Opposition of Rationalization
Rationalization is the process of making something more efficient or logical. In the context of business, rationalization can lead to a number of advantages, such as increased efficiency, improved quality, increased flexibility, reduced costs, and improved decision-making. However, there are also some risks associated with rationalization, including job losses, increased stress, dehumanization, loss of morale, disruption to operations, and resistance to change.
Some people oppose rationalization because it often leads to job losses. This can be a major source of anxiety and uncertainty for workers, who may worry about their future employment prospects. Additionally, rationalization can lead to a dehumanization of the workplace, as workers are increasingly seen as cogs in a machine. This can lead to feelings of alienation and a loss of control over one’s work.
Others oppose rationalization because it can lead to the loss of valuable expertise. As companies lay off experienced workers or transfer them to other departments, they may lose the knowledge and skills that these workers possess. This can make it difficult for companies to maintain their competitive edge. Additionally, rationalization can lead to a loss of innovation, as companies become more focused on efficiency and productivity and less focused on creativity and new ideas. This can make it difficult for companies to keep up with the competition.
Opposition of Rationalization by Producers
Maximum Capital Expenditure
Rationalization aims at maximum mechanisation and scientific methods of production, which needs heavy investment on.the part of the producers; hence they are not very keen on adopting this policy.
Wastage of Old Machinery
By the installation of new machines, the old ones remain of not used and hence wasted. Some critics claim that if the expenditure on modernisation is utilised on establishing new industries, it would be nore profitable.
Lack of Trained Workers
After mechanisation the industry needs trained workers, which may not be easily available. If the trained workers are not available there is constant fear of production being stopped.
Danger to Small Units
The small producers are in constant fear of closing down due to increased competition brought about by rationalization. Mostly the small units find it difficult to face this competition and ultimately close down.
Opposition of Rationalization by Workers
Fear of Unemployment
Under rationalization new machinery is installed which usually has the capacity to replace many workers. Thus, the workers are under constant fear of unemployment.
Importance of Capital over Labour
Due to the mechanisation, the importance of labour reduces, whereas that of capital increases.
Lack of Mobilisation in Labour
Under rationalization, each worker is employed on a specific job and specialises in that one job only. Thus, this mobility reduces his personal skill and in any other job he cannot adjust himself easily.
Bad Effect on the Personality of Workers
By constantly working on the machines the creativity and personality development of the workers comes to a halt. Their work becomes monotonous and suppresses their creative talent.
Opposition of Rationalization by Nation
Wastage of Resources of the Nation
Under rationalization the replacement of new machines in place of the old machines leads to huge wastage of deficient machinery.
Disaster of Small Units
Due to rationalization, the small units find it difficult to stand against the big units. This is because the small units cannot afford the methods of rationalization as it involves heavy investments. Thus, the existence of small units comes under danger.
Bad effect on Art and Originality
Rationalization emphasises on standardization and measurement of output of products.
This ends the creativity and art of the production process.