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Chester Barnard The Functions of Executve
Chester Barnard, who studied economics at Harvard and authored 'Functions of the Executive,' is known for his contributions to management theory and the concept of organizations as cooperative systems. His book, which revolutionized organizational theory, is structured into four sections addressing formal organizations and their functions. Barnard's work emphasized the importance of communication, cooperation, and motivation within organizations, asserting that their survival depends on accomplishing their purpose.
Chester Barnard The Functions of Executve
- 2. Later on hestudied economics at Harvard University. He continued to work odd jobs throughout his college career to meet his financial needs. Chester Barnard, was born in Malden, A Hill city in Massachusetts State of America. Barnard started of from a very humble origins. In his youth, he worked on a farm.
- 3. But a lackof funds forced him to drop out of Harvard before he completed a final science requirement in physics or chemistry. However, a number of universities later granted him honorary doctorates. In fact he completed most of the requirements for a Bachelor’s degree in economics just 3 years than 4.
- 4. Chester Barnard isbest known as the author of The Functions of the Executive, perhaps the 20th century’s most influential book on management and leadership. Barnard’s teachings drew on personal insights as a senior executive of ATT in the 1920s and 1930s. His importance lies in creating this book, the only book he wrote in his life, after more than 4 decades of experience as a top executive in the business environment. He revolutionized the complete theory of organizational structures, by focusing on the organization as a cooperative system. “Planning is one of the many catchwords whose present popularity is roughly proportionate to the obscurity of its definition.” – Chester Barnard
- 6. Entire book isclassified into 4 sections: 1. Preliminary Considerations concerning Cooperative Systems 2. The Theory and Structure of Formal Organization 3. The Elements of Formal Organization 4. The Functions of Organizations in Cooperative systems
- 7. Decoding Organizations & Cooperative Systems Preliminary Considerationsconcerning Cooperative Systems “Formal organization is that kind of cooperation among men that is conscious, deliberate, purposeful.” He Specifies that a formal organization is part of a "cooperative system.“ With this statement, he was the first theoretician to enter the realm of Systems approach to the study of Organizations.
- 8. Decoding Organizations & Cooperative Systems Preliminary Considerationsconcerning Cooperative Systems “Is complex of physical, biological, personal, and social components which are in a specific systematic relationship by reason of the cooperation of two or more persons for at least one definite end.“
- 9. “Is complex ofphysical, biological, personal, and social components who is in a specific systematic relationship (Marriage here!) by reason of the cooperation of her for at least one definite end (till death!).
- 10. Elements of Org. Anorganization comes into being when (1) there are persons able to communicate with each other (2) who are willing to contribute action (3) to accomplish a common purpose. We infer two things from the Elements: that an organization that cannot accomplish its purpose cannot survive. that an organization that accomplishes its purpose has no reason for existence.
- 11. Complete, Incomplete, Subordinate,and Dominant Organizations “Overlaying or embedded in the complex of informal organizations, which in the aggregate we call great national and local societies, is a network of formal organizations.” – Chester Barnard
- 12. Complete, Incomplete, Subordinate,and Dominant Organizations “The Dominant Organizations themselves are composed of the complex of the subordinate organisations, so that what takes place within the latter, their existence, their success or failure, affect the Dominant Organization .” – Chester Barnard They are Independent. They are Complete. The Effect of Subordination is to limit their purpose or the way in which they may operate, and sometimes limit the status of persons who may belong to them. Therefore, they are - Dependent & - incomplete.
- 13. The Elements ofFormal Organisation Contribution - Satisfaction Equilibrium The Theory of Authority
- 14. Contribution- Satisfaction Equilibrium (Barnard’sTheory of Motivation) Work > Incentives = No Motivation Work ≈ Incentive = No Motivation Incentive > Work = Motivation! Work Incentive
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- 16. The Theory ofAuthority Authority of position Authority of leadership "Authority of position" is explained as occurring when people are assigned authority to communicate from superior positions… to a considerable extent independent of the personal ability of the position holder. In contrast, people with superior ability have "authority of leadership." These are rather Leaders first, and then Boss.
- 17. The Functions ofExecutive 1. Maintenance of Organization Communication 2. Securing Essential Services from Individuals 3. Formulation of Purpose & Objectives
- 18. Bringing persons intocooperative Relationship with the organization Eliciting of services from them! Maintenance of Communication Securing Essential Services from Individuals Developing Org Chart, specifying duties, recruiting Securing informal Organization
- 19. Purpose can begeographic, social and functional. Purpose must be sub-divided into fragments, and specific objectives must reflect the detailed purposes and actions. It also includes defining the ends of organisation.
- 20. Herbert A. Simon,Behavior Scientist, in a 1988 interview, was quoted as follows: “Of course I built squarely on Barnard (for my book Admistrative Behavior), and have always felt deeply indebted to him; science is a cumulative endeavor. My general debt is expressed in the acknowledgements ."To Mr. Charles I. Barnard I owe a special debt…” The Functions of the Executive appeared in at least four lists of "best" or "most influential" management and business books between 2001 and 2011. There is no significant mention of the education of staff (i.e., the executive's role as a teacher) The book does not consider how an executive of a corporation interacts with the board of directors or stockholders. A passage on page 319 ("…It is consequently necessary to say things in a form which is not correct from the standpoint of the speaker or writer…") has been interpreted as "advocating lying.“- Frederick, William Crittenden (1995)
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Editor's Notes
- #3 Malden was named the "Best Place to Raise Your Kids" in Massachusetts by Bloomberg Businessweek in 2009.
- #4 Malden was named the "Best Place to Raise Your Kids" in Massachusetts by Bloomberg Businessweek in 2009.
- #5 Steward: A person who is organizer (of events), Provider (of Services), and a Caretaker (of a Particular place). Example: Race track inspectors are known as stewards. There are stewards in cruise ships to help and care for passengers. Even air hostesses are sometimes referred to as stewardess. AT &T: Barnard joined the American Telephone and Telegraph Company (now AT&T) in 1909.
- #10 Lets understand it through a simple comparison with another form of cooperative system in the society. So lets look at this buddy here. Lets name he Harry. He is a complex of….components. Now lets bless harry with Sejal.
- #11 The elements of an organization are therefore (1) communication; (2) willingness to serve; and (3) common purpose. Barnard suggests both: (1) that an organization that cannot accomplish its purpose cannot survive, and (2) that an organization that accomplishes its purpose has no reason for existence. Therefore, organizations are constantly adopting new purposes.
- #13 There are generally more than 1 dominant organizations in the majority of human history. The only exception is the primitive people and early history of civilizations where generally a single body used to cover both types (political and organized religions) of consciously organised interests. Thus there are few dominant organisations to which all other organisations subordinate. Subordination can be exclusive to any one or to many. It could be direct or indirect and in most cases it is both. Example: Govt. lays down rules and guidelines for corporations.