Organizational Rationalization - Case Study Example

Organizational rationalization Introduction Rationalization refers to reorganization of an organization in aid of increasing its efficiency. The key features of rationalization include growing impersonality, enhancing control of material or social life, and increasing knowledge. This organization’s reorganization results in reduction or expansion of a company size, and change of a particular strategy, or alteration of policy pertaining to certain products. Just like reorganization, rationalization is widely spread and encompassing business strategy as well as management changes. It is evident that many organizations use rationalization procedure to cut down its expenses. When a company, industry, or a system rationalizes, it becomes more efficient, usually by getting rid of excess staff members and equipments, which are not essential. This essay analyses the advantages and disadvantages, which Junction Hotel will experience from rationalizing its operations. Main features of a rational organization From a rational organization perspective, organizations are specially designed to obtain a certain goal (Scott p. 29). Some of the expressions used in this rational perspective are words such as efficiency, information, implementation, design, and optimization. Other “rational” rhetoric includes authority, rules, constraints, jurisdiction, performance, coordination, programs, and directives. The two main features of a rational organization are formalization and goal specificity (Morgan p. 13). Goal specifics- Organizational goals are tentatively described as an achievement of desired objectives. However, rational perspective hypotheses that goals guide decision making on how to design the organizational structure. The junction hotel should be goal specific in order to enable the management to come up with a more official organizational chart. Formalization- Formalization degree is the extent that responsibilities depend on specific individual attributes of the person occupying the responsibilities. Formalization tries to regulate and standardize behavior. Formalization is also an effort to make the relationship structure more explicit and visible (Scott p. 31). Based on the Junction hotel perception, organizational structure should be a tool that can be amended to improve the hotel’s performance. According to Scott, formalization is an option to the information structure (p. 33). It can separate people’s feelings between employees in work activities. Most early theorists stressed rational perspective and described organizations as purposeful and deliberate. These rational theories were: Taylor and Scientific Management Taylor and his colleagues emphasized that it was easy to evaluate individual workers’ tasks scientifically in aid of discovering the procedures, which junction hotel should use to maximize the organization’s output under minimum resources and energies. Although Taylor concentrated on people, changes in personal level highly resulted in alterations at the structural level (Scott p. 34). This is highly evident in, Junction hotel, which has many personnel hence some of them do not know their exact responsibilities. This theory has changed management roles since roles of both workers and managers were under scientific investigation. Taylor’s point of view was an amalgam of social Darwinism, protestant, and a primary view of individual actions founded on economic incentives (Scott p. 35). The junction hotel should apply such theory in order to come up with a significant management of roles for both workers and managers in the hotel. By doing this, the workers will be able to complete their responsibilities at the right time hence attracting more employees. Administrative Theory (Fayol) Administrative theory stressed management roles and tried to generate wide management principle that would act as rationalization guidelines of organizational activities (Scott p. 36). Whilst scientific management rationalized from “bottom up”, administrative theory focused on productivity advancements from “top down”. Administrative theory established general principle used to formalize organizational relationships and structures (Scott p. 36). These principles include scalar, exception, span of control, and unity of command (Carl p. 45). Weber’s Theory of Bureaucracy and Authority Weber’s theory compares and contrasts differing historical and cultural periods (Scott p. 38). The author’s topology on authority (traditional, rational-legal, and Charasmatic), agreed that rational-legal power was turning to be the dominant system (replacing traditional authority) through the modern capitalism and state, because of its accurate technical power over other organizational forms. Charismatic power often arises during crisis times and has to move to rational-legal or traditional form in long-term stability. Simon’s Theory of Administrative Behavior Simon (1976) elucidated that the way by which goal formalization and specificity contribute to organizational rational behavior (Scott p. 45). He claimed against Taylor and Fayol’s theories suggesting the “administrative man” who follows his self-concentrations but fail to understand what they are, he is only aware of possible decision options, and willing to use one alternative rather than looking for a more effective one (Scott p. 45) Ways in which rational organizations increase efficiency, control, and cut down costs Junction hotel can highly benefit from organizational rationalization. For instance, rational organizational structures proposed by Weber rely on order, logic, and authority, paying exacting attention to labor division, promotion by hierarchal and merit control. Scientific management theory aims at simplifying work following a number of principles. These principles will enable the junction hotel management to make work easier, organizing it in repetitive duties with aid of achieving maximum efficiency, control, and cut down costs. Taylorism Rational organizational structures develop depending on the organization’s size. The simple structure is often employed in businesses with minimum employees like small retail stores (Taylor p. 7). This type of structure has only one member of the staff, especially manager, who controls operation of other employees, indicating that the manager has a large span of controlling others. This span of control is evident that the organization’s responsibility shift of workers to manager meaning that the employees only implement the role assigned to them by managers. The manager of the Junction Hotel thinks that there are a number of simmering tensions in the hotel whereby many are as a result of lacking a clear organizational structure, with blurred responsibilities and roles. Furthermore, in the Junction Hotel, there is lack of clear procedures, rules, and paperwork in the files takes the reception a lot of time. After the manager met with his investors’ team, the instructions from them pointed out that, the hotel management need to bring some coherent organization and management to the hotel to make it profitable. Bureaucracy As an organization develops to a more complex, there is need to insist on a rational structure to ensure maximum efficiency (Ritzer p. 52). The bureaucratic structure makes use of similar principles to those of Taylorism design, although, it incorporates many staff members and departments hence developing a command chain. This design uses more rule and regulations because of the large number of employees who have authority over other colleagues. This is to make sure that, there are specific discipline directions to enable employees know who is in charge (Ritzer p. 52). This is essential according to McDonaldization theory that emphasizes that “efficient workers can perform their tasks more rapidly and easily” A fine example of current organizations, which have benefited from rationalization, is McDonalds (Ritzer p. 53). Ritzier (2008) assists to highlight the benefits of organization structure MacDonald has developed by his Ray Kroc’s quote about the arrangement, “I was fascinated by the simplicity and effectiveness of the system…” This quote simply means that the new design maximizes MacDonald efficiency and cut down costs (Ritzer p. 53). This design can also be beneficial to Junction Hotel. By producing minimum menu choices, the hotel management is able to assign limited tasks to specific department, which accomplishes the tasks at the expected time. This will highly increase the Junction Hotel’s efficiency as the manager over-see that the workers accomplish their duties to ensure that they prepare food quickly in order to offer “fast food” to its customers,. Additionally, producing limited menu choices, McDonald cuts down costs and as Ritzer suggests “the limited menu choices allows efficient ordering of food and supplies”, the hotel does not make use costly items, which it will waste if demand goes down (Ritzer p. 54). Therefore, Junction hotel will highly benefit from sketching out the current hotel’s organization in order to indicate where each employee fits into the organizational structure (Ritzer p. 54). This will make the hotel profitable since every employee will be aware of his or her responsibilities. Employees will be able to carry out their duties at a limited time hence ensuring high quality services to the junction hotel customers. This new organizational chart will however help the employees and managers to know who reports to who and authorities owned by each employee. This will highly assist in minimizing confusion of management, which has been taking place in the hotel (Ritzer p. 55). The Junction hotel managers should highlight such as people acting in unofficial way and try to come up with solutions for such issues. This unofficial acting is clearly present in the current Junction hotel’s organizational chart. According to manager Chance, the Junction hotel will positively make the hotel profitable through rationalization. Firstly, the managerial workload, which has being negatively affecting the employees functioning, will be divided more evenly, with new levels and positions of hierarchy being established. Secondly, “A front of house manager will have all responsibilities”. Given that Meg Mortimer has a tendency of concerning herself with reception duties, she will be the most appropriate personnel to take such position. There will be promotion for each team in Junction hotel to the position of porters and receptionist all reporting to one manager. The hotel should also have a Domestic Managers who will be responsible for both cleaners and maintenance staff members. Promotion within the two departments “cleaning and maintenance” will also lead to a new level to the organizational hierarchy. Through organizational rationalization, Junction hotel employees will be able to set the entire restaurant ready for all evening meals within duration of eighty minutes, a task, which currently takes more than two hours. Within the eighty minutes, the restaurant will be set with wine glasses, correct cutlery, and napkins if done by three employees. This means that Junction hotel employees extra unnecessary employees, who hinders the hotel from making huge profits. This punctuality in hotel setting will attract more customers hence making Junction hotel to enjoy the benefits of organizational rationalization. Similar protocol should also apply with the fitness manager because new suppliers’ orders are regularly not replenished hence leading to reduction of customer rate. This is because customers are left standing at the reception with employees busying themselves with own tasks. This creates a disgusting atmosphere within the gym. The gym’s machines must be serviced regularly to ensure that customer receive the recommended services. Despite the rational organizational structure indicating positive impacts to junction hotel, it also has negative effects to businesses. If a certain organization implements such structure, this leads to a rise of limitations. The hotel rationalization will sometimes force employees to overload themselves in order to ensure that things get ready at the expected time. However, the customers will face challenges in adapting the new changes (Ritzer p. 55). Ritzier claims that although efficiency is an essential thing, it also causes employees’ dehumanization. This is evident in one of the BBC articles, which states that, Bureaucracy negatively affects social workers. Rational mechanistic work affects employees because of adopting mindless and unquestioning attitudes (Ritzer p. 55). Conclusion In conclusion, Organizational rationalization will positively fit at the Junction hotel restaurant, the gym, and other facilities of the hotel since it will improve the business efficiency, control, and cuts down costs. This is evident with McDonald hotel considering the benefits it gains from implementing rational design. By producing limited menu choices, the workers are able to accomplish their tasks at the expected time hence offering “fast food” to their customers. Rationalization also has negative impacts to the business. For instance, this leads to rise of limitations since the customers will experience challenges in adapting the new changes. Work cited Carl, Rodrigues A. "Fayol's 14 principles of management then and now:a framework for managing today's organizations effectively. Minneapolis, MN: Filiquarian Pub., LLC, 2001. Print. Davis, Evan. Value Engineering Applications in Transportation. Washington, D.C: Transportation Research Board, 2005. Print. Morgan, Gareth. Images of Organization. Thousand Oaks, Calif. [u.a.: SAGE Publ, 2007. Print. Munro, Eileen. The Munro Review of Child Protection: Final Report : a Child-Centred System. Norwich: TSO, 2011. Print. Ritzer, George. The Mcdonaldization of Society . Los Angeles: Pine Forge, 2011. Print. Scott B. Mackenzie. Organizational Behavior: It's Nature, Antecedents, and Consequences. Thousand Oaks, Calif. [u.a.: Sage, 2006. Print. Taylor, Frederick W. The Principles of Scientific Management. Minneapolis, MN: Filiquarian Pub., LLC, 2010. Print. 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