Bureaucracy in Tigbao Primary Multi Purpose Cooperative Inc.

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Bureaucracy refers to the management of large organizations characterized by hierarchy of authority, fixed rules and regulations, impersonal relationships, rigid adherence to procedures, and a highly specialized division of labor. Bureaucracy is often associated with large entities such as government, corporations and non-governmental organizations. This includes businesses, government, education and religion.

Bureaucracy connotes a rational, efficient method of accomplishing organizational goals as this would contribute to coordination and control in an organization. Max Weber, a German sociologist and political economist, gave much importance on rationality wherein efficient administration of formal rules and procedures takes place. This rationality usually occurs in almost all aspects replacing the traditional methods of social organization.

Weber’s study on bureaucracy is based on ideal-type analysis and to develop this, Weber noted and has set ideal-type characteristics of bureaucratic organizations. These ideal characteristics include fixed division of labor, hierarchy of authority, creation of rules and regulations, selection based on qualifications and impersonality on personnel matters. Although not all organization acquire these characteristics, and does not fit exactly ideal type of bureaucracy, these would serve as criteria on an ideal bureaucracy present in the organization.

Tigbao Primary Multi-Purpose Cooperative Inc. (TPMPCI)

Tigbao, Libagon, Southern Leyte

Ideal Characteristics of Bureaucracy

Fixed division of labor. This refers to how the various tasks of a certain organization are divided up and being performed. The Tigbao Primary Multi-Purpose Cooperative Inc. does not possess this characteristic since their business focuses only on merchandising or trading goods and offer loan services to customers. In their trading business, as long as an employee knows the job and has a good educational background, she/he is qualified for the position held. Their work is not that too hard and does not require too much skills and specialization that’s why each employee can work in behalf of the other, if due to some cases such as absent, as long as he/she is very well-oriented. Also, in their loaning service, they hire employees based on his ability to handle the work and being able to know the work. Thus, the cooperative does not necessarily hire specialized experts and division of labor does not take place within the organization.

Hierarchy of authority or chain of command. The hierarchy of authority in an organization is designed to benefit the company and the employees. The company grows with the strength of a competent managerial staff, and employees look to management to provide career development. A hierarchy is also a method of maintaining managerial integrity. When someone becomes a manager, she must prove to be competent, or else she will experience employee turnover. The hierarchy of authority in an organization is important to the sustained success of the company. The principles of office hierarchy and of levels of grade authority is present in the organization wherein their president or high ranking officer control and supervise the lower office or the lower levels in the organization. This clearly shows that the organization follow a chain of command which is very essential to the productivity and efficiency in the sense that lower levels also maintain the right to appeal the decisions made by the higher office. Thus, formal hierarchy would contribute to its centralization of the decisions made.

Explicit Rules and Regulations. Rules and regulations are essential to one organization since it will be an aid in promoting workers efficiency. The Tigbao Primary Multi-Purpose Cooperative Inc. has certain rules employed by the organization to govern performance of workers. One of these is a standard rule in their organization that they should be on-time and...
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