This article focus its attention on the study of the altematives to bureaucracies for the formal organizations since, in the Author's views, bureaucracy is not going to survive as it is known today, due to its own characteristics. He starts the discussion by presenting two opposing sides of bureaucracy, namely, "bureaucraphilia" and "bureaucraphobia". Those led by Downs are the bureaucraphilists that believe bureaucracies "are here to stay"; and the other side has Gouldner and his followers who wage a continuous war against some features and functions of bureaucracy. The Author's purpose is to face the problem of bureaucracy as a reality and this is done by a diagnostic analysis of the bureaucratic phenomenon, removing those most criticized features and testing the possible life of bureaucracy without them. As an altemative to bureaucracy social scientists have been working on some experiences like those of management by objectives, managerial grid and participation group system and the tendency seems to be a transfer of the decision making from the "bureau" to the group of members of the organization. This is the essence of groupocracy, a practical interpretation of democracy in organizations. Groupocracy offers the possibility of breaking down hierarchy in order to give birth to a new organizational structure and develop the group organizational administrative authority. Participation in management is the basis of groupocracy; thus groupratic organization makes possible the merger of political and administrative behavior. Experiences in the Yugoslavian organizational system shows that groupocracy seems to be the most favorable form of organization to be implemented in the turbulent environment where modern organization tries to survive.