A bureaucratic organization is one with rigid and tight procedures, policies and constraints; and the company reacts with stringent controls as well as a reluctance to adapt or change. Bureaucracies are very organized with a high degree of formality in the way it operates. Organizational charts exist for every department, and everyone understands who is in charge and what his responsibilities are for every situation. Decisions are made through an organized process, and a strict command and control structure is present at all times.
Bureaucratic organizations are impersonal places to work. Individuals are valued by the tasks they perform, and these tasks are specific and detailed. Formal structures exist that limit individual and personal decisions, and policies allow for little deviation from the norm. Regulations are in place for every job title, and little creativity is allowed. Titles for positions are prevalent, and everyone is expected to behave according to company policy. Formality at all times is valued and strict discipline is essential for success.
Many layers of management are typical for a bureaucratic organization. With a pyramid in mind, the leader or president is at the top of the company, and all other departments cascade underneath that leader. Vice presidents report to the president or chief executive officer, and in turn, directors report to the vice presidents. Managers of departments are underneath the directors and these managers typically have numerous supervisors reporting to them. Finally, the workers in a bureaucratic organization report to the supervisors. Structure is important for a bureaucratic company.
In bureaucratic organizations, power is concentrated in the hands of a few, high-ranking managers. Decisions about company policy, personnel decisions and financial objectives are made by the highest ranking leaders. Procedures are in place that direct most decisions upward to these leaders where all important actions take place. Slowness in decision making is typical in bureaucratic companies, and hands-on management techniques apply at all levels. Micromanagement is common, and workers look to their supervisors for all decisions about their work and assignments.
Administrative procedures, rules and policies are found in all bureaucratic organizations. These procedures are so important that many employees carry the administrative title in their job descriptions. Carefully worded policies are crafted, updated, maintained and distributed to all associates, and compliance is mandated. Reference to these administrative procedures is frequent, and work is often defined by these policies. Interpreting these regulations is often a major job duty for managers, and staying in compliance at all times becomes an important part of job descriptions and performance reviews.
- "Management of Organizational Behavior"; Paul Hersey, et al.; 1982
- "Corporate Cultures"; Terrence E.Deal, et al.; 1982
- Busting Bureaucracy: The Eight Major Characteristics of the Bureaucratic Organization
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