Theories of Organizational Behaviour
EVOLUTION OF ORGANIZATIONAL THEORIES
1. CLASSICAL THEORY
a. Bureaucracy theory of Max Weber (1900)
b. Scientific Management theory of Taylor (1910)
c. Administrative theory of Fayol (1910)
2. NEO-CLASSICAL
a. Human Relations School of Elton Mayo and Roethlisberger (1930)
b. Behavioural School (1940)
3. MODERN MANAGEMENT THEORY
a. System approach
b. Contingency approach
c. Total Quality Management (TQM) and Six Sigma
THEORY OF BUREAUCRACY
Max Weber, a German sociologist, developed the Theory of Bureaucracy, which describes an ideal
way of organizing large organizations efficiently. According to Weber, bureaucracy is a structured and
rule-based system designed to manage complex institutions such as governments, corporations, and
other large entities. It ensures efficiency, predictability, and fairness.
The key characteristics of bureaucracy, as described by Weber, are:
1. Hierarchy
Bureaucracy operates on a well-defined hierarchical structure, where authority flows from
the top to the bottom.
Higher-level officials have control over lower-level employees, ensuring a clear chain of
command.
This hierarchy helps in maintaining order, accountability, and efficiency within the
organization.
Example: In a government department, a minister supervises secretaries, who oversee
department heads, who then manage lower-level employees.
2. Fixed Rules
Bureaucracies function based on a set of formal rules and regulations that govern all
operations.
These rules ensure consistency, uniformity, and predictability in decision-making.
Employees must follow these guidelines strictly to maintain fairness and objectivity.
, Example: In a university, the admission process follows a set of predetermined rules
regarding eligibility, document submission, and deadlines.
3. Impersonal Relationships
Bureaucracy promotes impersonal and professional relationships rather than personal
connections.
Decisions are made based on merit, qualifications, and rules rather than personal
preferences or biases.
This prevents favoritism, nepotism, and corruption within the system.
Example: A government official processing a passport application must follow the rules and
not favor a relative or friend.
4. Rigid Adherence to Procedures
A bureaucratic system strictly follows standardized procedures to ensure uniformity and
avoid arbitrary decisions.
This rigidity ensures fairness but can sometimes lead to inefficiency or delays in problem-
solving.
Example: If a company follows strict procurement procedures, even an urgent purchase must
go through multiple approvals, leading to delays.
5. Highly Specialized Division of Labour
Bureaucracies divide work into specialized roles, where each employee has a defined set of
responsibilities.
This specialization increases efficiency, expertise, and productivity.
However, it can also lead to rigidity, where employees focus only on their tasks without
concern for the bigger picture.
Example: In a hospital, doctors focus on medical treatment, nurses on patient care, and
administrative staff on record-keeping.
Criticisms of Weber’s theory of Bureaucracy
While Max Weber's Theory of Bureaucracy provides a structured and efficient way to manage large
organizations, it has been criticized for several reasons. Some of the key criticisms include:
1. Excessive Formalism and Rigidity
Bureaucracy relies heavily on fixed rules and procedures, which can make the system rigid
and slow to adapt to changing circumstances.
Employees may focus more on following rules rather than achieving results.
Example: A government agency may take months to approve a project due to excessive
paperwork, even if the project is urgently needed.
2. Red Tape and Inefficiency
, The strict adherence to rules often leads to unnecessary delays and excessive paperwork,
commonly known as red tape.
This slows down decision-making and makes processes cumbersome.
Example: In many bureaucratic systems, multiple approvals are required for even minor
decisions, leading to inefficiency.
3. Lack of Flexibility and Innovation
Bureaucracies discourage creativity and innovation because employees are expected to
follow standardized procedures.
Employees often fear making independent decisions, as it might violate rules.
Example: In a rigid bureaucratic organization, an employee with a new idea may struggle to
implement it because it does not fit within the existing procedures.
4. Impersonal and Dehumanizing
Since bureaucracy is based on impersonal relationships, employees and clients often feel
like just another number in the system.
This can lead to low employee morale and dissatisfaction among people who interact with
bureaucratic institutions.
Example: A patient in a large hospital may feel ignored because doctors and nurses are
strictly following protocols rather than addressing their personal concerns.
5. Bureaucratic Inertia (Resistance to Change)
Once established, bureaucracies tend to become self-preserving and resist change, even
when change is necessary.
This leads to inefficiencies, as outdated procedures continue to be followed.
Example: Some government offices still use paper-based filing systems instead of modern
digital alternatives, simply because "it has always been done this way."
6. Power Concentration and Corruption
The hierarchical structure of bureaucracy concentrates power at the top, which can lead to
abuse of authority and corruption.
Employees at lower levels may hesitate to question decisions made by their superiors, even
if they are unethical.
Example: In a corrupt bureaucracy, officials may demand bribes to process documents,
knowing that lower-level employees cannot challenge them.
7. Alienation of Workers
Employees in a bureaucratic organization often perform highly specialized and repetitive
tasks, leading to monotony and job dissatisfaction.
Workers may feel disconnected from the overall purpose of the organization.
EVOLUTION OF ORGANIZATIONAL THEORIES
1. CLASSICAL THEORY
a. Bureaucracy theory of Max Weber (1900)
b. Scientific Management theory of Taylor (1910)
c. Administrative theory of Fayol (1910)
2. NEO-CLASSICAL
a. Human Relations School of Elton Mayo and Roethlisberger (1930)
b. Behavioural School (1940)
3. MODERN MANAGEMENT THEORY
a. System approach
b. Contingency approach
c. Total Quality Management (TQM) and Six Sigma
THEORY OF BUREAUCRACY
Max Weber, a German sociologist, developed the Theory of Bureaucracy, which describes an ideal
way of organizing large organizations efficiently. According to Weber, bureaucracy is a structured and
rule-based system designed to manage complex institutions such as governments, corporations, and
other large entities. It ensures efficiency, predictability, and fairness.
The key characteristics of bureaucracy, as described by Weber, are:
1. Hierarchy
Bureaucracy operates on a well-defined hierarchical structure, where authority flows from
the top to the bottom.
Higher-level officials have control over lower-level employees, ensuring a clear chain of
command.
This hierarchy helps in maintaining order, accountability, and efficiency within the
organization.
Example: In a government department, a minister supervises secretaries, who oversee
department heads, who then manage lower-level employees.
2. Fixed Rules
Bureaucracies function based on a set of formal rules and regulations that govern all
operations.
These rules ensure consistency, uniformity, and predictability in decision-making.
Employees must follow these guidelines strictly to maintain fairness and objectivity.
, Example: In a university, the admission process follows a set of predetermined rules
regarding eligibility, document submission, and deadlines.
3. Impersonal Relationships
Bureaucracy promotes impersonal and professional relationships rather than personal
connections.
Decisions are made based on merit, qualifications, and rules rather than personal
preferences or biases.
This prevents favoritism, nepotism, and corruption within the system.
Example: A government official processing a passport application must follow the rules and
not favor a relative or friend.
4. Rigid Adherence to Procedures
A bureaucratic system strictly follows standardized procedures to ensure uniformity and
avoid arbitrary decisions.
This rigidity ensures fairness but can sometimes lead to inefficiency or delays in problem-
solving.
Example: If a company follows strict procurement procedures, even an urgent purchase must
go through multiple approvals, leading to delays.
5. Highly Specialized Division of Labour
Bureaucracies divide work into specialized roles, where each employee has a defined set of
responsibilities.
This specialization increases efficiency, expertise, and productivity.
However, it can also lead to rigidity, where employees focus only on their tasks without
concern for the bigger picture.
Example: In a hospital, doctors focus on medical treatment, nurses on patient care, and
administrative staff on record-keeping.
Criticisms of Weber’s theory of Bureaucracy
While Max Weber's Theory of Bureaucracy provides a structured and efficient way to manage large
organizations, it has been criticized for several reasons. Some of the key criticisms include:
1. Excessive Formalism and Rigidity
Bureaucracy relies heavily on fixed rules and procedures, which can make the system rigid
and slow to adapt to changing circumstances.
Employees may focus more on following rules rather than achieving results.
Example: A government agency may take months to approve a project due to excessive
paperwork, even if the project is urgently needed.
2. Red Tape and Inefficiency
, The strict adherence to rules often leads to unnecessary delays and excessive paperwork,
commonly known as red tape.
This slows down decision-making and makes processes cumbersome.
Example: In many bureaucratic systems, multiple approvals are required for even minor
decisions, leading to inefficiency.
3. Lack of Flexibility and Innovation
Bureaucracies discourage creativity and innovation because employees are expected to
follow standardized procedures.
Employees often fear making independent decisions, as it might violate rules.
Example: In a rigid bureaucratic organization, an employee with a new idea may struggle to
implement it because it does not fit within the existing procedures.
4. Impersonal and Dehumanizing
Since bureaucracy is based on impersonal relationships, employees and clients often feel
like just another number in the system.
This can lead to low employee morale and dissatisfaction among people who interact with
bureaucratic institutions.
Example: A patient in a large hospital may feel ignored because doctors and nurses are
strictly following protocols rather than addressing their personal concerns.
5. Bureaucratic Inertia (Resistance to Change)
Once established, bureaucracies tend to become self-preserving and resist change, even
when change is necessary.
This leads to inefficiencies, as outdated procedures continue to be followed.
Example: Some government offices still use paper-based filing systems instead of modern
digital alternatives, simply because "it has always been done this way."
6. Power Concentration and Corruption
The hierarchical structure of bureaucracy concentrates power at the top, which can lead to
abuse of authority and corruption.
Employees at lower levels may hesitate to question decisions made by their superiors, even
if they are unethical.
Example: In a corrupt bureaucracy, officials may demand bribes to process documents,
knowing that lower-level employees cannot challenge them.
7. Alienation of Workers
Employees in a bureaucratic organization often perform highly specialized and repetitive
tasks, leading to monotony and job dissatisfaction.
Workers may feel disconnected from the overall purpose of the organization.
