LUNAR INTERNATIONAL COLLEGE

MBA DEPARTMENT

MANAGEMENT THEORIES AND PRACTICES

Assignment I
Article review

Name: Yeabkal Belege

ID NO: GSR/0239/13

Section 5

Submitted to Amare Abawa (Phd)

Authority still hold in the twenty-first century. Journal of management. History, Vol.16 N0.4, 2010, pp.449-453.

The article “does Weber’s notion of authority still hold in twenty first century?” was writen by
Jeffery D.Houghton. Through out my reading of this article, it become clear that it focuses on
Max Weber’s life, work and contribution to management thought and also explain whether his
conceptualization of authority still holds the twenty fist century. The author begin by explain
Weber's life . He stated, Max Weber (1864-1920) has been one of the most influential thinkers
in sociology and political science. Weber had a strong impact on various disciplines such as
economics, sociology, history, political science and low. The writing of max weber have had an
influence on the development of the field of management and organizational theory over the
past century.

In this article, Jeffery point out Weber’s developed path towards understanding how authority
is legitimated as belief system. He stated that after Weber's death his work “The protestant
Ethic” was first translated to English, so that Weber’s influence on development of
management and organization theory. Max Weber proposed a theory of authority that include
three types. Those are traditional, rational/legal and charismatic authority. For weber
traditional authority assumption is authorized by obligation of tradition. The ability and right to
rule is passed down through heredity. It doesn’t change over time, dose not facilitate social
change, tends to be irrational and inconsistent. The other assumption is rational/legal authority
which is empowered by formalistic belief in the content of the law. Weber thought the best
example of legal-rational authority was a bureaucracy. The third theory which proposed by
weber was charismatic authority is found in a leader whose mission and vision inspire others.

Jeffer D.Houghton notes that Weber’s theory of authority is rich and complicated. The three
authority types may be re-established by traits that differentiate them from other types. For
weber traditional authority is impersonal and non-rational. Legal authority is stable, impersonal
and rational. Finally charismatic authority is explained by Weber as unstable, personal and non-
rational. He saw both legal/rational and charismatic authority as forms of rebellion against the
stagnant status of traditional authority.

To address the argument of does Weber’s notion of authority still hold in twenty first century?
Jeffery D.Houghon examine the characteristics of modern organization which is decentralized
network based structures that are quite different from the large , complex bureaucracies of
Weber’s day. Houghon stated that weber’s writings on charismatic authority have been and
continue to be help full in shaping modern leadership theory, that the charismatic form of
authority may be applicable and effective in today’s environments.

In my point of view charismatic leadership is a good style among the mode of organization,
particularly if it combined with transformational leadership, which is a leadership style in which
leaders encourage, inspire and motivate employees to innovate and create change that will
help grow and shape the future success. This is accomplished by setting an example at
executive level through a strong sense of corporate culture, employee, ownership and
independence in the work place.

It can be argued that since management actually involves the managing of human resources,
financial resources, time resources and material resources; the various approaches to
management are actually looking at the same thing but from different perspectives. A
methodical understanding of the various approaches to management as well as each theory's
limitations and relevance, and how it influences the achievement of organizational goals is
imperative for managers. According to some researches it is believed that charismatic
leadership has large contribution to modern leadership. It can develop creativity and critical
thinking to the followers. How ever there is some negative effects of charismatic in relation to
the followers. The followers are at risk in blind extremism which lead to self-sacrifice. The
leader are often more arrogant and not aware about social responsibilities.

Jeffery D.Houghton provides explanation of Weber's conceptualization of authority, it's

influence on the field of management and it's relevancy in twenty first century.