Max Webbers Theory

presented by:

Rizwan ali Roll no: 8387

MBA 1st (M)

Max Weber 1864-1920

Background
Born 1864, Thuringia

Father was civil servant who was highly involved in both

politics and academics

For Christmas one year he wrote two analytical essays to give

to his parents as gifts

Attended law school Spent some time in the military

Took a job of professor in the university.

Introduction

Max Webbers Theory of Bureaucracy

is the study of how to create an organizational structure and control system that leads to high efficiency and effectiveness.

principal:1

In a bureaucracy, a managers formal authority derives from the position he or she holds in the organization. Authority - the power to hold people accountable for their actions and to make decisions in reference to the use of organizational resources. In todays business models, this type of theory is not very common. Nowadays, we see more of an informal authority approach in which there is personal expertise, technical knowledge, moral worth, and the ability to lead and to generate commitment from subordinates, without the use of this absolute power from one individual.

Principal:2
In a bureaucracy, people should occupy positions because of their

performance, not because of their social standing.

Some organizations and industries are still affected by social networks

in which personal contacts and relations, not job-related skills,

influence hiring and promotional decisions

The old ways, of not what you know, but who you know, are still around in todays society, but it can only get you so far. In todays

business world, what you know and educational knowledge, play a

very important part in moving up the corporate latter and being able to maintain a managerial position requires the utilization of staying current on up to date techniques and information.

Principal:3

The extent of each positions formal authority and task responsibilities,

and its relationship to other positions in the organization should be clearly specified.
When the task and authority associated with various positions in the

organization are clearly specified, managers and workers know what is expected of them and what to expect from each other.
Most organizations should and are clearly defining task and position responsibilities. Job descriptions should include all facets of an

employee held position. Clarification of ones job expectations is

essential for all five business functions in order to manage and maintain a high level, and measurable level of success for all organizations.

Principal:4
Authority can be exercised effectively in an organization when positions

are arranged hierarchically, so employees know whom to report to and who reports to them.
Managers must create an organizational hierarchy of authority that makes

it clear who reports to whom and to whom managers and workers should go if conflicts or problems arise.
Todays business models utilize the initiative factor in which employees are given the ability to act on their own, without direction from a superior. This empowerment of employees relieves the stress of constant supervision and allows supervisors and managers to concentrate more on other administrative duties. The balance between a vertical and horizontal

organizational structure is more widely used in todays business models.

Principal:5
Managers must create a well defined system of rules, standard operating

procedures, and norms so that they can effectively control behavior within an organization.
Standard Operating Procedures (SOPs) are specific sets of written

instructions about how to perform a certain aspect of a task

Most companies have SOPs and require employees to learn and follow them. We have seen how in addition to following rules and regulations, many organizations have allowed for creativity and innovation to supersede the common way of conducting business where it was once said, rules are rules and they could never be broken. Guidelines are needed and common sense is always important, but have an open line of communication to new ideas and thoughts is essential in todays business society.