Bureaucratic Theory of Management by Max Weber

Bureaucratic Theory by Max Weber

Bureaucratic Theory was developed by a German Sociologist and political economist Max Weber (1864-1920). According to him, bureaucracy is the most efficient form of organisation. The organisation has a well-defined line of authority. It has clear rules and regulations which are strictly followed.

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According to Max Weber, there are three types of power in an organisation :-

1. Traditional Power,
2. Charismatic Power, and
3. Bureaucratic Power Or Legal Power.

Features of Bureaucratic Organisation

The characteristics or features of Bureaucratic Organisation are as follows :-

1. There is a high degree of Division of Labour and Specialisation.
2. There is a well defined Hierarchy of Authority.
3. It follows the principle of Rationality, Objectively and Consistency.
4. There are Formal and Impersonal relations among the member of the organisation.
5. Interpersonal relations are based on positions and not on personalities.
6. There are well defined Rules and Regulations. There rules cover all the duties and rights of the employees. These rules must be strictly followed.
7. There are well defined Methods for all types of work.
8. Selection and Promotion is based on Technical qualifications.
9. Only Bureaucratic or legal power is given importance.

Criticism of Bureaucratic Organisation

Bureaucratic organisation is a very rigid type of organisation. It does not give importance to human relations. It is suitable for government organisations. It is also suitable for organisations where change is very slow. It is appropriate for static organisations.

Bureaucratic organisation is criticised because of the following reasons :-

1. Too much emphasis on rules and regulations. The rules and regulations are rigid and inflexible.
2. No importance is given to informal groups. Nowadays, informal groups play an important role in all business organisations.
3. Bureaucracy involves a lot of paper work. This results in lot of wastage of time, effort and money.
4. There will be unnecessary delay in decision-making due to formalities and rules.
5. Bureaucratic model may be suitable for government organisations. But it is not suitable for business organisations because business organisations believe in quick decision making and flexibility in procedures.
6. Too much importance is given to the technical qualifications of the employees for promotion and transfers. Dedication and commitment of the employee is not considered.
7. There is difficulty in coordination and communication.
8. There is limited scope for Human Resource (HR).