Topic > Advantages and Disadvantages of Rationalization in an Organization…

In this essay I will discuss what rationalization is in an organization. I will also mention the advantages and disadvantages of rationalization and connect/compare it with social organization. I will also talk about Fordism and the Hawthorne effect and how these theories can influence or improve businesses like Junction Hotel. Junction Hotel is trying to reduce costs but does not want standards to drop, nor does the hotel's reputation. There are a few different approaches that companies like Junction Hotel can take to reduce costs; one way to do this would be rationalization. Rationalization is a method of organizing the structure of the company, i.e. the workers and managers, in order to achieve maximum performance and capacity. One way to do this would be through a hierarchy or bureaucratic structure. At the moment there is no fixed management in the Junction hotel; this means that policies and procedures are unclear and staff do not know who to report to if there are problems while working. Staff are unable to carry out the roles they are assigned because the job descriptions have not been fully explained, there are no clear objectives and goals. For example, the head chef manages the staff while the head chef should manage the kitchen. An in-depth report shows the consequences of poor bureaucracy when a social care department is not run as it should, roles are unclear and targets are not met, leading to the deaths of young girls. [BBC 2010]Rationalization is work designed to achieve maximum efficiency and reduce costs, including aspects of bureaucracy and scientific work design.Fordism is a theory that Henry Ford established based on his production of automa... . middle of paper ......those in your group then you are a pain in the ass, but if you do nothing and expect others to do all the work then you are an abuser. As for the staff at the Junction hotel, some do not understand their actual role and what they are supposed to do, while others perform tasks for the rest of the group in addition to their individual tasks. Furthermore, groups have a much greater impact on workers than management, which causes the group's results to be reflected in the culture. [Miller and form 1964]The use of IT technology and software is very important nowadays, almost every business has important documents such as customer details, accounts, employee schedules and pay slips which are all processed and created on computers. Junction Hotel must ensure that it employs staff capable of managing online accounts to avoid unprecedented errors and incidents.