PDF: BUREAUCRACY - Ludwig von Mises Institute

BUREAUCRACY - Ludwig von Mises Institute

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THE terms bureaucrat, bureaucratic, and bureaucracy are clearly invectives. Nobody calls himself a bureaucrat or his own methods of management bureaucratic. These words are always applied with an opprobrious connotation. They always imply a disparaging criticism of persons, institutions, or procedures. Nobody doubts that bureaucracy is thoroughly bad and that it should not exist in a perfect world.


The abusive implication of the terms in question is not limited to America and other democratic countries. It is a universal phenomenon. Even in Prussia, the paragon of authoritarian government, nobody wanted to be called a bureaucrat. The Prussian king's wirklicher gehei.mer OberRegier1J,ngsrat was proud of his dignity and of the power that it bestowed. His conceit delighted in the reverence of his subordinates and of the populace. He was imbued with the idea of his own importance and infallibility. But he would have deemed it an impudent insult if somebody had the effrontery to call him a bureaucrat. He was, in his own opinion, not a bureaucrat but a civil servant, his Majesty's mandatory, a functionary of the State unswervingly attending day and night to the welfare of the nation.

Bureaucratic Theory by Max Weber

Bureaucratic Theory was developed by a German Sociologist and political economist Max Weber (1864-1920). According to him, bureaucracy is the most efficient form of organisation. The organisation has a well-defined line of authority. It has clear rules and regulations which are strictly followed.

According to Max Weber, there are three types of power in an organisation :-

1. Traditional Power,
2. Charismatic Power, and
3. Bureaucratic Power Or Legal Power.

Features of Bureaucratic Organisation

The characteristics or features of Bureaucratic Organisation are as follows :-

1. There is a high degree of Division of Labour and Specialisation.
2. There is a well defined Hierarchy of Authority.
3. It follows the principle of Rationality, Objectively and Consistency.
4. There are Formal and Impersonal relations among the member of the organisation.
5. Interpersonal relations are based on positions and not on personalities.
6. There are well defined Rules and Regulations. There rules cover all the duties and rights of th employees. These rules must be strictly followed.
7. There are well defined Methods for all types of work.
8. Selection and Promotion is based on Technical qualifications.
9. Only Bureaucratic or legal power is given importance.

Criticism of Bureaucratic Organisation

Bureaucratic organisation is a very rigid type of organisation. It does not give importance to human relations. It is suitable for government organisations. It is also suitable for organisations where change is very slow. It is appropriate for static organisations.
Bureaucratic organisation is criticised because of the following reasons :-

1. Too much emphasis on rules and regulations. The rules and regulations are rigid and inflexible.
2. No importance is given to informal groups. Nowadays, informal groups play an important role in all business organisations.
3. Bureaucracy involves a lot of paper work. This results in lot of wastage of time, effort and money.
4. There will be unnecessary delay in decision-making due to formalities and rules.
5. Bureaucratic model may be suitable for government organisations. But it is not suitable for business organisations because business organisations believe in quick decision making and flexibility in procedures.
6. Too much importance is given to the technical qualifications of the employees for promotion and transfers. Dedication and commitment of the employee is not considered.
7. There is difficulty in coordination and communication.
8. There is limited scope for Human Resource