MBA and class notes

Friday, 3 August 2012

Evolution of management,- Classical theory of management-- Max Weber's thoughts on management called bureaucracy management.

Classical theory of management


Bureaucracy management is a stream of classical theory of management. Max Weber was the first of management theorists who were concerned the management structure with the sets of rule and regulations. Bureaucracy management depends upon administration devices. Max Weber presents the ideal organization structure. There are four major characteristics of organizational structure.-
  • Hierarchical positions
  • Rules of system
  • Division of  labour for specialization
  • Impersonal relationship

Advantage of bureaucracy management:
  • Hierarchy of authority.
  • Employment is based on the technical efficiency.
  • Eliminate managerial inconsistencies.
  • A well understood system.
  • Maintain the consistency of working.
  • Rules and regulation of the duties are followed by the employees.
  • Records are kept for future references.
  • People are given authority according to their position in organization.

Disadvantage of bureaucracy management:
  • Human resources are not tackled.
  • Inter personal relations are discarded.
  • It does not allow for personal growth and development.
  • It does not possess adequate.
  • Organization becomes static and change is not anticipated.
  • Difficult to keep co-ordination and communication between employees.
  • It is a “closed system”.

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