Theories of Bureaucratic Organization
Bureaucracy is a term that describes an organization, or even a set of organizations, but it can also describe a way of organizing, or distributing power. Our bureaucracies are numerous and complicated, but there is actually method to their madness. The three most common theories follow along three different topics: rules, people, and tasks.
German sociologist Max Weber (VAY-ber) was among one of the first people to define boundaries and characteristics for bureaucratic organizations, focusing his theory of organization on rules. He saw bureaucracies as large and complex machines and saw every individual inside the machine as a part of it, such as a cog or a gear. Power rested upon what he called “rational-legal authority.” In this concept, the people accept that the organization has authority, or rather they accept the rules and regulations set forth by the organization.
Weber’s organizational theory is defined by four main traits. The first of these traits is a clear division of labor where the bureaucrats have specific tasks to handle. This is where our system gets standard operating procedures (SOP) from. The second is a hierarchical organization of authority, where lower offices are supervised by upper offices and there is someone in charge. The third of these traits is specialized jobs in where workers are hired for specific tasks and for their technical competence. The final trait is impersonal relationships, in which the bureaucracy is divorced from both politics and personal relationships.
The second organizational theory comes form Chester Barnard, focusing his theory on the people. According to him, the essence of a bureaucracy is that it involved conscious coordination of the activities of individuals. This is done so that the bureaucracy may reach a common goal. The risk with this, however, is a concept known as the principal-agent problem, in which the principal is the actor who asks the agent to carry out a task. The agent either has goals different from that of the principal and acts differently or has information the principal lacks and therefore acts outside the interests of the principal.
According to Barnard, leadership is essential to a bureaucracy. It is that leader’s job to secure coordination of the people in the organization. In this, incentives are sometimes used, or inducements that can be offered to employees to spur successful performance. While incentives usually consist of money, they can also be power, prestige, a sense of accomplishment, and a shared vision of important work.
The final theory comes from James Q. Wilson, who focused his theory on tasks. According to him, while people and rules matter, tasks are the most important thing about a bureaucracy. One of his main concerns was a bureaucracy’s ability or inability to observe two consequences: outputs and outcomes. Outputs are what bureaucratic operators do and outcomes are the changes in the world as a result of the outputs. When either of these two are difficult to observe, problems arise. When both of these problems are difficult to observe, effective management is nearly impossible. In order for management to be effective, Wilson says, both consequences must be visible.
