Peter Druckers Modern Management Theory

Q. Explain Peter Drucker’s Modern Management Theory with its principles in detail

Peter Ducker

In 1954, Peter Drucker introduced Management By Objectives (MBO) which is a modern approach / philosophy / idea towards Management wherein effectiveness of institutional and individual performances are judged in terms of contributions made by them to achieve a goal.

A specific target is set and a time period at the end of which the actual results achieved are measured against the original goal.

MBO introduced the SMART criteria wherein goals must be

– S – Specific
– M – Measurable
– A – Achievable
– R – Relevant
– T – Time-specific
Later many added –
– E – Extendable
– R – Recorded

Stages of modern management

1) Setting Objectives

2) Action Planning

3) Performance reviews

Process / Functions / Steps in modern management
(Gehna Put Peanuts Down My Cozy Fur Coat)

1) Goal Setting – Realistic short-term/long term goals are laid down

2) Programme Planning – Thinking ahead on all fronts is important. Eg. Annual Plan, Unit Plan, Lesson Plan, etc.

3) Participation – All member should participate and work in harmony as a team

4) Development & Improvement – The only constant in life is change. And changing and improving for the better prevents stagnation and leads to progress and development.

5) Motivation – Involving people with proper incentives and morale boosting will lead to better performance.

6) Control – Monitoring processes and people forms an important aspect.

7) Feedback – Feedback from all members will point out lacunae and areas that need greater attention.

8) Compensation – Rewards, increments, salaries, etc. should be fair and as per quality of efforts.


Thus efficient modern management is important and necessary to progress and work smoothly and complete tasks on time.

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