The purpose of an organization is to enable ordinary humans beings to do extraordinary things.
The most important, and indeed the truly unique, contribution of management in the 20th century was the fifty-fold increase in the productivity of the MANUAL WORKER in manufacturing. The most important contribution management needs to make in the 21st century is similarly to increase the productivity of KNOWLEDGE WORK and the KNOWLEDGE WORKER.
Interpretation
What this quote means
Management's role has evolved from boosting manual labor productivity to enhancing knowledge work productivity.
In this quote, Peter Drucker emphasizes the significant shift in management responsibilities from increasing the productivity of manual workers during the 20th century to now focusing on enhancing the output and efficiency of knowledge workers in the 21st century. As the nature of work changes and becomes more knowledge-based, management techniques and practices must adapt to optimize this new workforce, reflecting a transformation in the skills and contributions required in modern industries.
Themes
In practice
Example use cases
In a management seminar discussing the future of work, this quote might illustrate the shift from manual to knowledge-based productivity.
More from Peter Drucker
All quotes →In the Western tradition, we have focused on teaching as a skill and forgotten what Socrates knew: teaching is a gift, learning is a skill.
We now accept the fact that learning is a lifelong process of keeping abreast of change. And the most pressing task is to teach people how to learn.
The basic economic resource - the means of production -_x000D_ _x000D_ is no longer capital, nor natural resources, nor labor._x000D_ _x000D_ It is and will be knowledge.
Unless commitment is made, there are only promises and hopes... but no plans.
The strength of the computer lies in its being a logic machine. It does precisely what it is programed to do. This makes it fast and precise. It also makes it a total moron; for logic is essentially stupid.
Similar quotes
A system must be managed. It will not manage itself.
The central problem of management is how spontaneous interaction of people within a firm, each possessing only bits of knowledge, can bring about the competitive success that could only be achieved by the deliberate direction of a senior management that possesses the combined knowledge of all employees and contractors
People with targets and jobs dependent upon meeting them will probably meet the targets - even if they have to destroy the enterprise to do it.
Nothing more completely baffles one who is full of trick and duplicity than straigthforward and simple integrity in another. A knave would rather quarrel with a brother knave than with a fool, but he would rather avoid a quarrel with one honest man than with both. He can combat a fool by management and address, and he can conquer a knave by temptations. But the honest man is neither to be bamboozled nor bribed.
It is a tricky business to know when you should set goals and objectives in order to achieve a focus, and when you would be better off dealing with the acceptance and management of your current reality so you can later step into new directions and responsibilities with greater stability and clarity. Only you will know the answer to that, and only in the moment.
Here's what management is about: Pick good people and set the right priorities.