There is a lot of paperwork and red tape, which is the primary criticizing point of every bureaucratic organization. Rules and regulations can seem burdensome at times, but they are put in place to create best practices. This leadership style may be beneficial in highly regulated industries, and it can also be an effective management style in businesses that dont demand much originality or invention from staff. In other words, these set of leaders function based on official regulations fixed by . In 2018, this organizational structure is broadly criticized. This paper aims to examine the advantages and disadvantages of bureaucratic management in healthcare organizations, specifically how it affects healthcare practice. But the point is that this leadership style has been used in other parts of business and organizations worldwide, including religion, business, and politics. Structure sets the pace and framework for the functioning of the organization. Interest groups may provide valuable statistics to government agencies, and they are motivated to have their point of view heard. According to Weber, bureaucracy is a particular type of administrative structure developed through rational legal authority. Order custom essay Administrative Management Theory Advantages and Disadvantages with free plagiarism report. There must be incentives built into the bureaucracy to reward a worker who can complete a task in two hours with the same quality it takes someone to complete the task in the expected eight hours. Completing repetitive tasks may lead to expertise in a specific specialty, while also creating fewer cross-over opportunities if a labor shortage occurs. Jan 1978. 4. Bureaucratic theory advantages - Emphasises the importance of certain rules within an organisation, i.e., best practices . Officialism When systems show a lack of flexibility and initiative. The issue of time is the primary disadvantage of a bureaucracy. Division of Work: There is division of work on basis of specialization of jobs in bureaucratic organizations. A bureaucracy is built on the idea that what worked yesterday will also work today. Some additional disadvantages of this theory include: No specific style for different situations. Bureaucratic Management Theory. 2. Bureaucratic leadership is a type of leadership that requires a strong understanding of the organization and an ability to adapt to keep it running smoothly. During her tenure, she was also co-founder and editor of AccountingTomorrow, a blog focused on intergenerational workplace issues that is still thriving today. Companies must . If your work is supervised by another person, that is a bureaucratic structure. Bureaucracy is an administrative system designed to accomplish large-scale administrative tasks by systematically coordinating the work of many individuals. An example of such an iron triangle would be the American Association for Retired People (AARP), the House Subcommittee on Aging, and the Social Security Administration all working together to set government policy on Social Security. Accountability, predictability, structure and job security are just a few to mention. Sociologist Max Weber undertook the first study of bureaucracy in the early 1900s (Tomkins, 2005). Within the hierarchal structures of a bureaucracy, workers are continually promoted until they reach a position where theyre initially incompetent. 3. Qualities that officers in the Bureaucratic System should Have? Workers are permitted to use their creativity with bureaucratic leaders within the context of meeting their quotas. They rely on standardized policies and procedures to maintain control and uniformity. Examine their advantages and disadvantages to both management and workers of any organization. Officers in the bureaucratic administration must be strong-minded and bold to preserve the well-structured framework. There is a long chain of command under the bureaucratic form, which makes it challenging to predict or determine . This line represents bureaucratic leadership at its core. If it is not used, then the expenditures will not be accounted for in the next budget cycle. 3. What Extent Do Shareholders Control the Activities of a Corporation? Bureaucratic leaders prefer to have team members that have defined roles. This creates a culture of waste since people and departments will spend money so they can have it in their following year's budget. It creates rules and regulations which make it possible for multiple people to complete the same work in the same way. Health insurance, vacation time, and even a retirement pension would all be included as part of the security a bureaucracy can provide. Separation of jobs and relationships. Task specialization/division of labor This leadership style focuses on putting the best person in the best place for the job. 6. lmpersonal Relations: Superiors are formal in dealings with their subordinates. They must be dedicated to their profession. That is because the best practices for a project are based on the fastest, cheapest way to do things without compromising the quality of the final work. This is because rules and regulations provide clear instructions for job roles and expectations. Then the rules and regulations are set so that the people within that structure can move toward meeting that goal in a specific way. 8. He argued that trained incapacity resulting from over conformity eventually causes many bureaucracies to become dysfunctional. The classical theory of management dates back to the 19th century. A bureaucracy encourages praise because of the way a task is fulfilled instead of the quality of the fulfillment. The most visible of those bureaucracies include the Social Security Administration, the Internal Revenue Service, and the Veterans Benefits Administration. Google, founded in 1996 by Larry Page and Sergei Brin when they were students at Stanford, has evolved nearly continuously, from its origins as a formidably successful search engine, to so many different industries. 3. Answer: Criticism of Administrative Management Theory Henri Fayol's management principles and functions are used even today for managing the organisations. Classical Management theory has a clear structure for management. . Webber's Bureaucratic Model possesses the following characteristics: (1) Administration through well-defined rules. Weber wrote about Germany during the early 20th century, when developing capitalism was spawning more and more large businesses. Because rules and laws govern the actions of a worker within a bureaucracy, there is less freedom to act or make independent decisions. The establishment of work study, planning department, training of workers, and standardization requires more money. Whether a department has 1 worker or 100 workers, the rules in place create a shared efficiency where every worker produces similar results so that an outcome of any size can be achieved. When individuals at lower levels pursue personal objectives, the overall objectives of the organization may be neglected. With greater predictability comes more opportunities for personal growth for everyone. Definition and Examples, Complex multi-level administrative hierarchy, Standard set of formal rules or operating procedures, A chain of command that is hierarchical; the top bureaucrat has ultimate control, and authority flows from the top down, A clear division of labor in which every individual has a specialized job, Clearly written, well-established formal rules that all people in the organization follow, A clearly defined set of goals that all people in the organization strive toward. If workers are paid on a fixed salary and are asked to work extra hours, then their work productivity levels invariably decline. If not, then one team member can disrupt the productivity of an entire team. Secondly, the organization and its members are governed . Classical management theory creates bonds among managers . It has a structure which has limited forward movement. Collin gained his experience and understanding of the bureaucratic leadership style from there. As an example, consider a software firm. Bureaucratic leaders also tend to prefer rules, laws, or regulations that are rigid. With this kind of leadership, the work is based on the rules and regulation which keeps the need of the team and reinforce it. In some ways, bureaucratic leaders encourage wasting money instead of saving it. This means that friendships dont influence the outcomes that are created. Friendships dont influence the outcomes that are created. Bureaucracy 1. Examples of bureaucracies can be found everywhere. Such leaders give influence upon the compliance and hence they ensure that their team members follow the established guidelines precisely. Disadvantages of Bureaucracy: The following are the disadvantages of Bureaucracy:1. Two more companies that have thrived with a strong bureaucratic structure are Microsoft, first led by the company's founder, Bill Gates, and then by the successors he's selected; and, Berkshire Hathaway, founded in the 19th century and floundering in the 1960's until taken over by Warren Buffett, who changed everything, using his investment principles to lead the company from a valuation of $11.50 per share in 1965 to its 2018 value of $291,000 per share. The fundamental difference is that in autocratic leadership, the emphasis is on the leader, who is in charge of all major decisions. A huge staff must be managed, which necessitates the presence of a fearless leader. It is a leadership style which bases decisions on cost structures. In his 1921 book Economy and Society, Weber argued that a bureaucracy represented the most proficient form of organization, due to its possession of specialized expertise, certainty, continuity, and unity of purpose. From the C-suite, communication flows further downward in successive management levels, until it reaches the lowest levels of the hierarchy; often, these are the hourly workers that have limited opportunities to inform, criticize or feed information upward. So bureaucracy literally means "government with a small desk.". In order to claim our decision that his theory is still related to business management nowadays, Fayol's theory of management should be investigated, then identified limitations and . If circumstances change quickly, the structures of bureaucracy can make it difficult to adapt. Despite being viewed as a large system of rules and regulations, the bureaucratic culture requires responsibility and accountability. No, that's not a misprint. Although people with the right experience may be asked to fill multiple roles on occasion, the goal of this leadership style is to create siloed experts. This theory states that organization should implement a bureaucratic structure for deriving out the best efficiency. If a worker steps outside of those rules or laws without permission, even if it is the right thing to do, they may find themselves facing consequences, such as job termination or even imprisonment. It is easy to fit into a bureaucracy. It will be argued in the discussion that the approach is characterized by hierarchical distribution of power and . Leaders tend to stay in their positions until another position with a better salary opens up. The first characteristic of bureaucratic management theory is job specialization (Armstrong, 1998). Max Weber, a sociologist who also came up with transactional leadership, devised the philosophy underlying bureaucratic leadership. 5. Rules are designed to ensure the consistency in work performance. Often, the real players in government are the agency bureaucrats, the people behind the scenes. List of the Disadvantages of Bureaucratic Leadership. Organizations with a bureaucratic culture have strict policies for everything, which can slow down their operations and make communication difficult. It may also provide the cover to avoid responsibility for failures. It takes time for a bureaucracy to draft new rules and regulations to the new environments that have evolved. Harold had a great deal of success as the businesss CEO, and he is credited with helping the company grow into an international enterprise. Authority is centralized instead of spread out among employees. It creates a world where anyone can begin to maximize their productivity. Classical theory advocates specialization of labor, centralized leadership and decision making and using financial rewards to motivate workers. If one person leaves then some other occupies that place and the work does not suffer. He refers in his bureaucratic theory to the latter as a bureaucracy. If enough market evolutions take place before a company or government adapts to it, then it will become irrelevant. . It fosters a structure that doesnt create true productivity. Team members become specialists who stay in their position until the bureaucracy requires them to be in a leadership position. Bureaucratic leadership is a leadership style in which a hierarchy of power establishes management and decision-making norms. Even though he mostly depended on a certain structure to keep his firm running, he nonetheless encouraged his employees to be creative and imaginative. For example, the vice president of the research and development division may have a background in management and software engineering. It reduces the opportunity to quickly adapt to changing circumstances. In the 21st century which is the information age characterized by discontinuity, it is evident that the random people with irregular ideas are the one who creates different business models that generate significant returns compared to bureaucracy. When individuals at lower levels pursue personal objectives, the overall objectives of the organization may be neglected.

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