Rationalisation

For an organisation looking to cut costs, what would be the advantages and disadvantages of rationalisation? Apply your answer to the running case study, Junction Hotel

Cost is the major concern for any organisation therefore it seeks to apply rationalism in work design and layout.Everyone likes to stretch their money as far as possible.Labour is one of the main cost,so if it is is controlled properly costs can be cut down.Proper application of rationalism can do wonders for an organisation as it cuts costs and increase efficiency all at the same time.This is what an rational organisation seeks to produce quality goods at cheap rate without compromising on the quality of the products.Reduced can lead to two things goods can sold at lower prices which will lead to increase in sales or enjoy higher profits for the organisation.

Taylor during the early 20th century found out that work in a factory was not organised and there was very less control over the workers.The workers would get along in groups and would overestimate time for manufacturing taking advantage of their expertise skills.Through Taylor’sTime and Motion study he simplified tasks and divided them into smaller tasks for the workers to do.Now each individual were set to repetitions of one single task,he completely redesigned the work flow which lead to several benefits in increasing efficiency and control over workers.This helped in mass production of goods.The main contributions of rationalisation are Taylor,Fayol,Ford and Weber.

In rationalisation work is designed to make optimum utilisation of available resources like land,labour,capital,etc.As work was divided into smaller tasks,each individual knew his task very well.He would master his task very easily and there are less chances of doing mistakes.Less skill is required for doing the jobs,labour could be easily found and trained to do a certain task. It allows mass production of goods.

It is easy for surveillance and control over workers...