- The document discusses bureaucracy and techniques companies use to reduce bureaucracy. It provides background on bureaucracy and its benefits, as well as criticisms. - Two companies highlighted as busting bureaucracy are Funding Circle and Zappos. Funding Circle uses technology to streamline lending, while Zappos removed managers and hierarchies to encourage innovation. - Both companies aim to reduce bureaucracy that can stifle creativity and efficiency by employing flexible and decentralized structures.

1. Running head: discussion Board 3 1
discussion Board 3 6Discussion Board 3: Chapter 9 Question
Liberty University - BUSI 610
Discussion Board 3: Chapter 9 QuestionChapter 9: Look
through several recent issues of a business magazine (Fortune,
BusinessWeek, Fast Company, etc.) and find examples of 2
companies that are using approaches to busting bureaucracy.
Explain the techniques that these companies are applying.
Daft (2016) describes bureaucracy as “a logical form of
organizing that lets firms use resources efficiently” (p. 373).
Bureaucracy provides structure and organization to companies.
“Standardization, formalization and routinization allow
organizations to achieve unprecedented levels of efficiency”
(Hamel & Zanini, 2017, p. 6). Born out of the industrial
revolution, bureaucracy is still the standard operating system
for practically every large organization in this day and age
(Hamel & Zanini, 2017).
Bureaucracy was recognized as the most efficient method of
organizing (Daft, 2016). Max Weber identified organizational
characteristics that were found in successful bureaucratic
corporations and developed the Weber’s Dimensions of
Bureaucracy. The six dimensions are: (1) Rules and
procedures, (2) Specialization and division of labor, (3)
Hierarchy of authority, (4) Technically qualified personnel, (5)
Separate position from position holder, and (6) Written
communications and records (Daft, 2016). Rules and
procedures provide standardized rules and step-by-step
procedures to enable efficiency and consistency in meeting
organizational goal and objectives. Specialization and division
of labor allows tasks to be broken into smaller tasks and
performed by separate employees. Hierarchy of authority
provided a chain of command that clarified who supervisory
roles. Technically qualified personnel were hired instead of

2. hiring based on nepotism or favoritism. Separating the position
from the position holder meant that “individuals did not own or
have an inherent right to the job, which promoted efficiency”
(Daft, 2016, p. 356). Written communications and records
enabled historical records and continuity over time.
Corporations that adopted and employed bureaucratic structures,
have experienced numerous benefits. Bureaucracy assists in
effective organization and provides specific roles and tasks for
employees to increase efficiency. Identifying a chain of
command establishes clear lines of communication, authority,
responsibility, and accountability. Bureaucratic practices
appoint officials and employees who are well qualified to
effectively carry out tasks. Bureaucracy ensures potential hires
are treated fairly and undergo the same hiring procedure.
Bureaucracy applies standard operating procedures to ensure
predictable results and streamline procedures. Policies are
detailed and set-forth in bureaucratic organizations.
Although over the past four decades, studies show Weber’s
model of bureaucracy validates positive outcomes and
relationships between specialization, formalization, and
standardization in large bureaucratic corporations, there have
been many critics of bureaucracy (Daft, 2016). With the rapid
change of society, new technologies, and environment,
corporations must change, be flexible, and meet the demands of
the customer. Bureaucracy can hinder progress and change.
Bureaucracy fails to consider social context and human needs;
therefore, it has taken on negative connotations in the business
world today (Daft, 2016). When Weber assessed the
bureaucracy traits of successful organizations, he also noted
that “bureaucracy’s potential to undermine the freedom,
creativity, and distinctive personalities of individuals, and he
likened the effect of life in bureaucracy to existence in a purely
rational “iron cage” that values predictability and control over
all else” (Gunderman & Lynch, 2018, p. 1).
Critics of bureaucracy highlight several disadvantaged of
implementing bureaucratic practices in organizations. Some

3. critics argue that bureaucracy is process driven and not people
driven; therefore, lots of time is lost when each step must be
performed or the need to follow the chain of command must be
adhered to before actions can be carried out. This makes
processes less efficient. According to Mori (2017), because
bureaucratic organizations tend to be rigid, bureaucracy puts
limits individual creativity and innovation, damages
organizational effectiveness, limits management capabilities,
and limits the focus on organizational goals.
After researching several business magazines, two
companies stand out as using techniques to bust bureaucracy.
Funding Circle, a young technology company based in London,
appears at first to be a traditional organization; however, at
closer examination there are many things in place to set this
company apart from bureaucratic organizations. The company
boasts café, a pool table that matches the company’s color
scheme, a pitch-and-putt set and several unique breakout areas
for spontaneous meetings (Hill, 2016).
The sheer nature of Funding Circle’s business is busting
bureaucracy. Utilizing technology, Funding Circle was the first
peer-to-peer online marketplace where investors can directly
lend small amounts to small business owners (Funding Circle,
2018). “By investing in successful and growing businesses
through Funding Circle, investors can diversify their fixed-
income portfolios and access attractive returns. Businesses get
fast, easy access to financing to grow, create jobs, support local
communities and drive the economy forward” (Funding Circle,
2018, para. 2). As a rapidly growing, innovative organization,
the co-founder keeps an eye out for bureaucracy creeping in.
The company believes bureaucracy has the potential to suppress
innovation and hinder initiative.
Another company using techniques to bust bureaucracy is
Zappos. Zappos is an online shoe and clothing retail company
headquartered in Las Vegas, Nevada (zappos.com, 2018). From
the company’s start in 1999, they determined to run their
company differently. The first area where they are busting

4. bureaucracy is the company’s culture and purpose. The
company has ten core values that are the foundation for their
business. The core values are centered on delivering first class
customer service, while encouraging innovation, growth and
creativity, and creating a family atmosphere at the organization.
Zappos has a reputation for conducting business differently.
“The customer-service obsessed company calls its executives
“monkeys,” has staffers ring cowbells to greet guests, and offers
new employees cash to quit as a way to test their loyalty”
(McGregor, 2014, para. 1).
In 2014, the company announced a new approach to the
organizational structure by removing the removing managers,
hierarchy of authority, and duty titles. This move is to prevent
the company from becoming rigid and bureaucratic. They call
this concept the holacracy concept. This concept replaced the
traditional chain of command with a series of overlapping, self-
governing circle to give employees a voice in running of the
company (McGregor, 2014). Conclusion
Bureaucracy has its advantages and disadvantages. Bureaucracy
provides many corporations with structure, organization, and
standardization. However, several organizations such as
Funding Circle and Zappos, disagree with bureaucracy and feel
it stifles innovation, creativity, and efficiency. Funding Circle
and Zappos and adopted many bureaucracy busting techniques,
such as employing technology, removing chain of command,
and creating free-flowing work environments.
References
Daft, R.L. (2016). Organization theory & design (12th ed.)
Boston, MA: Cengage Learning.
Funding Circle. (2018). About. Retrieved from
https://www.fundingcircle.com/us/about/
Gunderman, R. B., & Lynch, J. W. (2018). How bureaucracy
can foster burnout. Journal of the
American College of Radiology: JACR, 1-3. doi:
https://doi.org/10.1016/j.jacr.2018.06.015
Hamel, G. & Zanini, M. (2017). Busting bureaucracy. London

5. Business School
Review, 28(1), 6-9. doi:10.1111/2057-1615.12147
Hill, A. (2016). Business: How to topple bureaucracy. Financial
Times. Retrieved from
https://www.ft.com/content/aa284852-0096-11e6-99cb-
83242733f755
McGregor, J. (2014). Zappos says goodbye to bosses. The
Washington Post. Retrieved from
https://www.washingtonpost.com/news/on-
leadership/wp/2014/01/03/zappos-gets-rid-of-all-
managers/?noredirect=on&utm_term=.d5b8af98b273
Mori, G. T. (2017). Examining hindrance of bureaucracy on
management innovation for
organizations. International Journal of Academic Research in
Business and Social Sciences, 7(4) doi:10.6007/IJARBSS/v7-
i4/2835
Zappos.com. (2018). About. Retrieved from
https://www.zappos.com/about/purpose.
Running head: DB THREE- WEEK 5 1
DB THREE– WEEK 5 6

6. Discussion Board Three
BUSI 610 Organization Theory & Design
Discussion Board Three
Discussion board three will complete a response to Chapter
8 question: Do you believe that technology will eventually
enable high-level managers to do their job with little face-to-
face communication?
Technology
Technology is constantly changing the way the world operates.
Take for example online classes and team support to gain
further education. The approach would not have been possible
not that long ago and yet today it is common to be a non-
traditional student and to be a part of the technology
possibilities through online learning. This simple example of
furthering education differently provides a foundational thought
process that impacts the world of management in regards to
organizational structure and communication. There are many
impacts of technology on an organization. Draft (2016)
elaborates to say “Some specific implications of these advances
for organization design are smaller organizations, decentralized
structures, improved internal and external coordination, and
new network organization structures (p. 331).” Delving into the
implications further what technological advancements offer the
above impacts will be explored.
Similar to the example of online learning the internet
access has allowed the traditional organization structure to
change. What once was common is no longer. The impact on

7. physical locations have changed and therefore necessitates
different management operations. Take for example the manager
of an all-digital company there would never be true traditional
face-to-face communication, although there may be alternatives.
In addition to type of organization there is also a difference
when one is evaluating the information that technology can
support and in turn could lead to less employees, and or more
employees able to complete their tasks from anywhere around
the world. In the interest of manufacturing companies the
efficiencies technology can support can allow for higher outputs
while at the same time eliminating the cost of employees.
“Change occurs rapidly and companies work hard to reduce
staffing. In lieu of a formal change agent, companies often rely
on organizational learning to quickly adopt new technology
(Reardon, 2010, p. 203).” Technology changes the way the
employers work and therefore will also change the approach to
how managers will lead an organization. Regardless of the size
or location that an organization is ran the approach to IT
acceptance is what allows most business to be successful today.
Organizational Change
Structural change is common when implementing
information technology within organizations. The more
information available through technology the less hands-on
within the company the manager may need to be. A more
decentralized approach is common within the organizations that
have adopted the technological advancements and are less of the
hierarchical structure (Draft, 2016, p. 331-332). With the
impact of a decentralized approach the organization must
consider communication approach and information sharing
techniques as the leadership approach in some instances is not
the top down but more leverage from within on decision
making.
The intranet allows companies to have access to the codified
knowledge providing resources to all. The benefit of this is that
the access allows for what once maybe few subject matter
experts had for knowledge is now transferable and accessible

8. anywhere on the company’s own network. The understanding of
knowledge being able to be read and understood is not where all
information is held. “These characteristics of knowledge have
important consequences for the economics and management of
innovation (Grimaldi & Torrisis, 2001, p.1426).” Tactic
knowledge is not as measurable, however, is just as valuable
within the organization structure. “A fundamental difference
between codified and tacit knowledge is that the latter enables
firms to solve specific problems, even when there is no general
understanding of the reasons behind these problems or the
optimal rational methods for their solution (Grimaldi &
Torrisis, 2001, p.1426).” The concept of codified and tactic
knowledge takes time and modification efforts to document that
understanding within any organization. When evaluating if
high-level management have potential to limit face-to-face
contact time one can argue that this information needs structure
and maintenance to hold relevancy. As with technology the
advancement and upkeep are always a given expectancy it may
look different on who manages this knowledge once initially
established within any firm. With the changes of the technology
and knowledge generates new network structural changes.
Social Network Analysis
A common technique to analyze the work flow and best
structural design regarding knowledge in an organization is the
concept of the social network analysis. This tool facilitates a
more quantifiable approach to why employees make decisions in
regards to workplace relationships. The analysis provides data,
facts, and statistics to influence change allowing managers to
have a more scientific approach to change in comparison to a
more instinct evaluation approach. (Draft, 2016). In evaluating
the effectiveness of social network analysis () state: “We view
SNA as a promising approach to understand and overcome
structural challenges to knowledge flow and thus help improve
the way that these networks are designed and constructed as
informational governance strategies for sustainability (Munoz-
Erickson & Cutts, 2016, p. 58).” Understanding and having the

9. knowledge and tools accessible through technological advances
will further allow the foundation of an organizations
sustainability.
Conclusion
In evaluating technology and the impact on high-level
management the approach of leading an organization does not
look the same today as it did thirty years ago. Technology has
provided avenues to knowledge information through the
intranet, structural changes with people working from home,
and use of knowledge leverage in different ways. With these
enhancements the question if high-level management will have
little face-to-face communication is true. The approach to
communication is still necessary but can be done through other
avenues that are not necessarily in person. With the possibility
of limiting face-to-face this author does not necessarily agree
that there should be little face-to-face.
One foundation that is necessary for believers is the importance
of community. Togetherness allows deeper relationships with
one another and deepens our faith and encourages us to do more
for the Kingdom. 1 Corinthians 14:26 “What then, brothers?
When you come together, each one has a hymn, a lesson, a
revelation, a tongue, or an interpretation. Let all things be done
for building up (ESV).” The possibilities and advantages make
it possible to have little interaction. The difficulty may be to
find the balance between how to continue to be a manager that
is relevant and growing in comparison who seems out of reach
because of the technological advancements.
References
Daft, R. L. (2016). Organization theory & design. (12th ed.).
Boston, MA: Cengage Learning.

10. Grimaldi, R. & Torrisis, S. (2001). Codified-tactic and general-
specific knowledge in the division of labour among firms: A
study of the software industry. Research Policy, 30 (9), 1425-
1442
Munoz-Erickson, T.A., & Cutts, B.B. (2016). Structural
dimensions of knowledge-action networks for sustainability.
Current Opinion in Environmental Sustainability, 18, 56-64.
Reardon, R. F. (2010) The impact of learning culture on worker
response to new technology. Journal of Workplace Learning,
Volume 22(4) p. 201-211.
BUSI 610
Discussion Board Part 2
(30 Points)
Criteria
Levels of Achievement
Content
70%
Advanced
Proficient
Developing
Not present
Thread: Content
19 to 21 points
All key components of the (Group) Discussion Board Forum
prompt are answered in the thread with the appropriate level of
citations. A collaborative response has been posted. The thread
has a clear, logical flow. Major points are stated clearly. Major
points are supported by good examples or thoughtful analysis.
At least three peer reviewed references are included. There is
contribution made to the discussion. Each reply expounds on the
thread. The required word count (200–250 words each) for 2
replies is met.

11. 18 points
Most of the components of the Group Discussion Board Forum
prompt are answered in the thread with the appropriate level of
citations. The thread has a logical flow. Major points are stated
reasonably well. Major points are supported by good examples
or thoughtful analysis. At least three peer reviewed references
are included. There is contribution made to the discussion. Each
reply expounds on the thread. The required word count (200–
250 words each) for 2 replies is met.
1 to 17 points
The Group Discussion Board Forum prompt are addressed
minimally without the appropriate level of citations. The thread
lacks flow or content. Major points are unclear or confusing.
Major points are not supported by examples or thoughtful
analysis. Less than three peer reviewed references are included.
Only one reply is present.
0 points
Not present
Structure 30%
Advanced
Proficient
Developing
Not present
Thread: Grammar and Spelling, APA formatting
(30%)
9 points
Spelling and grammar are correct. Sentences are complete,
clear, and concise.
Paragraphs contain appropriately varied sentence structures.
Where applicable, references are cited in current APA format.
Minimum word count of 1,000 -1500 words is met or exceeded
for the main posting. The references are excluded from the word
count. The replies have a minimum of 400 words.
8 points

12. Spelling and grammar has some errors. Sentences are presented
as well. Paragraphs contain some varied sentence structures.
Where applicable, references are cited with some APA
formatting. Minimum word count of 900-1000 words met on the
main posting. The references are excluded from the word count.
The replies have a minimum of 350 words.
1 to 7 points
Spelling and grammar errors distract. Sentences are incomplete
or unclear. Paragraphs are poorly formed. Where applicable,
references are minimally or not cited in current APA format.
Minimum word count of 1- 900 words met for the main posting.
The references are excluded from the word count. The replies
have 1 – 350 words minimum.
0 points
Not present