Is Rationalization a Desirable Strategy for Managing & Organizing Junction Hotel in the Current Economic Climate?

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Is Rationalization a desirable strategy for managing & organizing Junction Hotel in the current economic climate? Junction Hotel is currently facing problems within the business and is struggling to keep its identity of a ‘quality hotel’. The problems have arisen from a mix of poor leadership and co-operation of staff within the business and also the external influences of businesses which has led them to compromise on quality of service for profit. In this essay I will delve into whether or not I think rationalization is a good strategy for Junction Hotel to adopt.

Rational Organization increases efficiency and control and also brings down costs because the tasks are minimized to the core that they require almost no training for staff to carry them out. Another way is they standardize processes such as cooking of the chips and burgers in McDonald’s, they are batched together and have a set time for being cooked before held in a warmer before being served, compared to them being cooked individually and being watched over by a waiter. This model makes the business better as it increases speed of service, efficiency in production & other processes such as cleaning managing, recruiting and also serving. Another example is in Travelodge where they have given the most basic product of a bed and decent shower and cut out the extra thrills like shampoo, hairdryers & slip mats because they have adopted the strategy of ‘value engineering’ Davis (2007) has said that they have used this to trim their costs and improve their quality of service, they have carried out a process which is basically cost versus value so they don’t necessarily provide a lower level of service and provide only what may be necessary, and left the extras for customers for wish to pay a little extra. This strategy increases control because it almost dictates every part of their work life, they have set rules and regulations to follow and they are not allowed to socialize or give opinions on what...
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