Disadvantages of Bureaucracy
Red tape: Bureaucracy, by its very character, follows a certain set of rules and regulations. This imparts a lack of flexibility and can often lead to inefficiency.
Bureaucratic delays: The complicated set of rules in a bureaucratic system often causes long delays.
Bureaucratic corruption: Corruption in the higher rungs of bureaucracy can be very disastrous to the economy.
Change of goals: The process of getting work done in a bureaucratic system is cumbersome and the set of rules and regulations are often given greater importance than the end result.
Compartmentalization: As the jobs are divided across categories, it restricts the opportunities for collaboration and people performing tasks in other categories.
Nepotism: Nepotism in bureaucracy is often a problem. The managers sitting on top may favor their own people and help them rise quicker than more deserving individuals.
Decision-making: Decision-making in bureaucracy is based on a certain set of rules and regulations. This rigidity often leads to opting for programmed decisions while newer avenues are not explored.
source CFI