The writer who probably had the most profound influence on classical organizing theory was Max Weber. Most agree that Weber’s most notable contribution to classical organizing theory was his concept of bureaucracy.10 Specifically, Weber used the term bureaucracy to describe the management system that includes three primary components: detailed procedures and rules, a clearly outlined organizational hierarchy, and impersonal relationships among organization members.

Although he firmly believed in the bureaucratic approach to organizing, he was concerned that managers are inclined to overemphasize the merits of a bureaucracy. He cautioned that a bureaucracy is not an end in itself but, rather, a means to the end of management system goal attainment. The main criticism of Weber’s bureaucracy model, as well as the concepts of other classical organizing theorists, is that they give short shrift to the human variable within organizations. In fact, it is recognized today that the bureaucratic approach without an appropriate emphasis on the human variable is almost certainly a formula for organizational failure.11

Another criticism of bureaucracy is that it may negatively influence organizational effectiveness.12 For an example of bureaucracy negatively influencing organizational effectiveness, consider General Motors (GM). For years, GM was not only one of the world’s largest companies but also a huge bureaucracy. Although over the years various GM chief executives tried to cut layers of management, the company continued to post losses and, by 2009, faced bankruptcy. Before the U.S. government would provide further aid, GM was ordered to make significant and deep organizational cuts. With a slimmed-down GM emerging from bankruptcy, company vice chairman Bob Lutz pledged that GM would maintain its focus on eliminating bureaucracy, saying, “If you tell yourself you’re done [cutting costs], that probably means you’re complacent.”13 Even though appropriate organization can improve efficiency and effectiveness, this example illustrates the potential problems associated with inappropriate organization.