CONTRIBUTION BY CHESTERUN BARNARD
Chester Irving Barnard (1886-1961) was a telecommunications executive. He looked at organizations as systems of cooperation of human activity and was worried about the fact that they are typically rather short lived. According to Barnard, this happens because organizations do not meet the two criteria necessary for survival: effectiveness and efficiency.
He contributed the following theories to management which are very helpful even today. These are: the theory of authority and the theory of incentives. In the theory of authority he states that for a communication from a boss to a subordinate to be authoritative, it must meet the following 4 conditions:
1. It has to be understood by the subordinate.
2. It should be possible to the subordinate to comply.
3. The subordinate has to see no incompatibility between the communication and his/her own goals. 4. The subordinate has to see no incompatibility between the communication and the objectives
of the organization.
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