Question

Which of the following statements about Chester Barnard’s contributions to administrative theories are correct?

1. He viewed organizations as cooperative systems requiring communication and a common purpose.

2. He proposed the Acceptance Theory of Authority, where authority depends on subordinates’ acceptance.

3. He emphasized rigid control and close supervision as the primary means to achieve organizational goals.
   

• A. 1 & 2
• B. 2 & 3
• C. 1 & 3
• D. All are correct

Answer 1

Answer:

A. 1 & 2

Chester Barnard's Contributions to Administrative Theories

• Chester Barnard (1886-1966) was an American business executive, public administrator, and author, known for his pioneering work in management theory and organizational studies. His most influential work, The Functions of the Executive (1938), laid much of the groundwork for the human relations approach to management.

Organizations as Cooperative Systems

• Barnard viewed organizations not merely as formal structures, but as cooperative systems where individuals consciously coordinate their activities.

• He asserted that for an organization to function effectively, there must be a common purpose, a willingness to cooperate, and effective communication among its members.

• This perspective highlighted the social and psychological aspects of organizations, moving beyond the purely mechanistic views of classical management theories.

Acceptance Theory of Authority

• Barnard proposed the revolutionary Acceptance Theory of Authority. Unlike traditional views where authority flows strictly from the top down, Barnard argued that authority depends on the subordinate's willingness to accept a communication as authoritative.

• He stated that a person can and will accept an authority communication only if:

  1. They understand the communication.

  2. They believe it is consistent with the purpose of the organization.

  3. They believe it is compatible with their personal interests as a whole.

  4. They are mentally and physically able to comply with it.

• This theory emphasizes the importance of legitimate communication, effective leadership, and the consent of the led in making authority effective.

• He also introduced the concept of the 'Zone of Indifference', which refers to the range within which an individual will accept orders without consciously questioning their authority. The wider this zone, the more effective the authority.

Clarification on Incorrect Statement

• Barnard did not emphasize rigid control and close supervision as the primary means to achieve organizational goals. This approach is more characteristic of classical management theories like Scientific Management (Frederick Taylor) or Bureaucracy (Max Weber), which focused on efficiency through strict rules, hierarchies, and close monitoring.

• Instead, Barnard focused on facilitating cooperation, securing contributions through incentives, and the executive's role in maintaining organizational equilibrium and fostering a cooperative environment. His ideas paved the way for more human-centric approaches to management.

Relevance for Competitive Exams

• Barnard's work is crucial for understanding the evolution of management thought from classical to neo-classical and human relations theories.

• Key terms like 'Cooperative Systems', 'Acceptance Theory of Authority', 'Zone of Indifference', and 'Functions of the Executive' are frequently tested.

• He is often grouped with thinkers like Mary Parker Follett and Elton Mayo, who emphasized the human element in organizations