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Generic management tools by Gullick, Bureaucracy, Guidelines for Domestic…
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Bureaucracy
Definition :
1.Can be defined as an organization, whether publicly or privately owned.
2.Made up of several policymaking departments or units.
3.People who work in bureaucracies are informally known as bureaucrats.
German sociologist Max Weber was the first person to formally study bureaucracy and he mentioned it in his book in 1921 (Economy and Society)
Example :
- Hierarchical administrative structure of governments administration
- Administrative structure of private-sector businesses or other non-governmental organizations, such as colleges and hospitals
Advantages :
Job security
1) provides more job security than other organizational structures as long as its employees follow directions
2) Typically, if a worker does what he is told, abides by the rules and is accountable to his position, he can expect a steady salary, benefits & promotion
Qualified employee
1) Bureaucracies tend to demand employees with specialized educational backgrounds and expertise related to the agencies or departments to which they are assigned
2) Along with ongoing training, this expertise helps to ensure that the bureaucrats are able to carry out their tasks consistently and effectively
Disadvantages :
Reduce service productivity
1) The structure is inherently compact with rules and more policies and procedures can be added at any time, making workloads and roles more complicated.
Poor financial management
1) In a bureaucratic business system, typically, money is available for the current budget cycle only.
2) If it's not used, then expenditures will not be accounted for in the next budget cycle
3) This creates a culture of waste since people and departments will spend money so they can have it in their following year's budget.
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