Management as a Liberal Art Research Institute

The Application of Management as a Liberal Art

Byron Ramirez, Ph.D.

PUBLISHED:

April 11, 2023

Peter Drucker wrote extensively about the functions and responsibilities of managers and of the principles that could help advance organizational performance. In his works, Drucker inferred that individuals who comprise the organization ought to cultivate self-knowledge, self-awareness, and develop their skills through application.  


We first learn about the concept of management as a liberal art in Drucker’s book, The New Realities. In this text, Drucker refers to management as a liberal art: “Management is thus what tradition used to call a liberal art - ‘liberal’ because it deals with the fundamentals of knowledge, self-knowledge, wisdom, and leadership; ‘art’ because it deals with practice and application. Managers draw on all the knowledges and insights of the humanities and the social sciences - on psychology and philosophy, on economics and history, on the physical sciences and ethics. But they have to focus this knowledge on effectiveness and results.” (Drucker, 1989)


Drucker argued that individuals in organizations must recognize that human nature is imperfect, but through careful observation and contemplation, and lots and lots of practice, decision making can be improved. Over time, as people in organizations practice management ethically and responsibly, the community at large benefits from the decisions made in responsible, socially-conscious organizations.


Management as a liberal art is a concept that embodies a philosophy - one which rests on the elements of knowledge, self-knowledge, wisdom, and leadership. This implies that an individual has the potential to grow and develop into a more effective manager and decision-maker as long as the person takes time to reflect, develop skills and knowledge, and continually acquire experiences that will enrich her or his perspective about effectively leading people in the organization.


However, Drucker recognized that self-interest often disrupts and in the worst cases, impedes and restricts the efforts of others. As such, the individual must develop the ability to observe what is occurring within the organization and outside of it, but also develop self-awareness and the ability to reflect on his or her own behavior, and the decisions that are made. This includes analyzing how decisions may influence the actions and behavior of others.


It is through self-reflection and awareness that we can take note of what has worked, what did not, and what we could do differently the next time another situation arises. An individual can develop emotional intelligence, to use Daniel Goleman’s concept. And in the context of management as a liberal art, this is what we would refer to as self-knowledge.


An individual can become more effective in supporting the growth and development of others, as long as the person learns to appreciate people for who they are and allow them space to be themselves. But to do this, the individual must learn to listen to others, respect them, and recognize their concerns and needs. It is also important to leverage people’s ideas and suggestions to help find solutions. This is an important assumption under management as a liberal art.


Another key element of management as a liberal art is the notion that the individual must build knowledge. As such the individual must actively seek information, data, facts and stories that can help augment knowledge. Moreover, we can enhance our managerial skills and decisions by applying a transdisciplinary perspective to solving problems.


Using a transdisciplinary perspective provides the individual with an integrated, more holistic perspective that aggregates different points of view from across the arts, humanities, and science. Drucker posited that we can learn from reading history, philosophy and economics, and that the reconciliation of ideas from multiple disciplines can be beneficial to determining the best course of action. Drucker suggested that the careful consideration of differing alternatives and downstream effects, contingencies, and potential outcomes, would enhance decisions and enable the individual to become a more effective decision-maker.


According to management as a liberal art, it is important that we consider how our actions will influence others and that we take responsibility for our actions. Management as a liberal art posits that people define themselves (and serve society) through responsible action. This means that effective managers will act responsibly and ethically, and use their status and power to advance the well-being of the organization and its people. This infers that the individual will act with the best interest of the organization (and its stakeholders) in mind. Using good-judgment and having insight and an improved understanding of situations and contexts is what we would refer to as exercising wisdom.


In order to engage people and build better organizations, and ultimately contribute towards what Drucker referred to as a ‘functioning society’, it is vital that we treat all people within the organization with respect and dignity. And that we help people grow and develop and find meaning in what they do. This is how great organizations are built. This is what we would call leadership.


And leaders within the organization must be aware that things change and that some things must be changed, and others kept. This means balancing change and continuity and recognizing which process or activity needs to be revamped, and which other best practice needs to be preserved.


Management as a liberal art is rooted in practice and application, in self-reflection, in treating people with dignity and respect, and in using a trans-disciplinary lens to help improve decisions. It takes time to achieve results and build great organizations, but it can be done. And organizations whose managers are able to practice and apply, and continuously reflect and learn from their actions, are more likely to help build a better community and a thriving functioning society.


References


Drucker, Peter F. (2003) A Functioning Society (Routledge, London and New York)


Drucker, Peter F. (1989) The New Realities: in Government and Politics, in Economics and Business, in Society and World View (New York: Harper & Row)


Goleman, Daniel. (2007) Emotional Intelligence. 10th ed., Bantam Books.


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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