THE

MANAGEMENT
THEORY

by Max Weber
 2

○ Max Weber’s
Bureaucratic Theory
Objectives The objectives of ○ Characteristics of
the discussion to Bureaucratic Theory
know about are ○ Principles of
Bureaucratic Theory.
the following:
○ Advantages and
Disadvantages of
Bureaucracy
 3

Who is Max Weber?

Maximilian Karl Emil Weber (born April 21,
1864, Erfurt, Prussia [Germany]—died June 14,
1920, Munich, Germany), German sociologist and
political economist best known for his thesis of the
“Protestant ethic,” relating Protestantism to capitalism,
and for his ideas on bureaucracy.

His management theory was also known as “The

Bureaucratic Theory”.
 What is
bureaucracy?
 “
5

 Bureaucracy is a personnel and administrative structure of an organization.

Business, labor, religious, educational, and governmental systems depend on
a large work force arranged in a hierarchy to carry out specialized tasks
based on internal rules and procedures.  (Microsoft Encarta 2009)

 The term ‘bureaucracy’ has been widely used with invidious connotations
directed at government and business. Bureaucracy is an administrative
system designed to accomplish large-scale administrative tasks
by systematically coordinating the work of many individuals. 

 Weber has observed three types of power in organizations: traditional,

charismatic and rational-legal or bureaucratic. He has emphasized
that bureaucratic type of power is the ideal one. (Smriti Chand, 2010)
 6

○ Max Weber argued bureaucracy was

the most efficient and rational model
private businesses and public offices
could operate in. His bureaucratic
theories influenced generations of
business leaders and politicians well
into the 20th century. While his
theory prioritizes efficiency, it isn’t
necessarily the best practice for
leaders to implement. 
 7

Weber was unlike most workplace

leaders today. His theory of
management, also called the
bureaucratic theory, stressed strict
rules and a firm distribution of power.
He would’ve scolded today’s
managers, most of whom are open to
new ideas and flexible work
arrangements, for their leadership
style. 
 8

According to him, “precision, speed,

unambiguity, knowledge of files,
continuity, discretion, unity, strict
subordination, reduction of friction
and of material, and personal costs
– they are enhanced to the
optimum degree in strictly
bureaucratic management.”
 9

○ Weber believed that ○ Qualifications and

Max Weber’s bureaucracy was the achievements, rather than
personal ties, influence
most efficient way to
ideal set up and manage an advancement in the
organization. Weber felt that
organization organization, and
absolutely necessary the workplace should be
for larger companies professional and impersonal,
to achieve maximum and that "work connections"
productivity with should be avoided. Overall,
many employees and Weber's ideal bureaucracy
tasks.  values efficiency,
consistency, and transparent
power distribution.
 10

Two Essential
Elements of 1. It entails structuring an
Weber’s organization into a
Theory hierarchy.
of Bureaucratic
Management 2. The organization and its
members are governed by
clearly defined rational-legal
decision-making rules.
 11

3. Formal
1. Task specialization
Six (division of labor)
selection rules.

Characteristics 4. Efficient and

2. Hierarchical
of Bureaucracies management structure. 
uniform
requirements.

5. Impersonal
environment.

6. Achievement-
based
advancement.
 12

1. Clearly defined job roles

Other
Characteristics of 2. Meticulous record-keeping
the Ideal
Bureaucracy 3. Hiring based solely on
specific qualifications

4. Work-appropriate
relationships only
 13

Five (5) Principles of Bureaucratic

System of Administration

1. Managers Formal Authority

2. Positions should be Arranged Hierarchically
3. Tasks and Authority
4. Managers Must Create a Well-Defined System
of Rules
5. Appointment and Promotion Base on
Competency not Base on Sentiment.
 14

1. Managers Formal Authority

○ It is the power to hold people accountable for their
actions and to make decisions concerning the use
of organizational resources.
○ Bureaucratic organizations generally have
administrative class responsible for maintaining
coordinative activities of the members.
 15

Main features of this class are as follows:

a. People are paid and are 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.
 16

2. Positions should be Arranged Hierarchically,

so employees know whom to report to and who reports to
them. The basic feature of bureaucratic organization is that
there is hierarchy of positions in the organization.
3. Tasks and Authority,
associated with various positions in the organization
should be clearly specified for managers and workers
to know what is expected of them.
Each office in the bureaucratic organization
has specific sphere of competence.
 17

This involves:

a. A sphere of obligations to perform functions which has been

marked off as part of a systematic division of labour; 

b. The provision of the incumbent with necessary authority to carry

out these functions; and

c. The necessary means of compulsion are clearly defined and their

use is subject to definite conditions
 18

4. Managers Must Create a Well-Defined System of

Rules,
standard operating procedures, and norms so that
they can effectively control behaviour within an
organization. A basic and most emphasized feature of
bureaucratic organization is that administrative process
is continuous and governed by official rules. 
 19

5. Appointment and Promotion Base on Competency

not Base on Sentiment.
A notable feature of bureaucracy is that relationships
among individuals are governed through the system of
official authority and rules. Official positions are free
from personal involvement, emotions and sentiments.
Thus, decisions are governed by rational factors rather
than personal factors.
 20

Want big impact?

Use big image.
 21

1. Division of Labor
Merits of  Labour: is divided so that authority and responsibility are clearly
defined.
Bureaucracy
Advantage: Efficiency will increase through specialization

2. Managerial Hierarchy:
Offices or positions are organized in a hierarchy of authority.

Advantage: A clear chain of command will develop from the highest to the
lowest level of an organization (Fayol’s scalar chain principle), defining
different levels of authority, and thus individual discretion, as well as
enabling better communication
 22

3. Formal Selection: All employees are selected on the basis of technical

qualifications demonstrated by formal examination, education, or training.
Merits of  Advantage:  Employees will be hired and promoted based on merit and
expertise, thus, benefiting both them and their employer.
Bureaucracy
4. Career Orientation: Although a measure of flexibility is attained by
electing higher-level officials who presumably express the will of an
electorate (for example, a body of citizens or a board of directors),
employees are career professionals rather than “politicians.” They work for
fixed salaries and pursue “careers” within their respective fields
Advantage: The hiring of “career” professionals will ensure the
performance of assigned duties without regard for extraneous pressures,
as well as ensure a continuity of operations across election cycles.
 23

5. Formal Rules and Other Control: All employees are subject to formal
rules and other controls regarding the performance of their duties.
Merits of  Advantage: Efficiency will increase as formal rules and other controls
Bureaucracy relating to employee performance are enforced.

6. Impersonality: Rules and other controls are impersonal and

uniformly applied in all cases. The enterprise does not suffer when
some persons leave it. If one person leaves then some other
occupies that place and the work does not suffer.
Advantage: When rules and other controls are applied impersonally
and uniformly, involvement with personalities and personal
preferences is avoided. Subordinates are thereby protected from
arbitrary actions of their superior.
 24
a. Rules and other controls may take on
significance of their own and, as consequence,
become ends in themselves. Employees, for
example, may accuse budget personnel of
being more interested in applying rules and
regulations than achieving a firm’s primary
goals.
Demerits of b. Extreme devotion to rules and other
Bureaucracy controls may lead to situations in
which past decisions are blindly repeated with
out appreciation or concern for changed
conditions. Such “bureaucratic rigidity” results
in managers being compensated for doing
what they are told and not for thinking. The
result is “rule by rules” rather than common
sense.
 25

c. Whereas delegation of authority to lower

levels may increase operational effectiveness, it
may also encourage an emphasis on subunit
rather than overall goals, thereby prompting
Demerits of subunit conflict and decreasing effectiveness. A
typical example can be found in many
Bureaucracy universities where conflicts over which
department is going to offer what courses
often result in  11unnecessary duplication of
subject offerings, as well as the unnecessary
expenditure of resources.
 26

d. Although rules and other controls are intended

to counter worker apathy, they may actually
contribute to it by defining unacceptable behavior
and, thus, specifying a minimum level of
acceptable performance. That is, it is possible,
Demerits of once rules have been defined, for employees
Bureaucracy to remain apathetic, for they now know just how
little they can do and still remain secure. This is
commonly known as “working to the rules,”
because what is not covered by rules is by
definition not an employee’s responsibility.
27
 28

References

Mahfooz, Ahmed. The theory of bureaucracy of Max Weber,

merits and demerits.
https://www.academia.edu/23173795/THE_THEORY_OF_BU
REAUCRACY_OF_MAX_WEBER_MERITS_AND_DEMERITS

Peek, Sean, (2023). The management theory of Max Weber.

https://www.business.com/articles/management-theory-of-
max-weber/
 29

Thank you!
RIANE MARGARETH B. MEDALLA

MAM - AS