In “The Economy of Incentives,” the chapter reprinted here from The Functions of the Executive, Barnard argued that individuals must be induced to cooperate, since to do otherwise will result in dissolution of the organization, changes of organizational purpose. The executive needs to employ different strategies for inducing cooperation: to find use objective positive incentives and reduce negative incentives, but also to “change the state of mind, or attitudes, or motives so that the available objective incentives can become effective.” This approach Barnard refers to as “persuasion,” and he claims that” in every type of organizations. For whatever purpose, several incentives are necessary, and some degree of persuasion likewise, in order to secure and maintain the contributions to organization that are required.”