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The history about Theory of Bureaucracy by Max Webber


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By: Dzulfazli bin Md Zawawi

Published in: Business
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The history about Theory of Bureaucracy by Max Webber

  2. 2. History about Theory of Bureaucracy.
  3. 3. The Theory of Bureaucracy – based on ancient bureaucracy  Term of “bureaucracy” already till the end mid – 1700s was idea of organized and consistent administrative system.  Development of writing (3500 BCE). It was use for document was critical to the administrative of this system.  In ancient china, bureaucracy were position within the “graded civil services” and competitive exam were held to determine who held position.
  4. 4. The Theory of Bureaucracy – based on modern bureaucracy  By mid – 19th century, bureaucratic form of administrative were firmly in place across the industrialized world.  Thinker like John Stuart Mill and Karl Marx began the theories. Max Weber was the first to endorse bureaucracy as a necessary feature of modernity.
  5. 5. What does the theory of bureaucracy was explained it.
  6. 6. The Theory of Bureaucracy – developed by Max Weber (1864 – 1920 ), a German professor of sociology.
  7. 7.  Max Webber was German Sociologist and political economic (1864 – 1920). According to him, bureaucracy is the most efficient form of organization that has a well defined line of authority and clear and regulation which are strictly followed.  Type of characteristics of Bureaucratic in organization: There is high degree of division of labour and specialization. Follow the principle of rationality, objective and consistency. Interpersonal relation based on position and not on personalities. Selection and promotion is based on technical qualification. Only bureaucratic or legal power is given important.
  8. 8.  Criticism of bureaucratic organization:  Too much emphasis on rules and regulation. The rules and regulation are rigid and inflexible.  No importance is given ti informal group play an important role in all business organization.  Bureaucracy involves a lot of paperwork. This result in lot of wastage of time, effort and money  There will be unnecessary delay in decision making due to formation and rules  Too much importance is given to the technical qualification of the employee for promotion and transfer. Dedication and commitment of the employee is not considered.
  9. 9. Advantage and disadvantage of using theory of bureaucracy.
  10. 10. The Theory of Bureaucracy – developed by Max Weber (1864 – 1920 ), a German professor of sociology.  Advantage of theory bureaucracy using in organization: Specification: A bureaucratic organization provided the advantage of specialization because every member is assigned a specialized that to perform. Structure: A structure of form is created by specifying the duties and responsibilities and reporting relationship within a command hierarchy structure sets the pace and framework for the functioning of the organization. Rationality: A measure of objective is ensured in advanced the criteria for decision making in routine situation.
  11. 11.  Top level managers in bureaucratic organization structure give a great deal of control over organization strategy decision, which is deal for business owner with a command and control style. Strategic decision making time can be should in a tall organization structure since less individual are involved in the process.  Standardization and best practice are often highlight in companies with tall organization structure ensuring that work consistently efficiently and effectively.
  12. 12. The Theory of Bureaucracy – developed by Max Weber (1864 – 1920 ), a German professor of sociology.  Disadvantages of theory bureaucracy using in organization: Rigidity: rules and regulation in a bureaucracy are often rigid and inflexible. Rigid compliance with rules and regulation discourage initiative and creativity. It may also provided the cause to avoid responsibility for failure. Goal displacement: rules framed to achieve organization objective at each level become an end to themselves. When individual at lower pursue personal objective the overall may be rejected Impersonality: a bureaucratic organization stresses a mechanical way of doing thing. Organization rules and regulation are given priority or an individual’s needs and emotional
  13. 13. The Theory of Bureaucracy – developed by Max Weber (1864 – 1920 ), a German professor of sociology. Compartmentalization of activities: jobs are divided into categories which restrict people from performing tasks that they are capable of performing. It also encourage preservation of jobs when they becomes redundant. Paperwork: bureaucracy involves excessive paperwork as every decision must be put into writing. All document have to be maintain in their draft and original form. This leads to great wastage of time, stationary and space. Empire building: people in bureaucracy tend to use their position and resources to perpetuate self interest. Every superior as if this number is considered a symbol of power and prestige.
  14. 14. The Theory of Bureaucracy – developed by Max Weber (1864 – 1920 ), a German professor of sociology. Bureaucratic structure can discourage creativity and innovation throughout the organization. No matter how ingenious a business owner is. It is virtually impossible for a single individual to generate the range of strategic ideas possible in a large, interdisciplinary group. Front line employee may receive less satisfaction from their jobs in a rigidly bureaucratic organization increasing employee turnover rates. Organization bound by rigid control can also find themselves less able to adapt to changing condition in the market places, industry or legal environment.
  15. 15. How manager can use these motivation theory to motivate their employee in an organization?
  16. 16. The Theory of Bureaucracy – developed by Max Weber (1864 – 1920 ), a German professor of sociology.  Principle1: In bureaucracy, a manager’s formal authority drives from the position he or she hold in the organization. Authority: the power to hold people accountable for their action and to make decision in references to the use of organization resources.  In today’s business model, this type of theory is not very common. Nowadays we see more of an informal authority approach in which there is personal expertise, technical knowledge, moral worth and from one individual.
  17. 17. The Theory of Bureaucracy – developed by Max Weber (1864 – 1920 ), a German professor of sociology.  Principle2: In bureaucracy, people should occupy position because of their performance not because of their social standing. Some organization and industries are still effected by social network in which personal contact and relation not job related skills influence hiring and promotion decision.  The old way of not what you know are still around in today society but it can only get you so far. In today’s business world what you know and education knowledge play a very important part in moving up the cooperate latter and bring able to maintain a managerial position requires the utilization current on up to date technique and information.
  18. 18. The Theory of Bureaucracy – developed by Max Weber (1864 – 1920 ), a German professor of sociology.  Principle3:  The extent of each position’s formal authority and task responsibility and the relationship to other position in the organization should be clearly specified.  When the task and authority associated with various position in the organization are clearly specific, manager and workers know what is expected of them and what to expect from each other.  Most organization should and are clearly defining task and position responsibility. Job description should include all facts of an employee held position. Clarification of one’s job expectation is essential for all five business function in order to manage and maintain a high level and measurable level of success for all organization.
  19. 19. The Theory of Bureaucracy – developed by Max Weber (1864 – 1920 ), a German professor of sociology.  Principle4:  Authority can be exercised effectively in an organization when position are arranged hierarchically, so employee know whom to report to and who report to them.  Manager must create an organization hierarchy of authority that makes it clear who repeat to whom and to whom manager’s and workers should go if conflicts or problem arise.  Today’s business model utilize the initiative factor in which employee are given the ability to act on their own without direction from a superior. This empowerment of employee relieves the stress of consists supervision and allows supervision and managers to concentred more on other administrative duties. The balance between a vertical and horizontal organization structure is more widely used in today’s business model.
  20. 20. The Theory of Bureaucracy – developed by Max Weber (1864 – 1920 ), a German professor of sociology.  Principle5:  Managers must create a well defined system of rules and standard operation system so that they can effectively control behaviour within an organizational.  Standard Operating Procedure ( SOPs ) are specific set of written instruction about how to perform a certain aspect of a task.  Most companies have SOP and require employee to learn and follow them. We have seen how in addition to following rules and regulation and many organization have allowed for creativity and innovation to the common way of conducting business where it was once said: “rules are rules and they could never be broken”. Guidelines are needed and common sense is always important but have an open line of communication to new ideas and thought is essential in today’s business society.
  21. 21. The End “Bureaucratic administration means fundamentally domination through knowledge” – Max Weber.