The informative phase refers to those things which authority should know in framing its decisions; the advisory, to the actual counsel based on such … - James D. Mooney

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.

When a member of an organization is placed in a position with duties ill defined in their relation to other duties what happens? Naturally he attempts to make his own interpretation of those duties and, where he can, to impose this view on those about him. In this process he encounters others in similar cases, with friction and lack of coordination as the inevitable result.

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.