Managing People in Organisations
Bureaucratic and Non-Bureaucratic Forms Organizations
Table of Contents
TOC o “1-3” h z u Executive Summary PAGEREF _Toc423524193 h 3Introduction PAGEREF _Toc423524194 h 3De- Bureaucratic Leadership PAGEREF _Toc423524195 h 4Body PAGEREF _Toc423524196 h 5Characteristics of bureaucratic administration. PAGEREF _Toc423524197 h 5Permanent formal duties PAGEREF _Toc423524198 h 5The hierarchy of power or authority PAGEREF _Toc423524199 h 5Technical expertise PAGEREF _Toc423524200 h 6Structure of rules PAGEREF _Toc423524201 h 6Written documentation PAGEREF _Toc423524202 h 7Inability to adopt changes quickly PAGEREF _Toc423524203 h 7Concentration of power at the top PAGEREF _Toc423524204 h 7Organized decisions PAGEREF _Toc423524205 h 8An organized salary system PAGEREF _Toc423524206 h 8Examples of Bureaucratic Organizations PAGEREF _Toc423524207 h 8Company A PAGEREF _Toc423524208 h 8A Brief executive summary of Company A. PAGEREF _Toc423524209 h 8Mission, Vision, and Values PAGEREF _Toc423524210 h 9Company A winning culture PAGEREF _Toc423524211 h 10Living the Company’s values PAGEREF _Toc423524212 h 10Organizational and Organizational Effectiveness PAGEREF _Toc423524213 h 11Organizational Design PAGEREF _Toc423524214 h 12Power flow in the company’s organizational structure PAGEREF _Toc423524215 h 13Disadvantages of a bureaucratic power structure PAGEREF _Toc423524216 h 13Advantages of a decentralized or non-bureaucratic leadership PAGEREF _Toc423524217 h 14Disadvantages of decentralized or non-bureaucratic leadership or management PAGEREF _Toc423524218 h 15Company B PAGEREF _Toc423524219 h 15Company C PAGEREF _Toc423524220 h 16Company C corporate structure PAGEREF _Toc423524221 h 16Conclusion PAGEREF _Toc423524222 h 18References PAGEREF _Toc423524223 h 20
Bureaucratic and Non-Bureaucratic Forms Organizations
Executive SummaryThe bureaucratic form of management/ leadership is witnessed in many government agencies. It entails leadership within hierarchical organizations. However, this kind of management has been a topic of major concern for most scholars. This style of leadership has two defining features. First, the bureaucratic agencies are public because they are mostly government agencies. They are supposed to be implemented on a continuous basis. Bureaucratic are based on statutes enacted by the parliament. It is, therefore, a delegated authority (Matis, C. (2014).
Secondly, bureaucratic agencies govern multiples of citizens whose interests keep on varying from day to day. As a result of this, this form of leadership is said to be an independent type of leadership. That is, it has the power to lead and direct its subjects at will. To understand this kind of management, let us consider some examples of these three companies: A, B and C.
IntroductionBureaucratic leadership is the most widespread systems of management in today’s world. In this assignment, we will explore the main theories of bureaucratic leadership. It will be explained using examples. The paper will also look at the advantages and disadvantages associated with this type of management.
Bureaucratic leadership is defined as a form of leadership built upon permanent formal responsibilities under a ladder of power, relating a system of rules for the management and decision making. This style of leadership can be advantageous in highly regulated lines of business. It can also be useful in companies that do not require employees’ creativity and innovation.
A social equality model has little to say about the structure of public government. Democracy refers to an equal community characterized by self- rule of the citizens. In a democratic governance, the electorate has the final say on how the society is organized and governed. Workplace democracy is an area of primary concern for scholars. Workplace democracy means that employees should have a say on some issues in the organization.
De- Bureaucratic LeadershipThe campaign for de-bureaucratic started the early nineteen seventies. Since then, the campaign has been on widening in international organizations and democratic states. The campaign aims at revolutionizing leadership. It focuses on shifting administration and government through bureaucracies to competitive and participatory leadership that is the foundation of de- bureaucratic leadership. The disapproval of rigid structure, the principles used to establish its letdowns, and the credited consequences of non-bureaucratic leadership have varied (Siebers, H. (2009).
The non- bureaucratic administration aims at making civic government more transparent and more receptive to citizens’ anticipations and anxieties by encouraging straight involvement in running processes of both the private and public sectors. The transformation struggles depict managerial amendment as part of reconsidering and reorganizing the power equilibrium between organizations based on a weakening confidence in institutions of the free rule. These changes deal with provided consequences/ results rather formal regulations and calls for the need of counter expertise to organizational management.
BodyThese contain the central concepts used to discuss the bureaucratic form of leadership.
Characteristics of bureaucratic administration.The following are the features of bureaucratic administration:
Permanent formal dutiesAll executive and supervision duties are fragmented down into perpetual bureaus/ agencies that authorize precise ranks of power, responsibility, and accountability. Using an example of a production company like, let us look at A. The company’s structure is broken down into divisions such as research and development, production, marketing, distribution, and administration. It is the same case with other production companies like B and C.
The hierarchy of power or authorityRanks in the business are organized in order where lower level employees are accountable to under the direction of their seniors, and, in this case, the managers. In our examples above, their various departmental managers oversee the employees in each department. For example, in the production department, the production managers supervises the employees in this department.
In the marketing department is in charge and same with all the other departments. These departmental heads are in turn answerable to the CEO. The CEO takes his orders from the board of directors. The board of directors are the most senior in an organizational structure and represent the owners/ shareholders of the company. It shows how power is distributed in these enterprises. It displays the hierarchy of authority from top to bottom.
Technical expertiseA particular level of skill is required in this style of leadership. Managers are recruited on a merit basis. It is done to make sure that those given management roles carry out their functions as expected. In our example of a production company, the CEO has maybe required to have a proper understanding production engineering and processes and also management knowledge.
Structure of rulesThis form of leadership is based on a system of interactive rules and procedural guidelines. Interactive guidelines define the space of a manager’s interactive conduct and limit his behavior. Procedural/ technical guidelines on the other hand control how duties are to be executed. Procedural guidelines also give a direction on how decisions should be made and implemented. For example, the production managers, marketing managers, senior accountants and so on can only be subject to interactive guidelines that permit them to manage their various departments.
A production manager is not allowed to direct the activities of the employees in the marketing department. In this case, the marketing manager cannot control the activities of the employees in the production department. The same argument should also apply to all the other departments. Departmental heads operate within certain procedural guidelines that require them to act within a formal procedure when dealing with the other departments. For example, a formal process should be followed when requesting for funds. There are also company policies that guide the employees in a real mode of conduct.
Written documentationThe organization preserves on paper registers of all rules, resolutions, and governmental actions. These records act as a source of reference for both employees and the management. The records also promote accountability among the various departments in an organization.
From our examples above, the CEO may decide to relieve an employee of their duties. To do this, he must get a document for the human resource department which will guide his decision. The material obtained from the human resource department should clearly indicate the reasons for the discharge. It should also clearly show that the CEO followed all the company procedures in discharging the employee of his/ her duties. The document should be signed by the employee and the CEO and then stored in the human resource department.
Inability to adopt changes quicklyBureaucratic leadership is always non-receptive to changes in the management environment. It might be due to unwillingness on the part of the management, the employees or due to inadequate internal structures that do not allow changes.
Concentration of power at the topIn a bureaucratic style of leadership, power is concentrated to a few high profile managers. These managers decide on the future of the organization. They come up with decisions and policies that are passed down the profile to the subordinate employees. The juniors just implement the decisions made by the few with powers. It can be a source of resentment and thus the need for junior involvement in the decision-making process (Bozeman, B., & Rainey, H. G. (1998).
Organized decisionsThe decisions the managers make are binding to all employees and thus the need for a coordinated manner of coming up with decisions. For example, company B decisions are made by the vice president of the production department and are monitored by the board of directors because in the long run they can affect the company’s image. If a CEO decides promote or demote a certain employee, this should be done with the provisions of the company’s employment guideline. It is because if anything happens and the image of the company is tempered with, then the officers concerned will be held responsible.
An organized salary system In a bureaucratic leadership, wages/ remunerations are made on the basis of particular job grading. These classifications of employees allow fairness in the remuneration service. Those with the highest job groups are paid more allowances than the employees with a lower job group esilkagit, K. (2004).
Examples of Bureaucratic OrganizationsModern bureaucracies in most democratic countries like the United States of America include motor vehicle departments, prisons, police departments and colleges and universities. For clarity, let us consider our three companies: B, C, and A. We shall the management structure of these enterprises.
Company AA Brief executive summary of Company ACompany A is a beverage company that manufactures, distributes, and markets non-alcoholic drinks. The company is popularly remembered for its flagship products in the beverages market.
Mission, Vision, and ValuesThe company’s mission, vision declarations and its fundamental values can be summarized as:
Mission: the company’s mission is endurance. It states the objectives or purpose of the company and serves as a measurement standard for better performance and decision making. Some of its core mission activities include:
To energize people all over the world
To stir instants of cheerfulness and pleasure
To build value and make a transformation
Vision: the vision of the company is the one that guides its every step to ensure that it fulfills its mission as a global entity and brand. It declares what the company desires to achieve to assure the owners of a perpetual growth and sustenance (Esilkagit, K. (2004). The major visions of the enterprise can be summarized as follows:
To be a high employment destination for people with great inspiration for self -growth and development
Range: to give the whole world a range of superiority drinks that fulfill people’s needs and desires.
Partners: to create and nurture a winning network of customers and suppliers
The company aims at creating a mutual and enduring value among its major partners. In this case, partners refer to the company’s staff, customers, and its suppliers.
Planet: to instill good citizenship among its partners by helping them to come up with sustainable developments in the society its rules
It is through corporate social responsibility which means giving back to the community.
Profit: to ensure perpetual rewards to the shareholders in terms of benefits
Productivity: to be the leading manufacturing, distribution and marketing company all over the globe.
Company A winning cultureIt defines the attributes and behaviors required to make the company’s vision a reality.
Living the Company’s valuesThe company’s values are used as a guideline for the overall actions of the company in the face of the whole world. It is done in the following ways:
Leadership: this according to the company policies entails the ability, urge and courage to the world a better place through impacting the process of influencing positive leadership to the world.
Collaboration: the company partners with its clients all over the world to make the whole world a better place to live
Integrity: the company inspires honesty and trustworthy in all its employees in all the five continents. It is spread to other sectors of the economy leading to its growth.
There is accountability. Ability to promote transparency among its staff. It is achieved through the company’s slogan that states that “if it is to be, it is up to me.”
Passion: this refers to the company’s commitment to making the world a better place.
There is Quality: to be a leading entity in quality products. Firm A has mastered the art of sound quality over the years, and that’s why it is the world’s leading beverage company with more than four hundred quality brands (Ogbonna, E., & Harris, L. C. (2003).
Organizational and Organizational EffectivenessIt explains why the company has monopolized the market for over hundred and twenty-five years. It has been aided by the enterprise’s organizational structure. The company uses a structure that allows easy adaptability to changes in the market environment. The focus of the business is to be a leading global entity in beverage production and distribution. A close look at the company’s structure (Alday, M. Á., & Amigo, M. C. (2014).
Company A employs separate global division organization structure. It means that its worldwide staffs function independently without links from the central office. It has established various units in all over the world. Each continental group has a vice president in charge of all the operations carried out in the department. The functions of the vice president of each division are divided into activities such as human resource department, research or innovation, and development Center or department, marketing and civic affairs and communications department. Research and innovation and commercialization departments are considered to be the most relevant sectors of the company.
The structure of the company focuses on promoting its brand name all over the world and on inventing new markets. The company’s high-profile managers have an experience of almost all the departments in the enterprise. It is because most of them have worked in all the departments. It is facilitated by employee rotation within the organization structure.
Organizational DesignDue to rapid changes in the market environment, the company adopted a decentralized management structure in the nineteen nineties. The structure contains two distinct functions that are bottling and corporate. These are further subdivided into divisions based on regions or countries.
However, some specific functions of the company were not decentralized. These include finance functions, human resource functions, innovations, marketing, and strategy and overall planning of the enterprise. These features remained centralized in the head office. Some of these functions, however, take place at junior levels in each of the division. Company A operates on five continents.
The division in each continent has vice presidents who control the various subdivisions grouped based on different regions and also make a decision in their branches. The organization uses the following structure. From the above description, it is clear that the enterprise’s decisions are made at the top then an implementation is done at the lower level or divisions. In some rare cases, the company can use composite participatory instruments in its operations. Direct meetings are regularly held at the lower levels so as to involve the employees. Distant meetings are also held through teleconferencing (Bieberstein, N., Bose, S., Walker, L., & Lynch, A. (2005).
Power flow in the company’s organizational structureCompany A has an employee sum of ninety-four thousand and eight hundred. These workers are organized in a hierarchy of several levels. For instance, the head of the operational division in Canada reports to the president and COO of the North American Group. This president in North American Group then reports to the Chief Finance Officer. The Chief Finance Officer then submits his report to the General Counsel, who then reports to the Chief Executive Officer. The top Executive Officer reports to the Board of Directors. The flow of authority and power to make decisions define the bureaucratic structure (Fleenor, J. W. (1995).
Disadvantages of a bureaucratic power structureThere is communication breakdown or failure. It is caused by the long chain of command in the company. It might lead to other problems including poor performance.
Poor decision making. Because of the long chain of information flow, the original version of data or information may be lost or tampered. It will lead to poor decisions because the decisions will be based on questionable data.
There is a lack of clear goals and lack of motivation among employees. Because of long bureaucracies, the management may lose focus, and this might lead to the implementation of unclear objectives.
Advantages of a decentralized or non-bureaucratic leadershipIt has helped the company to incorporate employee growth and development into its standardization agenda. It has led to employee motivation and thus a reduced rate of employee turnover.
As a result of reduced employee turnover, the performance of the company was boosted. It was witnessed by the general growth of the enterprise. It gave value to the investors’ money.
There is employee flexibility or elasticity. This move works like a motivation to the employees.
The can predict its operations soon because of zero employee turnover.
There is increased employee discipline because the employees feel like a part of the management.
There is increased market flexibility. Flexibility is an important component of the company and needs to be cared. Through decentralization, the vice presidents of every division can make fast decisions to cope up with emerging trends in the market.
It allows the marketing departments in each section to come up with specific mottos for each market. It is because a standard slogan might not be applicable in each market due to the vast differences between the markets (Lam, Y. L. J. (2005).
Cost effective. Bureaucracy cuts down on costs of operations of the company. In a bureaucratic governance, there is a centralized memory of important documents and files. It saves on time as information can easily be retrieved when a need arises.
Disadvantages of decentralized or non-bureaucratic leadership or managementThere are communication problems. In this structure, communication problems or breakdown may arise. It may be as a result of adverse judgments by a section of some divisions towards the rest and language barrier among other causes.
There is unnecessary competition. This structure causes unnecessary competitions among divisional heads. It leads to lack of coordination among employees.
Company BFirm B was invented in the year eighteen ninety-eight, several years after the incorporation of its rival company A. The brand image of B commands a lower audience or market compared to that of A. Company B is a beverage company that produces, distributes and markets soft drinks. The company employs a structure similar to that of its rival company A (McCready, A. D. (2008). It incorporates both bureaucratic and non-bureaucratic or decentralized and centralized management. There are many advantages that are associated with this company. Significant individuals in the organizational structure include Chief Executive Officer and President, directors and non- executive directors among others.
The company pride of an employee total of about five thousand, six hundred and fifty-six. A report by one of the senior employees in the enterprise, there are five levels of multinational or international developments. These include:
The sellers and distributors
The local partners
Establishment of foreign branches and operations
Implementers of financial decisions
Contributors to financial decisions
The company adopts both the bureaucratic and the non-bureaucratic organization structure. Bureaucratic structure helps in management by ensuring that subordinates are answerable to their seniors. This ensures that weaknesses from lower levels are detected, and modifications are made before implementations. On the other hand, non-bureaucratic organizational structure plays a significant role in the management. It helps in the management by ensuring that all personnel’s are involved and consulted during decision-making process. As a result, the ultimate decision is a product of all members in the business.
There is a massive change in the market where new producers are entering the market with a clap of thunder. As new traders get into the market, stiff competition is generated in the beverage market. To sustain the market share initially owned by company B in operation. The enterprise must understand the current trends in the market and devise strategies that will help it fight efficiently with new entrants. These strategies are the ones that assist the business prepare for tomorrow.
Company visions, missions, and values
Mission, the success of the enterprise is based on its mission .it serves as the metrics that defines the business purpose and the reference point for the entity decisions. For instance, our company have the following mission; to refresh the world by creating value and making a difference. The firm also aims at providing ultimate satisfaction to consumers of their products.
Vision, these serves as the framework towards the achievement of the entity goals. The visions of the business include;
Customer satisfaction, the entity aims at delivering products that inspire moments of happiness to their customers wherever they are enjoying.
Portfolio, here the company aims at creating a portfolio that meets all the products specifications.
Profit, the company management strive to maximize the long-term returns to shareholders.
It’s what defines the strategies, and behaviors that boost the company competitive ability in the industry. The company has maintained a swift response to changes .it has also maintained accountability for its actions and inactions. Besides, it strikes a balance between its short-term and long-term risks and benefits. The company also respect its rivals so that they can mutually succeed together.
These are the codes of conduct that govern how the business conduct its activities. They include;
An integrity that requires the business to operate in a straightforward manner
Collaboration helps the business to achieve its collective gains.
Accountability of the entity on whatever it delivers to consumers.
Quality provision that ensure the market is supplied with quality products
Diversity, this ensures that products of the enterprise are all inclusive to meet all customers’ desires.
To focus effectively on the market the company has maintained the following elements;
Been insatiably inquisitive of the rival actions
Focusing on efficient operation of the market
Walking into the market, listening and observing reactions of the customers
Focusing on the tastes and preferences of the customers
Company B operates in more than four hundred countries. To serve the worldwide market efficiently, B organized all its operations into four functional units. These sections work together to ensure that the firm maintains its competitive advantage. The company uses geographical business structure and division to run its activities all over the world. It adopts this structure so as to be able to meet the market demands of each geographical segment differently from the rest (Smith, K. J., & Rubenson, G. C. (2005).
Company CCompany C is a holding company based in East Africa states. An indigenous company based in Kenya by two white settlers established the company in nineteen twenty-two. It moved to other east African countries in nineteen thirty-five as with a different name. It is what later led to the merging of the two companies to increase their sales and profits and solve issues in management. It produces or manufactures branded alcoholic drinks and non-alcoholic beverages.
The company also distributes and markets its branded products in outside East Africa. The company has many brands that are distributed worldwide. This company exports its branded products to other countries in Europe which comprise of states like Asia, America, and Australia. The distribution channels for company C products are based on management decisions that are mainly made at branches level. The delegation of functions by the head office helps design the bureaucratic structure. By the look of things, this techniques has enhanced achievement of goals and objectives by company (Borangic, D., Ph.D. (2013).
Company C corporate structureThe following are the key persons in the company:
The managing director; who is the overall comptroller of decisions in the whole organizational structure.
Deputy managing director company C International
Firm director in charge of ethics control and compliance
Managing directors; who are located in various branches
Group corporate relations manager who articulates the decision made by the top management
The company incorporates both decentralized and centralized management. It also uses the geographical division structure for easy management. However, the company advocates for independent decision making at lower levels. That is, in its subsidiary companies. The decentralized functions are those related to production and marketing. The human resource functions and financial functions are centralized in the parent company in one of the East Africa states like Kenya and Sudan (Aypay, A. (2001).
It is done to safeguard the financial and human resources of the business that is the most significant resources of the enterprise. Each branch has a managing director in charge of all the operations of the department. Departmental heads in each branch are answerable to the managing director of the department that is also a member of the board of directors. The various advantages and disadvantages of these styles of leadership and management are discussed in the above examples.
A basic assumption is made concerning bureaucratic rule or administration. It is assumed that prudence is an aspect of an administrative structure and the measures taken to reach an outcome and not of the outcome. However, the bureaucrats’ readiness and ability to receive instructions and directions may be influenced by a variety of factors and mechanisms. These mechanisms include:
Motivation: Motivation can either be as a result of material gifts or even favors. If employees are well motivated, they will be willing to receive orders from their superiors and implement them. However, if the same employees are not well motivated, they may not be ready to receive such orders and commands.
Goodwill: if such rules are directed towards promoting growth and safety, the employees will be ready and willing to receive such orders.
Employee awareness: another which determines the bureaucrat’s willingness to accept and act on orders also depends on the level of knowledge. If the bureaucrats are educated about their rights and duties and limitations within which they should operate, they will not be having any problems taking orders from above.
Conclusion The process of implementation in complex companies like company B and A causes a lot of headache for managers. Harmful power ladders are narrowly associated with incentive systems based on position instead of performance. To avoid such problems, the companies should adopt small or healthy power hierarchies that allow for flexibility, innovation and smooth integration of employees.
It is easy to develop necessary business and behavior characteristics in a lower division than in centralized structures. Where bureaucratic processes are required, it is important for the leaders concerned are to formulate and implement rules objectively and with honesty, built on an unbiased attitude. They are required to utilize their professional expertise and experience to come up with useful strategies that need to be incorporated into the bureaucratic rules. It is necessary as a way of taking into consideration, the employees’ welfare and growth (Ogata, K. (2011).
In a case of a parastatal or government corporations, citizens’ participation should be encouraged. There should be a move from national, graded regimes and towards supremacy by systems described by long-term obligations, confidence and mutuality between the society and the government.
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