James D. Mooney

“Mooney and Reiley were concerned with certain universal principles and contributed four principles of organization, namely, the coordinative principle, the scalar principle, the functional principle, and staff-line principle.”

“Mooney's unpublished paper “The Science of Industrial Organization” (1929) portrays GM's multidivisional organization's use of the line-staff concept in organizing overseas assembly plants. Here I compare General Motors with Ford Motor Company, which had first-mover advantages overseas, and examine how each company organized and managed their international operations. “Linking pins,” a social-science concept, illustrates how GM's organizational hierarchy achieved vertical coordination of effort.”

“In retrospect, Mooney’s mission looks incredibly naive. It is astonishing that he could have been so close to affairs in Germany and yet not have realised the true nature of the Nazi regime; but it seems this was so. His efforts, though made in good faith, were kept secret at first, but eventually news leaked out and in the summer of 1940 PM magazine in the USA ran a series of articles accusing Mooney of Nazi sympathies and linking his meeting with Hitler to his earlier receipt of the German Order of Merit for services to industry in 1938.”

“Von Hitler wurde der Präsident von GM, James D. Mooney, 1938 für seine Verdienste um die Aufrüstung mit dem Orden des Deutschen Adlers (Erste Klasse) ausgezeichnet.”

“Mooney has made an exhaustive study of governmental, military, ecclesiastical and industrial organization in an effort to find underlying principles or precepts applicable to all forms of organization. He lists three basic principles: (l) the coordinative (2) the scalar) and (3) the functional. Each of these basic principles is further subdivided into subordinate principles for a total of nine identifiable principles.”

“In 1931, under the title "Onward Industry," Messrs. James D. Mooney and Alan C. Reiley published a full-length book examining the comparative principles of organization as displayed historically in governmental, ecclesiastical, military and business structures... Their book constitutes the first serious attempt to deal with the subject comparatively and synoptically.”

“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.”

“[Functionalism is] a distinction between kinds of duties.”

“The common impression regards this scale or chain merely as a "type" of organization, characteristic only of the vaster institutions of government, army, church and industry. This impression is erroneous. It is likewise misleading, for it seems to imply that the scalar chain in organization lacks universality. These great organizations differ from others only in that the chain is longer. The truth is that wherever we find an organization even of two people, related as superior and subordinate, we have the scalar principled.”

“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.”

“Worthiness in the industrial sphere can have reference to one thing only, namely the contribution of industry to the sum total of human welfare. On this basis only must industry and all its works finally be judged… The lessons of history teach us that no efficiency of procedure will save from ultimate extinction those organizations that pursue a false objective; on the other hand, without such efficient procedure, all human group effort becomes relatively futile.”

“There are two prime requisites in efficient staff service, coordination and infiltration. The tertn "co-ordination" describes the necessary method of sound staff procedure, but "infiltration of knowledge" is the ultimate purpose of all staff activities. Staff service is not alone for the top leader. It comes to him first, for he needs it in the making of his initial decisions, but the subordinates in the scalar chain, down to the very rank and file, likewise need it in the intelligent execution of all plans.”

“No advance in human knowledge will ever exclude the leader's need for the counsel of elemental human wisdom, and especially of collective wisdom, in the making of all important decisions.”

“The staff function in organization means the service of advice or counsel, as distinguished from the function of authority or command. This service has three phases, which appear in a clearly integrated relationship. These phases ^ are the informative, the advisory, and the supervisory.”

“In every organization there must be some function that decides or determines the objective and the procedure necessary to its attainment... may be called the determinative... in secular government always known as the legislative.”

“Cross-functionalism, however, cannot eliminate departmental organization; on the contrary the organized supervision of any function of this character becomes itself departmental. Thus out of cross-functionalism must grow cross-departmentalism. Cross-departmentalism is an extended application of the principle of horizontal correlation.”

“Although a separate function of some kind is implicit in the very existence of a separate department, there may be, especially in manufacturing procedure, certain general functions, appearing in some form of departments, which in turn may require organized supervision and correlation. Thus we have cross-functionalism.”

“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 third and effectuating principle of the entire scalar process is Functional Definition.”

“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.”