Managerialism in Advanced Industrial Societies According to Weber there are three options of structural power available to the entrepreneur in advanced industrial societies. These include the bureaucracy, charisma and tradition, or feudalism. These three options are discussed below in terms of organizations and elites, rationalization and bureaucratization, stratification, authority, and domination.

Bureaucracy

The bureaucratic option is also referred to as transactional in nature. Bureaucratization occurs as a result of knowledge.

Rationalization in this option occurs in the form of legality, where there is a rational legal hierarchical power; this is built on the basis of rational knowledge. All other aspects is subject to rationalization. Elites are chosen according to their merits based on knowledge, as are stratification, authority and domination.

Legal authority is therefore carried out in terms of issuing rules. The leader also must submit to systematic and impersonal discipline. Rational values and rules are determined by agreement among the elite forces within the organization. In this way a set of abstract rules are determined and these are enforced in certain circumstances. Thus everybody is subject in some way to the same set of rational rules and regulations. In terms of stratification,...

Persons in their hierarchical capacity give and receive impersonal orders from officials in their impersonal capacity rather than from persons as such. The rationalization process here occurs in terms of the knowledge attached to a certain position. Authority is exercised from the power of such knowledge among subordinates.
Charisma

Charismatic leadership is based upon elitism rather than rationalization. The person exercising this option is a person with exceptional gifts such as superhuman powers and heroic qualities. Such authority rests upon the elitism of this person. Here normative patterns and order are deterimined by the charismatic personality. Obedience and subordination are therefore not based upon principles of bureaucratization. Instead the major elements in this option are authority and domination, to which submission occurs on the basis of a feeling, or of faith. Personal trust in the leader is inspired by means of his or her heroism and excellent qualities.

The achieved authority and stratification are maintained by means of continued benefits to followers. This is a continuous effort, since this authority does not rest on rational grounds, but on the grounds of what can be proved. This contrasts with…