After reading you will understand the basics of bureaucratic management and you can use this as a powerful management tool. Bureaucratic theory At the end of the 19th century, it was German sociologist and author of The Protestant Ethic and the Spirit of CapitalismMax Weber who was the first to use and describe the term bureaucracy. This is also known as the bureaucratic theory of management, bureaucratic management theory or the Max Weber theory. He believed bureaucracy was the most efficient way to set up an organisation, administration and organizations.
Flat Organizational Structure Bureaucratic organizational structures are "top-down" hierarchies, in which communication flows downward from the leader; in corporate structures, its leader is the CEO.
He shares information and orders with other C-suite executives, such as the corporate Chief Operating Officer. 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.
Inthis organizational structure is broadly criticized. Perceived Disadvantages of Bureaucratic Structures In the s and s, the heyday of celebrity CEOs, Bureaucratic management 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.
Inthat's all changed.
Management publications now note that "Bureaucracy Bureaucratic management simply unable to cope in this new, rapidly changing world Every single organization I speak with, work with, and research, is looking to flatten out their structure.
Nobody ever tells me they want more bureaucracy and more layers. Inthe most admired corporate structures are flattish lots of independence at every corporate level or completely flat, like the Valve Corporation. On the Other Hand Bureaucratic organizational structures, although unfashionable, still have certain advantages.
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. 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.
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.
No, that's not a misprint. Although dismissed as being unable to change quickly in response to the accelerated pace of a digital workplace, some bureaucratic organizations evolve rapidly.
Google, founded in 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, so that inthe 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.
What Is the Takeaway? It may be, as is often claimed by business management writers, that inflatter is better - for some companies.
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. 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.Weber's theory of bureaucratic management also has two essential elements.
First, it entails structuring an organization into a hierarchy. First, it entails structuring an organization into a hierarchy. Max Weber and Bureaucratic Theory. Weber was born in Germany in and grew up during the time when industrialization was transforming .
Max Weber embellished the scientific management theory with his bureaucratic management theory which is mainly focused on dividing organizations into hierarchies, establishing strong lines . Bureaucratic organizational structures are "top-down" hierarchies, in which communication flows downward from the leader; in corporate structures, its leader is the CEO.
He shares information and. "Precision, speed, unambiguity, knowledge of files, continuity, discretion, unity, strict subordination, reduction of friction and of material, and personal costs – these are raised to the optimum point in the strictly bureaucratic administration," said Weber.
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 .