Organisation Theory Applied to Early Stage Startups
An Analysis Using Chester Barnard’s ‘Functions of the Executive’
Sharada S., MPP 29/2014
Abstract
This paper analyses administrative structures in startups through the contributions of Chester Barnard to the theory of organisation. Chester Barnard is credited with the for his landmark contributions to the theory of organisation through his book, ‘The Functions of the Executive’ wherein he aspired to contribute to a science of organisation. Barnard emphasises skills, judgement, stewardship, and places a premium on professionalism and ethics, while trying to provide a systems view of organisations through a psychological theory of motivation and behaviour, a sociological theory based on …show more content…
This seems necessary to preserve a sense of personal integrity” (Barnard, 1938: 13). In Barnard’s world, individuals have the free will to cooperate or not not cooperate, and by extension, to join and leave organisations as and when they choose to.
Decision-making and the decision process: Barnard believes that making decisions is a burdensome task, and warns of a tendency for personnel to avoid responsibility (due to their fear of criticism). He therefore believes that one of the duties of the executive lies in distributing decision making roles. He thus eloquently argues “The fine art of executive decision consists in not deciding questions that are not pertinent, in not deciding prematurely, in not making decisions that cannot be made effective, and in not making decisions that others should make” (Barnard, 1938: …show more content…
Barnard believes in setting up the right incentive structures for individuals to contribute effectively. He emphasises non-economic motives such as social standing and competitive environments, prestige, reputation and opportunities for more participation over material inducements.
Leadership and Executive Responsibility: Barnard believes that while cooperation is the creative process, leadership is the “indispensable fulminator of its forces” (Barnard, 1938: 59). Barnard argues that leaders must create meaning for the individuals in an organisation to work towards, and inculcate the belief in the real existence of a common purpose (Barnard, 1938: 87) . He also believes that leadership must go beyond deciding the right thing to do, and to the job of getting it done. He views a leader as a teacher, setting goals and directing philosophies for individuals in an organisational structure. Barnard (1948: 109-110) describes the nature of
An Analysis Using Chester Barnard’s ‘Functions of the Executive’
Sharada S., MPP 29/2014
Abstract
This paper analyses administrative structures in startups through the contributions of Chester Barnard to the theory of organisation. Chester Barnard is credited with the for his landmark contributions to the theory of organisation through his book, ‘The Functions of the Executive’ wherein he aspired to contribute to a science of organisation. Barnard emphasises skills, judgement, stewardship, and places a premium on professionalism and ethics, while trying to provide a systems view of organisations through a psychological theory of motivation and behaviour, a sociological theory based on …show more content…
This seems necessary to preserve a sense of personal integrity” (Barnard, 1938: 13). In Barnard’s world, individuals have the free will to cooperate or not not cooperate, and by extension, to join and leave organisations as and when they choose to.
Decision-making and the decision process: Barnard believes that making decisions is a burdensome task, and warns of a tendency for personnel to avoid responsibility (due to their fear of criticism). He therefore believes that one of the duties of the executive lies in distributing decision making roles. He thus eloquently argues “The fine art of executive decision consists in not deciding questions that are not pertinent, in not deciding prematurely, in not making decisions that cannot be made effective, and in not making decisions that others should make” (Barnard, 1938: …show more content…
Barnard believes in setting up the right incentive structures for individuals to contribute effectively. He emphasises non-economic motives such as social standing and competitive environments, prestige, reputation and opportunities for more participation over material inducements.
Leadership and Executive Responsibility: Barnard believes that while cooperation is the creative process, leadership is the “indispensable fulminator of its forces” (Barnard, 1938: 59). Barnard argues that leaders must create meaning for the individuals in an organisation to work towards, and inculcate the belief in the real existence of a common purpose (Barnard, 1938: 87) . He also believes that leadership must go beyond deciding the right thing to do, and to the job of getting it done. He views a leader as a teacher, setting goals and directing philosophies for individuals in an organisational structure. Barnard (1948: 109-110) describes the nature of