A BRIEF STUDY ON BUREAUCRATIC

MANAGEMENT
Submitted to Dr. Soma Sur on 16.08.19
Subject Code: MBR1010T
MBA Section 2
Semester 1
Batch 2019-2021

Submitted by:
Group members

Name Roll number

Preksha Lunia 66

Subhasree Karmakar 67

Smita Chatterjee 68

Sayeed Rahmatullah 69

Souvik Saha 70

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 Bureaucratic Management Theory
Max Weber, a renowned German sociologist, was the first person to use the term
“bureaucracy” towards the end of the 19th century. Max did not only use the word;
he also believed that the bureaucratic management system is the most effective
system to set up and run an organization. Hence, the bureaucratic management
system where formulated to help achieve the goal of an organization and run the
business efficiently. In this post, we shall discuss Weber’s bureaucratic
management theory in details for better understanding of the concept.

Definition
“Bureaucracy is an organisational
structure that is characterised by many
rules, standardised processes,
procedures and requirements, number
of desks, meticulous division of labour and responsibility, clear hierarchies and
professional, almost impersonal interactions between employee.”

According to the bureaucratic theory of Max Weber, such a structure was

indispensable in large organizations in structurally performing all tasks by a great
number of employees. In addition, in a bureaucratic organisation, selection and
promotion only occur on the basis of technical qualifications.

There are three types of power which can be found in organizations; traditional
power, charismatic power and legal power. He refers in his bureaucratic theory
to the latter as a bureaucracy. All aspects of a democracy are organised on the
basis of rules and laws, making the principle of established jurisdiction prevail.

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The following three elements support bureaucratic management:

1. All regular activities within a bureaucracy can be regarded as official

duties;
2. Management has the authority to impose rules;
3. Rules can easily be respected on the basis of established method.

Bureaucratic organization.

According to the bureaucratic theory of Max Weber, bureaucracy is the basis for
the systematic formation of any organisation and is designed to ensure efficiency
and economic effectiveness. It is an ideal model for management and its
administration to bring an organisation’s power structure into focus. With these
observations, he lays down the basic principles of bureaucracy and emphasises
the division of labour, hierarchy, rules and impersonal relationship.

Development of the concept

Weber was born in Germany in 1864 and grew up during the time when
industrialization was transforming government, business, and society. Weber was
interested in industrial capitalism, an economic system where industry is
privately controlled and operated for profit. Weber wanted to know why
industrial capitalism was successful in some countries and not in others. He
believed that large-scale organizations such as factories and government
departments were a characteristic of capitalist economies.

Weber visited the United States in 1904 to study the U.S. economy. It was here
that he observed the spirit of capitalism. He noted that capitalism in the United
States encouraged competition and innovation. He also realized that businesses
were run by professional managers and that they were linked through economic
relationships. He contrasted this with capitalistic practices in Germany where a

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small group of powerful people controlled the economy. In Germany, tradition
dictated behaviours. People were given positions of authority based on their
social standing and connections, and businesses were linked by family and social
relationships.

Weber was concerned that authority was not a function of experience and ability,
but won by social status. Because of this, managers were not loyal to the
organization. Organizational resources were used for the benefit of owners and
managers rather than to meet organizational goals. Weber was convinced that
organizations based on rational authority, where authority was given to the most
competent and qualified people, would be more efficient than those based on who
you knew. Weber called this type of rational organization a bureaucracy.

Max Weber’s bureaucratic management principles

Weber identified six characteristics or rules of a bureaucracy. Below is the
detailed explanation of the six bureaucratic management principles.

1. Task specialisation
Tasks are divided into simple, routine categories on the basis of competencies
and functional specialisations. Every employee is responsible for what he/she
does best and knows exactly what is expected of him/her. By dividing work on
the basis of specialisation, the organisation directly benefits. Each department has
specific powers. As a result, there is a delineation of tasks and managers can
approach their employees more easily when they do not stick to their tasks. Every
employee knows exactly what is expected of him/ her and what his/ her powers
are within the organisation. Every employee has a specific place within the
organisation and is expected to solely focus on his/ her area of expertise. Going
beyond your responsibilities and taking on tasks of colleagues is not permitted
within a bureaucracy.

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2. Hierarchical of authority
Managers are organised into hierarchical layers, where each layer of management
is responsible for its staff and overall performance. In bureaucratic organizational
structures, there are many hierarchical positions. This is essentially the trademark
and foundation of a bureaucracy. The hierarchy of authority is a system in which
different positions are related in order of precedence and in which the highest
rung on the ladder has the greatest power. The bottom layers of bureaucratic
organizational structures are always subject to supervision and control of higher
layers. This hierarchy reflects lines of bureaucratic communication and the degree
of delegation and clearly lays out how powers and responsibilities are divided.

3. Formal selection
All employees are selected on the basis of technical skills and competences,
which have been acquired through training, education and experience. One of the
basic principles is that employees are paid for their services and that level of their
salary is dependent on their position. Their contract terms are determined by
organisational rules and requirements and the employee has no ownership interest
in the company.

4.Rules and requirements

Formal rules and requirements are required to ensure uniformity, so that
employees know exactly what is expected of them. In this sense, the rules and
requirements can be considered predictable. All administrative processes are
defined in the official rules. By enforcing strict rules, the organisation can more
easily achieve uniformity and all employee efforts can be better coordinated. The
rules and requirements are more or less stable and always formalised in so-called

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official reports. Should new rules and requirements be introduced, then senior
management or directors are responsible for this.

5. Impersonal
Regulations and clear requirements create distant and impersonal relationships
between employees, with the additional advantage of preventing nepotism or
involvement from outsiders or politics. These impersonal relationships are a
prominent feature of bureaucracies. Interpersonal relationships are solely
characterised by a system of public law and rules and requirements. Official
views are free from any personal involvement, emotions and feelings. Decisions
are solely made on the basis of rational factors, rather than personal factors.

6. Career orientation
Employees of a bureaucratic organisation are selected on the basis of their
expertise. This helps in the deployment of the right people in the right positions
and thereby optimally utilising human capital. In a bureaucracy, it is possible to
build a career on the basis of experience and expertise. As a result, it offers
lifetime employment. The right division of labour within a bureaucratic
organisation also allows employees to specialise themselves further, so that they
may become experts in their own field and significantly improve their
performance.

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 The principles are summarized in the table that follows:

Characteristic
of the Description
Bureaucracy

Hierarchical Each level controls the levels below and is controlled by

Management the level above. Authority and responsibilities are clearly
Structure defined for each position.

Tasks are clearly defined and employees become skilled

Division of
by specializing in doing one thing. There is clear
Labor
definition of authority and responsibility.

Employee selection and promotion are based on

Formal
experience, competence, and technical qualification
Selection
demonstrated by examinations, education, or training.
Process
There is no nepotism.

Management is separate from ownership, and managers

Career
are career employees. Protection from arbitrary dismissal
Orientation
is guaranteed.

Rules and regulations are documented to ensure reliable

Formal Rules
and predictable behaviour. Managers must depend on
and Regulations
formal organizational rules in employee relations.

Rules are applied uniformly to everyone. There is no

Impersonality
preferential treatment or favouritism.

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Important Features of Bureaucratic Administration

1.There is insistence on following Standard Rules Weber believed

that the authority in an organization should not be governed by the personal
preferences of the employer but it should be governed by the standard rules. In
other words, the institutional cult should replace the personality cult. He said that
this would provide equality in the treatment of subordinates and continuity and
predictability of action. This would also obviate the need for searching ad hoc
solutions to problems.

2. There is a Systematic Division of Work This increases production by

improving efficiency and saving time in changing over from one job to another.

3. Principle of Hierarchy is Followed Each lower officer is under the

control and supervision of a higher one.

4. It is Necessary for the Individual to have Knowledge of and

Training in the Application of Rules because these forms the basis on
which legitimacy is granted to his authority.

5. Administrative Acts, Decisions and Rules are Recorded in

Writing This makes the organisation independent of people besides making
people’s understanding more accurate.

6. There is Rational Personnel Administration People are selected on

the basis of their credentials and merit and are paid according to their position in
the hierarchy. Promotions are made systematically. There is emphasis on winning
people’s loyalty and commitment.

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Advantages and disadvantages of the Bureaucratic Theory

Advantages
 Generally speaking, the term bureaucracy has a negative connotation and
is often linked to government agencies and large organisations.
Nevertheless, the great benefit of a bureaucracy is that large organisations
with many hierarchical layers can become structured and work effectively.
 It is precisely the established rules and procedures that allow for high
efficiency and consistent execution of work by all employees.
 All this makes it easier for management to maintain control and make
adjustments when necessary. Bureaucracy is especially inevitable in
organisations where legislation plays an important role in delivering a
consistent output.

Disadvantages
 Bureaucracy is characterised by a large amount of red tape, paperwork,
many desks, certain office culture and slow bureaucratic communication
due to its many hierarchical layers. This is the system’s biggest
disadvantage of a bureaucratic organization.
 It is also unfortunate that employees remain fairly distanced from each
other and the organisation, making them less loyal.
 Bureaucracy is also extremely dependent on regulatory and policy
compliance. This restricts employees to come up with innovative ideas,
making them feel like just a number instead of an individual. Later research
(the human relations theory) demonstrated that employees appreciate
attention and want to have a voice in decision making.

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Criticism
Because employees of a bureaucratic organization have no opportunity to voice
their opinion or influence decision making, a bureaucracy may demotivate
employees in the long run.

Moreover, over the course of time, employees may start to get annoyed at the
various rules and requirements, with the risk that they may start boycotting and/
or abusing these rules and standing up to the established order. It is therefore very
important that bureaucratic organisations properly inform employees well in
advance about their approach to work and requires them to accept this. Only
employees who agree to this approach are suitable to work within a bureaucratic
organisation.

Conclusion
Weber thought bureaucracy would result in the highest level of efficiency,
rationality, and worker satisfaction. In fact, he felt that bureaucracy was so logical
that it would transform all of society. Unfortunately, Weber did not anticipate that
each of the bureaucratic characteristics could also have a negative result. For
example, division of labor leads to specialized and highly skilled workers, but it
also can lead to tedium and boredom. Formal rules and regulations lead to
uniformity and predictability, but they also can lead to excessive procedures and
“red tape.” In spite of its potential problems, some form of bureaucracy is the
dominant form of most large organizations today. The “pyramid” organizational
structure, with responsibility split into divisions, departments, and teams, is based
on principles of bureaucracy. It is used by nearly all large corporations. Weber’s

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idea that hiring and promotion should be based on qualifications, not social
standing, is built into U.S. labor laws.

Today, the term “bureaucracy” has taken on negative connotations. It is

associated with excessive paperwork, apathy, unresponsiveness, and inflexibility.
This is unfortunate, as Weber’s ideas have spread throughout the industrial world
and transformed the way organizations are run and structured. Your school is
probably structured as a bureaucracy. If you have shopped at a department store,
it is a bureaucracy, and your city government is also a bureaucracy.

References:

1.Tripathi P.C., Reddy P.N. ‘Principles of Management’, Fifth Edition,

Tata McGraw Hill Education Private Limited

2.https://courses.lumenlearning.com/wm-
principlesofmanagement/chapter/reading-bureaucratic-management/

3.iEduNote.com

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