Bureaucratic Management
Max Weber gave the theory of Bureaucratic Management in 1915. Bureaucracy is a specific form of organization defined by complexity, division of labor, professional management, and hierarchical management control. Weber's theory has two essential elements - organizational hierarchy and rules-based management. Weber made a distinction between authority and power and advocated that authority must be given to the most competent and qualified people.
Bureaucratic management as one of the schools of classical management emphasizes the need for organizations to function based on professional management and hierarchical management control.
Weber (1864-1920), was a contemporary of Fayol and was one of the major contributors to the management school of thought. He observed that nepotism, which is the hiring of relatives in the organization, based on their relationships with owners and regardless of their professional competence, capabilities, and qualities was prevalent in most organizations. Weber (1915) felt that nepotism was not the right way of running an organization, was grossly unjust, and eventually hindered both the progress of individuals as well as growth or organizations. He, therefore, identified the characteristics of an ideal bureaucracy. According to Weber, bureaucracy represents the most efficient organizational design. Taylor emphasized the separation of planning and doing tasks.
Bureaucracy word is derived from the German word 'bur' and means “office”, referred to organizations that operated on a rational basis. According to Weber, "bureaucracy is a highly structured, formalized, and impersonal organization. In other words, it is a formal organization structure with a set of rules and regulations". Many leaders follow the bureaucratic leadership style.
Advantages of Bureaucracy
Nowadays, the term "bureaucracy" is used to denote excessively complicated administrative procedures with multilayered systems and processes. Clubbed with rigidness in operations with mountains of paperwork, procedures, and rules bureaucratic model is believed to slow down an organization's capacity to achieve stated goals. However, the bureaucratic characteristics of organizations outlined by Weber have certain advantages.
- It helps remove ambiguities and inefficiencies that characterize many organizations.
- Undermine the culture of patronage that he saw in many organizations.
- Competence and creativity thrive within a bureaucracy as bureaucracy demands a higher level of education and self-direction.
- The structure of bureaucracy creates more job security and provides a better work-life balance to the employees.
- In a bureaucracy impersonal relationships are formed, equality is respected and provides everyone an equal opportunity to succeed.
- In a bureaucracy, specific roles and duties are assigned that enable managers to supervise work and facilitates a team-based environment.
- It encourages specialization and promotes problem-solving and cost efficiencies by putting the best people at the best jobs.
Sources of Power
Weber also made a distinction between authority and power. Weber believed that power educes obedience through force or the threat of force which induces individuals to adhere to regulations. According to Max Weber, there are three types of power in an organization:-
- Traditional Power
- Charismatic Power
- Bureaucratic Power or Legal Power
Features of Bureaucracy:
- Division of Labor.
- Formal Hierarchical Structure.
- Selection based on Technical Expertise.
- Management by Rules.
- Written Documents.
- Only Legal Power is Important.
- Formal and Impersonal relations.
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