Translated version of 963039.pdf Page 1 Current classic Management Page 2 Chester I.

Barnard THE FUNCTIONS OF THE EXECUTIVE Harvard University Press Cambridge, Massachusetts, and London, England Page 3 Chester Barnard FEATURES HEAD power, incentives and values in the organization www.sotsium.ru Page 4 UDC 005.9-057.177 BBK 60.832.1 B24 Publisher "Society" thanks Director of "Uralstroyservis" Dmitry Kiryushkina for assistance in the publication of this book

Translated from English.: V. Koshkin Barnard C. The functions of the manager: the power and value of incentives in the organization tion / Chester Barnard, trans. from English. V. Koshkin. - Moscow, Chelyabinsk: Society, IRISEN, 2009. - XXXII + 333 p. (Series: "Current classsika Management ") ISBN 978-5-91603-023-5 (Society) ISBN 978-5-91066-027-8 (IRISEN) Book of Chester Barnard (1886-1961) remains valid for 70 years classic management. The book is conceptualized forty management lenchesky author's experience, ended up being the head of largeNoah Corporation. Barnard was first introduced the concepts of formal and nonformal organization, developed a theory of power in the organization, arguing that the real power of the head only to the extent that any of its subordinates are prepared to recognize. Representing the organization as a complex system of co-operation of people, driven by indidual motives, he proposed a theory of incentives, stressing the importance of not only material incentives, but of persuasion. Ahead of time for 30 years, the author reflects on the corporate culture ture and value system of the organization. The book remains one of the nonMany balanced comprehensive description of the process management leniya organization as a whole. It is from this book, yougrew many branches of modern control theory. UDC 005.9-057.177

BBK 60.832.1 ISBN 0-674-32803-5 (English) 1938 and 1968 by the President ISBN 978-5-91603-023-5 (Society) and Fellows of Harvard Colledge ISBN 978-5-91066-027-8 (IRISEN) Smoking, AV, 2009 B24 Page 5 About GLAVLENIE Part I. PRELIMINARY OBSERVATIONS On the cooperative system. . . . . . . . . . . . A I. In INTRODUCTION ......................3 II. B The Man and the Organization of ................9 III. F IZICHESKIE LIMITATIONS AND BIOLOGICAL In the cooperative system . . . . . . . . . . . . . 23 IV. F Physiological and social factors In the cooperative system

. . . . . . . . . . . . . 39 V. P Principles for cooperative activities . . . . . . 47 PART II. THEORY AND STRUCTURE Formal organization. . . . . . . . . . . 63 VI. About EFINITIONS formal organization . . . . . . . 65 VII. T EORIYA formal organization . . . . . . . . . . .81 VIII. On TRUKTURA COMPLEX formal organization . . . 95 IX. H EFORMALNYE ORGANIZATIONS AND THEIR RELATIONSHIP With the formal organization . . . . . . . . . . . 113 PART III. Elements of formal organization. . . 123 X. About AGAIN AND TYPES OF SPECIALIZATION . . . . . . . . . . . 125 XI. E Conomy INCENTIVES . . . . . . . . . . . . . . . 137

XII. T EORIYA AUTHORITY . . . . . . . . . . . . . . . . . . . 159 XIII. On Rheda DECISION . . . . . . . . . . . . . . 183 XIV. T EORIYA opportunistic behavior . . . . . . 199 PART IV. The functions of the In the cooperative system. . . . . . . . . . . 211 XV. F FUNCTIONS MANAGER . . . . . . . . . . . . . . 213 XVI. P The process of MANAGEMENT . . . . . . . . . . . . . . . 233 XVII. P RIRODA RESPONSIBLE MANAGER . . . . . 257 XVIII. SW Conclusion of . . . . . . . . . . . . . . . . . . . 283 APPENDIX. . . . . . . . . . . . . . . . . . . . . . . . 295 P AZUMA IN DAILY LIFE

. . . . . . . . . . . . . 295 Page 6 From the Publisher A native of New England, Chester Barnard (1886-1961) is a kind of Except among the classics of management. Having spent 40 years in the company Bell Telephone System, he concluded his career as president of its offices in New Jersey. Barnard was one of the pioneers in studying the processes of decisionment decisions in the enterprises, the relationship between commercial and non-compact cial structures, and roles and responsibilities of managers. Released In 1938, the book "The functions of the head," had an enormous influence on modernexchangers, laying the foundations of modern control theory in the organization. Barnard's ideas about the essence of leadership is reflected in the work of many his followers. In addition, even if he was thinking about corporate culture and values. In his opinion, the true role of the leader is manifested etsya in the management system of values of the organization and increase loyalty, STI employees. Barnard started from the fact that companies and organizations are composed of fromindividual personalities, with individual motivation, and thus any large organization includes several smaller IMPLIEDdivisions whose goals leaders must take into account. For a businessman of his time Barnard was unusually constant of

Thelen, arguing that the authority and power in the enterprise there are only the extent of their subordinates are willing to admit. Hence his attention tion to the importance of organizational communication. He contrasted his approach is the position of authoritarian leader, manipulating subordinates GOVERNMENTAL, which operates strictly in accordance with a system of remuneration tions and short-term benefits. But Barnard's ideas concerning the organization of the soft variables values and corporate culture - remained intact thirty years, while the majority of specialists in management theory developed problems of the organization's structure and its implementation in the post-war society. As noted by J. Peters and Robert Waterman in his book "In Search of Excellence" Barnard's emphasis on the management of the corporation as a whole was notconventional idea, even in the early 1980s, and the more he was alone among the his contemporaries. From this book grew many branches of modern control theory. It first introduced the concept of Barnard formal and informal organizations, Organization, presented the organization as a complex system consisting of funcktsionalnyh subsystems with their own goals, developed a theory of power and incentives in the organization, formulated the basic principles of organizational onnyh communications. And as so often happens, the source of much more transparent, clearer and more elegant subsequent bloat, pilingGOVERNMENTAL numerous imitators. In 2008 we celebrated 70 years since the first edition of this book, but

interested readers to it is undiminished. The present translation is made from a single copy of the thirty-ninth edition, printed in 2002 Page 7 INTRODUCTION Since the publication of the book "The functions of the head," inseventeenth edition of which you hold in your hands, its impact on minds, and circulation grew steadily. In 1967 it was sold in four times more copies than in 1939, circulation increased almost every year, and in the past five years, this trend manifested itself most clearly. The work is almost Barnard all the lists of literature about the organization, references to it can be found in the well-known works, so, by JK Galbraith in "NoPTO industrial society "(1967) writes that Barnard belongs to "the most famous definition of the organization." The way this book is austere, dedicated neprosTym things, was able to win general respect, deserves a separate explanation. In this preface, I would like to link analysis of the organization at Barnard with the simple rationalistclassical theory, which was preceded, and with a lush timediversity that flourished after him. This will help to understand Why the voice of Barnard continue to listen and toWhat excited chorus of behaviorists, professionals, used generators in their decision-making theory and mathematical statistical methods, and other clinical and experimental experimental research of organizational behavior, not speakseries alone the generals, prime ministers, presidents and other

practices, unable to stifle it. Barnard has set itself an ambitious target. In the prewords, he writes that he sees his task in the creation of the general theory of theory of cooperative behavior in formal organizations. Cooperation, or cooperation occurs when human century to do what he is physically incapable of satisfiedthe thread alone. With the participation of other people's cooperation is rapidly transformed into a constantly changing system consisting of interrelated biological, psychological and social elements. To survive, it must be "eftively ( eective ), that is, to ensure achieving the goals, Lei organization, and "rational (ecient), ie, satfy the individual needs of participants. The head of longwives agree on these two processes - one that binds cooperative system with the environment, and the one that satisfies the Page 8 VIII INTRODUCTION satisfies the personal needs of its members - with each other. From this initial idea of co-operation should be famous definition of the organization as a "system we are conscious of coordination or strength at least two persons. " For the survival of the organization essentially important willingness to cooperate, ability to communication and the presence of a goal that is shared by all its members.

Functions of the head are reduced to ensure the system comcommunication, keeping the participants in the willingness to coeration and maintenance of clear vision with regard to organicOrganization. After describing these features, Barnard provides the basis for their determination of the ability to lead. This ability to ThRights to formulate solutions to ensure ethical intensity and quality of coordination of activities organized tion and its goals. It would be pointless to repeat here the theory BarnarYes. The fact that he created it, in itself surprising. "Functions of pykovoditelya "- this is the only theoretical work BarnarYes, in the book "Organization and Management", published Ten years later, contains articles that are either developing certain aspects of his theory, or have been written on the occasion (To date). Most of his life engaged in practical Barnard skim the leadership of organizations. He studied first at the number Ledge Mount Hermon, and then at Harvard, but was forced to leave the university without receiving a bachelor's degree. After He worked for ATT (American Telephone & Telegraph Company) for almost forty years. He entered the statistical packravlenie company, became an expert on Tariffs and administratrirovaniyu commercial operations, and finally - President Division ATT, New Jersey Bell Telephone Company. Barnard had no direct relation to the Hawthorne experiments cops, who were led by Elton Mayo A

on Western Electric factory near Chicago, but the personal values of komstvo with Mayo and his colleagues from the Harvard Business School had a great influence on his ideas. A On p. xxiv-xxv is a list of literature in which the inclusion HN all books mentioned in the preface the authors. Page 9 INTRODUCTION IX Barnard managed to combine a career with AT & T with social activities, which was highly unusual At the time, and today is not the rule. In particular, the He was president of the United Services Organization at the time of secondSecond World War (USO, United Service organized tion of leisure forces - governmental organization, established In 1941, the main form of work: clubs for soldiers, organized zatsiya touring artists in the army units), head of the General Education Board (Board of universal education - the benefitinstrumental organization founded by John D. Rokfelleby the author in 1903), president of the Rockefeller Foundation (after RamonYes Fosdick and before Dean Rusk), chairman of the National Science Foundation (National Science Foundation - an independent government agency), assistant head of Treasury properties of the United States, the official representative of the U.S. advisor the UN Committee on Atomic Energy, a member of

American Association for the Advancement of Science (AmericanSkye Association of the Advancement of Science - one of the largest scientific organizations in the world, founded in 1848) and American Academy of Arts and Sciences (The American Academy of Sciences and Arts, founded in 1780). He was a music lover and founded the BaBloch Society in New Jersey. On Barnard's personality, little is known. From the side, he seemed to be very restrained, majestic, and even inspired well-being goveyny fear. He did not create the school and did not leave students that teachers would continue to work, and incidentally, recreating Is it a bright image in memory. His colleagues at the corBell and the radio, those who succeeded him there, did not perceive it as cult personality. Those with whom I had known, in general noWhy could not say about his personal qualities. The presence of a of the ability to transform organizations in the effective nye and rational can neither confirm nor deny. To gain credibility, his book did not need a group of support from the staff, students and friends. Before proceeding to an analysis of strengths and weaknesses of one hundredRon Barnard's work and its place in the literature about the organization, It should be noted that he had made a presentation of their ideas in a time when there was a contradiction between the Hotornskih experiments and theories of scientific management, Page 10 X INTRODUCTION

associated with the works of F. Taylor and rationalist Henri Fayol theory of organization. "The functions of the head" were written so that Barnard could not find an explanation their own management experience in the classical theory organization and in the classical economic theory. Although He read a lot of diverse scientific literature (though unsystematically), to their own explorations led himlo familiarity with the works of Pareto and ardent supporter Pareto Lawrence Henderson, a biochemist with a penchant to interdisciplinary research. The finding that social Epidemiology is able to explain what is incomprehensible to classical economic theory and organization theory, strongly influenced by Barnard. If he had not communicated with the Hendersonom, Donemom, Mayo and other social scientists and clinical cysts, who studied the motivation of people in Hawthorne experiments, we could not formulate the central thesis of his theory. Due to familiarity with them, he obtained chill access to data and ideas that have undermined the concept of "Economic man" and have proof that scientific and rationalistic models of organization needare to be reviewed. The reports of the Mayo-Rotlisbergera-Dixon-Whitehead to studies conducted in the factory "Western Electrick ", studied the problem of motivating workers and guidemid-level drivers. Although the Hawthorne group managed to a number of important discoveries, and realize the potential of new

methods of interpretation of social data, its members have not developed a general model of organization. Barnard - and this is its similarity with the Fayolle - by virtue of his personal experishe was interested in the problems of senior management, as well as the company's relationship with the environment. His the first major achievement was that he created onschuyu model of organization that is different from the model and Fayol take into account the startling discovery that has made Hawthorne Group, watching over the production in the assembly shop, as well as during the experiments at the experimental site collectionki relay. It is difficult to separate those concepts that are in the Barnardhe thought, from those which he modified, developed and raceshiril. Starting from the idea of organizations as Original Russian text: . Contribute a better translation