Page 37 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Unit 2: Evolution of Management Thought

2. The functionalists considered their principles to be universal in nature. But many of the Notes
principles have failed to deliver the desired results in certain situations.
3. The functional theorists did not consider the external environment of business.

4. Fayol overemphasized the intellectual side of management. He felt that management
should be formally taught, but he did not elaborate the nature and contents of management
education.

2.4 Bureaucracy

Max Weber (1864-1920), a German sociologist contributed his views on bureaucracy to the
management thought. His primary contribution includes his theory of authority structure and
his description of organisations based on the nature of authority relations within them.
Essentially, it was Weber’s contention that there are three types of legitimate authority which
are as follows:
1. Rational-legal authority: Obedience is owed to a legally established position or rank
within the hierarchy of a business, military unit, government, and so on.
2. Traditional authority: People obey a person because he belongs to certain class or occupies
a position traditionally recognized as possessing authority, such as a real family.

3. Charismatic authority: Obedience is based on the followers belief that a person has some
special power or appeal.
Weber’s theory ‘bureaucracy’ recognizes rational-legal authority as the most important type in
organisations. Under traditional authority, leaders are not chosen for their competence, an
charismatic authority is too emotional and irrational. A bureaucratic organisation which is
based on rational-legal authority display the following features:
1. Division of Work: There is a high degree of division of work at both the operative and
administrative levels. This leads to specialization of work.
2. Hierarchy of Positions: There is a hierarchy of authority in the organisation. Each lower
position is under the control of a higher one. Thus, there is unity of command. The
bureaucratic structure is hierarchical in nature. It is like a pyramid in which quantity of
authority increases as one moves up the ladder in the organisation.
3. Rules and Regulations: The rules, regulations and procedures are clearly laid down by the
top administration. Their benefits are as under:

(a) They standardize operations and decisions.
(b) They serve as receptacles of past learning.
(c) They protect incumbents and ensure equality of treatment.
4. Impersonal Conduct: There is impersonality of relationships among the organisational
members. The decisions are entirely guided by rules and regulations and are totally
impersonal. There is no room for emotions and sentiments in this type of structure.

5. Staffing: The personnel are employed by a contractual relationship between the employee
and employer. The tenure of service is governed by the rules and regulations of the
organisation. The employees get a salary every months which is based on the job they
handle and also the length of service.
6. Technical Competence: The bureaucrats are neither elected not inherited, but they are
appointed through selection and the basis of selection is their technical competence.
Promotions in bureaucracies are also based on technical qualifications and performance.

LOVELY PROFESSIONAL UNIVERSITY 29