Modern Approaches to Management (Systems Thinking) Chester Barnard

1. Modern Approaches to Management (Systems Thinking) Chester Barnard

2. Chester Irving Barnard (November 7, 1886 – June 7, 1961 • Many of Chester Barnard’s theories are based off his observations growing up during the “Booming 20’s” and “Dirty 30’s” His theories were first published in the late 1930’s with his book The Functions of the Executive.

3. YouTube: Chester Barnard • http://www.youtube.com/watch?v=YtzgaeCEIQg

4. According to Barnard, organizations must meet two criteria necessary for survival: effectiveness and efficiency. Effectiveness is defined the usual way: as being able to accomplish stated goals. However, Barnard's meaning of organizational efficiency differed substantially from the conventional use of the word. He defined efficiency of an organization as the degree to which that organization is able to satisfy the motives of the individuals. If an organization satisfies the motives of its members while attaining its explicit goals, cooperation among its members will last.

5. Barnard summarized the functions of the executive from his 1938 book The Functions of the Executive as follows: • Establishing and maintaining a system of communication; • Securing essential services from other members; • Formulating organizational purposes and objectives.

6. Barnard also formulated two interesting theories: one of authority and the other of incentives. He seemed to argue that managers should obtain authority by treating subordinates with respect and competence. As for incentives, he proposed two ways of convincing subordinates to cooperate: tangible incentives and persuasion. He gives great importance to persuasion, much more than to economic incentives.

7. He described four general and four specific incentives. The specific incentives were: • Money and other material inducements; • Personal non-material opportunities for distinction; • Desirable physical conditions of work; • Ideal benefactions, such as pride of workmanship etc.

8. List of Publications by Chester Barnard • 1938. The Functions of the Executive • 1939. Dilemmas of Leadership in the Democratic Process. • 1946. A Report on the International Control of Atomic Energy. • 1948. Organization and Management • 1956. Organization and Management: Selected Papers • 1956. On the Teaching of Law in the Liberal Arts Curriculum. With Harold Joseph Berman. Harvard Law • 1958. Elementary Conditions of Business Morals. • 1973. Conversations With Chester I. Barnard. Edited by William B. Wolf. • 1986. Philosophy for Managers; Selected Papers of Chester I. Barnard. Edited by William B. Wolf and Haruki Iino.

9. Sources: • * Marshall, Gordon (1998) "Chester I. Barnard" in A Dictionary of Sociology. • * Scott, William G. (1992) Chester I. Barnard and the guardians of the management state. • * Wolf, William B. (1974). The basic Barnard: an introduction to Chester i. Barnard and his theories of organization and management. • * Anicich, Adam. (2009) "Management Theorist: Chester Barnard's Theories of Management," Doctoral Research Papers, University of Maryland University College, DMGT 800, (2): 1-15.