Organization Studies - Essay Example

Scientific management and the human relations theory are related to the rationalization theory of Max Weber. Specifically, scientific management by Frederick Taylor was formally rational because it involved the use of a well calculated procedure to produce maximum output at minimum input within organisations. On the other hand, human relations theory is substantively rational in nature because it calls for emphasis on sociopsychological and moral qualities of labour rather than scientific calculation and maximization of profits.

The formal or technical rationality defined by Weber meant that an organisation is based on hierarchy of authority, functional specialization, impersonality and rules. Formal rationality is distinguished from substantive rationality because it is defined as a way of choosing the best means to a given end (ONeill, 1986). On the other hand, Weber defined substantive rationality as a way of determining whether the end achieved is rational. Substantive rationality is based on values and morals that define an organisation or a society.

Formal rationality is based on measurements and calculations. In terms of economic action, formal rationality recognizes the extent of quantitative accounting in decision making (Weber, 1962). Weber suggests that such quantitative approach of decision making is possible and applicable. Weber further argues that formal rationality is a variable not an attribute because it has a varying extent. According to Weber, expressing items in terms of money is the best way of achieving the highest degree of formal rationality (Wallace, 1990).

Formal rationality entails socially invented measurements which are determined by symbolic representation and manipulation of empirical observations. Such measurement scales can be used to assess the given means and results under given circumstances. Therefore, formal rationality