Bureaucratic organization has a hierarchical or pyramidal structure to help achieve the most rational and efficient operation at the lowest cost. It was then influenced by the thinking of Max Weber. A bureaucratic organization is one with rigid and tight procedures, policies, constraints, and the company reacts with stringent controls as well as a reluctance to adapt or change. Bureaucracies are very organized with a high degree of formality in the way it operates. Organizational charts exist for every department, and everyone understands who is in charge and what his responsibilities are for every situation. Decisions are made through an organized process, and a strict command and control structure is present at all times. “Bureau" is the French word for "office." Bureaucracy means rule by offices. Bureaucracies are hierarchically organized, formal organizations based on a functional division of labour. Almost all very large organizations, both public and private, are bureaucratic. There are 7 characteristics in a bureaucratic model. In a fixed division of labor, the jurisdictional has clear specific set of duties and rights that cannot be changed at the whim of the leader. Division of labour should minimize arbitrary assignments of duties found in more traditional structures. Secondly, Hierarchy of offices should be controlled and supervised by a higher ranking officer. Low rankings should also have the right to appeal decisions made higher in the hierarchy. Thirdly, Bureaucracy is founded on rational-legal authority. The authority is the legality of formal rules and the right of those in the hierarchy to have authority and power of command. Fourth, there are rules that govern the performance and actions with stable, exhaustive and easily follow rules. Fifth, there is separation of personal and official property rights. Sixth, officials are recruited based on qualifications, are appointed not elected, to the office. Compensation of salary is compulsory to those who work under the organization. Seventh, employment in the organization should be seen as a career for officials. Lifelong career for full-time employee would be greatly anticipated. Bureaucratic organizations are impersonal places to work. Individuals are valued by the tasks they perform, and these tasks are specific and detailed. Formal structures exist that limit individual and personal decisions, and policies allow for little deviation from the norm. Regulations are in place for every job title, and little creativity is allowed. Titles for positions are prevalent, and everyone is expected to behave according to company policy. Formality at all times is valued and strict discipline is essential for success.
Many layers of management are typical for a bureaucratic organization. With a pyramid in mind, the leader or president is at the top of the company, and all other departments cascade underneath that leader. Vice presidents report to the president or chief executive officer, and in turn, directors report to the vice presidents. Managers of departments are underneath the directors and these managers typically have numerous supervisors reporting to them. Finally, the workers in a bureaucratic organization report to the supervisors. Structure is important for a bureaucratic company. Power is concentrated in the hands of a few, high-ranking managers. Decisions about company policy, personnel decisions and financial objectives are made by the highest ranking leaders. Procedures are in place that direct most decisions upward to these leaders where all important actions take place. Slowness in decision making is typical in bureaucratic companies, and hands-on management techniques apply at all levels. Micromanagement is common, and workers look to their supervisors for all decisions about their work and assignments. Administrative procedures, rules and policies are found in all bureaucratic organizations. These procedures are so...
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