advantages and disadvantages of bureaucratic management theoryadvantages and disadvantages of bureaucratic management theory

If workers are paid on a fixed salary and are asked to work extra hours, then their work productivity levels invariably decline. bureaucratic management and workplace well-being. A huge staff must be managed, which necessitates the presence of a strong leader. Introduction & history Function Rulemaking Bureaucratic "Red Tape" Politics Advantages & disadvantages Conclusion Questions 3. It can be a challenge to increase productivity. This allows the M&A process to be completed with relative ease because most workers in both environments are already working in similar ways. The advantages are: The advantages are: Specialization: Every employee or member is assigned to perform a . They also tend to focus more on the general good compared to those working for other types of organizations. Jacob Morgan, writing in Forbes, gives bureaucratic organization structures a complete brush off: "This type of a model makes sense for linear work where no brain power is required and where the people who work there are treated like expendable cogs.Every single organization I speak with, work with, and research, is looking to flatten out their structure. 3. The big thinkers of the day conceived it as a way to streamline operations, increase productivity and enhance the bottom line. Weber, Max. D Katz. Democracy: Emphasis on qualifications and technical competence make the organization more democratic. When individuals at lower levels pursue personal objectives, the overall objectives of the organization may be neglected. Leaders in the bureaucracy should develop systematic methods for dealing with various job situations. Not only does a bureaucracy struggle to change when markets evolve, but the structure also creates delays when new best practices have been developed. On the other hand, Harolds bureaucratic leadership style is obvious in how he organized and oversaw ITT as president. With greater predictability comes more opportunities for personal growth for everyone. Whether a department has 1 worker or 100 workers, the rules in place create a shared efficiency where every worker produces similar results so that an outcome of any size can be achieved. There is no emphasis on creating additional competencies. It is not always a system that is efficient. Your email address will not be published. Companies can keep adding teams to their structure to take on more work because they are confident that each project will be completed to the same skill and quality levels. Leaders will not usually listen to the advice of their team in this style either, though they might solicit for new ideas from time to time. Because rules and laws govern the actions of a worker within a bureaucracy, there is less freedom to act or make independent decisions. Requires huge capital: The theory requires an investment of huge capital and consider as a costly system. Qualifications and merits may create less overall competition for open positions, but once those positions are filled, it can feel like a dead-end street to the worker. Goal Displacement: Rules framed to achieve organizational objectives at each level become an end to themselves. 7. If you liked this article, we bet that you will love the Marketing91 Academy, which provides you free access to 10+ marketing courses and 100s of Case studies. 1. 2. We hope that this bureaucratic leadership guide would have helped you understand this leadership model and its role in channelizing the entire organization. Another disadvantage to a bureaucratic structure is the way finances are managed, more specifically, the way the budget is allocated. 1. "Peter principle." Officers in the bureaucratic administration must be strong-minded and bold to preserve the well-structured framework. Advantages and Disadvantages of Bureaucracy. If a government is run by bureaucrats and . It will be argued in the discussion that the approach is characterized by hierarchical distribution of power and . Answer (1 of 5): The advantage is probity. Research and development, production, marketing, distribution, and administration are some categories that the corporation might be divided into. On the upside, it manages, he believed, to "eliminate from official business love, hate, and all the personal, irrational, and emotional elements that escape calculation." (Weber, 1982). 5. theory, bureaucratic management theory, or the bureaucratic theory of management [10]. The hierarchical structure of bureaucracy ensures that the bureaucrats who administer the rules and regulations have clearly-defined tasks. Impersonality: A bureaucratic organization stresses a mechanical way of doing things. So bureaucracy literally means "government with a small desk.". Some of Fayol's principles are still included in management theory and practice, including the following: Scalar chain: An unbroken chain of command extends from the top to the bottom of the organization. The literal meaning of bureaucracy is rule by office or by officials. 1. In an ideal bureaucracy, the principles and processes are based on rational, clearly-understood rules, and they are applied in a manner that is never influenced by interpersonal relationships or political alliances. Regulations and rules To sustain structure inside the company, the system requires a specified set of rules, regulations, and processes. Definition and Examples, Complex multi-level administrative hierarchy, Standard set of formal rules or operating procedures, A chain of command that is hierarchical; the top bureaucrat has ultimate control, and authority flows from the top down, A clear division of labor in which every individual has a specialized job, Clearly written, well-established formal rules that all people in the organization follow, A clearly defined set of goals that all people in the organization strive toward. In his 1957 work Social Theory and Social Structure, American sociologist Robert K. Merton criticized earlier theories of bureaucracy. Cons. 8. . Even though he mostly depended on a certain structure to keep his firm running, he nonetheless encouraged his employees to be creative and imaginative. All administrative and management activities are delegated to permanent offices, allowing for clear lines of authority, accountability, and responsibility. Therefore, the hypothesis of the study is rejected. Defining products, roles, and the logic of . 1.0 INTRODUCTION Project Organisations is the systematic arrangement of people in projects. Consequently, there is less freedom and individuals who don't follow the rules may face consequences or penalties. However, unlike other leadership styles, such as charismatic leadership, the bureaucratic management system is simple and implemented. Centralized management resembles a dictatorial form of leadership where employees are only expected to deliver results according to what the top executives assign them. (2022, December 1). Bureaucratic rules and regulations aren't really helpful. Classical management theory helps to create better working conditions. Paperwork: Bureaucracy involves excessive paperwork as every decision must be put into writing. It has policies and procedures (or rules and laws) that are inflexible and provides consequences to those who do not follow the procedures or laws. As an example, consider a software firm. 6. The issue with a bureaucratic leadership style is that the focus tends to be on specialization and consolidation. The goal of each relationship is to ensure that the best possible results can be achieved. The German sociologist Max Weber in his bookEconomy and Societysuggested the ideal as well as the least ideal ways through which a society could be formed. British humorist Cyril Northcote Parkinson wrote about Parkinsons Law in 1955, based on his years of experience in the British Civil Service. 9. . 2. Management publications now note that "Bureaucracy is simply unable to cope in this new, rapidly changing worldIts not agile enough." It is a process that fosters safe productivity, but limits the true productive potential of individuals and departments. Bureaucratic Management Theory. Applying rules and policies strictly and consistently reduce the chances that some people will receive more favorable treatment than others. Job performance that is judged by productivity, or how much work an individual gets done. It also encourages preservation of jobs even when they become redundant. This leadership style may be beneficial in highly regulated industries, institutions, and government setup that incorporates a rigid structure functioning through defined rigid rules. 3. In this, power comes from the position of the leader instead of the characteristics or ability to lead. Ittana.org: 20 Advantages And Disadvantages Of Bureaucracy, Cleverism: Bureaucratic Leadership Guide: Definition, Qualities, Pros and Cons, Examples. Specialization: A bureaucratic organization provides the advantages of specialization because every member is assigned a specialized task to perform. Googling "power struggle at Amazon," returns results of many books about power struggles that are for sale at Amazon, but not a single article about anyone trying to wrestle control from Bezos. The establishment of work study, planning department, training of workers, and standardization requires more money. If it is not used, then the expenditures will not be accounted for in the next budget cycle. It is characterized by a hierarchy of power and applying a set of rules for management and decision-making. These features tend to get a lot of criticism, but there are plenty of advantages to bureaucracy, especially when the structure is built with an emphasis on equality. Bureaucratic organizational structures can also create boredom for their workers, resulting in decreased employee morale. It provides trained minds for achieving higher degree of excellence in all branches of shop management. However, he also warned that uncontrolled bureaucracy could threaten individual freedom, leaving people trapped in an iron cage of impersonal, irrational, and inflexible rules. The fundamental difference is that in autocratic leadership, the emphasis is on the leader, who is in charge of all major decisions. This may lead to conflicts, poor employee relations, inefficiency and unhappy customers. Although a bureaucracy is often viewed as a large mass of rules and regulations, it is also a place where responsibility is mandatory. 1. Max Weber expanded on Taylor 's theories, his methods involved getting the best equipment and people, and then . The goal of the worker is to achieve the top position possible within that specialization to create the best possible personal outcome. Expenditures dictate actions. In the 1970s and 1980s, the heyday of celebrity CEOs, were corporate stars such as Chrysler's Lee Iacocca and General Motor's Jack Welch, who not only made the news and who apparently added value to their corporations, but who also wrote books explaining their powers as strong leaders. 4. Classical management theory disadvantages - Often overlooks the importance and nuance of human relations by favouring control over human behaviour Required fields are marked *. From the C-suite, communication flows further downward in successive management levels, until it reaches the lowest levels of the hierarchy; often, these are the hourly workers that have limited opportunities to inform, criticize or feed information upward. Although this does place a limit on how creative influences can sometimes be applied, it does allow for an organization to have confidence in the results a bureaucratic leader may promise. Bureaucracy is a system of administration. Because a bureaucracy is so dependent on rules and regulations, changes to a business or international governmental landscape can be difficult. 5. Since the rise and fall of the Roman Empire, sociologists, humorists, and politicians have developed theories (both supportive and critical) of bureaucracy and bureaucrats. Here are a few examples of leaders with purely bureaucratic leadership styles. The initiative and creativity of employees are discouraged with rigid compliance of rules and regulations. 2. There is a long chain of command under the bureaucratic form, which makes it challenging to predict or determine . He was a British prime minister credited with guiding the country to victory in World War II. According to Weber, bureaucracy is a particular type of administrative structure developed through rational legal authority. 6. Such leaders give influence upon the compliance and hence they ensure that their team members follow the established guidelines precisely. A bureaucracy creates numerous rules and laws that must be followed to the benefit of all. Scientific Management is an "approach to management based on the application of work study techniques to the design and organisation of work in order to identify the one best way" (Fellenz &Martin, 2010). March 28, 2022 By Hitesh Bhasin Filed Under: Leadership. The primary disadvantage of this theory is that it doesn't directly state how to act in order to achieve specific results. If no incentive exists, you have a worker twiddling their thumbs for 6 hours and nothing that management can do about it. It discourages favoritism. The output of this study contributes to a complex discussion about the effect of bureaucratic management on workplace well . This leadership style may be beneficial in highly regulated industries, and it can also be an effective management style in businesses that dont demand much originality or invention from staff. Separation of jobs and relationships. Officialism When systems show a lack of flexibility and initiative. A bureaucracy centralizes power. It is easy to fit into a bureaucracy. A bureaucracy creates massive wage gaps. Rules and regulations allow for multiple workers to function in the same way, which increases productivity further. An example of such an iron triangle would be the American Association for Retired People (AARP), the House Subcommittee on Aging, and the Social Security Administration all working together to set government policy on Social Security. Pros of the Servant Leadership Style: High employee engagement and motivation. If not, then youre not doing your job and are subject to possible disciplinary action. That means appearance takes a priority over reality. But the point is that this leadership style has been used in other parts of business and organizations worldwide, including religion, business, and politics. Accountability, predictability, structure and job security are just a few to mention. The only way that the chain-of-command functions well is if everyone involved is invested into the structure. What Is Administrative Law? It creates a structure where equality is a point of emphasis. The issue with a bureaucratic leadership style is that the focus tends to be on specialization and consolidation. 3. . Red tape When there are high levels of adherence to rules and formalities. The following mentioned are a few limitations or disadvantages of scientific management. Based on this principle, Peters Corollary states that "in time, every post tends to be occupied by an employee who is incompetent to carry out its duties.. Working together, these three groups set most government policies. 791-795. A huge staff must be managed, which necessitates the presence of a fearless leader. What Is Bureaucracy, and Is It Good or Bad? The distinction between bureaucratic and autocratic leadership, which share some features, can be a source of misunderstanding. It may refer to a government or corporate structure. In 2019, the most admired corporate structures are flattish (lots of independence at every corporate level) or completely flat, like the Valve Corporation. As more rules are added into the mix, workers are forced to slow down to ensure they are meeting required standards. Lastly, there is less freedom to act within a bureaucratic structure. 6. It always seeks to create best practices. Largely influenced on leaders' experiences. Leaders tend to stay in their positions until another position with a better salary opens up. The bureaucratic structure is an efficient, rule-based leadership framework that has proven to be a smooth way to govern and to organize societies. Two more companies that have thrived with a strong bureaucratic structure are Microsoft, first led by the company's founder, Bill Gates, and then by the successors he's selected; and, Berkshire Hathaway, founded in the 19th century and floundering in the 1960's until taken over by Warren Buffett, who changed everything, using his investment principles to lead the company from a valuation of $11.50 per share in 1965 to its 2018 value of $291,000 per share. It is a leadership style which bases decisions on cost structures. Bureaucratic leaders thrive in an environment where predictability is present. He argued that trained incapacity resulting from over conformity eventually causes many bureaucracies to become dysfunctional. Division of Work: There is division of work on basis of specialization of jobs in bureaucratic organizations. Then the rules and regulations are set so that the people within that structure can move toward meeting that goal in a specific way. There is a desired outcome to achieve. Control. It creates rigid policies and laws that must be followed to safeguard the wellbeing of a business or the safety of a society. The organisation of projects is considered using insights from general management theory. They are given fixed benefits. Secondly, the organization and its members are governed . There are reasons why work is completed in one specific way for many organizations. Proposed laws would have to pass through different processes and departments before being enacted. It centralizes duties and roles within a team. Bureaucratic theory advantages - Emphasises the importance of certain rules within an organisation, i.e., best practices . It creates a stronger level of job security. 10. The structure of a bureaucracy creates more job security than other forms of oversight. Robert Longley is a U.S. government and history expert with over 30 years of experience in municipal government and urban planning. Most workers will not work beyond their quota either, which places another limit on the productivity levels that are available. From the early years Weber proved to be very intelligent. Order custom essay Administrative Management Theory Advantages and Disadvantages with free plagiarism report. Bureaucracy is a system for controlling or managing a country, company, or organization that is operated by a large number of officials employed to follow rules carefully. In a bureaucracy that is run successfully, the impersonal nature of the relationships that are formed create unique advantages. Max Weber Bureaucracy Theory: Advantages and Disadvantages. Although there will always be unpredictability in any system because humans make mistakes, the guidelines that are built into this structure make future results more predictable than if the structures did not exist. In governmental and corporate structures, the establishment of best practices can save time and money when they are followed to the letter. 1. How a specific business will fair with a given organizational structure, depends on circumstance, research, leadership, esprit, innovation and, like so many things in life, luck. First, the paper will discuss the bureaucracy theory as proposed by Max Weber. He or she will make sure that all the procedures have been followed before sending it to the next level of authority. If your work is supervised by another person, that is a bureaucratic structure. Churchill is also a thorough and detail-oriented leader, which are characteristics shared by Churchill. This may include additional forms to fill out, new filing regulations, or new evaluations that must be conducted. Smaller groups also have the opportunity to make micro-decisions as necessary. "The Study of Administration." Max Weber, a sociologist who also came up with transactional leadership, devised the philosophy underlying bureaucratic leadership. Creativity thrives within a bureaucracy. Every leadership style has some level of innovation which must be built into the best practices over time. This system is defined by four specific features. Best practices are created. They create rules which are intended to help their teams create consistent results. Conformity to rules and roles in the structural framework bring about order to cope with complexity. It represents the merger of scientific management, bureaucratic theory, and administrative theory. Because of the tight structure of this leadership style, a considerable number of high-profile individuals have achieved enormous success. Max Weber 1864-1920 , is the father of the bureaucratic management theory. It employs standard rules and procedures for organizing business and is . Weber believed in the "ideal type" of the bureaucracy of an organization. By encouraging specialization, a bureaucracy naturally promotes problem-solving and cost efficiencies at the same time. 8. "What Is Bureaucracy, and Is It Good or Bad?" Bureaucratic leadership is a type of leadership that requires a strong understanding of the organization and an ability to adapt to keep it running smoothly. In addition, when left with no latitude to deviate from the rules, frustrated employees can become defensive and indifferent to the needs of the people who deal with them. The Scientific Management Theory was best suited to large companies at the turn of the century, not small modern offices. That perspective can cause changes in budget line expenditures, project availability, and even which demographics are targeted for consumers. It's generally less challenging for an individual to fit into a bureaucratic culture as compared to a flatter organizational structure. ThoughtCo. The Bureaucratic Management Theory is the structure and administrative process of an organization which is a formal management system. Although every worker, from the top of the chain of command to the bottom, is considered an equal member of the team, equal pay does not occur. People who work within this structure often have a high level of education, more self-direction and are more open-minded. There are two basic themes that are the organisational structure (the way organisations are shaped and formed . The Economist, November 19, 1955. Longley, Robert. By 2015, the founders had changed the corporate structure entirely, to a single containing corporate envelope, Alphabet, which functions somewhat along the lines of a holding company in other words, a hierarchical structure containing several dozen enterprises, ranging from self-driving transportation, mass digital storage and renewable energy, to artificial intelligence and advertising. Often, the real players in government are the agency bureaucrats, the people behind the scenes. The dynamics of these relationships are set aside for the good of the team and the company.

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