January 2005 (Re-edited December 2011) xvi Peter Drucker gave patient encouragement many years back when my nave research was of a personal nature. Pillars of help that have always encouraged and helped are Richard Donkin, Morgen Witzel and again Dr Edward Brech, who was my sponsor and has been my honorary coach.Of the establishment of the OU, Dr Geoff Mallory and his helpful staff have always been patient, encouraging and friendly while Professor Andrew Thomson for part of my supervision and Professor Derek Pugh for all of my progress set the standard initially.But it is to the ever-available sage, Derek Pugh, whose patience; prompting and advice have made this thesis approach a cohesive whole, while his wife Natalie has always been a patient and welcoming link.To the many others who may have given me assistance and to whom I have inadvertently omitted to give credit my apologies. I hope I have not too greatly bored my family and friends, especially my wife, Heather, (who between times told friends that she often believed she was living with Peter Drucker), but still found time to help as a utility player. Whatever assistance I have received, the interpretation that I have put on the information and the conclusions I have reached are mine, for which I accept responsibility. January 2005 (Re-edited December 2011) xviiABBREVIATIONS USED American Telephone and Telegraph CompanyAT&T Chief Executive OfficerCEO Chrysler Motors CorporationChrysler Crown Zellerbach CorporationCrown Zellerbach Federal DecentralisationDecentralisation Henry FordFord General Electrical Company (of America)GE General Motors CorporationGM The Christian GodGod Harvard Business ReviewHBR Harvard Business SchoolHBS International Business Machines CorporationIBM Labour UnionsUnions Management by Objectives and Self-ControlMbO Montgomery Ward & CompanyWards Return on InvestmentROI Sears Roebuck & CompanySears Tennessee Valley AuthorityTVA The American Cast Iron Pipe CompanyAmerican Pipe Co The Ford Motor Company (of America)FordsThe United States of AmericaAmerica January 2005 (Re-edited December 2011) xviiiABBREVIATIONS FOR DRUCKERS WORKS: The End of Economic ManEconomic Man The Future of Industrial ManFuture Concept of the CorporationConcept The New SocietySociety The Practice of ManagementPractice Management: Tasks, Responsibilities and PracticesManagement January 2005 (Re-edited December 2011) 1CHAPTER 1 THE THESIS AND ITS METHODOLOGYThis chapter records the cause, the purpose or objectives, range and methods of this work together with the extent of the material examined. Introduction This research is the consequence of wanting to make a contribution to help managers improve their performance.It follows my career in management that has spanned commercial, public institutions, and charitable organisations from embryonic stage to international scale, while working both as an employee and a principal.From this range of experience, the external influence that had the most consistently correct advice for management performance in this writers experience was Peter F Drucker.Hence the object of this research is to identify Druckers key messages for managers, in the hope that we will be less inclined to keep making the same mistakes with surprising repetition. Preliminary preparation of this research commenced about ten years ago with nothing more than an aide mmoire of Management: Tasks, Responsibilities and Practices (1974) that I had produced in 1975 as a management prompt.The starting point for this research was identifying and collecting Druckers books, until I had a complete library of his works.The task was substantially completed by the mid 1990s.The resulting list is incorporated into Appendix 2 Bibliography of Peter Ferdinand Druckers Primary Literature and of his Significant Biographers (in English).In correspondence with Drucker regarding my list of his books he commented, You have more than I have (correspondence Drucker/Starbuck October 1995). January 2005 (Re-edited December 2011) 2Objectives This thesis will establish what unique contribution Drucker has made to the practice of management.The foundation for this research is a detailed analysis of his first five books, which includes what is most frequently acknowledged as his seminal work The Practice of Management.The other four books are The End of Economic Man (May 1939), The Future of Industrial Man (1942), Concept of the Corporation (1946) and The New Society (1950).John E Flaherty, Druckers most consequential biographer, wrote that these first five works of Drucker needed to be studied to understand Druckers management ideas The Practice of Management was a culmination, bringing Druckers early thought into a coherent synthesis (Flaherty 1999:20).I agree with Flaherty, as this was my contention when I commenced my work in 1998.My conclusion has been supported by my research for this thesis.The thesis will also record how Druckers personality and ideas developed, what the ideas of his major influences were, and what their contribution was, followed by the reaction to his work.The thesis will be concluded with an assessment of its contribution. On the face of it, this thesis may appear to be a partial sample of Druckers total written output, which is about three and half million words in book form plus a similar amount in academic papers and journalism.However, the content of this section of his work provides an important area of study, because it identifies the foundation and records the evolution of his ideas.The present submission is part of a much larger study, which more fully examines the work of his influences and the work of his biographers and commentators.It enabled an assessment of the market place of ideas that Drucker worked in and whether there was an empirical research to support the occasional barb that his work lacked academic rigour. January 2005 (Re-edited December 2011) 3Why a further study of Peter F Drucker? It could be argued that Drucker has already been studied in detail.He has been the subject of a number of individual biographies over a period of thirty years.It is near impossible to find a compendium of management writers or shapers, which excludes Drucker.He has been the subject of eleven identified theses, nine in America and two in Spain.However, no evidence has been unearthed that detailed research has been conducted in the United Kingdom.This leaves an opportunity for original contribution from a British perspective by a practising manager with the advantage of hindsight on the 50th Anniversary of Drucker publishing Practice. What am I going to achieve? By analysing Druckers ideas and those of his influences, actual or potential, I will identify if he has, as he claimed, made a unique contribution to the practice of management and management ideas by writing Practice.I will attempt to answer the question Did he invent the discipline of management in Practice by putting all the tools of management into one kit? (1986:9).And was his contribution as a synthesiser, or as an originator of ideas?To qualify as a Drucker influence, they must appear in his text directly or indirectly by identifiable association.However, there are variations in the manner in which he has treated them.The majority are precisely referenced and linked to their ideas.Others are not close referenced, but examination of their work establishes what was available to Drucker.It is a matter of conjecture from this material rather than speculation that the links have been established. January 2005 (Re-edited December 2011) 4The Methodology The methodology of this thesis is primarily comprehensive qualitative incremental documentary analysis refined by disquisition.It is a practical application of Gestalts holistic boundary-less method.This lateral approach has produced material that is more extensive than is traditional.Consequently, a selection of the research has been chosen for this thesis, while the balance is in an unpublished but deposited working paper.However, this relaxation of the normal parameters is necessary for the examination required to be of sufficient rigour.The research is primarily literature based.It is a structured approach to build patterns of the ideas that appeared, and how they evolved.As in any management project, which is what this research is, some of the recognised management functions are endemic.The objectives have been established.The methodology in a general management project would be termed planning.The plan of this research has been to identify the core resources needed.These resources are literature records in a traditional written or electronic form, and personal recollections of people interviewed. The foundation or core researches are Druckers books.From these, his management ideas have been identified.Also the influences that he records and which have shaped his management ideas have been collated.Appendix 5 - Philosophical Influences that Drucker Considered in Evolving his Managerial Ideas is the work of these influences, and their published works have been studied in their original form (or with foreign works in a translated form).Works by others, who are not overtly referenced as influences, have also been studied to establish whether their contribution to management ideas has similarities with Druckers.Because of Druckers declaration that his interest is in people, a bibliographic profile has been compiled of each of his key influences and these are included in Dramatis Personae The One Hundred and Five Influences that Drucker Considered for his Management Ideas (Starbuck 2005a) unpublished working paper OUBS (48,000 words). January 2005 (Re-edited December 2011) 5The biographers of Drucker and the significant commentaries on his work have also been studied.These are detailed in Appendix 2 - Bibliography of Peter Ferdinand Druckers Primary Literature and of his Significant Biographers (in English).This information is also supported by the work of his reviewers, by interviews, and materials resulting from debates with a range of interested people.This also included a face to face interview with Erwin Wilson, the son of Charles Erwin Wilson (1890-1961), in December 2002, regarding his fathers role as the president of GM, during the period that Drucker wrote Concept.Appendix 1 - Peter Ferdinand Druckers Timeline For the Period 1909 1954 is produced as a stand-alone document, as a convenient record of the significant events in his life and of the key management ideas that he identified.This, to my knowledge, is the first time that a Timeline of Drucker has been attempted. Where the written evidence has not been in a sufficiently comprehensive form to allow conclusions to be fully drawn, then more expert opinions have been sought and/or further literature research has been included.Although the approach has been structured, it has not been an inflexible grid, as many random diversions have been productive and added to the objective. Much of the work has been predictable and sequential in locating book references or the work of the influences, all through indices or databases initially.It has been achieved by disquisition with specialist such as librarians, academics or practitioners of various fields and the network of contacts and friends whose help I have called upon to assist with problems that could not be regarded as routine.An example is the genealogical expert who helped me to locate Druckers home in London via his Certificate of Marriage. The present writer acknowledges that research for this thesis is confined to works in the English language, except for the works of Druckers early influences - Frederich Julius Stahl (1802-1861) and Walther Rathenau (1867-1912). January 2005 (Re-edited December 2011) 6Where Druckers influences occur in the general text they are underlined for convenience of identification.This practice has not been followed in quotations or references.The first mention of the influences will include their full names.Thereafter only surnames will be used excepting Richard Warren Sears (1863-1914) to differentiate him from Sears Roebuck & Company and the husband and wife team of Frank Bunker Gilbreth (1868-1926) and Lillian Evelyn Moller Gilbreth (1878-1972), which is necessary in order to differentiate between them.Also, where research has identified ideas from his influences that he did not record, they have been bracketed thus { }.Where Drucker is setting down specific rules for performance, they have been underlined as ____________. With one or two exceptions, including Lillian Gilbreth and Mary Parker Follett (1868-1933), management in this era and the preceding era was male dominated, as confirmed by Druckers first reference to women Such a man (or woman) must make decision (1966:6).In this thesis, people are referred to as neuter or in male terms, but the term embraces both sexes. The Harvard Standard reference system has been used for general references.However, where Drucker references the title of the book or paper it has then been included narratively in this thesis, because the book title is fundamental in identifying the work topic or range of his writing.Other researchers have noted that Harvard standard referencing is not always compatible with this type of research. Subsequently, my research has been targeted on its core objectives.During my studies over the past seven years, I have examined several thousand books, papers and articles, making records as necessary.The aim has been to develop a better focus and context for Druckers management work.Much of the material has been about management, but others have followed his holistic range of wider ideas. January 2005 (Re-edited December 2011) 7Primary Material - The Core Books Economic Man analyses the situation in Europe and concentrates on the societies in totalitarian collapse.It is pessimistic.By contrast, Future is optimistic as Drucker starts to identify the type of society that he personally wants to be a part of.It is a Christian-based free society, giving man freedom, status and function, which are the needs that he identified in Economic Man.Having identified a workable model for society, Drucker moves on and commences, in Concept, to identify management ideas more specifically and to develop his social ideas.Central to these social ideas was the creation of an autonomous self-governing plant community to correct or complete industrial mans society that had not evolved from when it was economic mans society.Drucker believed that without a new workable society centred on the Corporation, (which is a Social Organisation, not a mechanical organisation), society could not function to its full potential.Druckers warning was that if there were no constructive developments in society, the situation would become more acute and unstable. Concept is the first study of the Corporation as a social organisation, and is centred upon Alfred Pritchard Sloan Jnrs (1875-1966) General Motors Corporation, the worlds largest manufacturer.Drucker identifies GM as the foundation for his new industrial mans society.Drucker describes what he terms GMs Federal Decentralised structure, which later becomes generically known as Decentralisation.For Drucker, Decentralisation is the recommended corporate model, although there was a need to further develop its social concepts.Druckers ideas have developed considerably from Economic Man and Future.With his ideas in Concept, he now had a foundation for his task.In Society, Drucker collects and refines his ideas in general, but his emphasis is on society rather than the needs of the Corporations.In Practice, he collects and synthesises the essential working practices and other elements needed for the successful management of business enterprises.Amongst this is his assessment of what is an acceptable market based society.It is based upon Joseph Aloisius Julius Schumpeters (1883-1950) concept January 2005 (Re-edited December 2011) 8of a pluralist free market economy, which rejects both laissez-faire economics and central planning.However Drucker accepts that some projects can be undertaken satisfactorily only by governments, such as the mammoth Tennessee Valley Authority project, which received a passing reference in Society (1950:9).TVA is examined in Druckers later work, Management: Tasks, Responsibilities and Practices (1974).Although it is outside the general time frame of this research, it is included in this thesis because it is Druckers first examination of the management of a non-profit making organisation and also because it indicates one of the directions of Druckers later important work. Druckers position in Practice is that management is business management, with the military, Church, and Government having something similar.Later in his career, in the 1990s Drucker would contribute to management thinking in the other organisations of society such as the non-profit sector, and would identify the non-profit charity area as the place where managers could then get the most satisfaction in their work.His commitment to this area is endorsed by his pro bono work for charities in general, and the formation of the visible [The] Peter F Drucker Foundation for Non-Profit Management, in America and Canada. Further works of Druckers which fall outside the period of this research are referred to where they record significant changes in Druckers management thinking, which would result in the wrong conclusion being drawn if omitted from this text.A significant example is that Druckers contention when he wrote Practice, which was shared by Douglas Murray McGregor (1906-1964), was that there was only one right way to manage people.Later Drucker admitted that Abraham Harold Maslow (1908-1970) in his book Eupsychian Management (1965), {Eupsychian is a Maslow invented word meaning moving toward psychological health} proved both himself and McGregor wrong, and that Maslow was right in thinking that people were so significantly different that they could not all be managed in the same manner (Ibid: 1965, and Drucker January 2005 (Re-edited December 2011) 91974:233).This was a conclusion that George Elton Mayo (1880-1949) had reached in his book The Human Problems of an Industrial Civilisation (1933). Support Material This is made up of the several hundred papers and books that Drucker refers to, and the works examined of his influences. Problems of Archival Research Problems worth recording include a search for Druckers Birth Certificate, which produced a reply from Dr Waltraud Stangl of the Evangelisiche Kirche in Vienna, Austria.Only family relations can obtain birth and death details in accordance with Section 41 in conjunction with Section 37 of the Austrian Law on Births and Deaths.Research for a PhD thesis is not accepted as a legal interest.It was suggested that the records could be accessed after the person was dead and when the event was one hundred years old.My genealogist researcher commented that Austria had one of the most restricted personnel record systems in Europe, whereas the British system is open access.His concern was that the pattern of change was for Britain to move in line with the Austrian protocol under European Union regulation. It is worth recording a red herring that was inadvertently set for the Shropshire County Reference Library.Practice contains an error regarding Xenophon (431BC 354 BC).It is described as Kyropaedia of Xenophon (1954:156).It should read Kyropaedia of Xenophon, however the use of of is now regarded as old-fashioned.The accepted British usage is Cyropaedia by Xenophon.The library spent a day of archival research unable to trace who Kyropaedia was!I January 2005 (Re-edited December 2011) 10then phoned The British Library in London where one of their Classics experts straightened the record. The foregoing examples confirm the advantage of qualitative research by disquisition as being the method of a literature of archival research.Although quantitative analysis has been used where appropriate to collate data in the Appendices and Table, it has also been used in connection with the ISI Citation Index and various library databases. The advantages of using Qualitative Analysis for this type of research are shown in the examination of material identified, where an open-minded attitude was essential to prevent a prejudicial outcome of the development of a hidden agenda, which can be the danger with closed questions.The open enquiry has enabled experts such as librarians, together with other researchers, to share their expertise and knowledge, and to make important contributions during disquisition.An example of their knowledge is in explaining the construction of the ISI Citation Index, which commenced in 1980.Only material from this date forward is included. What this means is that references to Practice published between 1954 and 1979 are not all the references but only references published from 1980 or onwards.This is not obvious to an inexperienced researcher and became apparent only during discussion.Also, The British Library search system is separated into pre and post 1975; this appears obvious until discussion reveals that books written before 1975, but acquired after 1975, are catalogued in the post-1975 collection. Much of the material examined in the research itself is not indexed.It has been painstaking detective work, as one piece of information has often provided a lead to another piece of sometimes important or sometimes irrelevant information.Some of the standard indices such as Copac were not as revealing as was predicted by various advisors.The fact that the Open University Library does not subscribe to the 23,000 per annum Biography and Genealogy Master Index indicated that this type of research is not creating common demand at the Open January 2005 (Re-edited December 2011) 11University.Biography and Genealogy is an important survey of information, but it is not as complete as indicated in its introduction, as some inclusions refer only to other obscure American material that is not readily available, or where available the information contained was incomplete.The American biographical indices or references used with success were Who s Who in America and Who was Who in America, The New York Times Obituary Index, The Book Review Digest and The American Social Services Death Index. Of the libraries used, The British Library and The British Newspaper Library required the most persistence, because the service provided varied, depending on which staff member was approached.No can become Yes after the fourth or fifth enquiry.The library of the London School of Economics and Political Science has unique and exceptional material, which can be accessed providing you can gain admission.The belief of The British Library in St Pancras that their reader cards give access to the London School of Economics Library is not true; the London School of Economics own pass is required.However, once this has been obtained briefcases can be taken in and out without being searched, whereas at The British Library only essentials for the research can be taken into their libraries in transparent bags.This is an illustration of libraries idiosyncrasies.The Chartered Management Institutes Library at Corby is also very helpful to its members and their material was essential to this research, as was the Open University Library at Milton Keynes.Cambridge University also provided important material, while my own Shropshire County Library Services obtained much material on loan, including unique material from American Libraries. One of the American Libraries at Kansas University lent one of the few copies in the world of Rathenaus English translation of Die neue Wirtshaft (The New Economy) (1918).The universities of Harvard, Yale, Rochester, New York and RIT in Illinois have been most helpful in providing materials, as was the Nevada State University during a visit.Experience with the Library of Congress in Washington confirms that they are best equipped for responses via the January 2005 (Re-edited December 2011) 12Internet, rather than personally.Of the Embassies contacted in London, the American responded with bibliographical details in general, The Swedish Embassy with Sune Carlson (1909-1999), The French Embassy in part with Rolf Nordling (1893-1974) while The German Embassy were co-operative, but became defensive when asked whether the Nazis confiscated Rathenaus family assets. The essentiality of working from original material is illustrated by the danger of using updated editions of books rather than those referenced.Two examples are given.The first example is Maslows book Eupsychian Management (1965).In its original form, the book is difficult to access.An update entitled Maslow on Management (1998 Maslow with Stephens & Heil) purports to be the same book, but with explanation notes.It isnt. Two important sections have been edited out of the text.One is a condemnation of homosexuality that established Maslows position as a homophobe (Maslow 1965:12).Another is a reference to a study of adolescent Negroes in Cleveland, Ohio (Ibid 1965:167).These omissions may not have a direct bearing on the research in hand, but they are a warning of the danger of secondary evidence, and how editing can distort.What is important is that it limits the understanding of Maslows work, and it contracts the range of ideas he considered.The second example is Frederick Winslow Taylors (1856-1915) Scientific Management 1911, which is one of the standard classic management books.It is no longer in print and not too readily available on the second-hand book market.However, The Principles of Scientific Management by Taylor copyright 1911, published in 1967 by Norton Library, is available.After several interviews regarding Scientific Management it became obvious to me that my counterparts and I were not talking about the same things.The reason was that the original Scientific Management contains three of Taylors works: Shop Management, The Principles of Scientific Management and his Testimony before the Special House Committee.The 1967 Norton edition of Taylors work is only the middle volume of his original work, but the impression given, is that it is a reproduction of the entire original 1911 edition.See particular entry in Appendix 3 Thesis Bibliography. January 2005 (Re-edited December 2011) 13 It is worth recording that a common library practice which handicaps research is the practice of removing dust covers from books.For literature researches, in particular, and for research in general, it removes important information from the dust cover which invariably is not repeated in the text of the book.However, the paper record when kept is retainable, which occasionally is not the case with web-site indices, which may not yield the same response for identical entry procedures. Advice on Archival and Literature Research Some advice on archival and literary research exists, such as Archival Strategies and Technologies (Hill 1993).The first action recommended is to set a target project.The second is to build around that target by research.If the person is prominent, then this is relatively easy.However, if the person is obscure, it may require researching other more prominent contemporaries or contributors in the targets field of activity.Fortunately, Drucker was prominent and established which made him a direct rather than indirect target.Michael R Hills next recommendation is to consult appropriate indices.Of those recommended, a small number are not available in the UK.Of those available, many had been used, together with some that Hill does not record.However, in acknowledgement to Hill (29 & 30), the following were examined at The British Library on his suggestion.[The] Combined Retrospective Index Set to Journals in Sociology 1895-1974, in which there is one reference to Druckers paper Employee Society (1952).Combined Retrospective Index to Book Reviews in Scholarly Journals 1886-1972, which records the academic reception to Druckers work.Biography and Genealogy Master Index (microfiche) although an important index, it did not help with my outstanding requirements regarding Druckers influences.Notable Names in American History 1973 was not relevant to my research, as the index lists American presidents, politicians and principal public servants etc.In International Encyclopaedia of the Social and Behavioural Sciences (25 Vols January 2005 (Re-edited December 2011) 142001) Druckers books received nine references in the text in this highly selective and authoritative encyclopaedia. Hill has anticipated the methods that I have used.Our experiences have a commonality and I endorse his advice.Hill advises that the researcher should not expect to find all the information in one location.Preparation is recommended as essential before visiting archives, as access requirements vary from establishment to establishment.Hill says that researchers should also be prepared for collections to be indexed idiosyncratically, and that the ability of the staff not only varies from one organisation to another, but also within the organisation.Hill records that the researcher should always remember that records may be for a purpose of influence, and not always as a factual record.Hill is again correct, but he does not highlight that we may all be unintentionally duped, because impartiality if intended is not always possible, as history can be influenced according to which side of the fence the view is taken from.An example is an organisations history, which is almost always produced at the managements request.Accurately reflecting the views of the workforce is always going to be difficult.Of the research methods for archival research, for Hill, quantitative research is a contributor but open question qualitative research is generally the most productive method.The reason is that it aids new discoveries and often provides further leads.However, all research methods must always be regarded as subsidiary to the object of the research, which is to provide the best research result.Hills emphasis is on documentary material.It is worth recording that on-line research will always have deficiencies because of the sheer volume of information available.This is a point made by an American friend who is attempting to find final biographical details on the last five of Druckers most obscure influences (e-mail Annette Parks/Starbuck 19.11.03). Support of open question qualitative research comes from Frank Heller (1920-2007) of the Tavistock Institute in his chapter in the Festschrift to Professor Derek Salman Pugh: The Time Dimension in Organisational Research Advancement in Organisational Behaviour Essays January 2005 (Re-edited December 2011) 15in Honour of Derek S Pugh edited by Timothy Clark (1997:297-298).Heller regards one of the reasons for the success of the Pugh-led Aston Studies as the use of carefully validated interview schedule rather than the more popular and less reliable distributed questionnaire.Of historical research, which this project basically is, Gilbert Keith (G K) Chesterton (1874-1936) made a criticism of writers on modern history of England, of starting at the second half and ignoring the first (Chesterton 1923:8).This criticism has been heeded in this composition. January 2005 (Re-edited December 2011) 16CHAPTER 2 DRUCKERS BIOGRAPHY Druckers life is being divided into three periods: his formative years in Austria and Germany, an interim period in England, and his developing and contributing period in the United States of America. Austria and Germany 1909-1933 The Formative Years Peter Georg Ferdinand Drucker was born November 19th 1909 in Vienna.He was the elder of two sons, the other being Gerhart Agustin, who was born in August 1911, and who eventually became a medical doctor.His father Adolph Bertram (1875-167), who had a doctorate, was a prominent lawyer, the civil servant head of the Austrian Ministry of Commerce, and he eventually he became the chairman of a major Austrian bank.Drucker records that his mother Caroline attended lectures by Sigmund Freud (1856-1939).The household led an affluent existence at Kaasgraben in the prosperous Dbling suburb of Vienna, with a flow of visitors and guests who were politicians, academics or connected with the arts. Regular guests included the economists Frederich August von Hayek (1899-1992), Lugwig von Mises (1881-1973), and Joseph Alois Julius Schumpeter (1883-1950), a one time Chancellor of the Exchequer to the Austrian Government who was a colleague of Adolph at that time in the Austrian Treasury.Later Drucker would describe his fathers lasting friendship with Schumpeter when they all lived in America.Schumpeter was one of the firsts of Druckers major external influences. January 2005 (Re-edited December 2011) 17However, the first recorded influences outside the household were his junior schoolteachers. He wastaughtobjectiveexaminationandtoconcentrateonhisstrengths(SeeVolumeI).Towards the middle of 1917 life in Austria was changing for all.Austria was on the losing side of World War I.By the winter of 1919-1920 only special food relief arranged by the Americans and British savedthechildrenofViennafromstarvation.By1922inflationhadmadeeveryonepoor;the AustrianKronehadreputedlyfallenby75,000timesintheprecedingfouryears.Hisjunior schooling was at the first Montessori school in Austria, in the home of a family friend (Pekar Jnr Dec 1992 see Volume I). Of his formal senior schooling Drucker did not regard his performance asdistinguished,beingboredwithclassicalgrammarattheclassics-basedDblingVienna Gymnasium.HisintellectualdevelopmentwasoutsideschoolbyattendingseveralViennese intellectual salons, where he was treated as an adult.He had to learn how to research and have his workcriticallyexaminedinthecompanyofpeoplesuchasThomasMann(1875-1955).These experiences together with the influence of the Austrian School, of economists, social thinkers and philosophers,alladdedtohisdevelopmenttogetherwithMaxWertheimer(1880-1943)who evolved the Gestalt holistic philosophy, which influenced Druckers approach in all of his work. In 1927, aged seventeen, he asked his father to find him something in business.His father found him an apprenticeship as a bored trainee at an export house in Hamburg, employed mainly in copying invoices for shipments of padlocks to India and East Africa.. I was, indeed, most unlikely to become a commercial success (1992:425).Despite this full-time job he enrolled in the Law Faculty at Hamburg University.He regarded himself as a part-time student as he could not attend the daytime lectures.The part-time study method became his recommended method of learning. While in Hamburg, Drucker had his first work published.It was a thesis on the role of the Panama Canal on world trade.It was published in a German economic quarterly before Christmas 1927.It had been written as part of his entrance examination for Hamburg University (1979:123).January 2005 (Re-edited December 2011) 18On his return to Vienna for Christmas 1927 from Hamburg he met Karl Polanyi (1886-1964) at an editorial conference.Polanyi would later become a colleague of Druckers in America at Bennington College in the 1940s. Of the fifteen months that he lived in Hamburg, his weekday evenings were spent in the library.He said I read and read and read everything in German, English and French.(Beatty 1998:11)He was a regular attendee at the Hamburg Opera.While watching a performance of Guiseppe Fortunio Francesco Verdis (1813-1901) Falstaff, Drucker learnt that this last opera had been written when he was eighty, which reflected Verdis philosophy, which was All my life as a musician I have strived for perfection.It always eluded me.I surely have an obligation to make one more try. (Ibid 1998:11) Verdis attitude was a further major influence on Drucker.The actions of Verdi made an indelible impression on Drucker, who resolved that he would use Verdis principles as a life model, trying for perfection and not giving up in advanced age. While in Hamburg Drucker had a spiritual experience that had a fundamental affect on his life.Reading Sren Aabye Kierkegaards (1813-1855) 1843 book Syrgt og Bievem (Fear and Trembling) changed The Lutheran Protestantism of my childhood as he had found a new, a crucial, an existential dimension (1993:425).This shaped Druckers conviction on integrity and morality in business reinforced his practice of the Protestant work ethic and the need for managers to have an ecumenical dimension to their lives. From Hamburg, Drucker moved to Frankfurt as a securities analyst at an old merchant bank that had been taken over by a Wall Street brokerage business.He continued with his career as a writer.An article on why the New York stock market would continue to prosper was Published in September 1929 issue.Just weeks later, in October, the market crashed.Drucker says that Fortunately, there is no copy of the Journal left. (Beatty 1998:12)Later Drucker gives an alternative version, that he was the researcher for a brilliant book by his boss, the firms January 2005 (Re-edited December 2011) 19economist.Two days after publication the New York Crash occurred.The book entitled Investment disappeared without a trace and a few days later so did my job (2002:ix).Later Drucker would write that this was the last financial prediction that he ever made.He was then appointed as a financial writer on Frankfurts largest circulation paper the Frankfurter General Anzeiger, where the editor insisted that trainees attended university, which was compatible with Druckers plan, as he had transferred his studies from Hamburg University to Frankfurt University.Drucker also attended Bonn University for Schumpeters lectures.In the same year, 1929, he recorded that he interviewed Adolf Hitler (1889-1945).Within two years he became a senior editor of the paper for foreign and economic news, politics and also wrote the womens section during the regular editors absence; while in Frankfurt he joined the Volkeskonservative Union People Conservatives, becoming the youth leader.The object was to recruit prominent youth members who were opposed to the Nazis.The project was not successful. Of Frankfurt University with its complement of foremost scholars, Drucker recalled that one part of the general syllabus that was to provide a lasting influence and the most general education I ever had (Beatty 1998:14).It was the subject of admiralty law.Drucker wrote that while, on the face of it, it was a narrow subject, the lecturer presented it as a microcosm of Western History, society, technology, legal thought and economy. (Ibid 1998:14)Later Drucker wrote that he used it as a template to teach management. (Ibid 1998:14)Drucker also noted that while at university he added statistics to his subjects.In 1931 at the age of twenty-two his thesis on International and Public Law was completed.With the completion of his doctorate, a promising career was developing.Although Drucker became eligible to be appointed Dozent a lecturer at the university, which he did, the appointment was never confirmed.An offer to become a writer in the Nazi Ministry of Information, Drucker met with a rejection. On 26 April 1933 JCB Mohr who were described as Germanys most famous publishers, produced as Number 100 in a series of monographs, Druckers thirty-two page Fr. J Stahl; Konservative January 2005 (Re-edited December 2011) 20Staatslehre & Geschichtliche Entwiclung Motrtueringan (Fr. J Stahl; Conservative Philosophy of the State and Historical Continuity) (http://3-ensign.at/drucker/stahlf.html).Friedrich Julius Stahl (1802-1861), a German Jew by birth, became the chief spokesman for the Protestant Orthodoxy.After a spiritual experience, Stahl converted to Christianity at the age of seventeen.He believed that even in periods of political and economic change, Conservatism based upon the overriding Protestant principles should continue with a place for a constitutional monarch.This was Stahls throne and altar.Stahls reasoning was that the monarch made evolution possible and revolution unnecessary.For Stahl People should obey the law and act responsibly and also respect the law and the monarch. In return the monarch and the government would reciprocate and uphold freedom rather than the State becoming the Total State.Druckers work has remained locus classicus on an important but difficult to understand German philosopher.Stahl, in proposing a world based upon Protestantism that was capable of change without destabilising political institutions was a formative influence on Drucker.This is attested by Freyberg who, claiming to be Druckers oldest friend, wrote that Stahl foreshadowed his entire subsequent development (Freyberg in Bonaparte & Flaherty 1970:18).Stahls continuity and change would become in Druckers work discontinuities, where the world could change and not fall apart, which allowed for the replacement of the Cartesian world where everything had a place.Although not mentioned by Freyberg Stahls conversion to Christianity and Druckers confirmation as a Christian believer at similar ages is relevant because of the permanent influence on their subsequent work.The monograph was Druckers rejection of Nazi ideas.Drucker said that he wanted to record that he cared.It was also his farewell message to the Nazis as he left Germany for Vienna shortly after it was published to stay with his parents at their house at Kaasgraben 10.The monograph was banned, and burnt for two reasons: for what Drucker had written and because of Stahls Jewish birth.Elon records In May book burning took place in every German University towns.The books were by Jews, traitors and degenerates (Elon 2002:395). January 2005 (Re-edited December 2011) 21Drucker left a European mainland that had disintegrated economically and was in political turmoil.He had experienced the defeat of his own country in war, chronic food shortages and hyperinflation.Many of the values that had been his anticipated inheritance at birth had been swept away.What remained were his family influences, and the outside influences of his two junior schoolteachers, Kierkegaard, Stahl, and Schumpeter whose fundamental influence would become manifest later.From them he had learnt application, independence and principles.They also gave him a foundation for his ethics, his politics, his constitutional aims, his economic, and his managerial ideas.Earliest amongst his management influences was Rathenau the prominent German major industrialist, academic, diplomat, politician, manager and social thinker as confirmed later (1939:60, 110, 118 & 246).Rathenaus prominence as a national figure is confirmed in Amos Elons book The Pity Of It All: A Portrait of Jews in German 1743-1933 (2002).Drucker was now an accomplished journalist having reported many major events including the developments that followed the Conference of Versailles.Also his academic career was now well founded. England 1933 1937 The Interim Period By July 1933 Drucker was in London and stayed for three years.In this period he developed a successful career in corporate banking and attended John Maynard Keynes (1883-1946) lectures at Kings College, Cambridge University.In a later reflection Drucker wrote that he could have been an economist but he realised that they were only interested in inanimates as commodities, trade and finance, whereas his interest was in people.Of his career and personal life, he was introduced to Japanese art and subsequently developed into an expert on 14th 19thc Japanese painting, on which he gave advice and lectured at university.Drucker, at twenty-seven years of age, married twenty-five year old Doris Schmitz.She had attended lectures by her husband-to-be, when he was a part- time lecturer at Frankfurt University.Their certificate of marriage records that the ceremony took place at Hampstead Registry Office, London, on January 16, 1937.January 2005 (Re-edited December 2011) 22Druckers name is recorded as Peter Georg, and Doris is recorded as being from Mainz, Germany. Her father is described as a retired civil servant.Later, as Doris developed her career she is described as a physicist and writer.Their residence, a ground floor flat, was 6B Upper Park Road, Belsize Park, and is now No. 1.Their marriage produced four children and six grandchildren.In one of his many later interviews when asked what were the most important events in his life.He replied there were two: not accepting his wifes first refusal of marriage, and that his adult education was on a part-time basis. While in London Drucker had recommenced his work as a journalist, this time writing for British newspapers.By 1935 he was writing for American magazines and newspapers.In 1937 the book GERMANY, The Last Four Years An independent examination of the Results of National Socialism by Germanicus was published.This book is the work of about a dozen men of some achievement in Germanys military, financial and industrial affairs. (Germanicus et al 1937:3)Drucker was one of the dozen.Later when the American Library of Congress attributed Drucker as the sole author, he protested at the inaccuracy.This was Druckers first contribution to a book in English and was confirmation that his intellectual credentials were being further established and accepted.Druckers time in England was a bridge between Continental Europe and America. During this period of his life he gained further valuable experience for his career development.His work as a banker introduced him to business management.His writing practised his work in English, while his further studies expanded his knowledge. America 1937 Onwards - Developing and Contributing Period In January 1937 Drucker left England for America.At twenty-seven years of age, he kept the promise he made to himself at the age of fourteen at the time of the youth rally.He had escaped pre-war by leaving Europe for America.In the four years in England, Druckers career as a lecturer was placed on hold.His journalism and writing had further developed while his business January 2005 (Re-edited December 2011) 23career had developed from a nominal start in Hamburg as an export clerk, to an investment banker in London, one of the worlds major capital centres.His exposure to further commercial situations and analytical training as a banker had added essentially to his skills. Druckers assurance of a part-income was an improvement on his initial arrival in England in 1933, as he quickly set up home in New York.He had an engagement to write for newspapers in London, Glasgow and Sheffield.He was also commencing work as a financial advisor and economist to a group of British investors and his previous employer Freedberg & Co.During the first few months of his arrival in America he began adding to his journalism by writing for the Virginia Quarterly Review, The Washington Post Philadelphias Saturday Evening Post, Harpers Magazine, and Asia.This was Druckers career development before his first book in English was published, The End of Economic Man (May 1939).Economic Man gave Drucker a wider intellectual recognition with important reviews by Sir Winston Churchill (1874-1965), detailed later.Jonathan Priestly (1894-1984) who wrote as J B Priestley (John Boynton Priestly), the distinguished writer on social affairs, wrote: At once the most penetrating and most stimulating book I have read on the world crisis.At last there is a ray of light in the dark chaos. (1939: Dust Cover).That Economic Man established Drucker as an English language intellectual is attested by many who quote him including Karl Polanyi, on the English Evangelicals (1939:93) (Polanyi 1944:171).His fellow countryman, Nobel Laureate Friedrich August Hayek (1899-1992), complimented Druckers analysis on Marxism and Russia, and his correct observation that the less freedom there is the more there is talk of the new freedom.Yet this new freedom is a mere word which covers the exact contradiction of all that Europe ever understood by freedomThe new freedom which is preached in Europe is, however, the right of the majority against the individual (Hayek 1944: 21 & 118) Because of Druckers phenomenal output, his researchers have been grateful for any guidance to help to categorise it, including Druckers own.It is my contention that when Drucker divides his January 2005 (Re-edited December 2011) 24books into two main groups of Management, or Economics Politics Society, he inadvertently misguides his readers because his management ideas are developing continually in all of his writings.Because his holistic view of management is based upon the Gestalt philosophy of reasoning that accepts no total isolation of different disciplines from each other, the result is that for Drucker management embraces the social, economic and political elements of life.It is for this reason that his books cannot be selected randomly when considering his management ideas.There is evidence that he was already considering management issues as World War II broke out, see The Industrial Revolution Hits the Farmers (Harpers Magazine November 1939), which is referenced in Wayne Albert Risser Leys(1905-1973) 1941 book Ethics and Social Policy page 83.This article was published after Drucker published Economic Man and before he wrote Future both of which he classifies as Politics and Society. In the months before World War II and after its outbreak Druckers journalism continued with his analysis of Nazi Germanys economy and external policies.The New Republic had a close following of government employees, the American intelligence services, and business policy makers.In 1940 he set up an independent consultancy to satisfy these demands which continued throughout the war. Drucker was aware, as the war progressed, that the demand for his writing about Germany and Europe would diminish.He widened his range of topics from European history, economics, political affairs, and foreign affairs and began to write about philosophy, education, religion, economics and the arts, extending his readership to include Readers Digest and The Review of Politics.As a leading magazine journalist he was writing much of his time.This was helping him to build a network of contacts, which would be one of his expanding strengths.Drucker later wrote that he didnt know what he wanted to do with his life, and this situation drifted until he was about thirty.The drifting had stopped when he identified his main lifes work as the discipline of January 2005 (Re-edited December 2011) 25management.Much later at sixty he wrote that he still did not know what he wanted to do with the rest of his life as he always searched for new challenges within, and without of, management. Druckers return to teaching was at Sarah Lawrence College in Bronxville New York in Spring 1941, the subjects being economics and statistics.He was engaged for one day a week until he was dismissed for failing to support a Senator Joseph McCarthy (1908-1957) anti-Communist Manifesto type witch-hunt of a colleague, having witnessed enough intolerance in Frankfurt.Despite being subjected to an FBI enquiry, Druckers job was quickly replaced and by late 1941 he moved to Bennington College Vermont on a weekly basis, while also lecturing to small colleges throughout America, having visited over fifty by the time America entered World War II.By the summer of 1942 Drucker had moved his family and taken up a full-time appointment at Bennington, which was described as a highly visible womans college. He renewed his acquaintance with Polanyi who joined the teaching staff at Bennington.He and Drucker continued a close friendship, although ideologically they were at odds.This was a pattern in Druckers life of respecting people for their intellectual capabilities while being at odds with their ideas.Another example is recorded in Economic Man where the Introduction (1939:vii-xiii) is by Henry Noel Brailsford (1873-1958), a supporter of Russian Communism and one of the most prolific writers on left-wing issues in the first half of the twentieth century; Drucker profiles Brailsford (1979:170-186). Polanyi and Drucker were in accord that the evolution of society had not kept pace with economic changes and that it was imperative that this was brought about.Both started from the position that 17thc England was the most developed country both politically and economically.{Polanyis contention is that it is the tranches of The Enclosure Acts, between 1777 & 1795, which started with Statute of Artificers (1563) that began the social imbalance.This was followed by the action of magistrates at Speedhamland, Berkshire of 1795, which granted allowances to workers by January 2005 (Re-edited December 2011) 26making subsidised payments in relationship to the basic price of wheat calibrated to the size of the family, which was endorsed the following year 1796 by Parliament.For Polanyi this was the start of social disruption in England.The Industrial Revolution for Polanyi was a continuation of this sequence.}Drucker concluded that The Industrial Revolution was a separate pivotal event while recognising that other events affected its formation.It was at this point that their respective views further diverge.Druckers society was based upon Christian individuality, status and freedom in a market economy.Polanyi argued that a market economy has never worked since The Industrial Revolution because labour, land and money were treated as commodities.The solution for Polanyi was a planned economy with man surrendering most of his status and freedom.Polanyi supported his argument by crediting Robert Owen (1771-1858), as the first to accept that industrial society had become too complex to accept that man could be a unique individual in a Christian sense.He must be considered as a part of a whole whose mutual interest would be protected by Owens enlightened encouragement of Labour Unions (Polanyi 1944:85).Drucker while rejecting Polanyis concept of society, still paid his respects by profiling Polanyi (1979:123-140). In the autumn of 1942 Druckers second book The Future of Industrial Man was published.The reception of Future produced a range of reviews of which thirteen have been identified.The increase in the number from those on Economic Man confirmed that Druckers impact was increasing.Harry Hazlitt in the Yale Review described the style as a combination of a German mysticism and a popular magazine looseness but it is merely a brilliant blur.More representative of the reaction was Jacques Barzun (1907-) of the New Republic, (26 October 1942).Barzun deemed the book worthy of careful study that our scholars reserve for authors who have been dead a thousand years.Quincy Howe, found in the author a tolerant inquiring spirit that our liberals and radicals can well afford to acquire (Saturday Review of Literature, 26 September 1942). These reviews and the others are detailed later.As a result of Druckers growing recognition he was invited to join the American Political Science January 2005 (Re-edited December 2011) 27Association committee on Political Theory Research.He felt his academic career had been launched.Drucker said that he knew that he wanted to keep on teaching at Bennington and was given the freedom to teach whatever subject needed teaching (1979:256).He taught philosophy, political theory, economic history, American government, American history, literature and religion.Drucker recorded that he had been involved in a dialogue regarding teaching at Harvard and Princeton, but remained at Bennington as Professor of Politics and Philosophy until 1949.One of the main reasons for the Harvard proposal not materialising was that the Dean restricted consulting to one day a week.Druckers view was that management was a practice and needed to be practised.His laboratories were his clients and their businesses, which could not be brought to the theatre, as with medical students; they had to be visited.The isolation of management students from practice has in Druckers opinion producing an ongoing fault line.In 1943 Drucker became an American Citizen (Whos Who in America: 2000). Having settled into his teaching post in Vermont, his general consultancy work continued on political, social and economic affairs together with his writing.He also continued research on the political and social structure of industrial society, and on the anatomy of industrial order (1979:258).Attempts at the end of 1942 to persuade business executives to allow him access in their organisations resulted in rejection.Most of them like the chairman of Westinghouse Electric, thought me a dangerous and subversive radical, if they understood at all what I was after (1979:258).Research in the Columbia University library was equally unproductive: the pitifully few books and articles that then existed in what we now call management the very term was quite uncommon dealt either with the rank-and-file worker at the machine or with such topics as finance or salesmanship.Drucker felt so frustrated at his failure to commence his research that he described his efforts in New York as his one last effort. (1979:258) A few weeks into his last effort just before Christmas 1943, Drucker received a call to meet Frank Donaldson Brown (1885-1965).Ive read your book, The Future of Industrial Man, January 2005 (Re-edited December 2011) 28said Brown.We in GM have been working on the things youre talking about on the governance of the big organisation, its structure and constitution, on the place of big business in society, and on principles of industrial order.We dont use such terms, of course; we arent political scientists, but mostly engineers or financial men. Pierre Du Pont, who first delineated our structure when he took over a near-bankrupt GM in 1920, is long gone; Alfred Sloan, whom Mr Du Pont put in as president of GM has been the architect of the Corporation and its chief executive officer for twenty years,Our policies and structure are now almost a quarter century old; theres need for a fresh look. you might be willing to look at GM as a political and social scientist, at our structure, our policies, our relationships inside and outside the company,When you have a program worked out, Ill introduce you to Alfred Sloan.He is the most important man for the project.He is Mr GM; the rest of us are supporting cast. (1979:258-259).Drucker accepted GMs commission to study their business.The result was the publication of his book Concept of the Corporation in autumn 1946. The book did not go down well with GMs top management but was popular outside GM.On Druckers academic career it had an adverse effect.Lewis Jones, president of Bennington College, told him Youre launched, on a highly promising academic career, either as an economist or as a political scientist.A book on a Business Corporation that treats it as a political and social institution will harm you in both fields (1979:262).Drucker said that Jones was right in this too.When the book came out, neither economist nor political scientist knew what to make of it and both have ever since viewed me with dark suspicion.Drucker records that The reviewer in the American Economic Review was baffled by a book on business that was not micro-economics and complained that it offered no insights into pricing theory or the allocation of scarce resources.Drucker also records that a highly sympathetic reviewer in The American Political Science Review ended by saying: It is to be hoped that this promising young scholar will soon devote his considerable talents to a more serious subject; and when the American Political Science Association next met, I was not reelected to the Committee on January 2005 (Re-edited December 2011) 29Political-Theory Research. thirty years later, economists as a rule were not willing to look upon the business enterprise except in economic terms, and political scientists, by and large, confine themselves to dealing with overtly governmental institutions and the political process in government. (1979:262-3).Of the reviews a further six are considered later. The positive effect of Concept on Drucker was to launch his management career and to convert his consultancy work into management consultancy.His claim that Concept started the management boom is one of the issues being examined in this thesis.Concept is still regularly quoted but for Drucker it was a stepping stone to The Practice of Management.However before Drucker was ready to write Practice he needed further preparation and would write another book.This period from the publication of Concept and the next book published 1946-1950 could be described as Reflecting on Management. Reflecting on Management 1946 - 1950 Drucker continued with his freelance writing, which included major articles.Also he continued developing his management consulting and teaching at Bennington College, while working on his next book The New Society The Analysis of Industrial Society of 1950.He groups the book under the heading of Economics, Politics and Society but it is also in my view a management book because Druckers thesis is that management is central in the new society.This is confirmed by Druckers first contribution to the HBR March 1950 Management Must Manage which is, in effect, a preview of Society.The books intended audiences were the members of the new society.It is not specifically directed at Managers who are only part of the audience.Management Must Manage was the start of a relationship with HBR, which would set two records.The first was that he produced more Reviews than any other external contributor, and the second was that he has contributed over the greatest time span of any regular contributor (Letter HBR / Starbuck 19 November 1999).January 2005 (Re-edited December 2011) 30 In Society, Druckers refines his existing ideas, develops new ones and begins the exploration of further ideas. Taking a Central Position 1950 1953 As Society neared publication Drucker and his family left Vermont and Bennington College and moved back to New York for Drucker to become Professor of Management at the Graduate Business School of New York University.The engagement at New York lasted from 1950 to 1971.Drucker claims it was the first appointment ever as a professor of management although Lillian Gilbreth achieved this in 1935 at Purdue University (Yost: 1949:337). The New Society was, as the title suggests, about Druckers vision of a new society.Rathenau had previously used the title for his book Der Neue Staat (The New Society 1919).The aim of Rathenaus book was to project policies that would protect citizens from their mistakes.Inadvertently he was laying the foundations for Nazi totalitarianism.While Drucker accepted many of Rathenaus ideas, Druckers view of the new society differed fundamentally.Druckers society was based upon American Christian free enterprise which, in the view of the New Yorker [The Book Review Digest 1951:258], was positioned somewhere between Communism and Capitalism with managements role integrated within society.Society received other positive and complimentary reviews as follows.It was a stimulating volume that is sure to be the book of the year in socio-economics (G G Higgins Commonweal 1September 1950:164 [The Book Review Digest 1951:258]).It deserved the widest possible audience (The New York Times 14 May 1950:6[The Book Review Digest 1951:258]).Mr Drucker is regarded as one of Americas leading experts on economics, social and political problems, and has a wide experience as a foreign correspondent, college teacher, international banker, and consultant to large businesses (H H Springfield Republican 4 June 1950:12 [The Book Review Digest 1951:258]).While January 2005 (Re-edited December 2011) 31commenting negatively that There are some minor irritations in this book S E Harris concludes, it is a stimulating valuable and provocative book (New York Herald Tribune 21 May 1950:6[The Book Review Digest 1951:258]) With the publication of Society Drucker had a robust model for society and an acknowledged reputation as a social commentator.He was now also immersed in management rather than the tentative outsider, who had started his research with GM for Concept.The evidence in Society is that Druckers references are much more management related, which is evidence of his growing knowledge of other thinkers and writers on the subject.In the five year gap between publishing Society and Practice Druckers reputation had grown.He had developed his management consulting practice; extended his range of writing to include management related subjects, while continuing with his lecturing.Concept has been founded on a management consultancy commission but centered on social organisation with the major American Corporation GM.Practice was also founded on a management consultancy commission.This time the client was General Electric Company (of America), who commissioned Druckers contribution for his management knowledge as part of their management review team, rather than asking for a social study.This provided further evidence of Druckers progress as a management consultant and his now established standing in this discipline. This chapter has explained Druckers background, diverse experiences and his general development.It has provided a setting for his work to be examined in detail. January 2005 (Re-edited December 2011) 32CHAPTER 3 THE EVOLUTION OF DRUCKERS IDEASIN HIS FIRST FOUR BOOKS This Chapter will examine the development of Druckers ideas and his consequential influences in these first four books. The World of Despair The full title of his first book is The End of Economic Man A Study of the New Totalitarianism (May 1939).The first sentence is This is a political book (1939: xv).Although Drucker wrote that he needed to escape pre war the book confirmed his obsession with it.The book tracked the historical events that caused the breakdown of European society between World Wars I and II starting with the development of Fascism that materialised first in Italy, then in Germany and spread into Austria.Reasons are given why the Fascists gained power, and also the Communists in Russia.The reasons are that the political and social structure had collapsed, leaving a vacuum and despair.Peoples lives had not only collapsed economically but also spiritually, as the Church had been powerless to fill the vacuum.The economic, political and spiritual world was bankrupt; people had lost the will for freedom, and had capitulated.Totalitarianism had filled the vacuum; it made decisions for the masses and gave economic hope.In Germany this had been achieved by building an economy that was based upon preparation for war. A statistical analysis of the references in Economic Man confirms that Adolf Hitler (1889-1945) is the most frequently referred to with forty-one mentions followed by Karl Heinrich Marx (1818-January 2005 (Re-edited December 2011) 331883) with thirty-eight.Although Hitler was a negative influence on Druckers ideas he received even handed treatment from Drucker. A management idea that Drucker did inherit from Hitler, albeit inadvertently, is privatisation, originally named reprivatisation.Drucker described that Hitler only wanted power and not to be involved in the day-to-day management of organisations except for control purposes.Because the German banks were failing he reluctantly had to nationalise them for their survival.Once this had been achieved he returned them to private ownership by reprivatisation (ibid:118).This idea would re-emerge in Druckers later writings and became acknowledged and adopted by the Thatcher Government as their privatisation policy.[Idea: Privatisation] Marx, a recurring figure in Druckers early writings, received rational intellectual analysis in Economic Man with credit being given by Drucker to certain of Marxs ideas on the labour market.However Drucker was totally opposed to Marxs political ideas.Of Marx as an economist he has Druckers admiration but not his support. Drucker follows Schumpeters line on Marx as an economist that Marx asked the right question, which is the most important thing intellectually.What Drucker recognises is that Marxs socialist dogma was dependent on a proletariat, which only has their labour to sell. Even a casual examination of the one hundred and thirty-three individual references in Economic Man demonstrated how extensive Druckers preparation for his ideas were.He draws on history, philosophy, politics and economics, which links back to his time in Hamburg, where (he) read and read and read as he tried objectively to replace a world that had gone mad and attempted to discover a new purpose.A major part of that purpose later emerged as management.That he was prepared to examine the totalitarian philosophy and consider many alternatives before reaching his final conclusions is conspicuous in his work.An illustration is the work of Friedrich Neitzsche (1844-1900), whose God is dead was an anathema to Drucker, to the positive Christianity of January 2005 (Re-edited December 2011) 34Gilbert Keith Chesterton (1874-1936) and others to validate Soren Aabye Kierkegaards (1813-1859)ideas.He sets out on what later can be recognised as a journey of discovery the discovery of management.It will take a different route from any taken before or since. In Economic Man Drucker identifies several accepted or permanent influences. The first was Kierkegaard, who was described as an extreme Protestant whose relationship with God is purely personal.But even from this position society for Kierkegaard was utterly irrational (1939: 97).To endorse the need for an ecumenical dimension to ones personal life and to support Kierkegaards position, Drucker includes Fyodor Michaelovitch Dostoevsky (1821-1881), describing his conversion from a French Revolutionist to what he perceived as the only solution: that of a Christian based society (ibid: 91). Walther Rathenau (1867-1922), who is another permanent influence on Druckers ideas (but with whom Drucker will not always agree), receives four mentions as a serious liberal political thinker who as an opponent of Versailles from the beginning predicted it would lead to a military reaction from Germany (ibid: 60 & 110). Later connecting Rathenau to Hitler, Drucker wrote: I myself have heard him (Hitler) attack Walther Rathenau and his pupils for having advanced a totalitarian economy which - according to the Hitler of 1931 would make the state the servant of its social structure (ibid: 118).Rathenau the left-wing democrat was the first to preach totalitarian economics (ibid: 246).He did not see it would lead to fascism.In fact almost without exception these confirmed totalitarians, the Nazis, came from his school.Contrary to what transpired, Rathenau the extreme nationalist saw totalitarian economics as the final step towards freedom and equality (ibid: 246). Druckers conclusion was that all forms of totalitarianism were unconstitutional and therefore illegitimate, but that the legitimate alternatives of socialism and capitalism in Europe had lost their appeal.Although Economic Man had a high theoretical content, as befits a constitutional lawyer, January 2005 (Re-edited December 2011) 35Druckers management ideas could be seen to be emerging by sifting the ideas of his influences.Drucker was more prepared than any management writer before him to search widely for the solution to his problems in what could be described as a boundary-less search.The start was the ecumenical content of life such as Kierkegaards brand of Christianity, which should give man freedom, status, function and morality or integrity. Next was Rathenaus social plan to reorganise and have an integrated industrial order, as an alternative to totalitarianism.Kierkegaard and Rathenau provided the seeds of Druckers management ideas, which were based on integrating major industry with a society that was fair to everyone.Druckers perspective, as Rathenaus, was outward-looking towards society.This outlook contrasted with Frederick Winslow Taylor (1856-1915) and Jules Henri Fayol (1841-1925), whose focus was on self-contained businesses that were inward-looking.Drucker would later identify Taylor, Fayol and Rathenau as the three founding fathers of management.For Taylor the industrial plant was complete as a mechanical unit.For Fayol it was also a Social Organisation that spread into the households of the workers, but did not travel beyond into society in general. Drucker also drew attention to Robert Owen (1771-1858) for his concept of individual democracy, the father of consumers co-operation and for being that almost saintly figure of early capitalism (ibid:87).What was being established was that Drucker at this early stage of his work was identifying some of the major influences of 20thc management. For Drucker the constitutional alternative to totalitarianism was American free-market capitalism.Drucker, like so many of this time, was uncertain about the future and could only offer America as an important safety valve to Europe and a living example.His qualified hope (ibid: 41-42), was that it could lead toward the freedom and equality of the individual in the free and equal society. (ibid: 35) Although Alexis De Tocqueville (1805-1859) is referenced for his religious view (ibid:85), Tocqueville held similar views to Drucker about the role of America in the early 19thc.The January 2005 (Re-edited December 2011) 36difference was that Tocqueville was more confident of the American ideal working, drawing his conclusions from being resident there, whereas Drucker was drawing his conclusions from afar.However Tocqueville signalled for Drucker the escape from pre-war (Tocqueville 1835).Karl Emil Maximilian Max Weber (1864-1920) added to Americas attraction with his views that America was shaped by the early Quaker colonies creating a non-conformist Protestant society (Weber 1927).Many, including Drucker, followed Webers view of America being a Quaker-created society as conventional wisdom, when Economic Man was written.During the following decades this view changed to include other immigrant groups.Rathenau was also attracted to America for different reasons, as he perceived that if Germany adopted their high wage potential for the workers, it would be a contributor to improving and stabilising the German economy and society. As part of a high wage package Rathenau rejected Taylors and Fords production methods as destroyers of the essential satisfactionthat workers could ahieve only by craft trained labour. The idea that management has a part to play in society was emerging but not through the professional economist who seem(s) to have the power [yet the] actual developments have been taking a course which all economists however much they differ among themselves had declared to be impossible (1939:45-46).What Drucker was concluding was that they had misled those responsible for social and political developments for the need for a comparable change to balance the economic change that has already taken place.That they failed in their discipline had contributed to the breakdown in society.That economists should hold no responsibility for the social consequences of their actions, Drucker rejects.Economists Marx, John Maynard Keynes (1883-1946) and Adam Smith (1723-1790) are mentioned in the text but not Schumpeter.Henry Ford (1863-1947), one of Druckers early management influences, was described in the text as that grand old man of modern capitalism who is right and wrong at the same time when he forgets that economic expansion and increases are not aims in themselves.They make sense only as means to a social end (ibid:35).Also that the whole scientific system January 2005 (Re-edited December 2011) 37of classical economics collapsed when Henry Ford started out to obtain a monopoly by cheaper prices and large production in blissful ignorance of the economic law according to which monopolies reduce production and raise prices (1939:45).The Ford Motor Company was Druckers first recorded interest in corporate management in a free-market economy.The references to Rathenau at this j