Cost-Benefit Analysis: Key to Rational Organizational Design

it is crucial for employees to be satisfied in order to prevent their unhappiness from being evident to customers.

As a employee at a hotel similar to Junction Hotel, I understand the importance of prioritizing customer satisfaction. When employees are unhappy, it can negatively impact the guests' experience, making them feel uneasy. Hence, it is crucial for hotel employees to feel appreciated and valued as individuals rather than mere cogs in a system. This way, they can offer the personal interaction that is vital in the hotel industry.

Taylorism is based on the idea of shaping employees to fit the organizational structure, as described by Morgan. However, the Hawthorne studies, as pointed out by Donkin (2001), demonstrated that a different approach of adjusting the organization to accommodate employees can also lead to success. Seen as a reaction to Taylorism, the Hawthorne studies were driven by Elton Mayo and revealed that workers are motivated when they feel valued and appreciated by the company, rather than being treated as mere parts in a system (Donkin).

Organizations must exercise caution in avoiding favoritism towards specific teams, such as providing them with more favorable conditions compared to others. This can result in resentment among working groups, as seen in the Hawthorne studies (Donkin). Working groups often have certain norms or social behaviors that employees feel obligated to adhere to (Coghlan 1994). Offering preferential treatment to one team within the organization can disrupt the overall workforce culture (Coghlan), leading to unmet social needs of workers and possibly a decrease in efficiency.

This would especially apply in the Junction Hotel. For instance, if certain employees were given additional breaks and they accepted them,

they would be going against the group's norm and might consequently face rejection from the group. Since the relationships between staff members are already strained in some areas of the hotel, it might not be wise to treat certain employees on the same hierarchical level differently from others on the same level.

Establishing groups and teams within an organization can effectively enable managers to exercise control over their workforce. This is because groups tend to develop their own cultures and norms (Coghlan). If management can steer a group towards adopting positive rules and embracing the organization's approach, they will have gained control over that specific group of workers. Additionally, allowing employees to work within their preferred groups helps meet the social needs of the group, potentially leading to increased efficiency.

The suggested strategy could be beneficial for the Junction Hotel since there are already established groups. By enabling them to collaborate, it is possible to achieve improved efficiency. When an organization expands, the hierarchy also expands. Centralizing the "thinking" functions of the business like design and development, while decentralizing implementation, tends to be effective, as long as the service or product can be managed and separated accordingly (Morgan).

According to Morgan, mechanistic structures, commonly adopted by expanding businesses, aim to accomplish predetermined business goals and are typically successful, as long as no innovation is necessary. However, for Junction Hotel, a more effective approach would involve centralizing both thinking and implementation. This is because the business is experiencing stagnation and requires innovation. Consequently, the organization needs to be capable of responding to new ideas and embracing change.

According to Morgan (2006), rational organisations like Taylorism enable managers to exert control

over workers by transferring the responsibility for work organisation from workers to managers. This form of control de-humanises employees and treats them as mere cogs in a machine that is managed by a supervisor. Taylor himself acknowledged this when he stated, "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, cited in Morgan, 2006). By transforming workers into components of the organisational machine, managers deprive them of the ability to engage in such behaviours.

Considering the current state of affairs at Junction Hotel, it would not be wise to make such a decision. It is still unclear who exactly holds managerial roles, and certain workers, like the chef, may resist and feel resentful about becoming just another cog in the machine. Previously, they were heavily involved in running the hotel. Nowadays, in modern organizations like fast food restaurants, customer involvement has been incorporated into the structure to enhance rational organizational efficiency.

For instance, in restaurants, a member of staff takes your order and delivers food to your table. However, in fast food restaurants, customers have to place their own order and pick up their own food from the counter. This makes the entire operation more efficient (Ritzer). By creating a distinct rational organizational structure, a hierarchy is established, ensuring that employees are well-informed about their roles. This would be beneficial for Junction Hotel as their current hierarchy is unclear, resulting in frequent changes in job responsibilities and some employees feeling undermined.

By establishing a clear structure that all employees can

identify with, conflict may be reduced and therefore employees should find it easier to be more efficient in their roles. Rational organisational design has the potential to significantly save costs and increase control for a business, although this approach may negatively impact employee morale and ultimately decrease long-term efficiency. Nevertheless, it does enable employees to clearly define their job responsibilities and understand the expectations placed on them, which can be more advantageous than having ambiguous roles within specific departments.

While certain aspects of rational organisation design, like a more defined hierarchy and better working groups, could help address the confusion and conflict within Junction Hotel's workforce, it may not be entirely suitable. The workforce cannot be treated like parts of a machine, as customer service remains a priority in the tertiary industry. Tertiary industries typically do not thrive under rigid structures.

In summary, during the necessary restructuring at Junction Hotel, it is advisable for management to consider rational organizational design to address efficiency problems. However, it is important not to strictly adhere to it in order to uphold service standards. COGHLAN, D (1994) 'Managing organizational change through groups and teams,' Leadership and Organization Development Journal 15(2): 18-23 DONKIN, R (2001) Blood, Sweat and Tears: The Evolution of Work London: Texere. (Ch. 11 – Western Electric Discovers Motivation).

MORGAN, G (2006) Images of Organization London: Sage. (Ch. 2 – ‘Mechanization Takes Command’)
RITZER, G (2008) The McDonaldisation of Society (5th Edition) London: Sage. (Ch. 3 – Efficiency)
DAVIS, Evan (2007) ‘Value Engineering’, BBC News [Online], Available at: http://www. bbc. co. uk/blogs/thereporters/evandavis/2007/05/value_engineering. html [accessed 6th November 2009]
ANON (2010) ‘Bureaucracy hampers social workers,’ BBC News [Online], 28 July 2010. Available at: http://www. bbc.

co. uk/news/education-10788737 [Accessed 9th December 2010]