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The iron cage is the one set of rules and laws that we are all subjected and must adhere to. [16] Bureaucracy puts us in an iron cage, which limits individual human freedom and potential instead of a "technological eutopia" that should set us free. [15] [17] It is the way of the institution, where we do not have a choice anymore. [18]
Weber admitted that it was responsible for many advances, particularly freeing humans from traditional, restrictive, and illogical social guidelines. However, he also criticised it for dehumanising individuals as "cogs in the machine" and curtailing their freedom, trapping them in the iron cage of rationality and bureaucracy. [160]
Rationalization (or rationalisation) is the replacement of traditions, values, and emotions as motivators for behavior in society with concepts based on rationality and reason. [2] The term rational is seen in the context of people, their expressions, and or their actions.
In his 1944 work Bureaucracy, the Austrian economist Ludwig von Mises compared bureaucratic management to profit management. Profit management, he argued, is the most effective method of organization when the services rendered may be checked by economic calculation of profit and loss.
One of the most prominent examples of this was the work of German economist and social theorist Max Weber; Weber focused on the organizational structure (i.e. bureaucracy) within society, and the institutionalization created by means of the iron cage which organizational bureaucracies create. In Britain and the United States, the study of ...
Contingency theory of leadership. In the contingency theory of leadership, the success of the leader is a function of various factors in the form of subordinate, task, and/ or group variables. The following theories stress using different styles of leadership appropriate to the needs created by different organizational situations.
As these systems develop in a rational manner, authority takes on a legal-rational form. Those who govern have the legitimate legal right to do so and those subordinated accept the legality of the rulers. Albeit rational-legal authority may be challenged by those subordinated, it is unlikely to result in a quick change in the nature of the system.
To present a more realistic alternative to the economic rationality model, Herbert Simon proposed an alternative model. He felt that management decision-making behavior could be described as follows: In choosing between alternatives, the manager attempts to satisfy or looks for the one which is satisfactory or “good enough”.