# Background knowledge to deeply understand ‘The New Society’ by Peter Drucker
The Life and Times of Peter Drucker
Peter Drucker (1909-2005) was an Austrian-born American management consultant, educator, and author, whose writings contributed significantly to the philosophical and practical foundations of the modern business corporation. He is often described as the “father of modern management”. To understand “The New Society”, published in 1950, it is crucial to understand Drucker’s life and the historical context in which he wrote.
Born in Vienna, Austria, Drucker experienced firsthand the social and political upheavals of Europe in the first half of the 20th century, including the rise of fascism and World War II. He received a doctorate in public and international law from the University of Frankfurt in 1931. He worked as a journalist and financial analyst in London before emigrating to the United States in 1937. These experiences deeply influenced his thinking about the role of organizations and individuals in society.
Post-World War II Society and Economy
“The New Society” was written in the immediate aftermath of World War II, a period of profound transformation. The war had reshaped the global political landscape, leading to the emergence of the United States and the Soviet Union as superpowers. It had also spurred technological advancements and significant changes in economic structures. Europe lay in ruins, and the world grappled with the implications of the atomic bomb.
The war had accelerated the growth of large organizations, both in government and industry. Mass production techniques, developed during the war, were being applied to consumer goods, leading to a rise in mass consumption. Labor unions had gained significant power, and there was a growing awareness of the need for social responsibility on the part of corporations.
The Rise of the Corporation and Mass Production
Drucker’s central argument in “The New Society” is that the large corporation and its mass production techniques have become the defining institution of modern society. He analyzed the structure, function, and impact of these organizations on individuals and society as a whole. He recognized the potential benefits of mass production in terms of increased productivity and material well-being, but he also highlighted the potential dangers of bureaucratization, dehumanization, and the concentration of power.
Drucker’s analysis drew upon the work of earlier thinkers such as Max Weber, who had studied the rise of bureaucracy, and Frederick Winslow Taylor, who had pioneered scientific management. However, Drucker went beyond these earlier analyses to develop a more comprehensive understanding of the corporation’s role in modern society.
The Concept of the “Employee Society”
Drucker coined the term “employee society” to describe the new social order emerging in the mid-20th century. He argued that the majority of people in industrialized societies were becoming employees of large organizations, and that this shift had profound implications for social structure, individual identity, and political power.
Drucker was particularly concerned with the potential for alienation and loss of autonomy in the employee society. He believed that individuals needed a sense of purpose and meaning in their work, and that corporations had a responsibility to provide opportunities for employees to develop their skills and contribute to the organization’s success.
The Importance of Management
Drucker recognized the crucial role of management in shaping the employee society. He argued that effective management was essential for ensuring the productivity and efficiency of large organizations, and for creating a work environment that was both productive and fulfilling for employees.
Drucker’s ideas about management were groundbreaking at the time. He emphasized the importance of setting clear goals, delegating authority, and empowering employees. He also stressed the need for managers to be ethical and socially responsible. His work laid the foundation for the development of modern management theory and practice.
The Political and Social Implications of the New Society
Drucker explored the political and social implications of the rise of the corporation and the employee society. He argued that the concentration of power in large organizations posed a threat to democracy and individual liberty. He also believed that the employee society created new challenges for social cohesion and integration.
Drucker advocated for a balance of power between corporations, labor unions, and government. He also emphasized the importance of individual responsibility and civic engagement in shaping the future of society. His work influenced the development of social and political thought in the postwar era.
Understanding these key aspects of Drucker’s life, the historical context, and the core concepts he introduced in “The New Society” provides a solid foundation for a deeper understanding of this influential work. It allows readers to appreciate the book’s relevance to the challenges and opportunities facing individuals and organizations in the 21st century, a world still grappling with the legacy of the “New Society” Drucker described over 70 years ago.
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