Drucker (2012) accurately articulates the definitive competencies of post-industrialist businesses. In particular, his emphasis on knowledge-based competencies over capital muscle is reflected in the shift from a comparative advantage pattern of industrialization to a human resource capital determined the spread of global value chain operations. As articulated by Drucker, natural resource endowment no longer influences a company’s decision on the geographical location of its value chain operations. Instead, in the post-industrial world, human resources, competencies of a country’s labor forces are the most influential determinant of foreign direct investment by multinationals. Drucker’s postulate of a knowledge driven industrialization reflects in the unprecedented economic growth of emerging economies as evident in the five Asian tigers namely Taiwan, South Korea, Malysia, Singapore and Hong Kong. As articulated by Drucker, the Asian tiger’s miraculous economic progress rests in their human resource capital competence rather than their natural resources endowment.
Drucker also brilliantly parallels a shift from comparative advantage to knowledge-based industrialization with organizational overall of business investment. In particular his postulates of organizational overhaul in post-industrial investments reflect in obsolescence of some of historically acclaimed management theories. Among the outdated management theories unproductively inapplicable to post-industrial investment includes Taylorism, bureaucratic or scientific management and Bentham’s Stick-and-Carrot motivational theories.
Delegate your assignment to our experts and they will do the rest.
Nevertheless, Drucker’s wrongly equates post-industrialism with post-capitalism. Contrary to Drucker’s claim, the current investment world is not yet post-capitalist. Instead, as confusedly acknowledged by Drucker, the 21 st century world has witnessed a new form of capitalism driven by human resource competence rather than production capital (Harris, 2014) . Evidently, Drucker emphasizes on focus on knowledge as the novel lever for managing a business competency as opposed to technical tinkering or research and development.
References
Drucker, p. (2016). Post-capitalist society . S.l.: routledge.
Harris, G. (2014, August 01). The Post-Capitalist Executive: An Interview with Peter F. Drucker. Retrieved June 26, 2019, from https://hbr.org/1993/05/the-post-capitalist-executive-an-interview-with-peter-f-drucker
