Final answer:
Organizational rationalization refers to the increasing reliance on technical-rational decision making for efficiency, particularly with technological advancements in production and cost-benefit analysis. This trend is exemplified by hypothetical company Technotron, and it's echoed in reduced manufacturing costs in industries like music and film. The process is driven by R & D, despite its challenging and unpredictable nature.
Step-by-step explanation:
The process by which an organization increasingly relies on technical-rational decision making in the pursuit of efficiency is captured by Max Weber's theory of rationalization. This encompasses a move towards streamlined logic and efficiency, underpinned by technical advances and cost-benefit analyses. For instance, consider the fictional company Technotron, which develops new technology to produce goods more efficiently. As they leverage this technology, they can enhance their competitiveness by reducing costs and requiring fewer workers, thus exemplifying the rationalization process.
In the context of modern business, rationalization involves using tools like Cost Benefit Analysis to weigh the marginal costs against the marginal benefits of adding an additional unit. With advancements in technology and the shift to an information economy, this approach gains prominence as exemplified by industries like the music and film industries that have transitioned from producing physical CDs and DVDs to digital streaming, reducing manufacturing costs significantly.
Furthermore, the role of Research & Development (R & D) is crucial but presents challenges due to its unpredictable nature and investment risks. Yet, this is a necessary step for technological progression, as seen in the example of the University of Minnesota's long-term investment in developing a new apple variety.