Alongwith scientific management and the manager's tasks, many scholars and practitioners were thinking about experimenting with, and writing on, industrial psychology and on social theory both of which, in many instances, were stimulated by the scientific management movement. We can get the flavor of these developments by looking briefly at the emergence of industrial psychology, the growth of personnel management, and the development of a sociological approach to human relations and management.
In determining that the task of executives (by which he meant all kinds of managers) was one of maintaining a system of cooperative effort in a formal organization, Barnard addressed himself first to the reasons for, and the nature of, cooperative systems. The logic of his analysis can be seen in the following steps.
Bernard's thesis is a social systems approach, concentrating on major elements of the managerial job, containing extraordinary insights on decision making and leadership.