Bureaucracy: Is It Efficient? Is It Not? Is That The Question? Uncertainty Reduction: An Ignored Element of Bureaucratic Rationality
Bureaucracy: Is It Efficient? Is It Not? Is That The Question? Uncertainty Reduction: An Ignored Element of Bureaucratic Rationality
DOI:
ADMINISTRATION
ARTICLE
10.1177/0095399702239171
/ BUREAUCRATIC
& SOCIETY RATIONALITY
/ January 2003
Most contemporary scholars regard bureaucracy as an inefficient phenomenon. At the same
time, we may find a great number of bureaucratic organizations in the various social spheres.
Max Weber, who introduced the concept of bureaucracy into the social sciences, however,
was convinced that bureaucracy is superior to any other organizational form and explained
its prevalence by the immanent rationality of bureaucratic organizations. In analyzing
Weber’s text, the author argues that Weber was mistranslated into English and then misinter-
preted. Weber’s term rationality is not at all identical to efficiency. Rationality includes also
uncertainty reduction regarding internal organizational procedures as well as outputs. Un-
certainty reduction may induce several advantages, which, in several cases, ensure organi-
zational superiority.
BUREAUCRACY: IS IT EFFICIENT?
IS IT NOT? IS THAT THE QUESTION?
Uncertainty Reduction: An Ignored
Element of Bureaucratic Rationality
GYORGY GAJDUSCHEK
Hungarian Institute of Public Administration
Social sciences differ greatly from natural sciences. The lack of a widely
accepted methodology and the lack of opportunity to test various hypothe-
ses by experiments in social sciences are perhaps the most frequently cited
differences. For that reason, several models referring to the same phenom-
enon frequently coexist without a chance to rigorously test these models
against one another and reality.
This feature of social sciences can be traced especially well in the case
of bureaucracy. The term is interpreted very diversely among branches of
social sciences and even among authors within one branch, such as sociol-
ogy of organizations, political science, and so forth. Most of these diverg-
ing interpretations can be traced back to one author, to Max Weber, and to
700
Although the term bureaucracy can be traced back to the mid-18th cen-
tury (Albrow, 1970, p. 16), the concept was introduced into the social sci-
ences by Max Weber. Seemingly, Weber and his findings had relatively lit-
tle impact on the social sciences until his work—or, to be more accurate, some
parts of it—were translated into English by H. H. Gerth and C. Wright
Mills (Weber, 1947) as well as by Talcott Parsons (Weber, 1947/1966).
Besides the publications of the above-mentioned translations, Robert K.
Merton (1968) also had his part in the dissemination of Weber’s concept of
bureaucracy. Here, we are primarily interested in the concept of bureau-
cracy as describing a certain organizational form.
The authors who relied on or referred to Weber’s notion of bureaucracy
necessarily reconstructed and reinterpreted the concept and, to a greater or
lesser extent, Weber’s work generally. It is also natural that the reinterpre-
BUREAUCRACY AS AN
ORGANIZATIONAL PHENOMENON
social sciences that all these authors considered these elements of organi-
zation as the ones leading to the highest level of efficiency.
The formal-rational school of management was followed by the human
relations movement, which proved the presence of personal elements,
such as emotions, attitudes, and values, frequently shared by a group of
workers. The human relations movement pointed out that these factors
greatly influence organizational efficiency. Furthermore, it pointed to the
inappropriate motivation in formal-rational organizations. The findings of
human relations questioned the efficiency theorem of the formal-rational
organizations.
The open system theory of organizations relied not only on the theoret-
ical approach but used comparative statistical analysis extensively in
search of characteristics of efficient organizations. They found that orga-
nizational success greatly depends on the interaction between organiza-
tional environment and internal organizational features. They concluded
that there is no one best way. Organizational efficiency depends on the
adequacy of internal organizational features to the demands and condi-
tions generated by the organizational environment.
Generally speaking, due to the findings of empirical research and prac-
tical experience, no contemporary scholar of organizational theory and
management accepts unconditionally that formal-rational organizations
or bureaucracies are able to provide the highest level of efficiency.
The sociology of organizations2 regards the problem of bureaucracy as
one of its central topics. Merton (1968) basically accepted the Weberian
concept but pointed to the fact that the internal features may lead to unin-
tended dysfunctions, most of all to goal displacement. Other scholars
point to the inherent contradictions among certain internal features. The
most frequently mentioned contradiction is the one between hierarchy and
the rule of rules on one hand and expertise on the other. The trade-offs
between specialization and coordination and between quick and reliable
communication and hierarchy, topics widely discussed among organiza-
tional theorists, also appear in organizational sociology (Blau & Meyer,
1971; Crozier, 1964; Etzioni, 1964; Simon, 1946). All these theoretical
difficulties in the Weberian model and its interpretation raised serious
doubt about the general efficiency of bureaucratic organizations.
Empirical research seemed to support the counterhypothesis. Case
studies as well as sample surveys apparently proved that bureaucracies are
far from always being the most efficient organizations (Blau & Meyer,
1971, pp. 79-97; Heydebrand, 1973).
BUREAUCRACY AS A
SYSTEM-SPECIFIC MECHANISM
It also indicates that “efficiency” was for him a foreign term. It appears in
many translation of Weber’s work but this reflects more the preconceptions
of the translator who cannot conceive of rationality in the organization
except as efficiency, than any consistent usage by Weber of a term equiva-
lent to efficiency. (p. 64).
Others (Leivesley et al., 1994) criticized even more sharply the “efficiency
interpretation” of Weber’s translation/interpretation on a similar basis.
Both of these articles quote several shocking examples of scholarly misin-
terpretations of Weber.
Actually, Weber’s usage of the term rationality may have greatly con-
tributed to the confusion (Elster, 2000). Weber used the term with various,
frequently contradictory meanings. He himself warned the reader of this
fact. He used the term in compounds like purposive-rationality, value-
rationality, or substantive and formal rationality. Rationality may mean
crystallization of certain social spheres, regular and well-structured pro-
cedures, consistent internal system of norms and/or consistent, regular
application of these norms, and so forth. Eminent scholars have attempted
to clarify the various meanings of Weber’s term rationality (Elster, 2000;
Habermas, 1984; Schluchter, 1981). We are, however, interested in a less
general task. We do not search for the meaning of rationality in Weber’s
work generally. Our goal is practically oriented. We are interested in those
attributes of the Weberian concept of rationality that explain the wide-
spread existence of bureaucratic organizations in spite of the general
scholarly doubt in its efficiency or rather adequacy.
We may conclude at this point that (a) Weber spoke about the formal
rationality of bureaucracies instead of their efficiency and (b) the scope of
denotation of formal rationality greatly differs from that of efficiency;
anyhow, the latter has been conceived in social sciences. Now, the task is
to capture the difference between these two terms in reference to bureau-
cratic organizations.
Let’s have a closer look at this translated paragraph! The word efficiency is
used only by the translator. The structure of the paragraph, however,
seems to be logically ambiguous. Seemingly, the first sentence contains a
general statement, namely, that bureaucracy is the most efficient form of
administration. The following sentences go into detail: How can this gen-
eral attribute be captured and of what is it composed? The fact that here we
get a detailed list of the elements of what is called by the translator “effi-
ciency” can be seen from several stylistic marks, such as the enumeration
of nouns in the second sentence or including the word finally in the last
sentence of the paragraph. This last sentence refers to “intensive effi-
ciency.” It may seem that the author makes here a logical mistake. He
includes an element in a set, which is identical to this element. Efficiency
appears as an element, a segment of efficiency.
Furthermore, when we go into detail, we find a list of expressions that
can hardly be treated as elements of even the most widely conceived defi-
nition of efficiency. Such elements are precision, stability, stringency of
discipline, and most of all, reliability and calculability. Strangely enough,
efficiency is the only characteristic in the list that may clearly belong to the
general attribute of efficiency.
Here, the reduction of material and personal cost clearly belongs to the
category of efficiency. Similarly, speed can be interpreted as an indicator
of efficiency. But still, most of the words used here can hardly be pressed
into the class of efficiency.9
If we concentrate only on those general attributes that directly, in them-
selves, explain the superiority of bureaucracy in the two excerpted para-
graphs, we find the following: precision (in both quotes), stability, reli-
ability, calculability, efficiency (as a mistranslation), a wide range of
scope of operations, speed, unambiguity, continuity, reduction of friction,
and reduction of—material and personal—costs. Let us try to classify
these general attributes. What are those attributes that can be classified as
parts of a general, vaguely and widely defined efficiency, and what are
those that cannot be forced under this category?10 I do this in Table 1.
As we can see, there are far more attributes listed by Weber that do not
fit into the category of efficiency than those that do. If nothing else, the
vast number of these attributes must motivate us to search further for gen-
eral category(ies) other than efficiency. Are there general categories that
can embrace some or all of the nonefficiency attributes? In our view, there
is one such general category. That is what I will call uncertainty reduction.
TABLE 1
Classification of General Attributes
of Bureaucracy Listed by Weber
Efficiency Nonefficiency
Efficiency itself (in the original text: high Precision (in both quotes)
quantity and quality of performance) Stability
Speed Reliability
Reduction of costs Calculability
a
A wide range of scope of operations A wide range of scope of operations
Unambiguity
Continuity
b
Reduction of friction
a. This element can be included only into a very widely defined concept of efficiency.
b. This is understood as reduction of friction in outputs/performance and thus interpreted as a
general attribute.
CONCLUDING REMARKS
NOTES
1. The selection of readings and the editors’comments render an excellent guideline for
the consecutive schools of organizational theory (Shafritz & Ott, 1996).
2. Blau and Meyer (1971) provided an excellent summary of the major questions and
achievements in the field.
3. I will use the terms internal features and general attribute(s) systematically in this
article as they are presented here.
4. Interestingly, although neoclassical economists seem to agree on the suboptimality
of bureaucracies, they greatly differ in what they consider a reason for suboptimality. For
instance, whereas Niskanen (1971) originally blamed oversupply as a sole reason of
suboptimality, Migue and Belanger (1974) found that public bureaucracies produce outputs
with a higher unit cost than their private counterparts.
5. Pareto optimality in case of the market and optimal level of output in case of an indi-
vidual firm as determined by the marginal revenue and marginal cost curves.
6. In fact, what we call internal attributes here are not clearly reasons or causes of the
general attributes, that is, rationality. In Weber’s texts, they frequently appear as segments or
manifestations of the rationality itself. As Schluchter (1981) and Habermas (1984) pointed
out, impersonality, the application of formal law, and so forth are embodiments of rationality.
This rather philosophical fact is, however, irrelevant to the argument of this article.
7. Several authors attempted to sum up the features common in various interpretations
of bureaucracy. See, for instance, Albrow (1970, especially p. 99) and Lane (1987b, espe-
cially p. 4) or Mills and Simmons (1995, pp. 34-42). It is interesting that even this latter, quite
critical approach follows unconditionally the efficiency theorem of mainstream organiza-
tional theory.
8. This paragraph is only one sentence in the original German version (Weber, 1972,
p. 128). Here, I provide a translation that follows the original text as closely as possible:
Due to all experiences, the pure bureaucratic, that is, the bureaucratic-monocratic
form of administration, based on written files, is, purely technically, capable of
reaching the highest level and perfection of performance with respect to its precision,
continuity, discipline, stringency, altogether: predictability for its ruler (Lord) as well
as for other interested parties and with respect to the qualitative and quantitative
aspects of its performance and its formally universal applicability for all tasks. This
means that it is the most formally rational form of exercising power.
9. Although in the previously quoted paragraph, Weber listed mostly characteristics
that we could regard as general attributes, in this paragraph, he enumerated characteristics,
some of which we regard as internal features. The reason for this fact is twofold. First, Weber
emphasized the machine-like characteristics of bureaucracy. (Please note that a machine is
different from human labor not only in its higher level of performance but also in the predict-
ability of its functioning and performance as well as the perfect equivalence of outputs.) Sec-
ond, as I indicated in Note 6, some characteristics, which were later interpreted as causes of
rationality (internal features), were in Weber’s view manifestations of rationality itself. In
the further analysis, I will rely only on those characteristics that can be conceived as general
attributes.
10. Categorization requires interpretation; thus, subjectivity cannot be excluded. How-
ever, including the characteristics listed in the right column of the table into the category of
efficiency would detach this term from its original meaning to such an extent that its use as
social sciences concept would become questionable.
11. Unlike rational choice theory, I do not differentiate between risk and uncertainty.
Uncertainty means simply the opposite of sure in the context of this article.
12. North (1990) wrote that “more than 45% of national income was devoted to transact-
ing” (p. 28) in the United States, whereas it was approximately 25% a century before.
REFERENCES
Migue, J. L., & Belanger, G. (1974). Toward the general theory of managerial discretion.
Public Choice, 17(1), 24-43.
Mills, A. J., & Simmons, T. (1995). Reading organizational theory: A critical approach.
Toronto, Canada: Garamond Press.
Mises, L., von, (1944/1966). Bureaucracy. New Haven, CT: Yale University Press.
Niskanen, W. A. (1971). Bureaucracy and representative government. Chicago: Aldine.
North, D. C. (1990). Institutions, institutional change and economic performance. Cam-
bridge, UK: Cambridge University Press.
Osborne, D., & Gaebler, T. (1992). Reinventing government: How the entrepreneurial spirit
is transforming the public sector. Reading, MA: Addison-Wesley.
Peters, G. B. (1995). The politics of bureaucracy. White Plains, NY: Longman.
Schluchter, W. (1981). The rise of Western rationalism. Berkeley: University of California
Press.
Shafritz, J. M., & Ott, J. S. (Eds.). (1996). Classics of organization theory (4th ed.). Fort
Worth, TX: Harcourt Brace.
Simon, H. A. (1946). The proverbs of administration. Public Administration Review, 6, 53-67.
Thompson, J. D. (1967). Organizations in action. New York: McGraw-Hill.
Tullock, G. (1965). The politics of bureaucracy. Washington, DC: Public Affairs Press.
Weber, M. (1947). Essays in sociology (H. H. Gerth & C. W. Mills, Trans. & Eds.). London:
Kegan Paul, Terch, Trubner.
Weber, M. (1958). The Protestant ethic and the spirit of capitalism (T. Parsons, Trans.). New
York: Scribner.
Weber, M. (1947/1966). The theory of social and economic organizations (T. Parsons, Trans.
& Ed.). New York: Free Press.
Weber, M. (1966). Max Weber on law in economy and society (M. Rheinstein, Ed. & Trans.).
Cambridge, MA: Harvard University Press.
Weber, M. (1972). Wirtschaft und Gesellschaft: Grundriss der verstehenden Soziologie
[Economy and society: Handbook of interpretative sociology] (5th ed.). Tubingen, Ger-
many: J. C. B. Mohr.
Weber, M. (1978). Economy and society. Berkeley: University of California Press.
Weimer, D. L., & Vining, A. R. (1992). Policy analysis: Concepts and practice. Englewood
Cliffs, NJ: Prentice Hall.
Williamson, O. E. (1975). Markets and hierarchies. New York: Free Press.
Williamson, O. E. (1994). The institutions and governance of economic development and
reform. In Proceedings of the World Bank Annual Conference on Development Econom-
ics (pp. 171-208). Washington, DC: World Bank.
Wilson, W. (1887). The study of administration. Political Science Quarterly, 2, 197-222.