Traditional bureaucratic governance makes disorderly and uncertain factors of production orderly through formal systems such as hierarchical authority and centralized control, and bureaucratic organization becomes an efficient product to deal with market uncertainty. According to the theory of transaction cost, uncertainty will bring transaction cost, and bureaucratic organizations can reduce transaction cost and improve transaction efficiency by bringing uncertainty into the organization. Under the development and change of market environment, bureaucratic organizations have experienced the structural forms of linear system, functional system, linear functional system, division system, matrix system, etc., and are caught in the balance of classic contradictory propositions such as centralization and decentralization, efficiency and innovation.
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