2. The Bureaucracy

In Chapter 1 we introduced the two key challenges facing modern businesses: managing their growing size and managing knowledge work. In this chapter, we talk about the first issue, managing and controlling a growing business. Here, the principal concern is the tension between the flexibility and innovation required by technological change and the bureaucratic procedures needed to operate a growing business.

Why Organizations Need a Bureaucracy

As organizations grow, they must build bureaucracies to help run the business. These bureaucracies are usually hierarchically structured and operate in accordance with defined rules and procedures. While bureaucracies are often viewed as cumbersome and destructive, they are a necessary ...

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