Bureaucracy refers to rule by offices or desks and involves a hierarchy of authority and division of labor. The document discusses the merits and limitations of bureaucracy, including that it allows for centralized authority and specialized hiring but can be time-consuming and rule-based, potentially leading to inefficiency. Charts are presented showing details of the Indian railway budget and operating ratio from 2013-2014 to 2015-2016. The different levels of organization in a bureaucracy and how it impacts those levels are mentioned. Key features of bureaucracy like its permanent nature, division of work, and non-partisan character are listed, along with its functions such as implementing laws, providing administration, regulating activities, and advising and record keeping.