Management as a Liberal Art Research Institute

Human/Technology Collaboration: Tomorrow's Knowledge Society

Karen Linkletter Ph.D.

PUBLISHED:

October 7, 2024

Welcome to the last installment of this blog series, where we bring knowledge, wisdom, and technology together. How can human wisdom and technology, specifically AI, collaborate to redefine knowledge, knowledge work, and a knowledge society?


As we saw in the first installment, the nature of knowledge has long been a topic of discussion. Peter Drucker was concerned with the relationship between knowledge and power, and the changing nature of knowledge, particularly related to technology. In his twentieth century era, new technology in the form of atomic weapons unleashed knowledge that contained the power to destroy humankind. With this kind of technological knowledge came enormous responsibility. Technological advances related to computing in Drucker’s time carried with them fears of economic and social turmoil. Would automation of manufacturing processes and the introduction of the computer to knowledge work result in the elimination of jobs and a massive restructuring of the economy? In Drucker’s view, automation was part of a larger process of seeing production as a whole rather than a series of small parts. The new technology would cause disruption, but this was part of the long history of technological advancement in societies. The computer itself was an order taker, a human creation that was an instrument for efficiency and more productive use of knowledge work.


Today, we still wrestle with the same questions of knowledge and power and the potential for social disruption due to technological advancement. New knowledge still wields enormous power – now to influence emotions, attitudes, and beliefs, undermining the very nature of truth and trust in institutions. Rather than the physical destruction of nuclear weapons, deep fakes, data breeches, and financial scams using AI and targeted algorithms can call into question the essence of reality. Can we trust our own ears and eyes, much less the dominant institutions of society? Drucker’s order-taking computer, the “moron” of his writing, is now capable of generating material, not just computing. Generative AI is rapidly producing increasingly sophisticated texts, images, and music as it refines its use of available information and its relationship with the user.


As was discussed in previous installments, effective use of knowledge, or conversion of information into useful knowledge, involves wisdom and judgment. Here is where the differentiation between generative AI and human beings lies, and how we can better understand ways in which people and technology can collaborate effectively. Drucker often remarked that the key to effective problem solving was asking the right question, in essence, framing the problem itself. This was more important than finding the “right” answer; finding the” right” answer to the “wrong” question results in wasted time (and perhaps even more problems than the one you tried to solve). 


Simply put, AI is not designed for this function. In its most basic form, AI responds to information with a limited menu of options (chatbots for customer service, for example). In its more sophisticated iterations, it is designed to fulfill goals that are predetermined by humans. If we delegate a decision to an algorithm, there are parameters that have been set by humans. Algorithms are designed to execute; even more sophisticated tools, such as ChatGPT, require human instruction. They are designed to solve problems. They are not designed to decide which questions to ask to solve the problem (although one function they can serve is to help guide people in figuring out possible questions to ask). In this sense, even today’s AI reflects Drucker’s view of computers as order-takers.


In our discussion of wisdom, we acknowledged the human problems of misinformation, narrow focus, filtering flaws, and bias as barriers to good judgment. If we are to partner with technology in the form of AI, we need to be even more cognizant of our own flaws as human beings. We are the ones driving the technology and its use. How does the delegation of decision making to algorithms perpetuate the flaws that already exist in our own judgment? What are the consequences? At what point does the decision to delegate knowledge work to a machine that has no wisdom create more social problems than it generates benefits? These are the questions we need to be asking. This requires higher order thinking that, dare I say, Drucker proposed in his concept of Management as a Liberal Art. With his pillars of knowledge, self-knowledge, wisdom and leadership, Drucker gave us valuable tools and lessons for navigating our new world of knowledge work.


So, how can we effectively collaborate with AI to create an effective knowledge society for tomorrow? 

·      Understand the limitations of technology: AI will reflect the quality of the information it uses. To use a tired phrase, “garbage in, garbage out.” Algorithms are also susceptible to the cultures, biases, and limitations of human beings that create them. Technology is a human creation. It is not something outside of us. Drucker told us this beginning in the 1950s!

·      Understand the limitations of human beings: People will use technology to do work if they don’t want to do it. Students will use ChatGPT to write papers. People will use deep fakes and other techniques to advance their causes. This does not mean the technology is bad. It just means we need to learn how to regulate and monitor its use. Drucker used the concept of Federalism to discuss the need for guardrails and checks/balances. Our global society is having these conversations about AI now.

·      Know how to leverage wisdom and judgment: Leaders need, more than ever, to emphasize skills that used to be referred to as “soft.” In a world awash with data and technology, we are increasingly in need of people well-versed in emotional intelligence, the ability to discern and make judgments in times of rapid change, and who can connect honestly with their team members. As we make decisions about delegating decisions to non-humans, the need for human connection will only increase. Our new knowledge society needs people who understand people, not just technology and data.  But it also needs people who can use their wisdom and judgment to know when to rely on technology. In the words of Scott Hartley, we need both the “Fuzzy” and the “Techie.”


Rather than seeing AI as a threat to our humanity, as competition to knowledge work, we should see it as a development that allows us to think deeply about our role as human beings in our new knowledge society. In her book, In AI We Trust, Helga Nowotny, Professor Emerita of Science and Technology Studies at ETH Zurich, argues for the importance of “cathedral thinking,” the ability to appreciate the value of shared, inherited practices that are constantly being reevaluated and realigned. It includes the kind of interdisciplinary, critical thinking I discussed in the previous installment, but it also involves connecting the past with both the present and the future. In Nowotny’s words: “Wisdom consists in linking the past with the future, advising what to do in the present. It is about rendering knowledge retrievable for questions that have not yet been asked” (Nowotny, 2021). I think Nowotny makes a clear case for the relevance of Drucker’s work today. We may be frightened by new knowledge and technology, the power it has, its impact on our lives. But this is the reaction of people who are ill-equipped for facing the reality of change, change which bears the possibility of not just disruption but also opportunity. As Drucker wrote almost 100 years ago, humans have survived technological change as part of the natural order of things. The key to understanding today’s technological change is to see it as a matter of collaboration, not competition. This is the trajectory of our new knowledge society: where human wisdom and judgment augment the power of AI. AI can help us understand our own limitations and flaws, which can, in turn, make us better as people. 


Agrawal, A., Gans, J., Goldfarb, A. (2023). How large language models reflect human judgment. Harvard Business Review, June 12.

Drucker, P.F. (1967). The manager and the moron. McKinsey Quarterly, 1 December. In Drucker, P.F. (1970). Technology, Management and Society. New York: Harper & Row.

Hartley, S. (2017). The fuzzy and the techie: Why the liberal arts will rule the digital world. Houghton Mifflin. 

Jarrahi, M.H. (2018). Artificial intelligence and the future of work: Human-AI symbiosis in organizational decision making. Business Horizons, 61 (4). 

Moser, C., den Hond, F., Lindebaum, D. (2002). What humans lose when we let AI decide. MIT Sloan Management Review, 63 (3), 11-15.

Nowotny, H. (2021). In AI we trust: Power, illusion, and control of predictive algorithms. Polity Press.


By Karen Linkletter Ph.D. January 6, 2025
On December 13, 2024, we lost a seminal management philosopher and theorist: Charles Handy. Like Peter Drucker, Handy was a social thinker and management theorist who emphasized the human side of work as more important than profits and valued individual growth and development in organizations. Handy was born in Ireland and studied at Oxford. In 1956, he went to work for Shell, working in Borneo, where he met his future wife, Elizabeth Hill. Disillusioned by corporate life, Handy left Shell in 1962 to study management at MIT in their executive program. Inspired by their humanistic approach, he returned to London in 1967 to start the London Business School. Handy knew Drucker and was a regular keynote speaker at the Global Drucker Forum in Vienna. The two men had much in common in terms of their approaches to management and social theory. Like Drucker, Handy became an author (although, unlike Drucker, Handy was a corporate executive before he turned to writing). Handy wrote not just on business but also society, serving as much as a social ecologist as Drucker was. In his pivotal book, The Age of Unreason (1989), Handy argued for the disruption of discontinuity – resulting in a new world of business, education, and work that was highly unpredictable. He rejected shareholder capitalism and saw the organization as a place for human purpose and fulfillment, based on trust. Like Drucker, Handy advocated federalism in organizations, disseminating authority and responsibility to the lowest possible levels. He also saw “the future that had already happened.” Handy coined the term “portfolio life,” where knowledge workers would increasingly work remotely and for multiple organizations. In the 1980s, he posited that society consisted of “shamrock organizations”: those that had three integrated leaves: full-time employees, outside contractors, and temporary workers. Handy thus foresaw the new “gig economy” and increasingly autonomy of knowledge work. Finally, like Drucker, Handy had a life partner who not only supported his career but was an independent woman with her own interests. Liz Handy, like Doris Drucker, was an entrepreneur who ran an interior design business, and later was a professional photographer and Charles’s business agent.  Minglo Shao, founder of CIAM, remembers Handy as a warm man who made several important contributions to what we see as the fundamentals of Management as a Liberal Art. We are thankful for Handy’s contributions to management theory and social thought, and for his legacy at the Global Drucker Forum in the form of the Charles and Elizabeth Handy Lecture Series.
By Richard and Ilse Straub with the Drucker Forum Team December 29, 2024
For 15 years, Charles Handy did us the enormous honor of choosing the Drucker Forum as a privileged platform for delivering his message to the world, and particularly to the younger generation in which he had such faith. Following up on our initial announcement of Charles’ passing Charles Handy (1932–2024) , we are honored to share a selection of his key contributions to the Forum with our wider community. Charles’ brilliant keynotes at the Drucker Forum have become legendary. Normally accessible only to members of the Drucker Society, from today they are available as recordings to the wider public for a period of 30 days. At the first centennial Forum in 2009, Charles talked about his debt to Peter Drucker while outlining his own fundamental management concepts that he had developed over the years. Two years later, he touched on the ideas of Adam Smith and demonstrated how much more to them there was than the celebrated “invisible hand” of self-interest. In his landmark closing address in 2017, pursuing a thread developed in his 2015 book The Second Curve, he called for a management reformation that would turn it into a tool for the common good – thus drawing the first contours of what we would announce six years later as the Next Management . We took to heart his exhortation not to wait for great leaders but “to start small fires in the darkness, until they spread and the whole world is alight with a better vision of what we could do with our businesses”. Management’s "second curve" will be the focus of the “Charles and Elizabeth Handy Lecture Series” in 2025. Following the loss of his beloved wife Elizabeth in 2018 and a severe stroke, Charles was much reduced in mobility in his last years – but not in his determination to continue spreading his message of hope to the world. He couldn’t participate in person in the Drucker Forum 2022, but he participated in a moving online interview with his son Scott, who directed young actors in a short performance of Beckett’s Waiting for Godot by Beckett to illustrate some points.  Charles also contributed valued digital articles for our blog and for Drucker Forum partners. Even during the most difficult period of his life he continued to write and develop his ideas in weekly columns for the Idler magazine. This entailed first memorizing the article, then dictating it and finally reviewing it by having someone it re-read to him – a remarkable feat of memory and determination. The article is a jewel and most appropriate for Christmas and the season of self-reflection. Have a wonderful Christmas, happy holidays and a healthy and prosperous New Year.
By Karen Linkletter Ph.D. November 19, 2024
Interview with Karen Linkletter at the 16th Global Peter Drucker Forum 2024  Video Interview
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