Advantages And Disadvantages Of Rationalization In An Organization

973 Words2 Pages

In this essay I will be discussing what rationalisation is in an organisation.I will also mention the advantages and disadvantages of rationalisation and link/ compare it to social organisation. I will also talk about fordism and the hawthorne effect and how these theories can impact or improve businesses like junction hotel. Junction hotel is looking to cut costs but doesn't want standards to drop as well as hotel reputation. There are a few different approaches businesses such as Junction Hotel can take to cut costs; one way in order for it to do so would be rationalisation. Rationalisation is a method of organising the structure of the business i.e the workers and managers in order to gain the full performance and capability. A way in which this can be done would be through a hierarchy or bureaucratic structure. At the moment in junction hotel there isn't any set management; this means policies and procedures are unclear and staff do not know who to report to with issues during work. The staff aren't able to carry out the roles which are set to them because the job descriptions haven't fully been explained, there isn't any clear objectives and aims. For example the head chef is managing staff when the head chef should be managing the kitchen. A ofsted report shows the consequences of poor bureaucracy when a department of social work isn't managed to the ability it should be, roles aren't clear and the objectives aren't being met this has resulted to a young girls death. [BBC 2010] Rationalisation is work that is designed to achieve maximum efficiency and reduce costs, encompassing aspects of bureaucracy and the scientific design of work. Fordism is a theory which Henry Ford established it is based on his production of autom... ... middle of paper ... ...that those in your group then you are a rate- buster but if you you do nothing and expect others to do all the work then you are a chisler. For Junction hotel staff some do not understand their actual role and what they are suppose to be doing, while others are carry out task for the rest of the group as well as their own individual tasks. Also the groups have a much bigger impact on the workers than management do, this results to the groups output reflecting by the culture. [Miller and Form 1964] The use of IT technology and software nowadays is very important, almost every business has important documents such as customer details, accounts, employee schedules and paychecks which are all processed and created on computers. Junction Hotel must make sure that they employ staff with capability to manage online accounts to avoid errors and unprecedented accidents.

More about Advantages And Disadvantages Of Rationalization In An Organization

Open Document