Final answer:
A bureaucracy is a structured system used in organizations to manage operations efficiently, characterized by a clear hierarchy and rules. It is essential for maintaining order in both government and business sectors, especially within the framework of capitalism.
Step-by-step explanation:
A man-made system consisting of people, authority, organization, policies, and procedures whose objective is to accomplish the work of planning and controlling the operations of the organization is known as a bureaucracy. This system is characterized by a hierarchy of authority, a clear division of labor, explicit rules, and impersonality.
Such systems are essential in both governmental and business sectors, as they provide a structured means of managing operations efficiently, though they may also be prone to bureaucracy and red tape. In the context of capitalism, where the means of production are owned by individuals and companies rather than by the government, bureaucracies within businesses help ensure compliance with laws, regulations, and ethical standards, thereby maintaining order and function in the pursuit of profit.