Which management theory emphasizes the need for a clear hierarchy and division of labor?

The correct answer emphasizes the importance of a structured organization where roles and responsibilities are clearly defined. Bureaucracy theory, developed by Max Weber, advocates for a systematic approach to management that includes a clear hierarchy of authority, standardized procedures, and a division of labor. This structure is intended to create efficiency and predictability within organizations.

In a bureaucratic setting, tasks are divided among specialized roles, which allows individuals to focus on specific areas of expertise. The hierarchical nature of bureaucracy ensures that every employee understands their position in the organization and the chain of command, which facilitates better coordination and control. This theory underscores the premise that an organization's effectiveness greatly depends on its structure, rules, and procedures.

Understanding the principles of bureaucracy is crucial for evaluating the overall effectiveness of organizational management, particularly in larger entities where complexity necessitates clear lines of responsibility and authority.