Rationality (first half)

In this chapter, we are going to learn about how people do business in different places, and how rationality plays a role in this. Aristotle’s rhetorical theory, the “enthymeme” involves both “rational” and “intuitive” thinking. Rational plans are schemes that show relatively direct paths to the accomplishment of our goals. Men like Robert Ivie and Max Weber believed that rationality is subjective, and that it is colored by attitudes, preferences, historical trends, and politics. These men argue that employees should be hired and promoted through merit, and that there should be a clear chain of command. Also, organizations should take input from their consumers when planning change. In South America, however, it seen as more reasonable to hire someone they know or are related too because they believe in “palanca;” which is the theory that people need to be interdependent in order to survive.
The four principles of scientific management invented by Frederick Taylor are also very important to the idea of rationality. This theory really brought science into the business world, and ties strongly into efficiency and effectiveness. If there is a standardized system for doing work, businesses would be more efficient. Scientific management is closely linked too Theory X in that work cannot be satisfying and that there must be external rewards for incentive. In contrast, Theory Y states that people can be satisfied through their jobs if they are treated with respect and their work is enjoyable. This theory ties back into Aristotle’s theory of “enthymeme.”
There must be some way to incorporate all these theories together without losing your employees or going bankrupt. Trying to incorporate parts of both sides of the spectrum is where Chester Barnard defined efficiency and effectiveness. Mr. Bernard stated that effectiveness is the extent to which an organization meets its primary objectives which is getting the product manufactured and sold. Efficiency came next and Bernard states that embracing values, goals, and hopes would lead to employee satisfaction and would lead to individual and organizational achievement of goals.
There are many different theories on how to run a business in the best way, and there are many different theories on what is the rational way; what theory do you think is the best business model?

-Anthony Bolz