... intensive, and calculable administration... capitalism in its modern stages of development strongly tends to foster the development of bureaucracy, though both capitalism and bureaucracy have arisen from many different historical sources. Conversely, capitalism is the most rational economic basis for bureaucratic administration and enables it to develop in its most rational form. (Weber, 1964: p.338, cited in Organisations, p. 87) Although their origins can be traced separately, the two are highly compatible: Weber says that capitalism is distinctive for its 'pursuit of profit, and forever renewed profit, by means of continuous rational capitalistic enterprise' (Weber, 1930: p.17, cited in Organisations, p.87). Capitalistic organisations could therefore be differentiated from earlier organisations by their systematic and rational methods of ensuring long-term profits. This systematisation relied on methods of control, devolving responsibilities from the top of the hierarchies downwards. To give one example, the profession of capital accounting can be seen as one which ...

See this essay or coursework document in full right now