Distinction between Formal and Substantive Rationalities (Essay Sample)

Explain what Weber meant by the distinction between formal rationality and substantive rationality. Using these two concepts, analyze whether Scientific Management and Human Relations Theory are formally rational, substantively rational, both, or neither
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Introduction
Scientific management and human relation are concepts that cannot be overlooked in the management of any organization. Organizations constitute a group of individuals who are naturally different, but underspecified structures work together toward the achievement of set goals and objectives. In other words, organizations are made of a predetermined action coordinated under given structures. Rationality is the aspect of being reasonable or logical. Rationality employs more of conscious reasoning than experience in decision making. Rationality withstands emotions and decisions made as results of being rational are free from emotions (Brubaker, 2013, p.5). Rationality forms the major factor that influences how individuals will behave and react to certain issue in their social environment or work environment.
Rationality, therefore, connects individuals with the organization in the sense that rationality determines the performance of an individual with regard to their rank in the organization structure. This implies that rationality affects the way organization structure is developed and how the various functions of management operate. Equally, the organization structure influences the behavior of individuals in an organization through a set of rules and guidelines (Hatch and Cunliffe, 2013, p.43).
The rules and guidelines describe how individuals should act toward the achievement of specified goals. Marks Weber explained the concept of rationality and categorized rationality into four major classes. However, this paper will explain only two types of nationalities, that is formal rationality and substantive rationality. The paper will further discuss scientific management and human relation theory with regard to the two types of rationality and finally indicate whether each of the management functions apply both formal rationality and substantive rationality, either rationality or none.
Substantive Rationality
This rationality refers to the group of values or actions that individuals might consider important and work toward achieving their consistency in their daily operations. Max Weber considered the substantive rationality to be challenging to use in the modern society because the ability of individuals to pursue certain values is adversely affected by the rationalization (Holton and Turner, 2010, p.32). Individual values are easily eroded by external pressure within the environment of the individuals. For instance, the honesty of an employee in the workplace can be comprised by high economic pressures that demand more money than what the employee legally earns.
Formal Rationality
Formal rationality is a broader aspect of rationality, common in organizations that are characterized by bureaucracy. It results in rules and regulations that guide the behavior of individuals in a given institution or organization and are accepted within their area of jurisdiction either internally or globally. Formal rationality is commonly applied in scientific, economic and legal institutions along with other forms of bureaucratic leadership. Good examples of formal rationality are the systems in the legal and judicial functions (Brubaker, 2013, p.12).
Formal rationality considers bureaucracy as the most dominant organization structure in the evolving society. Weber argued that bureaucratic ideals possessed the following characteristics; presence of rules and regulations, source of command, there is hierarchy and a chain of command, availability of written documents that are formal, presence of trained managers who are experts in specific areas, the managers operate under a set of rules that accommodate learning and also encourage a work environment that ensures full operations capacity of workers (Scott and Davis, 2015 p.23).
Further, formal rationality holds that officials maintain bureaucracies. From Weber’s point of view, officials are employees seeking to develop their career in the bureaucratic principles. The officials are, however, appointed by a higher authority and are given authority to execute their duties and responsibilities. Formal rationality, therefore, perceives organizations as a legal-rational authority system maintained by the officials.
Scientific Management
Scientific management is a classical theory that encompasses the development of different levels of workers aimed at improving the productivity of the employees. Scientific management ensures a clear chain of command where manual workers are overseen by supervisors who reports to the line managers. The line manager report to the middle-level managers and the chain goes up to the directors (Hui and Wuyi, 2010, p.5). Every employee understands and appreciates the role of management in ensuring maximization of productivity and profitability of the organization. The skilled employees are thoroughly screened before recruitment to ensure that efficiency will be achieved under their management.
Similar to formal rationality, scientific management perceives the organization structure as a mean of advancing common objectives. The theory assumes that managers can influence workers rationality through incentives and formal control to raise the level of employee efficiency in the organization (Spender and Kijne, 2012, p.73). In addition, scientific management makes other assumptions regarding the rationality in organizations, but these assumptions highly differ from Weber’s assumptions. For instance, Weber’s view on rationality is both formal and substantive while scientific management view does not regard substantive rationality.
The scientific management focuses on the positive aspect of things where a perfect state free of business is assumed. The theory assumes that various aspects can be calculated and compared to determine efficiency. Scientific management majorly focuses on the formal aspect of the organization and ignores the values emanating from the substantive rationality and its contribution in shaping human rationality. Scientific management just like Weber view uses bureaucratic control as a management tool to increase the organization’s efficiency and effectiveness. The scientific management, however, gives more emphasis on the organizational efficiency than the effectiveness (Whimster and Lash, 2014, p.18).
Goetsch and Davis (2014, p.58) states that managers are tasked with the duty to see that organizational efficiency is achieved through the application of the control mechanism in the labor function. The managers are expected to apply scientific management to enhance organization effectiveness and efficiency by maximizing the power that economic incentives have on employees. In other words, the scientific management theory requires that managers determine and calculate the entire variable that determines the productivity of the organization. Additionally, managers are expected to apply scientific management evaluation processes to select the production processes that maximize the efficiency of the organization.
Scientific management applies formal rationality indirectly, it focuses on the techniques that managers use to influence the formal guidelines that prescribe how employees should behave in a workplace. The managers oversee the control mechanisms in a bid to enhance efficiency. The control systems and motivation influence the rationality of workers. Managers, therefore, become very critical in running organizations and ensuring maximization of productivity through enhanced efficiency.
Human Relations Theory
This management function pertains to the human behavior in the workplace and the necessary efforts to be taken in addressing the informal issues to generate desired results. Human relation function just like scientific management aims at achieving efficiency in the organization (Bratton and Gold, 2012, p.34). However, human relations focus on the influence of informal relationship on the individual behaviors in the workplace as opposed to scientific management and formal rationality. The two focus on the formal aspects that influence the behavior of the employees in an organization. The human relation, focus on the impacts of substantive rationality on the human behavior in the workplace.
Human relation theory perceives the organization as systems that constitute formal and informal structures. Additionally, human relation considers informal structures to be more critical than formal structures in determining the behavior of individuals. According to Storey (2014, p.14) organizations constitute of different working groups that have specific targets, procedures and relationships differ from overall organizational structures.
Managers do not have the ability to define norms, but they arise out of interactions in the working groups. In addition, individual status is not granted formally as described in the concept of formal rationality, it is acquired in an informal way. Individuals in a certain group become acquitted to specific values that regulate their behavior in an organization. Consequently, the behavior of the individuals affects the productivity of the organization. Values inculcated through work groups increase the productivity of the organization (Jiang. et al 2012, p.1272).
Further, human relations integrate the influence that a group has in inculcating values to Individuals. It also considers the role of managers in influencing productivity and setting the organizational culture for the informal groups. The theory argues that people and groups are fundamental in maximizing product...