In this lesson, we'll discuss bureaucratic management theory. This theory proposes that an ideally run organization consists of a group of people organized into a hierarchical structure and governed by rational-legal decision-making rules.What Is A Bureaucracy?

Bureaucraciesare all around us. This form of organization, which is comprised of non-elected officials who implement rules, is not only common in the public sector but in the business world as well. Examples of bureaucracies in thepublic sectorinclude the Social Security Administration, Environmental Protection Agency and public universities. Among the oldest bureaucratic structures in the country is the United States military.

In the private sector, most large business firms have a bureaucratic organization. Examples ofprivate sectorfirms with a bureaucratic structure include IBM, GM and the Union Pacific Railroad. Knowing how bureaucratic management works can lead to a better understanding of how government agencies and large business firms operate; it can assist you in interacting with complex organizations, whether it be seeking social security benefits or working for a large corporation.

Max Weber

One of the most important thinkers in modern organizational theory,Max Weber(1864-1920), is the 'father of the bureaucratic management theory.' Weber was a German sociologist and political economist that viewed bureaucracy in a positive light, believing it to be more rational and efficient than its historical predecessors.

Bureaucratic Management Theory

Weber'stheory of bureaucratic managementalso has two essential elements. First, it entails structuring an organization into a hierarchy. Secondly, the organization and its members are governed by clearly defined rational-legal decision-making rules. Each element helps an organization to achieve its goals.

Anorganizational hierarchyis the arrangement of the organization by level of authority in reference to the levels above and below it. For example, a vice-president of marketing is below the company's president, at the same level as the company's vice president of sales, and above the supervisor of the company's social media department. Each level answers to the level above it, with the ultimate leader of the organization at the top.

The easiest way to understand the termrational-legal decision-making rulesis to think of it as a set of explicit and objective policies and procedures that governs how an organization functions. Examples of rational-legal decision-making rules include human resources rules and policies or the regulations governing who is entitled to unemployment insurance.

Examples Of Bureaucratic Management

A well-known bureaucratic organization is the modern U.S. military. For this example, let's look at an Army division. An Army division is broken down into brigades. The brigades are broken down further into battalions. Battalions are divided into companies, and companies are broken down into platoonsBureaucratic System

In the broader sense the term is used to describe any personnel system where the employees are classified in a system of administration composed of a hierarchy of sections, divisions, bureaus, departments and the like. In the narrow sense the term is used to denote a body of public servants organized in a hierarchical system which stands outside the sphere of effective public control. Bureaucracy is a form of administration which can be seen, in large scale organization and bureaucratic personnel system is a pure recruitment pattern adopted by the imperialistic government of the past. Thus it may be used synonymous with autocratic personnel system.

Characteristics In this system the services owe their appointments to the King and are responsible to him. The king recruits them and prescribes their conditions of service. Really the king makes his autocratic rule effective through these services. Being responsible to the king alone the services regard themselves as superior to the people. In this system the public services not only perform executive but also legislative and judicial functions.

Advantages

1. This system produces highest degree of efficiency

2. It can be used well as an instrument of political suppression.

3. It secures unity and concentration of power, which are very essential for effective administration.

Disadvantages

1. It has no place in democracy because there is no popular control. It is highly necessary that the public services should be responsible to the public and responsive to their needs.

2. This system causes a wide gap between the public servants and other classes of the society.

3. It makes public officials not only unresponsive but also turns them hostile to the common man.

4. Concentration of too much power with the officials and the head of administration may tempt them to act in a tyrannical manner.