Relevance of Bureaucratic Management Theory in Modern Organizations

The bureaucratic management theory, developed by Max Weber, has greatly impacted business organizations in the twentieth century. The theory emphasizes the importance of a clear hierarchy, impersonality, continuity, and expertise in organizational management. It also highlights the need for specialization and division of labor to ensure maximum efficiency. While some companies still follow these principles, others have adopted more modern approaches. Nevertheless, the bureaucratic management theory remains relevant in certain aspects, such as its emphasis on specialization and the importance of clear authority and responsibility.

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Management and Organization in Global Environment
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MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
Executive Summary
This report tries to explore various management theories from the 19th century and there
relevance in the current business world. The report is divided in three main parts where Taylor’s
Scientific Management Theory, Fayol’s Administrative Management Theory and Weber’s
Bureaucratic Management Theory have been discussed and analyzed. Every major analysis has
been supported with a subsection that tries to investigate these traditional theories’ relevance in
modern organizational practice in the global framework. By exploring the application of the
theories in organizational performance of various companies worldwide, the report tries to
identify their relevance and necessity. The final result highlights that many elements from the
theories are still being effectively used by many global companies in their organizational
practice.

MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
Table of Contents
Introduction......................................................................................................................................3
Findings from the Scientific management Theory by Taylor..........................................................3
Relevance of Taylor’s Scientific Management Theory in modern world...................................4
Findings from the Administrative Management Theory of Fayol...................................................5
Relevance of Fayol’s Administrative Management Theory in modern world............................6
Findings from Weber’s Bureaucratic theory of Management.........................................................7
Relevance of Bureaucratic Management Theory in the modern world.......................................8
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................11

MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
Introduction
The theories of Nineteenth and early Twentieth century are generally considered to be
classical theories related to organizational management. During 1930s and 40s the theories were
developed for progressing the human resources of the companies (Nhema, 2015). However
modern organizations see studying classical management theories to be waste of time but proper
research might indicate something different. The theories were developed after extensive
research and analysis; though the organizational structure has changes over the years but certain
elements of the structure are ever present, so do certain elements from the traditional
management theories.
Findings from the Scientific management Theory by Taylor
The scientific management theory develop by Frederick Taylor primarily focuses on the
labor force controlling in order to maximize the organizational productivity (Shafritz, Ott &
Jang, 2015). In his time and motion study he observed the workers and measured how much they
are producing within how much time. The observation led him to believe that much of the
resources are not being utilized properly and a scientific analysis is required in order to improve
the outcome. The principles of the management theory included incorporating science in the
organizational management, proper selection and effective training of the worker, equal division
of responsibility between management and workers (Taylor, 1914). He implemented certain
strategies like assembly lines, standardization and dividing labor for improving mass production.
The theory proved to be effective as it reduced the labor cost, removed unnecessary work and

MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
increased profit. The efficiency and control of the labor in modern organizations can be
maintained by the Taylorist management theory.
Relevance of Taylor’s Scientific Management Theory in modern world
Taylorism puts financial profit of the organization as its primary aim and often ignores
other issues as secondary and as a result it has been struggling to prove its relevance in the
modern business word. Though most organizations in the developed countries like USA,
Australia or other European countries do not practice scientific management theory at its original
form but that does not mean that it has been completely rejected by all organizations in their
management practice. The basic principles of this management theory are modified and with the
help of other management theories often used as effective organizational strategy (Waring,
2016). . Especially in situations where the labors are not meeting the requirement the
management implement this strategy.
In today’s world the management in the call centre business implements Taylorism
management theory effectively. The element from the theory is utilized by the business is by
monitoring constantly enhancing the work force. Here the workers work as mechanized beings
and do not enjoy any creative freedom as it is not required in the field. The management
leadership controls call centre employees and instructs them what exactly they need to do. The
call centre business in India implements this theoretical strategy exclusively (Sinha & Gabriel,
2016). On the other hand Toyota applies the element of equal division of labor and breaking
down assembly lines into stages to minimize the time wasted for waiting. The inconsistencies of
the employee productivity are thus eliminated by the management authority. The time and
motion management aspect is used in large organizational managements like McDonald

MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
(Babajana & Webber, 2015). In countries like China, India or Dubai management controls large
number of workers who have to satisfy even larger number of customers in short period of time.
Therefore the management controlled time and motion strategy has proven to be especially
effective in this organization.
Findings from the Administrative Management Theory of Fayol
Fayol’s Management Theory is directly in contrast with Taylor’s Scientific Management
theory. In 1916 he developed and published 14 principles in order to enhance the production
management (Ferdous, 2016). Instead of division of workers the work here issues concerning the
overall organization should be structured. The work division allows the employees to focus on
certain areas that help him to improve his work skills by gaining relevant experience. The
authority of the management must possess the power to give commands while keeping in mind
their responsibility. The discipline holds a significant role in the management as the leadership
and the employees both have to obey the organizational disciplines (Edward, 2017). The
hierarchical structure must not be confusing for the employees as they should have single
representative of the authority who will give them direct and clear guidance and unity of
direction will lead the teams through a coordinated process. The theory insists that a single
employee’s interest cannot be more important than others, not even the managers. The monitory
and other kind of remuneration plays significant role in the employee efficiency. Centralization
allows the employees to determine their role in the decision making process (de Oliveira et al.,
2015). The management must provide a clear vision about the employee’s position in the
organizational hierarchy. There should be an order in the management as the safe and clean
workplace ensures the productivity and employee engagement. The equity must be maintained in

MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
all the departments among all the employees. The managers though their personal planning
should ensure minimum employee turnover. The theory suggests that the employees must be
provided with necessary amount of freedom and creativity. The theory mentions the principle of
“Esprit de Corps” that is the organization’s promotion of unity and team spirit.
Relevance of Fayol’s Administrative Management Theory in modern world
Most companies that are operating successfully in the business world of today use
Fayol’s management principles in their organizations. Fayol’s management theory is used in the
administration of the developed world specifically in the USA and France. Fayol developed six
management functions like commercial, technical, financial, accounting, security and managerial
have been modified over time in order to fit the modern business world (Fayol, 2016). In every
organization the human resource and management leadership manage the employees by using
certain communication method. In the contemporary business world the employees play major
role in the organizational culture. A large organization like Google gives maximum importance
to its employees where they are provided with not only financial remuneration but also medical
benefits and family support as the organization believes that this would ensure employee
efficiency in the longer run (Haider et al., 2015). The theory has experienced modification and
up gradation in its applicability like the theory promotes equity and scalar chain system. The
more number of companies are promoting balance in their organizational hierarchy through
reducing the power of the authority and giving more strength to the employees.
In the organization Hell Pizza of New Zealand the application of Fayol’s Administrative
Theory can be identified (Parnell, 2013). The visibility of the scalar chain represents the
authorities from inside and outside and determines the labor division present within the

MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
organizational structure. The applied scalar chain allows the authority to maintain the command
unity and allows the employees to use their judgment and initiative in the organizational work
flow. Any employee from a specific department can approach the authority from other
department if necessary with the permission from his immediate leadership. The “Gang Plank”
method allows the employees to approach to authorities before the decisions have been made
(Yenen & Öztürk, 2014). The workers of the Hell Pizza are trained in specific areas that allow
the work load to be divided in multiple sections (Moger, 2017). A novice employee is trained in
a basic level and they are provided only half hour for specific job within the store but when they
are selected for a specific area like making the pizzas, they are allowed detail training with more
time. However in the festival time or in any busy day the work load is divided among all the
employees inside and outside the store, where someone from the fryer department takes the
orders from the customers and someone from the managerial department can deliver the orders.
Fayol’s division of work load can be found highly effective in the organizations.
Findings from Weber’s Bureaucratic theory of Management
Since its inception the Bureaucratic management theory developed by Max Weber has
influenced the western society and business greatly. Literary the bureaucracy is the authoritative
practice by the authority to control the mass in the society. The evolution of the organizational
management theories can be observed through the theories developed by Weber. His theory of
bureaucratic centralization has greatly impacted the business organizations of twentieth century
(Meisenbach & Jensen, 2017). According to him the modern capitalism’s emergence is closely
connected to the modern day bureaucracy. The capitalist society needs freedom of the market,
legal support, labor availability as necessary part of their existence. The predictability of the

MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
management’s judgment will ensure the industrial organization’s maximum use. Weber
explained several kinds of authority style in the organizational management. In the Traditional
authority the employees obey the authority’s orders out of respect for its previous existence. In
the Charismatic authority the leadership’s unique personal qualities makes the rule accepted.
Finally in the rational-legal authority the certain rules and procedures help the authority to
achieve specific goals.
Relevance of Bureaucratic Management Theory in the modern world
In the management practice Bureaucratic organization is closed and rigid. The
administration structure in this type consists of fixed hierarchy, impersonality, continuity and
expertise. The hierarchy helps the expansion of the organization. The knowledge about the
management hierarchy will enable them to climb the hierarchical steps. The hierarchy of
authority is significantly present in police or army. However in retail and other organizational
business apply this element of the theory effectively. In the general model of the hierarchy one
level is controlled by the immediate higher level. A specific position has certain job
responsibility and its own right. Each level of the hierarchy has definite set of responsibilities
and competence sphere. The technical competence becomes key driver in defining the key
responsibility of a level. However there are certain weaknesses as well like the theory does not
encourage the employees to take active participation in the decision making process. The clear
classification of the authority and its command runs the organizational activity successfully
(Lund, 2014). The leadership management possesses maximum control over the strategic
decisions. Few top level persons are involved in the decision making so the strategy designing
and implementing takes less time. The Bureaucratic management theory puts a lot of stress on

MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
specialization. The tasks are defined and divided in parts for individuals. Specialization allows
the employees to fulfill individual duties effectively.
Most companies today follow the principles of Weber management theory such as clearly
defining jobs for the people associated with the organization, maintaining definite authority,
following a standardized procedure by everyone, keeping the record meticulously and hiring
employees based on the specific qualifications required for the position. The division of labor is
already been discussed in the Taylorism which is adopted here by Weber. In any organizations
the definite written rules are being followed by every employee and the managers as well. The
records help the company to determine the employee performance and the records help the
employees to identify their weaknesses and company can come up with solutions. The
impersonality is important for the organizations which promotes the value of the position not the
person. Any organization is run by a strong leader however if the leader is being replaced or dies
another person with equal credibility will appointed in the role to run the business. Microsoft is a
company that practices the bureaucracy in its organizational structure (Daft, 2015). Windows is a
large software developing company where thousands of developers are working. Therefore the
hierarchical structure follows like the feature crew to team to major team to the vice president.
At every level the teams are provided with individual distinct source codes. Final change in the
management is decided by the top leadership.
Conclusion
From Taylorism to Fayolism to the management theory by Weber the business has
experienced various transformations in the theoretical world of the organization’s management
practice. Not all elements from the theories are applied by modern companies in their

MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
organizational practice but the management theories have not lost its relevance entirely. Certain
elements still have significant relevance in company’s management practice. The elements from
the theory by Taylor are contradicted by Fayol but elements from both of the theories can be
found in Weber. The synthesis of the elements also demonstrates the evolution of the
management theories in the western business world. The evolution also represents a journey
through which modern organizations find the relevance of the theories in their organizational
performance.

MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
Reference
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MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT