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UNIT- 1 POM (BBA 1st year)- BUSSINES MANAGEMENT NOTES

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UNIT-1

Introduction of Management:

Management is the first of the modern institutions to shape the society. It plays
a vital role in modern world. It regulates man’s productive energies. It organizes
factors of production.

Peter Drucker observes that without the leadership of management, a country’s


resources of production remain resources and never becomes production.
Management converts a mobilize factors into an organization, and human
efforts into performance. ‘Management’ is the catalyst which makes possible
rapid economic and social development in freedom and with human dignity.
Management is getting things done with effectiveness and efficiency. It is
designing and maintaining an environment in which individuals working
together accomplish selected aims efficiently.

Concept of Management:

The term ‘management’ has been used in different senses. Sometimes it refers
to the Management can be defined as the process of achieving organizational
goals through planning, organizing, staffing, directing, coordinating and
controlling; at other times it is used to describe it as a function of managing
people. It is also referred to as a body of knowledge, a practice and discipline.
There are some who describe management as a technique of leadership and
decision-making while some others have analyzed management as an economic
resource, a factor of production or a system of authority.

Definition of Management:

“Management is the art of directing and inspiring people”.


J. D. Moony and A. C. Railey
“Management is the art of getting things done through others and with formally
organized groups”.
Harold Koontz
“Management consists of planning, organizing, actuating and controlling,
performed to determine and accomplish the objectives by the use of people and
resources”.
George R Terry
Nature of Management

An analysis of the definition of management indicates the following features of


management:

1. Management is an Activity: Management is a process of organized activity.


It is concerned with the efficient use of resources of production. This process is
made up of some interrelated elements-planning, organizing, leading and
controlling. Terry says, “Management is not people, it is an activity.” Those
who perform this activity are performed by managers’.

2. Group Activity: It is concerned with the efforts of a group. It works in


‘cooperative group’. Managers play a vital role for performing group activity.
Management is essential wherever people work together for a common goal.
Management plans, organizes, co-ordinates, directs and controls the group
efforts, not the individual efforts.

3. Management is Universal: Management is uses everywhere when we talk


about a small organization or multinational organization. Management is needed
in all types of organized activities and in all types of organizations. Fayol
writes, “Be it a case of commerce, industry, hospitals, school, college, tourism,
politics, religion, and war in every concern there is a management functions to
be performed.” Also, the techniques and tools of management are universally
applicable.

4. Separate Identity: Management represents a separate class of managerial


personnel who are quite different from the identity of workers and capitalists. It
is a class of administrators and planners. Managers need not to be owners. In
modern industrial society labour, Management and Capital are different entities.

5. It Involves Decision-making: Decision making is a part of management.


Manager is a planner and thinker. He decides the course of action, strategies,
policies and programmes. Drucker states, “Whatever a manager does, he does
through making decisions.” Thus, management is always a decision-making
process. If a manager takes a right decision in organization that’s called
management is exist.

6. It is an Integration Process: It is concerned with the co-ordination of all


activities and resources. It integrates men, machines, money, market, methods
and materials. The essence of management lies in unifying the individual efforts
into a team. Koontz and O’ Donnell write, “Co-ordination is the essence of
manager ship.”

7. It is Intangible: Management is invisible force. Its presence can be feeling


by its results-quality and increased output. It is abstract. It is recognized by its
excellent achievements, higher productivity and motivated personnel.

8. It is a Profession: Management is a young and emerging profession.


Gradually, it is meeting many criteria of a profession. It has a well defined body
of specialized knowledge, formal education and training, prescribed
qualifications to enter the profession the goal of providing service, and code of
conduct for managers.

9. Hierarchical Nature: Management has several positions, ranks, authority


and hierarchies flowing from top to bottom across all levels in the organization.
It has top, middle and bottom levels with superiors and subordinates.
Management contains a chain of authority and command with attached
responsibility. This is known as the managerial hierarchical system of authority.

10. Pervasive at all Levels:Managerial activity essential at all levels of the


organization. It is required at top, middle and supervisory levels for getting
things done through others. Every manager, whether he works at top or low
level, performs the same managerial tasks to do his role. Management is
required in all types of organizations whether it is political, social, cultural or
business because it helps and directs various efforts towards a definite purpose.
Whenever more than one person is engaged in working for a common goal,
management is necessary.

11. Management is Multidimensional: A single activity of business includes


three main acts.

 Management of work- planning, organizing, controlling


 Management of people- staffing, directing
 Management of operations- production, sales, purchase

12. Management is specific discipline: Management is a field of study &


learning. It is organized body of knowledge.

13. Management is both a science and an Art: Management has developed


certain principles and laws which are applicable to any group work. These are
developed through scientific methods of observation and testing. It is also an
art, because it is concerned with the application of knowledge and personal
skills to achieve desired results.

14. It is Dynamic Management: is not a static activity. It adapts itself to the


new changes in society. It also introduces innovation in its style and techniques.
It accepts environmental changes.

Scope of Management:

Although it is difficult to precisely define the scope of management, yet the


following areas are included in it:
1. Subject-Matter of Management: Planning, organizing, directing,
coordinating and controlling are the activities included in the subject matter of
management.
2. Functional Areas of Management: These include:
 Financial Management includes accounting, budgetary control, quality
control, financial planning and managing the overall finances of an
organization.
 Personnel Management includes recruitment, training, transfer
promotion, demotion, retirement, termination, labor-welfare and social
security industrial relations.
 Purchasing management includes inviting tenders for raw materials,
placing orders, entering into contracts and materials control.
 Production Management includes production planning, production
control techniques, quality control and inspection and time and motion
studies.
 Maintenance Management involves proper care and maintenance of the
buildings, plant and machinery.
 Transport Management includes packing, warehousing and
transportation by rail, road and air.
 Distribution Management includes marketing, market research, price-
determination, taking market risk and advertising, publicity and sales
promotion.
 Office Management includes activities to properly manage the layout,
staffing and equipment of the office.
 Development Management involves experimentation and research of
production techniques, markets, etc.
3. Management is an Inter-Disciplinary Approach: For the correct
implementation of the management, it is important to have knowledge of
commerce, economics, sociology, psychology and mathematics.
4. Universal Application: The principles of management can be applied to all
types of organizations irrespective of the nature of tasks that they perform.
5. Essentials of Management: Three essentials of management are:
 Scientific method
 Human relations
 Quantitative technique
6. Modern Management is an Agent of Change: The management techniques
can be modified by proper research and development to improve the
performance of an organization.

Objectives of Management:

1.Getting Maximum Results with Minimum Efforts - The main objective of


management is to secure maximum outputs with minimum efforts & resources.
Management is basically concerned with thinking & utilizing human, material
& financial resources in such a manner that would result in best combination.
This combination results in reduction of various costs.

2.Increasing the Efficiency of factors of Production - Through proper


utilization of various factors of production, their efficiency can be increased to a
great extent which can be obtained by reducing spoilage, wastages and breakage
of all kinds, this in turn leads to saving of time, effort and money which is
essential for the growth & prosperity of the enterprise.

3.Maximum Prosperity for Employer & Employees - Management ensures


smooth and coordinated functioning of the enterprise. This in turn helps in
providing maximum benefits to the employee in the shape of good working
condition, suitable wage system, incentive plans on the one hand and higher
profits to the employer on the other hand.

4.Human betterment & Social Justice - Management serves as a tool for the
upliftment as well as betterment of the society. Through increased productivity
& employment, management ensures better standards of living for the society. It
provides justice through its uniform policies.
Importance of Management

Management is must for every enterprise. The existence of management ensures


proper functioning and running of an enterprise. Management can plan the
activities to achieve the objectives and utilize the available resources at
minimum cost. Every business needs a direction. This direction is given by the
management. The resources of production are converted into production. The
resources will remain as resources in the absence of management. The
conversion process is performed through the coordination of management. The
significance or importance of management is briefly explained below:

1. Management meets the challenge of alteration: In the modern business


world, there are frequent changes. The changes place the business in a
dangerous position. Only an efficient management can save the business from
the dangers brought in by the challenges.

2. Accomplishment of group goals: The achievement of objectives of a


business depends upon three factors. The proper planning of available
resources, adjusting possibility of business unit with existing business
environment and the quality of decision taken and control made by the business
unit are the factors responsible for achieving objectives.

3. Effective utilization of business: There are eight M’s in the business. These
are said to be man, money, materials, machines, methods, motivation, markets
and management. Management is the topmost of all other ‘Ms’. Management
has control over other remaining ‘Ms’.

4. Effective functioning of business: Ability, experience, mutual


understanding, co-ordination, motivation and supervision are some of the
factors responsible for the effective functioning of business. Management
makes sure that the abilities of workers are properly used and co-operation is
obtained with the help of mutual understanding. Besides, management can
know the expectation of workers and the expectation is fulfilled through
motivation techniques.

5. Resources development: Efficient management is the life boat of any


developed business. The resources of the business may be identified and
developed by the management. The term ‘resources’ includes men, money
material and machines.
6. Sound organization structure: Management lays down the foundation for
sound organization structure. Sound organization structure clearly defines the
authority and responsibility relationship-who is responsible to whom, who will
command whom and who is responsible for what. Care is taken in appointing
qualified persons to the right job by the management.

7. Management directs the organization: The human mind directs and


controls the functioning of human body. Similarly, the management directs and
controls the functioning of an organization.

8. Integrates various interests: Each person has his own interests these
interests are different in nature. Management takes steps to integrate various
interests to achieve the objectives of an organization.

9. Stability: The fluctuations of business are stabilized by the management. The


fluctuations of business are caused by the changing policy of the government,
pressures on the part of competitors and changing preference of customers. The
efficient management can run the business as per the policy framed y the
government, face the competitors in the market and produce the articles as per
the preference of customers.

10. Innovation: New ideas are developed by the management and implements
in the organization. Better performance is achieved through new ideas.

11. Co-ordination and Team-spirit: All the activities of business are grouped
department-wise. Management co-ordinates the activities of different
departments and establishes team-spirit to achieve the objectives.

12. Tackling problems: Good Management acts as a friend or a guide of


workers while tackling problems. When workers get over confidence of solving
the problems for effective performance of a job, they fail in tackling the
problems efficiently.

13. A tool for personality development: Management gives direction to


workers for effective performance of a job. Besides, new methods or techniques
are taught to workers. The training facilities are arranged by the management. In
this way, management is a tool to develop the personality of workers to raise
their efficiency and productivity ability.
Functions of Management

Functions are the activities that a manager must perform as a result of the
position held in the organization. The best way to analyses the management
process is in terms of what a manager does. Generally the basic functions of
management are: planning, organizing, staffing, directing and controlling. As
managing is a dynamic and challenging activity, it includes three kinds of
functions and tasks which are common to all managerial jobs. The list of
management functions can be presented as follows:

 Basic Functions
 1. Planning 2. Organizing 3. Staffing 4. Directing 5. Controlling
 Dynamic Functions
 1. Co-coordinating 2. Decision Making 3. Representation 4.
Innovation 5. Administration
 Challenging Functions
 1. Managing Work 2. Managing People 3. Managing Operations 4.
Managing Change 5. Managing Time 6. Strategy Formulation and
Action 7. Economic Performance 8. Making Work Productive and the
Worker Achieving 9. Managing Social Impacts and Social
Responsibilities

Basic Functions

1. Planning is one of the most important functions because it sets the pattern for
the other activities to follow. Planning function for the new era is more broadly
described as delivering strategic value. It is a primary and crucial function
which determines how to achieve an objective-deciding what is to be done and
when to do it. It is looking ahead and preparing for the future.

2.Organizing: Organizing is the process by which the structure and allocation


of jobs are determined. To organize a business is to provide it with everything
useful to its functioning.

3.Staffing: Staffing is the process of planning, recruiting, developing,


compensating and maintaining human resources in an organization. In staffing,
a manager recruits and selects suitable personnel (according to their ability
management provide work to employee) for manning the jobs.

4.Directing: This is also termed leading or actuating. While planning tells us


what to do and organizing tells us how to do directing tells us why the
employees should want to do it. Directing is concerned with guiding and
leading people. It consists of supervising and motivating the subordinates
towards the achievement of set goals. (i) Communication (ii) Command (iii)
Motivation (iv) Leadership (v) Supervision (vi) Controlling

5.Controlling: Controlling is evaluating the performance and applying


corrective measures so that the performance takes place according to plans. It is
reviewing the performance of the employees in the light of the targets and goals.

Evolution of Management Thought:

Scientific Management: Taylor contribution

Systematic development of management thought started with the scientific


management movement which is said to have its origin as early as 1830s. The
man who popularized the movement is Fredrick Winslow Taylor. He is known
as the father of scientific management. Life and works of Taylor (1856-1915):
Fredrick Winslow Taylor, who is known as the father of scientific management,
was born in 1856 in Philadelphia, USA.

He started his career as an apprentice in a small machine-making shop in 1875.


Thereafter, Taylor served in three companies: (i) Midwell Steel Co., (ii)
Simonds Rolling Machine Co., and (iii) Bethlehem Steel Co. Taylor joined
Midwell Steel Works in 1878 where he did time study and evolved one best
method of doing each part of a job. He introduced differential rate system of
wages.

Philosophy and Principles of Taylor:

1. Develop a science to replace rules of thumb : Taylor wanted to make


management as a science. He, therefore, recommended that every activity of an
organisation must rest on well organized, clearly defined principles, instead of
depending on more or less hazy idea.

2. Maximization of output or production: Taylor believed maximum output


instead of restricted output. It is because the prosperity for both employer and
employees could be achieved only through maximizing productivity.

3. Equal division of responsibility: There should be equal division of


responsibility between managers and workers. Managers must fulfill their
responsibility of planning and organising effectively. On the other hand,
workers must fulfill their responsibility by executing the work as per the
directions of the ‘bosses’.

4. Job specialisation: Taylor believed that each worker should be specialist in


his job. At the same time, each worker must be supervised by different
specialist supervisors.

5. Scientific selection, training and development of workers : Taylor realized


the importance of right person for the right job to attain highest efficiency. He
therefore, stressed the need for proper selection and training of the workers.

6. Standardisation: Taylor believed standardisation of methods, tools, time,


materials etc. for each activity is very important. Therefore, standards should be
fixed for each of them.

7. Wage incentives: Taylor believed that wage incentives should be integral


part of each job. Taylor suggested the differential wage rate for different job.

8. Mental revolution: Taylor firmly believed that the principles of scientific


management could succeed only when there is a complete mental revolution on
the part of management and worker. In other words, both the parties should
change their mental attitudes. For this, he suggested the following three things:

 They must create a spirit of mutual trust and confidence.


 Both must make efforts to increase production n and productivity.
 Both must develop a scientific attitude towards the work and should not
leave their arbitrary approach. The mental revolution requires change in
the attitude of both. Management must create congenial working
conditions and develop best method and tools for optimum efficiency of
the workers.

Contribution of Taylor

1. Scientific task setting: Taylor suggested that the task of every worker for
every day should be determined through scientific investigation. Taylor called it
“a fair day’s work”. Every manager must know in advance the fair day’s work
for each worker.

2. Experimentation or work study: Work study means organised, systematic


and objective analysis and assessment of the operational efficiency of all the
elements connected with the work.
 Method study: It is a survey of production process. It aims to evolve the
best method of doing a particular job by simplifying the production
process, methods, tools etc.
 Motion study: Motion study relates to the study of movements of a
worker or a machine in doing a job. It aims at eliminating unnecessary
motions and to find out the best method of doing of doing a job
efficiently.
 Time study:- Time study is the process of recording the exact time taken
for doing a job with a view to find out a standard time for doing the job.
 Fatigue study: Fatigue study is the study of the reduction or diminution
of human energy or capacity in doing in his job. Fatigue is caused by
over-work without rest pause, poor working conditions, stress, strain etc.
The fatigue study is undertaken to know the level and nature of fatigue
and to find out the ways to eliminate or minimize the fatigue on the job.

3. Planning: Taylor advocated that planning function should be separate from


the doing function. Planning department should decide about the type, shape,
and quality of the goods to be produced and the time schedule for delivery of
the products.

4. Scientific selection and training of workers : Taylor realized the importance


of the right person on the right job. Therefore, he advised for proper selection of
the workers and their training.

5. Specialization: Taylor suggested that scientifically selected and trained


workers should be allocated the tasks according to their specialisation.

6. Standardization: Taylor advocated for standardization of materials, tools,


equipments, methods etc. Standardized working environment should also be
provided to the workers. Standardization will increased efficiency and eliminate
or minimize wastage of resource.

7. Incentive wage plan: Taylor considered that incentive wage plan is an


integral part of the scientific management. He therefore suggested a differential
wage payment plan. According to this plan, worker is to receive a bonus in
addition to his wages if the completed his job before the standard time fixed for
the job.

Administrative Theory: Henri Fayol (1841-1925):


Henri Fayol was a French mining engineer and chief executive officer of a coal
mine company. He propounded the administrative or functional theory of
management.

1. Administrative management thought era run almost parallel to the scientific


management thought era. Henri Fayol is regarded as the herald of the
administrative thought. Other contributors include Urwick, Mooney and Reiley,
Davis etc.

2. Elements of administration or management function:

Fayol described five elements of administration or management functions. They


are as follows:

(i) Planning, consisting of activities for making plans to achieve goal of the
organisation. This function includes forecasting and decision-making.

(ii) Organising, consisting of activities necessary for mobilising human and


other resources of the organisation to implement the plans.

(iii) Commanding, which consists a activities relating to directing, leading,


motivating and communicating for getting things done.

(iv) Coordinating, which is concerned with activities necessary for harmonising


the efforts of all in order to achieve a common goal.

(v) Controlling, which is concerned with ensuring performance in accordance


with plans.

3. Principle of management: Fayol proposed fourteen principles of


management.

4. Flexible and adaptable principles: Fayol made it clear that the principle of
management are flexible and adaptable to every need.

5. Universal principles: He believed that principles of management are


universally applicable. The principles are applicable in all organisations large or
small, industrial, commercial, political, religious, or any other.

6. Management education and training: Fayol realised the need for


management education and training. He strongly pleased for introducing
management education and training in schools and universities. He also
suggested for conducting organizational ‘in-house’ training programmes.
Fayol’s Fourteen principle of Manangement

1. Division of Work: To divide work among departments and employees


according to requirement & owned activities & skills to get benefit of
specialization & avoid time wastage. It says that every employee should be
assigned only one of type of work else there will be waste of time and effort
caused by changes from one work process to another.

2. Authority and Responsibility: Authority means right to give orders and


power to exact obedience. Responsibility is assignment of tasks and act to be
completed in availability of resources accountability extent to which person can
be made liable to answer for acts. Fayol said Authority and Responsibility are
co existence in nature and must go hand in hard with proper parity in between.
Authority without responsibility heads to irresponsible behavior &
responsibility without authority makes manager in effective.

3. Discipline Implies compliance with organizational directions and rules,


orders and instructions of superior & to cooperation with fellow workers. He
considered discipline as the chief strength of organization and essential for
smooth operation. Discipline generally depends essentially on ability of its
leaders. Fayol said best means of maintaining discipline are - Goods superiors at
all levels - Clear & fair agreements between employees & employer - Judicious
application of penalties.

4. Unity of command According To this principle one subordinate should get


orders and institutions regarding his work only from one superior. If a
subordinate has more than one superior. It will undermine authority weaken
discipline create divided loyalty and Lead to confusion, delays due to conflict in
instructions & most important it would be difficult to pinpoint responsibility to
him.

5. Unity of Direction Means that the there should be complete identify between
individual and organizational goals on one hand and between departmental
goals on the other i.e. one head & one plan for a group of acts having the same
objective. In other words the related acts should be put under one group, these
should be one plan of action for them & they should be under the control of one
particular manager.

6. Reading subordinate of individual interest to General interest : This


principle emphasizes that the interest of one employee or group of employees
should not prevail over that of the concern Fayol suggested these means to
protect the general interest. They are - Firmness and good ex on part of
superiors - Agreement as join as in possible - Constant supervision

7. Remuneration of personnel: Fayol said that the remuneration & methods of


payment should be fair and afford the maximum possible satisfaction to
employees & employer. Time, job, piece rates, bonus, profit saving, welfare
work, Nonfinancial incentives should be included in best scheme of payment.

8. Centralization: Centralization refers to decreasing role of subordination in


decision making Fayol says Centralization is not a system of management
goods or bad of itself. Centralization implies the Centralization of authority at
the top management. Relationship between Centralization & decentralization of
authority is a matter of proportion & optimum balance should be maintained
according to needs of organization.

9. Scalar chain: Scalar chain refers to the chain of superiors ranging from the
ultimate authority to lowest ranks. There should be clear line of authority
ranging from top to bottom of organization the line of authority is the route
followed via every link in the chain by all communication which start from as
go the ultimate authority Fayol suggested the concept ‘gang plank’ which is
used to prevent the scalar chain from bogging down action.

10. Order: To run well an organization should have a place of everything and
everything should be in its place. These should be an orderly rationally thought
out plan for arranging the things and material in their suitable places. There are
two order material and social

11. Equity: The organizations runs best when there is a feeling of kindliness
and justice among managers. Desire for equity & equality of treatment are the
common aspirations of employees.

12. Stability of tenure of personnel: Efficiency is promoted when job security


is assured to employees, Time is required for an employee to get used to new
work & succeed in doing it well. An employee cannot render worthwhile
service if he is removed from the job before he is adjusted.

13. Initiative: Initiative refers to the freedom to thinks out a plan and use
discretion in executing. It is a freedom to propose and to execute.
14. Esprit de corps: This principle says that “in union there is strength”
Harmony, teamwork and union among the employees is a great strength in a
concern the morale of an organization people is an asset Fayol exhorts that the
misguided motto ‘divide and rule and the abuse of written communication
should be avoided by manager rather they should strive to maintain cooperation
among employees.

Similarities of Taylor and Fayol:

 Both devoted to put science into management.


 Both devoted to the development of management thought.
 Both were concerned with the improvement of practice of management.
 Both men favoured the development of theory and principles to improve
management practice.
 Both emphasised the need for cooperation between labour and
management.
 Both realised the universality of management.

The Dissimilarities between the two are as follows:

 Taylor’s work is primarily concerned with the operative level at the shop
level while Fayol’s work is concerned with management at top and
middle levels.
 Taylor started from the bottom of the managerial hierarchy and had
worker upwards whereas Fayol started from the top executive position
and worked downwards.
 Taylor was concerned with increasing efficiency of labour whereas Fayol
was concerned with with increasing efficiency of total organisation.
 Taylor aimed at increasing productivity by eliminating or reducing
inefficiency and waste. On the other hand, Fayol aimed at organisational
efficiency through application of management principles.
 Taylor described his philosophy as ‘Scientific management’ whereas
Fayol called his views as ‘General theory of administration’.
 Taylor is known as the father of scientific management whereas Fayol is
recognised as the father of modern management theory.
 Fayol recognized the need of education and training in schools and
colleges whereas Taylor did not so realize. Fayol was a top executive, and
therefore, was in a better position to look at the functions of a manager
than Taylor.

C. Bureaucratic Management Approach of Max Weber Max Weber (1864-


1920),

a German sociologist; he described a theory to operate an organization in


effective way which is known as the Bureaucratic management approach or
Weberian bureaucracy. Max Weber's work was oftentimes interpreted as a
caricature of modern bureaucracies with all of their shortcomings.

Features of Bureaucratic Organization from the principles of bureaucratic


organization we can find these characteristics or features of

 Bureaucratic Organization are as follows:- High degree of Division of


Labor and Specialization.
 There is a well-defined chain of command.
 It follows the principle of Rationality, Objectively and Consistency.
 The relationship among the member of the organization is Formal and
Impersonal relations. And
 It’s based on positions and not on personalities. Rules and Regulations
are well defined and it indicates the duties and rights of the employees.
 These rules apply to everyone from to bottom of organization and must
be strictly followed. Selection and Promotion is based on Technical
qualifications.
 Only Bureaucratic or legal power is given importance

Criticism of Bureaucratic Organization Bureaucratic

Management Approach of Max Weber also has some fault-lines and received
criticism for it.

 The emphasis only on rules and regulations.


 There will be unnecessary delay in decision-making due to formalities
and rules of Bureaucratic Organization.
 Coordination and communication hampered because of too much
formality and rules.
 Bureaucracy involves a lot of paper work and has just too much level of
authority which results in lot of wastage of time, effort and money. Not
ideal for efficiency.
 Because of its too much formality, Bureaucratic approach is not suitable
for business organizations. Bureaucratic model may be suitable for
government organizations.
 Too much importance is given to the technical qualifications of the
employees for promotion and transfers. Dedication and commitment of
the employee is not considered.
 Limited scope for Human Resource (HR). No importance is given to
informal groups and neither any scope is given to form one.
 Max Weber’s bureaucratic approach worked as a solution to problems of
traditional administrative systems. But it was not the prefect or “close to
perfect” solution. The bureaucratic structure gives all the importance and
power to the top level management.
And the rules and levels of authority are just too much. It gives a greater
sense of security to the employees.

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