bureaucratic management

In order to avoid the outcome that the deputy becomes an arbitrary in the province, the king tries to limit the deputy's powers by issuing directives and instructions. So the deputy's free discretion is now limited; their first duty is now to comply with the regulation. The deputy is no longer eager to deal with each case to the best of their abilities. The first virtue of an administrator is to abide by the codes and decrees. He becomes an bureaucrat. (Bureaucracy under despotic management)

It's a fallacy that bureaucratic management is incompatible with democratic government and institutions. The two pillars of democratic government are the primacy of the law and the budget. The definition of democratic government: A system of government under which those ruled are in a position to determine, directly by plebiscite or indirectly bu election, the exercise of the legislative and execute power and the selection of the supreme executives.


Primacy of the law means that no judge or officeholder has the right to interfere with any individual's affairs or conditions unless a valid law requires or empowers him to do so. Democratic control is budgetary control.

Bureaucracy itself is neither bad nor good. What we blame is the expansion of the sphere in which the government interferes with business and with many other items of the citizenry's affairs, and this results in a substitution of bureaucratic management for profit management.

The main function of the law is to limit the power of the authorities and the courts to inflict evils upon the individual citizen and to restrict his freedom. The law protects the people against the arbitrariness of those in office.

Bureaucracy management is management bound to comply with detailed rules and regulations fixed by the authority of a superior body. The task of the bureaucrat is to perform what these rules and regulations order him to do. The objective of business management is to make a profit.

The definition of bureaucratic management: Bureaucratic management is the method applied in the conduct of administrative affairs the result of which has no cash value on the market. We do not say that a successful handling of public affairs has no value, but that it has no price on market, that its value cannot be realized in a market transaction and consequently cannot be expressed in terms of money.

It is a mistake to judge the efficiency of a government department by comparing it with the working of an enterprise subject to the interplay of market factors.