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 investig… - James D. Mooney

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.

The technique of management, in its human relationships, can be best described as the technique of handling or managing people, which should be based on a deep and enlightened human understanding. The technique of organization may be described as that of relating specific duties or functions in a completely coordinated scheme. This statement of the difference between managing and organizing clearly shows their intimate relationship. It also shows, which is our present purpose, that the technique of organizing is inferior, in logical order, to that of management. It is true that a sound organizer may, because of temperamental failings, be a poor manager, but on the other hand it is inconceivable that a poor organizer may ever make a good manager... The prime necessity in all organization is harmonious relationships based on integrated interests, and, to this end, the first essential is an integrated and harmonious relationship in the duties, considered in themselves.

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.