Over the past decade or two, technology has transformed business as thoroughly and frequently as nothing else. As technology continues to develop at a fast rate, the technological advancements has led to many businesses revamping their operating models to try to keep up with the growing trends. Bureaucracy was first built to replace the growing corruption, capriciousness and nepotism of governance and to establish strict rules on how people are hired, promoted or fired. Bureaucracy thus held technical superiority over other organizations; its growth was steady and over a period of time, bureaucracy took over the role of managing economies to ensure prosperity. According to Max Weber (1958), “the ideal type bureaucratic organization exhibits characteristics such as speed, unambiguity, knowledge of the files, precision and continuity”. It can be argued that an ideal bureaucracy also has hierarchy and rule-based operations model.
Hierarchy in a bureaucratic organization is maintained with graded authority; a system comprising of the super and the subordinate where the subordinates (lower offices) are supervised and governed by the super (higher offices) (Henry, 1975). And bureaucracy generally follows stable, learned and comprehensive rules with every official who is a part of the bureaucracy having thorough knowledge of these rules. The negative by product of these rules, referred to as the red tape is the set of rules, procedures and regulations that remain in force but do not serve any legitimate purpose. Management of these bureaucracies by technically competent individuals was believed to bring about greater efficiency. But the advancement in technology is influencing every part of human life and thus naturally the business environments too.