Foundations of Management and Organization - Essay Example

Rationalization Essay Introduction Rationalization can be defined as all possible attempts put in place to change pre-existing style of workflow into the one that is developed based on published set of rules wit an objective of reducing strain (King and Lawley 2013). It should be noted tat the application of rationalization tools simply refer to the selection of application based on business need and prioritization related action (King and Lawley 2013). Rationalization simply refers to choosing what you will do and what you won’t do (King and Lawley 2013). Furthermore the application of rationalization tools also involve effectively manager the values of both existing and proposed application. Discussion There are two aspects that are normally connected to rationalization. The first aspect includes the question on the number and size of the institution in the sector (Morgan 2006). The second aspect is determination as to whether the institutions are despite their numbers can be collaborated to minimize duplication of duties by the entire system (Morgan 2006). It important to note that rationalization has both beneficial aspect and disadvantageous side of its application on an existing company. By the virtue that the core objective of introducing rationalization is to bring quality services, the issues of costs reduction is out of question (Morgan 2006). It should be noted that rationalization will result in increased prices of goods and services in the company. When relating this with Travelodge hotel, rationalization has made customers even not to pay for services they don’t (Morgan 2006). Travelodge just like many hotels have embraced the need to offer quality services. In most scenarios, customers do not mind about the high costs accelerated by rationalization rather, they focus more on clean and confortable place where one can get a good night sleep (Morgan 2006). Therefore, despite the speculation that rationalization will reduce prices, the truth is that it contributes to high costs of goods and services offered (Rodrigues 2001). It should also be noted that rationalization which people believe will modify the institution to be bigger and larger is a misguided notion (Rodrigues 2001). It is not a guarantee that by improving the quality of services within an institution should also be accompanied by expansion of its size and departments. Application of rationalization tools will guarantee advancement in quality service pleasing to customers but it will not enhance business expansion. It should be noted that in Travelodge where rationalization is being used for very long time, the hotel always have customers who appreciate the services (Rodrigues 2001). It is important to note that despite Travelodge applying rationalization the hotel has got no shampoos in the bathroom. This is so despite other bigger hotels do offer so many frills and other stuffy requirements with some not necessary to the customer (Ritzer 2010). With rationalization in place at Travelodge, the management insists on no need of imposing high prices to customers on things they don’t need. Quality is the main objective of the establishment and avoids imposing their customers on unnecessary extras. Rationalization application is also very important when it comes to service efficiency (Ritzer 2010). The efficiency in service is a practice that did not spontaneously erupt from nowhere. It must have engaged someone who deeply thought about the entire operation. This is rationalization. In Travelodge hotel, the efficiency food services was practiced both formally and informally, called value management to optimize their processes, trim costs and enhance quality in both products and services (BBC News Online 2010). In most big companies, the idea of rationalization is normally done in a more structured manner. This normally includes involving consultants and launching a fair scientific process using the so-called FAST diagrams (BBC News Online 2010). Contrary, when it comes to smaller business establishments, rationalization is normally conducted haphazardly. This could even include inviting the designers and sitting in a rationalization workshop and the ideas will flow unidirectional (BBC News Online 2010). As a benefit, employment of rationalization has an end result where more money is freed up and not wasted in purchasing of unnecessary facilities customers do not need (Davis 2009). This allows this money to be pumped into other business initiatives that primarily target improving the quality and efficient of the services of the establishment. By incorporating rationalization, the good portfolio management is also applied to the establishment. This management strategy will ensure that the establishment has an insight into gaps or redundancies (Taylor 2011). This strategy will allow enhancement of the establishment ability to curb deficiencies in services. The management also has power to introduce of reinforce areas offering service delivery to customer for example customer case services (Taylor 2011). One of the limitation or disadvantages of incorporating rationalization is that it contributes to retrenchment of employees (King and Lawley 2013). This is exhibited when rationalization demand incorporation of modern and automatic machines (King and Lawley 2013). This calls for reduction of human manpower as machines take charge for efficiency services. The other disadvantage of rationalization is the fact that its implementation especially on big establishment normally results in formation of combined businesses (BBC News Online 2010). Despite the fact that this type of businesses have elaborate efficiency in services, but it make entry of a new business man into the market difficult. This is because it is hard to compete n already established and organized business at the first entrance into the market. Due to this effect, the business will dominate and the income will be share among few people to a great extent (BBC News Online 2010). The rich continues to be rich and the poor wallows in poverty. Essay 2 Rationalization apart from the efficiency is service delivery, has a bigger contribution towards effective control of the business by management. It should be noted that in the current business industry, organization control is mutating to become more and more impersonal and this makes it easy to realize in the bureaucratic organization (Thomas and Robert). Most managers use their workers to realize presence of bureaucratic. This is evident when managers exercise control over the workers by imposing strict rules to workers to operate in his defined ways. Bringing down costs is the core objectives of organizations that tend to employ rationalization in their systems. Notable to mention is the fact that rational organizations are basically designed to pursue some certain and specific goals including operational efficiency, better marketing position, financial benefits and competitive advantage (Willmott 1993). This is a major advantage of incorporating rationalization within as establishment. As part of the disadvantages imposed by the establishment of rationalization include exclusion of consideration of lower rank position within the organization (Willmott 1993). The fact still remain that organization like Junction hotel which are adopting to rationalization have bureaucracy strategies of management the main disadvantage comes when rationalization is being employed, it mostly targets top managers according to the bureaucratic while the workers who effect the changes are at a lower hierarchy (Willmott 1993). Rationalization being considered to be the restructuring of business in order to improve on its efficiency, this changes in policy however should carefully be designed in away that it empowers workers in performing different tasks (Willmott 1993). Rationalization does not always guarantee expansion of the business, but rather focus on quality services even if the company reduces in terms of capacity holding. One of the most fundamental factor that will ensure that rationalization works out is an establishment is people or workers management strategies (Smircich 1983). Bureaucracy is never the solution to effective management of people when implementing rationalization. It has been revealed that in Junction hotel, it is noted that the efficiency of bureaucracy yet it has negative effect being impacted on workers (Smircich 1983). The truth is that too much pressure on worker precisely on management of daily activities is demotivation for them. Not everybody will be free to work at place where the managers are demanding rules to be followed without fail. Bureaucracy is in most cases linked to inflexibility and the source of demotivation imposed on workers (Smircich 1983). For Junction hotel where there is too much bureaucracy; as a result of incorporation of rationalization, risks massive resignation of workers due to harsh working environment (Smircich 1983). Staff exit is again disadvantageous for Junction hotel. This is because it will lower the efficiency due to lack of staff and will consume more time during the recruitment process. In addition to this, the move is expensive for Junction hotel since they will have to spend more money to train new staff that might again leave a result of bureaucracy (Smircich 1983). Social organizations in particular do apply organizational theory. When assessing the implication of rationalisation on social organization, the fact is to understand the social units that are structured and managed to meet the exact planned need of the establishment (French, John, Hunt, James and Richard 2011). In regard to junction hotel, rationalisation has resulted in cut down on manual workers. Unemployment is a key disadvantage when rationalisation is employed in an organization. The emergence of modern automatic machine in Junction hotel has contributed in reduction in employed workers to pave way for the machines to operate (French et al 2011). Hawthorne studies or group studies depict that the amplitude of individuals serves as an imperfect predictor of job performance (French et al 2011). Social factors have a bigger role in determining the amount of work produced despite information on the physical potentiality of the individual. One of the disadvantages is the fact that informal organization has a negative effect of rationalisation implementation. This is because instead of promoting efficiency, rationalisation will be lowering productivity by the workers. Introduction of rationalisation has some implication on psychological perspective most specifically on motivation. Rationalisation promotes strategies that ensure that job efficiency and quality services are offered despite the costs (Smircich 1983). Application of idea on people management where the supervisor establishes a good working relationship and monitors workers directly is motivating. There is need of transformation the way employees at Junction hotel feel and think while they are at work. Employee perception toward work has to change since the core objective is to have top quality services in the hotel (Smircich 1983). Rationalization benefit on employees motivation is that it allows staffs to positively engage together in the hotel projects which in turn will encourage them when sharing their experience and views (Willmott 1993) Organization of culture is another important advantage of incorporating rationalization as far as reducing costs is concerned (Edgar and Schein 2010). This is because it is known that culture is a metaphor and there are many issues related to organization of culture. Culture organization is a key area that can be beneficially in achieving organization effectiveness (Van Maanan 1984). In addition to this, organization of culture in Junction hotel is a measure that best aid in employee management and also in monitoring daily activities carried out by the employees. This makes the application of Rationalization in Junction hotel very easy since it is one of the most essential in maximizing efficiency in service output (Van Maanan 1984). One of the most potential disadvantages exhibited especially when Junction hotel adopts rationalization is centralization of power. The power centralization will spread throughout the organization and a more rigid bureaucracy will be born (Van Maanan 1984). The central power will have long and time consuming outline of reporting and due to its rigidity, employee control will be lost. The bureaucracy chain is too long to effectively and efficiently contact in the name of supervision (Van Maanan 1984). For better absorption of rationalization, leadership is a critical position which assures successful adaptation of the strategy. The most advantageous attribute of rationalization precisely on Junction hotel is the fact that it allows incorporation of three categories of leadership for effective and efficient service delivery (Daniel and Scott 2012). The adoption of autocratic leadership, the one exhibited in Junction hotel has adverse benefits (Daniel and Scott 2012). This includes empowering the leader to impose strict control over the group and on the other hand the group members will have no idea of the strategies the autocratic leader is employing to govern them (Daniel and Scott 2012). This raises the individual target and boost service efficiency as exhibited in junction hotel. The employment of democratic leadership aims at counseling workers and advising them more instead of imposing tough rules and command. The most specific area for this democratic leadership is to overview on individual workers goals and activities by routine (Daniel and Scott 2012). Finally the laissez-faire leadership is much different from the other two. This leadership is authorized to grant authority to the workers and even create an environment where workers will freely work to attain their goals under minimum or no supervision (Daniel and Scott 2012). In Junction hotel, this rationalization implementation has beneficially seen the establishment improve their quality and effectiveness in services rendered. The most disadvantage of this leadership is that it can lower employee’s motivation. For example, autocratic leadership that imposes severe and harsh conditions to workers is a factor that will lower intrinsic motivation thus affecting service delivery in the establishment (Thomas and Robert 2004). Conclusion In conclusion, it is relevant to acknowledge that hotel business managed by Junction and Travelodge belong to the hospitality industry. Under this industry, the main characteristic is a scenario where hotel employees deal with customers in person and on daily basis (Thomas and Robert 2004). The truth is that employment of rationalization in a hotel setup is not the best option. This is in spite of all the stated benefits believed to be ushered in when rationalization is incorporated into the management systems. His is because during the current economic recession, hotel businesses are advised not to follow the rational way but should focus on profit making (Thomas and Robert 2004). Modern competitive organizations have also realized that the main objective of using whatever strategy in managing hotel business is purely being effective and efficient in profit making. Contrary to this need, hotels like Junction do not believe in this strategy. The business believes that rationalization can be integrated with other different perspectives of social and economic attribute to increase productivity (Thomas and Robert 2004). This will also see their core objective of customer satisfaction being accomplished. Rationalization has a very important role that it plays primarily when it comes to business management. The above discussion has elaborately explained how and purpose of rationalization in improving efficiency in service output. References BBC News Online, 2010. Bureaucracy hampers social workers. Viewed 20 April 2014, . Daniel, K and Scott, L. 2012. Organizational Behavior, Book Core Text. 7 Davis, E 2009, Value Engineering, BBC, Viewed 20 April 2014, . Edgar H and Schein C 2010, Organizational culture and leadership. French, R., John, S., Hunt, R., James, S and Richard, O. 2011, Organizational behavior. King and Lawley 2013, Organizational Behaviour, Oxford University Press, Oxford. 2-4 Morgan, G 2006, Images of Organization London: Sage. 2 Ritzer, G 2010, the McDonaldisation of Society. London: Sage. 3 Rodrigues, C 2001, ‘Fayol’s 14 principles of management then and now: a framework for managing today’s organizations effectively.’ Management Decision. 13. 10: 880-889. Smircich, L 1983, Concepts of culture and organizational analysis Taylor, F.W 2011, Principles of Scientific Management. Viewed 20 April 2014, . Thomas, P and Robert, W 2004, In search of excellence: lessons from Americas best-run companies. Van Maanan 1984. Occupational communities: culture and control on organizations. Willmott, H 1993, Strength is ignorance; slavery is freedom: managing culture in modern organizations. Read More