Chester Irving Barnard

Biography

Statistician at AT&T

President of New Jersey Bell Corp.

Worked with Henderson

The Functions of the Executive

3 Functions

Maintainance of organization communication

Securing essential services

Formulation of purpose

2 Conditions

Secure both objectives and cooperation

Be EFFECTIVE (timely) and EFFICIENT (satisfy motives)

Barnard-Simon Theory of Organization Equilibrium

Principle of Satisfactory Exchange

Inducement Contribution Theory (Theory of Motivation)

2 Ways to Induce Cooperation

Incentive method

Persuasive Method

Coercion

Propaganda

Inoculation

Informal Organization

Acceptance Theory of Authority

Workers have to believe that the manager can give orders

Workers REWARDED for compliance

DISCIPLINE for non-compliance

Workers RESPECT manager