Bureaucratic Management Theory
Bureaucratic Management Theory
ATIC
MANAGEM
ENT
MAX
WEBER
Max Weber (1864-1920) was a German academic and sociologist who provided another approach in the development of classical management theory.
As a German academic, Weber was primarily interested in the reasons behind the employee’s actions and in why people who work an organization accept the authority of their superiors and comply with the rules of the organization.
Legitimate Type of Authority by Max Weber
Weber made a distinction between authority and power. According to Weber prower educes obedience though force or the threat of force which induces individuals to adhere to regulations. In contrast, legitimate authority entails the individuals acquiesce the authority is exercised upon them by their superiors. Weber goes on to identify three types of legitimate authority.
Traditional authority – Traditional
authority is readily accepted and unquestioned by
individuals since it emanates from deeply set
Customs and tradition. Traditional authority is
found in tribes and monarchies.
Charismatic authority – Charismatic
authority is gained by those individuals who have
gained the respect and trust of their followers. This
type of authority is exercised by a charismatic leader
Rational-legal authority Rational-legal authority stems from the setup of an organization and the position held by the person in authority. Rational-legal authority is exercised within the stipulated rules and procedures of an organization.
The Key Characteristic of a Bureaucracy
Weber coined the last type of authority with the name of a bureaucracy. The term bureaucracy in terms of an organization and management functions refers to the following six characteristics:
Management by rules
A bureaucracy follows a consistent set of rules
that control the functions of the organization.
Management controls the lower levels of the
organizations hierarchy by applying established
rules in consistent and predictable manner.
Division of labor
Authority and responsibility are clearly defined and officially
sanctioned. Job descriptions are specified with responsibilities and
line of authority. All employees have thus clearly defined rules in a
system of authority and subordination.
Formal hierarchy structure
An organization is organized into a hierarchy of authority and
follows a clear chain of command. The hierarchical structure
effectively delineates the lines of authority and the subordination of
the lower levels to the upper levels of the hierarchical structure.
Personnel hired on grounds of technical competence
Appointment to a position within the organization is made on
the grounds of technical competence. Work is assigned
based on the experienced and competence of the individual.
Managers are salaried officials
A manager is a salaried official and does own the
administered unit. All elements of a bureaucracy are defined
with clearly defined rules and responsibilities and are
managed by trained and experienced specialists.
Written documents
All decisions rules and actions taken by the
organization are formulated and recorded in
writing. Written documents ensure that there
is continuity of the organizations policies and
procedure.
HENRY FAYOL
Henri Fayol (Istanbul, 29 July 1841–Paris, 19 November 1925) was a French
mining engineer, director of mines, who developed independent of the theory of Scientific
Management, a general theory of business administration also known as Fayolism.
Fayolism –is one of the first comprehensive
statements of a general theory of management,
developed by Fayol. He has proposed that there are five
primary functions of management and 14 principles of
management
: planning ,organizing, commanding, coordinating,
controlling
Controlling is described in the sense that a
manager must receive feedback about a
process in order to make necessary
adjustments.
Principles of Management
1.Division of work. This principle is the same as Adam Smith's 'division of labour'. Specialization increases output by making employees more efficient.
2.Authority. Managers must be able to give orders. Authority gives them this right. Note that responsibility arises wherever authority is exercised.
3.Discipline. Employees must obey and respect the rules that govern the organization. Good discipline is the result of effective leadership, a clear understanding between management and workers regarding the organization's rules, and the judicious use of penalties for infractions of the rules.
4. Unity of command. Every employee should receive orders from only one superior.
5.Unity of direction. Each group of organizational activities that have the same objective should be directed by one manager using one plan.
6.Subordination of individual interests to the general interest. The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole.
7.Remuneration. Workers must be paid a
fair wage for their services.
8.Centralization. Centralization refers to the
degree to which subordinates are involved in
decision making. Whether decision making is
centralized (to management) or decentralized (to
subordinates) is a question of proper proportion. The
task is to find the optimum degree of centralization
for each situation.
9.Scalar chain. The line of authority from top
management to the lowest ranks represents the
scalar chain. Communications should follow this chain.
However, if following the chain creates delays, cross-
communications can be allowed if agreed to by all
parties and superiors are kept informed.
10. Order. People and materials should be in the
right place at the right time.
11.Equity. Managers should be kind and fair to
their subordinates.
12.Stability of tenure of
personnel. High employee turnover is
inefficient. Management should provide orderly
personnel planning and ensure that replacements are
available to fill vacancies.
13.Initiative. Employees who are allowed
to originate and carry out plans will exert high
levels of effort.
14.Esprit de corps. Promoting team
spirit will build harmony and unity within the
organization.
James Mooney
Mooney believed management to
be the technique of relating
functions.
4 universal principles of organization.