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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.
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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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.
Delegation means the conferring of a specified authority by a higher authority. In its essence it involves a dual responsibility. The one to vhom responsibility is delegated becomes responsible to the superior for doing the job. but the superior remains responsible for getting the Job done. This principle of delegation is the center of all processes in formal organization. Delegation is inherent in the very nature of the relation between superior and subordinate. The moment the objective calls for the organized effort of more than one person, there is always leadership with its delegation of duties.
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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.