The benefits of this approach are explained in detail below: Specialization or Expertise: In bureaucracy management, the work is divided among the employees . For instance, bureaucratic rules and regulations don't really help much particularly when unexpected situations crop up. 8. Actions are dictated by what the rules or laws want. Although the goal of a bureaucratic system is to create consistency, this system can be highly inefficient in some instances. He developed this idea in response to the rising need for a more efficient method for running these organizations, which had previously relied on favoritism. Rigidity - Rules and regulations are very rigid and inflexible under bureaucracy. This creates a starting line where everyone has the same chance to succeed. British humorist Cyril Northcote Parkinson wrote about Parkinsons Law in 1955, based on his years of experience in the British Civil Service. The fundamental difference is that in autocratic leadership, the emphasis is on the leader, who is in charge of all major decisions. This system lets subordinates follow normative rules and adhere to the authority of the leader in a well-defined manner. Since the rise and fall of the Roman Empire, sociologists, humorists, and politicians have developed theories (both supportive and critical) of bureaucracy and bureaucrats. This restricts sharing of innovative ideas from employees, thus, demotivating them in the long run. The classical theory of management dates back to the 19th century. A bureaucratic structure also provides more job security than other organizational structures as long as its employees follow directions. In the 1970s and 1980s, the heyday of celebrity CEOs, were 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. That is 334 times greater than what the average worker salary happened to be in that year. (2022, December 1). Leaders in the bureaucracy should develop systematic methods for dealing with various job situations. But the point is that this leadership style has been used in other parts of business and organizations worldwide, including religion, business, and politics. 1. A bureaucracy creates massive wage gaps. Consequently, there is less freedom and individuals who don't follow the rules may face consequences or penalties. Within a bureaucracy, it is easier to adapt to small changes within a similar landscape, especially when the overall mission is similar. It may also provide the cover to avoid responsibility for failures. It is found that bureaucratic employees do not have a feeling of belongingness towards their organization. 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. 3. Red Tape: Bureaucratic procedures involve inordinate delays and frustration in the performance of tasks. Two more companies that have thrived with a strong bureaucratic structure are Microsoft, first led by the company's founder, Bill Gates, and then by the successors he's selected; and, Berkshire Hathaway, founded in the 19th century and floundering in the 1960's until taken over by Warren Buffett, who changed everything, using his investment principles to lead the company from a valuation of $11.50 per share in 1965 to its 2018 value of $291,000 per share. Classical management theory helps to create better working conditions. Despite being viewed as a large system of rules and regulations, the bureaucratic culture requires responsibility and accountability. It will be argued in the discussion that the approach is characterized by hierarchical distribution of power and . The bureaucratic structure has advantages as long as disadvantages but many business structures are influenced by Max Weber. Bureaucratic leaders also tend to prefer rules, laws, or regulations that are rigid. Bureaucratic leaders create a defined separation for the labor requirements which a team must complete. There is a lot of paperwork and red tape, which is the primary criticizing point of every bureaucratic organization. Research Paper (undergraduate) from the year 2018 in the subject Business economics - Business Management, Corporate Governance, grade: 4.6, The University of Maryland, language: English, abstract: The paper comprises two major sections. bureaucratic management and workplace well-being. A bureaucracy is any organization composed of multiple departments, each with policy- and decision-making authority. Guidelines must be standard but flexible. 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. It does not offer freedom for creativity. There is a long chain of command under the bureaucratic form, which makes it challenging to predict or determine . Typically, if a worker does what he is told, abides by the rules and is accountable to his position, he can expect a steady salary and benefits. 6. Many bureaucracies have structures where workers are paid with fixed salaries. If one person leaves then some other occupies that place and the work does not suffer. The issue with a bureaucratic leadership style is that the focus tends to be on specialization and consolidation. Robert Longley is a U.S. government and history expert with over 30 years of experience in municipal government and urban planning. He shares information and orders with other C-suite executives, such as the corporate Chief Operating Officer. In this essay, the structural pattern of bureaucratic structure, the channel of communication, advantages and disadvantages of bureaucratic structure and the five factors for. Because of this, Bureaucratic leaders are often doing family-run businesses. For instance, in a bureaucratic business, typically, money is available for the current cycle only. 791-795. People who work within this structure often have a high level of education, more self-direction and are more open-minded. This assignment is a discussion on the topic of bureaucracy as described by Max Weber. Get Access. In his 1921 book Economy and Society, Weber argued that a bureaucracy represented the most proficient form of organization, due to its possession of specialized expertise, certainty, continuity, and unity of purpose. Completing repetitive tasks may lead to expertise in a specific specialty, while also creating fewer cross-over opportunities if a labor shortage occurs. Throughout the history of the bureaucratic system and the many definitions of the model, three core elements have remained at the heart of bureaucracy. Team members can identify their roles and meet expectations right away. The primary disadvantage of this theory is that it doesn't directly state how to act in order to achieve specific results. Collin displayed exceptional leadership abilities, earning him the rank of general in the US Army and the position of Secretary of State. Bureaucratic leaders prefer to have team members that have defined roles. Bureaucracy has the rules and regulations, processes, procedures and patterns that are created to maintain efficiency and effectiveness. 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. It's generally less challenging for an individual to fit into a bureaucratic culture as compared to a flatter organizational structure. A: Taylor's scientific management It is also known as the Classical management theory. Lastly, there is less freedom to act within a bureaucratic structure. 3. Political pressure is secondary to the clout that comes with doing a good, consistent job. Efficiencies create the potential for increased productivity from each worker. By clicking Accept All Cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. It also means that the rules are more explicit and so more transparent. Empire Building: People in bureaucracy tend to use their positions and resources to perpetuate self interests. The big thinkers of the day conceived it as a way to streamline operations, increase productivity and enhance the bottom line. This leadership style may be beneficial in highly regulated industries, institutions, and government setup that incorporates a rigid structure functioning through defined rigid rules. Friendships dont influence the outcomes that are created. It provides a foundation for scalability. This creates low morale because the goals of the individual become a higher priority than the goals of the bureaucratic structure. Nobody ever tells me they want more bureaucracy and more layers.". During his time as a leader, Winston Churchill also demonstrated bureaucratic leadership. Thus, everyone is moving in the same direction towards the company's goals by minimizing deviations. Bureaucratic leaders might find it difficult to adapt to change. A bureaucratic leader may be able to recognize these opportunities, but be able to do nothing about them, because the organizational structures in place do not offer the flexibility required to act. Such leaders give influence upon the compliance and hence they ensure that their team members follow the established guidelines precisely. In this, power comes from the position of the leader instead of the characteristics or ability to lead. Merit-based hiring and promotion; no granting of jobs to friends or family unless they are the best qualified. 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. It is easy to fit into a bureaucracy. It assumed the following properties: 1) management activities are carried out continuously; 2) establishment of a certain level of competence and each individual in the system; 3) the need of a special system of training for officials. 3. Classical Management theory has a clear structure for management. Impersonality: A bureaucratic organization stresses a mechanical way of doing things. They must be self-assured and dedicated to their profession. The changing economic scene had important implications for government. Employees in our software firms research and development section are overseen by their team supervisors, who are in turn controlled by their department directors. There are some unique elements which distinguish this leadership style from others that are commonly practiced. The literal meaning of bureaucracy is rule by office or by officials. Bureaucracy in government emerged during the rise of money-based economies and their inherent need to conduct secure and impersonal legal transactions. The only way that the chain-of-command functions well is if everyone involved is invested into the structure. The first characteristic of bureaucratic management theory is job specialization (Armstrong, 1998). There must be incentives built into the bureaucracy to reward a worker that can complete a task in 2 hours with the same quality it takes someone to complete the task in the expected 8 hours. Each team member is responsible for a specific task. The initiative and creativity of employees are discouraged with rigid compliance of rules and regulations. I am a mother of a lovely kid, and an avid fan technology, computing and management related topics.