2. Weber’s Theory of Bureaucracy Weber developed his theory of Bureaucracy on its structural basis. According to Weber, an organization has an authority, which is implemented by bureaucrats. The bureaucrats exercise their authority only because they hold public office. They exercise authority with well-defined rules & regulations.
It recognized the importance of division of labor and specialization. A formal set of rules was bound into the hierarchy structure to insure stability and uniformity. Weber also put forth the notion that organizational behavior is a network of human interactions, where all behavior could be understood by looking at cause and effect. Administrative theory (i.e., principles of management) was formalized in the 1930 's by Mooney and Reiley (1931). The emphasis was on establishing a universal set of management principles that could be applied to all
The term bureaucracy refers to a particular type and technique of administrative organization. In the 1930s Max Weber, a German sociologist and political economist; he wanted to find out why people in organizations obeyed those in authority above them. He wrote a validation that described the bureaucratic form as being the ultimate way of organizing government agencies. Weber’s study of business was centered on understanding the need for stability and consistency in achieving competence. Max Weber embellished the scientific management theory with his bureaucratic management theory largely focused on dividing organizations into hierarchies, establishing strong lines of authority and control.
Scientific management motivated on getting the best people and equipment, and scrutinizing each production task. Bureaucratic theory involved establishing a hierarchy to describe the division of labour in a company and recognizing the importance of specialization. Managerial theory worked to establish a set of management principles that applied to all organizations. Classical organization theory work because it described incentive only as a purpose of economic rewards . 2.
His theory was then followed by administrative management theories which looked at the productivity of the organisation as a whole. Henri Fayol, Luther Gulick, and Max Weber were all major contributors to this theory and their concepts were very similar to each other’s focusing on basic management principles with a chain of command from top to bottom, allocation of authority, order, stability and efficiency. Max Webber came up with the concept of bureaucracy, where management leads form the top down and Fayol came up with his fourteen
Max Weber is the father of bureaucratic management theory and according to him, there are some characteristics for the ideal bureaucracy. According to Pendez (n.d.), all bureaucracies share similar characteristics including fixed division of labour and specialization, hierarchy of offices, rules and regulation, technical competence, impersonality and formal and written communications. However, Larsen (2014) said that the six characteristics of bureaucracy are specialization, hierarchy of authority, explicit written rules, impersonality, qualification and separation of work and ownership. Decision-making is the action or process of making decisions. According to Bolfikova, Hrehova and Frenova (2010), decision-making within organisations is characterised by distintive effort to restrain the mechanisms of classical bureaucratic systems and this mean that decision-making will be affected by
Appointments are made according to specialized qualifications rather than ascriptive criteria. This bureaucratic coordination of the actions of large numbers of people has become the dominant structural feature of modern forms of organization. Only through this organizational device has large- scale planning, both for the modern state and the modern economy, become possible. Only through it could heads of state mobilize and centralize resources of political power, which in feudal times, for example, had been dispersed in a variety of centers. Only with its aid could economic resources be mobilized, which lay fallow in pre-modern times.
In bureaucratic management, the term hierarchy refers to layers of management and formal processes which are used to refer on how companies are organized. Scientific management emphasizes process improvements and efficiencies, and it makes managers accountable for improving organizational productivity. In organization that use bureaucratic management structures share some characteristics which includes, a well-defined hierarchy system which entails accurate and detailed documentation and recordkeeping and also well-defined rules and regulations. Each position in a bureaucracy supervises another, hence improving communication, direction and
He was identified the four reason that created the successful organization; which were made the strategic planning, staff enrollment, employee motivation and employee guidance. Meanwhile, bureaucratic means control on the basis of knowledge. According to Weber, bureaucratic is more efficient within organization by the process of control. He focused on bureaucratic theory and highlighted the need for a hierarchical structure of power. It was importance of separation of labor and specialization.