In: Economics
identify and discuss some of the problems that global organizations face when they use bureaucratic principles to manage their employees
Max Weber is the founder of Bureaucratic theory of Management.
Weber thought bureaucracy would result in the highest level of efficiency, rationality, and worker satisfaction. In fact, he felt that bureaucracy was so logical that it would transform all of society. Unfortunately, Weber did not anticipate that each of the bureaucratic characteristics could also have a negative result.
For example, In today's globalised world division of labor leads to specialized and highly skilled workers, but it also can lead to tedium and boredom. Formal rules and regulations lead to uniformity and predictability, but they also can lead to excessive procedures and “red tape.” In spite of its potential problems, some form of bureaucracy is the dominant form of most large organizations today. The “pyramid” organizational structure, with responsibility split into divisions, departments, and teams, is based on principles of bureaucracy. It is used by nearly all large corporations. Weber’s idea that hiring and promotion should be based on qualifications, not social standing, is built into U.S. labor laws.
Today, the term “bureaucracy” has taken on negative connotations. It is associated with excessive paperwork, apathy, unresponsiveness, and inflexibility. This is unfortunate, as Weber’s ideas have spread throughout the industrial world and transformed the way organizations are run and structured. Your school is probably structured as a bureaucracy. If you have shopped at a department store, it is a bureaucracy, and your city government is also a bureaucracy.