Chester Barnard The Functions of Executve

Chester Barnard is best known as the author of The Functions of the Executive, perhaps the 20th century’s most influential book on management and leadership.

Entire book is classified 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

His theory is also known as Contribution- Satisfaction Equilibrium (Barnard’s Theory of Motivation)

1. Organizational Behavior Presentation On Prepared By: Suraj Iyer Pratik Nandy Ayushi Kukreti Jayati Gakhar Nishit Nishant Minz Fenil Sadaiya

2. Later on he studied economics at Harvard University. He continued to work odd jobs throughout his college career to meet his financial needs. CHESTER BARNARD 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 lack of 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. CHESTER BARNARD In fact he completed most of the requirements for a Bachelor’s degree in economics just 3 years than 4.

4. Chester Barnard is best known as the author of The Functions of the Executive, perhaps the 20 th 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

5. So what lies within this Book?

6. Entire book is classified 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 Considerations concerning 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. Organizations:

8. Decoding Organizations & Cooperative Systems Preliminary Considerations concerning 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.“ Cooperative System:

9. “Is complex of physical , 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!). Cooperative System:

10. Elements of Org. An organization 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: The Theory and Structure of Formal Organization 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 Dominant Org Subordinate Orgs “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 Dominant Org Subordinate Orgs “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 of Formal Organisation Contribution - Satisfaction Equilibrium The Theory of Authority

14. Contribution- Satisfaction Equilibrium (Barnard’s Theory of Motivation) Work > Incentives = No Motivation Work ≈ Incentive = No Motivation Incentive > Work = Motivation! Work Incentive “People contribute (i.e. take part in Organizational activity) only when it Is advantageous to them in terms of Personal satisfaction.”

15. Compatibility with Associates Mutual Support Personal Comfort Feelings of Enlarge Participation

16. The Theory of Authority 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 of Executive 1. Maintenance of Organization Communication 2. Securing Essential Services from Individuals 3. Formulation of Purpose & Objectives

18. Bringing persons into cooperative 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. Formulation of Purpose & Objectives Purpose can be geographic , 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) Appraisal & Criticism

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