Interrelationship Between Management Functions

SOCIAL SYSTEM APPROACH: CHESTER I. BARNARD

Chester I. Barnard who developed the concept of cooperative social system is considered the father of social system approach. This approach looks upon organization comes into existence when (a) there are a number of persons in communication with each other, and (b) they are willing to cooperate for a common purpose. Barnard also recognized informal organization representing social interactions which generally do not have a consciously coordinated joint purpose. The executives should encourage informal organization to serve as a means of communication and group cohesiveness.

The main features of the social system approach are as follows:

1. Organization is treated as a social system. That is why; this approach resembles the human relations approach.
2. Relationships exist among the external and internal environment of the organizational.
3. Cooperation among group members is necessary for the achievement of organizational goals.
4. For effective management, efforts should be made for establishing harmony between the goals of the organization and those of the various groups therein. 

The main focus of the social system is to study different aspects of social systems. For the adherents of this school, organization is essentially a cultural system composed of groups of people who work in cooperation. For achieving the goals of the organization, a cooperative system of management can be developed only by understanding the social behavior of groups and individuals. In other words, an organization as a social system is affected by the cultural environment and different types of pressures. The concept of informal organization is also a contribution of the social system school. The analysis of social and group behavior in the context of social system has added to the knowledge of management. The supporters of this school advocate that efforts should be directed towards establishing harmony between the goals of the organization and goals of the group and the individual members.

Barnard identified the following functions of an executive: (a). maintenance of organizational communication, (b). securing essential services from individuals in the organization, and (c). formulating and defining the purpose. By performing these functions, the executives can achieve good human relations in the organization. Barnard also developed a new concept of authority known as acceptance authority.