American businessman
James David Mooney (18 February 1884 – 21 September 1957) was an American engineer and corporate executive at who played a role in international affairs in the 1930s and early 1940s. His career was disrupted when he was accused of Nazi sympathies in 1940. He is noted for his seminal contributions to the field of organizational theory.
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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.
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 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.
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Management Mind in the has always had a great contempt for politics. The point has been missed that although we, in the Automobile Industry have continually dismissed politics and government as quite unworthy of the attention of serious-minded men like ourselves, politics and government have been continually increasing their interest in the Automobile.
The informative phase refers to those things which authority should know in framing its decisions; the advisory, to the actual counsel based on such information; the supervisory, to both preceding phases as applied to all the details of execution. The point is that the line represents the authority of man; the staff, the authority of ideas. The staff is purely an auxiliary service. Its function is to be informative and advisory with respect to both plans and their execution. This is implicit in the word "staff" which is something to support or lean upon but without authority to decide or initiate.
There are two prime requisites in efficient staff service, coordination and infiltration. The tertn "co-ordination" describes the necessary method of sound staff procedure, but "infiltration of knowledge" is the ultimate purpose of all staff activities. Staff service is not alone for the top leader. It comes to him first, for he needs it in the making of his initial decisions, but the subordinates in the scalar chain, down to the very rank and file, likewise need it in the intelligent execution of all plans.
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.
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.
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As coordination is the all-inclusive principle of organization, it must have its own principle and foundation in Authority, or the supreme coordinating power. Always, in every form of organization, this supreme coordinating authority must rest somewhere, else there would be no directive for any truly coordinated effort. The term authority as here used need imply nothing of autocracy.