In the late 1800s, Max Weber criticized organizations for running their businesses like a family. Weber believed this informal organization of supervisors and employees inhibited the potential success of a company because power was misplaced. He felt that employees were loyal to their bosses and not to the organization. Max weber envisage an organisation that would function on an impersonal and rational basis and also strict adherence to explicit rules and regulations. According to Max Weber there are three kind of authority which are -
1. Traditional Authority - This type of authority rests on an established belief that leaders have a traditional and legitimate right to exercise authority, where different traditional circumstances enable and legitimize those in command to exercise authority. This traditional authority gives rise to patrimonial systems like e.g. patriarchal and feudalistic systems and societies. These systems are however dependent upon the followers' acceptance of this authority, and that the followers see this type of authority as legitimate.
2. Charismatic Authority - This type of authority rests on the belief in an exceptional sanctity, heroism or exemplary character of an individual, and on the normative patterns or orders revealed and issued by him or her. Charismatic leaders are often seen as legitimate in times of crisis or change when extraordinary leadership is called for, and when this extraordinary leadership is recognized in the specific authorial figure by followers.
3. Rational – Legal Authority - This type of authority rests on the belief in the "legality" of formal rules and hierarchies, and in the right of those elevated in the hierarchy to possess authority and issue commands. This type of authority is often seen as legitimate in bureaucratic systems, which enables impersonal, specific and formal structures of modern companies. People will hence find this type of authority... [continues]
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