Diary Entry 1: Organisational Structures

According to Max Weber’s theory of rationalisation, the bureaucratic organisation “is

technically the most efficient form of organization possible” [ CITATION Pug96 \p 7 \l 2057
]. This belief is based on the mechanic form bureaucracy embodies, enabling
predictability and measure of desired outcomes. Depersonalisation results from this
as “control of the actions of the individuals in the organization is assured” through
“the hierarchy of authority and the system of rules” [ CITATION Pug96 \p 8 \l 2057 ] put in
place to achieve those outcomes. The civil service is a good example of a
bureaucratic (rational-legal) establishment. In such organisations, “rules are written
and power relationships clearly specified” [ CITATION Bro061 \p 220 \l 2057 ]. Some may
view this as an advantage. However, it is mainly a disadvantage when compared to
the level of flexibility and freedom the workforce in a project-based (or autonomous)
organisation have.
In project based organisations all staff are delegates. This empowers them to
make more informed decisions appropriate to the situation and not based solely on
following a set of rules. Although the rule setting model of bureaucracy ensures
every factor is treated equally and standards are preserved, it is slow to react to
change. Autonomous organisations differ in this respect as they are agile and able to
respond quickly to changes in their environment. These organisations are prominent
in the technology industry where innovation – a derivative of freedom to create,
imagine and realise - is key to gaining competitive advantage and ultimately,
success.
Autonomy when practised also has its financial benefits for its user as it
“leaves the superior free to do other things” [ CITATION Han93 \p 283 \l 2057 ] . In this
sense it is cheap whereas bureaucracy is not because of its need to control, which
costs money. However, this price is well justified when the fragile nature of
entrustment is observed. Having standardised rules in place reduces the risk of
infringement, abuse and improper use of trust given to subordinates.
As a general rule of thumb it would be sensible for organisations to obtain the
management structure of a bureaucracy, where individual responsibilities and
delegation are based on proven expertise and are controlled to a certain degree by
rules, regulations and procedures to better assure that the organisation achieves its
fundamental objectives.