Reducing Bureaucracy

Most organizations employ various internal functions to help management to comply with government and regulatory agencies (e.g., filing forms to report the number of injuries in a factory or filling out SEC documents to report the sale of company shares by executives). There is increasing concern about the costs of these regulatory functions, as well as their administrative burden. To this end, a host of instruments - the Standard Cost Model, for one - have been developed to simplify these functions.

Many governments have begun to measure how much time, money, and effort businesses spend to comply with bureaucratic regulations. Some have announced initiatives that will cut red tape and bureaucracy significantly. But in some instances, the internal functions created in response to red tape create their own red tape and superimpose it on the rest of the organization. The best way to reduce bureaucracy is often through maximizing information and communications technology to reduce paperwork and increase efficiency.

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