Bureaucratic Management

Theory

Ibrahim Ali
Objectives
The Theory of Bureaucracy
Developed by Max Weber (1864-1920), a German professor of sociology.

Principle 1: Authority

In a bureaucracy, a managers formal authority derives from the position he or she holds in

the

organization.

Authority - the power to hold people accountable for their actions and to make decisions in

reference to the use of organizational resources. (Textbook / Contemporary Management - 6th

Edition)

In todays business models, this type of theory is not very common. Nowadays, we see more of an informal authority approach in

which there is personal expertise, technical knowledge, moral worth, and the ability to lead and to generate commitment from

subordinates, without the use of this absolute power from one individual.
The Theory of Bureaucracy
Developed by Max Weber (1864-1920), a German professor of sociology.

Principle 2:

In a bureaucracy, people should occupy positions because of their performance, not because of

their social standing.

Some organizations and industries are still affected by social networks in which personal contacts

and relations, not job-related skills, influence hiring and promotional decisions. (Textbook /

Contemporary Management - 6th Edition)

The old ways, of not what you know, but who you know, are still around in todays society, but it

can only get you so far. In todays business world, what you know and educational knowledge, play a

very important part in moving up the corporate latter and being able to maintain a managerial

position requires the utilization of staying current on up to date techniques and information.
The Theory of Bureaucracy
Developed by Max Weber (1864-1920), a German professor of sociology.

Principle 3:

The extent of each positions formal authority and task responsibilities, and its

relationship to other positions in the organization should be clearly specified.

When the task and authority associated with various positions in the organization are

clearly specified, managers and workers know what is expected of them and what to

expect from each other. (Textbook / Contemporary Management - 6th Edition)

Most organizations should and are clearly defining task and position responsibilities. Job

descriptions should include all facets of an employee held position. Clarification of ones

job expectations is essential for all five business functions in order to manage and

maintain a high level, and measurable level of success for all organizations.
The Theory of Bureaucracy
Developed by Max Weber (1864-1920), a German professor of sociology.

Principle 4:

Authority can be exercised effectively in an organization when positions are arranged

hierarchically, so employees know whom to report to and who reports to them.

Managers must create an organizational hierarchy of authority that makes it clear who

reports to whom and to whom managers and workers should go if conflicts or problems arise.

(Textbook / Contemporary Management - 6th Edition)

Todays business models utilize the initiative factor in which employees are given the ability

to act on their own, without direction from a superior. This empowerment of employees

relieves the stress of constant supervision and allows supervisors and managers to

concentrate more on other administrative duties. The balance between a vertical and

horizontal organizational structure is more widely used in todays business models.

The Theory of Bureaucracy
Developed by Max Weber (1864-1920), a German professor of sociology.

Principle 5:

Managers must create a well defined system of rules, standard operating procedures, and norms

so that they can effectively control behavior within an organization.

Standard Operating Procedures (SOPs) are specific sets of written instructions about how to

perform a certain aspect of a task. (Textbook / Contemporary Management - 6th Edition)

Most companies have SOPs and require employees to learn and follow them. We have seen how in

addition to following rules and regulations, many organizations have allowed for creativity and

innovation to supersede the common way of conducting business where it was once said, rules are

rules and they could never be broken. Guidelines are needed and common sense is always

important, but have an open line of communication to new ideas and thoughts is essential in

todays business society.

Conclusion

All in all, administrative

management theory such as;
bureaucracy is a formal
organizational system that is
applied in todays business
industry throughout the world.
References

Jones, G.R., George, J.M (2009). The Evolution of

Management Thought. Contemorary Management (pp
38-71). New York, NY: McGraw-Hill/Irwin.