All forms of government establish bureaucracies to administer the government and deal with the public welfare. There are agencies that collect taxes, provide for defense, give police protection, administer welfare and social security programs, operate school systems, and manage public transportation.

Private institutions also need bureaucracies. Church bodies, corporations, banks, hospitals, and charitable foundations all must have some form of management that consists of paid directors and other hired personnel.

A bureaucracy is characterized by a highly developed division of labor, an authority structure, the assignment of certain tasks to specific individuals, and regulations established for the operation of the organization. A member of the bureaucracy, called a bureaucrat, is recruited for a job on the basis of qualifications, such as education or experience, that demonstrate an ability to perform specialized tasks. Usually the wages paid to a bureaucrat depend on the person's status or grade within the organization, rather than on performance or productivity.

The virtue of a bureaucracy lies in doing efficiently the job for which it was intended. To do their jobs well, agencies need trained, professional workers who are dedicated to public service.

There are two major faults that may occur in any bureaucracy. First, an agency may forget that its purpose is to serve the public. It may become overly aggressive in its actions and policies and may seek to expand its size, jurisdiction, and power at the expense of the public and of other agencies. Second, an agency may become so bogged down in routine and procedures that it forgets its function and its assignments. It may seek to avoid responsibility and to shift work onto some other agency. It may also become afraid of innovation and challenge and seek only to perpetuate its own existence.

To guard against bureaucratic excesses and failures, modern states—especially the democracies—have made the agencies of government accountable to elected officials. Bureaucracies are also subject to the law and a process known as judicial review by which courts or tribunals may pass judgment on an agency's decisions (see Administrative Law).

Bureaucracies have played a significant role in the history of civilizations by providing a kind of continuity in society. Kings, emperors, presidents, and dictators die or are removed from office, but bureaucracies are more durable and continue the process of administering a government.

Bureaucracies had their origin in the households of kings in the ancient societies of Egypt, Babylonia, Assyria, India, and China. Kings needed officials to collect taxes, to manage agriculture, to govern outlying provinces, and to lead armies. The most elaborate bureaucracy developed in China. Called the civil service, it was established in the 3rd century BC and was expanded greatly over the next several centuries. There were schools for civil servants and systems of examination for entrance and promotion. During the Sung Dynasty, from 960 to 1279, schools were established throughout the country to educate talented but poor individuals. At the insistence of the emperor, the bureaucracy managed nearly every aspect of Chinese public life. Because the bureaucracy sought to follow and preserve ancient traditions, there was little room for innovation or invention in China by the time the Middle Ages were ending in Europe.

Bureaucracies in the Western world remained largely under the control of kings until the modern period. European rulers generally tried to reserve positions in the civil service for members of the nobility, but the training and expertise required often meant accepting commoners into positions of power. The French Revolution, which ended in 1799, greatly influenced the democratization of the nation's civil service. Entrance examinations and formal qualifications for office became the means of selection. Since 1855 the members of Great Britain's civil service have been chosen on the basis of competitive examinations.

In the United States, for most of the 19th century, the agencies of government were filled by the patronage, or spoils, system. This meant that positions were filled by the friends of elected officials. To end this situation, Congress passed the Civil Service Act in 1883. Most of the states and larger cities have adopted civil service systems. (See also Civil Service.)