Chester Barnard, The Functions of the Executive (1938)
American business executive and expert on management (pictured right)
He died in 1961.
See also...
Chester Barnard in the Management Gurus section.
Book summary
The functions of an
executive
1. Defining purpose
An organization’s success depends on:
- creating a common purpose.
- building great relationships with customers, suppliers, creditors and employees.
2. Co-operation
Making sure:
- people work well together.
- employees are effectively co-ordinated (to achieve the organization’s
objectives).
All acts of the organization and its employees are
“directly or indirectly interconnected and interdependent”.
3. Persuasion
Inspiring excellent results by:
- financial and non-financial rewards like interesting work.
- satisfying employees’ motives or needs (Barnard’s definition of
efficiency).
- the integrity (see point 4) and interpersonal skills of
management.
A manager’s authority doesn't depend on hierarchical position but on:
4. Moral action (integrity)
Ensuring that managers’ (and their employees’) actions are based upon their personal
morals.
So managers must:
- deal with conflicting moral demands (for example, to family, religion and
organization).
- improve the organization’s performance whilst keeping
people’s integrity, free will and
self-respect.
So leadership and management must:
- ensure that work is seen as rewarding and morally right.
5. Communication
Effectively communicating the objectives of the organization and its employees
through:
- the informal organization (informal contacts).
- the formal organization (managers’ official communications in the
hierarchy).
People accept a manager’s communication when they:
- understand it and are physically and mentally able to do it.
- believe it helps their objectives (through work that is morally
right and rewarding).
6. Teamwork
Managers must:
- encourage people to take responsibility for making decisions.
Key quote on management
The inculcation of belief in the real existence of a common purpose is an essential executive function.
Key quote on leadership
The endurance of organizations depends upon the quality of leadership and that quality derives from the breadth
of the morality upon which it rests.
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