In 1938... a business executive with academic talents named Chester Barnard proposed the first new theory of organizations: Organizations are cooperative systems, not the products of mechanical engineering. He stressed natural groups within the organization, upward communication, authority from below rather than from above, and leaders who functioned as a cohesive force. With the spectre of labor unrest and the Great Depression upon him, Barnard's emphasis on the cooperative nature of organizations was well-timed.
Chester Barnard