Foundations of Managing and Organising - Report Example

Foundations of Managing and Organising Number: Paper: Foundations of Managing and Organising Rationalization Rationalization defines a coherent system in an organisation. Companies and factories are rationalized in order to render them efficient to a large extent. Rationality is used in theories and also in daily life in order to define multiplicity of its meaning. Rationalization is related to characters of the actors, which provide rationale behind their actions and beliefs. Moreover, actions pertaining to achievement of the desired outcomes are regarded as rational. These rational actions form the processes followed in an organisation. The increase in rationality that characterises modern society and organisations is known as rationalisation (Kecmanovic 57-60). Junction Hotel is an upmarket city-centre hotel that foregrounds its enriched tradition for serving customers. The hotel is well-known for its quality food and world class formal services. The hotel is a new foundation of Simon Chance, the new Chief Executive and President of Second-Chance Consortium. Simon Chance is confident regarding success of the hotel. He pointed out that the hotel needs strong leadership along with good strategies in order to be a rational organisation. Here, strategies that is required for success of the hotel pertains to rational actions. The rational actions are implemented for improvement of services of the hotel. Key features of rationalisation The reorganisation of a company in order to increase efficiency is known as rationalization. The company can plan to increase or reduce its cost of production, change the policy and alter the strategy so as to become a rational organisation. The main features of rationalisation include increase in knowledge, building personality and enhance control over material and social life. Why organisations must consider it? For exploring the features of rationalisation in organisations, two basic concepts are elaborated. One concept refers to the organisation as a system. Here, organisations are regarded as solid facilities, which engage in collection of physical artefacts (buildings, machinery and technology), actors, structures and process integrated for the purpose of achieving certain goals. Such a concept encompasses activities, which examines performance of actors with the help of legitimate authority and formal status. So, an organisation needs to be rational in order to run administrative as well as production system. Rational thinking is needed for developing crucial decision making process and strong financial system. Rationalisation is also subject to terms like, processes, states, objects and events, through which performance of processes is measured in an organisation. On following these rational activities, an organisation will be able to form part of an objective world. Organisation is also conceived as life world of the members. It is assumed that other than the world of facilities, there exists a social world that defines norms and values, forming subjective part of the world. The latter defines experiences of the individuals along with feeling and desires. The lifeworld identifies the taken-for-granted universe, which is related to daily activities of members of the organisation. So, it is considered to be important for members to maintain values and norms of the organisation since lifeworld also forms a part of rational organisation. Thus, it is observed that rationalisation is not only required for framing structure of the organisation, but also for instilling norms and value within its members. Junction Hotel should consider the process of rationalization since improvement is needed for enhancing service quality as well as developing a fast system, which will enable the customer to have a good experience of staying in the hotel. Main features of rational organization The main features of a rational organisation can be depicted through the example of McDonaldization. Rationalization has grown out of control over years and economic phenomenon like, McDonaldization, has received huge success in the modern society. McDonaldization is regarded as the process whereby the rationales of fast food industry are dominating other sectors in the American society as well as worldwide (Ritzer 55-64). George Ritzer has defined rationality as a search for optimum means to an end, which is shaped by social structure, rules and regulations (Ritzer 55-64). The mechanism through which rationalisation process is carried out is bureaucracy. Max Weber had defined bureaucracy as the paradigm case for formal rationality (TSO, “Reducing cost and increasing efficiency through expert information management”). In order to understand the rational works inside an organisation, scientific management is to be understood. Scientific management was first developed by Frederick W. Taylor. His ideas regarding rationalism had shaped research work throughout the world in the 20th century. He had developed few principles for designing rational works. The principles gained sufficient popularity for a number of organisations to adopt them. The employers found out that on following these principles, employees gave their best effort and worked efficiently towards success of the organisation. The elements like, predictability, efficiency and calculability, are key concepts for discoing rationalization (Zyglidopoulos, Fleming and Rothenberg 1-7). McDonaldization process is divided into many parts. The process usually adopts a task and divides it into smaller tasks. The breakdown of the task is repeated to an extent where all tasks are broken down into smallest levels (Ritzer 55-64). Hence, result of the breakdown identifies rational for finding an efficient method for completion of each task. The rest of the methods are deemed as inefficient and are readily discarded. Breakdown of the task is a result of an efficient and logical method (Ritzer 55-64). The method can be applied repeatedly in order to get the desired outcome as produced initially. So, the result can be predicted and each aspect of the process can be controlled. It is noticed that quantity becomes the measurement for performance of the process (Zyglidopoulos, Fleming and Rothenberg 1-7). Ritzer had identified four main dimensions of McDonaldization, which are as follows: 1) Calculability: The results are quantifiable as opposed to being subjective in nature. In other words, quantity is looked upon as the major criteria compared to quality. 2) Efficiency: It denotes the best method that can be applied for completion of the task. It identifies the rational decision for accepting the best method of production. In this process of rationalization, individuality within a system is not accepted by the organisation. 3) Control: The best method can include more automation process, rather than non-human labour. 4) Predictability: The best method of production chosen guarantees standard as well as uniformity of the products (Ritzer 55-64). Rational organization increases efficiency by bringing down costs A rational organisation aims at increasing efficiency through productivity by controlling the cost element. The cost of production is a vital factor for any organisation since it regulates profit. A rational organisation desires to increase output with minimum input. Input here refers to the capital as well as human resources. Output is maximised only when the input are sufficiently adequate in order to render the process of production suitable for achieving organizational success. Success of the organisation is, thus, dependent on this process. The cost of production is reduced by employing cost effective technology and recruiting efficient workers with the ability to meet work deadlines (Zyglidopoulos, Fleming and Rothenberg 1-7). Processes used by an organisation helps in identifying whether or not it is rational. Such processes are efficient enough to support tasks of the workers so as to increase organisational efficiency. One of such rational organisations is McDonald’s, which has undertaken various processes to attract higher number of customers. The fast food chain believes in dividing its tasks into several smaller tasks, which have helped in formulation of different products that are able to meet expectations of customers. By dividing the tasks into several tasks, the company had reduced cost and increased efficiency of the workers since there is least work pressure and workers need to perform extra tasks. The process has increased efficiency of workers, besides contributing positively towards success of the company (Ritzer 64-67; Zyglidopoulos, Fleming and Rothenberg 1-7). Junction Hotel can cut down its cost by improving efficiency of workers through ways of motivating them to perform tasks properly and taking interest in satisfying customers with their queries and services. The number of absentees is to be monitored in order to maintain an uninterrupted business. Rational organization to contemporary organizations The contemporary organisations need to become strong and adaptable in any situation for surviving in the current competitive market. The current competitive market houses a number of players, which produce similar products and as a result, give a narrow chance for customers to choose the best one. However, customers do have the ability to differentiate among products of the players. To sustain in the long run, organisations should concentrate on transforming into rational organisations. Rational organisations are those, which depend on the best method for doing a particular task by dividing them into several parts. This task endows the organization with higher efficiency since the work load is distributed among several workers (Ritzer 100-107). For example, McDonald’s is a contemporary firm that is also a rational organisation, given that it chooses the best process to do a particular work. An organisation characterised by rationality gives emphasis on predictability, efficiency, substitution of non-human technology with human technology, calculability and also control over uncertainty (Ritzer 100-107). These features of a rational organisation are followed by McDonald’s. The company has followed the process of rationalization, which advocates that the most effective method must be selected for the purpose of obtaining the best result. It is noticed that in America, wage earners in the family have little time to cook their meals and those who do cook, rely greatly upon cook books. So, these individuals often visit fast food restaurants for their meals. McDonald’s have capitalised this opportunity to feed these consumers by offering them limited and simple menu, that are cooked and served in assembly line fashion (Ritzer 100-107). The customers pick their order from the company stores and consume them as per their convenience. Such services or facilities have effectively catered to customer satisfaction, keeping their convenience in mind (Ritzer 100-107). In the modern and rational society, consumers know what to expect as they enter a setting. They do not want surprises nor do they expect so. In order to ensure predictability, a rational organisation should stress upon discipline, routine, formalization and methodical operation. The fast food restaurants like, McDonald’s, rank high in predictability. It ensures consistency in food quality and offers limited menu. The predictable end products are made of raw materials with similar serving techniques and their preparations are also considerably the same. Hence, when a consumer enters fast food restaurants, he/she has the idea regarding outlook of the place or the menu to be served (Ritzer 100-107). It is quite difficult to measure quality. So, the rational society has developed a series of parameters for evaluating quantity, which is the substitute for quality. Quantity is the central dimension of modern rational society. In case of McDonald’s, it is observed that the company gives emphasis on the number of hamburgers sold in a day. The company also gives effort in informing society on size of their products (McHugh 103-106). Advantages and disadvantages of rational organization A rational organisation aims to employ efficient workers who are able to perform work easily and rapidly. This acts as an advantage. It identifies the fact that employees are efficient enough to do more of the assigned work in the same time than the usual. This leads to increase in efficiency of the business (Morgan 19). The job responsibilities present the expectations from each employee and they are encouraged to perform their work efficiently so as to achieve desired goal of the organisation. They are motivated to be loyal and give in full effort while contributing towards success of the organisation. The key principle of Taylor indicates that employees can specialise in their work. It is the most influential process in a rational organisation (Rodrigues 880-889). Nevertheless, it is observed that the approach is not deemed appropriate for all tasks. It is best when the task is unambiguous, products are similar and human efforts are complicated. It may cause harm to implementation of the whole process (Rodrigues 880-889). As in case of Junction Hotel, the method is harmful since the hotel cannot be included in production line. It deals with customers and methods cannot be different for each customer. Taylorism is highly relevant to manufacturing industry and not the hotel industry (Morgan 21; Rodrigues 880-889). The main disadvantages of a rational organisation include foundation of those organisational forms, which are difficult to accommodate in dynamic situations of the present day scenario. These organisational forms also dehumanise employees working in the organisation, mainly at lower levels of the hierarchy. It is difficult for these low level employees to keep pace with changes since they are not the policy makers and adapting to these changing policies acts as an obstacle. The rational organisations can also give rise to bureaucracy, which can limit efficiency of employees to a certain extent, thereby restricting their ability to perform (Taylor 6-11). Main issues, ideas and theorists of Globalization Globalisation is defined as the “tendency of investment funds and businesses” (Taylor 6-11) for pushing the boundary of trade beyond national or domestic markets. It improves communication between different markets. Globalization has remarkable effects on increasing international trade as well as on cultural exchange (Taylor 6-11). Globalization has helped many countries to cope up with recent changes, in terms of tastes and preferences of the people. New companies are set up to meet needs of customers. In addition to that, renowned companies are expanding worldwide for developing underdeveloped or developing nations. Globalization has brought in several changes for economy as well as for companies that are operating in a particular nation. The economic changes that are seen to take place are deregulation of certain policies, global expansion of the marketplace and trade liberalization. The political changes are “rearrangement of power from the states to the interstate bodies and the growth of global civil society” (BBC News Online, “Bureaucracy hampers social workers”). The merits and demerits of globalization have been examined over last few years and are argued upon to give a definite structure for the same. The individuals who have undertaken research on globalization have pointed out that it has helped developing nations to keep pace with changing tastes and preferences around the world. The industrialized nations experienced rise in technological advances and employment. The only and most important disadvantage of globalization is the diminishing sovereignty of rich nations, where cheap labour is used for domestic jobs. Globalization of McDonald’s has been a great move by the company since the stores are found nearly in all corners of the world. Despite facing challenges, the company is able to overcome them and function successfully. The maximum numbers of stores are found in suburban areas as there are shopping malls, which are crowded throughout the day. After shopping, people grab the sumptuous items of McDonald’s and enjoy them on their way or at home. Hence, the concept of McDonald’s has been successful all over the world. Stringent surveillance is provided in the stores for ensuring security. Relation between globalization and rational organization Globalization has led to growth and enhancement of culture globally. In a rational world, institutions follow dissimilar cultures, which have shaped various models for differentiating their businesses and individual identities from others. In rational organisations, the term progress has been defined by human rights, sovereignty and greater authority of management. Such is done by structuring actions for individuals, thereby providing a general framework for managing disputes globally. The rational organisations determine the best method for performing a particular job. Globalization takes place when companies establish their business overseas and enter a new market with new products and services. The strategies that are adopted by companies involving global performance are the best ones, which will bring about success in future. Hence, a rational organisation and globalization play similar roles in a developing country i.e. choosing the best method or strategy for performing a definite work effectively. Globalization in Junction Hotel Globalization of Junction Hotel will help in developing new markets for the hotel. The services will be customised according to needs and preferences of individuals, where the business will expand. The services as well as essential requirements of the tourists are to be concentrated upon in order to satisfy them. The products of the hotel include food that is offered to customers and essentials for bedrooms as well as bathrooms. Junction Hotel will be successful only if it is able to satisfy the customers and stimulate them into visiting repeatedly (Davis, “Value Engineering”). In order to become a rational organisation, Junction Hotel has to serve customers with best services and products that are available in the market. The hotel should improve service quality of the staff who attends to the visitors. It has been noticed that Junction Hotel lacks in good services quality and slow pace of the work has caused great inconvenience to customers. Therefore, if Junction Hotel becomes a rational organisation, then it will get the opportunity to improve overall experience of visitors. If the services are improved, then the hotel can also earn higher profit, thereby rendering plan for success of the hotel successful. Works Cited BBC News Online. “Bureaucracy hampers social workers.” BBC. BBC News, 2010. Web. 28 April 2014. Davis, Evan. “Value Engineering.” BBC, BBC News, 2009. Web. 28 April 2014. Kecmanovic, Dubravka Cecez. “Information systems and rationalization of organizations: an exploratory study.” ECIS (2002): 57-67. Web. 28 April 2014. McHugh, M. “Rationalization as a key stressor for public sector employees: An organizational case study.” Occup 48(2) (1998): 103-112. Web. 28 April 2014. Morgan, Gareth. Images of organization. London: Sage Publications. 2006. Print. Ritzer, George. The McDonaldisation of Society. London: Sage Publication. 2010. Print. Ritzer, George. “The McDonaldisation of Society.” Journal of American Culture 6(1) (1983): 100-107. Web. 28 April 2014. Rodrigues, Carl. “Fayol’s 14 principles of management then and now: a framework for managing today’s organizations effectively.” Management Decision 13(10) (2010): 880-889. Web. 28 April 2014. Taylor, Federick. Principles of scientific management. Harper: New York. 2011. Print. TSO. “Reducing cost and increasing efficiency through expert information management.” TSO, 2009. PDF File. Web. 28 April 2014. Zyglidopoulos, Stelios, Peter Fleming and Sandra Rothenberg. “Rationalization, overcompensation and the escalation of corruption in organizations.” Journal of Business Ethics (2008): 1-9.Web. 28 April 2014. Read More