Discuss whether rationalisation is a desirable strategy for managing and organising

Discuss whether rationalisation is a desirable strategy for managing and organising

Is rationalisation a desirable strategy for managing and organising Junction Hotel in the current economic climate?

INTRODUCTION

This essay will try and discuss if rationalisation is desirable strategy for managing and organising Junction Hotel, its effects on organizations and workers especially given the current economic climate. In doing so, the essay will look at the available literature on rationalization and rational systems in general, their benefits as well as negative impact including a look at concepts like Taylorism which underpin rational systems Rationalization was later applied to the Junction Hotel which faces financial and management troubles before conclusions were made.

Max Weber said that Rationalization of design systems emphasize efficiency, predictability, substituting the human element for technology and control over uncertainty arguing that this helps organizations perform better (Ritzer 2008).

Frederick Taylor came up with principles of management that were to help organizations manage and organise how they work through efficiency. According to many of the principles, organizational work had to be structured with repetition and division of work where managers were given some control. As Morgan (2006) says, rational systems are made to exercise as much control as possible (Taylorism). So in these systems, managers are given control over their workers who are also given control over customers. Because of this ability to give control to management and staff, Ritzer (2008) says that these systems encourage individual responsibility and thus help people make better decisions. Since the technology plays an important part in these systems, people are able to perform faster and better and more efficiently which improves their work, in the end helping the organization reduce costs.

Coghlan (1994) says that rational systems also help improve organizational efficiency and increase productivity because it uses team work and groups of people as different members of the business from various departments come together as part of the change that is necessary to implement rational systems. This also helps team members share and learn new ideas from each other as they all come from different parts of the organization which help increase organizational productivity. This is good for an organization as high productivity of employees means that the organization if getting the best from its staff as well as performing better. Ofcourse the other side of the same coin is that highly productive employees will also be happier employees. This is why Ritzer (2008) says that rationalization leads to better employee satisfaction. The fact that they have a bigger span of control means that they are more accountable which makes them strive harder to perform for the organization hence higher productivity and performance for the organization.

Negative impact

Coghlan (1994) says that often the implementation of rationalization can also create some problems that affect the organization and its team members. An example is that organizational change that is implemented may often create more inefficiency instead. This is because the creation of team groups from different departments often brings together different levels of capabilities of each group. If one of the groups is infective, it can end up affecting the performance of the system which relies on all groups being productive. This can have an impact on both team members and the organization. The other common problem of rationalization is that it necessitates change within the organization and change is very hard to implement often for a number of reasons. One is that many people within organizations don’t like change because it means adopting new working ways and styles of doing things. People don’t like to change because they get used to old habits and ways of working but rationalization disrupts existing ways of doing things which often creates resistance to change.

Application to the Junction Hotel Case

When applied to Junction Hotel, rationalization thus becomes vital to the survival of the hotel. This is because the hotel is not only being poorly managed, but the current economic climate is also very tough for not only the hotel but many others like it. The hotel although very poorly managed still possesses its old charm elegance due to the existing infrastructure and environment. Rationalization can help restructure not only management and its ways of working but also identify the issues that lie behind the shaky foundations on which it currently finds itself in. As seen from many of the ideas that underpin rationalization. First is improvement in efficiency and installation of predictable working patterns in the hotel that will ensure consistency of service. Rationalization will lessen the impact of human errors by introducing the element of technology which will help staff do their jobs better and faster.

CONCLUSION

As we have seen, rationalization has many benefits with its emphasis on efficiency, consistency, standardization, control and the use of technology and teams to help make systems more efficient and productive. While there are negatives such as organizational change which can often meet resistance, the benefits especially to Junction hotel are more which makes rationalization a desirable strategy for the hotel.

REFERENCE LIST

COGHLAN, D (1994) ‘Managing organizational change through groups and teams,’ Leadership and Organization Development Journal 15(2): 18-23

DONKIN, R (2001) Blood, Sweat and Tears: The Evolution of Work London: Texere. (Ch. 11 – Western Electric Discovers Motivation).

MORGAN, G (2006) Images of Organization London: Sage (Ch. 2 – ‘Mechanization Takes Command’)

RITZER, G (2008) The McDonaldisation of Society (5th edition) London: Sage. (Ch. 3 – Efficiency)

DAVIS, Evan (2009), Value Engineering, BBC, http://www.bbc.co.uk/blogs/thereporters/evandavis/2007/05/value_engineering.html

BBC News Online ‘Bureaucracy hampers social workers’ 28 July 2010 http://www.bbc.co.uk/news/education-10788737

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