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" "An organization can secure the efforts necessary to its existence, then, either by the objective inducements it provides or by changing states of mind. It seems to me improbable that any organization can exist as a practical matter which does not employ both methods in combination. In some organizations the emphasis is on the offering of objective incentives — this is true of most industrial organizations. In others the preponderance is on the state of mind — this is true of most patriotic and religious organizations.
Chester Irving Barnard (November 7, 1886 – June 7, 1961) was an American business executive, public administrator, and the author of pioneering work in management theory and organizational studies.
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It is in the nature of a leader’s work that he should be a realist and should recognize the need for action, even when the outcome cannot be foreseen, but also that he should be idealist and in the broadest sense pursue goals some of which can only be attained in a succeeding generation of leaders. Many leaders when they reach the apex of their powers have not long to go, and they press onward by paths the ends of which they will not themselves reach. In business, in education, in government, in religion, again and again, I see men who, I am sure, are dominated by this motive, though unexpressed, and by some queer twist of our present attitudes often disavowed. Yet, ‘Old men [and old women] plant trees’... to shape the present for the future by the surplus of thought and purpose which we now can muster seems the very expression of the idealism which underlies such social coherence as we presently achieve, and without this idealism we see no worthy meaning in our lives, our institutions, or our culture.
Formally this work is divided into four parts, but in a sense it consists of two short treatises. One is an exposition of a theory of cooperation and organization and constitutes the first half of the book. The second is a study of the functions and of the methods of operation of executives in formal organizations.
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The making of decisions, as everyone knows from personal experience, is a burdensome task. Offsetting the exhilaration that may result from correct and successful decision and the relief that follows the termination of a struggle to determine issues is the depression that comes from failure, or error of decision, and the frustration which ensues from uncertainty.