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A Terrible EfficiencyThe Modern Theory of Bureaucracy

A Terrible Efficiency: The Modern Theory of Bureaucracy [This chapter introduces readers to the modern theory of bureaucracy, which emphasizes that in all hierarchical organizations, bureaucrats are at the same time both the superiors of someone and the subordinates of someone else. Unlike traditional models of bureaucracy, the modern theory assumes that the relationships between superiors and subordinates in bureaus are governed by the neoclassical economics principles of exchange and trade instead of by the issuing of orders and directives. In the modern model, subordinates offer “informal services” to superiors, who make “informal payments” to subordinates. Both trust and networks are accumulated over time by rational individuals who wish to trade with one another, leading to the kinds of efficiencies that made the Nazi apparatus of murder so effective.] http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png

A Terrible EfficiencyThe Modern Theory of Bureaucracy

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Publisher
Springer International Publishing
Copyright
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2019
ISBN
978-3-030-25766-8
Pages
17 –35
DOI
10.1007/978-3-030-25767-5_2
Publisher site
See Chapter on Publisher Site

Abstract

[This chapter introduces readers to the modern theory of bureaucracy, which emphasizes that in all hierarchical organizations, bureaucrats are at the same time both the superiors of someone and the subordinates of someone else. Unlike traditional models of bureaucracy, the modern theory assumes that the relationships between superiors and subordinates in bureaus are governed by the neoclassical economics principles of exchange and trade instead of by the issuing of orders and directives. In the modern model, subordinates offer “informal services” to superiors, who make “informal payments” to subordinates. Both trust and networks are accumulated over time by rational individuals who wish to trade with one another, leading to the kinds of efficiencies that made the Nazi apparatus of murder so effective.]

Published: Aug 25, 2019

Keywords: Trust; Competition; Selective behavior; Networks; Turnover

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