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Today, bureaucracy is the administrative system governing any large institution, whether publicly owned or privately owned. [3] The public administration in many jurisdictions is an example of bureaucracy, as is any centralized hierarchical structure of an institution, including corporations, societies, nonprofit organisations, and clubs.
To the extent that a base unit of society – usually conceived as an individual citizen – vests authority in a larger unit, such as the state or the local community, authority is centralized. The extent to which this ought to occur, and the ways in which centralized government evolves, forms part of social contract theory .
The structure is totally centralized. The strategic leader makes all key decisions and most communication is done by one on one conversations. It is particularly useful for new (entrepreneurial) business as it enables the founder to control growth and development. [citation needed]
The scholar most closely associated with a theory of bureaucracy is Max Weber. In Economy and Society, his seminal book published in 1922, Weber describes its features. Bureaucracy, as characterized in Weber's terminology of ideal types, is marked by the presence of positions that are earned and not inherited. Rules govern decision-making.
Definition Adhocracy: Rule by a government based on relatively disorganized principles and institutions as compared to a bureaucracy, its exact opposite. Anocracy: A regime type where power is not vested in public institutions (as in a normal democracy) but spread amongst elite groups who are constantly competing with each other for power.
A matrix organization. Matrix management is an organizational structure in which some individuals report to more than one supervisor or leader—relationships described as solid line or dotted line reporting, also understood in context of vertical, horizontal & diagonal communication in organisation for keeping the best output of product or services.
The Administrative State is Dwight Waldo's classic public administration text based on a dissertation written at Yale University.In the book, Waldo argues that democratic states are underpinned by professional and political bureaucracies and that scientific management and efficiency is not the core idea of government bureaucracy, but rather it is service to the public.
Most businesses deal with issues relating to the specifics of centralisation or decentralisation of decision-making. The key question is either whether the authority should manage all the things at the centre of a business (centralised), or whether it should be delegated far away from the centre (decentralised).