Rationalisation in the Hotel Industry Essay

Words: 1179
Pages: 5

Is Rationalisation a desirable strategy for managing and organising Junction hotel in the current economic climate?

With the economy being in a double dip recession (and it the deepest and longest recession for generations) there is a major lack of demand for goods and services in the economy. Vice Chancellor, George Osbourne delivered the Autumn Statement 2012 yesterday (Wednesday the 5th December) and stated to expect slower growth [1]. Taking these factors into account, the future for Junction Hotel isn’t looking bright. Junction Hotel’s current economic situation has unsettled Chance. He feels that Meg Mortimer’s (General Manager) social approach to managing needs to be addressed as it’s inefficient and unorganized. An alternative
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It can be applied to many industry’s one of which being the fast food industry. Out of all the fast food restaurants, there is one which stands out above the rest and this is McDonalds. Some marketers have even said that McDonalds have used rational organisation so well that they have referred as it to ‘McDonaldization’ [5]. McDonalds have broken down the production of the standard hand burger into minimal tasks. For example the salad would be added to the bun by one person. Another colleague would add the sauce and another would add the cheese and burger. Once this is done another worker would box the burger up and slide it down a tube ready to be eaten by the customer. Even the customer service that is delivered by McDonalds is broken down into tasks. The restaurants have tills which allow the worker to quickly enter a customer meal by a touch of an icon on a touchscreen till. Rationalisation has worked very well for many large organisations in the past. Firms have reaped the benefits of higher efficiency, more control and cutting costs. However it hasn’t always been beneficial for every type of organisation. Rational Organisation has had undesirable effects on the people working for the organisation. The tight, ‘claustrophobic’ like conditions have led to poor health for workers. The repetitive and dehumanising tasks have been claimed to leading to inefficiency in workers. The tedious form of work made workers feel under-used and that