For most of the industrial era, bureaucracy was considered the ideal type of formal organization. The foremost analysis of bureaucracy is that by Max Weber. According to Weber:
Obsolescence of Action: Bureaucracy is characterized by rules and regulations which, although serving a helpful purpose at a specific time in the organization's life cycle, may create inappropriate responses at a later stage. Actions based upon training and skills which have been successfully applied in the past may result in inappropriate responses under changed conditions. For instance, one usually acts in keeping with one's past training, but, under new conditions which are not recognized as significantly different, the very soundness of this training may lead to the adoption of the wrong procedures.
Goal Displacement: In order to operate successfully, a bureaucracy must attain a high degree of reliability of behaviour, through conformity with prescribed patterns of action. This requires a high degree of discipline. In order to ensure discipline, pressure to conform is often more intense than is technically necessary. But this very emphasis leads to a greater concentration on the particular details of the rules and regulations then on the goals of the organization. "Adherence to the rules, originally conceived as a means, becomes transformed into an end-in-itself; there occurs the familiar process of displacement of goals."
Inducements to Loyalty: The promise of career advancement, promotional devices, incremental salaries and solid pension plans are all used to garner loyalty in the form of disciplined action and conformity to official regulations. These very devices which increase the probability of conformity also lead to an over-concern with strict adherence to regulations which induces timidity and conservatism.
Sense of Common Destiny: Organizational members have a sense of a common destiny. They share the same interests, especially since there is relatively little competition in so far as promotion is in terms of seniority. However, the shared values and informal social organization which typically develop in such situations often leads to a defence of entrenched interests rather than to assisting clientele or engaging in needed changes.
Stress on Depersonalization: Bureaucrats strive to minimize personal relations and categorize people and their problems. Thus the peculiarities of individual cases are often ignored. But the client who is convinced of the special features of his own problem often objects to such categorical treatment. This tends to produce conflict in the bureaucrat's contacts with the public or clientele.
The Tyranny of Authority: Irrespective of his position within the hierarchy, the bureaucrat acts as a representative of the power and prestige of the entire structure. Thus he is vested with an authority that often leads to a domineering attitude. It has been observed that the lower the functionary's position in the organizational hierarchy, the more rigid and domineering his attitude towards the client. Protest and recourse to other officials on the part of the client are often ineffective because of the sense of common destiny and shared values of the ingroup.