Porter's model of industrial organization

Theory of Bureaucratic Organizational Models

In organizational theory, the bureaucratic model describes an organization in which activities are divided into a hierarchy of departments and roles and in which thorough standardization of rules and processes are used to ensure smooth operations. The bureaucratic model is typically based on theories proposed by management theorist Max Weber, the founder of modern sociology, in the early 1900s. More recently, the bureaucratic model has been criticized as providing too much structure, making it difficult for organizations to effectively adapt to changing conditions.

Webers Model

Max Weber was a German sociologist and was one of the first to write extensively on bureaucracy and its uses as an efficient means of accomplishing tasks. His theory suggested that organizations could be more efficient and successful if they adopted a more formalized organizational model that standardized procedures and created distinct divisions of labor and authority.

Weber identified several characteristics of the bureaucratic model. He identified hierarchy as one of the most important components, suggesting that organizations should have distinctly defined levels of authority with organized management at the top. He argued for a merit-based system in which supervisors and managers had to prove their worth before being promoted. Weber also called for the standardization of procedures across the organization to reduce unnecessary variation and ambiguities. Additionally, Weber noted the importance of impartial decision-making and suggested that decisions should be based solely on the facts, not on emotions or subjective opinion.

Bureaucratic Organizations

Bureaucratic organizations, as outlined by Weber, take a systematic approach to management. They are organized into rigid roles and hierarchies and feature clear rules and procedures that all employees must follow. Ideally, decisions are based on logic and objectivity, not intuition or passion. The emphasis on objective decision-making is thought to reduce bias and can lead to more consistent outcomes.

The hierarchical structure of a bureaucratic organization ensures clear lines of authority, which makes it easier to assign responsibility and accountability. Additionally, the standardized rules and processes provide order and structure and help ensure that teams are able to efficiently operate and meet goals. The rigidity of the model also creates clear expectations for employee performance and can help prevent purposeful or inadvertent missteps.

Criticisms of Bureaucratic Organizations

One of the major criticisms of the bureaucratic model is that it can lead to overly rigid and inflexible organizations that fail to effectively adapt to changing conditions. Organizations become devoted to rules and processes and are unable or unwilling to innovate or deviate from established norms. Additionally, the bureaucratic models emphasis on rules, regulations, and procedure can have a stifling effect on creativity and can lead to overly cautious management decisions.

The hierarchical structure of bureaucratic organizations can also be problematic, as it creates a top-down approach to management which fails to account for the knowledge and capabilities of lower-level employees. This can lead to an inefficient use of resources, as decisions are often made by people who are not necessarily the best qualified to make them.

Conclusion

The bureaucratic model of organizational structure can be a valuable tool for organizations that seek to streamline operations and ensure consistent quality. However, its rigid rules and hierarchy can make it difficult for organizations to quickly and effectively adapt to new conditions. It is important for organizations to consider how the bureaucratic model may help or hinder their specific goals and strategies.

Robert E. Kotters 8-Step Change Model is a well-known approach to transformational change. First proposed by Kotter in his 1995 book Leading Change, this model is founded on the premise that successful corporate change efforts involve eight logical steps that lead organizations toward success.

The eight steps are: Establish a sense of urgency, Form a powerful guiding coalition, Create a vision, Communicate the vision, Remove obstacles, Create short-term wins, Build on the change, and Anchor the change in corporate culture.

The first step in Kotters model is establishing a sense of urgency. It is essential that leaders make clear the need for change and explain how inaction can cause long-term damage or reduced financial performance. This creates a sense of urgency that is required for successful change initiatives.

The second step is forming a powerful guiding coalition. A successful change initiative needs to have leaders at the highest levels of the organization showing the way. This powerful guiding coalition is necessary to convince skeptical employees of the need to change, overcome inertia, and drive the change process forward.

The third and fourth steps are to create a vision and then communicate it extensively. Organizations must have a clear and well-articulated vision of the future and communicate it widely among employees. Without a shared understanding of where the organization is heading, resistance to change is inevitable.

The fifth step is to remove obstacles to success. This includes things such as outdated strategies, technologies or procedures. It also includes removing those people who are resistant to change for whatever reason.

The sixth step is to create short-term wins. It is necessary for employees to see that change initiatives are successful and that resistance to change is unnecessary. Accomplishing clearly defined short-term goals creates motivation for employees to continue on the path of change.

The seventh step is to build on the change. Now that short-term goals have been achieved, it is important to not only maintain the gains from the change but to continue to move the organization forward. This means further defining the vision, improving processes, and utilizing new strategies that can further the change efforts.

The eighth step is to anchor the change in the corporate culture. It is vitally important that the changes that have been made become embedded in the corporate culture and accepted as “the way we do things here”. Establishing new standards and procedures that support the changes is necessary to ensure successful transformation.

In conclusion, Kotters eight-step change model is an effective approach to organizational change as it helps leaders identify the steps that must be taken in order to successfully implement change in an organization. By following these steps, change initiatives can be successful and long lasting.