...MAX WEBER The Emergence of Organization and Administrative Theory • Max Weber (1864-1920) – “Father of Bureaucracy” and the “Father of Organization Theory” • Bureaucracy – Literally means, “management by office or position” • Designed as a logical replacement for feudalistic patriarchal systems which are based on “management by person” • Weber said that of the three types of authority: 1. Traditional 2. Charismatic 3. Rational-legal • Of these, rational-legal has the continuity and competence necessary for bureaucracy • Weber identified seven elements of bureaucracy: Clearly defined division of labor, authority, and responsibility Clearly defined hierarchy of authority All employees selected because of competence determined via testing, background, and education Administrators are appointed, not elected Administrators work for fixed salaries and are career officials Administrators are not owners Administrators and employees are subject to strict formal rules, discipline, and controls uniformly applied In Weber’s eyes in order for a bureaucracy to function ideally it must have rationalization as its central concept. Rationalization is the substitution of rational and calculating motivators for emotional and traditional ones regarding behavior in a bureaucracy. Basically, “one can, in principle, master all things by calculation.” This quest for precision is what many tenets of modern capitalism such as accounting, centralization of production control, and...
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...Drawing on Weber’s ideal type, critically consider the relevance of bureaucratic administration to the management of twenty-first century organizations. Max Weber was a German sociologist in the twentieth century; he was famous for his classical management theory. Weber classified three different types of authority, traditional, charismatic and legitimate authority. Traditional authority is based on traditions and customs that the leader has the legitimate right to use authority. Charismatic authority is the belief that the leader whose mission and visions will inspire others. Legitimate authority is based on formal, system of rules. In the 1930s, Weber introduced that the bureaucratic form as being the ideal way of organizing government agencies. This soon became popular in both the private and public sectors. Weber believes that the development of rational forms to be the most important characteristics in the development of Western society and capitalism. He considered the traditional and charismatic forms as irrational. Rationality is based on reasoning, calculation and logic. One of the many types of rationality includes the formal rationality. The notion of formal rationality is important to the emergence of industrial capitalism as capitalism values reason, calculation and precision, science and logic. Formal rationality is a form of rationality that characterizes bureaucratic organizations. Bureaucracy refers to the execution of tasks that are governed by official administrative...
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...Religion and the Economy Max Weber postulates in his book “The Protestant Ethic and the Spirit of Capitalism” the hypothesis that the work ethic derived from the Protestant religion that gives rise to modern capitalism. Weber supports his argument with the use of statistical studies showing that the predominantly Protestant regions are more successful than of the Catholic regions in Germany due to the concentration of a highly educated and skilled workforce, and the concept of “worldly asceticism” that encouraged capital reinvestment. And while, the connection between human and social capital as an expansionary force in output production is well established in economic theory (Adam Smith, Karl Marx, the Chicago School of Economics, and others); the hypothesis advanced by Max Weber that this skilled workforce is the direct consequence of the Protestantism ideal of “worldly vocation” ignores the rise of the trade unions from the medieval guild system as indicated by Lujo Brentano. Furthermore, many of these trade unions promoted nepotism and were discriminatory excluding Catholics from their ranks, the consequence of Bismarck’s policy of “Kulturkampf” that reduced the power of the Catholic Church in public affairs, and kept the Poles under control during the 1870s. As for his assertion of capital reinvestment as fundamental to the Protestant ethos; it is more likely that this reinvestment of capital came as a result of the population growth experienced during the first half of...
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... Weber’s name synonymous with bureaucracy Whether we live under most totalitarian despotism or under most liberal democracy, we are governed to considerable extent by some form of Bcy… De Gourney coined the term in 1745… Initially it meant Government by Officials… Marx’s critique of Bcy precedes Weber’s formulation… Bata K Dey views on Bcy… Structural, Behavioural, Purposive aspects Structural-> Value Neutral… Phenomenon associated with any large scale orgn Behavioural-> showing some functional and pathological symptoms Purposive-> Orgn that maximizes efficiency Rise of Bureaucracy Max Weber 1. Creation of Money Economy… System of rewarding Bcrats by land etc tended to turn Bcy feudal and led to its disintegration…. Money Economy permits payment of secure regular salaries 2. Emergence of Capitalist Economy… Created needs that only Bcratic. orgn. Could satisfy… Capitalism requires abd encourages government based on Bcratic. Orgn. Also not only govt. but pvt. Enterprise also started following Bcratic principles to enhance rationality… 3. Trend towards rationality in Western Countries… Protestantism, Devt. Of Science and Technology, Capitalism etc. 4. Democracy… Elimination of traditional rule of nobles and feudal elements and encouraging education and appointment to office on basis of Knowledge 5. Growth in Population… Larger orgn. Tend to assume Bcratic. Forms 6. Govt becam Complex… Like constructing waterways, provision of social services etc. 7. Modern forms of...
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...practices would be vast .The perspective of our Sociological founding Father Max Weber and his analysis of another change in American Society; his view points on modernity, the rise of capitalism as well as Bureaucracy make tangible points to set the stage for a crisis in America that takes in 2008. Weber predicted that in a crisis Bureaucracy will only fail if there is mismanagement, incompetence and/or abuse of its organizational system. He predicted to fix a system that has went array one would have to balance the effects of Bureaucracy to the peoples needs/desires for capitalistic gain. Karl Emil “Max” Weber was born in Prussia in the mid-1800's. Max Weber, (2006) German sociologist. (n.d.). Retrieved October 10, 2015. During this era, the Industrial revolution was in full swing brushing off the ideals of a traditional economy and embracing the new ideas of Modernity. Weber was not unaffected by these ideas and described the emergence of modernity, through the rise of capitalism. Weber noted that the this new economic system yielded old leadership he described as the charismatic, Authoritative and Traditional leadership. He outlined that Capitalism would bring a prosperity the likes people have never experienced. The positive affects of Capitalism he noted were an increased knowledge of skill-set, a change from reasoning to Rationalization and an efficiency in production. Weber outlined Rationalization in financial terms, as the assessment of benefits and costs...
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...MAX WEBER Weber asks why certain developments occurred in Western civilization, which did not occur elsewhere, but which had universal significance, that is these developments affected much of the rest of the world. He says that science in India was well developed, but the method of experimentation was not used. In non-Western societies, historical scholarship existed, but it was not systematic. Western law, or rational jurisprudence, was Roman in origin. The subject of Weber's investigation is capitalism, and Weber defines this as more than just an impulse to acquisition, because even this impulse exists among physicians, noblemen, soldiers, gamblers, and so on (p. 17). For Weber, capitalism is more likely to "be identical with the restraint, or at least a rational tempering, of this irrational impulse. But capitalism is identical with the pursuit of profit, and forever renewed profit, by means of continuous, rational, capitalistic enterprise"(p.17). For Weber, rationality in the form of using balances, and the development of a monetary system, with measurement in money, is part of this. Rational, capitalistic acquisition is the systematic use of goods and services so that the balance at the end exceeds the capital originally invested. Weber also showed that a rational or systematic approach to economic activity means that that economic actors consider which of the several different possible courses of action they will take. Each course of action has consequences, either...
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...Spirit of Capitalism Name: Institutional Affiliation: Date: Max Weber through his book The Protestant Ethic and the Spirit of Capitalism seeks to give a vivid picture on the religious dogmas contribution to the proliferation of capitalism in the modern society. In essence, Weber argues that the Protestants doctrines facilitated the rise of new social order that was heavily capitalistic. He highlights the use of religion to impose and develop the common standards in the society. Religion is exposed as a driver to the economic model adopted in the modern civilized society. For instance, Weber notes that; "Now naturally the whole ascetic literature of almost all denominations is saturated within the idea that faithful labor, even at low wages, on the part of those whom life offers no other opportunities, is highly pleasing to God. In his respect Protestant Asceticism added in itself nothing new. But it not only deepened this idea most powerfully, it also created the force which was alone decisive for its effectiveness: the psychological sanction of it through the conception of this labour as a calling, as the best, often in the last analysis the only means of attaining certainty of grace. ... The treatment of labour as a calling became as characteristics of the modern worker as the corresponding attitude towards acquisition of the businessman." (Weber, & Parsons, 2005,p 121). In the quoted section of the book, Weber seeks to clear understanding on the way religion has been used...
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...According to Weber, the world is becoming increasingly rational and he considered modern capitalism to be the root motivation of rationalization Weber’s rationalization theory includes calculability, efficiency, predictability and control. Observing these things in the workplace is very easy. For example, having regulations and rules you must abide by is a means of making sure everything is efficient. Calculability deals with anything containing numbers and if it can be calculated or estimated. This can be any place of business because consumers have to have a price to pay in order for them to purchase the goods. In order for the consumer to have a desire to go into a store they must know what it is that they are walking in to. This is where the idea of predictability comes into play. Walking into Best Buy, you expect to get electronics and cd’s. You wouldn’t go there expecting to get clothes or something completely different than what they normally sale. The last area is that of control. Companies have the final say so in their business. For example, I used to work at Best Buy and on black Friday we use to give tickets out because only a certain amount of people are allowed in the store at a time. Another way they control their employees is by making all of us wear their blue Best Buy shirt and khaki’s. Another area where Weber’s ideas can be found is in the school and how it’s run. The efficiency of a school could be measured by their standardized tests and the overall standards...
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...بسم الله الرحمن الرحيم Sudan Academy of Science MBA Program Principles of Management Assay about: Positive contribution of Henry Fayol & Max Weber on the Management thought Prepared by: Nuha Mohamed Saeed - Batch 15 Henri Fayol: the Administrative Theory: Henri Fayol developed the Administrative Theory. While Weber emphasized the principles of an ideal bureaucratic organization, Fayol concentrated on the management layer. He focused on the personal duties of a manager at a much finer level than Weber did. Fayol stated that management had five principle roles: * Planning, meant anticipating the future and acting towards it * Organizing, meant the development of resources, both capital and human * Commanding, meant keeping the processes of the business running. * Coordinating, meant syncing the group’s efforts in the best possible way. * Controlling, meant that all the above activities were done according to appropriate rules and procedures. Fayol created 14 principles of administration to go along with these five goals. 1. Division of work: work is divided according to skill and technical expertise; each item of work be given to the employee most qualified for it 2. Authority and responsibility: Fayol defined authority as 'the right to give orders and the power to exact obedience.' He emphasized the importance of linking authority to responsibility. 3. Discipline: obedience and behavior of respect. 4. Unity of command: an employee should receive orders...
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...Max Weber “The Protestant Ethic and the Spirit of Capitalism” Max Webers “The Protestant Ethic and the Spirit of Capitalism” is an analysis as to the relationship between the emergence of the spirit of capitalism in the west and the ethics of Calvinism. He argues that Calvinism catalysed this creation of the capitalist spirit. His study arose when he asked himself why capitalism had emerged out of Western Europe before anywhere else in the world, even though the economic conditions seemed identical in many of these places. In this essay I will argue that this relationship between the two isn’t as paramount as Weber suggests, and in fact may be completely arbitrary. I believe this for a number of reasons including the distorting effect Webers use of a “ideal type” has and the fact that some areas where Calvinism was practiced heavily Capitalism developed a lot later in, while others with no Calvinist beliefs still did develop Capitalism. Weber starts his analyse looking at the intrinsic relationship between religion and business. He emphasises how sect membership is a sign that you are trustworthy and will be a good business partner, as admission to one of these congregations only happens after a careful probation, where your conduct, back to early childhood, is assessed and checked for any kind of frivolity. Admission therefore is a guarantee of the moral qualities of someone, it is a badge of honour showing you have those qualities that are required in business matters...
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...The mission statement for Mary Kay should be a clear and brief representation of the enterprise's purpose for existence. It should incorporate socially meaningful and measurable standards addressing concepts such as the moral/ethical position of the enterprise, public image, the target market, products/services, the geographic domain and expectations of growth and profitability. The intent of the Mission Statement should be the first consideration for any employee who is evaluating a strategic decision. The statement can range from a very simple to a very complex set of ideas. Normally, the Mission Statement should represent the broadest perspective of the enterprise's mission. Mary Kay Ash founded Mary Kay Cosmetics in 1963 with her lifesavings of $5,000 and the support of her 20 year old son, Richard Rogers, who currently serves as executive chairman of Mary Kay, Inc. Mary Kay, Inc., is one of the largest direct sellers of skincare and color cosmetics in the world with more than $2.5 billion in annual sales. Mary Kay brand products are sold in more than35 markets on five continents. The United States, China, Russia, and Mexico are the top four markets served by the company. The company’s global independent sales force exceeds 2 million. About65% of the company’s independent sales representatives re-side outside the United States. Mary Kay Ash’s founding principles were simple, time-tested, and remain a fundamental company business philosophy. She also steadfastly believed...
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...from Marx's conception of the term in the sense that for Weber, social class and political class cannot simply be lumped together as a single entity. (Humanities) Weber viewed and defined social and political realms separately in an attempt to put emphasis on the unique dynamic that power possesses in its own right, apart from economic interests. Moreover, he wanted to highlight the irrational features of power by making it clear that the rational interests of a class are not sufficient to explain the dynamics of society, particularly when comparing one society to another. (Humanities). Marx has a much more optimistic view of conflict theory than Weber. Where Marx would say the proletariat have revolution as an ultimate recourse, Weber says we're screwed pretty much regardless. Marx does not consider inequality to be inevitable (not the natural product of human interaction, so man is not naturally flawed) and the major tenants of Marxism are towards a Better, more Just society (prescriptive goal of social science). Weber, on the other hand, distrusted human nature and saw inequality as inevitable. Our analysis of human interaction, in his opinion, should be value-free and non-prescriptive given such a nature In today's sociology, we tend to see the same three factors, although Marxist sociologists still emphasize the relations to the means of production (including now the production of ideas and information). Weber saw society as having several layers, not only two, and that...
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...Case name, Citation and Court: Weber, Lipshie & Co., Plaintiff and Appellant, v. Paul D. Christian, Defendant and Appellant. 52 Cal.App.4th 645 (1997) Key facts: When defendant Paul D. Christian (Christian) became a partner in the accounting firm of plaintiff Weber, Lipshie & Co. (Weber), he agreed that in the occasion he withdrew or was expelled from the partnership he would not, for a period of five years, service any of the accounts serviced by Weber (the restricted covenant); he further agreed that the damages to the partnership for the loss of fees from any such clients would be measured by doubling Weber’s time charges for those clients for the twelve months immediately preceding their loss (the measure of damages or liquidated damages provision). After Christian’s expulsion from Weber, certain clients took their business to Christian. Weber sued Christian for liquidated damages in accordance with the agreement, and Christian cross-complained for breach of contract. Even though the trial court denied Christian’s motion for judgment notwithstanding the verdict, the court awarded a new trial, on the ground that it was essential to define whether Weber had decent reason to eject Christian from the partnership. Issue: 1) Is the restricted covenant reasonable and enforceable regardless of the reason Christian expelled? 2) Did the trial court erroneously fail to enforce the liquidated damages clause? Rule: Not only is restrictive covenant reasonable and enforceable...
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...Analyze your college or workplace using Weber's model of bureaucracy. What elements (efficiency, calculability, predictability, and control) of McDonaldization do you see? Do you wish life were less McDonaldized? Why or why not? Efficiency strives to diminish reliance on human skills and decision making by automating and standardizing work processes. In my office we just updated our Computer software system to track zip codes where there is a high propensity for people to join the Army. This update to our computer system takes the time out where recruiters are constantly prospecting for applicants. Calculability demands that the success of a process be determined by quantification, rather than qualification. We have changed our calculability to quantification by using email as a substitute for cold calling because we are trying to reach as many people as possible in the shortest amount of time. Predictability dictates that the elements and products of a process be standardized and routine. And control requires the elements of a process to be automated and uniform, preferably through the use of technology rather than human activity. In my job as an Army Recruiter, predictability plays a major role in the success of our job. We were taking a lot of losses in my job because of applicant’s hiding law violations we installed finger print machines in our office. These fingerprint machines are directly connected to the FBI which helps us getting applicants police checks faster...
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...Weber’s Restaurant is Ann Arbor, Michigan’s oldest privately owned restaurant. Herman Weber opened his first business in 1937; it started out with as gas station that also served beer and hamburgers. Mr. Weber grew the company from that small business into a multimillion dollar hotel, lounge, and restaurant that his son and grandchildren now operate. The current restaurant was completed in 1962. With family in mind Mr. Weber added a hotel around the restaurant and completed that in 1969. With a lot of hotels you have a restaurant that was built for the hotel or even at the same time. With Weber’s you have a successful restaurant that had a hotel built around it. Weber’s Inn and Restaurant is currently in their 76th year of business. Herman Weber still walks his property everyday at 99 years young. Weber’s offers 5 star dinning in a relaxed and upscale modern setting. The servers are knowledgeable and well dressed. Weber’s Restaurant specializes in Prime Rib, steaks and seafood. The menu often changes based on what is fresh and available. The seafood gets flown in daily from Maine. With Chef Tye you have to be on your toes. He likes to change menus with barely a week’s notice. Chef Tye tries to utilizes organic products in his dishes. For this reason I would mainly use local farmers and ranchers for the bulk of my food purchasing, cultivating relationships with the area growers and ranchers for all of my vegetables, fruits, beef, pork, poultry, and fish. This...
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