The Three Knowledge Pillars of MLA

                                                                                      Figure 1. The three knowledge pillars of MLA

In this blog post, my goal is to briefly explain these three knowledge pillars of MLA by grounding them in Peter Drucker’s work and identify disciplines that can serve as a reliable source of knowledge for each area. I also list some keywords related to each pillar based on the word count analysis of Drucker’s work[1]. These keywords are among the most frequently used words in the body of Drucker’s books that can exemplify his emphasis on each area. 

Knowledge of Individual

·      Disciplines: Psychology, theology

·      Representative keywords in Drucker’s books (word frequency rankings in parentheses): people (6^th), man (23^rd)

In its most basic form, management is defined as getting work done through people. For Drucker, people are at the heart of MLA (Drucker, 1989), and he believed that organizations need to bring people together to accomplish a shared goal. Also, he pays particular attention to the ultimate importance of people in a functioning society. Here, the individual is still in the center stage for Drucker. For instance, in The Future of Industrial Man (Drucker, 1942), he writes: “[society] must give status and function to the individual.” In addition, he has highlighted that if institutions cannot function well, they will not be able to provide people with meaning and status (Drucker, 1942). 

Understanding individual characteristics of employees (e.g., personality) is at the focus of disciplines such as psychology and organizational behavior. It is important for managers to understand how differences in personality, attitudes, values, and beliefs influence individual performance in organizations. According to Peter Drucker (1955), in his book Practice of Management, managers’ knowledge of employees’ attitudes and outcomes helps them create a better relationship with employees. Differences in spirituality, religion, and moral values have also been found as important factors that influence effective management of people at work. In his book, New Realities (1989), Drucker writes that “Management is thus what tradition used to call a liberal art …. because it deals with the fundamentals of knowledge, self-knowledge, wisdom, and leadership.”

Knowledge of Organization

·      Disciplines: Business (all areas) and economics

·      Representative keywords in Drucker’s books (word frequency rankings in parentheses): Business (1^st), management (2^nd), performance (26^th), production (39^th) 

Performance is the single most important outcome in the practice of business. In the words of Peter Drucker (1950) in his book, The New Society, “the first responsibility of management is the responsibility for economic performance.” Achieving superior levels of performance by organizations requires making effective managerial decisions. Effective decisions can only be made by knowledgeable managers who not only understand the individuals (e.g., employees’ needs and attitudes) and the environmental context (e.g., society including all stakeholders) but possess certain managerial skills in understanding the organization (e.g., resources and capabilities) and the key success factors. As an example, a general knowledge of fundamentals of value generation from customers to profit is important. Similarly, knowledge of finance and accounting is important for successful management. According to Peter Drucker, by focusing on performance, and on productive activity that is mission-driven and accountable, organizations can give people status and function, and provide checks and balances on power.

Knowledge of Society

·      Disciplines: Sociology, political science, and history

·      Representative keywords in Drucker’s books (word frequency rankings in parentheses): society (8^th), government (18^th), politics (28^th), power (35^th)

Organizations do not operate in a vacuum. The environment within which organizations operate is influenced by society (e.g., various stakeholders). Therefore, an effective manager needs to be knowledgeable about the trends and realities in the local and global environment. 

A good understanding of society-level trends is addressed at the heart of disciplines such as political science, sociology and history. A manager familiar with historical and societal context can better understand the needs and requirements of internal and external stakeholders to lead the organization to not only achieve economic prosperity but also to fulfill and respond to the demands from customers, suppliers, competitors, governments, and communities.

Conclusion

Peter Drucker's extensive work provides a rich foundation for understanding the relationships between individual, organization, and society as the three knowledge pillars of MLA. By integrating insights from various disciplines, managers can better appreciate the context within which a business operates. Embracing these multidisciplinary perspectives ensures that managers can lead their organizations responsibly and sustainably, ultimately contributing to the broader societal good.

References:

Drucker, P.F. (1942), The Future of Industrial Man, The John Day Company, New York, NY.

Drucker, P.F. (1955), The Practice of Management, Heinemann, London.

Drucker, P.F. (1989), The New Realities, Harper and Row, New York, NY.

[1] Please see https://doi.org/10.1108/JMH-04-2022-0011 for a comprehensive text analysis of Drucker’s work