advantages and disadvantages of bureaucratic management theory

(2022, December 1). The initiative and creativity of employees are discouraged with rigid compliance of rules and regulations. Once they have reached their personal level of incompetence, the employee will no longer be promoted; instead, he or she will remain in their level of incompetence for the remainder of their career. The best people get put into the best jobs. 8. There is a lot of paperwork and red tape, which is the primary criticizing point of every bureaucratic organization. Most people either work in a bureaucracy or encounter one every day. 1. . Bureaucratic organizational structures are "top-down" hierarchies, in which communication flows downward from the leader; in corporate structures, its leader is the CEO. They must be able to tolerate potentially harmful conditions. In these three types, bureaucratic leadership fell under the first- legal-rational type of legitimate power. "Peter principle." A bureaucracy creates numerous rules and laws that must be followed to the benefit of all. 11 Advantages and Disadvantages of Computer Networking, 18 Major Advantages and Disadvantages of the Payback Period, 20 Advantages and Disadvantages of Leasing a Car, 19 Advantages and Disadvantages of Debt Financing, 24 Key Advantages and Disadvantages of a C Corporation, 16 Biggest Advantages and Disadvantages of Mediation, 18 Advantages and Disadvantages of a Gated Community, 17 Big Advantages and Disadvantages of Focus Groups, 17 Key Advantages and Disadvantages of Corporate Bonds, 19 Major Advantages and Disadvantages of Annuities, 17 Biggest Advantages and Disadvantages of Advertising. Rigid compliance with rules and regulations discourages initiative and creativity. It is based on a structure that needs a proper framework for supporting and channelizing its functions. When individuals at lower levels pursue personal objectives, the overall objectives of the organization may be neglected. The literal meaning of bureaucracy is rule by office or by officials. If it's not used, then expenditures will not be accounted for in the next budget cycle. Because competency is the primary focus of a bureaucracy, there is encouragement on a societal level to pursue specialization within a specific field. This line represents bureaucratic leadership at its core. It also encourages preservation of jobs even when they become redundant. By 2015, the founders had changed the corporate structure entirely, to a single containing corporate envelope, Alphabet, which functions somewhat along the lines of a holding company in other words, a hierarchical structure containing several dozen enterprises, ranging from self-driving transportation, mass digital storage and renewable energy, to artificial intelligence and advertising. Here are the additional advantages and disadvantages of bureaucracy. According to Max Weber's bureaucratic management theory, having a clear line of authority, as well as relevant rules, procedures, and regulations for managing each business operation is essential for effectively managing an organization. Even when all CEO salaries are averaged in the US, the wage is $166,000, while the average US worker made $56,000. . Max Weber's bureaucratic management theory has its advantages and disadvantages. Every superior tries to increase the number of his subordinates as if this number is considered a symbol of power and prestige. Leaders will not usually listen to the advice of their team in this style either, though they might solicit for new ideas from time to time. List of Disadvantages of Bureaucracy. In a bureaucracy that is run successfully, the impersonal nature of the relationships that are formed create unique advantages. Following inflexible rules and regulations takes time. For instance, bureaucratic rules and regulations don't really help much particularly when unexpected situations crop up. Colleges and universities, police departments and government agencies are all bureaucracy examples. Officers in the bureaucratic administration must be strong-minded and bold to preserve the well-structured framework. Interest groups may provide valuable statistics to government agencies, and they are motivated to have their point of view heard. It creates rules and regulations which make it possible for multiple people to complete the same work in the same way. Bureaucracy also pro. Bureaucracy has the rules and regulations, processes, procedures and patterns that are created to maintain efficiency and effectiveness. It can be difficult for bureaucratic leaders to adapt to change. That is because the best practices for a project are based on the fastest, cheapest way to do things without compromising the quality of the final work. 3. 4. What Is Bureaucracy, and Is It Good or Bad? 1. One needs to be a hard worker because they frequently execute repetitious work; they must be enthusiastic. Other advantages of bureaucracy are: Regularity. send our content editing team a message here, 11 Office Closed Due to Inclement Weather Messages, 50 Best Welcome Messages for the New Boss, 50 Most Asked Nursing Interview Questions with Answers, 20 Best Answers to Why Do You Want to Leave Your Current Job, 10 Best Answers to Why Do You Want to Be a Manager, 11 Best Answers to What Does Leadership Mean to You Interview Question, 50 Most Asked Front Desk Interview Questions with Answers, 10 Best Ways to Answer Sell Me This Pen in an Interview, 10 Most Asked Integrity Interview Questions with Answers, 25 Most Asked Confidentiality Interview Questions with Answers, 50 Most Asked Phone Interview Questions with Answers, 10 Best Answers to What Are Your Interests and Hobbies. Enlarged Ed Edition, Free Press, August 1, 1968. The big thinkers of the day conceived it as a way to streamline operations, increase productivity and enhance the bottom line. Structure: A structure of form is created by specifying the duties and responsibilities and reporting relationships within a command hierarchy. Job Design Meaning, Steps, and its Benefits, Factors and Employees Role in Organization Culture, Strategic Management Meaning, Features and Important Concepts, Committee Organizational Structure. This leadership style may be beneficial in highly regulated industries, and it can also be an effective management style in businesses that dont demand much originality or invention from staff. Examine their advantages and disadvantages to both management and workers of any organization. Bureaucratic leaders work within a style which allows for scalability on an almost infinite level. Specialization: A bureaucratic organization provides the advantages of specialization because every member is assigned a specialized task to perform. In todays world, markets can evolve on a daily basis. Summary. One of the reasons why team members become uninspired by a bureaucratic leader is that most systems are based on a series of quotas. 2. This creates a starting line where everyone has the same chance to succeed. Mergers and acquisitions can be completed quickly and easily. 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. List of Disadvantages of Bureaucracy. Workers are permitted to use their creativity with bureaucratic leaders within the context of meeting their quotas. A bureaucracy is an organization, whether publicly or privately owned, made up of several policymaking departments or units. It is a battery for boredom. The result of this is work absenteeism. It creates a structure where equality is a point of emphasis. Quality Laws: In a bureaucratic organization, quality laws, policies and decisions are made. Centralized management resembles a dictatorial form of leadership where employees are only expected to deliver results according to what the top executives assign them. 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. A bureaucracy that is not structured well can be inefficient and cost more in time and financial resources than it will save. This can become an issue if one team member is extremely efficient and another is not. It centralizes duties and roles within a team. Q: What are the advantages and disadvantages of Henry Gantt's theory of management? The leadership talents and traits will flourish when properly employed inside a tightly regulated corporate setting. No, that's not a misprint. 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. The Bureaucratic Management Theory is the structure and administrative process of an organization which is a formal management system. They create rules which are intended to help their teams create consistent results. From the C-suite, communication flows further downward in successive management levels, until it reaches the lowest levels of the hierarchy; often, these are the hourly workers that have limited opportunities to inform, criticize or feed information upward. Bureaucracy in organizations has long been associated with clear hierarchies, a high degree of formality, a rigid division of labor and strict policies that provide consequences to those who disobey. The servant-leader puts people first. Guidelines must be standard but flexible. People who work within this structure often have a high level of education, more self-direction and are more open-minded. Furthermore, a bureaucratic culture is based on impersonal relationships, discouraging favoritism. It completely revolutionizes and improves layout, routing, scheduling, purchasing, stores keeping and accounting. 6. Bureaucratic leadership is based on a clear line of command, stringent regulations, and follower conformity. The leader has good listening skills and a high level of empathy. The structure is inherently laden with rules and more policies and procedures can be added at any time, making workloads and roles more complicated. People who work in bureaucracies are informally known as bureaucrats. 2. The structure can limit productivity because bureaucratic leaders use rules and regulations to create consistency. Thus, it's important to consider the pros and cons of bureaucracy in the real world. As more rules are added into the mix, workers are forced to slow down to ensure they are meeting required standards. Webber's Bureaucratic Model possesses the following characteristics: (1) Administration through well-defined rules. People higher up on the chain-of-command are typically paid more. 2. Mintzberg's Five Types of Organizational Structure, Tracks: The problem with bureaucracy organizations today and the agile organization, Forbes: The Five Types Of Organizational Structures: Part 1, The Hierarchy, Wired: A New Company Called Alphabet Now Owns Google, Reference for Business: Organizational Structure, Transformational Leadership Examples in Business, Differences Between Horizontal & Vertical Organizations. Some additional disadvantages of this theory include: No specific style for different situations. 7. He shares information and orders with other C-suite executives, such as the corporate Chief Operating Officer. Smaller groups also have the opportunity to make micro-decisions as necessary. 6. In this, power comes from the position of the leader instead of the characteristics or ability to lead. Many bureaucracies have structures where workers are paid with fixed salaries. Team members can identify their roles and meet expectations right away. It may also provide the cover to avoid responsibility for failures. It is characterized by a hierarchy of power and applying a set of rules for management and decision-making. It represents the merger of scientific management, bureaucratic theory, and administrative theory. This is how bureaucracy encourages working within an economy of scale. Comment * document.getElementById("comment").setAttribute( "id", "abf2812080afbbb8dbcf9aa11399cf14" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved, Bureaucratic Leadership Definition, Advantages and Disadvantages, 9 Qualities of an Effective Leader with Examples, 28 Characteristics of a Successful Leader, Leadership Vision - Qualities and Building the vision, 11 Important Leadership Challenges which Leaders Face, 30 Leadership Qualities that make Great Leaders, Fiedler's Contingency Model of Leadership - Definition, Advantages and Limitations. On the other hand, Harolds bureaucratic leadership style is obvious in how he organized and oversaw ITT as president. He was a charismatic leader with a well-structured system to guarantee that everyone completed their assignments on time. The vice president of the research and development division is responsible for the department heads. This creates low morale because the goals of the individual become a higher priority than the goals of the bureaucratic structure. Bureaucratic leaders prefer to have team members that have defined roles. They must be dedicated to their profession. Specific roles and duties are dictated by a bureaucracy, allowing people to have defined rules for productivity. If one person leaves then some other occupies that place and the work does not suffer. Money is available for the current cycle only. ThoughtCo. Because of this, Bureaucratic leaders are often doing family-run businesses. 9. However, unlike other leadership styles, such as charismatic leadership, the bureaucratic management system is simple and implemented. Such leaders give influence upon the compliance and hence they ensure that their team members follow the established guidelines precisely. If a worker steps outside of those rules or laws without permission, even if it is the right thing to do, they may find themselves facing consequences, such as job termination or even imprisonment. It employs standard rules and procedures for organizing business and is . The term bureaucracy is often addressed to governmental structures only, but most people either work in a bureaucracy or encounter one every day. It is difficult to maintain high morale within a bureaucracy. This creates a policy where people and departments spend money so they can have it in the following budget. Wilson, Woodrow. Red tape When there are high levels of adherence to rules and formalities. New York Udy SH Jr (1959) Bureaucracy and rationality in Weber's organization theory: an empirical study. The primary disadvantage of this theory is that it doesn't directly state how to act in order to achieve specific results. limitation or Disadvantages of Administrative management. Repetitive patterns can be difficult to maintain if there isnt a vision or purpose to the actions. If enough market evolutions take place before a company or government adapts to it, then it will become irrelevant. Disadvantages of Bureaucracy: The following are the disadvantages of Bureaucracy:1. If a worker abides by the rules and regulations that govern their position, then they are awarded with specific benefits and a steady salary that allows them to live the lifestyle they want. Jacob Morgan, writing in Forbes, gives bureaucratic organization structures a complete brush off: "This type of a model makes sense for linear work where no brain power is required and where the people who work there are treated like expendable cogs.Every single organization I speak with, work with, and research, is looking to flatten out their structure. Both lobbyists and bureaucrats value contact with congressional subcommittees that shape the laws that govern their interests. All of the approximately 2,000 federal government agencies, divisions, departments, and commissions are examples of bureaucracies. "Parkinson's Law." While employees may work hard to earn raises and promotions, there is no guarantee advancement or rewards will be given immediately. I also have a Ph.D. in English and have written more than 4,000 articles for regional and national publications. 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. 2. A huge staff must be managed, which necessitates the presence of a fearless leader. However, in practice, bureaucracies often fail to achieve this ideal. Introduction. Because bureaucratic structures are so familiar to so many people, it is easy for someone to find their role in one, even if they are new. 1. 2. The bureaucratic structure is an efficient, rule-based leadership framework that has proven to be a smooth way to govern and to organize societies. Rules and regulations provide clear instructions for job duties and expectations. Bureaucratic leaders thrive in an environment where predictability is present. Technical Competence: Selection and promotion of employees are based on the technical competence of employees. 3. This may lead to conflicts, poor employee relations, inefficiency and unhappy customers. List of the Disadvantages of Bureaucratic Leadership. It's also undeniable that some highly hierarchical bureaucratic structures that are overseen by strong leaders have enjoyed amazing success in the 21st century, just as other bureaucratic organizations have failed miserably, (Enron Corp.) and in disgrace (The Weinstein Company, LLC.) These are the following: The systems demonstrate a lack of initiative and flexibility, There is a lot of compliance with regulations and procedures, Webers theory of bureaucratic leadership suggests six key reasons behind its importance, let us have a look at them here and now-, The following characteristics are comprised by the bureaucratic ways of leading a team-. This theory states that organization should implement a bureaucratic structure for deriving out the best efficiency. It is a process that fosters safe productivity, but limits the true productive potential of individuals and departments. Churchill was a strong leader who was notoriously tough to persuade. Companies must . Bureaucratic organizational structures, although unfashionable, still have certain advantages. There must be incentives built into the bureaucracy to reward a worker who can complete a task in two hours with the same quality it takes someone to complete the task in the expected eight hours. The following are the principal advantages of scientific management. According to Weber, model bureaucracies have the following characteristics: Weber emphasized the importance of the bureaucracy in getting things done and believed that a well-organized, rational bureaucracy is the secret behind the successful operation of modern societies. Largely influenced on leaders' experiences. Each employee performs his specialized work in a predictable manner. Your email address will not be published. The disadvantages or limitations of bureaucracy are given below: 1. During his time as a leader, Winston Churchill also demonstrated bureaucratic leadership. In particular, high-level bureaucrats can misuse the power of their positions to further their personal interests. He refers in his bureaucratic theory to the latter as a bureaucracy. Not a lot of good is said about bureaucracies and the complaints people have about the organizational model are valid. bureaucratic management and workplace well-being. Bureaucracies tend to demand employees with specialized educational backgrounds and expertise related to the agencies or departments to which they are assigned. When there is familiarity, there is confidence, and that can lead toward higher productivity levels. 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. Required fields are marked *. Business Dictionary, WebFinance Inc., 2019. 2023 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. (4) Decision making on rational and objective . The average wage of a Chief Executive Officer in the United States at a major company in 2015 was $12.4 million. In an ideal bureaucracy, the principles and processes are based on rational, clearly-understood rules, and they are applied in a manner that is never influenced by interpersonal relationships or political alliances. Some of Fayol's principles are still included in management theory and practice, including the following: Scalar chain: An unbroken chain of command extends from the top to the bottom of the organization. Critics argue that these processes slow down the bureaucracy's ability to provide a service to the public while also costing taxpayers money and time. At worst, bureaucratic leaders can create sharp drops in productivity. Bureaucracy was regarded by Weber as the most efficient sort of company on a technical level. This means that friendships dont influence the outcomes that are created. 4. D Katz. Best practices are created. It reduces the opportunity to quickly adapt to changing circumstances. So, it is not only the famous people, the President, the Chief of Staff, the Speaker of the House, or the Senate Majority Leader, who make the real decisions in government. It is based on a structure that needs a proper framework for supporting and channelizing its functions. who was considered the father of the bureaucratic management theory, Karl Marx 1818- 1883 , who was an advocate for communism; John . Ittana.org: 20 Advantages And Disadvantages Of Bureaucracy, Cleverism: Bureaucratic Leadership Guide: Definition, Qualities, Pros and Cons, Examples. The iron triangle, sometimes called a sub-government, consists of interest groups, members of congressional subcommittees, and agency bureaucrats. Creativity thrives within a bureaucracy. Bureaucracy in government emerged during the rise of money-based economies and their inherent need to conduct secure and impersonal legal transactions. 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. If not, then one team member can disrupt the productivity of an entire team. It will be argued in the discussion that the approach is characterized by hierarchical distribution of power and . The goal of the worker is to achieve the top position possible within that specialization to create the best possible personal outcome. Favoritism is no longer a factor in the equation, Roles, duties, and expectations are all evident, A system of processes and rules that are extremely apparent, As everything must go via a chain of command, it is inefficient, It doesnt support a persons personal or professional development, Creativity, invention, and free thought are all stifled, This style of leadership doesnt encourage teamwork or the development of relationships, Because of a well-defined structure, it limits forward movement, Increasing productivity can be a challenge, Basing decisions concerning how their projects and teams look on paper, means it might prioritize appearance over reality. Although their positions are often governed by the rules they create, this also generates a lifestyle they can enjoy. According to a somewhat uncritical paean to flatness in The Huffington Post, Valve Corp. has been "boss free," for more than 20 years, and employees (who vote their own raises) "put their desks on wheels, making it easier to move around the offices for collaboration and meetings." In governmental and corporate structures, the establishment of best practices can save time and money when they are followed to the letter. Rules and regulations can seem burdensome at times, but they are put in place to create best practices. 6. First, it entails structuring an organization into a hierarchy. Here are some of the key advantages and disadvantages of the bureaucratic leadership style to discuss. A: Taylor's scientific management It is also known as the Classical management theory. Katz D, Kahn RL (1978) The social . Volume 1, Guenther Roth (Editor), Claus Wittich (Editor), First Edition, University of California Press, October 2013. He is one of the rare leaders who enjoy following processes to accomplish goals. Defining products, roles, and the logic of . They are given fixed benefits. It is characterized by applying a set of rules for management and decision-making, as well as established official functions within a hierarchy of power. Authority is centralized instead of spread out among employees. How a specific business will fair with a given organizational structure, depends on circumstance, research, leadership, esprit, innovation and, like so many things in life, luck. Classical organisation theory evolved during the first half of this century. Weber saw bureaucracy as a rational way for complex businesses and governments to organize. Parkinson described two factors that cause all bureaucracies to grow as "an official wants to multiply subordinates, not rivals and officials make work for each other. Parkinson also offered the tongue-in-cheek observation that the number of employees in the British Civil Service increases by five to seven percent per year irrespective of any variation in the amount of work (if any) to be done., Named for Canadian educator and self-proclaimed hierarchiologist Laurence J. Peter, the Peter principle states that "in a hierarchy, every employee tends to rise to his level of incompetence.. But the point is that this leadership style has been used in other parts of business and organizations worldwide, including religion, business, and politics. Added time creates additional costs to all who are involved. That allows each person to focus their strengths toward what they do best, including the leader, who helps to ensure that all questions are answered by the correct people. So hip! A bureaucratic structure has both advantages and disadvantages. In this essay, the structural pattern of bureaucratic structure, the channel of communication, advantages and disadvantages of bureaucratic structure and the five factors for. These rules allow managers to supervise production with confidence because each action has been defined. If you meet the quota, then youve done your job. A bureaucracy benefits society by creating structures that help to keep people safe and productive. It always seeks to create best practices. This creates a starting line where everyone has the same chance to succeed. For some, bureaucratic leadership looks like a mess of red tape. Leaders tend to stay in their positions until another position with a better salary opens up. Running of Administration duties: The key responsibility of Bureaucracy is to run the day-to-day administration in accordance with the policies, laws, rules, regulations, and decisions of the government. It reduces the opportunity to quickly adapt to changing circumstances. He also reasoned that bureaucrats are more likely to put their own interests and needs ahead of those that would benefit the organization. A bureaucratic leader follows the structured procedures established by the organization. Classical management theory helps to create better working conditions. This restricts sharing of innovative ideas from employees, thus, demotivating them in the long run. If your work is supervised by another person, that is a bureaucratic structure. A process that was efficient 5 years ago may be inefficient today. Disadvantages of bureaucracy. "The Study of Administration." Here are a few examples of leaders with purely bureaucratic leadership styles. 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. Answer: Criticism of Administrative Management Theory Henri Fayol's management principles and functions are used even today for managing the organisations. Nobody ever tells me they want more bureaucracy and more layers.". Consequently, there is less freedom and individuals who don't follow the rules may face consequences or penalties. All documents have to be maintained in their draft and original forms. The bureaucratic organizational structure may inhibit productivity, diminish innovation and decrease morale.

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