Republic of the Philippines

Nueva Ecija University of Science and Technology

Cabanatuan City

GRADUATE SCHOOL

Program : MASTER OF ENGINEERING MANAGEMENT

Course Title : ENM 222 – SEMINAR IN MANAGEMENT AND LEADERSHIP
DEVELOPMENT
Professor : NOEL T. FLORENCONDIA, PEE,Ph.D.
Reporter : JOHN VINCENT D. SALAZAR, CE

HISTORICAL OVERVIEW OF MANAGEMENT

CHESTER BARNARD : MANAGEMENT OF ORGANIZATION

INTRODUCTION

Effectiveness is defined the usual way: as being able to accomplish the explicit goals. In

contrast, his notion of organizational efficiency is substantially different from the conventional

use of the word. He defines 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

participants, and attains its explicit goals, cooperation among them will last.
TOPIC DISCUSION

CHESTER BARNARD: MANAGEMENT OF ORGANIZATION

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 1938 an influential

20th century management book.

His importance lies in creating a new theory around organizational structures, focusing on

the organization as communication system

Function of executive: Purposes the acceptance theory of authority that organizational

goals will be achieved and managerial authority will be accepted if workers believe that

their individual needs are being met.

Impact of Barnard’s Ideas

Definition of the chief executive role – his position was that the chief executive is

not a dictatorial figure that should focus solely on the short-term results, but rather a

resource to cultivate the values and goals that the organization subscribes to. (Business

Strategy Review, 2003). The philosophy has proliferated throughout organizations for

many decades since Barnard’s time, and has earned recognition for its success throughout

all organizational sectors.

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 usual 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 gives 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:

Felt other theorists had underestimated the variability of individual behaviour and impact

of this on organizational effectiveness.

Compliance

Concept of "zone of indifference" - orders must be perceived in neutral terms to be

carried out without conscious questioning of authority. Incentives,can be used to expand

zone, but material incentives alone limited in their ability to effect compliance - need also

use status, prestige, personal power.

Communication

Central concept - decision-making processes depend on communications, he described

characteristics and focused on importance of communication in informal organization.

 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

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.
 SUMMARY

Chester Irving Barnard 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 extent 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…)

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