91-528: Concord Group is a Bangladeshi conglomerate that was founded in 1973. The industries under this conglomerate include construction, real estate, architecture & design, communication, entertainment, hospitality, and garments. Concord Group was founded in 1973. In 2002, Concord Group built a multimillion-dollar amusement park in Savar called Fantasy Kingdom . In 2004, the Government of Bangladesh leased
182-429: A market inefficiency , which undervalues the true strength of these stocks. In her 1999 book No Logo , Naomi Klein provides several examples of mergers and acquisitions between media companies designed to create conglomerates to create synergy between them: A relatively new development, Internet conglomerates, such as Alphabet , Google's parent company belong to the modern media conglomerate group and play
273-558: A monarchy . In the 1920s the German sociologist Max Weber expanded the definition to include any system of administration conducted by trained professionals according to fixed rules. Weber saw bureaucracy as a relatively positive development; however, by 1944 the Austrian economist Ludwig von Mises opined in the context of his experience in the Nazi regime that the term bureaucracy
364-416: A "polar night of icy darkness", in which increasing rationalization of human life traps individuals in a soulless " iron cage " of bureaucratic, rule-based, rational control. Weber's critical study of the bureaucratization of society became one of the most enduring parts of his work. Many aspects of modern public administration are based on his work, and a classic, hierarchically organized civil service of
455-428: A centralized, bureaucratic government. The form of government created by the first emperor and his advisors was used by later dynasties to structure their own government. Under this system, the government thrived, as talented individuals could be more easily identified in the transformed society. The Han dynasty (202 BC – 220 AD) established a complicated bureaucracy based on the teachings of Confucius , who emphasized
546-611: A disjuncture: either the toppling of the ruling bureaucracy by means of a political revolution, or capitalist restoration led by the bureaucracy: The fall of the present bureaucratic dictatorship, if it were not replaced by a new socialist power, would thus mean a return to capitalist relations with a catastrophic decline of industry and culture. Writing in the early 1860s, political scientist John Stuart Mill theorized that successful monarchies were essentially bureaucracies, and found evidence of their existence in Imperial China ,
637-486: A disorienting and demoralizing experience for executives at acquired companies—those who were not immediately laid off found themselves at the mercy of the conglomerate's executives in some other distant city. Most conglomerates' headquarters were located on the West Coast or East Coast , while many of their acquisitions were located in the country's interior. Many interior cities were devastated by repeatedly losing
728-549: A focus in Asia.) In Japan, a different model of conglomerate, the keiretsu , evolved. Whereas the Western model of conglomerate consists of a single corporation with multiple subsidiaries controlled by that corporation, the companies in a keiretsu are linked by interlocking shareholdings and a central role of a bank. Mitsui , Mitsubishi , Sumitomo are some of Japan's best-known keiretsu, reaching from automobile manufacturing to
819-638: A global presence and a diversified portfolio of products and services. Conglomerates can be formed by merger and acquisitions , spin-offs , or joint ventures . Conglomerates are common in many countries and sectors, such as media , banking , energy , mining , manufacturing , retail , defense , and transportation . This type of organization aims to achieve economies of scale , market power, risk diversification , and financial synergy. However, they also face challenges such as complexity, bureaucracy , agency problems, and regulation . The popularity of conglomerates has varied over time and across regions. In
910-453: A local level. At the apex of this system was the Shah, with total power over the state, legitimized by his bloodline as a sayyid , or descendant of Muhammad . To ensure transparency and avoid decisions being made that circumvented the Shah, a complex system of bureaucracy and departmental procedures had been put in place that prevented fraud. Every office had a deputy or superintendent, whose job
1001-534: A major role within various industries, such as brand management . In most cases, Internet conglomerates consist of corporations that own several medium-sized online or hybrid online-offline projects. In many cases, newly joined corporations get higher returns on investment , access to business contacts, and better rates on loans from various banks. Similar to other industries many companies can be termed as conglomerates. Bureaucracy Bureaucracy ( / b j ʊəˈr ɒ k r ə s i / ; bure- OK -rə-see )
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#17327974705421092-623: A multitude of inferior officers lay heavy on each territory." After the Empire split, the Byzantine Empire developed a notoriously complicated administrative hierarchy , and in the 20th century the term Byzantine came to refer to any complex bureaucratic structure. Uzun Hasan's conquest of most of mainland Iran shifted the seat of power to the east, where the Aq Qoyunlu adopted Iranian customs for administration and culture. In
1183-602: A national academy where officials would select candidates to take part in an examination of the Confucian classics , from which Emperor Wu would select officials. In the Sui dynasty (581–618) and the subsequent Tang dynasty (618–907) the shi class would begin to present itself by means of the fully standardized civil service examination system , of partial recruitment of those who passed standard exams and earned an official degree. Yet recruitment by recommendations to office
1274-404: A professor at Bryn Mawr College , Woodrow Wilson 's essay The Study of Administration argued for bureaucracy as a professional cadre, devoid of allegiance to fleeting politics. Wilson advocated a bureaucracy that: ...is a part of political life only as the methods of the counting house are a part of the life of society; only as machinery is part of the manufactured product. But it is, at
1365-639: A small slice of many companies in a fund rather than owning shares in a conglomerate. Another example of a successful conglomerate is Warren Buffett 's Berkshire Hathaway , a holding company which used surplus capital from its insurance subsidiaries to invest in businesses across a variety of industries. The end of the First World War caused a brief economic crisis in Weimar Germany , permitting entrepreneurs to buy businesses at rock-bottom prices. The most successful, Hugo Stinnes , established
1456-616: A solid general education to enable inter-departmental transfers, and promotion should be through achievement rather than "preferment, patronage, or purchase". This led to implementation of His Majesty's Civil Service as a systematic, meritocratic civil service bureaucracy. In the British civil service, just as it was in China, entrance to the civil service was usually based on a general education in ancient classics, which similarly gave bureaucrats greater prestige. The Cambridge-Oxford ideal of
1547-427: A substantial amount of influence to preserve the current political system because they are primarily focused on defending the country and the state from threats from both within and beyond. Since these institutions frequently operate independently and are mostly shielded from politics, they frequently have no affiliation with any particular political party or group. For instance, loyal British civil officials work for both
1638-420: Is a system of organization where decisions are made by a body of non-elected officials. Historically, a bureaucracy was a government administration managed by departments staffed with non-elected officials. Today, bureaucracy is the administrative system governing any large institution, whether publicly owned or privately owned. The public administration in many jurisdictions is an example of bureaucracy, as
1729-402: Is a type of multi-industry company that consists of several different and unrelated business entities that operate in various industries. A conglomerate usually has a parent company that owns and controls many subsidiaries , which are legally independent but financially and strategically dependent on the parent company. Conglomerates are often large and multinational corporations that have
1820-571: Is any centralized hierarchical structure of an institution, including corporations , societies , nonprofit organisations , and clubs . There are two key dilemmas in bureaucracy. The first dilemma revolves around whether bureaucrats should be autonomous or directly accountable to their political masters. The second dilemma revolves around bureaucrats' responsibility to follow preset rules, and what degree of latitude they may have to determine appropriate solutions for circumstances that are unaccounted for in advance. Various commentators have argued for
1911-563: Is characterized by: Weber listed several preconditions for the emergence of bureaucracy, including an increase in the amount of space and population being administered, an increase in the complexity of the administrative tasks being carried out, and the existence of a monetary economy requiring a more efficient administrative system. Development of communication and transportation technologies make more efficient administration possible, and democratization and rationalization of culture results in demands for equal treatment . Although he
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#17327974705422002-472: Is currently China's largest civilian-run conglomerate by revenue. In South Korea , the chaebol is a type of conglomerate owned and operated by a family. A chaebol is also inheritable, as most of the current presidents of chaebols succeeded their fathers or grandfathers. Some of the largest and most well-known Korean chaebols are Samsung , LG , Hyundai Kia and SK . In India, family-owned enterprises became some of Asia's largest conglomerates, such as
2093-604: Is mainly a centralized form of management and tends to be differentiated from adhocracy , in which management tends more to decentralization . Although the term bureaucracy first originated in the mid-18th century, organized and consistent administrative systems existed much earlier. The development of writing ( c. 3500 BC) and the use of documents was a critical component of such systems. The first definitive example of bureaucracy occurred in ancient Sumer , where an emergent class of scribes used clay tablets to document and carry out various administrative functions, such as
2184-683: Is the state which has really made itself into civil society." Leon Trotsky developed a critical theory of the emerging Soviet bureaucracy during the early years of the Soviet Union. According to political scientist Thomas M. Twiss, Trotsky associated bureaucratism with authoritarianism , excessive centralism and conservatism . Social theorist Martin Krygier had noted the impact of Trotsky's post-1923 writings in shaping receptive views of bureaucracy among later Marxists and many non-Marxists. Twiss argued that Trotsky's theory of Soviet bureaucracy
2275-571: The Aditya Birla Group , Tata Group , Emami , Kirloskar Group , Larsen & Toubro , Mahindra Group , Bajaj Group , ITC Limited , Essar Group , Reliance Industries , Adani Group and the Bharti Enterprises . In Brazil the most important conglomerates are J&F Investimentos , Odebrecht , Itaúsa , Camargo Corrêa , Votorantim Group , Andrade Gutierrez , and Queiroz Galvão. In New Zealand, Fletcher Challenge
2366-742: The Ashanti Empire was built upon a sophisticated bureaucracy in Kumasi , with separate ministries which saw to the handling of state affairs. Ashanti's Foreign Office was based in Kumasi. Despite the small size of the office, it allowed the state to pursue complex negotiations with foreign powers. The Office was divided into departments that handled Ashanti relations separately with the British , French , Dutch , and Arabs . Scholars of Ashanti history, such as Larry Yarak and Ivor Wilkes , disagree over
2457-642: The Bangladesh High Court requested that Concord hand over an 18-story building built on land occupied by the Salimullah Orphanage ; said court determined that the contract used to acquire the land was illegal. Concord Group won the 2010 BID International Quality Summit (IQS) Award in New York based on "Excellence, Innovation, Customer Satisfaction, Technology, Leadership Strategic Planning & Business Results". They also received
2548-670: The Qing dynasty collapsed, marking the end of China's traditional bureaucratic system. A hierarchy of regional proconsuls and their deputies administered the Roman Empire . The reforms of Diocletian (Emperor from 284 to 305) doubled the number of administrative districts and led to a large-scale expansion of Roman bureaucracy. The early Christian author Lactantius ( c. 250 – c. 325) claimed that Diocletian's reforms led to widespread economic stagnation, since "the provinces were divided into minute portions, and many presidents and
2639-537: The Russian Empire , and the regimes of Europe . Mill referred to bureaucracy as a distinct form of government, separate from representative democracy. He believed bureaucracies had certain advantages, most importantly the accumulation of experience in those who actually conduct the affairs. Nevertheless, he believed this form of governance compared poorly to representative government, as it relied on appointment rather than direct election. Mill wrote that ultimately
2730-652: The United States , conglomerates became popular in the 1960s as a form of economic bubble driven by low interest rates and leveraged buyouts. However, many of them collapsed or were broken up in the 1980s due to poor performance, accounting scandals, and antitrust regulation. In contrast, conglomerates have remained prevalent in Asia, especially in China , Japan , South Korea , and India . In mainland China , many state-affiliated enterprises have gone through high value mergers and acquisitions , resulting in some of
2821-579: The highest value business transactions of all time. These conglomerates have strong ties with the government and preferential policies and access to capital. During the 1960s, the United States was caught up in a "conglomerate fad " which turned out to be a form of an economic bubble . Due to a combination of low interest rates and a repeating bear-bull market , conglomerates were able to buy smaller companies in leveraged buyouts (sometimes at temporarily deflated values). Famous examples from
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2912-410: The mohrdar , who affixed the state seal; and the marakur ' stable master ' , who supervised the royal court. Through the use of his increasing revenue, Uzun Hasan was able to buy the approval of the ulama (clergy) and the mainly Iranian urban elite, while also taking care of the impoverished rural inhabitants. The Safavid state was one of checks and balance, both within the government and on
3003-440: The 1960s include Gulf and Western Industries , Ling-Temco-Vought , ITT Corporation , Litton Industries , Textron , and Teledyne . The trick was to look for acquisition targets with solid earnings and much lower price–earnings ratios than the acquirer. The conglomerate would make a tender offer to the target's shareholders at a princely premium to the target's current stock price. Upon obtaining shareholder approval,
3094-627: The 1980s, General Electric also moved into financing and financial services , which in 2005 accounted for about 45% of the company's net earnings. GE formerly owned a minority interest in NBCUniversal , which owns the NBC television network and several other cable networks . United Technologies was also a successful conglomerate until it was dismantled in the late 2010s. With the spread of mutual funds (especially index funds since 1976), investors could more easily obtain diversification by owning
3185-534: The British model also took personal physique and character into account. Like the British, the development of French bureaucracy was influenced by the Chinese system. Under Louis XIV of France , the old nobility had neither power nor political influence, their only privilege being exemption from taxes. The dissatisfied noblemen complained about this "unnatural" state of affairs, and discovered similarities between absolute monarchy and bureaucratic despotism . With
3276-464: The Catholic Church, he pointed out that bureaucracy is only appropriate for an organization whose code of conduct is not subject to change. He then went on to argue that complaints about bureaucratization usually refer not to the criticism of the bureaucratic methods themselves, but to "the intrusion of bureaucracy into all spheres of human life." Mises saw bureaucratic processes at work in both
3367-498: The Chinese. The governments of China, Egypt, Peru and Empress Catherine II were regarded as models of Enlightened Despotism, admired by such figures as Diderot, D'Alembert and Voltaire. Napoleonic France adopted this meritocracy system and soon saw a rapid and dramatic expansion of government, accompanied by the rise of the French civil service and its complex systems of bureaucracy. This phenomenon became known as "bureaumania". In
3458-461: The Continental type is called a "Weberian civil service" or a "Weberian bureaucracy". Social scientists debate whether Weberian bureaucracy contributes to economic growth . Political scientist Jan Vogler challenges Max Weber's characterization of modern bureaucracies. Whereas Weber describes bureaucracies as entailing strict merit recruitment, clearly delineated career-paths for bureaucrats,
3549-940: The Daily Star - DHL Bangladesh Business Award in the category: "Enterprise of the year 2000' in recognition of "Outstanding Leadership Quality and as Role model in Corporate Business in Bangladesh.” In 2022, they won a National Environment Medal for their contributions to environment protection and pollution control in Bangladesh . The group's main business is real estate & construction . This organization has developed over 1,200 residential , Commercial property projects by 2023, including, private property , autonomous property, government projects and monuments . Conglomerate (company) A conglomerate ( / k ə ŋ ˈ ɡ l ɒ m ə r ə t / )
3640-555: The Iranian areas, Uzun Hasan preserved the previous bureaucratic structure along with its secretaries, who belonged to families that had in a number of instances served under different dynasties for several generations. The four top civil posts of the Aq Qoyunlu were all occupied by Iranians, which under Uzun Hasan included: the vizier, who led the great council ( divan ); the mostawfi al-mamalek , high-ranking financial accountants;
3731-603: The United States, some of the examples are The Walt Disney Company , Warner Bros. Discovery and The Trump Organization (see below). In Canada, one of the examples is Hudson's Bay Company . Another such conglomerate is J.D. Irving, Limited , which controls a large portion of the economic activities as well as media in the Province of New Brunswick . Some cite the decreased cost of conglomerate stock (a phenomenon known as conglomerate discount ) as evidential of these disadvantages, while other traders believe this tendency to be
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3822-483: The apparatus used by the British government to subjugate Ireland as "the Bureaucratie, or office tyranny, by which Ireland has so long been governed". By the mid-19th century the word appeared in a more neutral sense, referring to a system of public administration in which offices were held by unelected career officials. In this context bureaucracy was seen as a distinct form of management , often subservient to
3913-441: The associated bureaucracy. Politicians like Margaret Thatcher and Ronald Reagan gained power by promising to eliminate government regulatory bureaucracies, which they saw as overbearing, and return economic production to a more purely capitalistic mode, which they saw as more efficient. In the business world, managers like Jack Welch gained fortune and renown by eliminating bureaucratic structures inside corporations. Still, in
4004-669: The bureaucracy stifles the mind, and that "a bureaucracy always tends to become a pedantocracy." The fully developed bureaucratic apparatus compares with other organisations exactly as does the machine with the non-mechanical modes of production. –Max Weber The German sociologist Max Weber (1864-1920) was the first to study bureaucracy formally, and his works led to the popularization of this term. In his essay Bureaucracy , published in his magnum opus , Economy and Society in 1921, Weber described many ideal-typical forms of public administration , government, and business . His ideal-typical bureaucracy, whether public or private,
4095-469: The civil service was identical to the Confucian ideal of a general education in world affairs through humanism. Well into the 20th century, classics, literature, history and language remained heavily favoured in British civil service examinations. In the period of 1925–1935, 67 percent of British civil service entrants consisted of such graduates. Like the Chinese model's consideration of personal values,
4186-455: The conglomerate usually settled the transaction in something other than cash, like debentures , bonds , warrants or convertible debentures (issuing the latter two would effectively dilute its shareholders down the road, but many shareholders at the time were not thinking that far ahead). The conglomerate would then add the target's earnings to its earnings, thereby increasing the conglomerate's overall earnings per share . In finance jargon,
4277-502: The discovery of a universal and uniform underlying structure of managerial or work levels in the bureaucratic hierarchy for any type of employment systems. Jaques argues and presents evidence that for the bureaucracy to provide a valuable contribution to the open society some of the following conditions must be met: Like every modern state, a liberal democracy is highly bureaucratized, with numerous sizable organizations filled with career civil servants . Some of those bureaucracies have
4368-589: The earlier Chinese model. By the mid-19th century, bureaucratic forms of administration were firmly in place across the industrialized world. Thinkers like John Stuart Mill and Karl Marx began to theorize about the economic functions and power-structures of bureaucracy in contemporary life. Max Weber was the first to endorse bureaucracy as a necessary feature of modernity, and by the late 19th century bureaucratic forms had begun their spread from government to other large-scale institutions. Within capitalist systems, informal bureaucratic structures began to appear in
4459-409: The early 19th century, Napoleon attempted to reform the bureaucracies of France and other territories under his control by the imposition of the standardized Napoleonic Code . But paradoxically, that led to even further growth of the bureaucracy. French civil service examinations adopted in the late 19th century were also heavily based on general cultural studies. These features have been likened to
4550-467: The end came in January 1968, when Litton shocked Wall Street by announcing a quarterly profit of only 21 cents per share, versus 63 cents for the previous year's quarter. This was "just a decline in earnings of about 19 percent", not an actual loss or a corporate scandal, and "yet the stock was crushed, plummeting from $ 90 to $ 53". It would take two more years before it was clear that the conglomerate fad
4641-771: The examples are Adamjee Group , Dawood Hercules , House of Habib , Lakson Group and Nishat Group . In the Philippines , the largest conglomerate of the country is the Ayala Corporation which focuses on malls , bank , real estate development , and telecommunications . The other big conglomerates in the Philippines included JG Summit Holdings , Lopez Holdings Corporation , ABS-CBN Corporation , GMA Network, Inc. , MediaQuest Holdings , TV5 Network, Inc. , SM Investments Corporation , Metro Pacific Investments Corporation , and San Miguel Corporation . In
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#17327974705424732-589: The first satellite township in Bangladesh and constructed the country’s first revolving tower in Chittagong. They constructed 7 world-class theme parks in Bangladesh including Fantasy Kingdom & Foy's Lake Complex. They introduced new technology involving reinforced concrete block masonry to serve as a better structural system for earthquake-prone zones. The Department of Environment fined Concord Group 1.4 million taka for building 12-story and two 15-story buildings without their permission. On 17 September 2015,
4823-694: The forces of change brought on by the Industrial Revolution propelled many countries, especially in Europe, to significant social changes. However, due to the conservative nature of the Tsarist regime and its desire to maintain power and control, social change in Russia lagged behind that of Europe. Russian-speakers referred to bureaucrats as chinovniki ( чиновники ) because of the rank or chin ( чин ) which they held. The government of
4914-528: The form of corporate power hierarchies, as detailed in mid-century works like The Organization Man and The Man in the Gray Flannel Suit . Meanwhile, in the Soviet Union and Eastern Bloc nations, a powerful class of bureaucratic administrators termed nomenklatura governed nearly all aspects of public life. The 1980s brought a backlash against perceptions of "big government" and
5005-638: The full separation of bureaucratic operations from politics, and mutually exclusive spheres of competence for government agencies, Vogler argues that the overwhelming majority of existing public administrative systems are not like this. Instead, modern bureaucracies require only "minimal competence" from candidates for bureaucratic offices, leaving space for biases in recruitment processes that give preferential treatment to members of specific social, economic, or ethnic groups, which are observed in many real-world bureaucratic systems. Bureaucracies are also not strictly separated from politics. Writing as an academic while
5096-478: The good government which consists in the advancement of men of talent and merit only", and that the British must reform their civil service by making the institution meritocratic . Influenced by the ancient Chinese imperial examination , the Northcote–Trevelyan Report of 1854 recommended that recruitment should be on the basis of merit determined through competitive examination, candidates should have
5187-663: The headquarters of corporations to mergers, in which independent ventures were reduced to subsidiaries of conglomerates based in New York or Los Angeles. Pittsburgh, for example, lost about a dozen. The terror instilled by the mere prospect of such harsh consequences for executives and their home cities meant that fending off takeovers, real or imagined, was a constant distraction for executives at all corporations seen as choice acquisition targets during this era. The chain reaction of rapid growth through acquisitions could not last forever. When interest rates rose to offset rising inflation, conglomerate profits began to fall. The beginning of
5278-622: The historic Foy's Lake to Concord Group for 50 years to develop it into a resort and amusement park named Foy's Lake Concord . In 2007, Concord Group began construction work on a shopping Complex called Police Plaza, which was built in partnership with the Bangladesh Police Welfare Trust of the Bangladesh Police . The building is located in Gulshan Thana and was completed in 2015. They set up
5369-426: The importance of ritual in family, relationships, and politics. With each subsequent dynasty, the bureaucracy evolved. In 165 BC, Emperor Wen introduced the first method of recruitment to civil service through examinations. Emperor Wu (r. 141–87 BC) cemented the ideology of Confucius into mainstream governance by installing a system of recommendation and nomination in government service known as xiaolian , and
5460-579: The late 18th century, the ratio of fiscal bureaucracy to population in Britain was approximately 1 in 1300, almost four times larger than the second most heavily bureaucratized nation, France. Thomas Taylor Meadows , Britain's consul in Guangzhou , argued in his Desultory Notes on the Government and People of China (1847) that "the long duration of the Chinese empire is solely and altogether owing to
5551-510: The latter makes for progress and improvement." American sociologist Robert K. Merton expanded on Weber's theories of bureaucracy in his work Social Theory and Social Structure , published in 1957. While Merton agreed with certain aspects of Weber's analysis, he also noted the dysfunctional aspects of bureaucracy, which he attributed to a "trained incapacity" resulting from "over conformity". He believed that bureaucrats are more likely to defend their own entrenched interests than to act to benefit
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#17327974705425642-510: The management of taxes, workers, and public goods/resources like granaries. Similarly, Ancient Egypt had a hereditary class of scribes that administered a civil-service bureaucracy. In China , when the Qin dynasty (221–206 BC) unified China under the Legalist system, the emperor assigned administration to dedicated officials rather than nobility, ending feudalism in China, replacing it with
5733-520: The mid-18th century. Gournay never wrote the term down but a letter from a contemporary later quoted him: The late M. de Gournay... sometimes used to say: "We have an illness in France which bids fair to play havoc with us; this illness is called bureaumania." Sometimes he used to invent a fourth or fifth form of government under the heading of "bureaucracy." The first known English-language use dates to 1818 with Irish novelist Lady Morgan referring to
5824-464: The modern world, most organized institutions rely on bureaucratic systems to manage information, process records, and administer complex systems, although the decline of paperwork and the widespread use of electronic databases is transforming the way bureaucracies function. Karl Marx theorized about the role and function of bureaucracy in his Critique of Hegel's Philosophy of Right , published in 1843. In Philosophy of Right , Hegel had supported
5915-503: The most powerful private economic conglomerate in 1920s Europe – Stinnes Enterprises – which embraced sectors as diverse as manufacturing, mining, shipbuilding, hotels, newspapers, and other enterprises. The best-known British conglomerate was Hanson plc . It followed a rather different timescale than the U.S. examples mentioned above, as it was founded in 1964 and ceased to be a conglomerate when it split itself into four separate listed companies between 1995 and 1997. In Hong Kong, some of
6006-434: The necessity of bureaucracies in modern society. The German sociologist Max Weber argued that bureaucracy constitutes the most efficient and rational way in which human activity can be organized and that systematic processes and organized hierarchies are necessary to maintain order, maximize efficiency , and eliminate favoritism. On the other hand, Weber also saw unfettered bureaucracy as a threat to individual freedom , with
6097-652: The new businesses they had recently purchased, and by the mid-1970s most conglomerates had been reduced to shells. The conglomerate fad was subsequently replaced by newer ideas like focusing on a company's core competency and unlocking shareholder value (which often translate into spin-offs ). In other cases, conglomerates are formed for genuine interests of diversification rather than manipulation of paper return on investment. Companies with this orientation would only make acquisitions or start new branches in other sectors when they believed this would increase profitability or stability by sharing risks. Flush with cash during
6188-437: The organization as a whole but that pride in their craft makes them resistant to changes in established routines. Merton stated that bureaucrats emphasize formality over interpersonal relationships, and have been trained to ignore the special circumstances of particular cases, causing them to come across as "arrogant" and "haughty". In his book A General Theory of Bureaucracy , first published in 1976, Elliott Jaques describes
6279-510: The potential of trapping individuals in an impersonal " iron cage " of rule-based, rational control. The term bureaucracy originated in the French language : it combines the French word bureau – ' desk ' or ' office ' – with the Greek word κράτος ( kratos ) – ' rule ' or ' political power '. The French economist Jacques Claude Marie Vincent de Gournay coined the word in
6370-559: The power of this sophisticated bureaucracy in comparison to the Asantehene . However, both scholars agree that it was a sign of a highly developed government with a complex system of checks and balances . Instead of the inefficient and often corrupt system of tax farming that prevailed in absolutist states such as France, the Exchequer was able to exert control over the entire system of tax revenue and government expenditure. By
6461-492: The pressure of being under surveillance and had to make sure they governed in the best interest of their leader, and not merely their own. The Ottomans adopted Persian bureaucratic traditions and culture. Defunct The Russian autocracy survived the Time of Troubles and the rule of weak or corrupt tsars because of the strength of the government's central bureaucracy. Government functionaries continued to serve, regardless of
6552-459: The private and public spheres; however, he believed that bureaucratization in the private sphere could only occur as a consequence of government interference. According to him, "What must be realized is only that the strait jacket of bureaucratic organization paralyzes the individual's initiative, while within the capitalist market society an innovator still has a chance to succeed. The former makes for stagnation and preservation of inveterate methods,
6643-714: The production of electronics such as televisions. While not a keiretsu, Sony is an example of a modern Japanese conglomerate with operations in consumer electronics , video games , the music industry , television and film production and distribution , financial services , and telecommunications . In China, many of the country's conglomerates are state-owned enterprises , but there is a substantial number of private conglomerates. Notable conglomerates include BYD , CIMC , China Merchants Bank , Huawei , JXD , Meizu , Ping An Insurance , TCL , Tencent , TP-Link , ZTE , Legend Holdings , Dalian Wanda Group , China Poly Group , Beijing Enterprises , and Fosun International . Fosun
6734-408: The role of specialized officials in public administration , although he never used the term bureaucracy himself. By contrast, Marx was opposed to bureaucracy. Marx posited that while corporate and government bureaucracy seem to operate in opposition, in actuality they mutually rely on one another to exist. He wrote that "The Corporation is civil society's attempt to become state; but the bureaucracy
6825-399: The ruler's legitimacy or the boyar faction controlling the throne. In the 17th century, the bureaucracy expanded dramatically. The number of government departments ( prikazy ; sing., prikaz ) increased from twenty-two in 1613 to eighty by mid-century. Although the departments often had overlapping and conflicting jurisdictions , the central government, through provincial governors,
6916-405: The same time, raised very far above the dull level of mere technical detail by the fact that through its greater principles it is directly connected with the lasting maxims of political wisdom, the permanent truths of political progress. Wilson did not advocate a replacement of rule by the governed, he simply advised that, "Administrative questions are not political questions. Although politics sets
7007-413: The service in question cannot be subjected to economic calculation, bureaucratic management is necessary. He did not oppose universally bureaucratic management; on the contrary, he argued that bureaucracy is an indispensable method for social organization, for it is the only method by which the law can be made supreme, and is the protector of the individual against despotic arbitrariness. Using the example of
7098-586: The tasks for administration, it should not be suffered to manipulate its offices". This essay became a foundation for the study of public administration in America. In his 1944 work Bureaucracy , the Austrian economist Ludwig von Mises compared bureaucratic management to profit management. Profit management, he argued, is the most effective method of organization when the services rendered may be checked by economic calculation of profit and loss. When, however,
7189-406: The transaction was " accretive to earnings." The relatively lax accounting standards of the time meant that accountants were often able to get away with creative mathematics in calculating the conglomerate's post-acquisition consolidated earnings numbers. In turn, the price of the conglomerate's stock would go up, thereby re-establishing its previous price-earnings ratio, and then it could repeat
7280-637: The translation of Confucian texts during the Enlightenment , the concept of a meritocracy reached intellectuals in the West, who saw it as an alternative to the traditional ancien regime of Europe. Western perception of China even in the 18th century admired the Chinese bureaucratic system as favourable over European governments for its seeming meritocracy; Voltaire claimed that the Chinese had "perfected moral science" and François Quesnay advocated an economic and political system modeled after that of
7371-425: The well-known conglomerates include Jardine Matheson (AD1824), Swire Group (AD1816), (British companies, one Scottish one English; companies that have a history of over 150 years and have business interests that span across four continents with a focus in Asia.) C K Hutchison Whampoa (now CK Hutchison Holdings ), Sino Group , (both Asian-owned companies specialize business such as real estate and hospitality with
7462-668: The whole process with a new target. In plain English, conglomerates were using rapid acquisitions to create the illusion of rapid growth. In 1968, the peak year of the conglomerate fad, U.S. corporations completed a record number of mergers: approximately 4,500. In that year, at least 26 of the country's 500 largest corporations were acquired, of which 12 had assets above $ 250 million. All this complex company reorganization had very real consequences for people who worked for companies that were either acquired by conglomerates or were seen as likely to be acquired by them. Acquisitions were
7553-401: The word is used very often to blame complicated rules, processes, and written work that are interpreted as obstacles rather than safeguards and accountability assurances. Socio-bureaucracy would then refer to certain social influences that may affect the function of a society. In modern usage, modern bureaucracy has been defined as comprising four features: Bureaucracy in a political theory
7644-529: Was "always applied with an opprobrious connotation", and by 1957 the American sociologist Robert Merton suggested that the term bureaucrat had become an " epithet , a Schimpfwort " in some circumstances. The word bureaucracy is also used in politics and government with a disapproving tone to disparage official rules that appear to make it difficult—by insistence on procedure and compliance to rule, regulation, and law—to get things done. In workplaces,
7735-661: Was able to control and regulate all social groups, as well as trade, manufacturing, and even the Eastern Orthodox Church . The tsarist bureaucracy , alongside the military , the judiciary and the Russian Orthodox Church , played a major role in solidifying and maintaining the rule of the Tsars in the Tsardom of Russia (1547–1721) and in the Russian Empire (1721–1917). In the 19th century,
7826-467: Was essential for a study of Soviet history and understanding the process of capitalist restoration in Russia and Eastern Europe. Political scientist, Baruch Knei-Paz argued Trotsky had, above all others, written "to show the historical and social roots of Stalinism" as a bureaucratic system. One of the predictions made by Trotsky in his 1936 work, The Revolution Betrayed , was that the USSR would come before
7917-462: Was formed in 1981 from the merger of Fletcher Holdings , Challenge Corporation, and Tasman Pulp & Paper, in an attempt to create a New Zealand-based multi-national company. At the time, the newly merged company dealt in construction, building supplies, pulp and paper mills, forestry, and oil & gas. Following a series of bungled investments, the company demerged in the early 2000s to concentrate on building and construction. In Pakistan , some of
8008-450: Was not necessarily an admirer of bureaucracy, Weber saw bureaucratization as the most efficient and rational way of organizing human activity and therefore as the key to rational-legal authority , indispensable to the modern world. Furthermore, he saw it as the key process in the ongoing rationalization of Western society . Weber also saw bureaucracy, however, as a threat to individual freedoms, and ongoing bureaucratization as leading to
8099-487: Was on its way out. The stock market eventually figured out that the conglomerates' bloated and inefficient businesses were as cyclical as any others—indeed, it was that cyclical nature that had caused such businesses to be such undervalued acquisition targets in the first place —and their descent put "the lie to the claim that diversification allowed them to ride out a downturn." A major selloff of conglomerate shares ensued. To keep going, many conglomerates were forced to shed
8190-539: Was still prominent in both dynasties. It was not until the Song dynasty (960–1279) that the recruitment of those who passed the exams and earned degrees was given greater emphasis and significantly expanded. During the Song dynasty (960–1279) the bureaucracy became meritocratic . Following the Song reforms, competitive examinations took place to determine which candidates qualified to hold given positions. The imperial examination system lasted until 1905, six years before
8281-455: Was to keep records of all actions of the state officials and report directly to the Shah. The Shah himself exercised his own measures for keeping his ministers under control by fostering an atmosphere of rivalry and competitive surveillance. And since the Safavid society was meritocratic, and successions seldom were made on the basis of heritage, this meant that government offices constantly felt
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