A bureaucratic organization is a large organization that is designed to streamline production by having specialist employees. In these organizations, there is an emphasis on the positions, rather than the people in them, which is in direct opposition to small companies, which are based on individuals.
Bureaucracies function according to two main principles: job specialization and management by rules. People in bureaucracies are organized according to what their jobs are--all of the accountants will be in one section, salesmen in another and so on.
Rules and Regulations
In order to maintain specialization and keep the organization tightly controlled, a bureaucracy will have strong rules and regulations. This means that another part of a bureaucratic organization structure is the presence of people who enforce these rules.
Finally, bureaucracies tend to have many managers. Indeed, it has been noted that a bureaucracy's manager ranks will often grow in spite of the line ranks stagnating or even shrinking. Top-heavy structure is a key part of a bureaucracy.
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