BUREAUCRATIC

MANAGEMENT

THEORY

MAX WEBE

R

Max Weber (1864-1920) was a German academic and sociologist who provided another approach in the development of classical management theory.As a German academic, Weber was primarily interested in the reasons behind the employee’s actions and in why people who work an organization accept the authority of their superiors and comply with the rules of the

organization.

Legitimate Type of Authority by Max WeberWeber made a distinction between authority and power. According to Weber prower educes obedience though force or the threat of force which induces individuals to adhere to regulations. In contrast, legitimate

authority entails the individuals acquiesce the authority is exercised upon them by their superiors. Weber goes on to identify three types of legitimate authority.

Traditional authority – Traditional authority is readily accepted and unquestioned by individuals since it emanates from deeply set Customs and tradition. Traditional authority is found in tribes and monarchies.Charismatic authority – Charismatic authority is gained by those individuals who have gained the respect and trust of their followers. This type of authority is exercised by a charismatic leader in small and large group alike.

Rational-legal authority Rational-legal authority stems from the setup of an organization and the position held by the person in authority. Rational-legal authority is exercised within the stipulated rules and procedures of an organization.The Key Characteristic of a Bureaucracy

Weber coined the last type of authority with the name of a bureaucracy. The term bureaucracy in terms of an organization and management functions refers to the following six characteristics:

Management by rules A bureaucracy follows a consistent set of rules that control the functions of the organization. Management controls the lower levels of the organizations hierarchy by applying established rules in consistent and predictable manner.

Division of laborAuthority and responsibility

are clearly defined and officially sanctioned. Job descriptions are specified with responsibilities and line of authority. All employees have thus clearly defined rules in a system of authority and subordination.Formal hierarchy structure

An organization is organized into a hierarchy of authority and follows a clear chain of command. The hierarchical structure effectively delineates the lines of authority and the subordination of the lower levels to the upper levels of the hierarchical structure.

Personnel hired on grounds of technical competence

Appointment to a position within the organization is made on the grounds of

technical competence. Work is assigned based on the

experienced and competence of the individual.

Managers are salaried officialsA manager is a salaried official

and does own the administered unit. All

elements of a bureaucracy are defined with clearly defined

rules and responsibilities and are managed by trained and

experienced specialists.

Written documents All decisions rules and actions taken by the organization are formulated and recorded in writing. Written documents ensure that there is continuity of the organizations policies and procedure.

HENRY FAYOL

Henri Fayol (Istanbul, 29 July 1841–Paris, 19 November 1925) was a French mining engineer,

director of mines, who developed independent of the theory of Scientific Management, a general

theory of business administration also known as Fayolism.

 

Fayolism –is one of the first comprehensive statements of a general theory of management,

developed by Fayol. He has proposed that there are five

primary functions of management and 14 principles of management

: planning ,organizing, commanding, coordinating,

controlling

Controlling is described in the sense that a manager

must receive feedback about a process in order to make

necessary adjustments.

Principles of Management

1. Division of work. This principle is the same as Adam Smith's 'division of labour'. Specialization increases output by making employees more efficient. 2. Authority. Managers must be able to give orders. Authority gives them this right. Note that responsibility arises wherever authority is exercised.

3.Discipline. Employees must obey and respect the rules that govern the organization. Good discipline is the result of effective leadership, a clear understanding between management and workers regarding the organization's rules, and the judicious use of penalties for infractions of the rules.

4. Unity of command. Every employee should receive orders from only one superior.

5.Unity of direction. Each group of organizational activities that have the same objective should be directed by one manager using one plan. 6.Subordination of individual interests to the general interest. The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole.

7.Remuneration. Workers must be paid a fair wage for their services. 8.Centralization. Centralization refers to the degree to which subordinates are involved in decision making. Whether decision making is centralized (to management) or decentralized (to subordinates) is a question of proper proportion. The task is to find the optimum degree of centralization for each situation.

9.Scalar chain. The line of authority from top management to the lowest ranks represents the scalar chain. Communications should follow this chain. However, if following the chain creates delays, cross-communications can be allowed if agreed to by all parties and superiors are kept informed. 10. Order. People and materials should be in the right place at the right time.

11.Equity. Managers should be kind and fair to their subordinates. 12.Stability of tenure of personnel. High employee turnover is inefficient. Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies.

13.Initiative. Employees who are allowed to originate and carry out plans will exert high levels of effort. 14.Esprit de corps. Promoting team spirit will build harmony and unity within the organization.

James Mooney

Mooney believed management to be the technique of relating functions.

4 universal principles of organization.

1.coordination and synchronization of activities for the accomplishment of a goal can be accomplish in part through 2. functional effects, the performance of one’s job prescription3. scalar process organizes4. authority into hierarchy

LYNDALL URWICK

-Was an influential business consultant and thinker in the United Kingdom-He was a British army

officer turned theorist and consultant whose work integrated the ideas of the scientific management with the ideas of classical organization theory

• Urwick and Gulick edited a 1937 publication titled papers on the signs of administration which included articles and organization theory and public administration• They isolated the responsibilities of the chief executive and enumerated them according to the acronym POSDCORB, which stands for planning, organizing, staffing, directing, coordinating, reporting and budgeting.

• One of his main points was that well-managed, self-contained organizations or departments are nearly always headed by a single top manager such as CEO• Urwick believed that the activities necessary to achieve organizational goals should be group and assigned to individuals in an impersonal way, echoing partial detachment of Max Weber Bureaucracy

• Lyndall Urwick also wrote about the problems of managing large numbers of employees , identified multiple levels of supervisory management, and used a formula to determine the minimum and maximum number of subordinates a manager can effectively supervise. His work was an important step in synthesizing the principles of scientific management with the thinking of Max Weber and Henry Fayol

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