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The term bureaucracy refers to a particular form and style of administrative organisation. Max Weber (1864-1920) developed the theory of bureaucracy where his interest was in power and authority and organisational structures. His study of business was centred on understanding the need for stability and consistency in achieving efficiency. Such a bureaucratic approach required employees to be selected based on merit for clearly defined roles and work within set rules and regulations. According to Victor A. Thompson bureaucracy is the result of the drive for productivity and control which creates an inappropriate environment of creativity in an innovative organisation. In today’s competitive world of business, organisations are looking for resources for innovation rather than stick to the formal departments which only stand as a skeleton. Bureaucracy is associated with tradition, stability and predictability whereas innovation is much more flexible, fluid and dynamic. That is the reason why the idea of innovation in bureaucracy does not seem to materialise. Also a bureaucracy should have formal selection where people are selected for jobs based on technical qualifications. These workers have very good working skills and experience but might not be creative enough to develop new business trends. Nowadays the organisational structure is based on creating new ideas rather than jurisdiction. Large companies like Google use this strategy by acquiring new companies such as You tube in 2006 in order to stimulate fresh ideas and therefore enhance business growth. Conceptual skills are required in identifying opportunities for innovation like understanding the business uses of technology rather than continue with the outdated methods of a bureaucratic work organisation. The survival of an organisation in today’s highly competitive business industry requires much more than just being a bureaucracy. Organisations need to increase their level of effectiveness through innovation and motivation of its employees at all levels. Sometimes changes in the standard operating procedures such as the job structure and job design are required to reach the aims and objectives of the business.