Organisational Design

Bureaucracy 

No discussion of organisational design is complete without a thorough look at bureaucracy. Max Weber, a German Sociologist, argued that bureaucracy represented the ideal to which the design of organisations should proceed. He believed that rules and  regulations are necessary not only to make the organisation function but also to protect its members from favouritism. According to Weber, the bureaucratic organisation should have certain basic characteristics which are listed below : 

1. (a)  a division or specialisation of labour; 
2. (b)  a well-developed hierarchy; 
3. (c)  a system of procedures that defines and protects the rights and duties of employees; 
4. (d)  interpersonal relationships based on position rather than personality; and 
5. (e)  promotion and selection based on technical competence rather than on "knowing someone". 

Weber clearly stated the bureaucracy, with its well-defined rules and expertise, was an effective way of getting rid of organisational favoritism, arbitrary authority, pay offs, kick backs, and in competence. 

Limitations 

The "ideal bureaucracy" advocated by Weber is based on logic, order, and legitimate authority. Organisations adopting these bureaucratic features are supposed to be rational, fair, and efficient as a result. Notwithstanding these intentions, bureaucracies rarely function in the intended fashion. Today 'bureaucracy' has become associated with red tape, inefficiency, slowness, and waste. It is prone to the following limitations in practice : 

1. Since bureaucratic structures rely heavily on rules and procedures, it is extremely difficult to change formal procedures to adapt to new conditions as they arise. 
2. As the number of levels in the hierarchy of authority increases, persons at higher management levels can be increasingly out of touch with lower level operations. 
3. Over specialisation in bureaucratic structures can reduce employee initiative. Reduced creativity and problem-solving potential may result as people conform to 'established rules'  instead of reaching out in new directions. 

Threats to Bureaucracy 

In 1966, Warran Bennis, a well-known and provocative management theorist, published an article entitled "The coming Death of Bureaucracy". He listed four relevant threats to bureaucracy in a changing modem industrial world - rapid and unexpected change, growth in size of the organisations, complexity of modem technology, and a basically psychological threat springing from a change in managerial behaviour.