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Organizational theory also concerns understanding how groups of individuals behave, which may differ from the behavior of individuals. The theories of organizations include bureaucracy, rationalization (scientific management), and the division of labor. Each theory provides distinct advantages and disadvantages when applied.
Weber's theory of bureaucracy claims that it is extremely efficient, and even goes as far as to claim that bureaucracy is the most efficient form of organization. [20] Weber claimed that bureaucracies are necessary to ensure the continued functioning of society, which has become drastically more modern and complex in the past century. [ 21 ]
Hummel's most famous work was the book The Bureaucratic Experience which went through five editions (1977, 1982, 1987, 1994, and 2008). The book contends that bureaucracy is dehumanizing; for example, it deals with cases instead of people, and it focuses on efficiency at the expense of other human values. [8]
Bureaucratic structures have many levels of management ranging from senior executives to regional managers, all the way to department store managers. Since there are many levels, decision-making authority has to pass through more layers than flatter organizations. A bureaucratic organization has rigid and tight procedures, policies and constraints.
In his 1944 work Bureaucracy, the Austrian economist Ludwig von Mises compared bureaucratic management to profit management. Profit management, he argued, is the most effective method of organization when the services rendered may be checked by economic calculation of profit and loss.
Articles relating to organizational theory, which consists of many approaches to organizational analysis."Organizations" are defined as social units of people that are structured and managed to meet a need, or to pursue collective goals.
Philip Selznick (January 8, 1919 – June 12, 2010) was an American organizational theorist, a professor of sociology and law at the University of California, Berkeley.A noted author in organizational theory, sociology of law and public administration, Selznick's work was groundbreaking in several fields in such books as The Moral Commonwealth, TVA and the Grass Roots, and Leadership in ...
Rational-legal authority (also known as rational authority, legal authority, rational domination, legal domination, or bureaucratic authority) is a form of leadership in which the authority of an organization or a ruling regime is largely tied to legal rationality, legal legitimacy and bureaucracy.