Bureaucracy can have negative consequences that impact individual people (both those who contact the bureaucracy and those who work within it) and organizations.
People who contact bureaucracies can be frustrated by the excessive "red tape" that goes with them. These rules, which often seem pointless to the person contacting them, cause delays and other inconveniences.
Bureaucrats themselves can become frustrated with the nature of their jobs. They typically are bound by rules that deprive them of much autonomy and freedom of choice. They can come to feel like cogs in a machine instead of independent workers.
Organizations can be stifled by excess bureaucracy. They can lose flexibility because everything that happens must go through all the levels of the bureaucracy. This can make it harder for the organization to take fast and decisive action.