Bureaucratic Organisation

Marketing dictionary

Bureaucratic Organisation

This term is associated with government, where official decision making is circumscribed by laws, rules, and regulations which often result in inflexibility, "red tape", and slowness to act. The term is sometimes applied to the hierarchical business structure, which is thought to lead to slow decision making and slow response to change. It should be noted, however, that business-unlike government operates in a competitive environment that does not reward slow decision making if it results in poor sales or customer service. Comment: To combat any tendency towards bureaucracy, particularly in large corporations, companies have speeded up decision making by measures such as decentralized and flatter organisation structures along with computerized information and communication systems that alert management quickly to problems requiring resolution. Source: AMA

See: Centralised Management Decentralised Management Divisional Organisation Flat Organisation Functional Organisation Hierarchical Organisation Market Management Organisation

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