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Bureaucracy refers to “a component of prescribed organization that employs guiding principles and hierarchical ranking to attain competence” (Kenneth and O'Toole, 2006). In the context of customers and employees, bureaucracy refers to an array of unconstructive forces, actions or attitudes that damage the satisfaction of both clients and employees. From both the individual and organizational perspectives, bureaucracy has numerous negative consequences. Bureaucratic regulations and rules are unlikely to help in case of unexpected situations. Bureaucracy is notoriously autocratic, and blind adherence to guiding principles may inhibit the exact actions vital for the achievement of organizational goals.
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Bureaucracy is prone to creation of “paper trails” and piles of rules, which are usually evident in governmental bureaucracies. “Critics of system of government contend that mountains of paper and rules that slow down the organization’s capacity of achieving its mandated objectives” (Donald, 1971). The government also procures certain items such as the government red tapes, which costs taxpayers’ time and money. For instance, the Peter Principle and Parkinson’s Law are the major laws that explain how officialdom becomes dysfunctional. Parkinson’s Law contends that work creates more work habitually to the point of filling the time requisite to complete the job. According to this law, bureaucracy grows tremendously and managerial staffs are bound to appear busy. In the process, they increase their workload by creating laws and filling forms and evaluations. Additionally, they hire numerous assistants that call for additional supervision time. Several bureaucratic budgets depend on the “lose it or use it” principle, implying the present year’s expenditures determine the next year’s budget (Mieczkowski, 1991). This is one way in which money is wasted and which guarantees an escalating budget. In organizations, the growing bureaucracies serve only the managers who use their powers in controlling workers.
Lastly, bureaucracy costs the effectiveness of most organizations by weakening the morale and obligation of the employees. It divides employees and employers against one another. It also misdirects the energy of employees into unnecessary competition and conflict instead of achieving the organization’s objectives.
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