The Functions of the Executive by Chester Irving Barnard
"The Functions of the Executive" by Chester Irving Barnard is a significant work in organizational theory that shifts the focus from individual motivations to the dynamics of organizations as a whole. Barnard argues that traditional theories, particularly those rooted in scientific management, inadequately address the complexities of human behavior in organizational settings. He emphasizes that workers are motivated by factors beyond economic incentives, such as group identity and personal satisfaction, which became foundational concepts in the human relations school of thought.
Barnard's insights were influenced by practical experiences, including his long tenure at American Telephone and Telegraph and collaboration with theorist George Elton Mayo. He highlights the importance of interpersonal relationships and informal organizational structures, suggesting that neglecting these aspects could lead to organizational failure. While he acknowledges the role of formal authority, Barnard contends that the informal dynamics within an organization can significantly impact employee behavior and motivation.
Despite its limitations, such as an overly functionalist perspective, Barnard's work has inspired subsequent theorists to develop more nuanced approaches to understanding organizational behavior. Overall, "The Functions of the Executive" invites a reevaluation of how organizations operate, advocating for a more holistic approach to management that considers both formal and informal factors.
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The Functions of the Executive by Chester Irving Barnard
Identification Nonfiction book offering a theory of organizational behavior
Author Chester Irving Barnard
Date Published in 1938
Chester Irving Barnard’s book helped to shape subsequent theories of business and public organizations and the role of executive leadership. It remains in print and is often the starting point for other discussions of organizational theory. In particular, it emphasizes the importance of informal as opposed to formal organization in any consideration of organizational effectiveness.
Barnard spent nearly forty years with American Telephone and Telegraph, culminating in service as the president of New Jersey Bell Telephone Company. In addition, he served on numerous governmental boards. His practical experience was complemented by his association with the theorist George Elton Mayo. Barnard’s work demonstrated the limitations of previous organizational theory, most notably the scientific management school of thought. The Functions of the Executive helped to forge the human relations school of thought, which emphasized the importance of interpersonal relations in any theory of organizational behavior.
Organizational theory prior to Barnard focused on the individual rather than the organization and stressed the use of economic incentives as motivators for human behavior. Drawing on the lessons gained from the Hawthorne experiments, Barnard emphasized that workers were often motivated by more than pay and negative punitive measures. He developed a theory that showed how complex organizations developed and implemented goals in a rational manner that individual did not always follow. Barnard maintained that economic incentives were less important, once a bare minimum was reached, than ideas of group identity and personal satisfaction. This latter point became the foundation for what came to be known as the human relations school of management.
Barnard went beyond earlier theorists who emphasized formal lines of authority in organizations. While accepting that formal authority was important, he indicated that informal relationships in an organization had important influences on how workers behaved. Neglect of informal organization could lead an organization to fail in his view. However, he neglected the possibility that informal relationships could have negative consequences for an organization.
Impact
The Functions of the Executive was not a perfect work. Its extreme functionalism, which indicated that an organization was functional for all involved, missed important aspects of organizational behavior. Nonetheless, the book led to different ways of looking at organizational behavior. Later theorists built on Barnard’s work in constructing better developed theories of organizations.
Bibliography
Perrow, Charles. Complex Organizations. 3d ed. New York: Random House, 1986.
Shafritz, Jay, J. Steven Ott, and Yong Suk Jang, eds. Classics of Organization Theory. 6th ed. Florence, Ky.: Wadsworth/Cengage, 2007.