The Bureaucratic Design

The term bureaucracy was coined by Max Weber to describe what he saw as the ideal kind of organization. The foundation of his bureaucratic guidelines was the creation of a formal and legitimate system of authority. That system he taught should lead to rational and efficient organizational activities. He said that:

•    managers should strive for strict division of labour and each position should be   staffed by an expert in that area, there should be a consistent set of rules that all employees must follow in performing their jobs (the rules must be impersonal and rigidly enforced),
•    there should be a clear chain of command
•  everyone should report to one and only one direct superior
•  communication should always follow this chain and never bypass individuals,
•    business should be conducted in an impersonal way (managers must maintain an appropriate social distance from their subordinates and not play favourites,
•    Advancement within the organization should be based on technical expertise and performance rather than seniority or favouritism,
•    Legal authority and power—authority and power rest in the institution of office. The power an individual holds is legitimised in the office and does not personally belong to him.

Over the years however, the term bureaucracy has come to connote red tape and slow hassle-ridden decision making. Bureaucratic approach to organization design may be appropriate when the environment of the organization is stable and simple. Many universities, hospitals and government agencies will have a bureaucratic flavour in them.