4.2.3 BARNARD AND SOCIAL SYSTEMS THEORY : The contributions of Chester Barnard to the management are over whelming. His book “
The Functions of the Executive “ is regarded as the most influential book on the management
during the pre- modern management era. His analysis of management is truly a social systems
approach. In determining the tasks of executives, he has analysed the nature of cooperative social
systems, as he found non- logical factors also influencing human behaviour in the organisation.
The major contributions of Barnard can be presented as follows :
1. Concept of Organisation : Barnard suggests that classical concept of organization
does not fully explain the features of an organization. He has defined formal organization,
as a system consciously coordinated activities or courses of two or more persons. He
opined organization, exists in the following conditions -
i.
There are persons able to communicate with each other.
ii.
They are willing to contribute to the action.
ii.
They attempt to accomplish a common purpose.
2. Formal and informal Organisations - Bernard suggested that executives should
encourage the development of informal organisation, to serve as a means of
communication, to bring cohesion in the organisation, and to protect the individuals
from dominance and on slaught of the organization. Both the formal and the informal
organisations, depend on each other and there is continuous interaction between the
two. Therefore in managing an organization, managers should take into account both
types of organisation.
3. Elements of Organisation – According to Barnard, there are four elements of a formal
organisation they are –
1. a system of functionalisation so that people can specialize.
2. a system of effective and efficient incentives to induce people to contribute
to group action.
