Nature of Hierarchy Organizations and its Source of Efficiency

Generally speaking,most large scale firms adopt certain form of hierarchical organization of which the bureaucratic organization constitutes the typical form.The theoretical model of the bureaucratic organization is originally conceited by Max Weber in the early 20th century.Upon the appearance of the model various critic has never ceased in the field of organization theory.So far,however,such critic seems to be constrained in the moral condemn rather than on the basis of grasping the nature of the bureaucratic organization.The relevant prophecy claiming that form of organizations will come to an end is not substantially supported by the fact.This paper attempts to grasp the nature of bureaucratic organization through highlighting two fundamental characters of the organization,i.e.,strict regulation and structural hierarchy.The reason why hierarchical organization has been adopted as the dominating form of business organization may be accounted for by the efficiency principle of economic organization.For this reason,this paper builds up a compact mathematical model to analyze the source of efficiency of a hierarchical organization.The conclusion drawn from the model analysis strictly supports our judgment that the hierarchical organization has its capacity for survival.