Question

To what extent do real world bureaucracies function as described in management theory? Use examples to illustrate your answer

Answer 1

A bureaucracy is more specific to specific to departments, having complex various levels of administrative hierarchy, more strict segmentation of authority and having standard rules to follow. Individuals who work in these kind of organizations are termed as bureaucrats. In the real world, it actually exists in federal government structure, in many colleges and also in most of the hospitals. For example, health maintenance organizations are the one of the example for bureaucracies function as per management theory where every individual deal with it on the day to day basis. Similarly, Insurance companies and financial lending companies are also termed as the same. However, the processes and principles are clearly defined but in practice sometime it fails. The hierarchical structure make sure on the “chain of command” followed by the bureaucrats. It helps in closely monitor the company’s performance and helps in decision making to deal with difficult situation. If we see the impersonal nature of bureaucracy is not favored by everyone as it strictly follows the rules and policies and offer equal chances to everyone. Therefore, it demands every employee to be expertise in the work assigned to them.