Meaning, Happiness, and Peace

Michael Cortrite Ph.D.

PUBLISHED:

September 16, 2024

There seems to be a general misconception about the famous phrase from the United States Declaration of Independence; “Life. Liberty, and the Pursuit of Happiness.” Jeffrey Rosen (2024),  in his book The Pursuit of Happiness: How Classical Writers on Virtue Inspired the Lives of the Founders and Defined America emphasizes that the founding fathers of America were deeply  influenced by classical writers who advocated for a life of virtue as the pathway to true happiness. Rosen argues that the pursuit of happiness was not meant to be about accumulating 

wealth or achieving fame, but about living a life of purpose, guided by the intrinsic rewards of  virtue and service to others. These classical ideals, which shaped the very foundation of American society continues to resonate today, particularly in the context of grassroots movements that seek to promote peace, justice, and the common good.


According to Moss (2017), the biggest misconception of the happiness industry is that happiness is an end, not a means. We think that if we get what we want, then we’ll be happy. We tend to see “being happy” as the end goal. But it turns out that what’s really important is the journey. Another misconception about happiness is that happiness is being cheerful, joyous, and content all the time—always having a smile on your face. It is not. Being happy and leading a rich life is about taking the good with the bad and learning how to reframe the bad.


One of the paradoxes of being human is that while it may make sense for us to pamper and pleasure ourselves because we tend to think that this will make us happy, the reality is that the key to living a meaningful and fulfilled/happy life is caring for and helping other people. Some would say that caring more about other people’s needs than our own is the key to a more peaceful world.


According to Peter Drucker, the father of modern management, no society can properly function unless it gives the individual member social status, function, meaning, and dignity and unless the decisive social power is legitimate power. If the individual is not given these things there can be no society but only a mass of social atoms flying through space without aim or purpose (Drucker Institute).


Toubiana and Yair (2012) state, “It is frustratingly difficult to cite a significant modern management concept that was not first articulated, if not invented by Peter Drucker.” Drucker was born in Austria and was in his early 20s when he witnessed Adolph Hitler and the Nazis taking control of Germany. This event, along with publishing his first of 39 books in 1939, The End of Economic Man: The Origins of Totalitarianism, set his lifelong goal of a peaceful world. Drucker was determined that fascism, totalitarianism, and autocracy could be eliminated by making sure that societies’ function is to give all people’s lives meaning and status. Without status and function, people could allow autocracy and totalitarianism (Drucker Institute).


Drucker (1995 p.29-30) thinks that all people need to have meaning. He said:


For the individual without function and status, society is irrational, incalculable, and shapeless. The “rootless” individual, the outcast—for the absence of social function and status casts a man from the society of his fellows—sees no society. He sees only demonic forces, half sensible, half meaningless, half in light, and half in darkness, but never predictable. They decide about his livelihood without the possibility of his understanding them. He is like a blindfolded man in a strange room, playing a game of which he does not know the rules; and the prize at stake is his own happiness, his own livelihood, and even his own life.

           

A man in such a state probably has little chance of being fulfilled, rational, or peaceful. There are many reasons for a loss of meaning, status, or function, but one of the most obvious and easiest to understand is unemployment. Not only is unemployment a potential economic catastrophe, but it also entails social disenfranchisement. Prolonged unemployment can lead to the loss of self-respect, which has nothing to do with the person's actions (Maciariello and Linkletter 2011). 


In her book The Power of Meaning (2017), Emily Esfahani Smith says that many people spend their lives pursuing happiness and eventually end up asking, “Is this all there is?” Smith says that to have a fulfilling life, one needs meaning in their life. Meaning comes from belonging to and serving something beyond yourself and developing the best within yourself. Creating meaning in your life requires some degree of selflessness (Seligman 2002). Smith cites studies that show people who have meaning in their lives are more resilient, do better in school and work, and live longer. She refers to the four pillars of a meaningful life. They are belonging, purpose, transcendence, and story-telling. 


Belonging (bonds to family and friends) means being in relationships where you are intrinsically valued for who you are. Some groups, such as gangs or cults, value people for what they believe or who they hate, not for who they are. 


Purpose is less about what you want than about what you give. It gives you something worthwhile to live for. A classic example would be raising children. For some people, their work gives them purpose. The important thing is to contribute and feel needed. What John Bunyan said about meaning and purpose should be kept in mind; “You have not lived today until you have done something for someone who can never repay you.” (Bunyan 2020).


Transcendence is stepping beyond yourself; you get lost in a meaningful task, your sense of self fades away, and you are less self-centered. Transcendence can result in a person being more generous when helping people.


Storytelling is the story you tell yourself about yourself. It gives people clarity about themselves and helps them understand how they became themselves. A person’s story can change because their lives evolve however they are still constrained by the facts.


Too many people today have made the mistake of anointing a job as their main source of meaning. Seventy percent of employees say their jobs define them. Meanwhile, Gallup data shows that only 12.5 percent of us are “totally and utterly engaged” at work. (Wellman 2024)


Victor Frankel had much to say about meaning in his book, Man’s Search for Meaning. He was a psychiatrist, born in Austria, and was a prisoner in some of the Nazi concentration camps during the Holocaust. He used his psychiatrist training to observe what was happening to himself and the other prisoners. One of his observations was that paradoxically, prisoners who shared their last scrap of bread with a prisoner who looked like they needed it tended to live longer than those who stole and ate other prisoners' last scrap of bread. One would think the prisoner who got more to eat because of stealing others’ bread would live longer. But Frankl realized that the prisoners who help others by sharing their food had a reason to live—to help others. They had higher self-esteem than the prisoners who stole from others. They had meaning in their lives. They had a purpose to live. Frankl often used the Nietzsche quote, “He who has a why to live, can bear with almost any how.” Frankl saw what he termed the last of human freedoms, the freedom to choose one’s attitude in any circumstances.


Frankl wrote Man’s Search for Meaning after the Holocaust and created a new psychiatrist discipline, Logotherapy, which is still widely used today. He contends, "The more one aims for success and makes it a target, the more you will miss it. For happiness, like success, it cannot be pursued; it must ensue, and it only does so as the unintended side-effect of one’s personal dedication to a cause greater than oneself or as a by-product of one’s surrender to a person other than oneself.” In other words, Frankel emphasizes selflessness, which is a prerequisite to having meaning in your life, such as giving time and (or) valuables to help others.


In a TED Talk titled “It’s Time to Reclaim Religion,” Rabbi Sharon Brous tells us that “Our World is on Fire.” The world is divided because of extremism. Religions and other institutions can continue to increase divisiveness, or they can oppose extremism in all its forms to stop wars, oppression, radical individualism, and discrimination. If people, instead of being apathetic, told themselves, I can do something, we could live in a more peaceful, loving, and just world that values peace and dignity for all.


The Warren Berger (2018) book, The Book of Beautiful Questions, has a great quote to get people communicating, “What if I replace judgment with curiosity?” P.124. He posits that if people would only understand that just because someone knows that he or she is right, they may or may not be. If there is a disagreement about who is “right,” both sides could avoid an altercation if they ask the “other” person to explain their reasoning for their position because they are genuinely curious. And, of course, the person expressing their curiosity needs to be willing to listen and be willing to change their position if need be. (Berger 2018)


Joshua Becker (2022) says that one of the reasons for living a meaningful life is so that when you get to the end of your life, you are at peace with more satisfaction and less regret and guilt over how you spent your life. Also, a person living a meaningful life is peace-loving and promotes peace in others.


Joshua Becker (p. 157), posits that. fame, wealth, and power are not things to strive for in lieu of living a meaningful life. There are some things worth becoming famous for that can make a life more meaningful: kindness, perseverance, faithfulness, empathy, joy, encouragement, peacemaking, and loving. 

 

REFERENCES:


Becker, J. (2022) Things that matter: Overcoming distraction to pursue a more meaningful life. Penguin Random House WaterBrook.


Berger, W. (2018 The book of beautiful questions. Bloomsbury Publishing. (2018).


Brous, S. (2017). It’s time to reclaim religion. TED talk. https://www.ted.com/talks/sharon_brous_it_s_time_to_reclaim_religion


Bunyan, J. Updated by Vermilye, A. (2020) Pilgrim’s Progress. Brown Chair Books.


Drucker Institute 1999. Claremont Graduate Institute.  https://drucker.institute/about/drucker-archives/


Drucker, P. (1995) The future of industrial man. Routledge.


Frankl, V. (1959) Man’s search for meaning: An introduction to Logotherapy. Beacon Press.


Maciariello, J. Linkletter, K. (2011) Drucker’s lost art of management: Peter Drucker’s timeless vision for building effective organizations. McGraw-Hill.

 

Moss, J. (2017). Happiness Isn’t the absence of negative feelings. In Harvard Business School Publishing Corporation (Ed). Emotional Intelligence: Happiness.


Rosen, J. 2024. The pursuit of happiness: How classical writers on virtue inspired the lives of the founders and defined America. Simon & Schuster.


Seligman, M. (2002) Authentic happiness: Using the new positive psychology to realize your potential for lasting fulfillment. Simon & Schuster.


Toubiana, M. Yair, G. (2101) The salvation of meaning in Peter Drucker’s oeuvre. Journal of Management History. Vol. 18. Iss. 2. 178-199.


Wellman, J. (2024) You only die once: How to make it to the end with no regrets. Voracious.


By Byron Ramirez, Ph.D. and Bo Yang, Ph.D. April 23, 2025
When we describe leaders, we often cite the importance of their ability to influence others. For decades scholars have focused their work on studying and describing how this capacity to influence works and why it tends to elicit a positive response from people, who are inspired to follow the leader’s vision. We have read about that mystifying ability to persuade others and guide them towards a common purpose. However, when analyzing the leader there is another aspect we ought to also consider - where does their power originate from, and is this power considered legitimate? What these questions intend to imply is that when we analyze the interactions of leaders and their followers, we should contemplate how their relationship is built, and moreover, how the power of the leader is used to shape those relationships. Let us first discuss what power is and why it is important. Power in its general sense is the capacity to influence, lead, dominate, or impact the actions of others. The German sociologist, Max Weber referred to power as the capacity to create a desired outcome within a social relationship. As such, power enables the leader to influence and lead the actions of people. Legitimate power is often referred to as power that the person derives from formal position or office held in the organization's hierarchy of authority. And it is this notion of authority that helps legitimatize power in the eyes of the follower. For instance, a manager has legitimate power over their subordinates, allowing them to assign tasks. Teachers possess legitimate power in the classroom, enabling them to assign grades and set learning objectives. We can then surmise that legitimate power is based on the authority granted by a position or title. And individuals will comply with requests or decisions made by the person with authority because they recognize the authority of the person holding the position. However, unlike authority, which implies legitimacy, power can be exercised illegitimately. As history shows us, there are plenty of examples where power did not originate simply from a place of authority and legitimacy, and instead flowed from coercion. Joseph Stalin and his Great Terror campaign certainly comes to mind. And although Stalin did have a position of “authority”, much of his power and influence were coercive and deceptive in nature. In fact, Stalin had used his political positions throughout his life to “remove” opponents while bolstering his image in the pursuit of greater personal power. According to biographer Robert Service (2005), Stalin took pleasure in degrading and humiliating people and kept even close associates in a state of "unrelieved fear”. Of course, there are other instances in which coercive power is used to elicit compliance. A more common example of coercive power is a manager who uses threats of demotion or termination to get employees to comply. And so, when we consider the influence a leader (manager) has, we ought to consider the very nature and source of their power. Do people follow the leader because they are truly inspired by the leader’s vision? Or do they follow because they have no other choice? Managers who threaten the job security of others to ensure compliance, leaders who exploit their positions for personal gain, or individuals who rise through favoritism rather than merit – are manifestations of illegitimate power. Regardless of context, illegitimate power tends to erode morale, limit creativity, and foster toxic environments where people operate out of fear rather than purpose. Illegitimate power wields influence without moral justification, ethical values, or the consent of those affected. And because this form of power often derives from manipulation, coercion, intimidation, or exploitation rather than genuine respect for people, it undermines trust, breeds fear, and corrodes the ethical foundations of organizations and communities. Coercive leaders who use threats, punishment, or psychological pressure to force compliance, may certainly achieve short-term results, but at a significant long-term cost. Coercion strips individuals of their autonomy and creates environments of resentment and disengagement. People may comply outwardly, but internally they may withdraw, resist, or leave. Furthermore, coercive leadership discourages open dialogue and constructive feedback, which are essential for innovation, growth, and continuous improvement. When fear becomes the primary motivator, organizations and societies become stagnant, rigid, and vulnerable to collapse. And this brings us to an important question – what does legitimate power look like? On this issue, Peter Drucker offers unique insights. In his first book, The End of Economic Man (1939), Drucker discussed the issue of legitimate power (although he did not use the term legitimate power, but rather the justification of authority). Drucker believed that the power of rulers must possess legitimacy, a tradition that has continued in Western civilization since Plato and Aristotle. In Drucker’s view, legitimate power involves a functional relationship between power, social beliefs, and social realities: does power commit to social beliefs? At the same time, can it effectively organize social reality based on that commitment to create order? In his books, Concept of the Corporation (1946) and The New Society (1950), Drucker began to use both terms legitimate power and leadership simultaneously. Drucker would go on to argue that a government that commits to the well-being of its people can be said to have legitimate power. Over time, Drucker shifted his analysis of legitimate power from the political realm to social organizations. According to Drucker, if the management of a social organization (such as a company) claims that its principal purpose is to benefit employees, this particular focus would constitute an abuse of power. Instead, Drucker argued that the primary mission of an economic organization is to always achieve economic performance, thereby contributing to society – and this is in fact, the source of the legitimacy of corporate management's power. Of course, a company is also a community. For employees, management undoubtedly holds power and must exercise it. However, the legitimacy of management’s power does not come from the commitment to benefit employees, but rather from two functions: 1. Through institutional design and innovation, shaping effective community communication, thereby enabling middle-level and lower-level employees to gain an overall vision of the organization. This allows employees to have a managerial attitude. 2. By setting clear and reasonable performance standards, prompting employees to take responsibility and achieve success through effective work. If management can perform these functions within the organization, then it is considered to exercise legitimate power. In Drucker's early works, exercising legitimate power was almost synonymous with leadership. Drucker was not enthusiastic about discussing the personal style or charm of leaders, and he was even less inclined to associate leadership with a mystifying ability to persuade others, especially if such persuasion appealed to propaganda, indoctrination, or mental manipulation. For Drucker, discussing leadership primarily meant enabling power to function effectively. Therefore, leadership is not a matter of individual leaders' techniques and styles, but rather a matter of the responsibility and function of power itself. We can surmise from these functions that legitimate power aligns with the goals, beliefs, and aspirations of the people being led. Leaders who wield this kind of power do not need to resort to threats or manipulation. Instead, they inspire, guide, and collaborate. Their authority is accepted because it is seen as fair, earned, and beneficial to the collective. It is vital to foster leaders who operate from legitimate power—power that is granted through trust, expertise, shared values, and recognized authority. Legitimate power is grounded in the formal authority granted to a manager through their role within an organization, but its true strength comes from how that authority is exercised. Unlike coercive power, legitimate power is perceived as rightful and appropriate because it is based on clear expectations, mutual respect, and established structures. When managers consistently act with fairness, integrity, and transparency, their authority is more likely to be accepted and trusted by their teams. This creates a healthy power dynamic where employees feel secure in leadership decisions, understand their roles, and are motivated to contribute toward shared goals. Managers can build legitimate power by aligning their actions with the organization's values and demonstrating competence, consistency, and accountability. For instance, making decisions that reflect the organization’s mission and treating all team members equitably strengthens a manager’s credibility. Communication is also key—leaders who listen actively, provide clear direction, and explain the rationale behind their decisions foster trust and buy-in. Investing in personal growth, staying informed, and modeling a strong work ethic all reinforce the perception that a manager has earned their position and is acting in the best interest of the team and the organization. When managers lead through legitimate power, the benefits to the organization are substantial. Teams are more engaged, morale improves, and collaboration increases because people trust the leadership and feel aligned with the organization’s purpose. This creates a positive feedback loop where employees are more likely to take initiative, innovate, and remain committed, reducing turnover and boosting overall performance. In essence, legitimate power forms the foundation of a sustainable leadership culture—one that empowers individuals, strengthens organizational integrity, and drives long-term success. Developing leaders who influence through legitimate power requires a shift in how we define and nurture leadership. It involves prioritizing emotional intelligence, ethical reasoning, transparency, and empathy. Such leaders model integrity and authenticity, aligning their decisions with shared values and long-term visions. They create environments where people feel valued, heard, and empowered. In turn, this fosters loyalty, engagement, and a strong sense of purpose. To build healthier workplaces and more just societies, we must champion leaders who embody legitimate power: those who influence not by fear, but by vision, credibility, and alignment with shared values. This approach not only promotes ethical leadership but also cultivates trust, innovation, and collective well-being. References Drucker, P. F. (1946). Concept of the corporation. New York: John Day Company Drucker, P. F. (1939). The end of economic man: A study of the new totalitarianism. New York: John Day Company Drucker, P. F. (1950). The new society: The anatomy of the industrial order. New York: Harper Service, R. (2005). Stalin: a biography. Belknap Press of Harvard University Press. Weber, M. (1965). Politics as a vocation. Fortress Press.
By Bo Yang Ph.D. April 23, 2025
In China, you can see countless interviews with successful entrepreneurs on TV, online, or in magazines. The same is true in the U.S.—probably even more so. I imagine this stylish trend must have originated in America. These interviews often show entrepreneurs sincerely talking about childhood dreams and beliefs they’ve held for decades. They’ll share how they stayed committed to those dreams and step by step made them come true. Over the past few years, I’ve had the chance to meet a few Chinese entrepreneurs—some of whom I had previously seen on TV or in magazines. Once we got to know each other better, they started sharing stories that were quite different from their media narratives. They admitted that their childhoods were hardly filled with grand dreams. What truly pushed them into business were hunger, poverty, cunning—or sometimes, just luck. I am not a nihilist, nor am I trying to say that dreams and beliefs are nothing but marketing gimmicks, exposed through off-the-record conversations. What I mean is: this is a realist world. It’s entirely possible for people to achieve business success through the pursuit of profit, intelligence, hard work, and a bit of luck. Many people don’t fully understand how they even became successful—until they already are. Of course, the world isn’t just about realism. Some people, once successful, begin to seek meaning in their lives. They want to keep doing valuable things—not just by luck, but through genuine understanding. At this point, they need to go back and reexamine what business really means. So what does business really mean? If you asked a Chinese scholar from a thousand years ago, he would most likely say that business is linked to something like original sin. Of course, Chinese culture doesn’t contain the Christian idea of original sin, but when talking about commerce or merchants, scholars would often describe businesspeople as inherently tainted by something spiritually corrupt. If you asked a classical economist like Adam Smith, you’d get a much more generous answer. Classical economists openly accept the profit motive as part of human nature, and they’d go further to say that this motive is a major driver of civilization. The accumulation of social wealth, improved quality of life, and progress of civilization all rely on individuals—driven by profit—to create rules, use their talents, and generate value. After classical economics, this line of thinking became the default lens for understanding business and commercial civilization. Even though Marxism and Nazism have violently attacked the profit motive, modern commercial civilization has not only survived—it has thrived. The great achievement of classical economics was to build a causal relationship between the pursuit of profit and the progress of civilization. But the question remains: is that all there is? The entrepreneurs I know, who fought their way through tough business landscapes, would never doubt the role of the profit motive. But some of them also have a vague sense that business isn’t just about making money. After a few successful ventures, some start to long—consciously or unconsciously—for cleaner businesses, meaningful businesses, even beautiful ones. They may not be able to articulate this impulse, so instead, they go on TV or into magazines and talk about childhood dreams and ideals. These aren’t real memories—they’re symbolic stories. What exactly drives commercial civilization? Peter Drucker agreed with the classical economists, but only halfway—because they only got it halfway right. Drucker never denied the profit motive. But he believed that all successful business activity is a discovery and creation of order. And that’s what makes it so important. Not only do entrepreneurs and managers need to rethink the meaning of business, but ordinary citizens in modern society do too. Drucker’s book Managing for Results, published in 1964, is still seen by many as a hands-on business guide—and rightly so. Few of his works are as focused on practical application, packed with diagrams and terminology. But what’s truly interesting about the book is how, while walking readers through practical operations, Drucker is also helping them rethink what business actually is. He starts right where most businesspeople do—with the desire to make money. But he warns: not every boss who makes money actually understands how they made it—or which products brought in the profit. To figure that out, they have to understand their business as a whole. But doing that means stepping out of personal ego and illusions of success. It means knowing which accounting method reveals the truth. It means identifying which products are making money—and then asking why. And the right way to find out why a product makes money isn’t to ask the product manager, engineer, or designer—it’s to understand the customer’s needs. If the boss and the product manager are serious about understanding the customer, they’ll realize the customer isn’t buying a product—they’re buying value, value that meets a particular need. And customer needs change constantly—just like the weather. Even the smartest people can only partly predict these shifts. The wise approach is to treat change as a given and figure out how to deal with it, manage it, and adapt to it. Once they accept this truth, bosses and managers begin to see the market differently. Results are not things created inside a company—they’re things selected by customers in the marketplace. Profit isn’t wealth created by the company and kept by it; it’s a risk buffer that allows the company to stay in the market. Innovation isn’t a CEO suddenly struck by inspiration; it’s people with entrepreneurial spirit using new combinations of resources to meet customer needs and produce performance. A boss who’s serious about business—and honest about reality—can start out wanting to make money and end up with an entirely new perspective, and a deeper understanding of business. At the end of Managing for Results, Drucker wrote something striking. He believed that not only entrepreneurs and managers need to understand business—they have a responsibility to help the public understand it too. They must become educators in civil society. Even today, in modern, industrialized nations with booming economies, many well-educated citizens still don’t understand business. They look down on it. Some even hate it. They don’t lack conscience—if anything, they’re overflowing with it—but they lack imagination and understanding. They don’t see that business is actually a form of rational exchange and creative mutual benefit between people. And because they don’t understand this, they not only despise business—they become impatient with any kind of rational exchange or creative collaboration. Instead, they get used to imposing their moral preferences on others. That kind of moral arrogance keeps producing hatred and division in modern society. Of course, Drucker didn’t believe business could solve all of society’s problems. But he did believe that the motive behind commercial civilization isn’t only about profit. He also believed that civilized business itself is a form of education for modern society. Because civilization—no matter where it appears—always involves understanding, creating, sharing, and exchanging organizational frameworks. As he wrote: “The economic task, if done purposefully, responsibly, with knowledge and forethought, can indeed be exciting and stimulating, as this book has, I hope, conveyed. It offers intellectual challenge, the reward of accomplishment, and the unique enjoyment man derives from bringing order out of chaos.” Drucker often quoted the British philosopher Alfred North Whitehead (1861–1947). As far as I know, Whitehead may be the only modern philosopher—besides Drucker—who truly understood the beauty of business. In his 1925 book Science and the Modern World, Whitehead wrote something strikingly similar: “Art is not limited to sunsets. A factory—by virtue of its machines, its community of workers, its service to the general public, its reliance on organizational and design genius, and its potential as a source of wealth for shareholders—is a living organism rich with value.” But Whitehead also said something even more important, in The Adventure of Ideas (1933): “Plato was right: The creation of the world—the world of civilized institutions—is the victory of persuasion over force.” And business civilization—especially the kind that Drucker and Whitehead envisioned, one that creates order and beauty—is perhaps the most brilliant demonstration of how persuasion can triumph over conquest.  As Drucker said, it’s not just businesspeople who need to understand this. Every citizen of the modern world should too. Because even now, the opposite impulse is still alive—the desire to replace persuasion with conquest and turn business into a game of domination.
By Robert Kirkland Ph.D. April 21, 2025
When Satya Nadella assumed the role of Microsoft’s Chief Executive Officer in February 2014, the company was experiencing the early symptoms of organizational sclerosis. Though still profitable, it had lost ground to more agile competitors in the mobile and cloud sectors. Internally, Microsoft had become fragmented—defined more by turf battles than innovation. The challenges Nadella inherited resembled those Peter Drucker articulated decades earlier in his conceptualization of the Functioning Society of Institutions (Drucker, 1946). Drucker’s view—deeply shaped by the failure of social cohesion in interwar Europe—called for institutions to reorient themselves not just around efficiency, but around meaning, moral purpose, and self-development. Nadella’s Microsoft has arguably become one of the clearest corporate embodiments of Drucker’s philosophy of Management as a Liberal Art (Drucker, 1989). Much of Nadella’s success can be attributed to his emphasis on empathy and cultural reinvention. Prior to his appointment, Microsoft was widely seen as a combative, insular organization (Lohr, 2014). Nadella moved swiftly to change this. In his internal communications and public interviews, he spoke often of empathy—not as a rhetorical flourish, but as a managerial imperative. This commitment mirrored Drucker’s belief that management must engage the whole human being, acknowledging both rational capability and emotional complexity (Drucker, 1989). Drucker emphasized that organizations ought to be places where people grow in both skill and character. Nadella’s redefinition of leadership as empathetic listening and continuous learning operationalized that belief in a modern, corporate context. At the center of Nadella’s early cultural transformation was the introduction of a "growth mindset," a concept he borrowed from psychologist Carol Dweck (Dweck, 2006). Employees were encouraged to ask questions, seek feedback, and approach problems with humility. Drucker had long argued that a functioning institution required the cultivation of self-awareness and wisdom (Drucker, 1993). Nadella, in fostering a company-wide learning orientation, aligned Microsoft's trajectory with the MLA principle that personal development and organizational mission must progress hand-in-hand. The result was an environment that encouraged intellectual humility without sacrificing performance. Equally important in understanding Nadella’s alignment with Drucker’s MLA framework is the redefinition of Microsoft's mission. Under Steve Ballmer, the mission had been tightly product-focused: "a PC on every desk and in every home." Nadella’s version was broader and more aspirational: “to empower every person and every organization on the planet to achieve more” (Microsoft, 2017). Drucker might have called this a shift from a narrow economic mandate to a wider societal purpose. In The Concept of the Corporation, Drucker (1946) warned against corporations existing as islands of profit, detached from community responsibilities. Nadella’s mission reframed Microsoft not just as a tech vendor but as a social actor—a stakeholder in global development. Drucker’s emphasis on function and status within a functioning institution also finds modern expression in Nadella’s restructuring of Microsoft's performance evaluation system. The previous stack-ranking model—which pitted employees against each other—was scrapped (Wingfield, 2013). It had rewarded individual performance over team cohesion, eroding trust and stifling creativity. Nadella implemented a performance system that rewarded collaboration, curiosity, and contributions to others’ success. This pivot acknowledged Drucker’s claim that organizations succeed not when individuals compete within them, but when their actions contribute meaningfully to a shared mission (Drucker, 1989). In accordance with Drucker’s MLA principle that organizations must exist within society—not apart from it—Nadella also led Microsoft into a new era of corporate social responsibility. Under his watch, Microsoft committed to becoming carbon negative by 2030, developed AI tools for accessibility, and began publicly advocating for ethical technology development (Microsoft, 2020). Drucker (1999) asserted that institutions must balance individual rights with societal duties. Nadella’s policies gave concrete expression to this ideal, embedding corporate ethics into strategy, not as appendages but as essential elements of long-term resilience. Crucially, Nadella has approached leadership with the recognition that authority alone does not confer legitimacy. Drucker emphasized the importance of persuasion over coercion, process over fiat (Drucker, 1990). Nadella, rather than enforcing top-down directives, frequently invites employee participation in major shifts. Microsoft’s move into open source software—once unthinkable—was carefully socialized within the organization and presented not as an edict, but as a necessary cultural and business evolution (Miller, 2018). The broader implications of Nadella’s leadership can be understood through Drucker’s transdisciplinary lens. Drucker saw management as a “liberal art” because it required the application of ethics, psychology, history, and even theology in decision-making (Drucker, 1989). Nadella frequently cites literature, philosophy, and biography in his public remarks. His personal reflections often involve moral and philosophical introspection, underscoring Drucker’s belief that leadership is a humanistic endeavor requiring breadth of thought and emotional depth (Nadella, 2017). Despite Microsoft’s technological focus, Nadella’s management philosophy resists technocratic reductionism. His belief that people—not platforms—are the key to innovation affirms Drucker’s warning that effective management is not merely quantitative but judgment-based (Drucker, 1990). Microsoft’s market capitalization under Nadella has more than tripled, underscoring that an ethical, human-centered organization is not incompatible with economic success (Nasdaq, 2024). As Drucker argued in The New Realities, leadership in a knowledge society must move beyond command structures and embrace complexity, diversity, and continual learning (Drucker, 1989). Nadella has not only embraced these values—he has embedded them into Microsoft’s organizational DNA. His leadership demonstrates that Management as a Liberal Art is more than a theoretical framework; it is a viable, proven, and necessary strategy for organizational renewal and social relevance in the 21st century. References · Drucker, P. F. (1946). The concept of the corporation. New York: The John Day Company. · Drucker, P. F. (1989). The new realities: In government and politics, in economics and business, in society and world view. New York: Harper & Row. · Drucker, P. F. (1990). Managing the non-profit organization: Practices and principles. New York: HarperBusiness. · Drucker, P. F. (1993). Post-capitalist society. New York: HarperBusiness. · Drucker, P. F. (1999). Management challenges for the 21st century. New York: HarperBusiness. · Dweck, C. S. (2006). Mindset: The new psychology of success. New York: Random House. · Lohr, S. (2014, February 4). Satya Nadella, Microsoft’s new chief, is a company man. The New York Times. https://www.nytimes.com/2014/02/05/technology/satya-nadella-named-chief-of-microsoft.html · Microsoft. (2017). Our mission. https://www.microsoft.com/en-us/about · Microsoft. (2020). Microsoft will be carbon negative by 2030. https://blogs.microsoft.com/blog/2020/01/16/microsoft-will-be-carbon-negative-by-2030/ · Miller, C. C. (2018, October 22). How Satya Nadella remade Microsoft as an open source company. The New York Times. https://www.nytimes.com/2018/10/22/technology/microsoft-open-source.html · Nadella, S. (2017). Hit refresh: The quest to rediscover Microsoft’s soul and imagine a better future for everyone. Harper Business. · Nasdaq. (2024). Microsoft Corporation (MSFT) stock performance. Nasdaq.com. https://www.nasdaq.com/market-activity/stocks/msft · Wingfield, N. (2013, November 12). Microsoft alters employee review process. The New York Times. https://www.nytimes.com/2013/11/13/technology/microsoft-alters-employee-review-process.html
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