Rationalization in Organizations

1508 WordsFeb 23, 20186 Pages
For an organization looking to cut costs, what would be the advantages and disadvantages of rationalization? Debbie Lester N0490833 Rationalization is the reorganization of a business in order to increase its efficiency. This may mean either decreasing the size of the company or sometimes even expanding it, a change in the strategy and maybe even a different way of performing some of the tasks included in making the business successful. This way the business is able to achieve its goals and targets. Rationalisation is advantageous for the business because it increases the efficiency of the business. Junction Hotel employees are incompetent and lack experience and productivity in the way in which the business is run. One way in which rationalisation will benefit the business is through Fayol and his philosophies on organising workers. He brings up the idea of direct and indirect control. Direct control is when one person is in charge of the business and is able to speak to the work force face to face and have a personal relationship with each employee. This would only work within a small business as the bigger the business the more workers you would need to employee and having one person at the top with all the control of all would make the business unmanageable and disorganised as there is too many people for one person to be responsible for all. As the Junction Hotel is quite a large business I would advise that using indirect control would help the output of the
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