"The third and effectuating principle of the entire scalar process is Functional Definition."

“The technique of management, in its human relationships, can be best described as the technique of handling or managing people, which should be based on a deep and enlightened human understanding. The technique of organization may be described as that of relating specific duties or functions in a completely coordinated scheme. This statement of the difference between managing and organizing clearly shows their intimate relationship. It also shows, which is our present purpose, that the technique of organizing is inferior, in logical order, to that of management. It is true that a sound organizer may, because of temperamental failings, be a poor manager, but on the other hand it is inconceivable that a poor organizer may ever make a good manager... The prime necessity in all organization is harmonious relationships based on integrated interests, and, to this end, the first essential is an integrated and harmonious relationship in the duties, considered in themselves.”

“In the practical sense the word principle may be applied to any underlying cause of more or less correlated facts in any particular field of investigation. The word principles, as applied to organization, is used by us strictly in the latter meaning.”

“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.”

“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.”

“The reason for the phenomenon we call organization is as fundamental as human life itself. It has its roots in the fact that man, in every fibre of his being, with the full force of every motive he has brought with him through the ages, is stamped indelibly as a social creature.”

“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.”