CA-2

Name- Tanmoy Mondal

Roll- 16500921023
Subject- Organizational Design
Paper Code- HR 304

Topic Name- The Bureaucratic Model

Max Webber who propounded the bureaucratic theory of organization and management . It has
influenced a modern thinking lot in these areas. A German sociologist (a teacher at Berlin
University and contemporary of Taylor and Fayol) Webber developed the bureaucratic model of
organization which is the most rational means of carrying out imperative control over human
beings.

Bureaucracy refers to “certain characteristics of organizational design”. He thought bureaucracy

as “the most efficient form that could be used most effectively for complex organizations-
business, example- arising out of the needs of modern society.”

Bureaucratic organisation in Webber’s views is the most efficient form of organisation. He

names it as rational-legal. It is rational because specific objectives of the organisation are laid
down and organisation is designed to achieve them and it is legal because authority flows from a
clearly defined set of rules, procedures and roles.

Webber’s Bureaucratic Model possesses the following characteristics:-

(1) Administration through well-defined rules.

(2) A hierarchy of authority and chain of command throughout the organization, with a
regulated system of appeal.

(3) Assignment of activities to individuals as fixed duties.

(4) Decision making on rational and objective criteria so that all decisions are impersonal.

(5) Employment and promotion based on demonstrated competence; protection against

arbitrary dismissal, and training of officials.

(6) Office holding as a career within the hierarchical order.

 CA-2
Name- Tanmoy Mondal
Roll- 16500921023
Subject- Organizational Design
Paper Code- HR 304

Max Weber’s Bureaucratic Form – 6 Major Principles:-

1. A formal hierarchical structure – In a bureaucratic organization, each level controls the

level below it. Also, the level above it controls it. A formal hierarchy is the basis of central
planning and centralized decision-making.

2. Rules-based Management – The organization uses rules to exert control. Therefore, the
lower levels seamlessly execute the decisions made at higher levels.

3. Functional Specialty organization – Specialists do the work. Also, the organization divides
employees into units based on the type of work they do or the skills they possess.

4. Up-focused or In-focused Mission – If the mission of the organization is to serve the

stockholders, board, or any other agency that empowered it, then it is up-focused. On the
other hand, if the mission is to serve the organization itself and those within it (like
generating profits, etc.), then it is in-focused.

5. Impersonal – Bureaucratic organizations treat all employees equally. They also treat all
customers equally and do not allow individual differences to influence them.

6. Employment-based on Technical Qualifications – Selection as well as the promotion of

employees is based on technical qualifications and skills.
 CA-2
Name- Tanmoy Mondal
Roll- 16500921023
Subject- Organizational Design
Paper Code- HR 304

Advantages and disadvantages of the Bureaucratic Theory:-

Advantages-
Generally speaking, the term bureaucracy has a negative connotation and is often linked to
government agencies and large organisations.Nevertheless, the great benefit of a bureacracy is
that large organisations with many hierarchical layers can become structured and work
effectively. It is precisely the established rules and procedures that allows for high efficiency and
consistent execution of work by all employees.
All this makes it easier for management to maintain control and make adjustments when
necessary. Bureaucracy is especially inevitable in organisations where legislation plays an
important role in delivering a consistent output.

Disadvantages-
Bureaucracy is characterised by a large amount of red tape, paperwork, many desks, certain
office culture and slow bureaucratic communication due to its many hierarchical layers.
This is the system’s biggest disadvantage of a bureaucratic organization. It is also unfortunate
that employees remain fairly distanced from each other and the organisation, making them less
loyal.
Bureaucracy is also extremely dependent on regulatory and policy compliance.
This restricts employees to come up with innovative ideas, making them feel like just a number
instead of an individual. Later research (the human relations theory) demonstrated that
employees appreciate attention and want to have a voice in decision making.

Bureaucratic Theory problems:-

Because employees of an bureaucratic organization have no opportunity to voice their opinion or
influence decision making, a bureaucracy may demotivate employees in the long run.
Moreover, over the course of time, employees may start to get annoyed at the various rules and
requirements, with the risk that they may start boycotting and / or abusing these rules and
standing up to the established order.
It is therefore very important that bureaucratic organisations properly inform employees well in
advance about their approach to work and requires them to accept this. Only employees who
agree to this approach are suitable to work within a bureaucratic organization.