THE ESTABLISHMENT OF AN ENVIRONMENT IN WHICH PEOPLE CAN EFFECTIVELY PERFORM IN A FORMALIZED GROUP FOR THE ATTAINMENT OF GROUP GOALS

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• Collection: NGA Records (Formerly NIMA)
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Approved For Release 2008/07/07 CIA-RDP73T00325R000100110005-6
c
Appendix A 127

on fostered in any given enterprise is known as "the management" of the
t
the "St1111L1- ~
" enterprise. The teen therefore covers the process of managing,
the combined human ability involved i
i

~
the utmost.
i n manag
ng and the per-
sonnel required to manage.
;lellt aS Dart
e said, "con-' More concise definitions have become more common. A
E
en cooperate
.
sample is this one by Harry A. Hopi in 1942:22 " .. it may be
~
erial wealth; well to provide what scientists describe as a `frame of refer-
'
ollowers; the ~ ence,
in the foam of a definition of the teini.... [i\~anage-
~n of laU-
g` g meat) may be conveniently and accurately summarized and

se of shop or i combined in the statement that management is the direction
,f men. Ruled ~ of an enterprise, through planning, organizing, co-ordinati--zg
nercial policy and controlliaig of its human and material resources
toward
ms as to what ~ ,
the achievement o f a predetermined objective."
ial aspects of 1 The 1962 conference referred to above yielded the follow-
ing summary by Professor Koontz for a useful conceptual
appearing as ~ ramework:23 �
eague?' ~~ 1] ...the establishment of an environment in which people
~an effectively perform in a formalized group for the attainment
ientific manage- E of group goals.... [2] The task of the manager [isJ to do those
thods and proc- t
ound to be best ~ things which establish such an environment for performance... .
[3] divide the activities that mana
ers do (

17nore, scientific ~
artments of ~
d g
as managers, not as
salesmen, financiers, engineers, etc.) into a number of fimctions
l
i
h
ep
1, in fact, deter- ~ ...p
ann
ng (t
e choosing of goals, policies, procedures, and
programs from among available alternatives )
organizing (the
what goods the ,
grouping of things to be done and the establishment of necessary
authority relationships to assure results and coordination of ef-
fort), staffing (the appraisal, selection, and training of people-
;ives three pages the manning of the organization), direction the guidance, over-
ent. One defini- seeing, and leading of people), and control (the measurement
and correction of activities to make sure that plans are being ac-
1 complished).... I have found that this framework is intelligible
yen propose is put to the perceptive practitioners, many of whom see their jobs
output of various pretty much in this context.
process is effected
Again, die
ense The foreword to a 1964 casebook in Production Manage-
.
~ s
ut forth this effort ment gave this incidental description:24
i.
t
t
f
1
E,
[
6
~ Approved For Release 2008/07/07 CIA-RDP73T00325R000100110005-6
S
g many of the
~n that `5�esearcll
;tigators, Mower
hey go on to say:
is and the data
. consist largely
maires. In other
hat people say
m they come in
;lesion with that
;sor Tagiuri, who
Sttrrly of Values
l positions in the
(manufacturing,
who began their
pi's data indicate
Heel-managers re-
the nonscientist
but not so many
;est that the re-
ave suggested-
at aI�e similar in
nt to the Inanage-
~f administration.
ve find that malty
to a given ftine-
ise that facilitates
.marketing know-
at there are Inan-
Approved For Release 2008/07/07 CIA-RDP73T00325R000100110005-6
Some Conedirsions and Implications 113
agement control pruiciples that are applicable to all parts of
an organization.
The framework suggests a way of sorting out various types
of research that currently tend to be lumped together. For
example, most of the work done under the label of opera-
tions reseal�eh in fact relates to the aI�ea that we have called
� operational control ~Ve have suggested that conclusions that
are valid for that process are not necessarily valid for other
processes. It is probable that operations research results are
not valid for problems such as transfer pricing or the moti-
vation of heads of profit centers.
~ SOD'IE IMPLICATIONS FOR SYSTEMS DESIGN
~ From the foregoing analysis, some generalizations can be
~ drawn about the over-all problem of designing planning and
# control systems.
First, it seems clear that t't~ startiti~r
f ~oirit it con ~~ ~~~~'
~f^`the- ~ --- ~ 1 s.ntctton;
'over=apt system � sliott.ld bt; rrattagetz.ent control, a
i a?istirt?tiisl.ccl horn str< ,~___..-._~~..~._., ~ r yet exist, it is to be exi
speclfic problems, it is externally oriented,. it.>s ,Irregula>,_ ,it is
heavily staff oriented, it is logic�11 ~ ~~_~ nlan< =~emel~t cvnt>,ol I oped in many companic
~sys ens ~ lit be clesibncd so �as to tike alto accvu.nt +-~le moI ~ the specific areas being
`'l~.ilpultanc ileed.s v1 tl7e strategic pianI]crs c;r c~ul{,~;:t ancliy puters are used commol
F These observations h.
~~li.StCl'il~il. lli]c:ratiil!? ii1~C11I11~it1D1~., lint it Ca?il)Ot .pOSS1Li~' f01��'i-~
Se:: ~~ll these needs, nor ~i.~ulci._it be cvorihwhile t~ supply?., jeetive of some systems
~� outiilely infol�nlativll. that is needed only occasionally., evert' grated data processing
fit ehe neECl could lie foreseen. ,~ ~: ~r>~:.w ~ rf]ian2jelilent cvli%rol i:,
~~. G.: ~ -...:.
lvl~iliagemcnt 'colitrol also takes information from areas ~ shoclld be focusi~ci of i tit �~
where operational control devices are used, but the coupling ~ knot be much coiiceriled
between the two_need,not necessarily__be.,tight.'~"?~~~~~ticnal? in view of the irregul~
controTiisualiy involvES a tremendous al-~.~n]nt of de+tail, ancla character of these prof
Y ; tional control 13.roc~'cll+r
all that is neeclecl fvr r:.-~11~.^erlent eonti�vl t~urpvsLS is a s;t%a ~~-~"~_..-~rm-..,'~,.-.`~~
Y ~
v~ sulllmarizin~; and transiatinr~: this cl, tail so as. to silo~~' th~t,a r into ;rated cl~lta Zn�oc~_
OpEr~itlOnS al'G proceeclint; Scitl.`ii~1CtOTlly OT,_t~,,,ti~C,y,',.,~1iE~~,11Ut;~~ ~latloll OI alt. 1)OSS.II;l~ 1; 4.
~;..~.. ~
~:
"''-Finally the foregoiny~
~ ~i:1;=~'1"; l.'t1C trOLl111E Sl)Ot5 al'E. j~.
~-_-~ 3.niorl]lation hluidling iS sul~servienf`to"'i~iart~gelnent=con:{ theory, Or Cybet'I]CtfcS,
~ti�vl. The needs ul the letter dictate"the colistruction of tll~ generalizations al.lout s~
fol�IU..I., and not nice versa: �~. ~..`..~'"~"`-"'.~.~ .;.>fo+.icy i~
%:..
'~'tl~e only= cornulon dez.ornrnator for bringing togetre.r tne~
heterogeneous e}.ements of outjntts .incl. inputs that are4th~r
,, concern of maTl.~,elnent. -,. , , .. -..--~,;-~~ ~:~~..,~;-r.,-~.:-~~~y::..,,~,,:., .~.
c~::~�.::: ,
fourth, ;^oll~i~uters allcl mathematical models cannot `li~e~'
tic cssciice of this central systsni~., Iii management control,
~~~the�judgme`iit and feelings of htmai beings are dominant; in
computers they are necessarily absent. In strategic planning,
a company-wide model can be valuable as a tool for exami-
nation of the repercussions of proposed strategic moves
throughout the whole enterprise. Although few such models
yet exist, it is to be expected that they soon will be devel-
oped in many companies. In operational control, models for
the specific areas being controlled are essential, and com-
puters are used commonly.
These observations have implications for the long-run ob-
jective of some systems experts,_described by_them as inte~~
grated data processing.-"_`lle ~inalysLS suggests that, because;`
~"manabeinent control 13 central, integrated data l~rocessingl
~shoLilcl be foeusecl on needs of management control_It shoilld�~
''not-bemuch concerned with problems of strategic planning,
in view of the irregular, nonrecurring, and unpredictable
--~~;~
character of these problems. ~lidiJ.d'he-'linked fo oli~ei~a= ~-
Eic~iial collirol`~j~roceclures, �as these are de~~ela}~ed, but ar,,
t ... -. ,~
.integrated data processi+.:+~ sys~enl need not a~i~ait the instal-
.:..:r..:.~�a;. zr .
~`~l.ation of all possible o;~erational contr~l:prcceclures.,,~
~~�'~''�Ninally, tlieVforegoing'analysis`sliould be related to systems
theory, or cybernetics, which is a tiny but growing body of
generalizations about systems in general, whether in an or-
ganization, an organism, an organ, a single cell, or even in
certain nonliving structures, such as rivers, stars, and weather.
Within the broad framework of systems theory, it may be
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