Importance of Rationality in Organisations - Assignment Example

Rationality in Organisations Rational organisation undertakes specific goals and objectives that exhibit formal structures. The organisation is formed by members who aim at having an organisation that will meet their objective of collaboration. Thus the rationality of organisation is that people come together to form an organisation to achieve certain goals. Rationality theory upholds that individuals make decisions that are not based on emotional motives or superstitions but quantitative observable data that can suit the plans and actions needed in an organisation to ensure efficiency and reliability of the system (Miller, 2012). The desire to achieve efficiency forms the major part of rationality and organisation is considered as a mechanism where different parts are used to achieve the desired results. Since managers work towards achieving the best results, rationality is based on the efficiency of systems to achieve the desired outcome. This paper attempts to reveal how organisations show rationality in the decisions that are made in management level and the rationality of organisation through its independence and formation. Rational system involves two main elements that include goal specificity and formalisation. Rationality in organisations is related to formalisation of activities and decisions that form the daily systems of the organisation. This means that the organisation behaviour is shaped by standardisation and regulation of all activities in the organisation to achieve efficiency (Sapru, 2011). Through formalisation, stable expectations in production and results acts as the main focus of the company and this is one of the preconditions of rationality. An organisation offers an environment where employees are expected to perform to achieve certain goals and objectives of the company through a formal system thus resulting to rationality. It is therefore important to note that many organisations are rational owing to the fact that they operate with an objective to achieve desired results through formalised principles that are not based on emotions or superstitious beliefs (Catino, 2013).  Goal specificity involves the fact that organisations are formed for a specific objective or goal. Organisations focus on certain goals as their main purpose of operation. Specific goals are used as equipment for supporting rational behaviour in an organisation where they provide guidelines on the structural design, and this points on what specific tasks need to be carried out to ensure great performance and how to allocate resources to achieve the goal (Lussier, 2012).Organisations are rational when they are able to outline specific goals where performance should be used to determine whether the goal has been achieved. In addition, the fact that organisation allocates certain resources towards accomplishment of the goal shows the rationality of the organisation (Hatch and Cunliffe, 2013).  According to scientific management approach outlined by Taylor, rational organisations aim at maximising returns or input of resources. He analysed and evaluated tasks that were performed by employees and he concealed the best procedure and program that would ensure maximum output with minimum inputs of energy and resources. His discovery led to changes in entire work management structure as there was efficiency and improved results owing to rationalisation of labour at the level of individual employee. There are certain principles which he outlined in his scientific approach and they include development of science for every element that is involved in elements of individual’s work, scientific selection and train of employees, maximum cooperation with the employees to ensure that each task is undertaken according to the plan and division of responsibilities and work between the management and employees occurs. He further proposed the incentive system that is based on the performance of an individual as an effective motivation tool (Lussier, 2012).  Organisations which apply the system or approach outlined by Taylor enjoy maximum returns and output from minimum inputs. Employees maximise their output through the guidance of principles in Taylor’s scientific discovery. The fact the Taylor proposed use of incentive in rewarding performance as a tool of motivation is indeed critical. The requirements of the approach may lead to resistance from workers and thus the best tool to use is motivational one through incentives on performance. However, there are arguments that have been raised against the approach. Employees are said to be resistant to time-study procedures that are aimed at standardising different aspects of their performance. Moreover, employees may reject the incentive system that requires them to continuously perform during peak levels of efficiency. It is therefore difficult sometimes to ensure rationality in organisation by application of Taylor’s principles but once applicable, they can propel the organisation to maximum output from minimum resources (Catino, 2013).  Fayol’s discussion on rationality is based on administrative theory where he emphasises on the management’s need to put up guidelines that are based on broad administrative principles which are essential in accomplishment of rationalisation of the organisational activities. According to Fayol, there are two main categories of management activities which include; coordination is a key element that is related to collaborations using tools like unity of command, span of control, scalar chain as well as exception principle (Thompson, 2003). The approach is further based on specialisation where various activities are distributed with regard to positions where it transforms a group into a work unit. In this principle, work can be divided within the departments and according to line staff-principle. This approach ensures rationalisation through definition of roles among employees and the management. When tasks are clearly defined according to individual abilities and skills, results are achieved. Moreover tools like scalar chain and unity of command ensures that directions and work requirements can be effected down the organisational hierarchy. One of the arguments that were passed by Herbert Simon stated that the principles in the approach are truthful but they are not realistic. It is therefore possible that it is hard to apply such principles in organisations (Brunsson, 2007).  Simon clarified and elaborated on the processes that ensure goal formalisation affect the rational behaviour in organisation especially during decision-making. His theory and approach was based on the fact that realistic rational goals can only be achieved by putting boundaries and limits on how a rational manager should make decisions. This concept is referred to as “bounded rationality” (Secchi, 2011). He suggested that rather than managers seeking solutions through processes that could maximise returns they could engage in pursuit of various alternatives and select the solution that would solve the problem even if the solution may not be the best one. He proposed this as a way of ensuring that managers could save time as time was a constraint. He further clarified on goal specificity by stating that goals were as “means-ends chains”, where they were organised in hierarchical manner. The goals in are considered as means in relation to goals that are levels below while they are considered as end in relation to goals that are levels above it. Formalisation involves the formalised structures that are used to support the rational decision making process through simplifying using border of responsibilities between the management and employees where guidelines are provided to participants to handle them (Thompson, 2003).  The characteristics of a rational in organisations are based on efficiency where organisation is upheld as a mechanism where different parts operate with an aim of achieving certain goals. The managers are involved in a process of eliminating any part that does not show its ability to transform goals in the organisations. Determining the optimality on rational behaviour requires that the manager to find a quantifiable problem formulation that can be used to solve the problem at hand. When making decision on how much quantity should be used to achieve certain objective, the manager should involve rationality based on his knowledge and experience. Since many organisations are able to apply rational decisions in issues such as formulation of objectives, setting goals, outlining activities and tasks as well as responsibilities for employees to undertake, they can be described as rational. Rationalisation in organisation further entails formation of the organisation (Heyse, 2006).  An organisation is formed by a group of people who come together with an objective of undertaking certain goal in life that is not based on superstitions or emotional motives. Since people join with an aim of achieving certain objectives, their decisions are based on rationality. There are organisations which are based on production, voluntary or non-profit organisations and making profits. Based on their line of operation, organisations mostly gain rationality by their goal and objective. Since they operate in different lines, rationality is based on the particular objective and how the company makes decisions on efficiency, optimality and other issues such as division of responsibilities (Secchi, 2011).  Decision making process is considered as rational of the organisation. However, when managers make decisions based on personal motives or for selfish gains, the decisions in such an organisation are irrational. All decisions should not be based on personal motives, emotional issues or superstitious beliefs. When organisations are formed with other personal or emotional motives they reveal lack of rationality and they cannot be considered rational. Companies formed to accomplish revenge missions or as a way of consolation owing to disaster that happened are considered irrational (Rainey, 2009).  In conclusion, organisations are rational because they are formed from rational decisions where people come together to achieve a certain goal. Decision making in organisation further ensures rationality as decisions are based on efficiency in order to achieve the goal of such an organisation. Many organisations are based on rationality so they are rational. References Brunsson, N. (2007) The consequences of decision-making, Oxford, Oxford Univ. Press. Catino, M. (2013) Organisational myopia: problems of rationality and foresight in organisations. Hatch, M.J. & Cunliffe, A.L. (2013) Organisation theory: modern, symbolic, and postmodern perspectives. Heyse, L. (2006) Choosing the lesser evil: understanding decision making in humanitarian aid NGOs, Aldershot, England, Ashgate. Lussier, R. N. (2012) Management fundamentals: concepts, applications, skill development, Mason, Ohio, South-Western. Miller, K. (2012) Organisational communication: approaches and processes, Boston, MA, Wadsworth Cengage Learning. Rainey, H.G. (2009) Understanding and managing public organisations, San Francisco, CA, Jossey-Bass. Sapru, R.K. (2011) Public policy: art and craft of policy analysis, New Delhi, PHI Learning. Secchi, D. (2011) Extendable rationality understanding decision making in organisations, New York, Springer, viewed February 11, 2014 from . Thompson, J.D. (2003) Organisations in action social science bases of administrative theory, New Brunswick, NJ, Transaction Publ. Read More