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Theory
Max Weber was born in 1864 in Germany. He was concerned at the condition of
authority which is not a function of experience and ability, but earned by social status. Due
to this fact, managers were not loyal to the organization. Organizational resources were
used for the owner’s and manager’s benefit rather than to meet organizational goals.
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. Weber called this type of rational organization a bureaucracy.
The Characteristic of Bureaucracy
Characteristic of
Description
the Bureaucracy
Hierarchical Each level controls the levels below and is controlled by the
Management level above. Authority and responsibilities are clearly
Structure defined for each position.
Even though both theories are trying to achieve the same goal, each one of the
theories had different strategies. Max Weber believed in the theory of bureaucracy and had
6 (six) different principles on how to achieve authority. He also set rules, norms and what
he called SOPs or standard operating procedures. These rules, norm, and SOPs provided
behavioral guidelines that increased the performance of the bureaucratic system because
they specified the best ways to accomplish organizational tasks and these rules, norms, and
SOPs are still present in multinational governments to hospital, armies and universities. On
the other hand, Henri Fayol identified 14 (fourteen) principles of management and he
adopted Weber's principles. He also added recognition of the pivotal role played by
informal authority. Fayol focused on providing a justice and respectful organization for the
workers.
There is a problem with Weber theory and that is so rigid and it didn't allow
employees to have creativity or being innovative; whom Fayol thought, it was important for
the sake of diversity in an organization to allow such creative and innovation. He is the first
person to use Remuneration of Personnel, which is the system that managers use to give a
reward for employees and the amount of reward is equitable for organization. Fayol has
also the first one to propose the idea of long term employees should develop skills that can
improve organization efficiency. Whereas Weber didn't state anything about long term
employees. Weber's theory was about rules to improve efficiency. His second theory
mentioned about workers should occupy positions because of their performance not
because of their social standing or personal contacts which is not coped by Fayol in his
theory.
Source:
Wood, John C.; Wood, Michael C. (2002), Henri Fayol: Critical Evaluations in Business and
Management. Taylor & Francis.