Definition

The word comes from the Greek hierarchēs, which was formed by combining the words hieros, meaning “supernatural, holy,” and archos,
meaning. “ruler.”

Literally, the term 'hierarchy" means the rule or control of the higher over the lower. In administration, hierarchy means a graded organization of
several successive steps or levels which are interlinked with each other. It is a method where the efforts of various individuals in an organization
are integrated with each other. In every large-scale organization, there are a few who command and there are others who are commanded. This
leads to the creation of superior-subordinate relationship through a number of chain of responsibility reaching from the top to the bottom in an
organization. Thus, a pyramidical type of structure is built up which Mooney and Reiley call the 'Scalar Process' . Here, scalar means the grading
of duties according to degrees of authority and corresponding responsibility. According to Mooney, this scale or scalar chain is a universal
phenomena. Wherever an organization of people related as superior and subordinate is found, the scalar principle can also be seen.

L.D. White says: "Hierarchy consists of the universal application of the superior-subordinate relationship through a number of levels of
responsibility reaching from the top to the bottom of the structure".

Earl Latham has defined hierarchy as "an ordered structure of inferior and superior beings in an ascending scale. The good chief dwells at the
apex from which, with his terrible eye, he can search out the hearts of his lowest subordinates and mold their deed to his command".

J.D. Millet defined hierarchy as a method whereby efforts of different individuals are geared together"

Robert Presthus- "hierarchy is a system of ranking positions along a descending scale from the top to the bottom of an organization."

Max Weber- the organization of offices follows the principle of hierarchy, that is, each lower office is under the control and supervision of a
higher one.

. Flow of Authority
The flow of the authority is explain in the following diagram.
A
B F
C G
D H
E I
The above diagram shows that “B” is subordinate to “A”, “C” is subordinate “B”, “D” is subordinate to “C”, “E” is subordinate to “D”. If “A” wants
to communicate to “E” he has to communicate through “B, “C and D”. If “E” wants to communicate to “A” he can do it only through “D” “C” and
“B”. If “E” wants to communicate to “I”, the communication should pass through “D”, “B” to “A” and from “A” to “I” through “F”, “G” and “H”. In
other words in the principle of hierarchy communications passes through “F” “G”, and “H”. In other words in principle of hierarchy communication
passes through proper channel. It means that authority runs step by step whether upwards or downwards. The person in authority delegates his
authority to the subordinate officials who exercises control over the others. The whole organization is this linked in a chain and the activities of all
are thereby properly co ordinated.
Advantage
According to Mooney the principle of hierarchy is the universal principle of organization because no organization can be created without the
principle of hierarchy. There are few advantages in the principle of hierarchy.

1. It is the system by means of which the various units of an organization are integrated or linked together. No organization can function
effectively unless its different units are integrated into a coherent whole. Hierarchy is an instrument of organizational integration. As
observed by M.P. Sharma, "It is an instrument of organizational integration and , coherence. It is to the organizational structure what mortar
or cement is to building structure".
2. Hierarchy facilitates communication upward and downward. Everyone in the organization knows to whom he has to address his
communication, and through whom his communication can reach the highest official of the organization.
3. Hierarchy is based on the principle of delegation of authority. Thus, so many centers of decision are established. There is no congestion or
concentration of work at one center. The chief executive is relieved of the burden of making every decision himself.
4. The scalar system helps to clarify and define the relative position and responsibilities of each post in the organization. Larger organizations
must manage a variety of diverse tasks, ranging from human resources and accounting to marketing and purchasing. The hierarchical
structure divides these areas of concern into various department configurations that specialize. Specialization allows organizations to
concentrate particular skill sets and resources to achieve maximum efficiency.
5. When the organization is very big and its network is spread to many distant places, contacts between the center and the distant parts can still
be maintained through hierarchical gradation.
6. The workers who are part of the hierarchical structure of a company know perfectly what is the next rank to achieve in the organization,
which makes it easier to keep staff motivation high.
7. There is no scope for indecisiveness as there is always someone heading a department. You cannot hide from owning your responsibilities
and accountability in a hierarchal organization
8. Accountability The company assigns roles and responsibilities to each managerial layer. Then, companies hold managers accountable for their
actions or decisions.
According to Paul H. Appleby, hierarchy is the means by which resources are apportioned, personnel selected and assigned, operations
activated, reviewed and modified.
Disadvantage
Peter Self does not hold favorable opinion about hierarchy. In governmental system the application of this policy or idea is not a realistic one. Let us
see what he says: “A hierarchical image of government is not very realistic… This is because the procedural rules or conventions which legitimize the
ultimate exercise of authority are rarely clear enough.”

1. Information flow is from the bottom to the top but very little from top to bottom. This can cramp any initiative shown by the lower levels
2. It takes a lot of time in making and implementing viable decisions as the chain of command has to be followed, and it moves gradually and
slowly.
3. There is very little flexibility as the structure is not at all adaptable to change. It also reduces the chance of internal innovation as managers
do not encourage the sharing of ideas from their subordinates.
4. The organization is slow in reacting to environmental and competitive pressures
5. The additional corporate overhead is immense as it requires a large sum to support the senior management group. This leads to low profits
6. Decisions are made for the department as everyone is concerned about his role and responsibility, not the ultimate vision and goal of the
organization. There is a lack of collaboration as teams stay in their comfort zone within their defined structures. It becomes very difficult o
accomplish collaboration outside the departments
7. In a hierarchical organization, managers tend to become territorial. Instead of looking at the organization as a whole they are worried about
their department only and often creates a competitive atmosphere that is not fruitful for the company
8. It creates a communication barrier as you do not have direct access to the people who are way above your level.
9. Lack of autonomy can lead to strained employee-manager relationships. Employees feel they are not valued and perceive managers as
controlling and supervising too tightly.
10. It creates a structure of unequal treatment.
11. Far too often, the top of the pyramid is given far too much respect, while those at the bottom of the pyramid are given far too little. When
there isn’t equality in the respect being provided, workers become less motivated, they can become less respectful. They may even decide to
quit, which is problematic if that person is a high-skill worker or key employee. These issues become even more problematic if the leadership
team is awarded perks that may not have been earned.
Bureaucracy
The term "bureaucracy" originated in the French language: it combines the French word bureau – desk or office – with the Greek word (kratos) –
rule or political power.
The term Bureaucracy basically refers to a system of government in which most of the important decisions are taken by the state officials rather
than by elected representatives. In simple terms it can be said that Bureaucracy refers to a body of government officials who are not elected but
form an administrative policy making group. In old times, bureaucracy only referred to a government administration which was formed by non-
elected officials and run by departments that are employed by them.
In today’s times, bureaucracy refers to an administration that governs any large institution in the private as well as public sector. Bureaucracy is a
way of administratively bringing people who need to work together under one organization. In the modern world, almost all organizations
including universities and governments in both the public and private sector rely on bureaucracies for proper functioning. The main job of
bureaucrats is to implement a policy, take laws and decisions made by the officials and bring them into action. Some bureaucrats also write
rules and regulations to implement a government policy while there are some who directly administer policies to people.
The German sociologist Max Weber (1864–1920) was one of the foremost theorists of bureaucracy. At the end of the 19th-century, Max Weber
(1905). The author of The Protestant Ethic and the Spirit of Capitalism was the first to describe and use the word bureaucracy. . He described the
ideal characteristics of bureaucracies and explained the historical development of bureaucratic organizations. Weber held that bureaucracy was
more satisfying than traditional structures and the most effective way to set up an organization and administration. In a bureaucratic
organization, everybody is treated similarly, and the division of work is clearly portrayed for every employee [10]. Max Weber criticized
organizations from running their company Like a family. Un Weber bureaucracy, there is no room for inherited leadership or popularly elected
managers.
The definition of Weberian bureaucracy as provided by Max Weber is: ‘Bureaucracy is an organizational structure that is characterized by many
rules, standardized processes, procedures and requirements, number of desks, the meticulous division of labor and responsibility, clear
hierarchies and professional interactions between employees that are almost impersonal’

According to Max Weber, bureaucracy is a structure that must be implemented in all big organizations. He proposed this to ensure the structural
operation of all tasks by a huge number of employees. Furthermore, in Max Weber’s bureaucracy, qualifications and competence are the only
basis for hiring and promotion of workers. This is also known as the bureaucratic theory of management, bureaucratic management theory or the
Max Weber theory.
According to this theory of Max Weber, bureaucracy is the basis for the systematic formation of any organization and is designed to ensure
efficiency and economic effectiveness.
It is an ideal model for management and its administration to bring an organization's power structure into focus. With these observations, he lays
down the basic principles of bureaucracy and emphasizes the division of labor, hierarchy, rules and impersonal relationship.
Max Weber’s Six Principles Of Bureaucracy
There are specific features of Max Weber’s bureaucracy, which are also known as Max Weber’s six principles of bureaucracy.
Here are the six major Max Weber characteristics of bureaucracy:
1. Task Specialization
2. Formal Selection
3. Impersonal (Impersonality And Personal Indifference)
4. Hierarchical Layers Of Authority
5. Rules And Regulations
6. Career Orientation

1. Task specialization
The Max Weber Theory of Bureaucracy proposes that all business tasks must be divided among the employees. The basis for the division of tasks
should be competencies and functional specializations. In this way, the workers will be well aware of their role and worth in the organization and
know what is expected of them.
The theory states that division of labor based on expertise and skills is immensely beneficial for any business. This also ensures that each
department has specific tasks and also, workers to oversee those tasks.
The tasks are carried out smoothly and easily in this manner because managers know who is working on exactly what. The accountability of each
task and each department is transparent. In Max Weber’s bureaucracy, each employee is clearly aware of their responsibilities and going beyond
ones specialty or helping colleagues is not allowed.

2. Hierarchical layers of authority

Managers are organized into hierarchical layers, where each layer of management is responsible for its staff and overall performance. In
bureaucratic organizational structures, there are many hierarchical positions. This is essentially the trademark and foundation of a bureaucracy.
The hierarchy of authority is a system in which different positions are related in order of precedence and in which the highest rank on the ladder
has the greatest power. The bottom layers of bureaucratic organizational structures are always subject to supervision and control of higher
layers.
This hierarchy reflects lines of bureaucratic communication and the degree of delegation and clearly lays out how powers and responsibilities
are divided.
3. Formal selection
All employees are selected on the basis of technical skills and competences, which have been acquired through training, education and
experience.
One of the basic principles is that employees are paid for their services and that level of their salary is dependent on their position. Their contract
terms are determined by organizational rules and requirements and the employee has no ownership interest in the company.
4. Rules and requirements
Formal rules and requirements are required to ensure uniformity, so that employees know exactly what is expected of them. In this sense, the
rules and requirements can be considered predictable.
All administrative processes are defined in the official rules. By enforcing strict rules, the organization can more easily achieve uniformity and all
employee efforts can be better coordinated. The rules and requirements are more or less stable and always formalized in so-called official reports.
Should new rules and requirements be introduced, then senior management or directors are responsible for this.
5. Impersonal
Another principle of the bureaucratic theory is that the relationships among employees and between managers and employees must be
impersonal. They should only be of a professional nature and, thereby, distant. Weber included this principle in his theory because he felt it
would eliminate nepotism, politics and outsider involvement.
The impersonal relationships are a prominent feature of Max Weber’s bureaucracy. Employees are not allowed to interfere with the affairs of
other employees, managers and the organization. Communication among the employees should not involve emotions, personal sharing and
feelings. The decision-making process must only involve rationality instead of emotions.

6. Career orientation
Employees of a bureaucratic organization are selected on the basis of their expertise. This helps in the deployment of the right people in the right
positions and thereby optimally utilizing human capital.
In a bureaucracy, it is possible to build a career on the basis of experience and expertise.
As a result, it offers lifetime employment. The right division of labor within a bureaucratic organization also allows employees to specialize
themselves further, so that they may become experts in their own field and significantly improve their performance.

Criticism of Weberian Concept of Bureaucracy:

Ideal type bureaucracy is a mental model:
Weber wanted to construct an “ideal type” or a fully well developed bureaucracy. The ideal type is a mental model that cannot be found in reality.
It is concept conveying an image or an idea.
Anti-democratic:
Weber’s concept of bureaucracy is against the principle of democracy. Weber analyzed the possible ill effects of a bureaucratic system while
functioning in a democratic order. He noted that permanent officials may be inclined often to misuse their authority. Bureaucratization which
tends to concentrate power in the hands of an administrative elite militates against the principles of democracy.
Too Rigid to Change:
Critics of weber’s bureaucratic model say that “the weberian model can best function in a stable environment with routine and repetitive tasks. Its
capacity for adaptation to change is limited. The model is dysfunctional in terms of development and also in terms of jobs involving innovation and
creativity.
In the developing countries where rapid change is required to bring about socio-economic transformation, the traditional structure of bureaucracy
is misfit to meet the tasks. Thus the bureaucratic model is criticized as a too rigid and inflexible model to bring dynamic changes in the
administration.
Ignores Informal Relationship:
Another important criticism against the Weberian model is that it ignores informal relationship, informal norms and values in the organization. It
study only the formal bureaucratic structure.
Besides, the Weberian model has been criticized by several thinkers. According to the behavioral thinker, Herbert Simon and Chester Barnard
administrative efficiency of an organization would be reduced by following Weber’s structural approach and that efficiency could be increased
through informal organizations and better human relations.
Lloyd and Susanne Rudolph have also argued that the Weberian model is not necessarily the most rational and effective organizational structure in
terms of efficiency. In his New Despotism, Lord Hewart argued that citizen rights and liberties are now in jeopardy because Weber’s bureaucrat
exercises a lot of discretionary power which is against the principles of democracy.
Social scientists like Warren Bennis have also predicted that the bureaucratic form is outmoded and it is disappeared in the new developing
societies.
Riggs also observed that Weber’s ideal type of bureaucracy assumes a relatively autonomous administrative system and thus, it is irrelevant to the
developing societies. In the developing countries, the administrative structure do not enjoy sufficient autonomy from other social structure
whereas in developed societies they are comparatively more autonomous. Weber’s, bureaucratic theory is also criticized system model over
emphasizing the formal rational aspects of bureaucracy. It neglected the human behavior, relation, morale and motivational factor.
Max Weber has himself stated that a bureaucracy is the means of carrying community action over societal action. Therefore, as an instrument for
socializing relationships of power, bureaucracy has been and is a powerful instrument of the first order R.K. Merton has argued that bureaucracy
emphasis more on rules and regulations rather than on goals and objectives. It is marked by lack of public relations and class consciousness on the
part of bureaurats.
One Way Communication: The bureaucracy theory emphasizes on the passing of information, i.e., tasks, orders, rules and regulations, from the
top-level management to the bottom level; however, feedback concerning the operational issues and other suggestions are not taken from the
employees.
The exploitation of Power: In a bureaucracy, managers have a higher authority which can be misused by them to meet their interest or to
dominate their subordinates.
In dealing with people, total impersonal approach cannot be adopted because people have feelings, emotions and sentiments which affect
decision. Thus, people cannot work totally according to rules and prescriptions.
What is the role of Bureaucracy?
The main and the most crucial role of the bureaucracy is the implementation of the policies that have been laid down by the government. The
legislation provides the basic outline and policy frames for the council of ministers. Then the implementation of the policy is carried out by the
bureaucracy. This burden which has been imposed upon the bureaucracy is both new as well as crucial. Along with this, the old roles of income
collection and law and order management remain as before. The further accelerating process is both modern and comparatively significant than
the old roles and functions.
As India is a developing country, the bureaucracy in India has an important and robust task of turning a developing state into a functioning one. In
developed countries the bureaucracy does not have to play this role. As developing a nation within a short period of time and with limited
resources is no joke, the bureaucracy in India has a robust task at hand and carries the huge responsibility of development.
Apart from the above major role that bureaucracy plays in development of the nation, there are some more important roles carried out by the
Indian Bureaucracy. These are as follows:
1. Running the administration As we have already discussed above, one of the important roles of bureaucracy is ensuring that the administration
is running smoothly and as per the rules and regulations that have been implemented by the government, without any disturbances.
2. Advisors to political executives Bureaucracy advises the political executives in making decisions for the betterment of the government., which
facilitates the smooth running of the government. As political executives have no knowledge of the functions of the government, these
bureaucrats guide them through their decisions.
3. Law making The bureaucracy plays an indirect role in the law making as the bills that are submitted to the legislation for making a law are
drafted by them. The ministers contact the civil servants for all the necessary information that they need to give to the legislation for passing
of the bill.
4. Policy formulation For the policies that are made to come into action, they need to be included in specific situations. This is a function of the
political executives. However, as we saw above, the civil servants or bureaucrats play a major role in guiding these political executives in their
role, the bureaucracy plays a major role in the whole process of policy formulation.
5. Record-keeping The bureaucrats maintain and keep government records by collecting and categorising the data of government activities.
‘Coordination is balancing and keeping the teams together and seeing that working activities are per­formed with due harmony
among members themselves.’ – [E.F.L. Breach]

According to Charles Worth, “Co-ordination is the integration of several parts into an orderly hole to achieve the purpose of
understanding”.

“Co-ordination” is balancing and keeping the terms together, by ensuring a suitable allocation of working activities of the various
members and seeing that these are performed with due harmony among the members themselves.” -E.F.L. Brech

“Co-ordination is the orderly arrangement of group effort, to provide unit of action in the pursuit of common purpose”. – Alan C.
Reiley and James D. Mooney

George R. Terry, in his book Principles of Management has said – “Co-ordination deals with the task of blending efforts in order to
ensure successful attainment of an objective. It is accomplished by means of planning, organising, actuating and controlling.”

Ordway Tead has said – “Co-ordination is the effort to ensure a smooth interplay of the functions and forces of all different
component parts of an organisation to the end that its purpose will be realised with a minimum of friction and a maximum of
collaborative effectiveness.”

Henry Fayol considers co-ordination to be one of the separate managerial functions to a manager. Louis A. Allen has also regarded
co-ordination as one of the separate managerial functions. Further, James D. Mooney considers co-ordination as the first principle of
organisation and Ralph C. Davis considers co-ordination primarily as a vital phase of controlling.

Co-ordination may be defined as an ongoing process whereby a manager develops in integrated, orderly and synchronised pattern of
group effort among his sub-ordinates and tries to attain unity of effort in the pursuit of a common purpose.