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"A literature review uses as its database reports of primary or original scholarship, and does not report new primary scholarship itself. The primary reports used in the literature may be verbal, but in the vast majority of cases reports are written documents. The types of scholarship may be empirical, theoretical, critical/analytic, or methodological in nature. Second a literature review seeks to describe, summarize, evaluate, clarify and/or integrate the content of primary reports". Cooper (1988)

In this literature review I will structure my work in the way that a) At first, I will discuss the background to change that exists in today's economy; b) Secondly, I will evaluate the strengths and weaknesses of bureaucratic organizations in brief; c) In the end, I will compare alternative forms of organizational development shortly.

a) The background to change that exist in today's economy

In this 21st century nothing is constant except change. The term “Change” becomes most important factor for each and every sector in the world now-a-days. No organization can even imagine their success without the introduction and implementation of change. Change can be external such as technology, customers, market, and social, political, environmental and for internal changes it refers to the reaction and adaption of organization to the external changes. These are now continual process of any organization.

According to Moran and Brighton (2001), “The process of continually renewing an organization's direction, structure and capabilities to serve the ever changing needs of external and internal customers.”

There are lot of factors necessitating change that exist in today's economy such as Globalization, Deregulation, Information & Communication Technology (ICT), Knowledge workforce, Shifting social and demographic trends, competitive advantage and other Economic factors.


In my opinion globalization is a complex word which cannot be described in few words. However, globalization is sometimes refer to economic globalization because most of the integration of national economy into international economy due to development of economic resources. Globalization is the only process through which all the countries of the world function together to achieve certain goal. It removes barriers between the national borders in order to make easy to flow the goods, capital, exchange of labor. Basically free trades is most important criteria created by globalization by which any production made by one country can exchange into another country with small or no tariffs.

“Globalization is the growing interdependence of the world's peoples … a process integrating not just the economy but culture, technology, and governance. People everywhere are becoming connected-affected by events in far corners of the world.” United Nations Development Program (1999:1)

Globalization is the advancement of a global mentality which can be explained as a borderless world through the use of information and communication technology to create partnerships all over the world to maintain the link with all. Only for globalization one person can be a world's citizen though he is only one nationality.

Globalization affects the cultural, social, financial, ecological, political, informational and socio-cultural system of the world. For liberal functions, it is a force for change socially to reduce the gap between rich and poor, industrialized and unindustrialized, and wired and unwired.

According to John Micklethwait and Adrian Wooldridge (2000), “Globalization offers the chance to fulfil … the goals that classical liberal philosophers first identified several centuries ago and that still underpin Western democracy.”

Information and Communication Technology:

Any development in the world cannot be imagined without information and communication technology. If we think about the economical change in the last three decades it is apparent that most of the development and advancement came through technology. All have become computer based in new millennium. Innovation of telecommunication, computer system, and different software played the key role to alter the economic pattern of that was in 30 years back. Only for information technology people are able to do their business internationally though they may fix in position but they can maintain their each and every business issues throughout the world from their head office.

Alan Greenspan(2000) argued that information technologies not only reduce redundancies but also save time and design costs: “Computer modelling, for example, has dramatically reduced the time and cost required to design items ranging from motor vehicles to commercial airliners to skyscrapers.”

If we talk about the globalization, the maximum success of globalization depends on only telecommunication. Only technology makes internationalization of the factory system.

“Information technology can also increase productivity by facilitating the storage, retrieval, analysis, and communication of vital information to corporate decision makers who can better streamline operations and more effectively allocate productive resources. These strategies could further involve the utilization of IT to displace other factors of production (e.g., labor and branch reductions from automated teller machines and automated call centers) and also the implementation of e-commerce infrastructure (e.g., supply chain management), which reduces friction in the production and distribution of products and services.”

Denis Mcginn, Stephen Kudyba, Romesh Diwan (2002).


“Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces. Deregulation does not mean elimination of laws against fraud, but eliminating or reducing government control of how business is done, thereby moving toward a more free market.” Sullivan, Arthur, Sheffrin, Steven M. (2002).

Deregulation occurs only when there is a need for fundamental decrease or elimination of government regulation over any industry, market, or economic sector. Most of the deregulation occurs to allow competition which is usually taken by the government. The pronominal intention of financial services deregulation is to expand market efficiency and enhance consumer taste with the intensification of competition.

b) The Strengths and weaknesses of Bureaucratic Organizations

An organization which operates by the government is known as bureaucratic organization. The meaning of bureaucratic is all about hierarchy, red tape; nothing can be done without passed by the head of the organization. So it goes from the president to the vice president to subordinates to managers to rest of the officers.

According to the Victor A. Thompson (1961)

“The bureaucratic organization is a complex structure of technical interdependence superimposed upon a strict hierarchy of authority. The entire structure is characterized by a preoccupation with the monistic ideal. The hierarchical institution is monocratic. It is a system of superior and subordinate role-relationships in which the superior is the only source of legitimate influence upon the subordinate. Everyone in the organization finds himself in such a relationship. Since this was the original organizational relationship, it has dominated organizational theory and practice and still does so.”

Strengths of Bureaucratic Organization:

“A Hierarchy is a system of roles--the roles of subordination and superordination--arranged in a chain so that role 1 is subordinate to role 2; and 2 is superordinate to 1 but subordinate to 3. The chain so continues until a role is reached that is subordinate to no other role, except perhaps to a group of people such as a board of directors or an electorate. A role is an organized pattern of behavior in accordance with the expectations of others. Social scientists often refer to the pattern of expectations as a person's social position, or the sum of his rights and duties in a particular interactional situation; and to his role as behavior appropriate to his position.” Victor A. Thompson (1961).

There are lot of strength of Bureaucratic organization as follows:

Bureaucratic organizations are well structured organizations.

These organizations develop their cultures with the persistence.

The system of Bureaucratic organizations is centralized and all the decisions can be monitored easily.

The activities of the organization are reduced to procedures or routines.

Functional division of labour based on functional specialization.

Specialization of task for each and every person within the organization.

The top management would have control over the entire organization.

Most of the rules are formal and everybody has to follow the rules. .

Decisions are made by top management. Everyone has to follow.

In these organizations, promotion of the employees done through technical competencies.

Most of the tasks are rational in these organizations.

Weaknesses of Bureaucratic Organization:

Although there are some strength of bureaucratic organization but as compare to weakness there are very less. Some of them discuss below

Lack of motivation.

Employees get demotivated because of lesser employee participation and involvement.

No quick decision can be made due to hierarchy.

Due to layer of management, processes are very slow.

There are no quick decisions.

They cannot respond quickly because of changing environment.

Heavy formalized structure leads to more process.

Lack of communication.

No solutions of the problem due to layer authority.

Decisions are forced from top level management and they have to follow.

Managers are less empowered.

Team members do not feel valuable of themselves due to less involvement.

Alternative forms of organization development

" single formula or image.... Multiple possible futures, the need for discontinuity almost for the sake of it, means that we must be able to think imaginatively, to be able to develop ourselves and, in generative relationships with others, to organise and re-organise ourselves continuously."

[ Pedler, in Fisher & Torbert, 1995 ]

Od is therefore

OD is therefore concerned with:

•organizations as a whole in their wider setting

•the people in organizations and how they work together

•what organizations expect of people and how they respond

•the philosophy of management and how it affects organizational behaviour

•the overall culture and climate of the organization.

It thus attempts to diagnose and influence the strategy, direction, priorities, style, and culture of an enterprise. Activities such as communication, team-work, delegation, accountability, planning, decision-making, and problem-solving are major areas of interest because of their potential impact on how the organization goes about its business.

Nonetheless, it is worth noting that OD is not a technology for facilitating the imposition of specific organizational changes per se, but rather a change process for helping to establish the

Questia Media America, Inc.

Publication Information: Book Title: A Manual of Organizational Development: The Psychology of Change. Contributors: Clare Huffington - author, Carol Cole - author, Halina Brunning - author. Publisher: Karnac Books. Place of Publication: London. Publication Year: 1997. Page Number: 20.

particular culture, behaviours, and relationships needed in a given set of circumstances.Clearly there are some assumptions, both explicit and implicit, that are inherent in OD. They include the following:

•Human resources are the most important assets an organization has, and their effective management is crucial to the organization's survival and success.

•This success is most likely if the organization's policies and procedures are closely linked with the achievement of corporate objectives and strategic plans.

•The organization's culture and the values, climate, and managerial behaviour associated with that culture will exert a major influence on its achievement of excellence. This culture must therefore be managed, which means that organizational values may need to be changed or reinforced.

Questia Media America, Inc.

Publication Information: Book Title: A Manual of Organizational Development: The Psychology of Change. Contributors: Clare Huffington - author, Carol Cole - author, Halina Brunning - author. Publisher: Karnac Books. Place of Publication: London. Publication Year: 1997. Page Number: 21.

1. Cooper, H.M. (1988). The structure of knowledge synthesis - Knowledge in Society. Volume: 1, Page 104-126.

2. Moran J.W.; Brightman B.K. (2001). Leading organizational change. Career Development International, Volume 6, Number 2, pp. 111-119(9).

3. A. Greenspan (2000). The Revolution in Information Technology. Speech at Boston College, Chestnut Hill, Massachusetts.

4. Mcginn (2002). Information Technology, Corporate Productivity and the New Economy. Westport, CT, Page: 10.

5. Sullivan (January 2002). Principles in Action. New Jersey, Pearson Prentice Hall.

6. Victor A. Thompson (1961). Modern Organization, New York. P. 20.

7. Victor A. Thompson (1961). Modern Organization, New York. P. 58

8. Mary Cushing Howard Niles, Harper & Brothers; (1941). Middle Management, New York.