Importance of Bureaucratic Management theory

Bureaucratic management may be described as a formal system of organization based on clearly defined hierarchal levels and roles in order to maintain efficiency and effectiveness. As per the well knowledgeable, Max Weber's bureaucratic management theories shaped bureaucracies. Before we go into the topic "What is Bureaucratic Management", let us first look into that is Bureaucracy.

What is Bureaucracy?

The term bureaucracy refers to both non elected governing officials and to an administrative policy making group. In the past, a bureaucracy was a government administration managed by departments staffed with non-elected officials. Now, Bureaucracy is the administrative system governing large institutions, whether publicly owned or privately owned. There are two key dilemmas in bureaucracy. The first revolves around whether bureaucrats should be autonomous or directly accountable to their political masters. The second revolves around bureaucrat's behaviour should strictly follow the letter of law or whether they have leeway to determine appropriate solutions for varied. circumstances. The German Sociologist Max Weber (1864 - 1920) argued that bureaucracy constitutes the most efficient and rational way in which human activity can be organised and that systematic process and organised hierarchies are necessary to maintain order, to maximize efficiency, and to eliminate favouritism. On the other hand weber also say unfettered bureaucracy as a threat to individual freedom, with the potential of trapping individuals in an impersonal "iron cage" of rule-based rational control.

What is Bureaucratic Management Theory?

Weber's theory of bureaucratic management has two essential elements. First, it entails structuring an organisation into a hierarchy and Second, the organisation and its members are governed by clearly defined rational-legal decision making rules. Each element helps an organisation to achieve its goals. As per weber, the theory maintains a strong influence on organisational structure today. The primary difference is that today's organisations are generally less impersonal. Also. performance and productivity are judged based upon. rule-based activity with promotion deriving from ones merits.

Weber visited the United States in 1904 to study the U.S. economy. It was here that he observed the spirit of capitalism. He noted that capitalism in the United States encouraged competition and innovation. He also realized that businesses were run by professional managers and that they were linked through economic relationships. He contrasted this with capitalistic practices in Germany where a small group of powerful people controlled the economy. In Germany, tradition dictated behaviors. People were given positions of authority based on their social standing and connections, and businesses were linked by family and social relationships. Weber was concerned that authority was not a function of experience and ability, but won by social status. Because of this, managers were not loyal to the organization. Organizational resources were used for the benefit of owners and managers rather than to meet organizational goals. Weber was convinced that organizations based on rational authority, where authority was given to the most competent and qualified people, would be more efficient than those based on who you knew. Weber called this type of rational organization a bureaucracy.

Weber identified six characteristics or rules of a bureaucracy. They are,

• Hierarchical Management Structure: Each level controls the levels below and is controlled by the level above. Authority and responsibilities are clearly defined for each position.
• Division of Labour: Tasks are clearly defined and employees become skilled by specializing in doing one thing. There is clear definition of authority and responsibility.
• Formal Selection Process: Employee selection and promotion are based on experience, competence, and technical qualification demonstrated by examinations, education, or training. There is no nepotism.
• Career Orientation: Management is separate from ownership, and managers are career employees. Protection from arbitrary dismissal is guaranteed.
• Formal Rules and Regulations: Rules and regulations are documented to ensure reliable and predictable behavior. Managers must depend on formal organizational rules in employee relations.
• Impersonality: Rules are applied uniformly to everyone. There is no preferential treatment or favouritism.

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 have a negative result. For example, division of labor leads to specialized and highly skilled workers, but it also can lead to tedium and boredom. Formal rules and regulations lead to uniformity and predictability, but they also can lead to excessive procedures and “red tape.” In spite of its potential problems, some form of bureaucracy is the dominant form of most large organizations today. The “pyramid” organizational structure, with responsibility split into divisions, departments, and teams, is based on principles of bureaucracy. It is used by nearly all large corporations.