Characteristics of Bureaucracy or Bureaucratic Organization
Using Block’s ‘Bureaucratic and Entrepreneurial Organisations Model’, compare and critique the importance of decision making within different kinds of organisations. Describe why people choose ‘bureaucratic options’ and how organisational decision making can effectively change the culture within an organisation.
A bureaucratic organization is a type of organization which follows a pyramid structure that is from the top management for example from the chief executive officer of an organization downward to junior subordinates (Farazmand, 2009). This type of an organization is highly formal where every person in an organization understands his or her roles. For a bureaucratic organization to have a full effect reporting matter a lot for example from downward levels junior workers reports to the supervisors, supervisors then report to managers and the chain continues up to the highest level where the vice president reports to the chief executive officer. The communication follows that chain of command also where information is supposed to flow downwards for example from the topmost level where vital decisions regarding the organization are made and need to be communicated downwards for effective take of action (Van der Voet, 2014).
A bureaucratic organization has various characteristics which include the following: A bureaucratic organization is characterized by a formal hierarchical structure where a level from above controls the below levels. The importance of being formal is that it enables a basis of central planning and a platform where decisions are centrally made. A bureaucratic organization is fully managed by rules where each type of control is made effective by giving certain rules and regulations according to the decisions which are made at the topmost level of an organization and need to be implemented by being executed. The lower levels hence must abide as per the rules for effective execution of what is delegated (Sarangi & Slembrouck, 2014).
A bureaucratic organization has a mission which is characterized either by an up-focused or an in-focused motive. An up-focused motive is a type of mission where an organization aim and focus is to serve for example the board or the stockholders of an organization. An in-focused motive, on the other hand, is a type of mission where an organization aim is to serve the organization itself, for example, to realize high-profit margins, to gain or penetrate in the market (Rasul & Rogger 2018). A bureaucratic organization operates by a functional speciality where the work in an organization is done by specialists and workers are grouped and organized into units which entail the skills which are hold by the given workers and the jobs they are supposed to handle. The bureaucracy organization has an impersonal purpose where the overall purpose is to treat everyone that pertains the organization equally, for example, the customers and employees without being intimidated by any given individual differences (Johnson, 2015).
Advantages of Bureaucracy
Upon employee hiring, a bureaucratic organization hires its employees according to the skills and experience they hold and not according to any other way for example favouritism or luck. In giving promotions to the officers the activity is formally done since the responsibilities which are entitled to them in case goes wrong they are held accountable hence some factors for example experience and skills has to be considered upon issuance of promotion. In a bureaucratic organization payment of salaries is according to the pay-grade system that is according to a given job group. A bureaucratic organization is unable to quickly adapt changing conditions that affect it since it has to undergo a series of thorough decision making tabling process from the topmost position before implementation of any policy (Sturdy, Wright & Wylie, 2016)
A bureaucratic organization has several pros which include the following: The central authority which is involved in a bureaucratic organization is appropriate and effective upon organizing since there a chain of command. In this way performance of workers in lower levels is monitored and through strict rules and directives duties are carried out effectively and timely finished (?wiklicki, 2015). A bureaucracy organization promotes the hiring of specialized personnel since it advocates appointing of personnel who are furnished with skills and knowledge. This helps in solving critical problems which may arise and handled by a given competent individual.
A bureaucratic organization has no room for favouritism that is each employee is treated equally with also the organization’s customers and no room for intimidation from any given person. A bureaucracy organization advocates for a genuine promotion of personnel in an organization where formal criteria, for example, one has to pass various exams for qualification to climb a cooperate ladder which means that whoever is appointed has skills to manoeuvre the job (Khan, 2017)
A bureaucracy organization despite having a series of pros also have got several cons which include: A bureaucracy organization may result in boredom among workers which may affect productivity negatively. This may arise from workers performing similar duties as a routine which may appear too demanding encouraging absenteeism among the personnel (Lim & Lee 2015). A bureaucratic organization may lead to inefficiency where there is no aggressive competition since the hiring and promotion process is based on knowledge and skills. Also when one is hired works on specialized given tasks and cannot work outside his or her assigned department and has fixed salary according to job grade.
Disadvantages of Bureaucracy
The bureaucratic organization may result to passive and rule-based personnel where strict rules are to be followed which seem to limit freedom of an individual to act on his or her own because of the imposed restrictions (Dimock, 2018).
Bureaucracy in an organization may have two outcomes that is it can create order and trust while on the other hand may create distrust. Decision making in bureaucratic organization falls under the topmost level of an organization where critical decisions regarding the organization for example objectives and goals to be achieved for example the chief executive officers and other senior heads. This heads of an organization must authorize and delegate to subordinates who will ensure decisions and operations are effectively conducted in an ethical manner (Rahim, 2017).
On large and complex organizations, levels of management are deep as there is a need to make subordinate decisions making while in small organization levels are few in that top heads and the stuff in an organization know each other. Levels of management can be determined by the number employees a manager handles. Most bureaucratic organizations departments have quite a number of senior staff who oversees the managers (Lu, 2018)
Entrepreneurship involves the willingness to start and put in place management activities on a new business opportunity identified which is associated with various kind of risks with a driving motive of making a profit (Suddaby, Bruton, & Si, 2015)
Entrepreneurship is characterized with the following characteristics: Motivation and the zeal one has that is a passion to do something as a routine without experiencing boredom and getting tired but enjoys to the fullest and continue executing in lifetime. Risk taking that is one is not afraid to take any risk considering whether that risk is worth the cost of one’s career together with other factors for example money and time and the alternative one has if the identified opportunity does not give the expected returns (Zhang, Wang & Huo, 2016).
Entrepreneurship is characterized by hard work for example self-belief and dedication upon ones venture to defy odds which in turn makes one become successful. Entrepreneurship has an ability of one being flexible about the market needs which in turn will lead to successful business. Entrepreneurship encourages market knowledge where entrepreneurs know the market fully, for example, identifying something which does not exist in the market and creates it or improves an existing product for example through improving quality.
Decision making in Bureaucratic Organizations
Entrepreneurship is associated with good money management for any venture to become profitable since capital is limited and need to be effectively utilized. This can be achieved through the present and future planning concerning finances and setting aside emergency cash. Entrepreneurship is about raising a business from conception in which it requires effective planning which requires having a business plan in place. Entrepreneurship is all about seeking the right connections for example mentors with extensive networks and experience (Brenkert, 2017).
Entrepreneurship is associated with numerous pros which include the following: Entrepreneurship gives sufficient freedom which allows one make his or her own decisions on the business unlike when he or she is employed and has to follow employer guidelines. Entrepreneurship allows one set his or her own earnings that is wage per day and profit which one targets unlike when employed where mostly earnings are fixed or when not fixed does not go beyond a certain range (Burns, 2016).
Entrepreneurship provides flexibility which allows an entrepreneur to fully schedule his or her working hours and have time to give to other commitments, for example, spending time with friends and relatives. Entrepreneurship workplace has a position in varying where not necessary to work in an office where one can work for example while at home which greatly helps in breaking the monotony of working in a confined place. Entrepreneurship provides with an opportunity to change and make an impact in lives in various ways for example problem solving, providing new and quality products that make an impact in daily living (Meyer, Neck & Meeks, 2017).
Entrepreneurship equips one to become a business leader for example through evaluating how one’s business has contributed to economic growth for example number of job opportunities one has created hence becoming a business leader to the society and economy as a whole. Entrepreneurship is full of excitement which brings joy to an entrepreneur upon doing what he or she enjoys the most where business is dynamic and continuous growth which keeps an entrepreneur with a motive of continuous soaring to greater heights (Demil, Ricart & Zott, 2015)
Entrepreneurship has several cons regardless of having many pros which include the following: Entrepreneurship requires huge dedication of time to the started business in order to grow the business up to a maturity level where great aggressiveness is not needed where flexibility in the workplace takes full effect. Entrepreneurship stresses for one to stay competitive which may tend to be difficult to compete with other businesses which leave one with an alternative of differentiating one’s business from others in one’s business opportunity in order to come up with a concrete customer base and realize targeted profits (Gielnik, Frese & Stark, 2015)
Characteristics of Entrepreneurship
Entrepreneurship does not guarantee fully percent success despite making an entrepreneur dreams come true which is not always in the case of employment. Sacrifice is required to make one realize the desired dreams. Entrepreneurship is associated with unplanned schedules which are unpredictable for example sometimes one may be forced to work for long hours in order to attend urgent and pending matters.
Entrepreneurship is involved with an entrepreneur making his or her own decisions upon the administration and running of a business which may turn being a burden which may be associated with a lot of paperwork which can take a lot of time and energy. Entrepreneurship may be associated with loneliness while making all the decision and being responsible for what will unfold of the business that is success or failure. Entrepreneurship does not guarantee regular salary which simply means doing away with a mentality of a regular paycheck and one has to cope when the business is accelerating or slowing down (Romero & Valdez, 2016).
Decision making in an entrepreneurial organization is a vital activity which fully affects the running and operation of an organization. It is, therefore, an entrepreneur responsibility to have what is required for example the skills which will aid in coming up with sound and best decisions to ensure success (Shepherd, Williams & Patzelt 2015).
An entrepreneurial organization can exploit opportunities based on how aware they are with their customers and other factors, for example, their capability in management and level of support from people like stakeholders which may help on the type of decision to make. An entrepreneurial organization can be triggered to make firm decisions from the passion of work by an entrepreneur and other factors, for example, non-work related excitement levels. An entrepreneurial organization depending on an entrepreneur attitude towards income expected, risk involved and amount of effort required may make decisions from this base (Camuffo, Cordova & Gambardella, 2017)
An entrepreneurial organization can be affected upon the decisions to make upon the environment of operation for example entrepreneurs in dynamic environments are less prone to unexpected changes in their decision making while those in hostile environments are more prone to unexpected changes in their decision making. Decision making in an entrepreneurial organization can also be made according to the persistence of an entrepreneur when he or she has had high investments in an organization, has few career options to chase and have recently realized an achievement through success from the previous organizational success.
Entrepreneurial organization decision making may be influenced by factors for example where there is stability in key success factors, where there is low competition and high industry competence, especially where the target is to realize huge profits.
Bureaucratic options have been turned to by people that are the ones responsible for decision making in an organization due to effective solutions and positive outcomes concerning the running and operation of an organization.
Bureaucracy is involved with centrally decision making where major and complex decisions are made at the top levels and communicated downwards. This helps in reducing overlap of information between departments where each department may be making a decision. This can help an organization effectively change the culture within it that is if there was an overlap of information between departments which would not be an issue any more. Bureaucratic option heavily relies on hiring personnel who are qualified to handle jobs in an organization for example bureaucrats with skills and training. Upon embracing this by an organization in decision making it will highly uphold a culture which does not give a room to favouritism which may previously be a threat (O’Reilly, & Reed, 2011)
Bureaucratic option emphasizes the division of labor which is most preferably as it increases efficiency due to continuous and routine of executing the similar job. An organizational decision making regarding this can make an effective change which may build a culture of the division of labor which may not be previously practised which in turn will lead to great efficiency in job performance. The bureaucracy which is associated with central authority lures many people in that a formal way of delegating roles is followed for example from high to low levels. A decision made by an organization to embrace this type of authority upon delegation of duties can greatly help in changing an organizational culture which might not be practising a formal way of delegating duties (Schein, 2010)
People choose the bureaucratic option in that it heavily based on merit-based promotion that is promoting the qualified ones after certifying the given conditions and criteria. An organization therefore through this decision making can effectively establish a culture which is not criticized in anyway for example nepotism. The bureaucratic option provides a job security that is when an employee follows the given rules in his her working department. Through an organization making this decision, a change of culture from where job security is not guaranteed to a culture of where job security is guaranteed which comes with benefits to the employees, for example, a steady salary and other benefits which include retirement pensions and health insurance among others.
A bureaucratic option heavily emphasizes equality where negative vices for example favouritism are not tolerated. An organization can make a decision against this vice hence effectively promoting a culture within an organization which upholds equality. Bureaucracy is most preferably as it can create prediction upon what is set to be achieved. This is made possible by following rules set so as to realize objectives and targeted goals. An organization can embrace the highlighted type of decision making which effectively develops a culture which enables to predict where an organization is headed. Bureaucracy makes the process of merging and acquisition easier as the organizations which are to merge are fully aware of the bureaucracy. An organization working towards the requirements of bureaucracy can, therefore, uphold an effective culture which even if a need arises to merge with other organizations the process will not be hectic (Sursock, 2011).
Conclusion
In conclusion, the bureaucracy has turned out being an option where most people that is those with the responsibility to make decisions in an organization for example managers and the topmost personnel that is the board of directors and the chief executive officers. This is simply due to a formal and a structured way which brings order in the performance of duties which in turn an organization realizes the heavily discussed benefits.
References
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