Bureaucracy: An Analysis Of Michael Porter's Five Forces Model

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According to Weber (1946), the term bureaucracy is used to describe a hierarchical organizational structure where expert managers direct tasks assigned to qualified employees based on specific written rules and regulations (pp. 196-198). This describes are very rational and impersonal approach to management with clearly defined roles, formal record keeping, and one-size-fits-all rules (Daft 2013, p. 27). Weber identified the following dimensions as being necessary for a properly functioning organization: rules and procedures; specialization and division of labor; hierarchy of authority; technically qualified personnel; separate position from position holder; written communications and records (Daft, p.363). Although some people in modern …show more content…
He attributed this to “speed” and “precision” attained through the bureaucratic structure, which led to more efficient productivity. In Weber 's mind, this was the whole art of competition since he argued that proper business management “rests on increasing precision, steadiness and above all speed of operations.” However, despite the success of bureaucracy in the industrial age (Daft, p. 27), in modern society it is sometimes seen as hindrance to productivity and creativity (Smith 2016, p. 61). Many modern businesses have sought out other theories and techniques to gain competitive advantages. One such approach is Michael Porter 's Five Forces …show more content…
Certain organizations have an operational need for bureaucracy but they are also aware that they have to temper that approach with open systems thinking. Organizations such as UPS prove that it is possible to maintain operational rigidity while remaining flexible to the needs and benefits of employees. The key to using bureaucracy in modern society is to find a balance through realizing that “the success of bureaucracy in one function does not necessarily recommend its full application to all functions” (Smith, p.

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