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Bureaucracies

Bureaucratic relationships have several advantages over market ones. Firstly, it utilizes the employment relationship where actors accept wages in exchange for services that can be monitored and managed by superiors within that organization. This minimizes the trust and opiumism problems that markets suffer from. Members in a bureaucratic organization typically have closer, longer term interactions with each other and have metrics to reward or punish work performance, which reduces goal incongruence. Bureaucratic organizations also have an advantage of determining value of labor, products, and services because the environment in which those things are exchanged in are on a smaller scale and more tightly controlled as it operates according to a system of hierarchical surveillance, evaluation, and direction.

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Updated 2021-03-10

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Sociology

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Empirical Science

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