Defined by four specific features including a clear hierarchy and a rigid division of labor, a bureaucracy can provide stability and security, while discouraging favoritism. Each employee performs his specialized work in a predictable manner. Restriction in Freedom; In a command economy, individuals of the society cannot freely consume, produce or invest . Read More.

Bureaucracy Max Weber, a German social scientist, analyzed the formation and administration of enterprises. A bureaucratic structure has both advantages and disadvantages. The main features of this approach are as follows: 1. 15 Bureaucratic Leadership Style Advantages and Disadvantages The bureaucratic leadership style is based on the administrative needs of an organization. Advantages Disadvantages 1) The absence of monopoly power; As the Government controls and regulates the economy resulting in an absence of powers given to providers to set rules and regulations that will be an advantage. Although it is most often found in the public sector, any company can implement this type of leadership style for their teams and departments. Alternatively, this type of structure can hinder productivity. Division of Work: There is division of work on basis of specialization of jobs in bureaucratic organizations.