BUREAUCRACY APPLIED

IN MODERN

MANAGEMENT

WWHATHAT I ISS B BUREAUCRATICUREAUCRATIC MMANAGEMENT?ANAGEMENT?

Bureaucratic management is described as "a Bureaucratic management is described as "a formal system of organization based on clearly formal system of organization based on clearly defined hierarchical levels and roles in order to defined hierarchical levels and roles in order to maintain efficiency and effectiveness."maintain efficiency and effectiveness."

Bureaucratic management focuses on the ideal form of Bureaucratic management focuses on the ideal form of organization. Max Weber was the major contributor organization. Max Weber was the major contributor to bureaucratic management. Based on observation, to bureaucratic management. Based on observation, Weber concluded that many early organizations were Weber concluded that many early organizations were inefficiently managed, with decisions based on inefficiently managed, with decisions based on personal relationships and loyalty. He also observed personal relationships and loyalty. He also observed that nepotism was the main cause behind this and that nepotism was the main cause behind this and felt that nepotism was grossly unjust and hindered felt that nepotism was grossly unjust and hindered the progress of individuals. He therefore identified the progress of individuals. He therefore identified the characteristics of an ideal bureaucracy to show the characteristics of an ideal bureaucracy to show how large organizations should be run.how large organizations should be run.

IDEALIDEAL BUREAUCRACYBUREAUCRACY

The ideal bureaucracy is characterized by The ideal bureaucracy is characterized by impersonality, efficiency and rationality. impersonality, efficiency and rationality.

The key feature of the organization was that The key feature of the organization was that the authority of officials was subject to the authority of officials was subject to published rules and codes of practice.published rules and codes of practice.

All rules, decisions and actions are recorded All rules, decisions and actions are recorded in writing .in writing .

CHARACTERISTICS OF WEBER’S CHARACTERISTICS OF WEBER’S MODEL OF BUREAUCRACYMODEL OF BUREAUCRACY

• Fixed division of labor Fixed division of labor

• Hierarchy of offices Hierarchy of offices

• Rational-legal authority Rational-legal authority

• Creation of rules to govern Creation of rules to govern

performance performance

• Separation of personal from Separation of personal from

official property and rights official property and rights

• Selection based on Selection based on

qualifications qualifications

• Clear career paths Clear career paths

CHARACTERISTICS OF AN IDEAL BUREAUCRACY

1.A formal hierarchical structure: Each level controls the level below and is controlled by the level above. A formal hierarchy is on the basis of central planning and centralized decision making.

2. Formal rules and regulations: Rules are to be formalized and a standard operating procedure should be followed

3. Organization by function specialty (Division of Labour): Work is to be done by specialists in other words there should be division of labour which leads to specialization according the skills of the person

4. Focus:An "in focus" form serves to fulfill the needs of members and of the organization itself. Goals of an in focus bureaucracy relate to market share and high profits while an up focused form is to serve the stockholders, the board, or the agency empowering it.

5.Impersonal:Equal treatment and uniform policies and procedures for all to maintain uniformity and impersonality.

6. Formal selection: People selected for jobs on basis of technical qualifications.

CHARACTERISTICS CONTD.

WEBER’S THEORY OF WEBER’S THEORY OF BUREACRACYBUREACRACYABOUT WEBERABOUT WEBER

• Max Weber (1864-1920), who was a German sociologist, proposed different Max Weber (1864-1920), who was a German sociologist, proposed different characteristics found in effective bureaucracies that would effectively conduct characteristics found in effective bureaucracies that would effectively conduct decision-making, control resources, protect workers and accomplish organizational decision-making, control resources, protect workers and accomplish organizational goals. goals.

• Weber's work was indented to supplant old organizational structures that existed in Weber's work was indented to supplant old organizational structures that existed in the earlier periods of industrialization. the earlier periods of industrialization.

• Max Weber's model of Bureaucracy is oftentimes described through a simple set of Max Weber's model of Bureaucracy is oftentimes described through a simple set of characteristics characteristics

• Each characteristic is described in relation to which traditional features of Each characteristic is described in relation to which traditional features of administrative systems they were intended to succeed. administrative systems they were intended to succeed.

ABOUT HIS THEORYABOUT HIS THEORY• Based on his bureaucratic management theoryBased on his bureaucratic management theory

• Developed the concept of bureaucracy as a formal system of organization and Developed the concept of bureaucracy as a formal system of organization and administration designed to ensure efficiency and effectiveness. administration designed to ensure efficiency and effectiveness.

• Observed ‘nepotism’ (hiring of relatives regardless of their competence) in the Observed ‘nepotism’ (hiring of relatives regardless of their competence) in the organizations.organizations.

• An ideal Bureaucracy is highly structured, formalized and impersonal organization.An ideal Bureaucracy is highly structured, formalized and impersonal organization.

• He proposed that a form of organization, called a bureaucracy, characterized by division He proposed that a form of organization, called a bureaucracy, characterized by division of labor, hierarchy, formalized rules, impersonality, and the selection and promotion of of labor, hierarchy, formalized rules, impersonality, and the selection and promotion of employees based on ability, would lead to more efficient management. employees based on ability, would lead to more efficient management.

• Weber also contended that managers' authority in an organization should be based not on Weber also contended that managers' authority in an organization should be based not on tradition or charisma but on the position held by managers in the organizational hierarchy.tradition or charisma but on the position held by managers in the organizational hierarchy.

““CRITICSCRITICS”..!!”..!!• Max Weber himself noted, real bureaucracy will be less optimal and effective than Max Weber himself noted, real bureaucracy will be less optimal and effective than

his ideal type model. his ideal type model.

• One critique was Weber's claim that bureaucratic organizations were based on One critique was Weber's claim that bureaucratic organizations were based on rational-legal authority. rational-legal authority.

• ALSO, Parsons (1947) and Boulder (1954) note that Weber said authority rests both ALSO, Parsons (1947) and Boulder (1954) note that Weber said authority rests both in the "legal incumbency of office" and on "technical competence". This works if in the "legal incumbency of office" and on "technical competence". This works if superiors have more knowledge and skill, but often this is not the case. superiors have more knowledge and skill, but often this is not the case.

• Many philosophers and writers like Many philosophers and writers like Aldus Huxley, George Orwell, Hannah Arendt criticized his most common examples as that-which can lead to the treatment of individual human beings as impersonal objects.

ORGANIZATIONAL VISIT

 

We group 8, decided to meet the managers of Philips India and take their viewpoint on our topic. We met the General Manager (Mr. Anand Kulkarni) and the Regional Manager (Mr. Gajanan Joshi) and asked them the following questions regarding our topic:

Conclusion 

It is clear that modern organizations are strongly influenced by the theory of Max Weber. Their precepts have become such a strong part of modern management that it is difficult to believe that these concepts were original and new at some point in history.

THANKING YOU:

ANKIT JAIN: 65DISHA NAIR: 73POOJA MASHRU: 90SHIVANG PRATAP: 92PRATIK MANTRI: 95

(GROUP 8: FYBBA-B)