According to the research findings, it can, therefore, be said that bureaucracy is a product of two specific ways of managing organizations, which are the profit versus bureaucratic. When it deals with the external defense, internal protection or the court system and the government services in general, the bureaucratic system is necessary. Organizations that have bureaucratic structures cascade layers from senior executives to regional managers and then to the departmental managers, which move supervisors who work at the same time with the usual employees. Decision-making process within such organizations passes long way through many layers.
The procedures, the technologies and the values that are passed from the managers to usual employees may be vividly seen through the work of the one of the world’ s largest hamburger chain McDonald’ s. Some research supports the idea that the Company acts as the bureaucratic organization because its management uses many rules and procedures, prepared scripts that employees should follow when dealing with the customers. For example, dispensers should supply the exact quantity of ketchup and the cash registers should tell the cashier workers of the amount of change they should give back to the customer.
Organizations with the bureaucratic structure control over strategy decisions, which benefits the business owners. The process of decision-making within such organizations can be shorter because fewer people are involved in it. Procedures and best practices ensure work to be consistently completed in an efficient and effective way. On the other hand, bureaucratic structures depress employees’ creativity. It does not matter whether the owner’ s purposes are good or bad, it is impossible for a single employee to create strategic ideas inside the interdisciplinary group.
According to Mises, a researcher of the bureaucracy, the choice between the profit- based management of the organization and bureaucratic way of performing its activities is a certain struggle between availability to act free or abide rules, perform one’ s duties individually and take responsibility for them or to listen to the collective decision.
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