Chester Barnard (1886-1961)
- One of the Harvard Circle of American management theorists
- An executive of AT&T and president of New Jersey Bell Telephone
- Drew attention to the importance of leadership and the information organization, pointing out that all organization have social groups and cliques that form alongside its formal structure
- His view was organization were not machines, and they could not be managed effectively in the impersonal way implied by scientific management theory.
The Function of the Executive
The three main functions of an executive to be:
Viewing the communication system in an organization as the key to organizational achievement, He set out three principles for effective communication:
As part of his communications theory,his acceptance theory of authority proposes that a manager exerts authority from above, and success depends on its acceptance by the employees managed. In this way, employees determine how authoritative their manager is and, for this reason, the main focus of an executive needs to be on creating the right conditions to increase acceptance levels. Barnard suggested that this could be done if:
Employees must also understand how their work helps to achieve organizational objectives.
- Implementation and development of an effective system of communication
- Appointment and retention of effective workers
- Motivation of workers
Viewing the communication system in an organization as the key to organizational achievement, He set out three principles for effective communication:
- Everyone in the organization must know what the channels of communication are
- Everyone must have access to a formal communication channel
- Lines of communication should be kept short and direct.
As part of his communications theory,his acceptance theory of authority proposes that a manager exerts authority from above, and success depends on its acceptance by the employees managed. In this way, employees determine how authoritative their manager is and, for this reason, the main focus of an executive needs to be on creating the right conditions to increase acceptance levels. Barnard suggested that this could be done if:
- Managers are clear in what they ask employees to do,
- employees understand what their manager wants them to do, and
- employees are capable of complying.
Employees must also understand how their work helps to achieve organizational objectives.
Acceptance Theory of Authority
Managers have more authority than employees. It suggested that authority flows downward but depends on acceptance by the subordinate.
It depends on 4 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
It depends on 4 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
Authority and the Informal Organization
One of the most important ways in which he proposed that executives can increase employees' acceptance of their authority and orders is through their recognition and use of three zones, setting boundaries within which people evaluate orders, defined as zones of indifference, neutrality and unacceptability. The Zone of Indifference for orders is the highest acceptable range within which orders will be obeyed, and Barnard believed that managerial work involved widening this zone through the use of inducements and incentives. With seemingly modern insight, he suggested that material incentives were insufficient, and that personal incentives, such as increased power or prestige, would be more effective.