Md.

Nayeem Hossain
PA, 25th Batch, RU

404.20.Q6

Noted By: Md. Nayeem Hossain, BSS(Hons), Public Administration (25 th Batch), RU.

Question-6: Critically discuss the Bureaucratic Theory/Model of Max Weber.

Introduction:

At the end of the 19th century, it was German sociologist and author of The Protestant Ethic and the
Spirit of Capitalism (1905), Max Weber who was the first to use and describe the term bureaucracy. This
is also known as the bureaucratic theory of management, bureaucratic management theory or the Max
Weber theory. He believed bureaucracy was the most efficient way to set up an organisation,
administration and organizations. Max Weber believed that Bureaucracy was a better than traditional
structures. In a bureaucratic organisation, everyone is treated equal and the division of labour is clearly
described for each employee.

Meaning & Definition of Bureaucracy:

Bureaucracy is defined in the dictionary as, “a system for controlling or managing a country, company,
or organization, that is operated by a large number of officials employed to follow rules carefully”.

According to Max Weber, "Bureaucracy is an organizational structure characterized by many laws,

standardized procedures, procedures and requirements, number of desks, meticulous division of labor
and responsibility, clear hierarchies and professional interactions between employees that are almost
impersonal".

According to the bureaucratic theory of Max Weber, such a structure was indispensable in large
organizations in structurally performing all tasks by a great number of employees. In addition, in a
bureaucratic organisation, selection and promotion only occur on the basis of technical qualifications.

Bureaucratic Theory:

Because of the problems Weber saw with traditional authority he favored a more rational approach to
running an organization and helping it to achieve its goals. There are two parts to Weber’s Bureaucratic
Theory:

1. A clear organizational hierarchy: An organizational hierarchy defines how people are structured
and fit within an organization. For example, a typical company will have the CEO at the top of
the hierarchy, followed by the executive board. Each board member will then be responsible for
managers, who in turn will manage employees.

Weber wanted each hierarchy to have what he called legal-rational authority. This means that
defined authority sits with a position, not with a person. For example, your subordinate would
never be able to tell you what to do even if they happened to be the son of the CEO because

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their formal position doesn’t hold that power. Basically, your authority comes from the position
you hold in the hierarchy.
2. Clear rules for decision making: Weber referred to this as rational-legal decision-making rules.
This means that there should be a set of explicit rules and procedures defining how the
organization functions, and that these rules should be consistent with the rules and laws of
wider society.

Bureaucratic Theory and Legal Responsibility:

According to the bureaucratic theory of Max Weber, three types of power/authority can be found in
organizations. These are:

1. Traditional Authority,
2. Charismatic Authority and
3. Legal Authority

He refers in his bureaucratic theory to the latter as a bureaucracy. All aspects of a democracy are
organised on the basis of rules and laws, making the principle of established jurisdiction prevail.

The following three elements support bureaucratic management:

1. All regular activities within a bureaucracy can be regarded as official duties;

2. Management has the authority to impose rules;
3. Rules can easily be respected on the basis of established methods.

Bureaucratic Organization:

According to the bureaucratic theory of Max Weber, bureaucracy is the basis for the systematic
formation of any organisation and is designed to ensure efficiency and economic effectiveness.

It is an ideal model for management and its administration to bring an organisation’s power structure
into focus. With these observations, he lays down the basic principles of bureaucracy and emphasises
the division of labour, hierarchy, rules and impersonal relationship.

Characteristics of the Bureaucratic Theory:

Below is a more detailed explanation of Max Weber’s six characteristics/principles of the bureaucratic
theory/bureaucratic management.

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1. Hierarchical Management Structure/Hierarchical Layers of Authority:

One of the hallmarks of a bureaucracy is a hierarchical management structure. In a hierarchy, each level
within the organizational structure controls the level below but is controlled by the level above.

Power and authority are clearly and explicitly defined for each position within the hierarchy. Job
responsibilities and duties are also clearly defined for each position.

Or,

Managers are organised into hierarchical layers, where each layer of management is responsible for its
staff and overall performance. In bureaucratic organizational structures, there are many hierarchical
positions. This is essentially the trademark and foundation of a bureaucracy.. The hierarchy of authority
is a system in which different positions are related in order of precedence and in which the highest rank
on the ladder has the greatest power. The bottom layers of bureaucratic organizational structures are
always subject to supervision and control of higher layers.. This hierarchy reflects lines of bureaucratic
communication and the degree of delegation and clearly lays out how powers and responsibilities are
divided.

2. Division of Labor/Task Specialization:

Division of labor means that tasks are divided between the employees of the organization. Each
employee will be responsible for specific tasks and each department will be responsible for specific
functional areas.

As an example of this think about how your salary is set and paid within a large organization. Your salary
will be set by your line manager, but you will be paid by the Payroll department, rather than the money
being paid to your boss who would then give it to you. There are advantages to breaking things up in
this way. First, your manager is the person in the best position to set your salary as they observe your

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performance much more closely than the payroll department. Second, the payroll department are
specialists in payroll and ensure you get paid on the same day each month.

Or,

Tasks are divided into simple, routine categories on the basis of competencies and functional
specialisations. Every employee is responsible for what he/she does best and knows exactly what is
expected of him / her. By dividing work on the basis of specialisation, the organisation directly benefits.
Each department has specific powers.. As a result, there is a delineation of tasks and managers can
approach their employees more easily when they do not stick to their tasks. Every employee knows
exactly what is expected of him/ her and what his/ her powers are within the organisation.. Every
employee has a specific place within the organisation and is expected to solely focus on his/ her area of
expertise. Going beyond your responsibilities and taking on tasks of colleagues is not permitted within a
bureaucracy.

3. Formal Selection Process:

All employees are treated equally and are hired and promoted on the basis of qualifications, expertise,
performance, and experience. There are formal rules and regulations to ensure this selection process
isn’t abused. For example, your manager can’t hire someone simply because they’re friends from the
golf club.

Or,

All employees are selected on the basis of technical skills and competences, which have been acquired
through training, education and experience.. One of the basic principles is that employees are paid for
their services and that level of their salary is dependent on their position. Their contract terms are
determined by organisational rules and requirements and the employee has no ownership interest in
the company.

4. Career Orientation:

The organization is career orientated, meaning that if you follow the rules and regulations and perform
well you will not be arbitrarily fired. In fact, if you perform well you may even have the chance to be
promoted or receive a pay rise. In this way, the organization offers each employee the opportunity for a
long term career, provided they follow the rules and perform well.

Or,

Employees of a bureaucratic organisation are selected on the basis of their expertise. This helps in the
deployment of the right people in the right positions and thereby optimally utilising human capital.. In a
bureaucracy, it is possible to build a career on the basis of experience and expertise.. As a result, it offers
lifetime employment. The right division of labour within a bureaucratic organisation also allows
employees to specialise themselves further, so that they may become experts in their own field and
significantly improve their performance.

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5. Formal Rules and Regulations:

There are rules in place that govern how all employees should behave. Managers cannot simply appraise
their employees according to their whims. Instead, they must assess employees according to the rules.
For example, if you’ve been set a target to make 10 widgets and you make 10 widgets then you’ve
achieved your target. Your manager can’t simply decide retrospectively that you should have really
made 15 widgets and then fire you for not making 15 widgets. The rules protect employees against this
type of behavior.

Similarly, there are rules surrounding how we behave, treat, and interact with other employees.

Or,

Formal rules and requirements are required to ensure uniformity, so that employees know exactly what
is expected of them. In this sense, the rules and requirements can be considered predictable.. All
administrative processes are defined in the official rules. By enforcing strict rules, the organisation can
more easily achieve uniformity and all employee efforts can be better coordinated. The rules and
requirements are more or less stable and always formalised in so-called official reports.. Should new
rules and requirements be introduced, then senior management or directors are responsible for this.

6. Impersonality:

The rules are well defined and clear and are applied in the same way to everyone. The rules are there to
prevent favoritism or nepotism.

If two employees were to enter into a relationship together whilst working within the same department,
then often one of them will be moved to a different department or different part of the organization to
avoid favoritism and help keep in-work relationships impersonal.

Or,

Regulations and clear requirements create distant and impersonal relationships between employees,
with the additional advantage of preventing nepotism or involvement from outsiders or politics. These
impersonal relationship are a prominent feature of bureaucracies.. Interpersonal relationships are solely
characterised by a system of public law and rules and requirements. Official views are free from any
personal involvement, emotions and feelings. Decisions are solely made on the basis of rational factors,
rather than personal factors.

Examples of Bureaucracies:

Bureaucracies exist throughout society and the business world. Public sector bureaucracies include
many parts of government administration, the military, and almost all universities. In the private sector,
large organizations are often structured in a bureaucratic fashion, examples include Coca-Cola, General
Electric, and IBM.

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Advantages of Bureaucratic Theory

There are a number of advantages of bureaucracy including:

1. Efficiency: Within the hierarchy, everyone has a specific job to perform. This clear delineation of
responsibility and specialization can lead to greater efficiency.

2. Predictability: Having a hierarchy, rules and procedures enable large organizations to cope with highly
complex tasks. It’s almost impossible to imagine how something as complicated as a manned spacecraft
could be constructed and sent into space successfully within an organization with no rules or hierarchy.

Criticism/Disadvantage/Limitations of Bureaucratic Theory:

Max Weber's bureaucratic organisation still has several fault lines and has attracted criticism for that.
These criticisms of bureaucratic theory include: :

1. Inflexibility & Rigid: While the hierarchy and rules are there to encourage efficiency they can be very
slow to adapt to new situations or information.

2. Empire Building: It is not uncommon for people climbing through the hierarchy to try and maximize
their power by having the biggest team possible for purposes of self-promotion or appearing powerful
and important.

3. Red Tape: Bureaucracies are often associated with excessive red tape, whereby excessive structure,
rules, and processes slow tasks down and lead to frustration for the people trying to get things done to
the best of their ability.

There are just so many rules and degrees of authority. It gives the workers a greater sense of security.
But a window for "red-tapism" is created by bureaucratic management.

4. Focus/Emphasis: There is too much emphasis on the rules and regulations. Owing to so much
formality and laws, organization and communication were hindered.

5. Waste of Time, Money & Effort: Bureaucracy involves a lot of paperwork which leads to a waste of
time, money, and also effort.

6. Unnecessary Delay: The rules and formalities lead to an unnecessary delay in the decision-making
process.

7. Not Ideal for Business Organization: A hierarchical approach is not ideal for business organizations
because of its unnecessary formality. For government agencies, the bureaucratic model might be
appropriate.

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8. Dedication is not Considered: While the technical/professional skills/qualifications of the employee is

an important aspect of his promotion, a bureaucratic organization does not consider the employee’s
commitment and dedication.

9. Limited Scope for HRM: There is limited scope for Human Resource management.

10. Difficultly: Coordinating and communicating is difficult.

Conclusion:

Bureaucratic theory was developed by Max Weber to address some of the problems with traditional
authority. Although the word bureaucracy has negative associations these days there are a number of
advantages to having a bureaucratic structure in an organization.

Md. Nayeem Hossain

B.S.S.(Hons), Part-4

Session: 2016-17

Dept. of Public Administration

University of Rajshahi, Rajshahi-6205, Bangladesh.

Email: nayeem1.ru@gmail.com