Management Theories: Bureaucratic and Administrative Theory Report

This report provides a comprehensive analysis of bureaucratic and administrative management theories, focusing on the contributions of Max Weber and Henri Fayol. It critically examines the benefits and shortfalls of each theory, highlighting the advantages of specialization, structured roles, and comprehensive guidelines. The report also explores the practical application of these theories in contemporary organizations, emphasizing the principles of hierarchical authority, division of labor, and unity of command. Furthermore, it delves into how these theories benefit stakeholders and foster a positive workplace environment by promoting accountability, job security, and financial control. The conclusion summarizes the importance of these theories in guiding analytical practices and effective decision-making within organizations.

Bureaucratic and
Administrative theory

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Critically explain benefits/ shortfalls of these theories...............................................................1
Application of theories in the contemporary world....................................................................2
Analysis of theories.....................................................................................................................3
How theories benefits the stakeholder and workplace environment...........................................3
CONCLUSION................................................................................................................................4
REFERANCES................................................................................................................................5

INTRODUCTION
This analysis is conducted to examine the foundational theory of management in context
of multidisciplinary business. Scientific management theory was developed by F.W. Taylor at
the end of 19th century and it was applied at beginning of 20th century. Bureaucratic theory was
introduced by a German Sociologist and Political economist, Max Weber. According to him, this
theory focus on strictly implementation of rules and regulation as well as hierarchy system in
order to achieve maximum efficiency (Thompson, 2017). Bureaucratic theory was very
insightful because it consider organization as a part of broader society. Max Weber's bureaucratic
management theory includes six principles such as task specialisation, hierarchical of authority,
formal selection, rules and requirements, impersonal, career orientation. Administrative theory of
management was introduced by a scientist Henri Fayol. This theory is based on 14 principles of
management that serve as a guideline for decision making and management actions. These
principles are consider as a statements that are based on fundamental truth. Hanri Fayol has
established 14 principles of this theory such as division of work, authority and responsibility,
discipline, Unity of command, unity of direction, subordination of individual interest,
remuneration, centralization, scalar chain, order, equity, stability of tenure of personnel,
initiative, esprit de corps. Bureaucratic theory of management is useful in maintaining,
controlling as well as adjusting management process when ever necessary. These 14 principles of
administrative theory are very helpful in planning, management forecasting, decision making as
well as controlling organizational activities.
MAIN BODY
Critically explain benefits/ shortfalls of these theories.
Benefits and shortfalls of Bureaucratic theory is mention below.
Benefits: Bureaucratic theory is facilitates specialisation advantage by providing
specialized task to each and every member. It has created a proper structure which helps in
assigning duties and responsibility easily as well as creating reporting relationship within
organization (Dalton, 2017). This is very helpful in dealing with complex situations as it ensure
stability by predictability as well as structural framework.
Shortfalls: This theory is very rigid and inflexible as it includes many rules and
regulations. Strict rules discourages creativity and initiative which can be major reason for task
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failures. More importance is given to organization rules and regulation and individual goals as
well as needs are neglected. This theory includes proper documentation and paper work of each
and every decision which is a great waste of time, stationery and space.
Benefits and shortfalls of administrative theory is mention below.
Benefits: This theory is extremely comprehensive as a way to deal with management
techniques as it provide proper guidelines to managers and employees within organization.
Principles of administrative theory is very helpful in facilitating organizational structure so that
each and every task can be accomplished timely (Dan-Cohen, 2016). Fair compensation
motivates employees and they work with their full efficiency and capabilities.
Shortfalls: Many of the assumptions is not based on scientific test but on value
judgements which is a drawback of administrative theory. It is complete;y based on human
application and this theory is works on having harmony among people in order to create strong
management team. Reliance on certain type of organization and limited experience is a
disadvantage of administrative theory.
Application of theories in the contemporary world.
Organisations of whole world exercise bureaucratic theory in their operations.
Hierarchical of Authority principle to clearly define authority and responsibility of each position.
Tasks are also divided into simple and routines to different employees who are specialised in
their fields which guides following organisation to attain goals with specialisation. Through
these principles nowadays business enterprises recruiting personnel on basis of their technical
skills which acquired by training, education and experience (Rosenbloom, 2016). Rules and
regulations and other principles are formed to ensure uniformity and achievement of targets
effectively in current situations. All principles of bureaucratic theory are applied in organisations
to achieve targets and goals in effective manner.
In present world, organisations exercise principles of administrative theories by Henry
Fayol to achieve their targets and profits effectively. Principles such as division of work,
authority and responsibility and discipline guides employees of an enterprise to work in
discipline as work is divided as per their specialisation and knowledge areas. This will help
them to achieve personal and professional developments. To get work done in companies
management has a authority to give orders to their sub ordinates and its a responsibility of
employees to perform as per expectations. Through principle of unity of command and unity of
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direction employees in organisations in today's corporate life individual employee receives
orders from one manager and that answerable to that manager only and assists employees of a
team to work and perform all activities as per plan described by their superiors. When principle
subordination of individual interest is followed in an organisation all focus is diverted towards
achievement of targets and objectives of an enterprise, not individual goals (Caiden, 2017). Other
principles such as centralisation, scalar chain, order, equity, stability, initiative and Esprit de
corps motivate employees to work in order and they are treated equally in relation to tenure and
payments. It focuses that employees should be initiative in every field and must contribute in
development of culture.
Analysis of theories.
Max Weber has achieved his targets as principles of this theory are applied to each and
every organisation which guides organisations to achieve their targets. As in present day with
help of impersonality principle rules are applied to each and every employee working in
enterprise which reflect that there is no special treatment and favouritism. Principles such as
career orientation, work in hierarchy, work division, selection of employees formally and
application of rules and regulations guides organisations to perform their activities and smooth
functioning of their business processes.
Through the principles of Administrative theory, Henry Fayol achieved his targets and
successful as his principles are followed by organisations of entire world. As organisations are
providing monetary and non monetary remunerations, centralisation in delegation of authority,
equity for all, discipline at working place, stability in tenure and various attributes which are in
process in every organisation, this results in success of this theory (Im, 2014). Principles of
administrative theory helps an organisation in various ways, it assists that every material and
manpower should be at proper place or in order.
How theories benefits the stakeholder and workplace environment.
Bureaucratic theory and administrative theory is very important for stakeholder and
workplace. These theories are developed for providing guidance and direction to employees and
managers of organization so that they can complete their task efficiently and efficiently. Both of
these theories are helpful in achieve goals and objective of organization.
Benefits of Bureaucratic theory for stakeholder and workplace environment is mention
below: Bureaucratic theory is based on proper structure and rules which is very helpful in
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providing task and responsibility to each and every member of organization. Employees are
accountable for their task and completions of task timely. This will leads to create a positive
work environment in an organization as it decrease the chance of chaos and misunderstanding
related to task and work (Khorasani and Almasifard, 2017). It provide job security within
employees as well as equal chances to succeed in future. This motivates employees and they
work with their full potential and skills for benefit of organization.
Benefits of Administrative theory for stakeholder and workplace environment: This
theory is very helpful in maintaining a healthy work environment as well as control finance of
organization. Administrative theory provide 14 principles which are very helpful in controlling
spending, reducing waste and keeping finance of organization in good shape. Performance of
each and every employee can be identify easily and corrective measures can be taken which
leads to increase productivity of organization.
CONCLUSION
From the above report it has been summarised that theoretical framework is a set of
accepted beliefs that aid in guide analytical practices through certain principles that are tested.
On the basis of these practices an organisation or an individual can implement appropriate
principles in their working practices. As the Bureaucratic theory is defining appropriate
implementation of rules and regulations on the basis of strict criteria. Main objectives of this
theory is to enhance maximum efficiency with the help of systematic formation. It is an ideal
model that lays down the basic principles of bureaucracy for the effective implementation of
appropriate rules and business framework. On the other hand, 14 principle of management is
based on administrative practices that derived managerial decision making. Main objectives of
this theory is to analyse basic requirements of management and serve guidelines for effective
decision making.
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