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Max Webers contribution to Management.

A. BUREAUCRACY.

Bureaucracy is an administrative system
designed to accomplish large scale
administrative tasks by systematically
coordinating the work of many individuals.
1. Administrative class.
a. People are paid and whole time
employees.
b. They receive salary and other perquisites
normally based on their positions.
c. Their tenure in the organization is
determined by the rules and regulations
of the organization.
d. They do not have any proprietary interest
in the organization.
e. They are selected for the purpose of
employment based on their competence.


2. Hierarchy.

a. A system of ranking various positions.
b. Lower office subject to control and
supervision.
c. No office is left uncontrolled.
d. Hierarchy serves lines of communication.
e. Authority given from immediate superior.
f. Hierarchy is not unitary but subpyramids.

3. Division of work.

a. Obligation to perform specific functions
which are assigned by division of labor.
b. Necessary authority.
c. Clearly defined area of competence.
d. No work is left uncovered.

4. Official Rules.

a. Administrative process is continuous and
governed by official rules.
b. Rules for uniformity and coordination of
efforts.
c. In absence of rule, matter is referred
upward for decision.
d. Rules provide stability, continuity and
predictability.
5. Impersonal relationships.
a. Relationship among individuals are
governed through the system of official
authority and rules.
b. Impersonality concept used within and
outside organization.
6. Official Record.
a. Activities and decisions recorded and
preserved for future reference.
b. Extensive use of filling system.
Problems in Bureaucracy.

1. Invalidity of Bureaucratic assumptions.
a. Rules become the source of inefficiency.
b. Rigid organizational hierarchy works
against efficiency.
c. Impersonal approach cannot be adopted
always.
2. Goal Displacement.

a. People are judged on the basis of
observance of rules and not results.
b. Rules become objectives and
organizational objectives become
secondary.
c. Expenditure becomes criterion instead of
results.
3. Unintended consequence.


a. Trained incapacity.
b. Conflict between organization and
individuals.
c. Conflict between professionals and
bureaucrats.
4. In humane organization.
a. It is inhumane and denies mans needs.
b. It is incompatible with the development of
mature personality.
c. It promotes conformity.
d. It does not consider the informal
organization and interpersonal difficulties.
e. The hierarchy interferes with
communication.
f. Innovation and new knowledge are
stifled.
g. It is ineffective in turbulent enviornment.

5. Closed system Perspective.

a. A closed system is self contained and
self maintaining.
b. It is generally rigid and static.
c. No allowance for adapting to changes in
environment.
d. It is suitable in highly static and
predictable environment.