How Bureaucratic Management is used in business?

Discover what sets bureaucratic management apart from a hierarchy and how each can be used to achieve organizational goals. Learn the key differences now!

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What is Bureaucratic Management ?

Bureaucratic management is a system of managing an organization that relies on rules and procedures. This type of management is often used in large organizations, where there is a need for clear lines of authority and a chain of command. In a bureaucratic organization, managers typically have a great deal of control over their subordinates and are able to make decisions without consulting others. This type of management can be efficient and effective, but it can also be inflexible and slow to respond to change. In bureaucratic management, decisions are made through a chain of command.

The manager at the top of this chain makes important decisions and delegates certain tasks to lower-level managers. These managers then pass on the information they have received to their subordinates. This type of management is typically hierarchical, meaning that there are clear lines of authority and a chain of command. In a bureaucratic organization, managers typically have a great deal of control over their subordinates and are able to make decisions without consulting others.

 

How bureaucratic management is used in business

 

History of bureaucratic management

The term “bureaucracy” was coined in France during the 18th century to describe the agency of civil servants responsible for collecting taxes. The word bureaucracy is derived from the French term bureau, meaning “desk”. In the 19th century, French public servants began using the word bureaucracy to describe their administrative and clerical duties. In time, the term was applied to government offices in general. A bureau is an agency of a national, state or local government that collects and publishes information about its jurisdiction. It provides services such as registration and passports.

The use of the term “bureaucracy” in a pejorative sense originated with the French historian Alexis de Tocqueville, whose Democracy in America (1835) was considered to be an early work on American public administration. As a result, “bureaucracy” became the preferred term to refer to the administrative and political spheres, which were undergoing rapid development during this time in the United States. The academic study of bureaucracy is called public administration. In French, the word bureau means office or department.

 

How is bureaucratic management used in business?

 

In business, it is used in various ways. In the modern business world, the use of a company’s bureaucracy is often limited to its management structure only, where employees are divided into departments (e.g., marketing, sales, accounting). Their tasks, as well as the employees’ qualifications, may be clearly defined. A bureaucracy may even have a chain of command. This means that there are strict lines of authority and communication between different departments and levels of management and employees.

What is the difference between bureaucracy and a hierarchy?

Bureaucratic management is a system of managing an organization, where decisions and actions are based on established rules and regulations. It is also known as hierarchical management, due to its hierarchical structure.

Hierarchy refers to the different levels of authority within an organization, while bureaucracy involves a set of formal procedures that must be followed when making decisions or taking action.

The main difference between hierarchy and bureaucracy lies in the way decisions are made. In a hierarchy, decision-making power rests with the top level of management. This means that lower-level employees have limited influence over organizational decisions.

On the other hand, bureaucracies rely on standardized processes for decision-making which gives equal power to all employees regardless of their position in the organization.

What is the difference between bureaucracy and management by objective?

Management by objective (MBO) is often used to replace bureaucracy in business. MBO is a non-bureaucratic management system in which goals are set and performance measured. MBO, however, is not always successful, either because it may be difficult to measure performance or because the goals may not be realistic.

What is the difference between bureaucracy and socialism?

Bureaucracy and socialism are two distinct philosophies that have often been confused for one another. The primary difference between these two concepts is that bureaucracy is an organizational system of management, while socialism is a political and economic system.

Bureaucratic management, as first outlined by German sociologist Max Weber in his work ‘Economy and Society’, is characterized by a hierarchical division of labor, an emphasis on rules and regulations, and impersonal decision-making with the aim of increasing efficiency. It has been employed across many industries to this day in order to structure organizations into clearly defined roles with pre-defined processes.

In contrast, socialism focuses on equal ownership of resources among citizens as well as collective decision-making and resource distribution. This economic ideology typically advocates for public ownership of production in order to maximize social welfare.

 

What is the contribution of bureaucratic management theory?

The bureaucratic theory contributed to the development of management science. The bureaucratic theory focused on efficiency and control. The bureaucratic theory is not very relevant today. The bureaucracy theory was developed to explain why the Soviet Union did not function well.

The bureaucratic theory is based on the assumption that all people are motivated by self-interest. This idea contributes to a pessimistic view of human nature and is no longer a popular view.

The bureaucratic theory is based on assumptions such as that bureaucracies are efficient, all people in bureaucracy are motivated by self-interest, and the bureaucracy is inefficient. The bureaucratic theory assumes that all people are motivated by self-interest. This assumption is not a very useful assumption to make.

The bureaucratic theory assumes that all people are motivated by self-interest, and that this is the only way to explain why people act the way they do. This is not a very realistic assumption.

 

Advantages of using bureaucratic management in business.

The advantages of using bureaucratic management include:

  1. Bureaucrats are consistent and predictable.
  2. Plans are often written down and can be easily communicated to others.
  3. Bureaucratic organizations have a hierarchy of authority to which everyone must conform.
  4. Bureaucratic organizations have standard operating procedures and a defined chain of command.
  5. Bureaucracies provide incentives to employees.
  6. Bureaucracies have established rules and regulations that everyone must follow
  7. Bureaucratic organizations can be very effective when all tasks are routine and require little creativity, problem-solving, or decision-making.
  8. Bureaucratic organizations have a well-defined chain of command that is easy to follow.

 

Disadvantages of using bureaucratic management in business.

  1. Bureaucratic organizations tend to be rigid and inflexible, making it difficult to respond effectively to change.
  2. Employees in bureaucratic organizations often feel alienated from the organization and their superiors.
  3. Bureaucratic organizations tend to be slow, especially when there are many levels of management involved.
  4. Bureaucratic organizations often have a poor climate for communication, leading to low employee morale and high turnover rates.
  5. Bureaucratic organizations are often less productive than other types of organizations. 6. Bureaucratic organizations can become more concerned with protecting their own turf rather than making decisions that will benefit the organization as a whole.
  6. Bureaucratic organizations are often less successful than other types of organizations. 8. Organizations that emphasize job security and the protection of their own turf will tend to be more bureaucratic in nature.

Conclusion.

The bureaucratic organization has been the most common type of organization for the past 100 years. It is the model that most people think of when they hear the word “organization”. Despite its great success, this type of organization has many weaknesses.

For example, it tends to be very hierarchical and inflexible. It also often becomes involved in internal turf battles. As a result, bureaucratic organizations are frequently less successful than other types of organizations.