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  • Bureaucracy in an Organization | Complete Controller

    Bureaucracy in an Organization

    Bureaucracy in an Organization - Complete Controller

    Exploring bureaucracy and its characteristics has been a fascinating subject for many theorists. Max Weber and Rosemary Stewart are two notable contributors whose observations have illuminated the profound impact bureaucracy can have on organizations. Their insights are invaluable for understanding this complex topic!

    What is Bureaucracy?

    To define bureaucracy, Weber put forward several characteristics which would form an ideal type of bureaucracy.

    1. The hierarchy of command is an essential element for any business. Weber believes that every organization should have a hierarchy of command starting from the top-level management to the bottom level of employees.
    2. There should be no biases. Every position and level must have a clear set of instructions and expectations related to it. This way there can be no room for questions. 
    3. Employees must be rewarded for their work and the achievements they have made for the betterment of the organization.
    4. Specialization of work related to the division of work theory

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    What are Authority Types?

    With the characteristics of bureaucracy, he also defined the authority types that exist in our society and, hence, in the organizations. 

    1. Traditional: The traditional form of authority existed in the earlier ages, where authority was mainly linked with hereditary power. If a father dies, the power of the authority gets transferred to the son. Such authority still exists in companies with a single owner instead of multiple owners (shareholders). 
    2. Rational Authority: This form of authority is linked with bureaucracy, where candidates are selected based on their skills and work experience. Every selection for the main position is made through rules and following a professional channel where impartial decision-making is done.
    3. Charismatic Authority: The individual is selected by considering his charisma. If the individual has the charismatic characteristics of making other people do what he wants to get done, he is usually selected as the manager. Complete Controller. America’s Bookkeeping Experts

    Weber believed that one of these authorities exists in all organizations and that bureaucracy can enhance the productivity and efficiency of the company. On the other hand, Rosemary worked and defined the features of a bureaucratic organization. She put forward these points.

    1. Specialization: Unlike others, Rosemary focused on describing that the specialization must be of the job and not the employee. It means that when an individual leaves the position, the job must continue, and another individual must be hired to fill the vacancy.
    2. Hierarchy: The line of authority and management level must be clear.
    3. The system of Rules: A system of rules is present where all the people are aware of the rules and perform their jobs accordingly.
    4. Impersonal: All the rules and decisions must be taken using the impersonal decision-making authority following the pre-defined rules. Cubicle to Cloud virtual business

      Bureaucracy Growth

      Apart from the features, she defined the reasons and causes that give an organization’s bureaucracy growth. Bureaucracy does not exist from the beginning; therefore, these factors give birth to it.

      1. The growth of the organization
      2. Increase in the complexity of the work.
      3. Implementation of the scientific management principle.
      4. Equal and impartial treatment.

    In Conclusion

    Wow, the field of management has truly benefited from the insightful theories proposed by Max Weber and Rosemary Stewart! Their ideas have truly helped us understand the unique characteristics of bureaucracy within organizations and why it may be necessary in certain situations. It’s incredible to think about the numerous theorists who have contributed to our understanding of bureaucracy and its impact on organizations. Still, Weber and Stewart’s observations truly stand out as noteworthy and valuable.

    We hope this article has given you a new interest in understanding the importance of having the proper bureaucracy within your business.
    CorpNet. Start A New Business Now About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Download A Free Financial Toolkit