Chapter 2 Rational Organisation Design (Organisational structure and design)

Question 1

What is Rational Organizational Design?

Answer 1

The design of bureaucratic features in the most efficient way to achieve an org’s goals

Question 2

What is Bureaucracy?

Answer 2

Official aspects that facilitate the management of an organization (Hierarchal structure, rules, procedures) that allow for control over an entire organisation

Question 3

What are the 3 elements of Bureaucracy?

Answer 3

Hierarchy/Organisational structure

Rules procedures and policies

Paperworks and records

Question 4

What is the Iron cage of bureaucracy?

Answer 4

• Weber’s critique of bureaucracy % rationality: Inescapable and leads to monotonous routines

Question 5

What is Dehumanisation?

Answer 5

Rules and monotonous routines rather than people acting individually and independently

effect of bureaucracy

Question 6

What is Weber’s (1958) view on Bureaucracy ?

Answer 6

Socialist (Not a management theorist)

• Acknowledged tech efficiency of bureaucracy
• Viewed it as a doubled edge sword due negative effects

Disenchantment (Society loses its magical elements due to bureaucracy’s repetitive routine, and lack of individual spontaneousness & independence, and is dehumanizing and predictable)

Question 7

What is Henry Fayol’s (1949) 5 functions of management?

Answer 7

Planning - Looking into future, calculating/ predicting future circumstances and a plan to respond to said circumstances

Organizing - Building up necessary structures and resources to best meet organizational goals & needs

Co-ordinating - Using structural, human and resource element of org to act in harmony towards goals of org in optimal manner

Commanding - Giving orders & directions to people to achieve org goals to ensure max contribution for workers

Controlling - Monitoring & surveillance to verify & inspect plans are executed properly and check work of employees

Question 8

Weber (1958) Iron Cage of Rationality

Answer 8

• Observed that bureacracy was dominating peoples lives and society
• Leads to him suggesting that humanity is trapped in an iron cage of rationality
• Leaving people with small meaningless jobs and monotonous routines to follow, faceless rules and procedures

Question 9

Weber’s (1958) Formal and Substantive Rationality

Answer 9

Weber’s ideal types of bureaucracy

-Still highly critical of its negative effects, this is just an observation

Formal Rationality - Technical form of rationality that finds most efficient means to achieving an end (Has consequences on society that aren’t rational in human terms)

Substantive Rationality - Rationality that takes into account effects of bureaucracy in human and ethical terms