In this piece of coursework I will be discussing why the
correct analysis of the business environment is fundamental for a business
organisation and how incorrect analysis would affect the business organisation.
What the advantages and disadvantages and disadvantages of a bureaucracy for an
organisation in this modern day. I will also be discussing who stakeholders
are, and what their typical aspirations of employees would be. Finally I will
be debating how managers can win their employees’ resistance to change.
Bureaucracy within a business is a specialized organisational structure
and process of maintaining consistency of authority within an organisation.
These processes are most common in large businesses and helps control internal
behaviour. An example of how this is done would be an oil rig company would
create a bureaucracy to require their employees to complete a safety check every
time they operate the oil rigs. These types of organisational structures tend
to consist of multiple layers of management, these could be ranged from senior
executives to frontline staff, and it could also be referred to as a hierarchy.
The importance of bureaucracy for a business is high, as authority is usually
centred towards the top and information will flow form the top down. It is it
vital because it gives the business a backbone and a way of ensuring that the
correct regulations are followed at all times. However if this is overly used
it could add levels of unproductivity within employees in a business. There is
an aspect in bureaucracy that is called specialisation, this is where the
workers in a bureaucratic structure perform many specialised tasks that demand
training and capability. This would allow trained personal to accomplish these
tasks with ease, the downside of this aspect would be that businesses cannot
afford to work out of their class which means that they cannot take tasks on
that are outside of the range of their job.
Using bureaucracy within a business have many advantages, the main one
of these is that a senior manager in one of these organisational structure
would be able to apply a great deal of control over any organisational
strategic decisions, this can be ideal for owners of businesses with a
controlled style of command the structure will set the pace and basis for the
day to day running of the business. Another advantage of using bureaucracy is
that it leaves no room for favouritism, this is because with the rules and
regulations set in place it allows the business to accomplish results by
increasing morale which will then in turn improve the rate of efficiency at
which employees will work at. An example given for this would be a student
applying for a student loan, there is a long process to getting this done, it
consists of the student meeting certain requirements to be approved for the
loan, with a bureaucratic process it will mean that it will have an emphasis on
equality. Another advantage of this organisational structure would be that it
offers a foundation to scalability, this is because with the increase of work
efficiency it will also increase the level of productivity, the rules and
regulations that have been set in place will allow multiple workers to work
together and function in the same manner which will increase productivity and a
However, advantages tend to go together with disadvantages, the main
one of these is the lack of innovation. The resilient structure of a
bureaucratic structure and its tight specialisation discourages creativity and
innovation throughout the business.