The Capitalist FirmĪccording to Weber, the rational-legal system was first devised and perfected by big capitalist firms, and only later adopted by entities such as the state. The modern state, with its powers of knowledge and its control over legal codes, exercises authority by always tracking and watching its citizens. Similarly, a state uses this ever-knowing eye over its citizens as a disciplinary measure. When the inmates of a prison know they are being watched all the time, they have little incentive to attempt to escape. The panopticon is a device that is capable of watching everything in a given setting, such as a prison. Michel Foucault )1980) reflected upon the awesome power of the modern nation-state by using the metaphor of the panopticon. They then use this data to enforce the laws. They collect as much data about the citizenry as possible – from dates of birth and death, to income records, to registration of marriages and divorces and everything in between. The state employs a vast workforce whose only purpose is to enforce laws. tax agencies), passing laws, and operating a judiciary system. The nation-state exercises rational-legal authority by employing bureaucrats to monitor the movement of money (i.e. Instead, it strives to be efficient and predictable, both necessary preconditions for the development of capitalism, with which rational-legal authority is inextricably intertwined. Unlike charismatic and traditional authority, rational-legal authority is rarely whimsical or unpredictable. It extends to the persons exercising the authority of office under it only by virtue of the formal legality of their commands and only within the scope of authority of the office.” ( Weber, 1978) “In Rational Legal Authority, obedience is owed to the legally established impersonal order. In his bureaucratic theory of management, Weber defined rational-legal authority as follows: Conclusion Rational-Legal Authority Definition
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