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What Is a Bureaucracy?
Bureaucracies are all around us. This form of organization, which is comprised of non-elected officials who implement rules, is not only common in the public sector but in the business world as well. Examples of bureaucracies in the public sector include the Social Security Administration, Environmental Protection Agency and public universities. Among the oldest bureaucratic structures in the country is the United States military.

In the private sector, most large business firms have a bureaucratic organization. Examples of private sector firms with a bureaucratic structure include IBM, GM and the Union Pacific Railroad. Knowing how bureaucratic management works can lead to a better understanding of how government agencies and large business firms operate; it can assist you in interacting with complex organizations, whether it be seeking social security benefits or working for a large corporation.

Max Weber
One of the most important thinkers in modern organizational theory, Max Weber (1864-1920), is the 'father of the bureaucratic management theory.' Weber was a German sociologist and political economist that viewed bureaucracy in a positive light, believing it to be more rational and efficient than its historical predecessors.

Bureaucratic Management Theory
Weber's theory of bureaucratic management also has two essential elements. First, it entails structuring an organization into a hierarchy. Secondly, the organization and its members are governed by clearly defined rational-legal decision-making rules. Each element helps an organization to achieve its goals.

An organizational hierarchy is the arrangement of the organization by level of authority in reference to the levels above and below it. For example, a vice-president of marketing is below the company's president, at the same level as the company's vice president of sales,

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