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Consider The Relationship Between The Growth Of Industry In The Twentieth Century And The Increasing Use Of Bureaucratic Forms Of Organisational Structure During The Same Period

1709 words - 7 pages

There has been a large amount of growth of industries in the 20th century such as the development of the Asian Tiger Economy and the production of cars and electronics in Britain and Japan.Throughout this period organisations have therefore been faced with increased competition, in particular the manufacturing and service sectors. As a result many large modern organisations have had to adopt their organisational structure away from a democratic approach towards a more bureaucratic, formal organisation with greater control in order to survive and compete effectively (Buchanon and Huczynski 1997).A bureaucratic structure within these organisations is characterised through the specialisation of labour, hierarchy of clear and specific authority and a formal set of written rules to ensure the organisation is managed effectively.Two theorists Weber and Jaques have aimed to create this ideal type of formal organisation through bureaucracy. According to them, bureaucracy is the most efficient way of running large organisations (Buchanon et al 1997). Many organisations have used Jaques theories and methods to great effect.The Industrial Revolution was the take off phase of industrial growth. The invention of the steam engine and consequently trains allowed movement of materials and products from one city to another allowing trade to occur (Needman, Dransfield, Harris and Coles 1995). Advancements in technology over the next twenty years or so resulted in high rates of change in modern society (Finchman and Rhodes 1999) and brought with it the rapid pace of innovation we are familiar with today. Two commentators Max and Smith believed there was a close link between technology and organizational structures. Complex technologies produced rapid growth within industries, however workers had to be reorganised to cope with the complexity of the new working environment. As a result they were developed along rational lines in order to cope with complex procedures.In conjunction with the Industrial Revolution, companies believed that big is powerful. As a result many industries grew in size to become dominant within their market and become market leaders (Making bureaucracy Work). However with increasing growth companies find it harder to manage all their employees efficiently and effectively.Bureaucracy was therefore the obvious solution, with many companies adopting Weber's classic management style of bureaucracy. He developed his own concept for structuring large companies that featured rigid hierarchal structures, defined authority, set rules and regulations and specification of tasks in an impersonal climate (Bureaucracy and Adhocracy).Large organisations use economies of scale as their main weapon for survival within industry. To make use of this tool, the organisation must be ruthless in efficiency and use rational decision making.However with the growth of organisations, the number of employees increases and inevitably supervision of employees and measuring...

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