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

Predictability: The rules, regulations, specialization, structure and training import predictability and thereby ensure stability in the organization. Overly bureaucratic: This is one of the major limitations of Taylor's theory of scientific management. The most visible of those bureaucracies include the Social Security Administration, the Internal Revenue Service, and the Veterans Benefits Administration. http://smallbusiness.chron.com/advantages-disadvantages-bureaucratic-organization-structure-2761.html. Officers in the bureaucratic administration must be strong-minded and bold to preserve the well-structured framework. There are some unique elements which distinguish this leadership style from others that are commonly practiced. There is a lot of paperwork and red tape, which is the primary criticizing point of every bureaucratic organization. (2022, December 1). It is characterized by a hierarchy of power and applying a set of rules for management and decision-making. It is a battery for boredom. Every leadership style has some level of innovation which must be built into the best practices over time. He also reasoned that bureaucrats are more likely to put their own interests and needs ahead of those that would benefit the organization. Bureaucracy by Max Weber Tameka Fraser Sociological Theory Chapter 13: Bureaucracy -Max Weber According to Peter Kivisto Weber was known as the first scholar to assess the impact of modern bureaucratic organizations because Weber viewed this as an integral (essential) aspect of industrial capitalism.Weber believed that bureaucracy is essential if capitalism was to expand productive capacity. Although the goal of a bureaucratic system is to create consistency, this system can be highly inefficient in some instances. 6. Favoritism is discouraged in a bureaucratic structure. Technical Competence: Selection and promotion of employees are based on the technical competence of employees. 1. 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). Definition of Bureaucratic leadership. BUS 4010 Introduction to Public Administration Daniel - Majed - Mazen - Mohammed - Zainah October 19, 2011 2. All of the approximately 2,000 federal government agencies, divisions, departments, and commissions are examples of bureaucracies. Longley, Robert. Added time creates additional costs to all who are involved. Some additional disadvantages of this theory include: No specific style for different situations. If it's not used, then expenditures will not be accounted for in the next budget cycle. Collin gained his experience and understanding of the bureaucratic leadership style from there. There is a long chain of command under the bureaucratic form, which makes it challenging to predict or determine . It can be an effective management style in businesses that dont demand much originality or invention from staff. Although a bureaucracy is often viewed as a large mass of rules and regulations, it is also a place where responsibility is mandatory. 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. The issue of time is the primary disadvantage of a bureaucracy. 4. Authority is centralized instead of spread out among employees. Smaller groups also have the opportunity to make micro-decisions as necessary. The issue with a bureaucratic leadership style is that the focus tends to be on specialization and consolidation. Weber has observed three types of power in organisations: traditional, charismatic and rational-legal or bureaucratic. However, at some point, the employee may be promoted to a position for which they lack the necessary specialized skills and knowledge. Such leaders give influence upon the compliance and hence they ensure that their team members follow the established guidelines precisely. Over time, bureaucracies develop many rules to maintain the structure. The establishment of work study, planning department, training of workers, and standardization requires more money. This clear "chain of command" allows management to closely monitor the organizations performance and deal effectively with problems when they arise. 4. When individuals at lower levels pursue personal objectives, the overall objectives of the organization may be neglected. . Google, founded in 1996 by Larry Page and Sergei Brin when they were students at Stanford, has evolved nearly continuously, from its origins as a formidably successful search engine, to so many different industries. If one person leaves then some other occupies that place and the work does not suffer. Introduction. Q: What are the advantages and disadvantages of Henry Gantt's theory of management? Observers of the modern American government often point to an iron triangle that best demonstrates who really does the work of government. The six notable characteristics of a bureaucracy are-. Retrieved from https://www.thoughtco.com/bureaucracy-definition-examples-pros-cons-4580229. Job security is provided. The changing economic scene had important implications for government. This creates a culture of waste since people and departments will spend money so they can have it in their following year's budget. The bureaucratic processes may benefit your company, especially if one operates in an industry that benefits from its characteristics. Team members become specialists who stay in their position until the bureaucracy requires them to be in a leadership position. There is less freedom to act within a bureaucracy. 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. It is characterized by applying a set of rules for management and decision-making, as well as established official functions within a hierarchy of power. It can be a challenge to increase productivity. The iron triangle, sometimes called a sub-government, consists of interest groups, members of congressional subcommittees, and agency bureaucrats. 4. Thus, everyone is moving in the same direction towards the company's goals by minimizing deviations. Workers may seek to earn merit-based promotions based on their competencies, but there is no guarantee that advancement will occur immediately. Ittana.org: 20 Advantages And Disadvantages Of Bureaucracy, Cleverism: Bureaucratic Leadership Guide: Definition, Qualities, Pros and Cons, Examples. People higher up on the chain-of-command are typically paid more. This essay will focus on the disadvantages and the advantages, including the effective and efficient components, of bureaucracy in public management. It is difficult to maintain high morale within a bureaucracy. In simple words, autocratic leadership is when the leader makes all of the choices and has complete authority over his or her subordinates. The opposite is actually true. 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. While the hierarchical administrative structure of many governments is perhaps the most common example of a bureaucracy, the term can also describe the administrative structure of private-sector businesses or other non-governmental organizations, such as colleges and hospitals. Your email address will not be published. 3. Robert Longley is a U.S. government and history expert with over 30 years of experience in municipal government and urban planning. If enough market evolutions take place before a company or government adapts to it, then it will become irrelevant. Bureaucracy has the rules and regulations, processes, procedures and patterns that are created to maintain efficiency and effectiveness. Organizations with a bureaucratic culture have strict policies for everything, which can slow down their operations and make communication difficult. It promotes higher levels of creativity. advantages and disadvantages to the healthcare system. 8. Bureaucratic rules and regulations aren't really helpful. Weber wrote about Germany during the early 20th century, when developing capitalism was spawning more and more large businesses. He refers in his bureaucratic theory to the latter as a bureaucracy. Weaknesses. Bureaucracy is all around us, from government agencies to offices to schools, so it's important to know how bureaucracies work, what real-world bureaucracies look like, and the pros and cons of bureaucracy. 5. Within a bureaucracy, it is easier to adapt to small changes within a similar landscape, especially when the overall mission is similar. His theory was associated with three different types of legitimate power, and they were-. But the point is that this leadership style has been used in other parts of business and organizations worldwide, including religion, business, and politics. The potential of inefficiency is as high as the potential for efficiency. A process that was efficient 5 years ago may be inefficient today. This means a bureaucracy continues to function only because there are competent employees trying to achieve positions with more power. According to a somewhat uncritical paean to flatness in The Huffington Post, Valve Corp. has been "boss free," for more than 20 years, and employees (who vote their own raises) "put their desks on wheels, making it easier to move around the offices for collaboration and meetings." It does not offer freedom for creativity. The big thinkers of the day conceived it as a way to streamline operations, increase productivity and enhance the bottom line. Each employee performs his specialized work in a predictable manner. https://www.thoughtco.com/bureaucracy-definition-examples-pros-cons-4580229 (accessed March 5, 2023). They create rules which are intended to help their teams create consistent results. The weaknesses to the theory are that it is still based on humans.As humans we are naturally going to make mistakes. Classical organisation theory evolved during the first half of this century. Weber's bureaucracy theory has been widely applied in the era of the 1900s by the business entities, government organizations and political associations. While government bureaucrats do not make the policies and rules they implement, they nevertheless play an integral part in the rule-making process by providing essential data, feedback, and information to the elected lawmakers. It can also be the foundation for numerous inefficiencies, especially when the focus of the leader is to consolidate their own position. However, his Administrative Management Theory is criticised on the following grounds: - 1.Management Oriented Theory:The administrative man. It is a leadership style which offers upward scalability. Guidelines must be standard but flexible. Defining products, roles, and the logic of . By encouraging specialization, a bureaucracy naturally promotes problem-solving and cost efficiencies at the same time. Money is available for the current cycle only. Classical management theory increases the wages of the workers. Leaders tend to stay in their positions until another position with a better salary opens up. Classical theory advocates specialization of labor, centralized leadership and decision making and using financial rewards to motivate workers. If a worker steps outside of those rules or laws without permission, even if it is the right thing to do, they may find themselves facing consequences, such as job termination or even imprisonment. Quality Laws: In a bureaucratic organization, quality laws, policies and decisions are made. Political pressure is secondary to the clout that comes with doing a good, consistent job. 8. 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). If the flaws within this system can be managed well and rule expansions limited to necessary safety needs, it is an effective system that corporations and governments can use every day. Max Weber's bureaucratic management theory has its advantages and disadvantages. If no incentive exists, you have a worker twiddling their thumbs for 6 hours and nothing that management can do about it. Thus, it's important to consider the pros and cons of bureaucracy in the real world. If not, then youre not doing your job and are subject to possible disciplinary action. So bureaucracy literally means "government with a small desk.". At worst, bureaucratic leaders can create sharp drops in productivity. Job performance that is judged by productivity, or how much work an individual gets done. Repetitive patterns can be difficult to maintain if there isnt a vision or purpose to the actions. 6. 10. This creates low morale because the goals of the individual become a higher priority than the goals of the bureaucratic structure. It creates rules and regulations which make it possible for multiple people to complete the same work in the same way. Although there are limitations, disadvantages and improvements in need, Fayol's theory was considered to be the foundation of all later theories in management. Parkinsons Law is the semi-satirical adage that all work expands so as to fill the time available for its completion. Often applied to the expansion of an organizations bureaucracy, the law is based on chemistrys Ideal Gas Law, which states that gas will expand to fill the volume available. The bureaucratic organizational structure may inhibit productivity, diminish innovation and decrease morale. German sociologist Max Weber was the first person to formally study . 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. It creates a stronger level of job security. "The Study of Administration." Harold was the president of the ITT and a bureaucratic leader (International Telephone and Telegraph Corporation). Jan 1978. A bureaucracy encourages praise because of the way a task is fulfilled instead of the quality of the fulfillment. The dynamics of these relationships are set aside for the good of the team and the company. Weber warned that, if not properly controlled, bureaucracy could threaten individual freedom, locking people in a rules-based iron triangle of control. Max Weber, a German social scientist, analyzed the formation and administration of enterprises. With a strong, forward-looking and efficient leader at the helm, like Amazon's Jeff Bezos, they tend to evolve just as rapidly as flatter organizations, but with less drama. The employees do not develop belongingness to the organisation.3. So hip! 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. I hold a degree in MBA from well known management college in India. Bureaucratic leaders work within a style which allows for scalability on an almost infinite level. Inefficiencies are difficult to change. 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 literal meaning of bureaucracy is rule by office or by officials. It has a clear hierarchy that defines who has authority and how much. How effective do you consider the leadership position in a bureaucratic structure? It is built on. The more rigid the bureaucracy, the more honest the people working in that bureaucracy and so the more 'fairly' everybody the system interacts with is treated. Leaders tend to stay in their positions until another position with a better salary opens up. Bureaucratic leadership is a leadership style in which a hierarchy of power establishes management and decision-making norms. On the other hand, bureaucratic leadership places a greater focus on the whole chain of command rather than a single figurehead. The Bureaucratic Management Theory, created by Max Weber in the late 1800s, states that companies should be structured in a hierarchical system with clear rules, roles, and procedures. The advantages are: The advantages are: Specialization: Every employee or member is assigned to perform a . 5. This can become an issue if one team member is extremely efficient and another is not. 2. Qualification for bureaucratic leadership is usually based upon the technical expertise required to efficiently and effectively manage the management tasks. They also tend to focus more on the general good compared to those working for other types of organizations. He or she will make sure that all the procedures have been followed before sending it to the next level of authority. Job Design Meaning, Steps, and its Benefits, Factors and Employees Role in Organization Culture, Strategic Management Meaning, Features and Important Concepts, Committee Organizational Structure. That makes it easy for new leaders to fit right into the company structure. It is a system of management whereby employees are made to follow specific rules and lines of authority created by the superiors. A bureaucratic structure also provides more job security than other organizational structures as long as its employees follow directions. Democracy: Emphasis on qualifications and technical competence make the organization more democratic. Bureaucratic leadership. The following are the principal advantages of scientific management. Although their positions are often governed by the rules they create, this also generates a lifestyle they can enjoy. Even though the bureaucratic structure has received a lot of criticism, it has some advantages. Although the creation of best practices can sometimes cost more than the savings they provide, these rules do create consistent outcomes that allow for predictability in results. I am a retired Registered Investment Advisor with 12 years experience as head of an investment management firm. According to this principle, an employee who is competent at their job will be promoted to a higher-level job that requires different skills and knowledge. Training is also provided to familiarize the employees with the rules and administrative procedures of the organization. There is a desired outcome to achieve. Separation of jobs and relationships. Rules and regulations allow for multiple workers to function in the same way, which increases productivity further. Because bureaucratic structures are so familiar to so many people, it is easy for someone to find their role in one, even if they are new. If they are competent at the new job, they will be promoted again, and so on. On the contrary, Bezos has run his own ship with a maximum of control, even telling potential investors for many years not to expect a profit because the company would be plowing back earnings into their dizzyingly rapid expansion. Summary. In a successful bureaucracy, the impersonal nature of relationships creates some benefits. 5. The goal of the worker is to achieve the top position possible within that specialization to create the best possible personal outcome. Red Tape: Bureaucratic procedures involve inordinate delays and frustration in the performance of tasks. This is because rules and regulations provide clear instructions for job roles and expectations. Growing bureaucracy is taking a toll in the health care industry. Your email address will not be published. 7. Employees in our software firms research and development section are overseen by their team supervisors, who are in turn controlled by their department directors. Bureaucracy in government emerged during the rise of money-based economies and their inherent need to conduct secure and impersonal legal transactions. Red tape When there are high levels of adherence to rules and formalities. A bureaucratic leader follows the structured procedures established by the organization. The problem with this is that additional rules and laws can be added at virtually any time, complicating the workloads that people must endure. Orientation to a career Each employee has the potential to have a long career if they follow the rules and work effectively. Qualities that officers in the Bureaucratic System should Have? Paperwork: Bureaucracy involves excessive paperwork as every decision must be put into writing. Classical management theory helps to create better working conditions. Weber saw bureaucracy as a rational way for complex businesses and governments to organize. 2. It is not always a system that is efficient. Business Dictionary, WebFinance Inc., 2019. In these three types, bureaucratic leadership fell under the first- legal-rational type of legitimate power. This line represents bureaucratic leadership at its core. This may lead to conflicts, poor employee relations, inefficiency and unhappy customers. The impersonal nature of bureaucracy is often criticized, but this "coldness" is by design. Specialization: A bureaucratic organization provides the advantages of specialization because every member is assigned a specialized task to perform. Weber, Max. Advantages and Disadvantages of Bureaucracy. It's also undeniable that some highly hierarchical bureaucratic structures that are overseen by strong leaders have enjoyed amazing success in the 21st century, just as other bureaucratic organizations have failed miserably, (Enron Corp.) and in disgrace (The Weinstein Company, LLC.) It is based on a structure that needs a proper framework for supporting and channelizing its functions. 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. Alternatively, this type of structure can hinder productivity. Interest groups may provide valuable statistics to government agencies, and they are motivated to have their point of view heard. No, that's not a misprint. 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. Before he became a U.S. President, Woodrow Wilson was a professor. What Is Bureaucracy, and Is It Good or Bad? Bureaucratic leadership is based on a clear line of command, stringent regulations, and follower conformity. Bureaucracy 1. Due to their rigid rules and procedures, bureaucracies are often slow to respond to unexpected situations and slow to adapt to changing social conditions. March 28, 2022 By Hitesh Bhasin Filed Under: Leadership. They must be self-assured and dedicated to their profession. In this essay, the structural pattern of bureaucratic structure, the channel of communication, advantages and disadvantages of bureaucratic structure and the five factors for. Opportunities may only be available for a moment or two. Definition and Examples, What Is Civil Service? I am a mother of a lovely kid, and an avid fan technology, computing and management related topics. . Workers are permitted to use their creativity with bureaucratic leaders within the context of meeting their quotas. If it is not used, then the expenditures will not be accounted for in the next budget cycle. Order custom essay Administrative Management Theory Advantages and Disadvantages with free plagiarism report. 4. British humorist Cyril Northcote Parkinson wrote about Parkinsons Law in 1955, based on his years of experience in the British Civil Service. The leader has good listening skills and a high level of empathy. Bureaucracy is an administrative system designed to accomplish large-scale administrative tasks by systematically coordinating the work of many individuals. Another disadvantage to a bureaucratic structure is the way finances are managed, more specifically, the way the budget is allocated. 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. Max Weber expanded on Taylor 's theories, his methods involved getting the best equipment and people, and then . 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. Although it is most often found in the public sector, any company can implement this type of leadership style for their teams and departments. 1. Churchill is also a thorough and detail-oriented leader, which are characteristics shared by Churchill. 3. It centralizes duties and roles within a team. Classical management theory increased the productivity and efficiency of the workers. Redundant and non-essential employees quickly reduce the organizations productivity and efficiency. Officials are guided by the prescribed rules, policies and practices rather than by patronage or other privileged treatment. 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. Collin displayed exceptional leadership abilities, earning him the rank of general in the US Army and the position of Secretary of State. When there is familiarity, there is confidence, and that can lead toward higher productivity levels. Here is a video by Marketing91 on Bureaucratic Leadership. Mergers and acquisitions can be completed quickly and easily. It may refer to a government or corporate structure. The finding of the study indicated that there is no correlation between bureaucratic management and workplace well-being. Let's look at what bureaucratic leadership is and how it works. This sprang from his desire to govern the company in a sensible yet (then) contemporary manner; by doing so, he revolutionized not only GM but the automobile industry as a whole. For example, if the marketing department decides to try out a new strategy, it must first obtain approval from several other departments based on their order of importance within the company. Everything runs up through the chain-of-command so that there is a level of individual equality within the structure because it is a team-based environment, but with no doubt about who happens to be in charge. Bureaucratic organizational structures, although unfashionable, still have certain advantages. The following mentioned are a few limitations or disadvantages of scientific management. He argued that trained incapacity resulting from over conformity eventually causes many bureaucracies to become dysfunctional. Employees are unable to contribute to the decision-making . The paper identifies Max Weber's bureaucratic theory of management (1905), the structure of bureaucracy management, its limitation, and its constraints on today's management practices. He was a charismatic leader with a well-structured system to guarantee that everyone completed their assignments on time. It also encourages preservation of jobs even when they become redundant. 7. He did not see them as necessary evils, but as the best organizational response to a changing society. Compartmentalization of Activities: Jobs ore divided into categories, which restrict people from performing tasks that they are capable of performing.