What is the likely effect of an increase in bureaucracy on businesses?

An increase in bureaucracy within a business context typically leads to longer processing times. Bureaucracy refers to the administrative system governing any large institution, which often involves multiple layers of management and complex procedures. As a result, when there is an increase in bureaucracy, companies may experience slower decision-making processes due to the necessity of following these procedures and obtaining approvals at various levels.

This additional layer of complexity often means that tasks and decisions take longer to execute, which can impede the overall efficiency of the organization. For instance, if a company needs to implement a new policy or launch a product, the required approvals and adherence to established procedures can delay these initiatives significantly. Consequently, when businesses experience increased bureaucracy, they are likely to face extended processing times for everything from internal approvals to external transactions, affecting their agility and responsiveness in the market.