Bureaucratic and Entrepreneurial Leadership: Decision-Making Styles

This essay provides a detailed comparison of bureaucratic and entrepreneurial organizations, focusing on their distinct characteristics, advantages, and disadvantages. It delves into the hierarchical structure, formal rules, and specialized functions of bureaucratic organizations, highlighting their strengths in central planning and efficient execution, but also noting their inflexibility and potential for employee boredom. In contrast, the essay explores the dynamic nature of entrepreneurship, emphasizing motivation, risk-taking, and adaptability. While entrepreneurship offers freedom and potential for high earnings, it also demands significant time commitment and carries the risk of uncertainty. The core of the essay lies in comparing the decision-making processes within these two organizational structures, noting the centralized, top-down approach in bureaucracies versus the more agile and independent decision-making in entrepreneurial ventures. The essay concludes by discussing why individuals might choose bureaucratic options and how organizational decision-making can effectively shape and change the culture within an organization.

Running head: Advanced leadership and decision making 1
Advanced leadership and decision making
Student’s name
University affiliation

Advanced leadership and decision making 2
Introduction
A bureaucratic organization is a type of organization which follows a pyramid structure
that is from the top management for example from the chief executive officer of an organization
downward to junior subordinates (Farazmand, 2009). This type of an organization is highly
formal where every person in an organization understands his or her roles. For a bureaucratic
organization to have a full effect reporting matter a lot for example from downward levels junior
workers reports to the supervisors, supervisors then report to managers and the chain continues
up to the highest level where the vice president reports to the chief executive officer. The
communication follows that chain of command also where information is supposed to flow
downwards for example from the topmost level where vital decisions regarding the organization
are made and need to be communicated downwards for effective take of action (Van der Voet,
2014).
Characteristics of Bureaucracy or Bureaucratic Organization
A bureaucratic organization has various characteristics which include the following: A
bureaucratic organization is characterized by a formal hierarchical structure where a level from
above controls the below levels. The importance of being formal is that it enables a basis of
central planning and a platform where decisions are centrally made. A bureaucratic organization
is fully managed by rules where each type of control is made effective by giving certain rules
and regulations according to the decisions which are made at the topmost level of an
organization and need to be implemented by being executed. The lower levels hence must abide
as per the rules for effective execution of what is delegated (Sarangi & Slembrouck, 2014).

Advanced leadership and decision making 3
A bureaucratic organization has a mission which is characterized either by an up-focused
or an in-focused motive. An up-focused motive is a type of mission where an organization aim
and focus is to serve for example the board or the stockholders of an organization. An in-focused
motive, on the other hand, is a type of mission where an organization aim is to serve the
organization itself, for example, to realize high-profit margins, to gain or penetrate in the market
(Rasul & Rogger 2018). A bureaucratic organization operates by a functional speciality where
the work in an organization is done by specialists and workers are grouped and organized into
units which entail the skills which are hold by the given workers and the jobs they are supposed
to handle. The bureaucracy organization has an impersonal purpose where the overall purpose is
to treat everyone that pertains the organization equally, for example, the customers and
employees without being intimidated by any given individual differences (Johnson, 2015).
Upon employee hiring, a bureaucratic organization hires its employees according to the
skills and experience they hold and not according to any other way for example favouritism or
luck. In giving promotions to the officers the activity is formally done since the responsibilities
which are entitled to them in case goes wrong they are held accountable hence some factors for
example experience and skills has to be considered upon issuance of promotion. In a
bureaucratic organization payment of salaries is according to the pay-grade system that is
according to a given job group. A bureaucratic organization is unable to quickly adapt changing
conditions that affect it since it has to undergo a series of thorough decision making tabling
process from the topmost position before implementation of any policy (Sturdy, Wright &
Wylie, 2016)
Advantages of Bureaucracy

Advanced leadership and decision making 4
A bureaucratic organization has several pros which include the following: The central
authority which is involved in a bureaucratic organization is appropriate and effective upon
organizing since there a chain of command. In this way performance of workers in lower levels
is monitored and through strict rules and directives duties are carried out effectively and timely
finished (Ćwiklicki, 2015). A bureaucracy organization promotes the hiring of specialized
personnel since it advocates appointing of personnel who are furnished with skills and
knowledge. This helps in solving critical problems which may arise and handled by a given
competent individual.
A bureaucratic organization has no room for favouritism that is each employee is treated
equally with also the organization’s customers and no room for intimidation from any given
person. A bureaucracy organization advocates for a genuine promotion of personnel in an
organization where formal criteria, for example, one has to pass various exams for qualification
to climb a cooperate ladder which means that whoever is appointed has skills to manoeuvre the
job (Khan, 2017)
Disadvantages of Bureaucracy
A bureaucracy organization despite having a series of pros also have got several cons
which include: A bureaucracy organization may result in boredom among workers which may
affect productivity negatively. This may arise from workers performing similar duties as a
routine which may appear too demanding encouraging absenteeism among the personnel (Lim &
Lee 2015). A bureaucratic organization may lead to inefficiency where there is no aggressive
competition since the hiring and promotion process is based on knowledge and skills. Also when
one is hired works on specialized given tasks and cannot work outside his or her assigned
department and has fixed salary according to job grade.

Advanced leadership and decision making 5
The bureaucratic organization may result to passive and rule-based personnel where strict
rules are to be followed which seem to limit freedom of an individual to act on his or her own
because of the imposed restrictions (Dimock, 2018).
Decision making in Bureaucratic Organizations
Bureaucracy in an organization may have two outcomes that is it can create order and
trust while on the other hand may create distrust. Decision making in bureaucratic organization
falls under the topmost level of an organization where critical decisions regarding the
organization for example objectives and goals to be achieved for example the chief executive
officers and other senior heads. This heads of an organization must authorize and delegate to
subordinates who will ensure decisions and operations are effectively conducted in an ethical
manner (Rahim, 2017).
On large and complex organizations, levels of management are deep as there is a need to
make subordinate decisions making while in small organization levels are few in that top heads
and the stuff in an organization know each other. Levels of management can be determined by
the number employees a manager handles. Most bureaucratic organizations departments have
quite a number of senior staff who oversees the managers (Lu, 2018)
Characteristics of Entrepreneurship
Entrepreneurship involves the willingness to start and put in place management activities
on a new business opportunity identified which is associated with various kind of risks with a
driving motive of making a profit (Suddaby, Bruton, & Si, 2015)
Entrepreneurship is characterized with the following characteristics: Motivation and the
zeal one has that is a passion to do something as a routine without experiencing boredom and

Advanced leadership and decision making 6
getting tired but enjoys to the fullest and continue executing in lifetime. Risk taking that is one is
not afraid to take any risk considering whether that risk is worth the cost of one’s career together
with other factors for example money and time and the alternative one has if the identified
opportunity does not give the expected returns (Zhang, Wang & Huo, 2016).
Entrepreneurship is characterized by hard work for example self-belief and dedication
upon ones venture to defy odds which in turn makes one become successful. Entrepreneurship
has an ability of one being flexible about the market needs which in turn will lead to successful
business. Entrepreneurship encourages market knowledge where entrepreneurs know the market
fully, for example, identifying something which does not exist in the market and creates it or
improves an existing product for example through improving quality.
Entrepreneurship is associated with good money management for any venture to become
profitable since capital is limited and need to be effectively utilized. This can be achieved
through the present and future planning concerning finances and setting aside emergency cash.
Entrepreneurship is about raising a business from conception in which it requires effective
planning which requires having a business plan in place. Entrepreneurship is all about seeking
the right connections for example mentors with extensive networks and experience (Brenkert,
2017).
Advantages of Entrepreneurship
Entrepreneurship is associated with numerous pros which include the following:
Entrepreneurship gives sufficient freedom which allows one make his or her own decisions on
the business unlike when he or she is employed and has to follow employer guidelines.
Entrepreneurship allows one set his or her own earnings that is wage per day and profit which

Advanced leadership and decision making 7
one targets unlike when employed where mostly earnings are fixed or when not fixed does not go
beyond a certain range (Burns, 2016).
Entrepreneurship provides flexibility which allows an entrepreneur to fully schedule his
or her working hours and have time to give to other commitments, for example, spending time
with friends and relatives. Entrepreneurship workplace has a position in varying where not
necessary to work in an office where one can work for example while at home which greatly
helps in breaking the monotony of working in a confined place. Entrepreneurship provides with
an opportunity to change and make an impact in lives in various ways for example problem
solving, providing new and quality products that make an impact in daily living (Meyer, Neck &
Meeks, 2017).
Entrepreneurship equips one to become a business leader for example through evaluating
how one's business has contributed to economic growth for example number of job opportunities
one has created hence becoming a business leader to the society and economy as a whole.
Entrepreneurship is full of excitement which brings joy to an entrepreneur upon doing what he or
she enjoys the most where business is dynamic and continuous growth which keeps an
entrepreneur with a motive of continuous soaring to greater heights (Demil, Ricart & Zott, 2015)
Disadvantages of Entrepreneurship
Entrepreneurship has several cons regardless of having many pros which include the
following: Entrepreneurship requires huge dedication of time to the started business in order to
grow the business up to a maturity level where great aggressiveness is not needed where
flexibility in the workplace takes full effect. Entrepreneurship stresses for one to stay competitive
which may tend to be difficult to compete with other businesses which leave one with an

Advanced leadership and decision making 8
alternative of differentiating one's business from others in one’s business opportunity in order to
come up with a concrete customer base and realize targeted profits (Gielnik, Frese & Stark,
2015)
Entrepreneurship does not guarantee fully percent success despite making an
entrepreneur dreams come true which is not always in the case of employment. Sacrifice is
required to make one realize the desired dreams. Entrepreneurship is associated with unplanned
schedules which are unpredictable for example sometimes one may be forced to work for long
hours in order to attend urgent and pending matters.
Entrepreneurship is involved with an entrepreneur making his or her own decisions upon
the administration and running of a business which may turn being a burden which may be
associated with a lot of paperwork which can take a lot of time and energy. Entrepreneurship
may be associated with loneliness while making all the decision and being responsible for what
will unfold of the business that is success or failure. Entrepreneurship does not guarantee regular
salary which simply means doing away with a mentality of a regular paycheck and one has to
cope when the business is accelerating or slowing down (Romero & Valdez, 2016).
Decision making in Entrepreneurial Organizations
Decision making in an entrepreneurial organization is a vital activity which fully affects
the running and operation of an organization. It is, therefore, an entrepreneur responsibility to
have what is required for example the skills which will aid in coming up with sound and best
decisions to ensure success (Shepherd, Williams & Patzelt 2015).
An entrepreneurial organization can exploit opportunities based on how aware they are
with their customers and other factors, for example, their capability in management and level of

Advanced leadership and decision making 9
support from people like stakeholders which may help on the type of decision to make. An
entrepreneurial organization can be triggered to make firm decisions from the passion of work by
an entrepreneur and other factors, for example, non-work related excitement levels. An
entrepreneurial organization depending on an entrepreneur attitude towards income expected,
risk involved and amount of effort required may make decisions from this base (Camuffo,
Cordova & Gambardella, 2017)
An entrepreneurial organization can be affected upon the decisions to make upon the
environment of operation for example entrepreneurs in dynamic environments are less prone to
unexpected changes in their decision making while those in hostile environments are more prone
to unexpected changes in their decision making. Decision making in an entrepreneurial
organization can also be made according to the persistence of an entrepreneur when he or she has
had high investments in an organization, has few career options to chase and have recently
realized an achievement through success from the previous organizational success.
Entrepreneurial organization decision making may be influenced by factors for example
where there is stability in key success factors, where there is low competition and high industry
competence, especially where the target is to realize huge profits.
Why People choose ‘Bureaucratic options’ and how Organizational decision making
can Effectively Change the Culture within an Organization.
Bureaucratic options have been turned to by people that are the ones responsible for
decision making in an organization due to effective solutions and positive outcomes concerning
the running and operation of an organization.

Advanced leadership and decision making 10
Bureaucracy is involved with centrally decision making where major and complex
decisions are made at the top levels and communicated downwards. This helps in reducing
overlap of information between departments where each department may be making a decision.
This can help an organization effectively change the culture within it that is if there was an
overlap of information between departments which would not be an issue any more. Bureaucratic
option heavily relies on hiring personnel who are qualified to handle jobs in an organization for
example bureaucrats with skills and training. Upon embracing this by an organization in decision
making it will highly uphold a culture which does not give a room to favouritism which may
previously be a threat (O’Reilly, & Reed, 2011)
Bureaucratic option emphasizes the division of labor which is most preferably as it
increases efficiency due to continuous and routine of executing the similar job. An organizational
decision making regarding this can make an effective change which may build a culture of the
division of labor which may not be previously practised which in turn will lead to great
efficiency in job performance. The bureaucracy which is associated with central authority lures
many people in that a formal way of delegating roles is followed for example from high to low
levels. A decision made by an organization to embrace this type of authority upon delegation of
duties can greatly help in changing an organizational culture which might not be practising a
formal way of delegating duties (Schein, 2010)
People choose the bureaucratic option in that it heavily based on merit-based promotion
that is promoting the qualified ones after certifying the given conditions and criteria. An
organization therefore through this decision making can effectively establish a culture which is
not criticized in anyway for example nepotism. The bureaucratic option provides a job security
that is when an employee follows the given rules in his her working department. Through an

Advanced leadership and decision making 11
organization making this decision, a change of culture from where job security is not guaranteed
to a culture of where job security is guaranteed which comes with benefits to the employees, for
example, a steady salary and other benefits which include retirement pensions and health
insurance among others.
A bureaucratic option heavily emphasizes equality where negative vices for example
favouritism are not tolerated. An organization can make a decision against this vice hence
effectively promoting a culture within an organization which upholds equality. Bureaucracy is
most preferably as it can create prediction upon what is set to be achieved. This is made possible
by following rules set so as to realize objectives and targeted goals. An organization can embrace
the highlighted type of decision making which effectively develops a culture which enables to
predict where an organization is headed. Bureaucracy makes the process of merging and
acquisition easier as the organizations which are to merge are fully aware of the bureaucracy. An
organization working towards the requirements of bureaucracy can, therefore, uphold an
effective culture which even if a need arises to merge with other organizations the process will
not be hectic (Sursock, 2011).
Conclusion
In conclusion, the bureaucracy has turned out being an option where most people that is
those with the responsibility to make decisions in an organization for example managers and the
topmost personnel that is the board of directors and the chief executive officers. This is simply
due to a formal and a structured way which brings order in the performance of duties which in
turn an organization realizes the heavily discussed benefits.

Advanced leadership and decision making 12
References
Brenkert, G. G. (2017). Entrepreneurship, ethics , and the good society.
In Entrepreneurship (pp. 85-128).
Burns, P. (2016). Entrepreneurship and small business. Palgrave Macmillan Limited
Camuffo, A., Cordova, A., & Gambardella, A. (2017). A Scientific Approach to Entrepreneurial
Decision-Making: Evidence from a Randomized Control Trial.Routledge.
Ćwiklicki, M. (2015). Towards neo-bureaucracy: bureaucracy in contemporary public
management concepts. New Public Governance in the Visegrad Group (V4),
Wyd. Adam Marszałek, Toruń, 15-26.
Demil, B., Lecocq, X., Ricart, J. E., & Zott, C. (2015). Introduction to the SEJ special issue on
business models: business models within the domain of strategic
entrepreneurship. Strategic Entrepreneurship Journal, 9(1), 1-11.
Dimock, M. E. (2018). Administrative vitality: The conflict with bureaucracy. Routledge.
Farazmand, A. (2009). Bureaucracy and Administration. CRC Press.
Gielnik, M. M., Frese, M., & Stark, M. S. (2015). Planning and entrepreneurship. In The
Psychology of Planning in Organizations: Research and Applications (pp. 289-
311). Routledge, Taylor and Francis Group Boston, Massachusetts.

Advanced leadership and decision making 13
Johnson, T. (2015). The professions in the class structure. In Industrial Society (Routledge
Revivals) (pp. 93-110). Routledge.
Khan, M. (2017). Do the Advantages of the Weberian Bureaucracy Outweigh Its
Disadvantages?.
Lu, N. (2018). The dynamics of foreign-policy decisionmaking in China. Routledge.
Lim, D. Y., & Lee, Y. M. (2015). What Shared Mental Model Brings to Self-managed Teams:
Developing and Sustaining Team Effectiveness 1. International Information
Institute (Tokyo). Information, 18(11), 4599.
Meyer, G. D., Neck, H. M., & Meeks, M. D. (2017). The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset, 17-44.
O’Reilly, D., & Reed, M. (2011). The grit in the oyster: Professionalism, managerialism and
leaderism as discourses of UK public services modernization. Organization
studies, 32(8), 1079-1101.
Rasul, I., & Rogger, D. (2018). Management of bureaucrats and public service delivery:
Evidence from the nigerian civil service. The Economic Journal, 128(608), 413-
446.
Rahim, M. A. (2017). Managing conflict in organizations. Routledge.
Romero, M., & Valdez, Z. (2016). Introduction to the special issue: Intersectionality and
entrepreneurship. Ethnic and Racial Studies, 39(9), 1553-1565.
Sursock, A. (2011). Examining Quality Culture Part II: Processes and Tools-Participation,
Ownership and Bureaucracy. EUA Publications

Advanced leadership and decision making 14
Shepherd, D. A., Williams, T. A., & Patzelt, H. (2015). Thinking about entrepreneurial decision
making: Review and research agenda. Journal of management, 41(1), 11-46.
Schein, E. H. (2010). Organizational culture and leadership(Vol. 2). John Wiley & Sons.
Sturdy, A., Wright, C., & Wylie, N. (2016). Managers as consultants: The
hybridity and tensions of neo-bureaucratic management. Organization, 23(2),
184-205.
Sarangi, S., & Slembrouck, S. (2014). Language, bureaucracy and social control. Routledge
Suddaby, R., Bruton, G. D., & Si, S. X. (2015). Entrepreneurship through a
qualitative lens: Insights on the construction and/or discovery of entrepreneurial
opportunity. Journal of Business venturing, 30(1), 1-10.
Van der Voet, J. (2014). The effectiveness and specificity of change management in a public
organization: Transformational leadership and a bureaucratic organizational
structure. European Management Journal, 32(3), 373-382.
Zhang, X., Ma, X., Wang, Y., Li, X., & Huo, D. (2016). What drives the internationalization of
Chinese SMEs? The joint effects of international entrepreneurship characteristics,
network ties, and firm ownership. International Business Review, 25(2), 522-534.
.
.

Advanced leadership and decision making 15