New in Stock - Preliminary Exam Business Report Samples (Band 6 Exemplar)
The application of formal structures and systems of hierarchy to establish effective control over the operations of a firm. The creation of a set of rules, codes and regulations to guide organisational conduct in the most rational way possible.
The bureaucratic approach to management emphasises the ‘most rational’ way to set up an organisation to maximise production.
Based on ideas of Max Weber.
Requires the creation of a hierarchy of responsibilities, with a clear designation of roles and responsibilities into each specialised section.
By dividing labour into functional sections, a firm can minimise confusion and overlap. The command and control at the top of the structure can make the major strategic decisions.
Can result in the impersonal treatment of workers can (cog in machine).
A hierarchy is a structure of power. It clearly designates responsibility and authority to specific roles within an organisation.
Typically pyramid shaped, with large mass of workers with little responsibility and power.
Top-down communication emphasised.
Works well with Scientific Management.
Large organisations are broken up into divisions: typically marketing, operations, human resources, finance. The head of these departments then work together with the executive to make strategic decisions.
Hierarchies reduce complexity by creating clear structures of communication and responsibility. Without these structures, a firm would be chaos; objectives would not be coherent across the whole firm, the direction of the firm would be unclear and productivity would plummet.
Can result in poor communication from employees to management. The rigid structure and rules can limit creativity and the application of new ideas in a firm. The hierarchy can promote self-serving behaviours and conflict over promotions and titles.