Explain How Rational Organisational Design Helps an Organisation to Cut Costs and Increase Control. What Are the Positive and Negative Impacts of Rational Organisation Design for the Organisation and Its Employees? Essays

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Cost versus benefit should run through every business decision” is the opinion expressed by Evan Davis in 2007 as part of his article on value engineering. Value engineering involves providing the most efficient product or service possible (Davis 2007), which is comparable to rational organisational design, which generally strives to create the most efficient organisation possible. However there are a few different approaches to maximising efficiency through rational organisation which will be mentioned in this essay.

Rational organisation is beneficial as efficient workers can perform more rapidly and easily (Ritzer 2008) meaning more work is done in the same amount of time, leading to increased efficiency for the business as a whole.
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Rational organisation such as Taylorism allows managers to control workers by transferring the responsibility for the organisation of work from workers to managers (Morgan). Bureaucracy de-humanises workers and turns them into parts of a machine which is controlled by a manager (Morgan). As Taylor himself said “Hardly a competent workman can be found who does not devote a considerable amount of time to studying just how slowly he can work and still convince his employer he is going at a good pace.” (Donkin) By turning employees into components of an organisational machine, managers take away the ability of workers to do this. This would not be a wise thing to do considering the current state of affairs at Junction Hotel, particularly whilst it is still not particularly clear who does and who does not have a managerial role. Certain workers, such as the chef, may resist the change and resent becoming just another cog in a machine, when previously they have had a very active role in the way the hotel was run.

In modern day organisations, such as fast food restaurants, rational organisational efficiency has been increased by incorporating customers into part of the structure. For example, in restaurants, your order is taken by a member of staff and food is delivered to you at your table. In fast food restaurants however, the customer has to