Bureaucracy

Bureaucracy

A bureaucracy is an organization that has a complex structure of multilayered systems and processes in order to maintain uniformity and control within the organization.

Conversely, how the bureaucracy runs, inevitably causes the decision-making process to be slow. The bureaucracy stems from the effort to govern and watch over these organizations through systems that are formal and rigid. They place high regard on procedural correctness and hierarchical procedures.

10 STASHED

3 LIKES

Bureaucracy Definition

investopedia.com

MORE IDEAS FROM THE ARTICLE

  • Bureaucratic methods are outdated and have a backward-looking perspective, which is causing conflict with entrepreneurs and innovators who prefer forward-looking methods
  • Having a hierarchical decision-making process slows down efficiency
  • They have a rigid system that encloses the practice of protectionism such as being unable to fire someone with low performances due to the arduous termination process

10 STASHED

1 LIKE

Bureaucracy is not the same as governance or administration. Although they may seem synonymous, bureaucracy and administrations have different objectives.

  • Administration - they usually direct organizational resources towards a specific and objective goal like generating profits or handing out services;
  • Bureaucracy - they ensure procedural correctness at all times irrespective of the circumstances and goals.

13 STASHED

2 LIKES

Deepstash helps you become inspired, wiser and productive, through bite-sized ideas from the best articles, books and videos out there.

GET THE APP:

RELATED IDEAS

A financial crisis

A financial crisis is often associated with a panic or a bank run where investors sell off assets or withdraw money from savings accounts.

  • Asset prices drop in value.
  • Consumers are unable to pay their debts.
  • Financial institutions experience liquidity shortages.

32 STASHED

Financial Crisis Definition

investopedia.com

Microeconomics: Comparative Advantage

The law of comparative advantage was first mentioned in 1817 by English economist David Ricardo.

A company has a comparative advantage when it is able to provide a good or service at a lower opportunity cost than others, helping it sell the same product at a lower cost, resulting in better margins.

41 STASHED

1 LIKE

Comparative Advantage Definition

investopedia.com

Adam Smith: the father of modern economics

Adam Smith was an 18th-century Scottish economist, philosopher, and author. He is considered the father of modern economics.

  • Smith was born in 1723 in Scotland. He studied moral philosophy at the University of Glasgow and enrolled in postgraduate studies at the Balliol College at Oxford University.
  • After returning to Scotland, Smith held a series of public lectures at the University of Edinburgh and earned a professorship at Glasgow University in 1751. Later he earned the position of Chair of Moral Philosophy.
  • In 1763, he accepted a more remunerative position in France. There, Smith counted philosophers David Hume and Voltaire as contemporaries.

33 STASHED

Adam Smith: The Father of Economics

investopedia.com