![]() Authority and responsibilities are clearly defined for each position. Six Rules of a Bureaucracy Characteristic of the BureaucracyĮach level controls the levels below and is controlled by the level above. They are summarized in the following table. Weber identified six characteristics or rules of a bureaucracy. Weber called this type of rational organization a bureaucracy. Weber was convinced that organizations based on rational authority, where authority was given to the most competent and qualified people, would be more efficient than those based on who you knew. ![]() Organizational resources were used for the benefit of owners and managers rather than to meet organizational goals. Because of this, managers were not loyal to the organization. Weber was concerned that authority was not a function of experience and ability, but won by social status. People were given positions of authority based on their social standing and connections, and businesses were linked by family and social relationships. In Germany, tradition dictated behaviors. He contrasted this with capitalistic practices in Germany where a small group of powerful people controlled the economy. He also realized that businesses were run by professional managers and that they were linked through economic relationships. He noted that capitalism in the United States encouraged competition and innovation. It was here that he observed the spirit of capitalism. Weber visited the United States in 1904 to study the U.S. He believed that large-scale organizations such as factories and government departments were a characteristic of capitalist economies. Weber wanted to know why industrial capitalism was successful in some countries and not in others. Weber was interested in industrial capitalism, an economic system where industry is privately controlled and operated for profit. Weber was born in Germany in 1864 and grew up during the time when industrialization was transforming government, business, and society. Max Weber proposed bureaucracy as the optimum form of organization.
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