While many brilliant writers and speech makers have been battling passionately about communism, fascism, socialism, and democracy, our studies of how governmental organizations actually function have forced us to the conclusion that there is little significance to these terms. Indeed, it has been our general observation that not only in different countries, but from generation to generation men go on organizing their governments and earning their living in much the same manner. Notable changes and improvements can be credited from time to time to the scientists and engineers, and in general to improved technology, but throughout history economic laws and the processes of production and distribution display an utter contempt for changes in the political complexion of government. In appraising the many experiments in governmental organization that are being tried currently throughout the world, it is important that we should not be thrown off the track by the circumstance that the various revolutionary movements or changes in government have adopted different symbols around which to rally supporters. The vital point is the plain fact that, once the controlling group gets into power, the practical circumstances of the situation force the new leaders to organize the government according to principles of organization that are as old as the hills.

The term organization, and the principles that govern it, are inherent in every form of concerted human effort, even where there are no more than two people involved. For example take two men who combine their efforts to lift and move a stone that is too heavy to be moved by one. In the fact of this combination of effort we have the reality of human organization for a given purpose. Likewise in the procedure necessary to this end we find the fundamental principles of organization. To begin with, the two lifters must lift in unison. Without this combination of effort the result would be futile. Here we have co-ordination, the first principle of organization. Likewise one of these two must give the signal "heave ho !" or its equivalent, to the other, thus illustrating the principle of leadership or command. Again the other may have a suggestion to make to the leader in the matter of procedure, which involves the vital staff principle of advice or counsel. And so on. Thus in every form of concerted effort principles of organization are as essential and inevitable as organization itself.

It is sufficient here to observe that the supreme coordinating authority must be anterior to leadership in logical order, for it is this coordinating force which makes the organization. Leadership, on the other hand, always presupposes the organization. There can be no leader without something to lead.

Organization begins when people, even if they be only two or more, combine their efforts for a given purpose. We have shown this by the simple illustration of two people uniting their efforts to lift and move some weighty object. This combination, however, is not the first principle of organization. It is only an illustration of organization itself. To find the first principle, let us carry the illustration a step further. The efforts of these two lifters must be coordinated, which means that they must act together. If first one lifted, and then the other, there would be no unity of action, and hence no true organization of effort. Here then we find the first principles of organization.

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By the term functionalism, considered as a principle of organization, we mean the differentiation or distinction between kind of duties. Thus it is clearly distinguished from the scalar principle, in which there is also differentiation, but of quite another kind. The scalar differentiation refers simply to degrees or gradations of authority.

It is essentially to the very idea and concept of organization that we there must be a process, formal in character, through which the supreme co-ordinating authority operates throughout the whole structure of the organized body. This process is not an abstraction; it is a tangible reality observable in every organization. It appears in a form so distinct and characteristic that it practically names itself, — hence the term Scalar Process.

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My own principal interest lies in the sphere of , which of all major forms of human organization is, in its present magnitude, the most modern. For this the reason is evident. The vast present-day units of industrial organization are products mainly of one creating factor, namely the technology of mass production, and this technology, born of the industrial revolution, has been almost exclusively an evolution of the last century. In contrast other major forms of human organization — the state, the church, the army — are as old as human history itself. Yet if we examine the structure of these forms of organization we shall find that, however diverse their purposes, the underlying principles of organization are ever the same.

The fact that functions may not be separated in organization does not in any way way destroy their identity as functions... The ideal of organized efficiency is not the complete segregation but the integrated correlation |of the three primary functions... The organizer must identify these functional principles, as they appear in every job, and make them the basis of his correlation... his duty is to correlate functions as such... The duty of the manager is to correlate who performs these functions... Management however represents the scalar principle... perpendicular correlations... true horizontal correlation requires other contact... The dissemination of understanding... of common purpose, of the relation of individuals to that purpose & to each other.

Cross-functionalism, however, cannot eliminate departmental organization; on the contrary the organized supervision of any function of this character becomes itself departmental. Thus out of cross-functionalism must grow cross-departmentalism. Cross-departmentalism is an extended application of the principle of horizontal correlation.

In the practical sense the word principle may be applied to any underlying cause of more or less correlated facts in any particular field of investigation. The word principles, as applied to organization, is used by us strictly in the latter meaning.

Coordination, therefore, is the orderly arrangement of group efforts, to provide unity of action in the pursuit of a common purpose. As coordination is the all inclusive principle of organization it must have its own principle and foundation in authority, or the supreme coordination power. Always, in every form of organization, this supreme authority must rest somewhere, else there would be no directive for any coordinated effort.

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Leadership is the form that authority assumes when it enters into process. As such it constitutes the determining principle of the entire scalar process, existing not only at the source, but projecting itself through its own action throughout the entire chain, until, through functional definition, it effectuates the formal coordination of the entire structure.