All Topics  
Rationalization (economics)

 

 
   Email Print
   Bookmark   Link
 

 

Rationalization (economics)
 
 
  Topics Rationalization (economics) Topic Home

In economics
Economics

File:Ballard Farmers' Market - vegetables.jpgEconomics is the Social sciences that studies the Production theory basics, Distribution , and Consumption of Good and Service ....
, rationalization is an attempt to change a pre-existing ad hoc
Ad hoc

Ad hoc is a List of Latin phrases which means "for this [purpose]". It generally signifies a solution designed for a specific problem or task, non-generalisable and which cannot be adapted to other purposes....
 workflow
Workflow

A workflow is a depiction of a sequence of operations, declared as work of a person, work of a simple or complex mechanism, work of a group of persons, work of an organization of staff, or machines....
 into one that is based on a set of published rules. There is a tendency in modern times to quantify experience, knowledge
Knowledge economy

The knowledge economy is a term that refers either to an economy of knowledge focused on the production and management of knowledge in the frame of economy constraints, or to a knowledge-based economy....
, and work. Means-end (goal-oriented) rationality is used to precisely calculate that which is necessary to attain a goal. Its effectiveness varies with the enthusiasm of the workers for the changes being made, the skill with which management applies the rules, and the degree to which the rules fit the job.

Julien Freund defines rationalization as "the organization of life through a division and coordination of activities on the basis of exact study of men's relations with each other, with their tools and their environment, for the purpose of achieving greater efficiency and productivity."

The rationalization process is the practical application of knowledge to achieve a desired end.






Discussion
Ask a question about 'Rationalization (economics)'
Start a new discussion about 'Rationalization (economics)'
Answer questions from other users
Full Discussion Forum



Encyclopedia


In economics
Economics

File:Ballard Farmers' Market - vegetables.jpgEconomics is the Social sciences that studies the Production theory basics, Distribution , and Consumption of Good and Service ....
, rationalization is an attempt to change a pre-existing ad hoc
Ad hoc

Ad hoc is a List of Latin phrases which means "for this [purpose]". It generally signifies a solution designed for a specific problem or task, non-generalisable and which cannot be adapted to other purposes....
 workflow
Workflow

A workflow is a depiction of a sequence of operations, declared as work of a person, work of a simple or complex mechanism, work of a group of persons, work of an organization of staff, or machines....
 into one that is based on a set of published rules. There is a tendency in modern times to quantify experience, knowledge
Knowledge economy

The knowledge economy is a term that refers either to an economy of knowledge focused on the production and management of knowledge in the frame of economy constraints, or to a knowledge-based economy....
, and work. Means-end (goal-oriented) rationality is used to precisely calculate that which is necessary to attain a goal. Its effectiveness varies with the enthusiasm of the workers for the changes being made, the skill with which management applies the rules, and the degree to which the rules fit the job.

Julien Freund defines rationalization as "the organization of life through a division and coordination of activities on the basis of exact study of men's relations with each other, with their tools and their environment, for the purpose of achieving greater efficiency and productivity."

The rationalization process is the practical application of knowledge to achieve a desired end. Its purpose is to bring about efficiency, coordination, and control of the natural
Natural environment

The natural environment, commonly referred to simply as the environment, is a term that encompasses all life and non-living things occurring nature on Earth or some region thereof....
 and social environment
Social environment

The social environment ,also known as the milieu, is the identical or similar social positions and social roles as a whole that influence the individuals of a group....
. It is a product of "scientific specialization and technical differentiation" that seems to be a characteristic of Western culture
Western culture

File:Clash of Civilizations map.pngWestern culture are terms which are used to refer to cultures of European origin. This terminology originated as a way of describing what was different about the Graeco-Roman culture and its descendants, in contrast to the older neighboring civilizations of the Middle East, which in many ways continued...
. Rationalization is the guiding principle behind bureaucracy
Bureaucracy

Bureaucracy is the structure and set of regulations in place to control activity, usually in large organizations and government. As opposed to adhocracy, it is represented by standardized procedure that dictates the execution of most or all processes within the body, formal division of powers, hierarchy, and relationships....
 and the increasing division of labor
Division of labour

Division of labour or specialization is the specialization of cooperative Labour in specific, circumscribed tasks and roles, intended to increase the productivity of labour....
, and has led to an increase in both the production and distribution of goods and services
Goods and services

In economics, economic output is divided into physical good and intangible Service s. Consumption of goods and services is assumed to produce utility....
. It is also associated with secularization
Secularization

Secularization or secularisation generally refers to people of transformation by which a society migrates from close identification with religious institutions to a more separated relationship....
, depersonalization, and oppressive routine.

Increasingly, human behavior is to be guided by observation, experiment, and reason (zweckrational
Instrumental action

Instrumental action is a social action pursued after evaluating its consequences and consideration of the various means to achieve it. They are usually planned and taken after considering costs and consequences....
). Change in human character is expected to be part of the process; rationalization and bureaucratization promote individualism
Individualism

Individualism is the Morality stance, political philosophy, or social outlook that stresses independence and self-reliance. Individualists promote the exercise of one's goals and desires, while opposing most external interference upon one's choices, whether by society, or any other group or institution....
, self-discipline, efficiency, and materialism
Economic materialism

Materialism refers to how a person or group chooses to spend their factors of production, particularly money and time. Literally, a materialist is a person for whom collecting material goods is an important priority....
, all of which are subsumed under Weber
Max Weber

Maximilian Carl Emil Weber was one of the most profoundly influential thinkers of the twentieth century. Born in Germany, Weber became a lawyer, politician, scholar, political economy, and sociology....
's concept of zweckrational.

See also


  • Rationalization (psychology)
    Rationalization (psychology)

    In psychology and logic, rationalization is the process of constructing a logical justification for a belief, decision, action or lack thereof that was originally arrived at through a different mental process....
  • Rationalization (sociology)
    Rationalization (sociology)

    In sociology, rationalization is the process whereby an increasing number of social actions and interactions become based on considerations of efficiency or calculation rather than on motivations derived from custom, tradition, or emotion....
  • Labor (economics)
  • Managerial economics
    Managerial economics

    Managerial economics , is a branch of economics that applies microeconomic analysis to decision methods of businesses or other management units....
  • Max Weber
    Max Weber

    Maximilian Carl Emil Weber was one of the most profoundly influential thinkers of the twentieth century. Born in Germany, Weber became a lawyer, politician, scholar, political economy, and sociology....
  • Scientific management
    Scientific management

    Scientific management is a theory of management that Analysis and Synthesis workflows, improving labour productivity. The core ideas of the theory were developed by Frederick Winslow Taylor in the 1880s and 1890s, and were first published in his monographs, Shop Management and The Principles of Scientific Management ....