Exercises underpinning poorly rated bureaucracy (3,4)
I believe the answer is:
red tape
'bureaucracy' is the definition.
(red tape means bureaucratic processes)
'exercises underpinning poorly rated' is the wordplay.
'exercises' becomes 'pe' (Physical Education class).
'underpinning' says to put letters next to each other (I've seen this in other clues).
'poorly' indicates an anagram (I've seen this in other clues).
'rated' is an anagram of 'redta'.
'pe' put after 'redta' is 'RED-TAPE'.
(Other definitions for red tape that I've seen before include "Colourful bureaucratic procedure" , "What may be binding" , "Intricate official routine" , "Bureaucratic papers and routines" , "European regulations?" .)