Max Weber’s theory of bureaucracy also states that the Weberian model of bureaucracy will be governed by top-quality people with high competency and skills and not by people with high social standing. In bureaucratic management, all members of the organization are treated equally and division of labor is clearly defined. This Weberian bureaucracy is an improved version of the traditional structures of an organization. He named this ‘rational organization’ as bureaucracy. He coined the term ‘bureaucracy’ and defined it as well.Īfter studying the capitalist industries of Germany and the US, Weber concluded that a rational organization is the best way to set up an organization. Max Weber, of course, the author of Weber’s theory of bureaucracy, which details the concept of bureaucratic management. ![]() What Is The Max Weber Theory Of Bureaucracy ? Also, business resources were used for the benefit of the owners and managers rather than for the growth and development of the organization. He didn’t like the idea that in Germany, authority was not a result of experience and ability but gained through social standing. Germany valued tradition and the economy controllers were usually the people with high social status and businesses were connected through family and social relationships. On the other hand, in Germany, small groups of people with power were the true rulers of the economy. ![]() His experiences in the country eventually led to the origination of the Max Weber theory of bureaucracy.Ĭomparing the capitalist spirit of the US with that of Germany, he noted that in the US, businesses were operated by professional managers and they shared economic relationships. He observed that in the US, capitalism was characterized by innovation and competition. There, he got the opportunity to witness capitalism in full flow. Weber traveled to the US in 1904 and studied the nation’s economy. Industrial capitalism is a type of economic system in which industry is controlled by private organizations and the main objective is to earn profit. He took a keen interest in industrial capitalism and was curious to know why it worked in certain countries and didn’t in others.
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