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Bureacratic Approach

In: Business and Management

Submitted By ambz
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BUREACRATIC APPROACH:
Bureaucracy is a way to manage the business operations. It is used to describe a wide range of behaviors, attitudes and decisions.
In a bureaucratic organizational structure, authority is generally centered at the top, and information generally flows from the top down. This usually encourages a company culture focused on rules and standards, where operational processes are rigidly controlled with best-practices methodologies and close supervision.
NESTLE
Nestle Pakistan Ltd is a multinational company of Switzerland. It is a food processing company, registered on the Karachi and Lahore stock exchanges and operating in Pakistan since 1988 under a joint venture with Milk Pak ltd and took over management in 1992. Their aim is to be the leading Nutrition, Health and Wellness Company in Pakistan. Nestle is successful in terms of performance by focusing on bureaucracy. They focus on the following points: * Compensation
Nestle offers very reasonable compensation packages, and the workload is very manageable in comparison to other multi-national corporations. * Direct informal contact
Nestle has a corporate culture that is established around a lack of flexibility and lots of bureaucracy. Part of the culture of Nestlé is the encouragement of “direct informal contact”. The emphasis for success is seen as “peer pressures, success and personal promotion” rather than “formal reporting against strategic objectives. Direct informal contact leads to one of the main reasons for the stability of the management team and encourages its continuation. * Fixed division of labor
The company’s jurisdictional areas are clearly specified, and each area has a specific set of official duties and rights that cannot be changed at the will of the leader. * Hierarchy of offices
Nestlé’s each office is controlled and supervised by a higher ranking office. * Creation of rules to govern performance
Rules are specified to govern official decisions and actions. These formal rules are relatively stable, exhaustive and easily understood.
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* These elements are a part of a total system of company which combined effectively increases the effectiveness and efficiency of the administrative structure.

* The bureaucratic structure to greater extents protects employees from arbitrary rulings from leaders, and would potentially give a greater sense of security to the employees.

* Additionally, the bureaucratic structure creates an opportunity for employees to become specialists within one specific area, which increases the effectiveness and efficiency in each area of the organization.

* Finally, when rules for performance are relatively stable, employees have a greater possibility to act creatively within the realm of their respective duties and sub-tasks, and to find creative ways to accomplish rather stable goals and targets.

* Standardization and best-practices are often highlights in companies with tall organizational structures, ensuring that work is consistently completed efficiently and effectively.

* From the above mentioned points, I conclude that the bureaucratic approach to management is suitable for the performance of an organization because it leads to avoid certain conflicts which arise due to interference by others in the managing operations.…...

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