There has been a large amount of growth of industries in the 20th century such as the development of the Asian Tiger Economy and the production of cars and electronics in Britain and Japan.
Throughout this period organisations have therefore been faced with increased competition, in particular the manufacturing and service sectors. As a result many large modern organisations have had to adopt their organisational structure away from a democratic approach towards a more bureaucratic, formal organisation with greater control in order to survive and compete effectively (Buchanon and Huczynski 1997).
A bureaucratic structure within these organisations is characterised through the specialisation of labour, hierarchy of clear and specific authority and a formal set of written rules to ensure the organisation is managed effectively.
Two theorists Weber and Jaques have aimed to create this ideal type of formal organisation through bureaucracy. According to them, bureaucracy is the most efficient way of running large organisations (Buchanon et al 1997).
Many organisations have used Jaques theories and methods to great effect.
The Industrial Revolution was the take off phase of industrial growth. The invention of the steam engine and consequently trains allowed movement of materials and products from one city to another allowing trade to occur (Needman, Dransfield, Harris and Coles 1995). Advancements in technology over the next twenty years or so resulted in high rates of change in modern society (Finchman and Rhodes 1999) and brought with it the rapid pace of innovation we are familiar with today. Two commentators Max and Smith believed there was a close link between technology and organizational structures. Complex technologies produced rapid growth within industries, however workers had to be reorganised to cope with the complexity of the new working environment. As a result they were developed along rational lines in order to cope with...