Bureaucracy and Formal

Organizations

Chapter 7

“The idea that efficiency and practical results should dominate human affairs.”

The Rationalization of Society

Rationality - using rules, efficiency, and practical results to determine human affairsTraditional Orientation – the idea that the past is the best guide for the present; characterizes tribal, peasant, and feudal societiesThe rationalization of Society – a widespread acceptance that of rationality and social organizations that are built largely around this idea

The Rationalization of Society

Capitalism – an economic system characterized by the private ownership of the means of production, the pursuit of profit, and market competition

The Rationalization of Society

Formal Organizations – a secondary group designed to achieve explicit objectivesBureaucracy – a formal organization with a hierarchy of authority, a clear division a of labor, an impersonality of positions, and an emphasis of written rules, communications, and records

Formal Organizations & Bureaucracies

Alienation – Marx’s term for workers’ lack of connection to the product of their labor (being assigned repetitive tasks on a small part of a product leads to a sense of powerlessness and normlessness); others use the term in the general sense of not feeling a part of somethingPeter Principle– a tongue in cheek observation that the members of an organization are promoted for their accomplishments until they reach their level of incompetence; there they cease to be promoted, remaining at a level at which they can no longer do good work

Formal Organizations & Bureaucracies

Goal Displacement – the adoption of new goals by an organization; also known as goal replacement

Ex. March of Dimes organized in 1930’s to find a cure Polio, when the need depleted, they reorganized for other causes (page 187)

Voluntary Association – a group made up of people who voluntarily organize on the basis of some mutual interest; also known as voluntary memberships and voluntary organizations

Ex. Boy Scouts, Elks, political parties

Shared Interests

The Iron Law of Oligarchy – Robert Michel's term for the tendency of formal organizations to be dominated by a small, self-perpetuating elite

A significant aspect of voluntary organizations is that its key members, its inner circle, often grown distant from its regular members.

Ex. VFW (page 190)

The Iron Law of Oligarchy

Humanizing the Work Setting – organizing a workplace in such a way that it develops rather than impedes human potential (page 193)

Access to Opportunities

Distribute Power More Evenly

Work Teams

Corporate Day Care

Employee Stock Ownership

Humanizing the Work Setting

Google is an example of a workplace that goes out of its way to develop potential. They have elaborate, stimulating decorating and have special break rooms to allow stress free time, even short napping. The next several pictures are of their various offices.

Google