ENM 222 – SEMINAR IN MANAGEMENT AND LEADERSHIP DEVELOPMENT

HISTORICAL OVERVIEW OF
MANAGEMENT
CHESTER BARNARD : MANAGEMENT OF ORGANIZATION

REPORTED BY: JOHN VINCENT D. SALAZAR, CE

 PEOPLE WHOSE IDEAS
INFLUENCE
ORGANIZATIONAL WORK
Chester Irving Barnard (1886–1961)
president of the new Jersey Bell
Telephone Company, help advance
thinking about organizations when he
published The Functions of the
Executive in 1938an influential 20th
century management book.
His importance lies in creating a new
theory around organizational structures,
focusing on the organization as
communication system
 CHESTER IRVING BARNARD?
THEORY OF ORGANIZATION:
He defined formal organization ‘as a system of consciously coordinated
activities or forces of two or more persons’ .

He looked at organizations as systems of cooperation of human activity, and

was worried about the fact that they are typically rather short-lived.

This happens because organizations do not meet the two criteria necessary
for survival: effectiveness and efficiency.
Concept of Effectiveness & Efficiency:
Effectiveness, is defined the usal way: as being able to accomplish stated
goals
He define Efficiency of an organization as the degree to which that
organization is able to satisfy the motives of the individuals.

He give us a much more “realistic” view of what really goes on in formal

organization. According to Barnard individual have only a limited amount of
power. A person can do only so much when acting alone.
 BARNARD’S KEY CONCEPTS:?

Importance of an Individual's behaviour

Compliance
Concept of "zone of indifference".

Communication
Focused on importance of communication in informal organization.
 BARNARD’S KEY CONCEPTS:?
AUTHORITY IN FORMAL ORGANIZATION:
Authority is the character of communication (order) in a formal organization virtue of
which it is accepted by a contributor to a member of the organization.

INFORMAL ORGANIZATION:
THREE UNIVERSAL ELEMENTS OF INFORMAL ORGANIZATION
1. COMMUNICATION
2. MAINTENANCE OF COHESIVENESS
3. MAINTENANCE OF FEELINGS OF PERSONAL INTEGRITY & SELF-RESPECT

THE FUNCTION OF THE EXECUTIVE:

• VALUES OF LEADERS
• PURPOSE DEFINED BY LEADERS
• COOPERATION REQUIRES COMMUNICATION
• THE EXECUTIVES MUST MAINTAIN ORGANIZATION
 BARNARD’S KEY CONCEPTS:?

• Other points

Organizations made up of individual humans with individual motivations

Every large organization includes smaller, less formal groupings whose goals
need to be harnessed to those of the whole - this is managements
responsibility

Management efficiency vs. effectiveness

Authority only exists in so far as the people are willing to accept it

 PERSONAL PERSPECTIVES
• Informal organizations provide a balance to the power of formal
organizations over its workforce - however, they have gone a little too far to
the extend that formal organizations have lost control.
-> Affect effectiveness
-> and thereafter efficiency

• Civil society organizations are used as tools by politicians on the opposition…

sometime for good causes, but often times, they make a huge mess in
governments.

• How long should they stay? (Durability…)

 THANK YOU ! 
TO TRY AND FAIL IS ATLEAST TO LEARN;
TO FAIL TO TRY IS TO SUFFER THE INESTIMABLE LOSS OF WHAT MIGHT HAVE BEEN.

-CHESTER I. BARNARD