Management as a Liberal Art Research Institute

Peter Drucker's Perspective on Recent AI Developments: Exploring the Negative Views

Pooya Tabesh Ph.D.

PUBLISHED:

December 13, 2023

In my previous blog post, I engaged in a creative exercise to envision Peter Drucker’s viewpoints about the benefits of artificial intelligence (AI). In that post, I explored how Drucker would have viewed the importance of AI for enhancing effectiveness, efficiency, strategic focus, and creativity. I also highlighted that he would have probably advocated a symbiotic approach to decision-making where AI is used for complementing and augmenting human decision-making.


In this post, I would like to envision Drucker’s possible viewpoints about the problems or hurdles associated with AI use in organizations. What negative views could have Drucker potentially expressed if he provided such commentary on using AI in organizations?


I would like to remind readers that while Drucker have mentioned the term “Artificial intelligence” in his work (in “Managing for the Future” & “The Ecological Vision”), his definition of AI and the role he considered for machines (e.g., computers) in decision-making was limited by the technological capabilities of that time. In my posts, I have tried to explore Drucker’s view beyond those limitations.


AI and Problems in Decision-Making

As discussed in my previous post, Drucker’s reference to computers as “morons” might not be entirely accurate today in the world of effective generative and predictive AI models. However, one aspect of his criticism of computers, or their use for analysis, stays valid even in the age of advanced AI algorithms. AI tools and algorithms are developed by humans and are trained on available data. Thus, AI tools are only as accurate as the available data they are trained on. AI algorithms such as machine learning can exemplify the notion of “garbage-in, garbage-out” if trained on inaccurate, biased, or incomplete data. In addition, when data is not available or when the decision environment is entirely volatile, uncertain, and unpredictable such that data from the past is not relevant, intuitive decision making can generate better outcomes than data-driven analysis. Therefore, delegating the entire decision process to an AI system would be problematic, especially in complex environments where the accuracy and integrity of data are not guaranteed. I believe that Drucker would have also pushed back against the lousy use of these tools. In this sense, computers can still be considered morons!


Ethical Concerns Due to Lack of Human Judgment

Drucker placed a significant emphasis on human judgment in decision-making processes. He believed that effective management requires value-based judgment and ethical decision-making, qualities he considered uniquely human. Drucker would have been concerned about AI systems lacking the ability to understand complex human contexts, leading to potentially flawed (e.g., biased) decision-making processes. Indeed, Drucker viewed technology as a double-edged sword that can be used for good or evil. Drucker emphasized that technological knowledge requires responsibility, and innovation needs to serve society. In one of his books, The First Technological Revolution and Its Lessons, he wrote that “… a time of true technological revolution is not a time for exultation. It is not a time for despair either. It is a time for work and for responsibility" (Drucker, 1965).


Job Displacement and Inequality

Drucker was concerned about social inequality and believed that management, as a discipline, had a significant role in addressing societal issues. He wrote a lot about industrial workers and the challenges they had to face because of automation. With AI potentially concentrating wealth and power in the hands of a few, he would be similarly concerned about the dangers of widening the social gap through job displacements or wage gaps. For example, AI could replace many of the knowledge workers in the same way that automation replaced many of the industrial workers and created long-lasting societal and political challenges.

Drucker would have also advocated for policies or regulations that promote equitable distribution of the benefits of AI technologies, ensuring that the advancements benefit society. To avoid massive job displacement due to AI advancements, he would probably suggest technological training for all workers. He was a strong advocate of "lifelong learning" and "continuous learning" to keep up with advancing technological change.


Overreliance on AI

Drucker viewed technology as a methodology for work. He advocated for the thoughtful use of technology in organizations, focusing on how it aligns with human goals and values while improving productivity. This perspective implies a concern about overreliance on technology without a sufficient understanding of its possible negative implications. Drucker’s general philosophy on technology and management suggests that he would have been cautious about organizations and societies becoming overly dependent on AI. Drucker had written about concerns regarding workers being the "slave to the machine" in the era of automation.

Similarly, Drucker might have been concerned that an overreliance on AI for various tasks could diminish the use of creative thinking, hindering innovative problem-solving. However, this is an area where AI is supposed to help if it is used as a complement (not a replacement) to human thinking and judgment. As an example, recent advances in generative AI (e.g., ChatGPT) can be used to build on or enhance human imagination and thinking if it is used to complement human thinking for idea generation.


Concluding Remarks

In my two blog posts about Drucker and AI, I tried to bring parallels from Drucker’s writings about innovation, performance, and technology to demonstrate how Drucker’s existing body of work can contribute to discussing the benefits or challenges of artificial intelligence. This way, I showcased the consistency of his principles and the relevance of his ideas to contemporary technological challenges. 


Overall, and based on what I have communicated in my two blog posts on the subject, I believe that a human-AI collaboration framework in which AI is viewed to augment human judgment instead of replacing it would be in line with what Peter Drucker would advocate for if he had to take a position on AI use in organizations. Indeed, the human-AI augmentation paradigm itself must address many other important questions, such as the division of responsibility between machines and humans, that warrant dedicated discussions beyond the scope of this blog post.


By Byron Ramirez Ph.D. March 7, 2025
Motivation and performance in the workplace have been the subject of extensive research, yet a comprehensive understanding of their complexities remains elusive. While many organizations recognize the importance of motivation in driving employee performance, a significant number still approach motivation through simplistic, linear models that fail to capture its depth. Traditional methods, such as annual performance reviews with occasional praise or monetary bonuses, may have some impact, but they are often insufficient in fostering long-term employee engagement and sustained productivity. The relationship between motivation and performance is intricate, requiring a more nuanced and strategic approach from organizations. Motivation plays a crucial role in organizational sustainability. When employees are motivated, they exhibit higher levels of productivity, creativity, and commitment, all of which contribute to an organization’s long-term success (Ryan & Deci, 2000) and sustainability. However, many organizations continue to rely on outdated methods that focus primarily on the provision of extrinsic rewards. While financial incentives, such as salary increases and bonuses, can have a positive impact, research indicates that their effect on motivation is often temporary (Deci, Koestner, & Ryan, 1999). Once the external reward is removed, motivation levels tend to return to their previous state, highlighting the limitations of this approach. In contrast, organizations, and more specifically managers who have invested in fostering an environment that develops genuine engagement and trust, thus increasing motivation within their teams, have recognized the importance of intrinsic rewards. Intrinsic motivation, which arises from within the individual, is driven by factors such as personal growth, job satisfaction, and a sense of purpose (Pink, 2009). Employees who find meaning in their work and feel a sense of autonomy are often more engaged and perform better than those who are solely motivated by external incentives. This aligns with Self-Determination Theory, which emphasizes the role of autonomy, competence, and relatedness in fostering motivation (Deci & Ryan, 1985). Moreover, this also is consistent with the philosophy of Management as a Liberal Art which highlights the importance of independent decision-making. Despite the emphasis on extrinsic rewards, research suggests that human beings are only driven by them to a certain extent. Herzberg’s Two-Factor Theory (1959) highlights this by distinguishing between hygiene factors (such as salary and job security) and motivators (such as achievement and recognition). While hygiene factors can prevent dissatisfaction, they do not necessarily lead to increased motivation. Instead, true motivation stems from intrinsic factors that align with an individual's values, aspirations, and personal goals. Not every employee seeks to climb the corporate ladder; some may find fulfillment in mastering a specific skill, contributing to a meaningful project, or maintaining a healthy work-life balance. As a result, managers must move beyond a one-size-fits-all approach and develop a deeper understanding of the psychology behind motivation. Recognizing individual differences and tailoring motivation strategies to align with employees’ unique needs can lead to greater job satisfaction and improved performance (Gagné & Deci, 2005). This means fostering a work environment that promotes autonomy, provides opportunities for growth, and acknowledges employees’ contributions in meaningful ways. Organizations should also consider the long-term implications of their motivation strategies. Rather than merely offering short-term incentives, they should invest in creating a workplace culture that values intrinsic motivation. This can be achieved through leadership development programs, mentorship opportunities, and fostering a sense of community within the organization. When employees feel valued and supported (and listened to), their motivation is more likely to be sustained, ultimately benefiting both the individual and the organization as a whole. One effective strategy is providing employees with opportunities for continuous learning and professional development. Organizations can offer training programs, workshops, and tuition reimbursement to help employees acquire new skills and expand their expertise. When employees see that their company is invested in their growth, they are more likely to remain engaged and committed to their work. Furthermore, providing employees with challenging yet attainable goals can foster a sense of accomplishment and reinforce their intrinsic motivation. Additionally, fostering a culture of recognition and meaningful feedback is essential. While monetary rewards can provide temporary satisfaction, genuine appreciation and acknowledgment of employees' contributions create a lasting impact. Managers can implement regular check-ins, peer recognition programs, and public acknowledgments of achievements to make employees feel valued. When employees receive positive reinforcement for their efforts, they are more likely to stay motivated and take pride in their work.  While financial incentives and extrinsic rewards have their place in workplace motivation, they are not a panacea for enhancing performance. Motivation is a complex and deeply personal phenomenon that requires organizations to adopt a more holistic approach. By understanding the interplay between intrinsic and extrinsic motivation and recognizing the unique aspirations of employees, organizations can create an environment that fosters sustained motivation and long-term success. Investing in the psychological and professional well-being of employees is not just a moral imperative but a strategic necessity for organizational sustainability. References Deci, E. L., Koestner, R., & Ryan, R. M. (1999). A meta-analytic review of experiments examining the effects of extrinsic rewards on intrinsic motivation. Psychological Bulletin, 125(6), 627-668. Deci, E. L., & Ryan, R. M. (1985). Intrinsic motivation and self-determination in human behavior. Springer Science & Business Media. Gagné, M., & Deci, E. L. (2005). Self-determination theory and work motivation. Journal of Organizational Behavior, 26(4), 331-362. Herzberg, F. (1959). The Motivation to Work. John Wiley & Sons. Pink, D. H. (2009). Drive: The surprising truth about what motivates us. Riverhead Books. Ryan, R. M., & Deci, E. L. (2000). Self-determination theory and the facilitation of intrinsic motivation, social development, and well-being. American Psychologist, 55(1), 68-78.
By Michael Cortrite Ph.D. February 26, 2025
In 1995 Daniel Goleman published a groundbreaking book which introduced the leadership/management discipline to emotional intelligence.The book is Emotional Intelligence: Why it can matter more that IQ (Bantam 1995). Over the last 30 years more than 20 book and hundreds of papers have been published on emotional intelligence (abbreviated as EQ) extolling its effectiveness as a leadership concept. Many of the books were authored by Goleman with his co-writers Richard Boyatzis and Annie McKee. Given the current political climate in the United States and the world, the concept of EQ may be even more relevant today than it was 30 years ago. EQ shows an incontrovertible link between a leader’s emotional maturity and their performance as a leader. In the words of Daniel Goleman, “The research on EQ shows that the ‘good guys’—emotionally intelligent men and women—finish first” (Goleman, et al. p.169. 2001). Just as Peter Drucker’s insistence on self-knowledge and the knowing of one’s strengths and weaknesses is the starting point in his essay, Managing Oneself (1999), EQ starts with knowing yourself, including your weaknesses and strengths, and especially your emotions. Drucker also talked about values and manners. Manners is all about people working in close contact with each other and therefore naturally causing friction. He said that workers must be able to cooperate and treat each other with courtesy and respect. In order to do this, they must look inward to make sure they use words like thank-you and please and they know their co-workers’ names and even the names of their family members. He didn’t specifically use the word emotions but was writing about a basic form of emotional intelligence. Goleman, et al. (2001) lists the four components of emotional intelligence in action: 1. Self-awareness: The ability to read your own emotions. Knowing how your moods are affecting others. 2. Self-management: The ability to control your emotions. Don’t let bad moods seize the day; leave them outside the office. 3. Social awareness: The ability to sense other people’s emotions and show that they care. Understand how your words and actions affect other people and be able to change them when their impact is negative. 4. Relationship-management: The ability to build strong personal bonds and use these skills to spread their enthusiasm and solve disagreements, often with humor and kindness. It should be noted that Diamantidou et al. (2024) found a strong link between emotional intelligence and transformational leadership that translates to a positive organizational culture and thus increased organizational effectiveness. In late 2024, Pixar released an animated movie, Inside Out 2. It is a sequel to the movie Inside Out. It is already the highest grossing animated movie in history. The movie is based on emotional intelligence. Daniel Goleman praised the movie and said, it is clever and moves the field of social-emotional learning forward. The leadership literature cites many examples of the value of using films to teach leadership. Wiliams (2006) posits that because films are memorable and a catalyst for thought and discussion, there is always rich dialogue generated, and a better understanding of the concept being taught after watching the movie. The characters in the movie are Riley (the human) and Joy, Sadness, Anger, Fear, Disgust, and Anxiety (the emotions). Chatbot (2024) explains that watching the movie can help leaders by dramatically showing how emotions influence both personal and social interactions. The movie also depicts such emotional intelligence concepts as self-awareness, self-management, building empathy, the power of vulnerability, leading by example, and the benefits of transparency. REFERENCES: Chatbot, H. How Inside Out 2 Can Improve Your Leadership Skills. Entrepreneurial Leadership. July 30, 2024. Diamantidou, V., Kaitelidou, D., Kalakairinou-Anagnostopoulou, A., and Galanis, P. Organizational Culture, Transformational Leadership and Emotional Intelligence. Journal of International Caring Services Vol. 17 (2). May/August 2024. 1190-1196. Drucker, P. Managing Oneself. (1999) In HBR book, On Managing Yourself. pp. 13-32. Goleman, D., Boyatzis, R., and McKee, A. (2001). Primal Leadership: The Hidden Driver of Great Performance. In HBR book, On Managing Yourself. pp. 169-188. Wiliams, J. Pirates and Power: What Captain Jack Sparrow, His Friends, and His Foes Can Teach Us About Power Bases. Journal of Leadership Education Vol. 5 (2). Fall 2006. 
By Mehak Suri February 25, 2025
Drucker’s claim that “reliance on the expert to predict the outcomes of technology is born out of hubris” (Drucker, 1969, p. 524) still holds and will likely continue to be the same. Each development is caused by and leads to several factors, “each independent in its origins,” with the “outgrowth of a separate discipline with its own experts” (Drucker, 1969, p. 524). Aristotle’s syllogisms (a kind of logical argument) are the reason ChatGPT exists today. The statement above sounds bizarre, but Boolean logic was invented in the 1800s to mathematically represent syllogisms. Claude Shannon, in 1937, demonstrated the use of Boolean algebra in designing electrical circuits, which paved the way for GPUs, programming, digital computers, and AI systems like ChatGPT. Claude Shannon could not have predicted that his design of electrical circuits would someday contribute to the fragmentation of human interaction (social media), digital overload and decision fatigue (social media), erosion of creativity through AI-assisted writing, and increased energy consumption and pollution (large AI models lead to high electricity usage and carbon emissions from data centers). This indicates that “the impacts of technology are often quite indirect and by-products rather than main products” (Drucker, 1969, p. 524). Sometimes, even the most direct use cases of modern technology have unintended adverse consequences, leading to “the cost being more than the worth” (Drucker, 1969, p. 523). The Computerized Provider Order Entry (CPOE) systems in healthcare were designed to reduce medical errors and improve the quality of patient care. However, studies have shown unintended net adverse effects due to clinicians’ overreliance on this technology and diminished critical thinking. CPOE systems with inbuilt clinical decision support (CDS) help clinicians by providing “notifications of drug-drug interactions, warnings about allergies, recommendations for clinical guideline compliance, and more” (Campbell et al., 2007, p. 96). For example, anticoagulants and aspirin are usually not prescribed together. However, this combination is often used for heart protection benefits in coronary care. In this context, using these two drugs together would be helpful, but the CPOE system would trigger an alert warning the clinician. If the clinician relies exclusively on CPOE, they may remove one of the two drugs from the therapy, increasing the potential risk to the patient (Campbell et al., 2007). Going back to the previous example, even if Claude Shannon could foresee all the negative impacts of technological advancements stemming from his invention, he would not have stopped his development, as there were foreseeable immediate and long-term net-positive outcomes, too. As Drucker puts it, in this new age of technology, we need new decision-makers and decision-making processes built on understanding the history and dynamics of technology instead of focusing on predicting the outcomes of technology or determining what is right or wrong (Drucker, 1969).  References Drucker, P. F. (1969). Comment: Is Technology Predictable? Technology and Culture, 10(4), 522-527. https://doi.org/10.2307/3101571 Campbell, E. M., Sittig, D. F., Guappone, K. P., Dykstra, R. H., & Ash, J. S. (2007). Overdependence on technology: an unintended adverse consequence of computerized provider order entry. AMIA Annual Symposium Proceedings, 2007, 94-98.
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