Functions of the Executive

Chester Barnard’s management theory can best be defined as focused on managing individuals in organizations rather on than managing organizations. His theory begins with the psychological need of [Page 292]individuals to meet their goals and aspirations (large and small), their recognition of the inability to meet their goals by their own actions alone, and thus, the necessity to cooperate with others in order to function as they wish. His theoretical contributions are marked by his connecting these assumptions to the formation of organizations and the role of leaders in managing human organizations. Barnard’s work has remained significant for nearly a century, during which time scholars and leaders have studied and navigated organizational shifts around the globe. Barnard’s Functions of the Executive, published in 1938, is remarkable for its comprehensiveness and depth. He details ways in which the human need for association, grounded in biological and physical limitations, expresses itself in cooperative efforts; the dynamics of authority and power and under what conditions individuals follow direction from supervisors without questioning; the prime role of interpersonal and organizational communication; the influence of informal groups; the definition and role of morals in executive leadership and organizational purpose. Clearly, Barnard’s work, written during times of turbulence and change in American society, has strong applicability to the relentless global changes of the 21st century. This entry focuses attention on three fundamental factors of Barnard’s theory: (a) basic need of individuals for association to meet their goals and aspirations, (b) communication and human interaction, and (c) authority. Following the explication of these key factors, the importance of Barnard’s theory is presented.