Chester Barnard Innovator Presentation

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Chester Barnard's Two Concepts in Management Theory

Works Cited

Strategic Planning

The formulation of major plans or strategies to pursuit of major objectives:

• Establish and maintain an effective communication system
• Select and hire competent employees
• Motivate these employees

http://study.com/academy/lesson/chester-barnards-managment-theory-lesson-quiz.html

https://en.wikipedia.org/wiki/Chester_Barnard

http://www.business.illinois.edu/Working_Papers/papers/10-0102.pdf

https://www.encyclopedia.com/topic/Chester_I._Barnard.aspx

Acceptance Theory of Authority

States that managers have more authority than employees; authority flows downward

Four Conditions

• Employees can and do understand the communication
• Employees must be able to follow any instruction given by a manager
• Employees must think that the directive is in keeping with organizational objectives
• Employees must think that the directive is not contrary to their personal goals

Barnard's Effectiveness and Efficiency

Chester Barnard vs Max Weber

According to Barnard, the survival of an organization is based on the organization's effectiveness and efficiency

Barnad's definition of effectiveness: being able to accomplish stated goals

Barnard's definition of efficiency: the degree to which the organization is able to satisfy the motives of the individuals

• Believed that an organization should not focus mainly on member satisfaction, but on the end goal

• Believed that the success of an organization depended on the happiness of its members
• Focused on the satisfaction of organizational members and personnel

System Equilibrium

Cooperative Systems

Barnard believed that an organization needs to achieve "system equilibrium" to be able to function properly

A complex of physical, biological, personal, and social components which are in a specific systemic relationship by reason of the cooperation of two or more persons for at least one definite end

System Equilibrium Process

The 1st process relates to the equilibrium between the organization's characteristics and its external environment

The 2nd process balances internal from the organization's members and the degree of satisfaction the members and organization receive in exchange

Career

Background

"The Functions of the Executive"

• Chester Barnard was born in Maiden, Mass. in 1886.

• Published in 1938
• Barnard detailed his view of management in an organization
• Based on his theory of cooperative systems

• At the age of twelve he began working to pay for his own schooling
• Attended Harvard for 3 years
• Took a job at the American Telephone and Telegraph company at 23

• For 39 years, he worked with the Bell Telephone system
• Became company's first president at 41
• Taught lectures on organizational structure at Harvard
• Wrote "Functions on the Executives"

Functions of the Executive

1. Establishing and maintaining a system of communication

2. Securing essential services from other members

3. Formulating organizational purposes and objectives

4. Managing people and make sure they do their jobs