ABSTRACT
IN THE preceding chapter an industrial organization as a social system was outlined. In this chapter the application of this point of view to the human problems of management will be considered. The function of management, stated in its most general terms, can be described as that of maintaining the social system of the industrial plant in a state of equilibrium such that the purposes of the enterprise are realized. To achieve this objective, management has two major functions: (1) the function of securing the common economic purpose of the total enterprise; and (2) the function of maintaining the equilibrium of the social organization so that individuals through contributing their services to this common purpose obtain personal satisfactions that make them willing to co-operate. 1 These functions are interrelated and interdependent. Failure to achieve the first objective will in time make co-operation of any kind unnecessary. Failure to obtain satisfaction from co-operation will prevent in time the effective achievement of the common economic purpose of the organization. If the enterprise is to survive, the effective performance of these two functions is necessary. This is the major problem of management.
