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  Review Notes on   WO 7:  Technology & Organization in the Workplace
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  -  Syllabus
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  -  Resources
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Outline on WO 7:  Technology & Organization in the Workplace
 
  TECHNOLOGY IN THE WORKPLACE  
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Technology & the Workplace  
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Mode of Production  
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Social Structure  
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Organizational Structure
 
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Organizational Structure Charts  
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The Formal Organization in the Workplace:  The Orgl Structure of Economic Orgs
 
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Technology, Organizatonal Structure, & Technological Determinism  
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The Putting Out System  
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Division of Labor, the Social DOL, & the Mfr. DOL  
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Workplace Control  
  ECONOMIC SOCIOLOGISTS  
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Richard Edwards       Contested Terrain  
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Frederick Taylor:   Scientific Mgt  
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Worker Resistance to Control  
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Burawoy:  Manufacturing Consent  
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HRM:  Human Relations Management  
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Hawthorne Studies  
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Hawthorne Effect & Placebos  
  WORKPLACE MICRO ORGANIZATION  
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Weber:  Bureaurcracy  
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Types of Corporations  
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Who Holds Organizational Power?    Staff & Line Mgt.  
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Organizational Structure Types:  Matrix Orgs  
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Labor Markets  
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Organizational Culture  
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The Dysfunctions of Bureaucracy  
  WORKPLACE MACRO ORGANIZATION  
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Centralization of the Economy:  Market Concentration  
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Key Interest Groups:  Domhoff  
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The Power Elite:  Mills  
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Externalities & Spillovers  
  SOLUTIONS  
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McGregor:   Theories X & Y  
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Participation:  Ouchi:  Theory Z  
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Organizational Democracy  
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Democratic Orgl Structure  

 
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 Outline on  Technology
External
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  Technology includes the  mechanical, industrial or applied sciences & their instruments, including their methods & procedures
 
  Tech includes mechanical, industrial or applied sciences & their instruments  
  Tech includes methods & procedures  
  Tech includes physical apparatus & knowledge used to produce & solve problems  
  Tech includes physical objects, such as computers, activities such as email, & knowledge such as how to email texts & images  
  Tech & organizational structure are two sides of the same coin in that the social relations of production determine the type of, & the utilization of a particular technology in an environment of particular labor mgt relations  
  Tech & the org structure of labor mgt relations in which it is embedded may discussed separately but it must be noted that many theorists disagree on whether technology determines org structure & the social relations of production, or whether the social relations of production determine technology  
  Techl determinism is often misused as a justification for particular social relations of production that are to the advantage of mgt & the disadvantage of Labor   
  See Also:  The Mode of Production & the Forces of Production & the Social Relations of Production  
 
TECHNOLOGY & THE ENVIRONMENT
 
  I = PATE
Humans' Impact on the environment is a function of a Population, their Affluence/wealth, Technology & Environmental values 
 
  Technological  systems are specialized:  info, transportation, manufacturing, agriculture, etc.
 
  The Core Countries technologies uses the most energy: 
The Industrialized world has  25 %  of the population & uses  90 %  of the resources
The US has    world has has   5 %  of the population & uses   25 %  of the resources
China has world has has    25 %  of the population & uses    6 %  of the resources
 
  Core countries use more resources
 
  Core countries pollute less partially because they export toxic industrial processes & waste
 
  The U.S. consumes 42% of the hydrocarbons (oil, gas, oil, coal), 38% of the molybdenum, 21% of the lead, 19% of the copper, & 15% of the zinc produced globally
 
  Technology now changes the global environment through the harvesting of resources, waste in manufacturing, waste in consumption  ( waste includes pollution )
 
  How does the coal commodity chain affect the environment?
 
  Corporations can now move mountains, affecting 10s of square miles all the while using less labor than in the mines of the early 1900s
 
  Today's mines make less water pollution via catching ponds & settling ponds, per ton of coal mined
 
  Burning coal today makes less air pollution per ton of coal because of scrubbers & other technologies
 
  Key natural resources are shaped by technology as is seen in cultivated land vs. natural landscape, energy development as a forest of well heads, mineral mining & strip mines, mountain top removal, deep mines, etc.  
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Natural resources & technology do not guarantee wealth nor does a shortage of them relegate a nation to poverty as seen in the natural wealth of South Africa & Russia, & the lack of natural wealth in Japan & England  
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There are THREE  fundamental types of technology including operations, materials, & knowledge technology  
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a. Operations technology includes the people & machines that produce & the set of rules that governs their operations  
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b.  Materials technology is any thing used in production  
  Materials may be natural or human made & may be new or old, but used in a new way  
  Materials used in one workplace affects others in that they may be subcomponents for another process of production:  e.g. plastic to microchips  
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c.  Knowledge technology is the body of truths, facts, or information accumulated by humanity in the course of time as based in production  
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There are FOUR technology stages including simple tool, craft, mass production, & high technology  
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1.  Simple tool technology includes the use of no tools, i.e. only operations & knowledge tech, to the use of stone & bone, to the use of baskets & other early technologies  
  The division of labor w/ simple tool technology was stratified primarily & only by gender & age  
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2.  Craft technology includes the use of more advanced tools which require greater materials & knowledge to manufacture  
  Craft tech includes clay fired pots, porcelain, bronze, wheels & gears, etc. as well as the tech to produce such tech such as mining of iron, copper & tin to make bronze  
  The division of labor w/ craft technology was stratified primarily by skill & craft as in apprentice, journeyman, & craftsman in masonry or silver smithing  
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3.  Mass production technology includes the utilization of highly specialized tools & services integrated into mechanized production operation  
  With mass production tech, knowledge is advanced via the crafts as well as universities  
  The division of labor w/ mass production technology was stratified primarily by the wage system into workers & mgt., but also by industry  
  4.  High technology is knowledge based tech that today is based in computer & biotech technology  
  High tech allows for the refinement & exact control of mass production & service industries  
  Daniel Bell (1976) argues in the Coming of Post-Industrial Society that new knowledge based technology is transforming the nature of society as knowledge becomes the central resource in society  
  Bell believes that the economy is becoming knowledge intensive rather than capital intensive   
  For Bell, knowledge replaces capital as central resource in society  
  For Bell, in post industrial society, there is a shift from goods production to services production  
  But the services have remained labor intensive & low paying  
  The epitome of the high tech business is Microsoft whose power comes from a pattern of zeros & ones  
  While the core has indeed shifted to high tech & service industries, production has not decreased at all, it has merely shifted to the semi periphery & the periphery  
  With high tech, mass production industry, workers in the late 20th C produce more goods, & a greater variety of goods, than was ever before possible  
  With high tech, mass production industry comes the possibility of shorter hours, increased safety, greater employment security, & material abundance for all of society; yet none of this has come to pass  
  The organization of the economic social structure of society, & society itself have shaped the implementation of technology & the distribution of rewards in such a way that some people are excluded from the benefits of increase productivity  
  There is the widespread misconception that technology dictates the organization of work  
  While tech could bring an end to alienated labor, technology can deskill or increase the skill required, or routinize or provide variety on the job  
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The Diagram of Blauner's Inverted U Curve of Technology & Alienation  shows that some production technologies are more alienating than others  

 
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The Diagram of Blauner's  Inverted U Curve of Technology & Alienation shows that some production technologies are more alienating than others

                     |  Machine                  *         Assembly
                     |  Tending              *        *     Line
                     |                        *                *
                     |                  *                            *
                     |               *                                    *
Level of         | Craft   *                                          *       Continuous
Alienation      |         *                                                  *    Process
                     |     *                                                           *
                     |  *                                                                    *
                     |*________________________________________*_
                      Printing      Textiles         Autos        Chemicals


 
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Outline on the  Mode of Production
Marxist Economics
External
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The mode of production consists of the two components of the forces of production & the relations of production
 
  Each type of economic system, i.e. agricultural, craft, industrial, & post-industrial economies, is constituted by a particular mode of production
 
 
a. The forces of production include people & their ideology & the material factors affecting production such as technology
 
 
See Also:  Technology  
  The forces of production consist of FIVE components including cooperation of producers, instruments, technology, ideology, & the natural habitat:
 
 
i.  The social cooperation of the producers structures how workers either work together, compete etc. as seen in small business, assembly lines, independent contracting, temp work, etc. 
 
 
ii.  The instruments of production such as tools, machines & physical technology
 
 
iii.  Technology includes the operations, materials & knowledge based technology as well as the general education & skill level of the workforce
 
  iv.  The ideology of each class; i.e. there worldview, culture etc. including their work ethic, views on mobility, views on the legitimacy of the merit system, etc.  
 
v.  The natural habitat including natural resources, access to trade routes, isolation or centrality, etc.
 
 
b.  The relations of production consist of THREE components including property relations, class structure, & the social cooperation among producers
 
 
i.  Property relations structure the ownership of society's productive resources (property relations) including such legal forms as the sole proprietorship, the trust, the corporation, the partnership, the cooperative, etc. 
 
 
ii.  Class structure structures who controls a society's productive resources such as when 90% of stocks & bonds are owned by 5% of the population
 
 
The class structure structures ownership & control of society's wealth & income
 
 
iii.  The social cooperation among producers structures the type of econ system relations such as competition, monopoly, oligopoly, globalization, etc. 
 
  The social cooperation of producers includes the formal & group structures prevalent in society, the available orgl structures, the available inter orgl relations, & orgl relations w/in society  
  A contemporary view holds that the social relations of production include material & non material means of production & production techniques used to produce goods & services  
  The relations of production structure ownership & control of the means of production, i.e. control of the "shop floor"  
 
Marx was aware of both internal relations such as the forces & relations of production & external or miscellaneous factors in production relations such as war, trade, immigration, climate, geography, physical conditions, social change, etc.
 
  One of humanities earliest occupations was warrior  
  Today many conflict theorists, such as C. Wright Mills, believe that war has become a primary determinant via the military industrial complex
 
  For Marx, in war, people are conquered along w/ land & human accessories (homes and tools), & so arises slavery & serfdom  
  Marx discovered that change in the mode of production contributes to new social formations  
 
Social change in the economy is usually experienced as a change of the mode of production, which is constant & inevitable, but there are also random historical events such as changes in style, war, market fluctuations, etc.
 
 
Change in the mode of production, i.e. in the forces and / or the relations of production are necessary but not sufficient conditions for emergence of certain, new social formations
 
  Thus, Daniel Bell is utilizing Marxist theory when he asserts that the industrial sector is developing new forces & relations of production that are transforming society into a post industrial society that impacts the economic & other social structures of society  
  Marx discovered that the mode of production determines the character of the people, & ultimately historical conditions, & economic systems  
 
For Marx, it is not our ideas that shape the world, but our relationships with each other that shape our ideas, & thus again, 'we are what we do'
 

 
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  Outline on  Social Structure
External
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  -  Video:  Society, Culture, & Social Structure        2:25
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  -  What is society?  Society is made up of social structure & culture  
  Summary of social structure: 
A.  Social grps or orgs
B.  Positions
      1)  Role 
           a. Role set
           b. Role strain
           c. Role conflict
      2.  Bases of a position
           a. Class
           b. Status
           i. Ascribed status
           ii. Achieved status
           iii. Master status
           c. Power
C.  Regular relationships
      1)  Division of labor
      2)  Stratification
D.  Constant share of resources
E.  Historical development
 
  Social structure is the organization of society, including institutions, social positions, the relationships among social positions, the groups or orgs that make up society, & the distribution of scarce resources w/in the society  
 
Social structure is the organization of society, including
- groups of organizations that
- perform basic functions of society
- support society's culture
- accepted as an essential element in society, that is, are taken for granted 
 
  Social structure is the relatively stable patterns of social behavior  
  In the sense that structure is not visible, it is a reified, abstract concept  
 
 List of Social Structures  (  PF REG M CEML  )
1.  Peers
2.  Family
3.  Religion
4.  Econ / work
5.  Govt
6.  Military
7.  Charity
8.  Education
9.  Media
10.  Leisure / Recreation
 
 
Social structures have FIVE components or qualities including being composed of groups, in particular positions, w/ regular relationships to each other, a constant share of resources, & a particular historical development
 
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A. The first component of a social structure is that is is made up of social groups or organizations
-  two or more people 
-  who share a common purpose
-  have a structure of roles & statutes
 
  Each of the social structures, PF REG M CEML, is composed of orgs, & orgs w/in each of the social structures has similar structures that are unique to that social structure  
  Families have structures made up of the relations btwn different members of the family held together by various familial bonds  
  While different families have some different features of their structures, all families have some structural features in common including parents, guardians, leaders; & children, young adults, dependents; extended members, aunts, uncles, etc. who live together by the bond of procreation or some other intimate bond  
  Economic orgs, i.e. businesses have structures made up of the relations btwn different members of the business held together by various economic bonds  
  While businesses have some different features of their structures, all businesses have some structural features in common including owners, mgrs, partners; & workers, employees who are together by the bond of creation, labor, employment  
  See Also:  Economic Orgs Structure  
  More of the TEN social structures are examined below  
blank B. The second component of a social structure is that  it is made up of persistent positions are roles, classes, status's, & power which persist over history   
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1)  A role is any position in a social structure or the expected behavior in a social position  
  a.  A role set is a collection of related roles attached to one social position or status;  sets of expected behavior  
  b.  Role conflict is conflicting or opposing expectations or behaviors among various roles  
  c.  Role strain is conflicting or opposing expectations or behaviors w/in same role  
  2)  The three bases of position are class, status, & power  
   There is disagreement about which interpretation of position is most important   
  a.  Class is an actor's position ( upper, middle, lower ) in relationship to the economy / their income  
  Listings of classes typically include the upper, middle, & lower classes, but also may be stratified into finer distinctions  
  The most common system of classes today includes the upper, upper middle middle, working, & lower classes  
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b.  Status is an actor's level of prestige or honor  
  There are THREE types of status:  ascribed, achieved, & master  
 
i.  Ascribed status is the status an actor is born into  
  A person generally receives ascribed status through birth, including race, sex, family of origin, etc.  
  ii.  Achieved status is the status an actor earns or creates; i.e. achieved status is at least partially a result of something that the actor does   
  iii.  Master status is an actor's most important status; i.e. the status that is most central & important in an actor's life  
  An actor may be able to choose their achieved status, but ascribed & master status' are attributed by society through social structures  
  Marx said, 'A person may make history, but they make history under conditions not of their own choosing.'  
  For most people in modern industrial countries, their master status is their occupation  
 
c.  Power is the authority or the ability to get people to act  
 
C.  The third component of a social structure is that there are constant or regular relationships among groups & social structures:   
  TWO common types of regular relationships in social structures include a division of labor & stratification  
  1)  The division of labor is the constant allocation of type of labor; a system of specialization  
  2)   Stratification  is the constant allocation of resources; a system of inequality  
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D.  The fourth component of a social structure is that each social structures, historically, receives a  constant share of resources
Which are the 3 richest social structures?
Which are the 3 poorest social structures?
 
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E.  The fifth component of a social structure is that social structures each have a unique historical development  
  See Also:  The Organizations that Compose the Social Structures  
  See Also:  Organizational Structure  
  Examples of the social structures        ( PF REG M CEML )  
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1.  Peers  
      a.  Groups:  
      b.  Positions  
      c.  Relationships  
      d.  Resources  
      e.  Historical development  
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2.  Family  
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3.  Religion  
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4.  Economy / work  
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5.  Government  
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6.  Military  
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7.  Charity  
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8.  Education  
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9.  Media  
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10.  Leisure / Recreation  

 
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A.  Social Groups:
    In the case of social institutions, MANY people are required
Example: Students are a group in the social structure of education
      Blue collar workers, mgrs., up mgt., stock holders, etc.  in the the social structure of education

 
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1)  Role      EXAMPLES
a.  Role Set:      student,  mother/father,  teacher
b.  Role Conflict:    sales & family life
c.  Role Strain:  sales job conflict among management, customers, co-workers

 
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b. Social Position based on Status
Status:  ( level of prestige/honor ):  any position in SS:  see table in book 
i.  Ascribed Status:  gender, race, religion, family, looks, size, 
ii. Achieved Status:  earn, at least partially as result of own action: most imp:  occupation, education, income, Motherhood
iii. Master Status:  Had been different for men & women:  occupation & Motherhood, looks

 
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D.  Relatively historically constant % of resources is allocated to each social structure
Which are the 3 richest SS's?
Which are the 3 poorest SS's?

Richest                                     Poorest
Econ / work                              Family
Military                                    Peers
Govt                                         Education


 
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E. Each Social Structure has a unique historical development
The SS List presents each SS in its approximately order of historical emergence
1. Peers
2. Family
3. Religion
    Are believed to be prehistorical, the emergence of which made civilization itself possible

4.  Work / econ
5.  Government
6.  Military
7.  Charity
    Are believed to emerge when the 1st glimmers of civilization began

8.  Education
9.  Media
    Emerged early in history, but were only for the elites until the modern era when they became widely available

10.  Leisure / recreation
       Is a product of the late stages industrial revolution


 
Top   See Also:  The Organizations that Compose Social Structures  
1.  Peers            SS Examples 
Often combined/formed around recreation / leisure
Groups:  (Orgs):   Most peer groups today are informal orgs:
    friends or any group primarily composed of friends:
    frats, sororities, bowling club, bridge club; cliques:
    Jocks, brains, grunges, preps, skanks, gangs use specific
    names, e.g. the CMT, etc.
Positions:  various functional leaders:  most friendship groups  have some informal leader; also:  clown, goat, etc.
Relationships:  division of labor based on position; may divide labor depending on task at hand
Allocation of Resources:  random strat w/in groups;       but preps more likely to be UC; jocks less likely, etc.
History:  It is believed that prior to our development into homo sapiens, that we developed close relationships
It may be this social tie that distinguishes us from other primates, though many other primates do have peer relations
So how are ours different?
Coop to hunt
Breeding males stay in same tribe

 
Top   See Also:  The Organizations that Compose Social Structures  
2.  Family       SS Examples
Groups: (Orgs): Most family groups today are informal orgs:  Smiths, Jones, etc.
Traditional, Non-traditional family, Single Mom, Single Dad, Step, Extended...
The family is legally recognized
Positions are legally recognized
Positions:  Mom, Dad, kids, Head of Household, Step-, Grandma, ....
Relationships:  Mom to daughter, Dad to daughter, Mom to Dad,   Step Dad to Step Kid, 
Traditional family to Traditional family; Single Mom family to Extended family ....
Allocation of Resources:  society is structured so that Non-traditional family (working Mom & Dad) receives most 
    resources;   the least?
History:  The History of family is very complex
H-G society:  matrilineal, serial monogamy
Ancient:  Serial monogamy & polygamy
Industrial:  Monogamy
Today:  Monogamy & serial monogamy

 
Top   See Also:  The Organizations that Compose Social Structures  
3.  Religion          SS Examples
Groups:  (Orgs):  Most religious groups today are formal organizations
Positions:  Religious leader:  priest, cleric, rabbi, monk etc.         Religious follower: 
Relationships:  varied depending on religion:  e.g. Catholic is more hierarchical; 
Allocation of Resources:  religion estb wealth over time & based on conversions:  older religions more wealthy
History:  Paganism, Polytheism, Monotheism, Secularism

 
Top   See Also:  The Organizations that Compose Social Structures  
4.  Work  (the Economy)      SS Examples
Groups:  (Orgs):  Most econ groups today are formal orgs:  businesses (corporations, partnerships, entrepreneur)
      unions, professional orgs, worker associations; 
     most workers belong only to informal peer/ class groups 
Positions:    Owner, mgr., admin, worker, tech, etc.
Relationships:  most very authoritarian/ hierarchical:
    higher position gives orders to lower position;
    obedience required w/in workplace bounds
Allocation of Resources:  Great strat:  owners, mgrs. etc.
    control wealth of society
History: 
H-G society:  Work not recognized as separate activity
Only worked to survive; no wk, no survival
Ancient:  Separate process of wk recognized
   because ruling class emerges, who do not wk
Industrialized society:  Amount of wk in society increases, becomes rationalized
Wk is removed from the home

 
Top   See Also:  The Organizations that Compose Social Structures  
5.  Govt      SS Examples
Groups:  (Orgs):  Most govt groups today are formal orgs 
Positions:  Elected officials, bur, citizens, non citizens
Relationships:  wide range of variation:  democracy to totalitarian
Allocation of Resources:  US govt controls 1/4 to 1/2 GDP
History: 
H-G society:  Govt & peers (tribe) & religion & family all intertwined
Ruled by consent & status
Ancient:  Govt & religion & family still intertwined, but becomes more  removed from the governed
Ruled by violence & authoritarianism
Industrial:  Some vestiges of democracy develop

 
Top   See Also:  The Organizations that Compose Social Structures  
6.  Military      SS Examples
Groups:  (Orgs):  Most mil groups today are formal orgs
Positions:  leaders, soldiers
Relationships:  same hierarchy as econ (econ based on mil model) except that obedience is total
Allocation of Resources:  Lower strat than in econ
History: 
H-G society:  Hunters were also warriors
Little war except to steal wives 
Ancient:  Soldiering becomes an occupation
Div of labor separates out separate class of warriors
Becomes linked w/ govt
Industrial:  Separate of mil from govt

 
Top   See Also:  The Organizations that Compose Social Structures  
7.  Charity     SS Examples
Groups:  (Orgs):  Most char groups that raise large amounts of $$ today are formal orgs, but many informal groups
    also exist:  Want to contribute to the JJ Kelly Cross Country Team Travel Fund? 
Positions:   formal orgs have typical. mgr/wkr pos;  volunteers
Relationships:   formal orgs have typical. mgr/wkr relations; 
    volunteers maintain relations based on commitment to goals
Allocation of Resources:  formal orgs raise billions;    small orgs raise small amounts for local groups
History: 
H-G society:  if you worked, you shared & received all goods
Ancient:  religion dictates alms for the poor
Industrial:  Charity is business; separated from religion; taken on by govt

 
Top   See Also:  The Organizations that Compose Social Structures  
8.  Education       SS Examples
Groups:  (Orgs):  Most ed groups today are formal  orgs:   Elementary, middle, high, Community College, College, Grad
Positions:  teachers & students
Relationships:  similar to econ:  voluntary after hi school
Allocation of Resources:  Teachers more than students;    less $$ than govt, wk, mil
History: 
H-G society:  Learn from tribal peers:  man to man; woman to woman
Ancient:  Formal ed develops for elites
Industrial:  Formal ed expands to other classes in the 1800's

 
Top   See Also:  The Organizations that Compose Social Structures  
9.  Media      SS Examples
Groups:  (Orgs):  Most media groups today are formal orgs
Positions:  Mgrs., admin, reporters
Relationships:  similar to econ model
Allocation of Resources:  typical
History: 
H-G society:  gossip
Ancient:  Elites receive news orally by messenger
Writing develops; elites receive some written communication
Industrial:  Use of printing press expands;  Communication avail to all classes

 
Top   See Also:  The Organizations that Compose Social Structures  
See Also:  The Social Structure of Rec & Leisure  
10.  Recreation / Leisure         SS Examples
Groups:  (Orgs):  Most recreation groups (friends, bridge clubs, etc.)
   today are informal orgs that purchase recreation services from  formal orgs
Positions:  same as friends in informal orgs; same as econ in formal orgs
Relationships:  same as friends & econ
Allocation of Resources:  more $$ spent every day on recreation
History: 
H-G society:  as w/ work, separate spheres of wk & leisure not recognized
Ancient:  leisure seen as time of rest & societal rituals
Industrial:  Leisure develops as industry; people seek fulfillment through leisure

 
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 Outline on an  Overview of Organizational Structure
External
Links
  -  Project:  Draw an Org Structure
Link
  -  Project:  Your Org's Structural Qualities
Link
  It is important not to confuse Social Structure w/ Orgl Structure  
  Social structure is the organization of society, including institutions, social positions, the relationships among social positions, the groups or orgs that make up society, & the distribution of scarce resources w/in the society  
  See Also:  Social Structures
Link
  Social structures are all composed of groups or organizations  
  Each of the social structures, PF REG M CEML, is composed of orgs, & orgs w/in each of the social structures has similar structures that are unique to that social structure  
  Economic orgs, i.e. businesses have structures made up of the relations btwn different members of the business held together by various economic bonds  
  While different economic orgs, i.e. businesses, have some different features of their structures, all businesses have some structural features in common including owners, mgrs, partners; & workers, employees who are together by the bond of creation, labor, employment  
  Org structure is the formal reporting relationships, groupings, & systems of an org
 
  Org structure is the distributions, along various lines, of people among social positions that influence the role relations among these people (Blau, 1974, p. 12 )  
 
Org structure is the established pattern of relationships among the various parts of an org & among the various workers in the org
 
  Most orgs in the core nations are organized as bureaucracies, in the shape of a pyramid, w/ authoritarian lines of command & control, w/ minimal imput from wkrs  
 
Org structure is not visible in the same sense as the structure of a material object such as a bridge, but its consequences are just as real
 
 
Social structure is related to orgl structure, but is a more general concept used to describe such diverse phenomena as the family & the govt
 
  Org & social structures specify patterns of obligations & responsibilities that the incumbents of different roles have in relation to one another  
  Orgl structural relationships influence the sympathies, affections, & animosities that different members of the group are likely to experience toward one another  
  Specific orgs, such as govt agencies, economic orgs, religious orgs, political parties, etc., have different aims, but they share in common identifiable, unique structures for the attainment of their goals  
  Some of the traits of all org structures are discussed below, while the traits of economic orgs, i.e. businesses are discussed elsewhere  
  See Also:  See Also:  The Organizations that Compose the Social Structures  
  See Also:  Economic Org's Structure  
  A major factor in any orgl structure is the division of labor which is the specialized positions in an org structure  
  When there is a division of labor, people are given different tasks or jobs w/in orgs  
  Hierarchy is the authority inherent in an org structure which is specified via a top down chain of command  
  Hierarchy is the positions that people fill that have rules & regs that specify how people are to act in their orgl positions  
  Ranson, Hinings & Greenwood (1980) see orgl structure as "a complex medium of control which is continually produced & recreated in interaction & yet shapes that interaction:  structures are constituted & constitutive"   
  Fombrun (1986) sees orgl structure as the juxtaposition of techl solutions, pol exchanges, & soc interpretation in & around orgs resulting in modes of structuring  
  For Fombrun there is a dialectical unfolding of relations among orgl actors that has consequences for orgl form  
  For Fombrun structure is thus continually emergent & yet retains properties of social relations from the past  
  Review:  Each of the types of orgs generally has a form of orgl structure that is unique to it including functional, vertical & matrix orgl structures  
  In analyzing orgl structure, common factors are looked at across org type  
  Orgl structure is one component of the org's internal env which determines how activities are conducted  
  Orgl structure determines how authority & communications flow from management to workers
 
  The trend in orgl structure is toward "flatter," decentralized orgs w/ close communications btwn internal & external participants
 
  There are THREE factors that affect orgl structure, including the:
 
  a.  tasks performed by an org
 
 
b.  manner in which management desires to perform the task ( i.e., mgt. strategy )
 
 
c.  external factors such as customers, competitors, govt, etc.
 
 
The components of orgl structure execute basic tasks/functions, such as design, production, marketing, finance, HRM, etc.  
 
In general, the corporation today is organized into TWELVE Departments, but there may be more or less.  They are listed in approximate order of historical appearance  
 
Mintzberg developed a model w/ FIVE Components in the Org Structure  
 
Mintzberg developed an Org Typology based on his model of Org Structure  
 
Hall developed a model w/ FOUR Qualities of the Org Structure each of these is a variable that has high, medium, & low levels
 
 
a.  Complexity  
 
b.  Formalization  
 
c.  Centralization  
 
d.  Communications  

 
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 Outline on Organizational Structure Charts
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  The empty orgl chart below is a generic model that represents the typical hierarchical bureaucracy in many Western nations today
 
  The top tiers represent upper mgt, then middle mgt below them, & the smallest boxes on the bottom represent the wkrs or wkrs' units  
 
 
  The pyramidal orgl chart below focuses only an administration & therefore primarily covers upper & middle mgt, w/ no actual wkrs begin represented
 
 
 
  The industrial orgl chart below represent a functional org chart in that four major functions are represented:  R & D, mkting, the factory, & admin
 
 
 
  The Japanese industrial firm's organizational chart represents a functional design by focusing on sales, engineering, purchasing, mfr, quality control, & mgt
 
  Note that the Japanese firm puts mgt on par w/ other orgl structures while Western orgs typically place mgt above the rest of the org in the hierarchy  
 
 

 
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 Outline on the  Orgl Structure of Economic Orgs
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  The structure of econ orgs consists of formal relationships, differentiation, integration, authority structure, & admin structure (French, Kast, & Rosenzweig, 1985)
 
  a.  A part of the structure of econ orgs is the pattern of formal relationships & duties which includes the org'l chart, job descriptions, formal & informal lines of communication, the division of labor, etc.
 
  b.  A part of the structure of econ orgs is how the various activities or tasks are assigned to different depts. & people in the org establishing a division of labor, a hierarchy, stratification of resources, the differentiation of roles & positions, etc.
 
  c.  A part of the structure of econ orgs is how the separate activities or tasks are coordinated & integrated
 
  d.  A part of the structure of econ orgs is the power, status, & hierarchical relationships w/in the org which establish the authority structure
 
  e.  A part of the structure of econ orgs is the planned & formalized policies, procedures, & controls that guide the activities & relationships of people in the org establishing the administrative structure
 
  The most important variations in org structure include role specialization, standardization, centralization, autonomy of the org, ratio of supervisors to workers (Zey-Ferrell, 1979)
 
  1.  Role specialization is the extent to which roles in the org are defined in terms of a narrow range of activities as opposed to a broad agenda of responsibilities
 
  2.  Standardization is the extent to which procedures follow specific rules as opposed to being developed on an ad hoc basis for each situation
 
  3.  Centralization is the extent to which decision make is performed by key decisions made by one or a few persons at the top of the org or dispersed throughout the org
 
  4.  Autonomy is the extent to which the org & org actors are free to to make its own decisions & establish its own agenda as opposed to reporting to someone higher up in the hierarchy, whether that person be in the org or in a parent org
 
  5.  The ratio of supervisors to workers is the extent which the org is top-heavy w/ mgrs. as opposed to having the majority of its members involved in the production of goods & services
 
  The pattern of technology utilization & the org structure interact in that the division of labor is determined by the interaction of technology & the org structure
 
  The mutual interaction of technology & org structure is seen in the fact that workers are assigned tasks based on technology & their skills, & their ranking in the hierarchy of the org structure, which is patterned via the roles & skills of the workers
 

 
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 Outline on   Technology, Orgl Structure, & Technological Determinism
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Since the beginning of org theory, social scientists have asked whether org structure, social structure, society, & even humanity itself is determined by technology, or some other factor
 
  Other factors that are considered to be deterministic include human nature, economics, particular drives such as sex or greed, psychological determinism, genetic / the drive to leave minions, religion, ideology, culture, & so on  
  Many historians & social scientists have seen tech as a major determining factor throughout the histl ages  
  However, the question for scholars of determinism is whether the social relations of production of particular age were determined by the technology or whether they could have been different because they were caused by particular property relations, class structure, or the social cooperation among producers  
  Marx analyzed FOUR types of determinism, including economic social relations, cultural / ideological relations, property relations, & technological determinism  
  A & B.  Marx's determinism holds that economics relations (base) determine culture (superstructure), ideology, etc.
 
  C.  Some social theorists focus on modes of ownership, i.e. property relations as being determinant in society
 
  See Also:  Economic vs. Cultural Determination for a discussion of the determinism of the base, the superstructure, & property relations  
  D.  Another type of determinism that Marx examines is technological determinism which holds that society, relations of production, culture, etc. are shaped by the current technology
 
  How might one make the techl determinist argument in light of the internet or some other modern technology? 
 
  Marx does not give causal priority to instruments of production (technology), but the the relationships that exist w/ a particular set of technology
 
  Marx said, "The hand mill gives you a society with the feudal lord; the steam mill, a society w/ the industrial capitalist."
 
  As w/ economic determinism, Marx seems to go back & forth
 
  For Marx, there is an interaction of all these elements in the economic base, i.e. the forces of production, the relations of production, the instruments of production, the historical conditions, etc.  
 
Thus Marx & Engels are also social evolutionists while the final determinant is the economy, but this is not simple economic determinism  
  Engels wrote to Block, that there is an interaction of all these elements: the forces, relations, & instruments of production, hist conditions, the superstructure & the economic base, & more  
  While the final determiner of social relations is the economy, but Marx & Engels are also social evolutionists  
  The level of development of the forces of production at the pure techl level is a necessary but not sufficient condition for the emergence of certain social formations  
  For Marx, as the instruments of production (technology) vary, so does div of labor, but not necessarily the nature of the society as a whole, or even its class structure  
  But we must look at each tech & stage of development to see its effect on the mode of prod  
  For Marx, the level of development of forces of production is a necessary but not sufficient condition for emergence of certain social formations  
  Contemporary social scientists have built on & modified Marx's view that social relationships are a primary determinant of society, social life, economic structure, orgl structure, etc.  
  Hodson & Sullivan hold that coal powered electrical generation plants must be a certain size to be economical; however, they fail to analyze whether the ownership structure & social relations of production (orgl structure) are fixed or not  
  Marx might concede that the size of a coal plant is relatively fixed, though many envl scientists might disagree  
  Marx would hold that ownership structure & social relations of production (orgl structure) in modern businesses w/ its control by elites for the benefit of elites is not is not deterministically explained & therefore the organization of industry could just as well be controlled by the middle class  
  Contemporary social scientists acknowledge that in particular histl circumstances, there are some factors that are more definitive than others; for example, some technologies today are used more efficiently in particular sizes of orgs  
  Blau, et al., (1976) found that the minimum size required for the effective use of most technologies is quite modest, & is well under that of today's large corps.  
  The reason that key parts of the economy are dominated by large firms is that these firms have the power to do so & not that there is any kind of technological determination that large corps must utilize centralized technologies  
  Since the beginning of the info, high tech age, orgs have found that tech can also be used to reduce centralization & the size of orgs, leaving large bureaucracies at a disadvantage  
  Diverse org forms of many varying sizes are competing effectively in world mkts challenging the large, bureaucratic org structure that predominated since the early 1900s  
  In sum, technology is one factor among many which has a deterministic impact on society; however, social relationships themselves appear to be more influential  

 
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 Outline on the  Putting Out System
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  The putting out system, (POS) which developed during the Early Industrial Age, was the earliest form of wage labor & was the proto factory system  
  See Also:  The Early Industrial Age  
  In the POS, workers get paid on how many items they put-out on their stoop to be picked up & carried to the next stage in the production process  
  The competition of the POS, i.e. the early factory system, was very hard on artisans
 
  Guilds resisted the POS & the destruction of the craft system
 
  The precursor to the POS was craft / guild  production which was the primary form of production outside of agriculture
 
  Craft / guild production predominated during all previous historical eras including:
- Pre Empire Civilization
- The Early Empires Era
- The Roman Era
- The Middle Ages
 
  That is, craft / guild  production predominated from circa 10 K BC until the 1300s until is was displaced by the POS which eventually evolved into industrial, factory production  
  The POS developed in the Era of Mercantile Capitalism
 
  During the Era of Mercantile Capitalism, the goal of national economic policy was to enrich the govt treasury
 
  The elites realized that they did not need colonies or silver & gold mines, rather they could benefit the most from the export of goods & thus a favorable balance of trade
 
  A favorable balance of trade occurs when a nation has more exports than imports
 
  The POS is aka cottage industry or sweatshops, which developed into mini- proto factories
 
  The POS increased control by merchant class, who were the new, powerful class who developed out of the collapsing social relationships of feudalism
 
  The merchant would "put out" the raw materials to be worked on by the laborers & would later the workers would put out the finished product to be collected & sold by the merchant
 
  Workplace structure in the POS was organized by the merchants around simple tasks of the production process that non guild workers could perform
 
 
The POS allowed merchants to control craft knowledge, production, marketing, & price & took that power away from the craftsman
 
 
The POS increased the division of labor
 
  See Also:  The Division of Labor  
  Craft production had a limited division of labor where apprentices & journeymen did the menial work, & learned more complex tasks as their skill level increased  
  But w/ the POS, all tasks are simplified & divided creating the disadvantage that workers lose conception of the whole task  
  An example of the development of the POS can be seen in the development of the textiles industry 1600s & the 1700s   
  In the development of the POS in the textile industry, merchants avoided the control of the guilds over the early stages of the production process by bringing the raw material (e.g. wool, cotton, etc.) to rural cottages & having unskilled country people weave it
 
  In the development of the POS in the textile industry, the merchants escaped the control of the guilds over the assembly process by having cloth woven in the countryside  
  In the development of the POS in the textile industry, the merchants avoided the control that the guilds had over the market & sales process by picking up the finished products that the workers had put out, & took the products to market  
  To escape the control of the guilds, the merchants moved production from the urban areas to the country  
  The hiring of non guild workers by the merchants allowed them to set wages & prices at a level outside of the guild structure
 
 
In the POS, the workers had a high level of independence & set their own pace, when compared to workers today  
  In the POS, the workers set their own pace because they worked on a piece rate  
  In the POS, the workers sometimes they hired help & had apprentices much the way contractors hire subcontractors today  
  In the POS, the workers often accepted work from several merchants at the same time  
  Compared to the craftwork system, the POS increased worker alienation  
  See Also:  Alienation  
  Under the craftwork system, the craftsmen closely guarded their trade secrets, & controlled the level of output because they understood that their knowledge was their only power & that overproduction would reduce their profitability  
  In the POS, the workers are deskilled, lose authority & power, & have lower wages that craftworkers  
  Braverman & Stone argue that under the POS merchants organized the workplace in order to deskilling the workers so that they, the merchants, could control the workplace  
  See Also:  Braverman  
  The merchants brought many non guild workers into production  
  Apprentices & journeymen who could not find work because of the encroachment of merchants into the craft market became unemployed & some of them betrayed their guild by giving trade secrets to the merchants  
  Peasants, immigrants, widows, young women, wives & other unskilled workers were trained in one small area of the production process & became the non guild, non crafts workers  
  No workers in the POS had enough knowledge to go into business for themselves  
  Workers in the POS became subcontractors & wage laborers who were paid a piece rate  
  It is believed that the workers in the POS experienced the earliest form of wage labor   
  Workers in the POS, got paid on how many items they put out & this competition was very hard on artisans   
  Merchants financed the POS process, i.e. paid for tools, raw material, transportation, & market risk  
  Some merchants owned the spinning & weaving equipment  
  The POS undercut the price of guild production, hurting the guilds & creating incentives for merchants  
  The POS presented problems for the merchant such as the difficulty in regulating standards of workmanship & the difficulty in maintaining schedules  
  Another problem for the merchants in the POS was that the workers might sell raw materials for their own profit  
  During the Early Industrial Age, during the development of the POS, there were periodic shortages of workers so merchants increasingly turned to machinery for greater production   
  As the POS evolved into the the early industrial factory system, the merchants began developed the centralized factory system where the workers left their homes & went to the factory to work for central control over workers
 
  The early industrial factory system allowed for centralization of the work process & the increased control over the workers
 
  The POS is still the most typical, i.e. numerous industrial system today, but the factory system produces more goods  
  Today, the POS is located in mostly peripheral nations, though the development of the work at home movement is gaining popularity workers & businesses, & has great similarities to the POS  
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The Table on a Comparison of the Craftwork & Guild System & the Cottage Industry & the Putting Out System shows that control of production & profits shifted from workers, i.e. craftsmen, journeymen, apprentices, & the guild to merchants  

 
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Table on a Comparison of the Craftwork & Guild System & the Cottage Industry & the Putting Out System
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The Craftwork & Guild System
The Cottage Industry & Putting Out System
 
 
Craftsmen buy raw materials & hire workers, including apprentices & journeymen The merchants buy raw materials & contract workers
 
 
Craftsmen, journeymen, apprentices, etc. owned their own tools Merchants owned the tools & the POS workers owned no tools
 
 
Craftsmen determined the process of the work & possessed knowledge & trade secrets which they taught to journeymen & apprentices Merchants determined the process of the work & possessed knowledge & trade secrets & doled these out in small parcels to an atomized workforce which could not put them together in any meaningful way
 
 
Craftsmen controlled the division of labor Merchants controlled the division of labor
 
 
Craftsmen set the pace of the work & the amount of output Merchants roughly set the pace of the work in that the workers were paid by the piece; therefore, the workers did have a greater amount of control over the pace of work than do factory workers
 
  Craftsmen set their own hours By paying by the piece, merchants did not directly control the workers' hours.  The contracting of a particular output to be produced in a particular amount of time did determine hours in the long run  
 
Craftsmen determined the quality of the products Merchants had to implement an inspection system to determine the quality of the work, & the utilization of the piece rate system was effective in this regard
 
 
Craftsmen sold the product & reaped the profits which they shared w/ journeymen, apprentices & the guild Merchants sold the product & reaped the profits out of which their only obligation was wages, material, & other expenses
 
 The Table on a Comparison of the Craftwork & Guild System & the Cottage Industry & the Putting Out System shows that control of production & profits shifted from workers, i.e. craftsmen, journeymen, apprentices, & the guild to merchants

 
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 Outline on the  Division of Labor  ( DOL ) 
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  -  Project:  The Division of Labor, Solidarity, & Social Problems 
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The division of labor (DOL) is highly specialized economic activity
 
  The DOL is workplace relationship where different workers carry out different steps in producing a product  
 
The DOL is a characteristic of most societies in which different individual or groups specialize in different tasks
 
 
The DOL is the specialization of work tasks, by means of which different occupations are combined w/in a production system
 
  DOL = SPECIALIZATION = EFFICIENCY = COMPLEXITY   
  An example of the DOL can be seen in assembling bicycles in that one person performing all six required steps in assembling a bike, can make one unit in the same amount of time as it takes six people, each specializing in one of the six steps, to make 12 units   
  In 1776 Adam Smith argued that the DOL produces efficiencies because of the increased dexterity of the worker as he or she specializes in one task, because of the time save "in passing from one sort of work to another," and because of the introduction of machinery  
 
All societies have at least some rudimentary division of labor, especially btwn the tasks allocated to men & those allocated to women
 
 
W/ the development of industrialism, however, the DOL becomes vastly more complex than in any prior type of production systems.
 
 
In the modern world, the DOL is international in scope, hence globalization
 
 
The most fundamental change in the nature of work over time has been the increasing DOL
 
  EARLY DOL  
 
In hunter gatherer societies, each member engaged in more or less the full range of work activities except as labor as divided by gender & age
 
 
See Also:  Hunter Gatherer Society  
 
See Also:  Gender in Hunter Gatherer Society  
  It is believed that the earliest form of the DOL was that btwn men & women, & btwn children & adults  
  The child adult DOL began in the hunter gatherer era wherein children would tag along as adults did their tasks, learning the tasks & helping as their skills enabled them to help  
  The child adult DOL continued until factory work began & adults went out of the home to work, whereby child became a consumptive liability for a family rather than a productive asset  
  Until factory work began, the workplace orgl structure was identical w/ the family & extended family grp structure  
 
In the Feudal Era, most workers were in agriculture, but some specialized in a single product & had occupations such as tailors, cobblers, bakers, etc.
 
 
See Also:  The Feudal Era
 
  SDOL  
  The social division of labor (SDOL) is the DOL into different crafts or trades  
  The SDOL began in the Feudal Era, but became widespread in the Early Industrial Age  
 
In modern industrial societies, work has become so specialized that each trade is broken down into seemingly innumerable specialties
 
 
In the meat packing industry one can specialize as a large stock scalper, belly shaver, crotch buster, gut snatcher, gut sorter, snout puller, ear cutter, eyelid remover, stomach washers (sometimes called a belly bumper), hind puller, front leg toenail puller, & oxtail washer (Wilensky & Lebeaux, 1986)
 
 
Specialization creates new lines of work that require new & different skills; however, the DOL often reduces the range of skills needed to perform jobs
 
 
The DOL often results in the deskilling of workers
 
 
For example, a much narrower range of skills is needed to be a "gut snatcher" than a butcher
 
  DOL, INDL REV, BUREAUCRACY   
 
The DOL is a basic feature of industrialization, & the DOL as we know it today developed during the Industrial Revolution
 
 
The limited development of the DOL had occurred in eras previous to the Ind Rev  
 
Bureaucracy had existed in limited forms previous to the Industrial Revolution, but w/ this change, bureaucracy, like the DOL became widespread  
  The DOL is one of the fundamental characteristics of bureaucracy  
  Bureaucracy as we know it could not exist w/o the DOL  
  See Also:  Bureaucracy  
  See Also:  Weber  
  Durkheim held that the DOL is a fundamental, defining feature of modern society  
  Durkheim believes that modern society could not exist w/o the DOL  
  One of Durkheim's most important insights was that the DOL & industrial interdependence, which he characterized as organic solidarity, replaced mechanical solidarity wherein each person / family is relatively independent when compared to today's people  
  See Also:  Durkheim  
  See Also:  Mechanical & Organic Solidarity   
  MDOL  
  Most work in industrial society is organized in terms of the manufacturing DOL (MDOL)  
  Under the MDOL, the different activities in each craft are separated  
  For example a cobbler would make soles, then make tops, & then stitch them together while w/ the MDOL workers would divide these two tasks into many  
  Early scholars of work in the 1800s conducted analyses of labor where they studied craftsmen in order to determine how to divide the labor among unskilled workers  
  The analysis of labor continues today wherein each manufacturer must conduct exhaustive studies to determine the optimal MDOL  
  Analysis of labor consultants often work closely w/ production engineers to optimize the way products are designed so that the components can be efficiently assembled  
  The MDOL often involves the increased efficiencies from the assembly line  
  The DOL allows some workers to be paid less than other workers & has resulted in large, stratified orgs w/ a tall  hierarchy  
  The MDOL creates the preconditions for mechanization  
  Mechanization creates its own MDOL because workers must learn to operate various machines  
  EFFICIENCY VS. ALIENATION   
  Starting w/ Marx, it became well known that an extensive DOL frequently negated some of the increased efficiency because of the alienation & lost enthusiasm of the workers  
  The DOL is administered through direct personal control, foreman control, or technical control  
  See Also:  Workplace Control  
  The DOL reached some limits in the 1970s in that jobs were so finely dissected, & wkrs were so alienated that even mgt sought alternative methods of job org  
  Modern indl society has developed the DOL to such a great extent via Scientific Mgt., bureaucracy, etc. that workers literally go insane  
  Since the 70s, there has been some limited reversal of the trend of an increasing DOL, in some industries such as auto manufacturing  
  In the 2000s, job enlargement & the recognition that "big picture people" give orgs an advantage is more than apparent,   

 
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 Outline on Workplace Control
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  Mgrs generally seek as much control of the workplace as possible
 
  The Division of Labor produces not only specialized positions but also a vertical differentiation w/in orgs based on power  
  See Also:  The Division of Labor   
  Workers whose tasks are finely subdivided, i.e. deskilled, suffer a loss of skill, a loss of power, & a loss of wages  
  The power & income of those who organize the labor of others increases  
  In Labor & Monopoly Capital, 1974, Braverman argues that the purpose of assigning detailed tasks to different workers is to lessen their skills & thus lower their wages  
  In "The origins of job structure in the steel industry" (1974) Stone argues that while the division of labor of the crafts into subtasks & the development of machinery increased productivity, the assignment of detailed tasks to different workers is motivated by a drive to deskill labor in order to cheapen its price & reduce its intellectual power  
  Thus, the organization of labor becomes a way to control workers  
  Many social theorists have examined control in the workplace & found that control in the workplace is less a function of efficiency & more a function of maintaining power over workers & profits  
  Social theorists have found that power in the workplace influences power relationships in everyday life  
  See Also:  Economic Sociologists  
  Organized labor & individual wkrs have generally been reluctant to seek shared responsibility for decisions making in the wkplace
 
  Some theorist maintain that: 
 
  a.  wkrs are culturally conditioned to be servile; i.e., to not welcome wkplace control by lower level employees  
  b.  wkrs are alienated if they have no voice / power in the wkplace;  i.e., wkr are more satisfied if they do participate in decision making in the wkplace  
  Labor has been reluctant to seek workplace control because of their historical adversarial role, the corporatist / business unionism philosophy, & because of the economic concessions labor would have to make to gain such participation
 
  Both employers & unions began to consider cooperation during the 1980s where firms found themselves in highly competitive market environments
 
  In return for concessions on wages & benefits, labor has sometimes won greater control over the work process, & a share in the profits
 
  Greater control of the workplace & greater control of their share of the profits have often been done to help achieve employer survival & increase employment security
 
  The effect of labor mgt joint decision making flows along the TWO dimensions of: 
a.  control rights
b.  return rights
 
  a.  Control rights involve the degree to which labor participates in org decision making
 
  Unionization in itself inserts a degree of control rights because mgt decisions are now limited, w/ some of them being made by the wkrs through their union
 
  At the extreme, control rights include wk council arrangement such as in Germany
 
  b.  Return rights include the wage & salary system, incentive plans, profit sharing, gainsharing, ESOPs, etc.
 

 
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 Outline on the Orgl Env, Technology & Decision Making
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  TECH IS UNIQUE IN DEC MKING BECAUSE IT IS HUMAN CREATED, CAN BE TRANSFORMATIVE, OFTEN NOT CLEARLY UNDERSTOOD, & MAY CONTAIN UNKNOWN BENEFITS / COSTS   
  Technology is a basic envl condition for the dev of orgs because to a certain extent tech itself offers limits & opportunities for orgl dev 
 
  Orgs operating in an uncertain & dynamic techl env have different structures from those in techly stable envs 
 
  To deal w/ orgl uncertainly, orgs often estb separate divisions including R & D, indl engineering, mgt info systems 
 
  Tech is usually something external to an org, i.e. a resource, opportunity, threat, etc. that exists in the orgl env, but some tech orgs have tech as an internal factor over which they have greater control 
 
  Because tech & new ideas are part of the env, & since the sciences have norms of distribution, knowledge & scientific developments take a particular course to become useful to an org 
 
  Tech also exists in the managerial & administrative sciences in the form of the social sciences 
 
  Because orgs do not respond to tech through simple absorption, the control & dissemination of knowledge is a political process operating both in the env as well as in the org 
 
  Orgs have forces for stability & change & thus have their own internal "radical" & "reactionary" responses to tech, knowledge, etc. 
 
  In relation to the interorganizational relationships of orgs (IORs), orgs in highly complex techl envs are known to each other & can rank each other's performance   

 
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  Outline on  Richard Edwards:  Contested Terrain
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  -  Video:  Office Space:   Smash the Machine         1:36
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-  Biography & Major Works  
  Edwards indicates that economic orgs, i.e. businesses, are the location of, perhaps, the major social conflict in society   
  The conflict has shifted from business & unions, to the shop floor, the new contested terrain  
  Machinery & bureaucratic regulations in industry derive from management's desire to exert control over labor market characteristics & the attitudes of workers  
  Edwards demonstrates that org conflict is shaped by class conflict & that control w/in orgs is designed to control of class conflict  
  In modern society, conflict inside the organization, i.e. shop floor conflict, replaced class conflict  
  Richard Edwards calls the workplace Contested Terrain because he believes that it is inside workplace is where most conflict occurs in modern society  
  Edwards sees the workplace as a contested terrain where workers & owners vie for power  
  Mgrs. seek to routinize work to control workers & create ever larger profits  
  Workers seek more freedom & a higher standard of living  
  Edwards asks, 'Are the goals of mgt & workers inherently in conflict?  
  Edwards asks, 'How does org structure affect the achievement of the goals of mgt & workers?'  
  Edwards asks, 'What is the effect of particular org characteristics on the individual?'  
  Perrow holds that organizational structure impacts organizational struggle & conflict  
  Just as the structure & culture of society affect class conflict, so org structure & culture affect org conflict  
  For Edwards, the workplace has THREE organizational structures, each of which is characterized by a method of control including personal control, machine control, & bureaucratic control  
  For Edwards, the workplace is "contested terrain" where struggle / conflict occurs w/in the org structures of control as developed by mgt  
  Over history there has been an development of the control methods from personal control to machine control to bureaucratic control  
  1.  Direct Personal Control
 
  Direct personal control was developed when work first became part of the family structure & is still used in family businesses, small enterprises, & even some medium sized enterprises today  
  Autonomous personal control occurs when a worker or craftsperson controls all aspects of work, market relationships and is generally applicable in small business today
 
  Autonomous personal control occurs in craftswork & the smallest of businesses where the owner can have a direct hand in all the workplace relationships  
  Foreman control occurs when an owner hires lower-level mgrs. to control the job, while the owner retains control of market relationships  
  Foreman control occurs in businesses up to medium size where the owner delegates authority of the work process to lower-level mgrs, but can still retain a hand in market relationships  
  Foreman control still exists in agriculture & construction  
 
Mgt control occurs when the owner hires lower-level, middle, & upper mgt to control the work process & the market relationships
 
  Early in the Industrial Revolution punishments included verbal & physical coercion & the threat of firing in all forms of direct personal control  
  Today punishments are mainly restricted to firing, & a greater number & diversity of positive rewards  
  Direct personal control still exists in small to medium sized businesses but is difficult to implement in mass-production systems that need more coordination & standardized procedures  
  W/ direct personal control, w/o the rules & regs of bureaucracy, owners & mgrs had tremendous latitude in the work process & mkt. relationships  
  W/ direct personal control, mgrs. would not tend to use identical techniques & thus standardization & coordination was difficult to maintain  
  2.  Machine Control  
   
 
Machine control occurs where the worker is controlled & paced by the machinery or assembly line
 
  Machine control is aka technical control  
  Like scientific mgt, machine control was developed to standardize work procedures & to achieve the increased efficiency of the use of technology  
  Machine control determined the:  
 
a.  type of tools which impact the production process
 
 
b.  ownership of tools, which equals control of workplace
 
 
c.  division of labor through the organization of tools & machines 
 
  d.  activity & pace of the work which is directly controlled by the assembly line  
 
Computer control, originally known as numerical control, is a relatively new type of machine control that creates new structures of control
 
  Before the widespread inception of bureaucratic control, scientific mgt was developed which attempted to bring total direct & machine control to the workplace  
  See Also:  Scientific Mgt  
 
3.  Bureaucratic Control is unobtrusive, impersonal, & indirect
 
 
W/ bureaucratic control, rules & procedures circumscribe the unlimited control of mgrs.
 
  W/ bureaucratic control, all members of the org must follow standardized rules & regs  
 
W/ bureaucratic control, impersonal control replaces favoritism
 

 
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Richard Edwards

Contact Information
Economics, CBA 357
P.O. Box 880489
University of Nebraska-Lincoln
Lincoln, NE 68588-0489, USA
Phone: (402) 472-4995
Fax: (402) 472-9700
E-mail: redwards1@unl.edu

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Major Works of Edwards

Edwards, Richard.  Contested Terrain, 1979.  NY:  Basic Books 
Rights at Work (Brookings, 1993); 
The Forgotten Link, with Paolo Garonna (Rowman and Littlefield, 1991);
Understanding Capitalism, with Samuel Bowles and Frank Roosevelt (Oxford University Press, 2005); 


 
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 Outline on  Frederick Taylor:
Scientific Management & Taylorism
1856  -  1915
External
Links
Link
-  Biography & Major Works  
  INTRODUCTION  
  Frederick Taylor developed the field of work process engineering in the 1800s  
  The field of work process engineering that Taylor developed was called Scientific Management, & was sometimes called Taylorism  
  Mgrs. & engineers recognized that they needed to control/coordinate mass-production  
  Work process engineers needed to get the knowledge from the best workers & teach it to the other workers  
  To acquire the knowledge of the workers, Taylor developed Time & Motion Studies  
  In Time & Motion Studies an efficiency expert clocks each step in a job & looks for ways to reduce the time needed to do the job
 
  In Taylor's words, "The managers assume ... the burden of gathering together all of the traditional knowledge which in the past has been possessed by the workmen & then of classifying, tabulating, & reducing this knowledge to rules laws, & formulae...  All possible brain work should be removed from the shop & centered in the planning or laying out department..."
 
 
The image of the researcher, in a white lab coat, w/ a clip board & stop watch observing hard working blue collar men in the 1800s & early 1900s is one that was disturbing to most workers, including Labor leaders
 
  THE PRINCIPLES OF SCIENTIFIC MGT  
  Taylor's scientific management consisted of four principles:  
  a.  Replace rule of thumb wk methods w/ methods based on a scientific study of the tasks  
  b.  Scientifically select, train, & develop each wkr rather than passively leaving them to train themselves  
  c.  Cooperate w/ the wkrs to ensure that the scientifically developed methods are being followed  
  d.  Divide wk nearly equally between mgrs & wkrs, so that the mgrs apply scientific mgt principles to planning the work & the wkrs actually perform the tasks  
  TENETS OF SCIENTIFIC MGT  
  Tenets of Scientific Mgt include:  
  - that there is one best way to do a job  
  In contrast to the theory of one best way to do a job, the Japanese embrace the theory of continuous improvement, believing that there is always room for improvement  
  - pick the best workers  
  - observe them  
  - appropriate their knowledge & skills  
  - use the best workers' knowledge & skills to devise the most efficient method  
  - standardize the most efficient method  
  - train all workers in the most efficient method  
  - the belief that the piece rate would eliminate soldiering  
  - profit sharing would eliminate soldiering & build team-work  
  Taylor's methods were well ahead of his time  
  In one study, Taylor & his engineers examined the different ways of holding cutting tools on metal lathes  
  In one study, Taylor & his engineers examined the way gangs of men would load 90 lbs. ingots of pig iron on a railroad flat car  
  In one study, Taylor & his engineers examined the way gangs of men would dig  
  Taylor was concerned w/ performing work processes in the one best way as well as eliminating any soldiering  
  Soldiering occurred when men worked well below their capacity:  "The greatest part of systematic soldiering... is done by the men with the deliberate object of keeping their employers ignorant of how fast work can be done.  So universal is soldiering for this purpose, that hardly a competent workman can be found in a large establishment... who does not devote a considerable part of his time to studying just how slowly he can work and still convince his employers that he is going at a good pace."  
  Taylor fired anyone who he believed was soldiering, replaced them w/ less skilled workers, trained the replacement workers w/ the old workers' knowledge & skills  
  Taylor's replacement workers would be paid a piece rate & profit sharing  
  Taylor's replacement workers could generally be paid less than the old skilled workers  
 
One of the impacts of Scientific Mgt is that the control of the knowledge of the work process which had previously only been available to each worker, craft, guild, or trade union, now became available to mgt. & its Scientific Mgt. engineers  
  Scientific Mgt. appropriated knowledge, & economically damaged the worker, craft, guild, or trade union  
  Through the development of Scientific Mgt, mgt & engineers controlled the pace of work  
  Following this, machines & assembly lines controlled the pace of work  
  Scientific mgt is the beginning of the modern process of industrial engineering, HRM, etc.  
  Taylor, like Henry Ford & many other industrialists embraced the ideology of the time which held that control of the workplace went far beyond what occurred at work  
  Taylor, Ford, and others also believed in developing the moral character of the workforce & thus they punished or fired people for "immoral activity" & instituted citizenship & morality courses that the workers & their families had to attend  
  Another part of the industrialist ideology which Taylor, Ford, and others embraced was that  
  - workers responds only to money  
  - workers want to be told what to do  
  - workers are happiest when they are doing simple work  
  Taylor, Ford and others embraced many of the tenets of Social Darwinism  

 
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Frederick Winslow Taylor
1856  -  1915
b. Germantown, PA
Taylor was an Am engineer & efficiency expert. Born on March 20, 1865, into an upper class liberal Philadelphia family. His father, a Princeton graduate & lawyer, made enough money from mortgages and did not have to keep a regular job. His mother was a spirited abolitionist & feminist who was said to have run an underground railroad station for runaway slaves. Both parents were Quakers & believed in high thinking & plain living. Parental authority was not questioned & children were seen and not heard in the Taylor family. Family members referred to each other as "thee" & "thou". At an early age Taylor learned self-control & his Quaker upbringing helped him to avoid conflicts with his peers & to resolve disagreements among them. 

Joined Midvale Steel Works in Philly in 1878 as a worker.  After his apprenticeship at the hydraulic works plant, he became a common laborer at the Midvale Steel Company. He started as shop clerk & quickly progressed to machinist, foreman, maintenance foreman, and chief draftsman. Within six years he advanced to research director, then chief engineer. While working there he introduced piece work in the factory. His goal was to find the most efficient way to perform specific tasks. He closely watched how work was done and would then measure the quantity produced (Kanigel 44). Left in 1890 as chief engineer. 

Taylor became an independent consulting engineer, focusing on efficiency.  His most important client became Bethlehem Iron Company.  In his last years Frederick felt misunderstood by quick-fix managers and zealous unionists, and wronged by consultant imitators. His energy was sapped by the constant attention he paid to his wife's severe illnesses. While on a speaking tour in the Midwest, in 1915, he contracted influenza. He was admitted to a hospital in Philadelphia and celebrated his fifty-ninth birthday there. He died the next day.

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Major Works

Taylor, Frederich W.  The Principles of Scientific Management.  1911.  NY:  Harper & Row. 


 
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 Outline on  Worker's Resistance to Control at Work
External
Links
  Technical Control & Scientific Mgt. appear to increase efficiency because they specify precisely how work is to be done, & how quickly
 
  It is clear that w/ the development of work from the pre-feudal era, to the feudal era, to the industrial era, workers have clearly experienced increasing levels of control
 
  One of the limitations of the control of the workplace is that the processes to achieve such control make limited use of workers' skills
 
  Production rarely occurs exactly as planned, & machinery & parts often fail
 
  When workers are denied the skills & training necessary to deal w/ unforeseen contingencies, they are not in a position to handle the unexpected
 
  Technical Control & Scientific Mgt transfers skills to industrial engineers so that workers cannot deal w/ anomalous situations at work
 
  Technical Control & Scientific Mgt remove freedom & enthusiasm at work
 
  When workers are alienated because they are not creatively invested or challenged at work, they make a science of finding ways to allow production to lag, or to entertain themselves  
 
The greatest growth in the Labor Movement occurred immediately after the advent of Scientific Mgt & Technical Control
 
  Workers cooperate to "manage" the pace of assembly line work by working ahead, working up the line, banking production, or if they fall behind, by doubling up  
  The cooperation of workers to "manage the pace of work" is typically overlooked by mgt  

 
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 Outline on  Michael Burawoy:  Manufacturing Consent  19  -  19
External
Links
  -  Project:  Neo Marxist Economics 
Link
  -  Video:  Office Space:  Gangsta        3:07 
Link
  BURAWOY DEMONSTRATES THAT EXPLOITED WKRS WILL DO JUST ENOUGH WORK TO MEET THEIR LEVEL OF PRODUCTION  
  Since the 1930s, industrial sociologists have tried to answer the question, 'Why do workers not work harder?' 
 
  In Manufacturing Consent, Burawoy explores why workers work so hard despite, the hardships of the workplace, coupled w/ exploitation, alienation, a lack of respect, etc.   
  Burawoy spent ten months as a machine operator in a Chicago factory trying to determine why workers work as hard as they do & why they routinely consent to their own exploitation   
  Burawoy combines ethnographic methods with an original Marxist theory of the capitalist labor process finding that technical, political, and ideological changes in factory life, transformations of the market relations of the plant as it becomes part of a multinational corporation, & the broader development in labor relations in indl relations since World War II have all impacted the work a day world of the common factory wkr   
  One reason workers work hard is because of games, entertainment, etc. they engage in on the job which all serve to make work more legitimate   
  Burawoy notes that workplace games, horseplay, etc. are often supported by mgt & this combats alienation   
  Because workers believe in the opportunity to get ahead, they remain committed, at some level, to alienating jobs   
  In his article, "Making Out," Burawoy explores how modern industrial society manufactures the consent of the workers   
  Burawoy explores how workers attempt to meet the requirements of job w/o exhaustion & alienation   
  BURAWOY CONFIRMS THE HAWTHORN STUDIES FINDING THAT WKRS SET THE LEVEL OF PRODUCTION  
  Workers typically "manage their production" in that they strive to keep production at the "correct level" as determined by the workforce   
  Workers strive to keep production at the desired level & maximize enjoyment on the job   
  WKRS MFR CONSENT, SET THE LEVEL OF PRODUCTION VIA WORK BANKING, GAMES / 'ENTERTAINMENT,' & PRESSURING WKRS TO MAINTAIN THE WKRS' LEVEL OF PRODUCTION   
 
Work banking is the concept that workers will "work ahead" and store or bank work so they can deal w/ problems in production that they may have, and just for brief periods of slack time 
 
 
Work banking allows for breaks, production problems, & goofing off 
 
  Workers informally reward those who produce at the workers' determined level of production through inclusion, favorable nicknames, friendship, etc.   
  For workers who do not produce enough, other workers will call them ghost, slacker, goldbrick, etc.   
  Workers informally punish those who do not produce at the the workers' determined level of production through exclusion, derisive nicknames, isolation, etc.   
  For workers who produce too much, other workers will call them brown noser, junior manager, climber, rate buster, etc.   

 
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Michael Burawoy
 

Michael Burawoy has studied industrial workplaces in different parts of the world -- Zambia, Chicago, Hungary and Russia -- through participant observation. In his different projects he has tried to cast light -- from the standpoint of the workplace -- on the nature of post colonialism, on the organization of consent to capitalism, on the peculiar forms of working class consciousness and work organization in state socialism, and on the dilemmas of transition from socialism to capitalism. During the 1990s he studied post Soviet decline as “economic involution”: how the Russian economy was driven by the expansion of a range of intermediary organizations operating in the sphere of exchange (trade, finance, barter, new forms of money), and how the productive economy recentered on households and especially women. No longer able to work in factories, most recently he has turned to the study of his own workplace – the university – to consider the way sociology itself is produced and then disseminated to diverse publics. Over the course of his research and teaching, he has developed theoretically driven methodologies that allow broad conclusions to be drawn from ethnographic research and case studies. These methodologies are represented in Global Ethnography a book coauthored with 9 graduate students, which shows how globalization can be studied "from below" through participation in the lives of those who experience it. Throughout his sociological career he has engaged with Marxism, seeking to reconstruct it in the light of his research and more broadly in the light of historical challenges of the late 20th and early 21st. centuries.

University Address 
Department of Sociology
University of California
Berkeley, CA 94720
Telephone: 510-643-1958
email: burawoy@berkeley.edu

 

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Major Works

2000  Global Ethnography: Forces, Connections and Imaginations in a Postmodern World. Berkeley: University of California Press (w/ 9 coauthors)
1998  Uncertain Transition: Ethnographies of Change in the Post Socialist World. Lanham, MD: Rowman and Littlefield. Edited w/ Katherine Verdery. 
1992  The Radiant Past: Ideology and Reality in Hungary's Road to Capitalism. Chicago: University of Chicago Press. (w/ János Lukacs)
1991  Ethnography Unbound: Power and Resistance in the Modern Metropolis. Berkeley: University of California Press. (w/ 10 coauthors)
1985  The Politics of Production: Factory Regimes Under Capitalism and Socialism. London: Verso. 
1983  Marxist Inquiries: Studies of Labor, Class & States. Chicago: Un of Chicago Press. Supplement to the Am Jo of Soc edited w/ Theda Skocpol.
1979  Manufacturing Consent: Changes in the Labor Process Under Monopoly Capitalism. Chicago: University of Chicago Press. 
1972  The Colour of Class on the Copper Mines: From African Advancement to Zambianization. Manchester: Manchester University Press.


 
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 Outline on Human Resource Management
External
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  THE HUMAN RELATIONS MVMT (HRM) MAY, IN MANY WAYS, BE SEEN AS A RESPONSE TO TAYLORISM, HUMANIZING IT'S ATTEMPT AT MACHINE LIKE CONTROL   
Link
As Taylorism evolves, sci mgt incentive plans came under intense fire from wkrs & unions 
 
  See Also:  Taylorism 
 
  Under Taylorism & class mgt, the amt of wk was raised to the pt where the wkr was exploited 
 
  Classical mgt was eventually supplemented by HRM
 
  HRM incorporated & extended & cut out some ideas from classic mgt 
 
  By early 1920, the dysfunctions of standardizing wkrs & jobs were apparent 
 
  Wkrs could not be seen as mere appendages to the machine 
 
  HRM did not challenge the tenets of classical mgt of: 
-  task specialization 
-  orderliness 
-  stability 
-  control 
 
  Industrial engineers became HR mgrs & thus the same people learned new social sciences related to the workplace 
 
  HRM supplemented classic mgt w/ the humane treatment of wkrs 
 
  Although money is an important motivator, most wkrs are willing to take part of their reward in the form of: 
-  humane treatment 
-  personal attn 
-  some task control
-  & the chance to feel important 
 
  A.  HRM RECOGNIZED THE IMPACT OF THE DEV OF INFORMAL GRPS & INFORMAL GRP NORMS
 
  An example of HRM recognizing informal grp norms is seen in the list of norms from the Hawthorne bank wiring room   
  B.  HRM STUDIES THE CHARACTERISTICS OF INFORMAL GRPS:  INFORMAL ORGS AS CONTROLLERS, MGT ANALYTICAL TECH, THE GRAPEVINE, & INFORMAL RESISTANCE TO CHANGE
 
  1.  Informal orgs act as social control agents using norms, & demanding conformity from members   
  2.  HRM must use new analytical technologies   
  Classic mgt used time & motion studies   
  HRM used socio metric tests to determine 
-  structure of grps 
-  interaction btwn grp members 
-  leaders 
-  followers 
-  most & least accepted members 
 
  3.   Informal grps use the grapevine for communication  
 
4.  Informal grps resist change 
 
  In informal groups, survival depends upon a stable continuing relationship among the people themselves   
  C.  THERE ARE BOTH PHYSICAL & PSYCHOLOGICAL EFFECTS TO THE DIV OF LABOR   
  Though the div of labor enhances productivity, fatigue & monotony must be dealt w/ from a psychl as well as a physical standpoint   
  Internal friction disrupts the orgl plan   
  The remedy to orgl friction is to reduce or eliminate orgl conflict via: 
-  participative mgt 
-  improved commo 
-  recognition of human dignity 
 
  THE LIMITATIONS OF HRM INCLUDE THE RELATIONSHIP BTWN PRODUCTIVITY & WKR SATISFACTION, THE DIVISION BTWN FORMAL & INFORMAL ORGS, WEAKNESSES OF QUALITATIVE METHODOLOGY, & TRANSFERABILITY  
  1.  The belief that participation = satisfaction = increased productivity is questioned in some research & supported in other research   
  In the HRM school, the belief that participation = satisfaction = increased productivity is called the "happiness school"   
  Research shows some correlation btwn satisfaction & productivity, but other factors may intervene   
  2.  HRM saw formal & informal orgs as two distinct structures   
  We now believe formal & informal orgs are linked   
  HRM saw the goals of the formal & informal structures as irreconcilable, but this is not always true   
  3.  Qualitative methods are problematic   
  4.  HRM research was narrow & not easily transferred to other locations   

 
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Outline on the  Hawthorne Studies
External
Links
  Summary:  Elton Mayo headed a research project utilizing non-participatory, obtrusive observation at the Bank Wiring Room in the Western Electric Company Plant in Hawthorne, IL (Roethlisberger & Dickinson, 1939,  p. 379-408) & eventually developed the concept, of what is now known as the Hawthorne Effect, & also found that workers are socially motivated as well as economically motivated, & that workers control the pace of the work  
  The Hawthorne studies examined many setting including one w/ mostly young women working in a room at the plant wiring, soldering, & inspecting electrical boards in Hawthorne, IL  
  An obtrusive (overt) non-participatory observer sat w/ women in the plant for a number of days, watching their work & interactions  
  Initially, the observer noticed how the workers joked w/ & teased each other or occasionally helped one another  
  The researcher noted that the group's productivity was basically constant, despite company efforts to increase it  
  The research project eventually concluded that the small work group had developed an informal norm, as part of their organizational culture, defining an appropriate level of productivity  
  See Also:  Culture on folkways, mores, norms, laws, etc.  
  See Also:  Organizational Culture  
  The advent of the work-pace norm meant that for social scientists studying the workplace, the concept of the the Economic Person, often called Homo Economus, w/ the concept of the Social Person because the Hawthorne researchers found that the workers sought more from work than just money  
  The concept of Homo Socialus opened a whole new phase of workplace analysis whereby researchers, managers, & consultants all started examining workers' social needs & desires rather than just economic motivators  
  The Hawthorne Studies created the realization that the work-pace is informally set by workers via social relations of production, that mgt. efforts are secondary, that workers actively resist control were major findings that are still valid today  
  The findings of the Hawthorne Studies were found serendipitously through the FOUR phases of the study over several years  
  During Phase 1, the researchers noted some inconsistent data  
 
During Phase 2, the researchers found that productivity increase irregardless of whether illumination was increased or decreased, which lead to the discovery of the concept of the Hawthorne Effect  
  See Also:  The Hawthorne Effect  
  The concept of worker norms on work-pace & the foundational research on organization culture were discovered in the latter stages of the Hawthorne Studies  
 
During Phase 3, the researchers found that productivity was determined by an individual w/in a group  
 
Roethlisberger conducted 20,000 interviews & was important at this phase of the research  
 
During the interviews of the Hawthorne Studies, people tended to give standard, stereotyped answers to direct questions & therefore a nondirect approach was substituted  
 
During Phase 3, the researchers found that productivity was controlled by the workers, not managers  
 
In the Hawthorne Studies, in the Bank Wiring Room:  
 
1.  Workers restricted output  
 
The workers restricted output because:  
 
a.  the workers were afraid of working themselves out of a job  
 
b.  the workers were afraid that if they did work faster, mgt. might raise standards, & then they wouldn't be able to achieve the goal set by mgt.  
 
c.  the low rate protected slow workers  
 
d.  mgt accepted the current rate  
 
2.  Workers treated different mgrs differently in that they had more respect for upper mgt  
 
3.  Workers formed cliques or subgroups such as gamesmen, job-traders, etc.  
 
4.  Roethlisberger & Dickinson concluded that workers formed codes of conduct which held that:  
 
a.  no rate-busters were allowed to turn out too much work  
 
Contemporary terms for rate-busters are brown-noser, mgt. material, shrimp, slave, speed king, etc.  
 
b.  no chiselers were allowed to turn out too little work  
  Contemporary terms for chiselers include slug, ghost, slacker, gold-brick (WW2), etc.  
  c.  no squealers were allowed to tell a superior anything that will hurt another worker or group  
  Contemporary terms for squealers are brown-noser, snitch, rat, fink, snitch, informer, whistle blower, etc.  
  d.  no stand-off-ish-ness is allowed so that no one, not even an inspector, should maintain social distance or act officiously  

 
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 Outline on the  Hawthorne Effect & Placebos 
External
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Summary:  The Hawthorne Studies began in 1924 at the Hawthorne Works of the West Electric Co. near Cicero, IL, & were conducted under auspices the National Research Council under the lead researcher, Elton Mayo.  The objectives were to examine the effect of illumination on output.  After 2.5 yrs. & many experiments, researchers could see no effect because output in both control & experimental groups had increased because the effect of being studied impacted the research subjects.  But ultimately the research found that wkrs are socially motivated as well as economically motivated, & that it is the wkrs control the pace of the wk 
 
  THE HAWTHORNE EFFECT OCCURS WHEN WKRS REACT TO BEING STUDIED BY PLEASING THE RESEARCHER, & THAT WKRS CONTROL THE PACE OF WORK, & AS CONCERNED W/ SOCIAL AS WELL AS ECON INCENTIVES   
 
Reactivity is the tendency of people being studied by social scientists to react to the researcher or to the fact that they are being studied
 
 
The Hawthorne Effect (HE) is a form of reactivity 
 
  In the Hawthorne Studies, the wkrs being studied in the General Electric Hawthorne Plant Motor Wiring Room attempted to please the researchers because they always attempted to please / appease authority figures on the job   
  Many researchers believe the research was affected by patriarchy & gender issues in that all the wkrs were women & all the researchers were men   
 
The concept of the Hawthorne Effect, which was developed during the Hawthorne Studies, holds that added social attention to workers will increase their productivity 
 
 
People in some parts of the Hawthorne Studies found that the people being studied attempt to please the researcher 
 
 
THE PLACEBO EFFECT (PE) IS A FORM OF REACTIVITY WHEREBY PEOPLE REACT AS A RESULT OF BEING STUDIED, WHEN IN FACT NOTHING HAS CHANGED 
 
 
A placebo is a false or phony treatment designed to differentiate btwn changes due to real treatment & "imagined" treatment 
 
 
A placebo is a thing or treatment given by researchers that can provide remedy because subjects believe that their condition is being treated 
 
 
The PE is widely known in medical studies because even groups who receive sugar pills instead of medicine often show improvement 
 
 
The HE & the PE are very similar except the HE is often, at some level, consciously chosen whereas the PE is never consciously chosen 
 
  THE HAWTHORNE STUDIES AT FIRST FOUND NOTHING & THEN DISCOVERED THE PLACEBO / REACTIVITY OF THE WKRS, THAT THE WKRS CONTROLLED THE PACE OF THE WK, & THAT WKRS ARE SUBJECT TO SOCIAL & ECON FACTORS IN THE WKPLACE   
  At the GE Hawthorne plant, Elton Mayo & team of young male researchers studied effect of change in light level at the Hawthorne motor wire winding plant where the wkrs were mostly young women   
  At first the researchers were confused because productivity increased whenever any change occurred at wkplace, but they eventually discovered that the wkrs controlled the pace of the work & were motivated by social factors & not only econ factors as the classic mgt theory of the era held   
  Because of Mayo's research, the concept of the 'economic person' was replaced by the 'social person' in that people seek more from wk than money   
  One of the most important findings was that the pace of work was set by the wkrs   
  Mayo & other researchers came to the realization that pace is informally set by wkrs via social relations of production; mgt efforts are secondary, wkrs resist   
  Wkrs have labels such as rate buster, shrimp, slave, speed king, brown noser which they give to sanction wkrs who work too fast   
  Wkrs have labels such as slug, ghost, gold-bricker, slacker which they give to sanction wkrs who work too slow   
 
During the Hawthorne Studies the HE was serendipitously discovered through dogged research 
 
 
The Hawthorne Studies lasted several years & applied different treatments in different settings 
 
 
One of the dynamics of the study was that the Motor Wiring Room was mostly staffed by young women while the researchers were all young "college men" 
 
  THE HAWTHORNE STUDIES WENT THROUGH 4 PHASES WHERE THEY FOUND:  1. INCONSISTENCIES, 2. THE PLACEBO / REACTIVITY EFFECT, 3. PACE SET BY THE WKRS, 4. WKRS WERE SUBJECT TO SOCIAL AS WELL AS ECON CONTROL   
 
The focus of the study was an examination of the effect of illumination on the workplace; i.e., what was the optimal level of lighting for factory work 
 
 
The findings of the Hawthorne Studies were found serendipitously through the FOUR phases of the study over several years
 
 
DURING PHASE 1, THE RESEARCHERS NOTED SOME INCONSISTENT DATA
 
  The Hawthorne studies began in 1924 at Hawthorne Works of the West Electric Co near Cicero, IL  
  The original objectives were to examine effect of illumination on output  
  After 2.5 yrs & many experiments, could see no effect because output in both the control & the exp grps had increased!   
  PHASE 2 WAS A REVISITATION OF THE RESEARCH & THUS THE PLACEBO EFFECT / REACTIVITY OF THE WKRS WAS FOUND   
 
During Phase 2, the researchers found that productivity increased regardless of whether illumination was increased or decreased
 
  Productivity increased regardless of environmental changes in wkplace   
  To determine the cause of these changes in output, the researchers isolated small grps of wkrs for close observation   
 
The observers, college males in lab coats, observed isolated small groups of workers, who were mostly young women 
 
 
The women were told to ignore the researchers & work at their regular pace 
 
 
The women & the men interacted 
 
 
The researchers wondered if other factors were intervening, so they introduced hot lunches, rest periods, days off, Saturdays work, longer hrs., shorter hrs., high fatigue, etc. 
 
 
When the researchers introduced & controlled various other factors in the workplace, output rose & stayed high! 
 
 
There was no easily identified relationship btwn productivity & changes in the work environment 
 
 
The impact on productivity seemed to lie more w/ social factors than w/ anything else 
 
 
It was through intensive interviews that Roethlisberger discovered that the women were deliberately increasing productivity because of the intense observation, & the nature of the observers, that they were experiencing 
 
 
The Hawthorne Studies revealed that the workers were reacting to being observed & that at some level, this reaction was conscious or deliberate 
 
  Ultimately as a result of revisiting the research which originally showed inconsistent data, Mayo found that the wkrs were reacting to being studied; they were doing whatever it took to please the researchers, thus revealing the concept of reactivity / the placebo effect in social research   
 
In the later phases of the Hawthorne Studies, it was found that workers develop norms & organizational culture which impact, among other things, work pace 
 
  PHASE 3 FOUND THAT OUTPUT WAS DETERMINED BY THE GRP, OR EVEN AN INDIVIDUAL OR INDIVIDUALS W/IN THE GRP  
  Roethlisberger & Mayo conducted 20,000 interviews where they found that people tended to give standard, stereotyped answers to direct questions   
  Because of what he thought were standard answers, Roethlisberger utilized a non direct approach w/ fewer in depth interviews & observation   
  Through in depth interviews & observation, the researchers found that wkrs ( not mgrs ) controlled pace of wk   
  Wkrs at the GE plant controlled output because they: 
a.  feared wking themselves out of a job 
b.  feared mgt might raise standards & then they wouldn't be able to achieve the goal set by mgt 
c.  could protect low rate / slow wkrs 
d.  realized mgt accepted the current rate 
 
  Mayo & Roethlisberger also found that the wkrs treated different mgrs differently   
  The wkrs had more respect for top mgrs & particular mid & lower level mgrs whom they thought were fair or good / effective   
  Mayo & Roethlisberger also found  that cliques or subgrps formed in the wkplace including 'games men' & 'job traders' as well as the 'leaders' who informally regulated the wkplace   
  PHASE 4 FOUND THAT WKRS WERE SUBJECT TO SOCIAL FACTORS / INCENTIVES  
  The predominant mgt paradigm at that time held that wkrs were motivated solely by econ factors   
  Roethlisberger & Dickson found that wkrs responded, & created & controlled a variety of non econ or social factors which had as much as or greater effect than the econ factors   
  Social factors that impacted wkrs were the codes of conduct created by the wkrs   
  One of the wkrs codes of conduct was a prohibition against rate busters who turn out too much work   
  Rate busters today might be called everything from brown noser to the more benevolent 'mgt material'   
  One of the wkrs codes of conduct was a prohibition against chislers who turn out too little work   
  Chislers today might be called everything from slug to ghost   
  One of the wkrs codes of conduct was a prohibition against squealers; e.g. those who tell a superior anything that will hurt another wkr or grp  
  One of the wkrs codes of conduct was a prohibition against stand-off-ish-ness;  no one, not even an inspector, should maintain soc distance or act officious   

 
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  Outline on    Bureaucratic Orgs & Rational Authority   by Max Weber
External
Links
  -  Project:  Weber on Rational / Bureaucratic Orgs 
Link
  -  Project:  Your Bureaucracy 
Link
Link
-  Video:  The Corporation 
Link
  -  Project:  Video:  The Corporation & Bureaucracy 
Link
 
There are THREE types authority 
a. Rational or bureaucratic authority 
b. Traditional 
c. Charismatic 
 
 
Weber's definition of bureaucracy is an "ideal type" 
i.e., an abstract definition based on a set of characteristics 
i.e., a pure type 
 
  Bureaucracy is an orgl model rationally designed to perform tasks efficiently   
 
Weber developed, what may be called, a functionalist analysis of bureaucracy 
 
 
Bureaucracy, for Weber, is the development of legal / rational authority in social life 
 
 
For Weber, bureaucracies exhibit formal rationality, which means decisions are made purely on the basis of following the rules & procedures in order to accomplish organizational goals 
 
Link
For Weber, conceived as a pure type, the modern bureaucratic org has nine distinctive characteristics 
1.  Division of Labor  2.  Hierarchy 3.  Rules  4.  Merit System  5.  Mgt 6.  Tenure 
7.  Wages & Salaries  8.  Technical Competence  9.  Formal Communications 
 
 
1.  DIVISION OF LABOR IS THE ORGANIZATION OF PRODUCTION BASED ON SPECIALIZED POSITIONS 
 
 
In a bureaucracy, positions may require technical qualifications that require training (OJT or higher ed) 
 
 
Bureaucracy consists of positions bound by rules 
 
 
Positions have specialized spheres of competence w/ set of obligations & authority to carry it out 
 
 
2.  HIERARCHY IS AUTHORITY SPECIFIED VIA A TOP DOWN CHAIN OF COMMAND 
 
  In a bureaucracy there is a hierarchy of offices & positions   
 
Each official in a hierarchy has specific scope of authority 
 
 
In a hierarchical bureaucracy, each position commands those below it & takes commands from those above it 
 
  The bureaucratic characteristics of the division of labor & hierarchy results in the pyramidal shaped org w/ which we are all familiar   
 
Note:  militaristic chain of command 
 
  3.  RULES ARE PRINCIPLES MADE TO GUIDE & CONTROL ACTION; STANDARDS OR REGULATIONS   
 
Rules include administrative acts & decisions that are formulated & recorded in writing 
 
  Rules are usually written today, but this is a recent innovation   
  In most forms of organization, including bureaucracy, there are many informal, i.e. unwritten rules   
 
4.  A MERIT SYSTEM IS EVALUATION ON THE BASIS OF ACHIEVEMENT 
 
 
Impersonality & universality in the merit system holds that people should be evaluated on the basis of achievement 
 
 
5.  THE JOB OF MANAGEMENT & ADMINISTRATION IS COORDINATION 
 
  In early orgs, mgt was often done by the owner who many times was also a worker, who usually had the 'master' status   
  As orgs became larger, mgt was separated from the workers, but usually the owner still participated in mgt   
  Today there are some large orgs where the owner has little or no mgt duties; the owner hires a mgr just as they would a worker   
 
6.  TENURE MEANS HAVING A LIFELONG CAREER / JOB SECURITY 
 
  Job security / tenure has not been widely practiced in US since the Reagan era ( 1980s ) of downsizing began  
 
7.  PAYING WAGES / SALARIES WAS A COMPENSATION INNOVATION WHEN COMPARED TO PIECE WORK, DAILY PAY, BARTER, OR 'UNCOMPENSATED' WORK BASED ON TRADITION, E.G. SERFS, SLAVES, ETC. 
 
  Paying wages / salaries developed in the late middle ages since before that most people were either owners or unpaid serfs, peasants, etc.   
  Before bureaucratization, salaried positions were often bought but Weber believed that bureaucratization should eliminate this practice, & it did   
  8.  TECHNICAL COMPETENCE IS THE POSSESSION OF SKILL BASED ON EDUCATION & / OR EXTENSIVE TRAINING   
Technical competence is the ability to do the job whether that is an actual technology related job or an admin job   
  As the division of labor advances, the degree of technical competence also increases in that expertise rises & versatility falls & experts have less ability to talk & work together   
  Traditional methods of education, training, & certification are being rationalized to ensure people are technically competent   
  9.  FORMAL, WRITTEN COMMUNICATION IS THE PRACTICE OF RECORDING COMMUNICATIONS IN A FORMALIZED, STANDARDIZED MANNER   
  Formal, written communication is seen in the practice policy of writing everything down in order to allow all relevant parties to have access to the info   
  The present era is an info era in that more info is available to more people than ever before both because people generate more info & because that info is available to more people   
  The practice of formal, written communications by bureaucracies is the cause of the privacy crisis; for example, many orgs know more about a person than that person knows about themselves   
  WEBER BELIEVES BUREAUCRACY IS THE MOST POWERFUL SOCIAL INVENTION SINCE THE FAMILY & RELIGION   
  Though modern people equate bureaucracy w/ red tape & inefficiency, bureaucracy is the most efficient form of organization ever devised   
  Weber saw rationalization as one of the most significant trends in modern society, & bureaucracy was the means by which it occurs   
  Rational authority is based on a claim by leaders, acknowledged by the followers, that decisions made in the organizations are the most efficient in achieving the goals of the organization   
 
For Weber, Boeing is a rational, bureaucratic organization 
 
 
The dominant type of organization in modern society is the bureaucracy, i.e. the bureaucracy has great power, it is the most common, & is becoming more common 
 
 
Bureaucracy is one example of the rationalization of society 
 
 
Bureaucracy / rationalization is replacing tradition, religion, common sense & all other methods of knowledge & organization 
 
 
For Weber, bureaucracy was modeled after the Prussian military 
 
 
Historically speaking, bureaucracy is the most efficient system of organization 
 
 
Compare it to your family, church or unorganized group of people trying to accomplish a task 
 
 
Bureaucracy has displaced force, patrimony, loyalty, graft, corruption, etc. as methods of organization 
 
 
BUREAUCRACIES ARE EFFECTIVE FOR THREE REASONS, INCLUDING THE ELIMINATION OF IRRATIONAL AUTHORITY, A FOCUS ON TASKS, & COORDINATION
 
 
a.  Bureaucracy eliminates charismatic & traditional forms of authority which are usually seen as personal favoritism, nepotism, ethnocentrism, etc. 
 
 
b.  Bureaucracy identifies tasks that need to be done & assigns someone to do them, & monitors how well they get done 
 
 
c.  Bureaucracy provides a way to coordinate activities of a large number of people so that each effort contributes to the common task, goal or product rather than to individual tasks, or rather than working at cross purposes 
 
 
But there are also many inefficiencies of bureaucracy which overlap w/ many of the inefficiencies of the division of labor 
 
 
Bureaucracy destroys meaning & reason for work, people become interchangeable components 
 
 
For Weber, the bureaucratic organization is ‘the worst form of organization except for every other kind.’ 
 

 
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 Outline on the  Types of Corporations
External
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There are THIRTEEN legal types of corporations & FOUR socio-political types of corporations
 
Link
Table on 13 Types of Corporations  
  FOUR socio-political types of corporations include the Multinational Corp, the Transnational Corp, the Supranational Corp, & the Conglomerate  
 
a.  Multinational Corps are divisionalized corps that have divisions in many countries, but still have primary interests in one country
 
  Multinational Corporations ( MC ) are very large corporations that is headquatered in one contry but operates in many
 
  MCs may be differentiated from Transnational Corps & Supranational Corps in that they still have a strong identity & culture liked to their nation of origin, & have a primary interest in that nation  
  MCs in the US can still imbrace Henry Ford's motto of the early 1900s:  "What's good for Ford is good for America!"  
 
MCs utilize an international division of labor
 
 
See Also:  International Division of Labor  
  The technique of an international division of labor allows MCs to engage in resource extraction, resource production, assembling, sale & marketing, etc. in different parts of the world, locating each operation whereever it will best contribute to corp profitability
 
  MCs often dominate markets not just in their home country, but in many other countries as well
 
  Economists, business leaders, policy makers, sociologists debate whether the MC is the most efficient type of org, i.e. whether it is necessary or not in todays world given the compartive advantages offered in different regions & the costs of global transportation
 
  About one-fifth of what is manufactured in the US is sold elsewhere, & more than one-fifth of what is sold here is manufactured elsewhere
 
  If the amount of imports of a nation is greater than the amount of exports, there is a Trade Deficit, and the nation's wealth will flow out to the other nations
 
  If the amount of exports of a nation is greater than the amount of imports, there is a Trade Surplus, and other nation's wealth will flow in
 
  The US has a large Trade Deficit because we import much more than we export, a large portion of imports which is oil
 
  In general, an economy is best served by maintaining a Trade Balance of equal imports & exports
 
  For MCs, markets, resources, production are often located in different nations
 
  Levi's are partially manufactured in Mexico
Toyota, Honda, & Volkswagen have manufacturing operations in the US
 
  A common practice is for a corporation to be absorbed into one based in another 
 
  The US's RCA televisions are today the product of a French govt.-owned corp, Thomson SA
 
  The US's Chrylser was bought by Daimler (Mercedes-Benz) of Germany which at first was called Daimler Chrysler, but now is just Daimler
 
  In 3rd world countries, while MCs pay wages at higher than the prevailing rate, the activities of MCs in these areas are in many ways detrimental  
 
MCs are detrimental for developing nations because they take profits out of the country, depriving it of the opportunity to invest & grow  
 
The wealth & power of MCs often makes them more powerful than the host countries themselves  
 
The trend of growing MCs has internationalized the Market Concentration which, on the national level, created Monopoly Capitalism & Market Concentration in the US & other industrialized nations in the late 1800s & early 1900s, thus society may have to deal w/ a Globalized Monopoly Capitalism in the future
 
 
See Also:  Monopoly Capitalism  
 
See Also:  Market Concentration  
  b.  Transnational Corps are Multinational Corps that have so many international divisions that they no longer have a primary interest in any one country; however, they still has an identity from one country  
  In 1995 there were 35,000 Transnational Corps & the top 300 control 25% of world production assets  
  Many Transnational Corps are more powerful than the nations they inhabit  
  The sheer size of transnational corps, in econ terms, means they have considerable influence on the economies, policies, & politics of the countries in which they operate  
  c.  Supranational Corps are Transnational Corps that have lost any national identity  
  What's good for Ford is good for America!"     NOT!  
  What is best for a business may not be what is best for the nation in terms of unemployment, deindustrialization, downsizing, taxes, pollution, toxic waste, etc.  
  While there are very few of Supranational Corps, such as Rupert Murdock's Fox Corporation, more corps are showing less national commitment as they continue to move operations overseas  
  d.  The Conglomerate Corp is diversified into variety of different econ activities, often through mergers & acquisitions  
  Any of the types of corp discussed above may or may not be a conglomerate  
  Multinational, Transnational, & Supranational Corps all are generally conglomerates  
  An examples of a conglomerate corp is Philip Morris who is in tobacco, is the largest beverage maker, e.g. Miller Brewing, is in food processing, e.g. Kraft, General Foods, Tobblers, etc., & is also in real estate, import-export, publishing, & more  
  Nestles is the world's largest packaged food manufacturer  

 
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Table on 13 Legal Types of Corporations
Type of Corp
Descriptions
Example
Public Govt owned
Formed for specific public purpose
 TVA
Quasi-public Public Utilities; for profit
Often have monopoly 
Provide basic services
Commonwealth Ed
ODP
Private Owned by private individuals or co's GM, Microsoft
Not-for-profit Exist to provide social service, rather than make a profit Harvard Un
For-profit Major goal is to make profit:  today that is done by increasing stock value; not through div IBM, GM
Publicly traded Sell stock on open market (Dow, Nasdaq, etc.) IBM, GM, Microsoft
Not publicly traded Withhold stock from open market:  corp constitution determines how stock is bought/sold
 
Professional shareholders offer prof services (medical, legal, engineering, etc.)
 
S corp No more than 35 shareholders; may be taxed as partnerships Inland Asphalt
Rothschilds
Schlumberge'
Limited liability Combine benefits of S corp & limited partnership, w/o drawbacks of either Realatech
Subsidiary Stock is owned entirely or almost entirely by another corp Seven-up
Parent co. Owns most, if not all of another & takes an active part in managing all subsidiaries Sears
Holding co. Owns most, if not all of another but takes no active part in managing all subsidiaries.  Intermark

 
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 Outline on  Who Holds Organizational Power?
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  POWER IS ALLOCATED BY THE ORGL STRUCTURE & CULTURE & VARIOUS ORGL ENTITIES SHAPED BY THESE 
 
  Power, authority, influence, etc. is all held by individuals in their positions in the organizational hierarchy 
 
  Thus, people higher up in the org should have more power than those lower in hierarchy 
 
  Power is often held in relationships outside of the formal organizational structure 
 
  a.  Organizational culture creates & allocates power 
 
  b.  Informal networks create & allocate power 
 
  c.  Individual attributes, such as charisma, tradition, knowledge, etc., create & allocate power 
 
  Horizontal power relations should, but do not have to create power 
 
  Members, at each level of the org, struggle w/ peers for resources 
 
  Power may not enter into relationships if parties have no reason to influence others 
 
  Power plays w/ peers often enters in the types of conflicts over 
a.  budgets 
b.  output quotas 
c.  priorities for personnel 
d.  what new tech is adopted & who gets it 
 
  1.  DEPARTMENTAL  POWER IS SOMETIMES SO GREAT THAT IT DOMINATES THE ENTIRE ORG
 
  Perrow (1970) notes that sales depts are overwhelmingly the most powerful in orgs 
 
  In the past it was engineering / production which were the most powerful in most orgs   
  Fligstein (1987) notes that entrepreneurs or people who came up through mfr dominated corp presidencies in early 1900s, while today it may be finance 
 
  The parts of the org w/ most power carry out the most critical functions & have the other parts of the org depend on them 
 
  2.  MANAGEMENT HOLDS POWER IN MOST ORGS TODAY   
  But there are other forms of orgs where power is more equally distributed   
  3.  CLIQUES & COALITIONS ARE INFORMAL ORGS W/IN THE ORG WHICH CAN HOLD POWER   
  May be groups of mgrs, or any of the power holders discussed below   
  4.  POWER IS HELD BY EVALUATORS THROUGHOUT THE ORG   
  Dornbusch & Scott (1975) demonstrate that regardless of who has day to day power over one power in orgs is often contained in evaluation   
  The one who evaluates, has authority   
  Dalton (1959) demonstrates that staff / line power struggles are constant occurrences in several areas   
  5.  STAFF OFTEN COMES INTO CONFLICT W/ LINE PERSONNEL   
  Staff often have SIX characteristics that bring them into conflict w/ line personnel, including that they are: 
1. younger 
2. more formalized 
3. concerned w/ dress & manners 
4. more theoretically oriented than line mgrs 
5. more expert power 
6. must secure coop from line/managers to do anything 
 
  An early innovation in bureaucracy was the development of specialized staff positions   
  Modern bureaucracies often include staff positions that are outside the linear chain of command   
  See Also:  Mintzberg, who has developed a 5 part model of the modern bureaucracy that includes staff & line segments   
  Staff positions are ancillary support positions   
  Staff positions are filled by specialized workers trained in some specific area, such as safety & health, law, accounting , personnel relations or other important functions that support the main activity of the org   
  Staff report directly to someone in a line position at a given level of the org; however, they have no direct relationship to those higher up in the hierarchy or to those in subordinate positions   
  Staff are supplementary experts needed at specific levels of the org, but they are not included in the formal chain of authority   
  Staff have less frequent promotion opportunities than for Line Workers because they have less defined job ladders   
  6.  LINE / MANAGERS OFTEN COME INTO CONFLICT W/ STAFF  
  Line / mgrs have characteristics that bring them into conflict w/ staff because they: 
a.  seek income, promotions, power 
b.  hold the power through controlling the promotion process 
c.  fear that staff may threaten their domain 
d. struggle over the same resources 
 
  Line positions are those included in the linear chain of command w/in a bureaucracy   
  7.  ACCOUNTING & INFO SYSTEMS ARE CENTRAL AGENTS OF POWER BECAUSE THEY DEAL W/ THE ORG'S MOST IMPORTANT RESOURCES   
  Accounting & info systems are important agents of power for reasons including that 
a.  incentive systems provides basis of reward distribution 
b.  power holders shape & decide what are issues & non issues 
c.  they have access to critical info that others do not 
d.  they have a range of professional discretion that can allow for divergent outcomes 
 
  Staff resents line & vice versa   

 
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 Outline on the  Organizational Structure Types
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  ORGL STRUCTURES ARE A SUBSET OF SOCIAL STRUCTURES  
  Structures specify patterns of obligations & responsibilities 
 
  Soc structures are patterns of relationships in society including such patterned relationships as  family, econ/work, ed, govt, media, rec
 
  Orgl structures are patterns of relationships among various parts of an org 
 
  Overview of Orgl Structures 
There are many types of orgl structures, including: 
1.  Functional orgs 
2.  Geographic orgs 
     - regional orgs 
     - global orgs 
     - global heterarchies 
3.  Product/Division orgs
4.  Hybrid orgs 
5.  Matrix orgs 
6.  Democratic orgs 
     - Heterarchies 
     - Horizontal orgs 
 
  The major types of orgl structure include functional, geographic, product or division, hybrid, matrix, & democratic orgs   
  1.  FUNCTIONAL ORGS HAVE ORGL STRUCTURES THAT GROUPS ACTIVITIES ALONG A COMMON FUNCTION 
 
  Characteristics of a func org include: 
 
  - an env w/ low uncertainty, & hi stability 
 
  - tech that is routine, w/ low interdependence 
 
  - size that is small to medium 
 
  - goals that emphasize internal efficiency, & tech qual 
 
  - operational goals that emphasize functional goals 
 
  - planning & budgeting on a cost basis 
 
  - authority that is based on line authority which runs through the func mgrs 
 
 Link
Chart on Strengths & Weaknesses of Func Orgs   
  The chart on the strengths & weaknesses of  func orgs shows that functional orgs op best in a stable env, & are less effective in an unstable env   
  2.  GEOGRAPHICALLY ORGANIZED ORGS HAVE AN ORGL STRUCTURE THAT DIVIDES ITS OPS INTO GEOG REGIONS, EACH OF WHICH REPORTS TO ONE CEO 
 
  Geographic orgs have an orgl structure that divides its ops into geog regions, each of which reports to one CEO   
  Global geog structures have an orgl structure that divides its ops into world regions, each of which reports to one CEO   
  Global heterarchy structures have an orgl structure that divides its ops into world regions among different types of orgs w/ different (heterogamous) types of org structures, each of which may report to different CEOs, & because it is an amalgam of orgs, they often relate in more of a democratic than authoritarian manner   
Link
Chart on Strengths & Weaknesses of Geog Orgs   
  The chart on the strengths & weaknesses of geog orgs shows that they op best in a large, unstable env & are less effective in a small, stable env   
  3.  PRODUCT OR DIVISIONALIZED ORGS HAVE AN ORG STRUCTURE BASED ON WHAT IS PRODUCED OR SOME KIND OF DIVISION BASED ON FUNCTION, PRODUCT ETC.   
  Product/Division orgs have an orgl structure where divisions are made according to: 
- indiv products
- prod grps
- services
- major projects
- programs
- divisions
- businesses
- profit centers
 
  Characteristics of Product or Divisionalized Orgs include:   
  - an env w/ moderate to hi uncertainty that is changing   
  - tech that is non routine & has a hi interdependence among depts   
  - a large size   
  - goals that emphasize ext effectiveness, adaptation, & client satisfaction   
  - op goals w/ a prod line emphasis   
  - planning & budgeting around prod profit centers   
  - authority based on prod mgrs   
Link
Chart on Strengths & Weaknesses of Product or Divisional Orgs   
  The chart on the strengths & weaknesses of  product or divisionalized orgs shows that they op best in a complex env & are less effective in a simple env   
  4.  HYBRID ORGS EXHIBIT A STRUCTURE THAT COMBINES CHARACTERISTICS OF BOTH FUNCTION & GEOG ORGS   
  Characteristics of hybrid orgs include:   
  - an env w/ moderate to hi uncertainty & changing customers demands   
  - tech that is routine or non routine, w/ some interdependence among depts   
  - a large size   
  - goals that emphasize ext effectiveness & adaptation plus efficiency w/in some functions   
  - op goals that emphasize prod line emphasis, w/ some func emphasis   
  - planning & budgeting around profit center basis for division, & a cost basis for central functions   
  - authority based on prod mgrs & the coordination w/ func mgrs   
Link
Chart on Strengths & Weaknesses of Hybrid Orgs   
  The chart on the strengths & weaknesses of  hybrid orgs shows that they op best in complex envs when the org dev multiple prod lines   
  5.  MATRIX ORGS COMBINE STRUCTURES OF FUNCTIONAL & DIVISIONAL ORGS   
  Matrix orgs exhibit a strong form of horz linkage in which both product & functional structures (horz & vert) are implemented simultaneously   
  Matrix bosses are dept heads & program directors who have complete control over their subordinates   
  Project matrix orgs exhibit an orgl structure where project or prod mgr has primary responsibility, & functional mgrs simply assign tech personnel to projects & provide advisory expertise   
  Characteristics of Matrix Org include:   
  - an env w/ hi uncertainty   
  - tech that is non routine, w/ many interdependencies   
  - a moderate size w/ few prod lines   
  - dual goals: that are often based on prod innovation & tech specialization   
  - op goals: w/ a product & functional emphasis   
  - dual sys's of planning & budgeting: by function & prod lines   
  - joint authority btwn func & prod heads   
Link
Chart on the Strengths & Weaknesses of Matrix Orgs   
  The chart on the strengths & weaknesses of matrix orgs shows that they op best in orgs w/ complex envs & multiple prod lines that require a high degree of specialization   
  6.  DEMOCRATIC ORGS HAVE STRUCTURES THAT COMBINE THE REPRESENTATION, EXECUTIVE, & JUDICIAL FUNCTIONS   
  -  Democratic orgl structures have developed through a number of innovations that have primarily focused on representation   
  -  A heterarchy democratically combines a number of orgs in something more tightly linked than a network   
  -  Horizontal org   

 
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Chart on the Strengths & Weaknesses of Functional Orgs
External
Links
1.  Econ of scale w/in func depts 1.  Slow response to env changes  
2.  In depth skill dev 2.  Hierarchy overload; decisions pile on top   
3.  Excels @ func goals 3.  Poor horz coordination among depts   
4.  Best in small to med orgs 4.  Less innovation  
5.  Best w/ 1 or few prods 5.  Restricted view of org goals  
The chart on the strengths & weaknesses of  func orgs shows that functional orgs op best in a stable env, & are less effective in an unstable env  

 
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Chart on the Strengths & Weaknesses of Geographic Orgs
External
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Strengths Weaknesses  
1.  Rapid change in unstable env 1. Eliminates econ of scale in func depts  
2.  Hi local client satisfaction because local responsibility & contact pts are clear 2.  Poor coordination across regional lines  
3.  Hi coordination across func 3.  Weak in depth competence & tech specialization  
4.  Hi adaptation to differences in regions 4.  Weak integration & standardization across prod lines  
5.  Best in large orgs w/ several regions    
6.  Decentralizes dec making    
The chart on the strengths & weaknesses of geog orgs shows that they op best in a large, unstable env & are less effective in a small, stable env  

 
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Chart on the Strengths & Weaknesses of  Product or Divisionalized Orgs
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Strengths  Weaknesses   
1.  Rapid change in unstable env  1.  Eliminates econ of scale in func depts   
2.  Hi client satisfaction because prod responsibility & contact pts are clear  2.  Poor coordination across prod lines   
3.  Hi coordination across func 3.  Weak in depth competence & tech specialization   
4.  Hi adaptation to differences in products  4.  Weak integration & standardization across prod lines   
5.  Best in large orgs w/ several prods     
6. Decentralizes decision making     
The chart on the strengths & weaknesses of  product or divisionalized orgs shows that they op best in a complex env & are less effective in a simple env   

 
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Chart on the Strengths & Weaknesses of  Hybrid Orgs
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Strengths Weaknesses  
1.  Org achieves adaptability & coordination in prod & efficiency in func depts 1.  Potential for excessive mgt overhead  
2.  Better alignment btwn corp & div level goals 2.  Conflict btwn div & corp depts  
3,  Hi coordination w/in & btwn prod lines    
The chart on the strengths & weaknesses of  hybrid orgs shows that they op best in complex envs when the org dev multiple prod lines  

 
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Chart on the Strengths & Weaknesses of  Matrix Orgs
External
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Strengths Weaknesses  
1.  Hi coordination to meet dual demands from env 1.  Mgrs have dual authority; which is confusing to mgrs & wkrs  
2.  Flex sharing of human resources across prod lines 2.  Members need good interpersonal skills & extensive training  
3.  Suited to complex dec & unstable env 3.  Time consuming:  freq meetings & conflict resolution  
4.  Hi op for func & prod skill dev 4.  Members must understand org struc for it to wk;
Members must adopt collegial rather than vertical type relations
 
5.  Best in med size orgs w/ mult prods 5.  Must have dual pressures (prod & expertise) from env to maintain pwr bal in org  
The chart on the strengths & weaknesses of matrix orgs shows that they op best in orgs w/ complex envs & multiple prod lines that require a high degree of specialization  

 
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 Outline on Labor Markets
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  There are many types of  labor mkts including external, internal, & international  
  An external labor mkt is the supply of workers in the population at general who are not from w/in the org that is seeking workers  
  An internal labor mkt is the supply of wkrs from w/in the org that is seeking wkrs  
  The international labor mkt is a special type of the external labor mkt. that includes wkrs from outside of the nation in which the org is located  
  The supply of a labor mkt is determined by
 
  - the level of unemployment in general
 
  - the level of unemployment in a specific labor mkt
 
  - skills levels
 
  - educational levels
 
  - immigration levels
 
  - the price offered for labor in the form of wages & salaries
 
  Bureaucracies rely on rewards & inducements to control workers & one such methodology is to fill positions internally from w/in the org  
  Internal labor mkts are an important way in which bureaucracies motivate & control wkrs  
  Internal recruitment helps create the expectation of advancement, providing a source of motivation for employees  
  Internal recruitment reduces the costs of training new employees  
  Internal recruits are familiar w/ the orgs procedures, skills, & org culture  
  Wkrs enter an org at certain jobs that serve as entry ports  
  Access to higher jobs is mainly through job ladders which start at the entry points  
  The spread of internal labor mkts has increased job tenure among wkrs  
  Nearly 40% of men, 30 or older, have jobs they expect to hold for 20 or more yrs, though that number is declining  
  Nearly 15% of women, 30 or older, have jobs they expect to hold for 20 or more yrs (Osterman, 1984)  
  Unions strive to acquire monopoly power over the labor supply
 
  Unions are most attracted to firms that have power to influence the prices of its products because labor costs can then be transferred to consumers
 
  Unions are also interested in highly profitable business sectors because they can absorb the costs & reduce profits
 
  Contracting elasticizes the labor supply at the contracted rate ( assuming the wage premium is negotiated )
 
Link
The Figure on Monopsony Wage & Employment Decisions demonstrates that large, monopsonist employers, who are unionized will hire no more workers than necessary to maximize profits 
 
  Under these conditions, large producers will maximize profits where the marginal supply ( MS ) of labor equals the marginal revenue product ( MRP )  
  See Also:  Monopsonist:  a single purchaser  
  The MS of labor is the additional, marginal, cost associated w/ adding more labor to the labor capital mix
 
  Depending on the bargaining power of the union, it could negotiate a wage at any level up to the point where MS = MRP
 
  The Figure on Monopsony Wage & Unemployment Decisions demonstrates that wages (W v) will be higher & employment (E) lower in a unionized setting where the industry has only a few large employers (monopsonist) such as in heavy industry  

 
Top
 
Figure on Monopsony Wage & Unemployment Decisions

The Figure on Monopsony Wage & Unemployment Decisions demonstrates that large, monopsonist employers, who are unionized will hire no more workers than necessary to maximize profits 

 
Internal
Links

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 Outline on  Organizational Culture
External
Links
  Culture may be defined as the shared content of society & thus organizational culture is the shared content of an org
 
  The content of a society or org is it's shared knowledge, beliefs, values, & norms ( K B V N ) & the physical & abstract manifestations of that content
 
  Org culture is the shared knowledge, beliefs, values, & norms of an org
 
  Org culture is the interaction of the formal & informal structures of an org w/ the goals & objectives of the org leaders  
  Org culture is a special type of subculture that is unique to the network that includes & surrounds an org
 
  An org culture includes all of an org's stakeholders or constituencies including customers, suppliers, govt regulators, families, similar orgs, etc. 
 
  All orgs have an org culture which is based on the social relationships, as orders by the formal org structure, that emerge among the people who work in or w/ the org
 
  Lauer & Handel, 1983, found that all orgs have an org culture, a negotiated order  
  W/in an org, there are frequently org subcultures among the different org constituencies, such as employees in a dept, employees at a particular level of the org such as blue-collar workers, middle mgt, & upper mgt
 
  An example of a slice of an org culture is where two workers in an engineering firm may become friends & help each other w/ their work which a third worker may be excluded from this friendship & thus not have help w/ her/his work
 
  Org culture has a impact on how the bureaucracy of the org actually operates, in contrast to how it operates "on paper"
 
  Org culture & the groups w/in an org, each of which who may possess it's own org subculture, often called a workplace culture
 
  Org culture & workplace culture may facilitate or hinder the attainment of stated org goals
 
  The org, w/ it's org culture & workplace culture may even develop their own goals, which may be inferior or superior to the org's stated goals, depending on one's perspective
 
  Org & workplace cultures are sometimes known as the org's "negotiated order" in recognition of their emergence from the ongoing informal negotiations among different members of the org (Fine, 1984, Ouchi, & Wilkins, 1985, Miller, 1991)
 
  Scott, 1992, holds that regarldless of the formal structure, people ultimately make the org
 
  The negotiated order is the aggregation of the org's members needs, objectives, & experiences of others in the org
 
  People in orgs push to get what they want, try things out, test the limits of the rules
 
  Anselm Strauss, et al, 1964, found that the nature of the hospital they studied at any given time was the outcome of pressures, actions, & reactions of the people who made up the org
 
  The doctors, attendants, nurses, administrators, patients, & others each has their own objectives, understandings or reality, and ideas about mental illness, which governed his or her behavior & relationships to others  
  Compromises, "looking the other way" & "agreements to disagree" were abundant in the hospital & were always subject to change as the situation changed or as new people entered the org  
  Strauss held that the hospital on one day is not the same as the hospital at a later time even though the formal structure stayed the same  
  Org culture is unique to each org & cannot be understood by examining the org's formal structure (Fine, 1984, Ouchi, & Wilkins, 1985)  
  As w/ any culture, new members must be socialized into the org culture & new employees who do not become socialized or accept the org culture experience conflict  
  The grapevine is the informal communication structure of the org culture  
  The national culture of a nation impacts the org & it's org culture  

 
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 Outline on the  Dysfunctions of Bureaucracy
External
Links
  -  Supplement: President Dwight D. Eisenhower:  Farewell Radio & Television Address to the American People.       January 17, 1961 
Link
 Link
-  Video:  Why We Fight:  Now:  David Brancaccio analyzes the reasons we fight.         February, 2006       13:48 & 9:12 
Link
  -  Project:  Video: Why We Fight:  The Dysfuncions of Bureaucracy 
Link
  WHILE BUREAUCRACY IS A NEUTRAL TOOL, & ONE OF THE MOST POWERFUL INSTITUTIONS, & ONE OF THE MOST PERVASIVE INSTITUTIONS TODAY, IT DOES HAVE MANY WEAKNESSES / DYSFUNCTIONS   
  Bureaucracy is a neutral human tool 
Bureaucracy's positive features include its unsurpassed efficiency 
Bureaucracy's negative features include its capacity for inefficiency & error 
 
  There are TWELVE dysfunctions of bureaucracy: 
1.  Decision Avoidance 
2.  Ritualism 
3.  Trained Incapacity 
4.  Self perpetuation & Goal Displacement 
5.  Tendency to Expand 
6.  Alienation of workers 
7.  Groupthink 
8.  Group Polarization 
9.  Oligarchy 
10.  Red Tape 
11.  Systems Failures / Catastrophe 
12.  Rationalization 
 
Link
See Also:  The Chart of Bureaucratic Dysfunctions   
  The Chart on Bureaucratic Dysfunctions demonstrates that bureaucracies have a wide range of serious weaknesses that may result in inefficiency, domination, or riskiness   
 
1.  DECISION AVOIDANCE OCCURS WHEN PEOPLE IN ORGS ONLY MAKE ROUTINE DECISIONS WHERE THEY MIGHT BENEFIT & NOT BE PUNISHED 
 
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Decision avoidance is usually practiced by lower or mid level people in an org because they do not have the expertise to make the decision 
 
  Decision avoidance is practiced by lower or mid level people in an org because they do not wish to take responsibility for the decision   
  Decision avoidance is often practiced when lower or mid level people in an org perceive little reward & / or a high risk   
 
2.  RITUALISM IS THE PROCESS OF PLACING THE PROCEDURES OF THE ORG AHEAD OF THE PURPOSES FOR WHICH THE PROCEDURES WERE DESIGNED 
 
  Merton coined the term bureaucratic ritualism to describe a preoccupation w/ rules & regulations to the point of thwarting an org's goals   
  Ritualism is following all the rules all the time   
  Research has shown that very few workers in organizations develop ritualistic behaviors   
  Parkinson's Laws, which are tongue in cheek business admonitions, are often based on the concept of  ritualism   
  According to Parkinson's Law work expands to fill the time available   
  Robert Merton developed the concept of the bureaucratic personality, which essentially means rule follower 
 
  William Whyte developed the concept of the organization man, which essentially means rule follower 
 
 
3.  TRAINED INCAPACITY OCCURS WHEN PEOPLE HAVE A NARROW RANGE OF TRAINING SO THEY CANNOT DEAL W/ ANY ISSUES OUTSIDE OF THEIR PURVIEW 
 
  Trained incapacity is the organizational dysfunction whereby because people are trained in extremely narrow fields, they cannot respond to unfamiliar situations 
 
  Trained incapacity is the failure to adapt to new conditions   
  Trained incapacity often occurs when people in bureaucracies are faced with an unfamiliar situation, they try to fit the situation into an area for which they do have guidelines   
  In 1921, Veblin found that people may be well trained, but they are usually not taught to handle unfamiliar situations 
 
  People in bureaucracies try to force the situation fit one within the guidelines 
 
  Individuals in orgs do not make bold or innovative decisions, because it implicitly challenges "the way we do things" 
 
  Trained incapacity means people in orgs are socialized to try to fit decisions into the old patterns, or are taught to kick them upstairs 
 
  People in bureaucracies do not adapt well to change 
 
  Note:  A liberal arts education combats the dysfunction of trained incapacity because it is designed to create independent thinkers 
 
 
See Also:  Hurricane Andrew   
 
See Also:  USS Vincennes   
 
4.  SELF PERPETUATION & GOAL DISPLACEMENT OCCURS WHEN ORGS CHOOSE SURVIVAL OVER ALL OTHER GOALS, & DISPLACE THEIR ORIGINAL GOALS FOR ANY GOALS THAT WILL HELP THEM SURVIVE 
 
  The organizational dysfunction of self perpetuation & goal displacement denotes that frequently the overriding org focus becomes survival at all costs  
 
Goal displacement occurs when the original goals of the organization are subverted and the primary goal quickly becomes preservation of the organization
 
 
Examples:  The US Calvary;  WTU & the YWCA
 
 
5.  THE TENDENCY TO EXPAND OCCURS WHEN ORGS PURSUE EXPANSION OVER EFFICIENCY OR NEED 
 
  The orgl dysfunction of the tendency to expand is the orgl dysfunction whereby the org puts the goal of expansion ahead of its original purpose  
 
Bureaucrats frequently are not rewarded directly on outputs or profits, but on such bureaucratic indicators as the number of people managed, the size of the budget, etc.
 
 
Because prestige for administrators is often determined by the number of people supervised, a common administrative goal is to gain more workers
 
  Bureaucratic inertia refers to the tendency of  bureaucratic orgs to perpetuate themselves  
 
Parkinson's Law:  Example: Computers do not save time, $  
 
6.  THE ALIENATION OF WORKERS OCCURS WHEN THE WORKERS ARE NOT CONNECTED TO THE ORG IN ANY SENSE EXCEPT A MONETARY SENSE 
 
 
As defined by Karl Marx, alienation is the separation or isolation of workers from the products of their labor, or more broadly, the feelings or experience of isolation, powerlessness, or loss of control
 
 
Marx found that alienation is the result of separating the worker from the process of the work (control) the product the surplus other workers
 
  Weber was also keenly aware of bureaucracy's potential to dehumanize the people it is supposed to serve  
 
Alienated workers are unmotivated
 
 
Alienated workers become separated from their "humanity"
 
 
For Marx, bureaucracy only meets the needs of the rich and powerful
 
 
See Also:  Alienation  
 
7.  GROUPTHINK OCCURS WHEN PEOPLE CHOOSE, W/O CRITICAL THOUGHT, TO TAKE THE GROUP'S POSITION DESPITE MISGIVINGS 
 
 
The organizational dysfunction of groupthink is the process whereby a group collectively arrives at a decision that individual members privately oppose but do not challenge
 
 
Groupthink is the result of over conformity & cohesion
 
 
Groupthink happens in small, cohesive groups w/ powerful leaders
 
 
Under conditions of groupthink, people with different opinions do not want to break cohesion or challenge a leader 
 
 
Examples: 
 
  Lyndon Johnson's Vietnam Policy  
 
See Also:  Bay of Pigs invasion  
 
Counter Example:  Cuban Missile Crisis
 
 
See Also:  Space Shuttle Challenger explosion  
 
8.  GROUP POLARIZATION OCCURS WHEN MEMBERS OF AN ORG MOVE TO EXTREME POSITIONS RATHER THAN MOVING TOWARD COMPROMISE 
 
  The organizational dysfunction of group polarization occurs because groups tend to make decisions that are extreme, rather than the middle or compromise decisions  
  Group polarization is the process in which a group moves toward a stronger position or more extreme course of action than its members individually favor  
  Group polarization may be though of as the orgl  "Digression from the Mean"  
  One type of group polarization is the risky shift  
  The effects of group polarization were first discovered in the form of the risky shift   
  The type of group polarization called the risky shift occurs when groups make decisions that are more unsafe or extreme than those that members would make individually   
  Examples:  young men on a night out;  lower level employees in high reliability organizations:  firefighters, etc.   
  One type of group polarization is the cautious shift   
  The type of group polarization called the cautious shift occurs when groups make decisions that are more conservative than those that members would make individually   
  Examples:  The Bureaucratic Personality, The Organization Man   
  9.  OLIGARCHY OCCURS WHEN AN ORG IS RUN / MANAGED BY A FEW PEOPLE WHO HAVE CONCENTRATED POWER   
  The organizational dysfunction of oligarchy occurs when power becomes concentrated in the hands of a few people   
  See Also:  Michels' Iron Law of Oligarchy   
  10.  RED TAPE IS THE COMMON USAGE NAME FOR THE INTRICATE PROCEDURES / FORMS THAT MUST BE FOLLOWED IN MANY ORGS   
  The organizational dysfunction of red tape occurs because orgl decisions are much slower than individual decisions  
 
Org decisions may take months, even years or decades
 
 
Many times decision are purposely buried in red tape so that an unpopular or dangerous decision does not have to be made
 
 
Thus some red tape is really decision avoidance
 
 
Criticism of the govt response to the hurricane disaster of 2005 pointed to the problem of bureaucratic inefficiency
 
 
The failure of a formal organization to carry out it's work as illustrated by the response to Hurricane Katrina is a familiar problem, & illustrated in the concept of red tape
 
 
11.  SYSTEM FAILURES / CATASTROPHES OCCURS AS A RESULT OF "SWISS CHEESE" ERRORS & CASCADING ERRORS 
 
  Swiss cheese errors occur when several factors line up to magnify a problem such as when a pilot is tired, turns over duties to a co-pilot, who does not have experience w/ in a particular location, & thus makes an error (Exxon Valdez, 1989)  
  In a Swiss cheese error, several weaknesses in the system 'line up' to create the error; any one of them could probably be overcome   
  Cascading errors occur when one error leads to a worse error, which leads to a worse error, etc. as when wkrs make a mistake in the test run of a power plant which causes overheating, when they attempt to cool the plant, it causes a small explosion, when they attempt to deal w/ the fire, they blow the electrical system, etc.  (Chernobyl, 1986)   
  In a cascading error, w/o the first error in the chain of events, it is unlikely the other errors would have occurred   
 
The orgl dysfunction of system failures /catastrophes occurs because complex orgs create complex disasters 
 
 
Modern major disasters always have a strong orgl component 
 
 
Systems failures occur because of cascading errors and trained incapacity 
 
 
Perrow has come to call systems failures "normal accidents" because modern people have come to accept that complex systems will fail 
 
 
See Also: Perrow's Normal Accidents 
 
  See Also: The Organizational Component of   9 - 11   
  12.  RATIONALIZATION CAN COME TO DOMINATE AN ORG'S DECISIONS ESCHEWING ALL OTHER FACTORS, SUCH AS THE HUMAN OR ENVL COSTS   
  The organizational dysfunction of rationalization occurs because logic is only one way of knowing, and when it displaces other ways of knowing the organization experiences the weaknesses & threats associated which a loss of knowledge / understanding   
  Weber held that through rationalization, bureaucracies are specifically designed to address the problems inherent in charismatic & traditionally based orgs, however, this destroys humanity, "enchantment"   
  Weber described bureaucracy as an iron cage   
  Examples of the rationalization of orgs displacing other ways of operating can be seen when: 
-  chain stores have a difficult time giving personal service 
-  large universities cannot offer individual attention to students 
-  the Bank of America cannot take character into account for a loan 
-  modern doctors in HMOs do not know their patients 
 
  See Also: Weber on the Disenchantment of the World   
  See Also: Post Modernism   

 
Top  
The Chart of Bureaucratic Dysfunctions 
Type of Dysfunction
Description
  1.  Decision Avoidance   Only make routine decisions
  2.  Ritualism: The Bureaucratic Personality   Only follow the rules
  3.  Trained Incapacity   Trained in extremely narrow field
  4.  Self Perpetuation & Goal Displacement   Overriding org focus = survival @ all costs
  5.  Tendency to Expand   Org puts expansion goal ahead of original purpose
  6.  Alienation of Workers   Wkrs not connected to org;
  Wkrs separated from their "humanity"
  7.  Groupthink   Over conformity & cohesion
  8.  Group Polarization   Digression from the mean
  9.  Oligarchy   Power becomes concentrated
  10.  Red Tape   Too many rules to follow, stifling action
  11.  System Failure / Catastrophe   Complex orgs = complex disasters
  12.  Rationalization   Planning at the expense of intuitive action may lead to alienation
The Chart on Bureaucratic Dysfunctions demonstrates that bureaucracies have a wide range of serious weaknesses that may result in inefficiency, domination, or riskiness

 
Internal
Links

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 Outline on  Market Concentration
External
Links
  -  Project:  Video: Walmart:  The High Cost of Low Prices:  Segment 1:  Walmart Out Competes Main Street
Link
  -  Video: Walmart:  The High Cost of Low Prices:  Segment 1:  Walmart out competes main street          15:05 minutes
Link
  Large bureaucracies centralize control in a large managerial structure & contribute to the centralization of control among enterprises  
  As firms have grown larger, a greater share of econ activity is controlled by top mgrs of a few large firms  
  In the 1920s & the 1930s the concentration of the econ occurred through the growth of multidivisional firms (Chandler, 1977)  
  In multidivisional firms the central office coordinates the activities of a number op operating division or product lines through allocating funds, personnel & other resources  
  GE operated seven major divisions:  research, services & materials, power plants, industrial products, consumer products, natural resources & aircraft engines  
  A concentrated econ is one in which the number of producers of any given product is small because a very few producers control almost all the market for any given product
 
  In a concentrated economy there is little or no competition
 
  An unconcentrated econ, i.e., a dispersed economy, is one in which there are many producers
 
  Pure capitalism is, by definition, an unconcentrated econ
 
  Market concentration is caused by the inevitable evolution from pure capitalism to monopoly capitalism as the result of profit maximization which induces enterprises to grow ever larger, & absorb smaller inefficient producers  
  A concentrated mkt is dominated by very big business in the form of monopolies, oligopolies, conglomerates, monopsonies, & other forms of large enterprises  
Link
See Table:  Concentration in the American Economy
 
  An analysis of the Table on the Concentration in the American Economy shows that while the general trend of the economy is toward greater concentration, some industries become less concentrated due to international competition, radical changes in the industry that creates a niche for new producers, & because govt. regulation breaks up concentrated enterprises
 
  The effects of mkt concentration include a. inefficiency,  b. the concentration of political power,  c. predatory price cutting,  d. inequality in society,  &  e. vulnerability to foreign competition
 
  a.  One of the effects of mkt concentration is the inefficiency that results from the lack of competition
 
  Inefficiency from lack of competition from mkt concentration includes poor productivity, low quality products, overpricing, & failure to respond to changes in demand
 
  Under pure cap, the inefficiencies from lack of competition from mkt concentration are weeded out because stronger enterprises out compete inefficient enterprises, but under monopoly cap, other enterprises do not exist, thus allowing inefficiencies to continue 
 
  See Also:  The Auto Industry  
  b.  One of the effects of market concentration is that market concentration also concentrates political power
 
  The political power of monopolies, oligopolies, & conglomerates is exercised through lobbying, PAC contributions, & policy institutes, etc.
 
  Large firms use the local need for jobs to create policy favorable to the firm
 
  Larger firms encourage several localities to compete for their factory
 
  Enterprises attempt to extract subsidies from local govts. in the form of property tax abatements, public services, road construction, & sometimes even land
 
 
Many states allow the use of property tax abatement as an inducement to plant construction & Wolkoff, 1983, found that most of the time, the maximum legal abatement is routinely given  
 
Wise county & LENOWISECO routinely give tax abatements, public services, road construction, land, buildings, & more to induce enterprises to come to or stay in the area  
  c.  One of the effects of mkt concentration is that mkt concentration leads to power in the mkt place that can be used to eliminate potential sources of future competition  
  Predatory price cutting occurs when a producer sells at a lower price & subsidizes that lower price w/ profits from another part of the org in a different area, that usually engages in price gouging because of lack of competition  
  Monopolistic, oligopolistic, conglomerates keep new competitors out by temporarily cutting their prices below that of the new producer, often by using money earned in one activity to temporarily subsidize another  
  d.  One of the effects of mkt concentration is that market concentration contributes to inequality in society  
  Inequality is exasperated by placing great wealth & power in the hands of a few people  
  Depending on govt. regulation, competition for labor, labor mgt. relations, workplace culture, & other factors, market concentration can lead to higher wages because it eliminates the competition that creates pressures to keep wages low  
  In the 1800s, when the US economy was transitioning from pure capitalism to monopoly capitalism, there was intense competition, no govt. regulation, a workplace culture that justified worker exploitation, and wages were often below the subsistence level  
  Producers were forced to demand the lowest possible wages because all other producers were demanding the lowest possible wages  
  An effect of low wages was that few people had enough money to buy the products that were produced, causing business cycles of boom & bust  
  As pure capitalism transitioned to monopoly cap, market concentration eliminated the incentive to pay low wages by reducing the incentive to cut prices  
  Monopolies, oligopolies & conglomerates involve little or no price competition  
  While mkt concentration may reduce pressure to cut wages, it can still lead to inequality through the accrual of profits to only a few owners of capital, i.e., the elite & corporate classes  
  Producers in a concentrated mkt have no price competition & may therefore raise prices more than enough to cover the costs of the higher wages they may pay, so profit margins increase under the market concentration of monopoly capitalism  
  See Also:  The Airline Industry  
  e.  One of the effects of mkt concentration is that producers become highly vulnerable to international competition  
  Because they are not forced to remain efficient because of a lack of competition, enterprises pay high wages, have inefficient mgt., have inefficient strategies, etc.   
  Under monopoly cap, lack of efficiency leaves enterprises vulnerable when efficient foreign competitors enter the mkt  
  Typically the workers suffer more than their mgrs. when foreign competition threatens  
  In the auto industry executive salaries soared in the 1980s & 90s even as workers were laid off, & other workers experienced the new phenomenon of "give backs"  
  The multinational corporation is the most common form of org under concentrated corporate cap, i.e. under the market concentration of monopoly cap  

 
Top
 
Table:   Concentration in the American Economy
Far0511
 
Number of Firms in Industry
Domestic Market Share of 4 Largest Producers
Industry
1982
1992
1997
1982
1992
1997
Breakfast cereal
32
42
48
86 %
85 %
83 %
Pet food
222
102
129
52
58
58
Cookies & crackers
296
374
322
59
56
60
Chocolate producers
77
146
152
75
75
80
Beer
67
160
494
77
90
90
Soap & detergents
642
635
738
60
63
66
Tires
108
104
110
66
70
72
Guns (small arms)
138
177
189
51
43
42
Household cooking equip.
71
80
77
52
60
58
Home refrigerators & freezers
39
52
21
94
82
82
Home laundry equip.
15
10
10
91
94
90
Home vacuum cleaners
29
35
25
79
59
68
Electric lamps
113
76
54
91
86
90
Radio & TV equip. (1982) *
432
   
49
   
Records & tapes (1982)
548
   
61
   
Audio-visual equip. (1992/97)  
391
521
 
39
52
Telephones
259
479
548
76
51
54
Motor vehicles
284
398
325
92
84
82
Aircraft
139
151
172
64
79
85
Motorcycles & bicycles
269
244
373
59
65
68
Watchers & clocks
227
179
145
51
40
52
Burial caskets
270
195
161
52
64
80
An analysis of the Table on the Concentration in the American Economy  shows that while the general trend of the economy is toward greater concentration, some industries become less concentrated due to international competition, radical changes in the industry that creates a niche for new producers, & because govt. regulation breaks up concentrated enterprises
Out of 22 industries, 13 added more producers; 6 industries lost producers
Out of 22 industries, 11 industries became more concentrated, 8 industries became less concentrated
Out of 22 industries, 20 of them had over half of all production done by just 4 producers, & 9 of the industries had 80% or more of production produced by just 4 producers
Source:  In Farley, Intro to Soci, 2003, 5th ed.  Concentration data for 1982 are from the Census, 1986c, Table 5; Data for 1992 are from the Census, 1996i.  Data for 1997 are from the 2001 Census

 
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 Outline on the   Key Interest Groups by Domhoff
External
Links
  -  Project:  Key Interest Groups 
Link
  -  Project:  Key Interest Groups in the Envl Debate 
Link
  THE KEY INTEREST GROUPS INCLUDE CORPORATIONS, SMALL BUSINESSES, & LABOR / LIBERALS  
  According to Domhoff, 1983, there are three main interest groups trying to influence policy at the national level:   the corporate coalition, the small business coalition, & the labor / liberal coalition
 
  In 1990, there were more than 6,800 congressional lobbying groups in the US, however most of them tend to represent certain groups of interests, such as Domhoff three key interest groups
 
  In 2005, there were more than 14,000 registered lobbying groups in Washington, DC, averaging just over two employees each for a total over 30,000 lobbyists (many lobbying firms are small)  
  In 2005, there were approximately 30,000 members of Congress & staff members, making the ratio of lobbyists to officials on the Hill nearly 1 to 1  
  In the early 90s the total value of earmarks added to bills was under $100 mm, while in 2005 the value was over $32 bb  
  A.  THE CORPORATE COALITION INCLUDES THE LARGEST CORPS IN THE WORLD, MANY HAVING MORE ECON POWER THAN THE MAJORITY OF NATIONS   
  The corporate coalition include multinational corporations from around the world
 
  Also included in the corporate coalition group are policy foundations & research institutes that do not call themselves lobbyists, but claim to operate on the behalf of "good govt" or the "national interest"
 
  Examples of conservative policy foundations include the Ford, Rockefeller, & Carnegie Foundations, the Committee for Economic Development (CED), the Council on Foreign Relations (CFR), the Trilateral Commission, & the Business Roundtable
 
  Conservative policy foundations lobby for policies that promote free trade & polices that allow multinationals to operate in the world economy w/ minimum restrictions
 
  The North American Free Trade Act (NAFTA), the General Agreement on Trade & Tariffs (GATT), the US govt's support for the Maquiladores program are examples of the efforts of the policy institutes allied w/ the multinational corporations
 
  B.  THE SMALL BUSINESS COALITION INCLUDES ALL SMALL BUSINESSES, WHICH MAY BE WORTH MILLIONS OF DOLLARS, INCLUDING MANY PROFL ORGS   
  The small business coalition includes the Chamber of Commerce & national orgs of professions that operate as small businesses such as the American Medical Association (AMA), the American Dental Association (ADA), & the Farm Bureau
 
  The small business coalition is more conservative that the corporate coalition
 
  The small business coalition concentrates on opposition to govt regs of business
 
  The small business coalition is less involved in foundations & research institutes than corporate coalition
 
  The small business coalition does support the American Enterprise Institute & the Hoover Institute
 
  C.  THE LABOR / LIBERAL COALITION INCLUDES ORGANIZED LABOR AS WELL AS OTHER SOC MVMTS SUCH AS THE CIVIL RIGHTS MVMT, WOMEN'S MVMT, ENVL MVMT, & MORE   
  The labor / liberal coalition is a loose coalition & is the most diverse, & thus the most divided of the coalitions
 
  The labor / liberal coalition includes organized labor, feminists, the civil rights movement, the envl mvmt, et al
 
  Specific orgs w/in the labor / liberal coalition include the AFL CIO, the National Association for the Advancement of Colored People (NAACP), the Urban League, the National Association for Women (NOW), the National Education Association (NEA), the Sierra Club, Greenpeace, the Ralph Nader based orgs, et al
 
  Domhoff developed an analysis of the key interest groups that shows that, indeed, contrary to what pluralists believe, one group controls the govt, benefits from govt policy, & wins controversial issues  
  See Also:  A Comparison of Pluralist Theory & Power Elite Theory by Farley  

 
Internal
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 Outline on  Power Elite Theory
by C. Wright Mills
External
Links
  Power elite theory has been formulated by C. Wright Mills & William Domhoff
 
 
Power elite theory is similar to pluralist theory, except that while pluralists hold that "the balance of interests" is intact, the power elite theorists hold that the balance of interests have failed
 
  The power elite:
 
  - are a small, very wealthy group
 
  - foster a society where office holders have only the appearance of power; i.e., they are puppets
 
  - exercise real power & decision making behind the scenes
 
  - influence political leaders by foundations & public policy institutes which they fund  
  - struggle among themselves in what are often similar to "palace intrigues"
 
  - in terms of class, are made up of the active, influential, powerful, members of the upper class & the corp. mgrs.  
  Power is gained:
 
  - almost exclusively via corporate wealth
 
  - via interlocking directorates, which are overlapping positions of power on corporate boards
 
  - though the concentration of wealth via state capitalism
 
  - via overlapping positions of power in govt, including the executive branch, the civil service, and the military  
  - by controlling the rules and regulations of state capitalism
 
  - by keeping other classes pluralistic, i.e. fragmented
 
  The power elite are largely the result of "cultural lag" and are fundamentally anti democratic and anti equalitarian
 
  The group dynamics of the power elite demonstrates domination by a small leadership group
 
 
The control exercised by a small elite is not so much the characteristic of organization, but rather the result of a great concentration of wealth, which leads to a concentration of power
 
  Control of corporations by the ruling elite rests on the ownership of large blocks of stock  
  P-E theory notes that the richest 1% of the US population owns over 50% of the stock (Gilbert & Kahl, 1982)  
  P-E theory notes that the richest 1% also owns over 28% of total wealth (Census, 1993e)  
  The ruling elite is a virtually closed social group w/ tremendous power  
  For Domhoff & P-E theory, the ruling elite attend exclusive preparatory schools, colleges, clubs & resorts, & intermarry largely w/ other members of the ruling class (Domhoff, 1983)  
  For Braun & P-E theory, While there are exceptional self made tycoons whose lives parallel the famous rags to riches novels by Horatio Alger, in reality, the heads of the largest corporations are almost exclusively born into their class position (Braun, 1991, 1997)  

 
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 Outline on  Externalities or Spillovers
External
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An Externality, aka a Spillover, is a benefits or cost associated w/ the consumption or production of a good or service which is obtained by or inflicted w/out compensation on a party other than the buyer (user) or seller (producer) of the good or service 
 
  Externalities are Costs or Benefits that are not included in the cost or price structure of the mkt  
 
An External Benefit, aka a Spillover Benefit, is the benefit obtained neither by producers nor by consumers of a production but w/out compensation by a 3rd party, including society as a whole
 
 
An External Cost, aka a Spillover Cost, is the cost of producing a product borne neither by producers nor by consumers of the product buy w/out compensation by a 3rd party, including society as a whole
 
  Externalities or Spillovers are mkt relationships which produce the "wrong" amounts of certain goods & services  
 
Examples of Spillover Benefits include the benefits to a community or a small business when a new major plant locates in a county & the benefit I receive when you are vaccinated
 
 
Examples of Spillover Costs include the costs to a community or a small business when a major plant closes, & the cost I incur when you are not vaccinated
 
Link
The Table on Externalities shows that externalities are common & gives examples of spillover benefits & costs  
 
FOUR major areas of externalization or spillovers include the medical field, the environment, property rights, & econ development (or lack of)
 
  In the medical field, the medical costs of cigarettes are borne by the general public & not just the mfrs & users; therefore, the costs of cigarettes spillover onto everyone, even non-smokers; & since mfrs do not pay these costs they escape costs that they do not have to pay for  
  In the environment, the costs pollution of pollution are borne by the general public & not just by the mfrs & the users of the products; therefore, the costs of pollution spillover onto everyone, even people who do not use the products that are produced by polluting factories or by the polluting products; & since mfrs do not pay for the costs of pollution, they escape costs that they do not have to pay for  
  In the area of property rights, the costs of unsafe products may be borne by everyone  
 
In the area of econ development, plant closings are encourage by the fact that large firms pay only part of the total costs entailed in moving from location to location
 
  Plant closings & relocations are externalized in that the firms pay only part of the cost while the workers & the general public experiences many of the costs  
 
Many costs involved in plant closings are externalized & are paid by taxpayers or by individuals, especially the former employees
 
 
Externalized costs in plant closings include tax write offs negotiated btwn the firm & the new localities in which they relocate, accelerated depreciation allowances, & utility discounts
 
 
From 1996 to 2000 61% of US corps in Am paid no corp taxes & 71% of alien corps in Am paid no corp taxes, & the rate of no tax payment is increasing
 
 
Costs which are externalized to a state or local econ reduce local tax revenues
 
 
The costs of attracting mfrs means that other taxes such as personal property taxes or sales taxes must be increased
 
  The increased taxes to pay for business subsidies create additional difficulties for communities that are trying to attract skilled labor & professional workers who are discouraged from moving to an area w/ high taxes   
  The costs of attracting mfrs reduces local revenues & then local services must be curtailed  
 
The increased taxes to pay for business subsidies create additional difficulties for communities that are trying to attract skilled labor & professional workers who are discouraged from moving to an area w/ poor services such as parks, police, ed, etc.
 
 
From the firms' standpoint, the pitting of one community or region against another to attract them to their community offers advantages
 
 
In order to attract jobs, firms induce communities to offer concessions such as lower taxes, pollution standards, & other regs, & demanding subsidies, tax holidays, free infrastructure such as water, sewer, internet, roads, etc.
 
 
Regions such as Lenowiseco have built industrial parks, offered tax breaks, low cost worker training programs, free space in buildings, tax holidays, free infrastructure, & more, all in "behind closed doors" negotiations
 
 
Offers by regions to attract a firm may be rational to the firms & the communities but they are irrational for the industry & the nation as a whole
 
  If all businesses in an industry are receiving subsidies, then no business receives any benefits over other businesses because they all cancel each other out  
  When all businesses in an industry receive subsidies, it is like both teams in a game receiving the same amount of extra points  
 
If all regions in a nation are offering subsidies, then no regions receive any benefits over other regions because they all cancel each other out
 
 
The costs of attracting businesses include the costs that regions losing the businesses must pay including moving families, shutting down schools, rebuilding schools in new locations, building new streets, etc.   
 
Federal tax codes allow much of the value of physical plant & equipment of closed factories to be counted as depreciation against income from new plants  
  The loss of jobs & the loss of social safety nets because of plant closings contribute to increased problems of poverty, homelessness, & marginality   

 
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Table on Externalities
Spillover Benefits Spillover Costs  
are the benefit obtained neither by producers nor by consumers of a private product but, without compensation, by a third party (society as a whole) are the cost or the producing of a private product borne neither by producers nor by consumers of the product but without compensation by a third party (society as a whole)  
are under produced in a free mkt system are over-produced in a free mkt system  
Examples
vaccines
TB x rays
education
roads
infrastructure
clean air, water, etc.
environmental preservation
Examples
smoking
obesity
unsafe products

pollution
environmental destruction

econ development subsidies
 

 
The Table on Externalities shows that externalities are common & gives examples of spillover benefits & costs

 
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 Outline on  Douglas McGregor   1906  -  1964
External
Links
Link
-  Biography & Major Works  
  Summary
Theory X 
     1.  workers dislike work
     2.  workers will avoid work
     3.  workers need to be forced/coerced to work
Theory Z
     1.  workers like work
     2.  workers seek/need work
     3.  workers are inherently rewarded by work
 
 
McGregor advocated that orgs go 'Out w/ the old Human Relations School & in w/ the new Human Relations School'  
  In his book, The Human Side of Enterprise, 1960, McGregor identified an approach of creating an env w/in which wkrs are motivated via either Theory X or Theory Y  
  Under Theory X, wkrs are motivated by authoritative, direction & control  
  Under Theory Y, wkrs are under by self control  
  McGregor was a proponent of Theory Y  
  For McGregor, Theory Y is the practical application of Dr. Abraham Maslow's Humanistic School of Psychology, or Third Force psychology, applied to scientific mgt  
  See Also:  Maslow  
  McGregor held that most orgs functioned according to Human Relations developed prior to industrialization & orgs today needed a new set of Human Relations  
  McGregor called the old school of Human Relations Theory X  
  A Principle of Theory X is that:  
  - the individual dislikes work and seek to avoid it  
  - because individuals dislike work, they must be forced into work  
  - the average person prefers to be directed, avoid responsibility & has no ambition  
  - the average person wants security above all  
  McGregor called the new school of Human Relations Theory Y  
  A Principle of Theory Y is that:  
  - people do not dislike work  
  - work is as natural [as needed] as is play or rest  
  - control is not the only method to achieve org goals  
  - the best rewards are those which assist person in personal development  
  For McGregor, while it may have been true that Theory X worked well in its historical period, today Theory Y is a necessity for increasing job satisfaction  

 
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Douglas McGregor

1906  -  1964

McGregor was a mgt prof at the MIT Sloan School of Mgt whose 1960 book The Human Side of Enterprise had a profound influence on mgt practices.  He earned an A.B. from Wayne State Un in 1932, then earned an M.A. & Ph.D. in psych from Harvard Un in 1933 & 1935 respectively. 

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Major Works of McGregor

Much of the thinking in the human relations school is contained in The Human Side of Enterprise, Douglas McGregor, 1960. 


 
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 Outline on  Ouchi 1943  -
Theory Z
External
Links
Link
-  Biography & Major Works 
 
  INTRO:  EARLY THEORIES OF WKPLACE MGT SAW THE WKR AS A PASSIVE VESSEL TO BE TRAINED BUT THEORY Z DEVELOPED THE IDEA OF THE 'PARTICIPATIVE WKPLACE,' WHICH SEES WKRS AS CAPABLE OF DEVELOPING THE WKPLACE THEMSELVES, & AS WANTING TO DEVELOP   
 
HRM theories earlier than Theory Z still see the wkr as passive 
    ( McGregor's Theory Y, etc. ) 
Ouchi's Theory Z holds that 
a. productivity is embedded / controlled by wkrs 
b. wk teams should control operations, as opposed to supervisors controlling operations 
 
  Ouchi highlights differences btwn formal orgs in Japan & in the US, including hiring & advancement, lifetime security, holistic involvement, broad based training, & collective decision making   
 
THEORY Z HOLDS THAT WKRS & THE WKPLACE WILL DEVELOP IF WKRS ARE GIVEN THE FREEDOM & OPPORTUNITY TO DEVELOP THEMSELVES & THE COMMUNITY OF THE WKPLACE 
 
  Theory Z is touted as a response to Theory X, which stated that workers inherently dislike and avoid work and must be driven to it   
  Theory Z is touted as a response to Theory Y which stated that work is natural and can be a source of satisfaction when aimed at higher order human psychological needs   
  Theory Z focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the well being of the employee, both on and off the job   
  Theory Z is the name applied to the so called "Japanese mgt" style popularized during the Asian economic boom of the 1980s   
  The Table Comparing American & Japanese Orgl Structures demonstrates that Japanese firms possess qualities of Theory Z, i.e. a participative orgl structure   
  W/ regard to supervisory practices, the Japanese approach takes the whole person into acct, including the concern w/ family members   
  Even Japanese firms in the US resembled the Japanese model more than the Am model, suggesting that the nation of origin is of critical imp   
  The characteristics of Theory Z include: 
1.  long term employment 
2.  collective responsibility 
3.  implicit, informal control w/ explicit, formalized measures 
4.  collective decision making 
5.  slow evaluation & promotion 
6.  moderately specialized careers 
7.  a concern for a total person, including their family
 
  For Ouchi, Theory Z management tends to promote stable employment, hi productivity, and high employee morale & satisfaction   
 
DEMING BROUGHT 'THEORY Z,' I.E. THE PROFESSIONALIZATION OF THE WKPLACE, 1st TO JAPAN & THEN BACK TO THE US WHERE IT FELL UPON THE DEAF EARS OF AM MGT FOR SEVERAL DECADES 
 
  Ironically, "Japanese mgt" & Theory Z itself are based on Dr. W. Edwards Deming's famous "14 points"   
  Deming, an American scholar whose mgt & motivation theories were rejected in the US, went on to help lay the foundation of Japanese orgl development beginning his work there in the 1950s   
  Most scholars credit the Japanese econ expansion which began in the 1970s as strongly influenced by Deming's wk w/ Japanese businesses on participative mgt   
  Deming's theories are summarized in his two books, Out of the Crisis and The New Economics, in which he spells out his "System of Profound Knowledge"   
  See Also:  Deming  
 
OUCHI'S OTHER WORK INCLUDES THE DEVELOPMENT OF PARTICIPATIVE MGT & METHODS TO TRAIN FOR TASK UNCERTAINTY
 
 
Ouchi also came up w/ his 3 approaches to control in an org's mgt, including: 
a.  market control 
b.  bureaucratic control 
c.   clan control 
 
 
Ouchi notes that orgs can monitor people's behavior or their wk outputs 
 
 
A combination of large size & homogenous tasks contributes to the utilization of output controls, such as monitoring the number of units produced, sales transacted or cards punched 
 
 
Like Ouchi, Taylor, 1971, found that participative mgt, which means that subordinates are consulted in regard to decisions that affect them, was more likely to be successful in situations involving advanced tech 
 
 
The tech Taylor examined was that type concentrated at the work flow level & thus participative mgt is most effective in the more automated kinds of situations 
 
 
Van de Ven & Koenig, 1976, found that as tasks increased in uncertainty, mutual wk adjustments via horz commo & grp meeting were used instead of hierarchical & impersonal forms of control 
 
 
For Van de Ven & Koenig, as task interdependence increased, impersonal coordination decreased, while more personal modes of coordination in the form of meetings increased 
 
 
Increasing size was related to an increased use of impersonal modes of coordination such as policies & procedures & predetermined wk plans 
 
 
Ouchi, 1977, confirms the findings of Van de Ven & Koenig in that both size & task uncertainty were related to the style of output controls on wkrs 
 

 
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Table Comparing American & Japanese Orgl Structures 
External
Links
American 
Japanese 
 
Short term employment  Lifetime employment   
Individual decision making  Consensual decision making   
Individual responsibility  Collective responsibility   
Rapid evaluation & promotion  Slow evaluation & promotion   
Explicit, formalized control  Implicit, informal control   
Specialized career path  Nonspecialized career path   
Segmented concern  Holistic concern   
The Table Comparing American & Japanese Orgl Structures demonstrates that Japanese firms possess qualities of Theory Z, i.e. a participative orgl structure   

 
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William G. Ouchi
1943  - 

William G. Ouchi (born 1943) is an American professor and author in the field of business management.  Bill Ouchi was born and raised in Honolulu, Hawaii. He earned a B.A. from Williams College (1965), and a Ph.D. in Business Administration from the University of Chicago. He has been a faculty member of the Anderson School of Management at University of California, Los Angeles for many years.  Ouchi first came to prominence for his studies of the differences between Japanese and American companies and management styles

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Major Works of Ouchi: Theory Z

Theory Z: How American Management Can Meet the Japanese Challenge
The M Form Society: How American Teamwork Can Recapture the Competitive Edge


 
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 Outline on an  Overview of Democratic Organizations
External
Links
Link
-  Bibliography  
 
A democratic org is one where the system of mgt or administration is chosen by the employees who enjoy freedom of expression, & ownership of the org
 
 
A dem org is similar to the traditional bureaucracy as understood by Weber, et al; however, Weberian bur usually locates control of the org outside of the org in the hands of investors in the case of a business, or the govt in the case of a govt. service org
 
  A dem org locates control of the org inside the org & its relationship of investors & mgt. / admin is as services hired by the firm, as controlled by employees, rather than as org actors who control the org  
  In practice, most orgs today are strictly bureaucratic, making only a nod to democracy & participation  
  In practice, democratic orgs today are a combination of democratic org structures, employee participation programs, employee ownership plans,  etc. & traditional bureaucratic authoritarianism  
 
Conflicts over participation rights, control rights, return rights, the historical antipathy of employers, & adversarial relationships in labor mgt. relations have made the creation of joint problem solving / democratic orgs difficult
 
  Some movements toward a democratization of an org have been made via union mgt. cooperation to jointly accomplish their separate goals
 
  Many cooperative experiments are initiated through side letters in the contract or through agreements to suspend contract provisions to experiment w/ new methods
 
  Union mgt cooperation is established through integrative bargaining during contract negotiations & in part through the development of ongoing cooperative relationships  
  There are many types of employee involvement programs (EIPs) that have evolved since the human relations school of mgt came to the forefront in the 1930s
 
  Labor law & employee involvement programs, quality control circles, workplace democracy, etc. are all factors that interact & shape orgs & thus the orgl env
 
  The Taft Hartley Act forbids the dominance of a Labor or union org by a firm, i.e., no "business unions" are allowed
 
  The court judgment on the firm Electromation narrows all firms' ability to ask workers to consider & be involved in deciding workplace issues
 
  Involvement of workers in non mandatory bargaining issues is generally accepted & legal
 
  Communications & employee involvement programs, quality control circles, workplace democracy, etc. are all factors that interact & shape orgs & thus the orgl env
 
  Communications activities are similar to collecting survey data
 
  Democratized, i.e. open communications enables both sides to increase understanding of their perceptions of problems
 
  Supervision structures, employee involvement programs, quality control circles, workplace democracy, etc. are all factors that interact & shape orgs & thus the orgl env
 
  Some employee involvement (EI) committees supplant supervisory tasks & actually eliminated supervisory jobs
 
  Wk grps may make own their wk assignments, create & op training,  make recommendations on staff decisions, manage day to day activities, & more  
  Thus E I programs, which have the effect of giving power to workers, threaten both low & mid mgt as well as unions  

 
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  Outline on  Democratic Organizational Structure
External
Links
  -  Project:  Bureaucratic & Democratic Orgs
Link
  -  Project:  Govt Orgs & Democracy
Link
  -  Project:  Democratic Orgs' Effect on Society
Link
  Democratic organizations use the structures & culture of democracy to disseminate power w/in the organization to achieve the advantages of democracy  
  Most orgs are authoritarian in that the boss/owner is the absolute ruler  
  Organizations range in political authority, as do countries, from authoritarian to democratic  
  Most organizations are totalitarian / authoritarian  
  Few people feel / see the contradiction of living in a democratic country & working in an authoritarian workplace  
Link
Democratic workplaces typically demonstrate increased efficiency  
  Productivity studies show a general increase in productivity when workers control the process of the work  
  During the 1960s & 1970s, the US fell behind Japan and Europe in terms of productivity  
  Japanese workplaces have made TWO democratic innovations  
 
1. QCCs are small to medium sized groups that make suggestions on how to improve the organization  
 
QCCs have FOUR Functions
 
  a.  QCCs function to improve & develop the organization  
  b.  QCCs function to increase respects for workers, improve human relations & enhance worker satisfaction  
  c.  QCCs function to utilize workers full potential  
  d.  QCCs function to lower production cost, improve product quality, while taking into account worker needs  
 
Thus the purpose of QCCs is both financial & psychological
While Japanese wages quadrupled between 1969 & 1979, American wages fell during this time
 
Link
2. Lifetime employment, called tenure by Weber,  fosters loyalty & commitment
 
Link
One limitation of the Japanese innovations is that they are limited to the shop floor  
Link
Worker management relations in Japan are less conflicted than in US  
  Scandinavian workplaces have made TWO democratic innovations  
  1. Cooperative work agreements are contracts designed to allow high levels of employee input/power in workplace usually resulting in innovative work processes  
  Example:  At Saab the workers did away w/ the "holy grail" of the assembly line & developed pod production  
  2. Democratic unions are those that voice for workers at all levels of the firm, including the shop floor, middle mgt. upper mgt. & the board room  
  If democracy is to succeed as an alternative to bureaucracy, Rothschild-Whitt has found that FIVE characteristics are important
1.  Small size
2.  Sense of community
3.  Socialize outside the job
4.  Limits on terms of office
5.  Organized political groups which were institutionalized
 
  Work Without Bosses: Organizational Democracy As the Alternative to Bureaucracy
RM Kanter found that cooperatives & collectives utilize FOUR techniques
1.  Minimum written rules
2.  Shun specialization through the development of  job rotation & job enlargement
3.  Eliminate formal positions
4.  Democratic/consensus decision making
 
 
RM Kanter found that in order to understand the fundamental differences btwn cooperatives & collectives & traditional organizations, one must distinguish among THREE types of rationality  
  Traditional orgs use either economic rationality or Formal rationality  
  Cooperatives & collectives utilize substantive rationality  
  Orgs that utilize economic rationality focus on developing the most efficient path to achieve a goal  
  Orgs that utilize formal rationality focus on adhering to rules & procedures, with goals being secondary  
  Orgs that utilize formal rationality focus on adhering to values over goals, rules, or procedures  
 
Examples of democratic orgs
a.  United Airlines            ( ESOP )
b.  Saab                           ( team structure )
c.  Saturn                         ( team structure )
d.  Avis Car Rental          ( ESOP )
 
  There are FIVE orgl features that are important for orgl democracy to succeed  in the US & there are several types of each of these orgl features.  
 
1. Democratic organizational structure has FOUR features
 
  a. Democratic orgl structure has the feature of direct or representative democracy  
  b. Democratic orgl structure has the feature of including democratic unions  
  c. Democratic orgl structure has the feature of supplementing democracy w/ cross division QCCs  
  d. Democratic orgl structure has the feature of bring democratic features to all areas of the organization  
 
2. There are THREE major forms of employee ownership
a.  Corporation w/ employee stock ownership of at least 51% w/ no one person w/ a controlling block
b.  Cooperative
c.  Partnership 
 
 
3. There are THREE major forms of  pay linked to productivity 
a.  Piecework pay
b.  Innovation pay
c.  Org wide bonus 
On average, top level managers cannot earn more than four times the pay of lower level workers
 
 
4.  A Cooperative organizational culture has SIX aspects
a.  Psychologically prepared democrats
b.  Internalized social controls are 
c.  Commitment to participation 
d.  Ability to be proactive
e.  Commitment to equality of opportunity & outcome
f.  Commitment to social responsibility
 
 
5.  A minimum division of labor may be accomplished through FOUR work processes
a.  Rotation of work
b.  Job enlargement
c.  Work teams
d.  Cross training
 

 
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Democratic workplaces increase efficiency 
Productivity studies find that workers w/ control of the work process show /\ prod
Today:  greater competitive pressures so we are attempting to design more efficient workplaces
US fell behind industrial world ( Japan & Europe ) in this is playing catch up now

 
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2.  Lifetime Employment
Has made Japanese work organizations more efficient 
Workers are less likely to leave for a better job elsewhere
The employer is expected not to lay off workers to cut costs
Top mgt. takes wage cuts
Workers are retrained & reassigned
Japanese top execs earn less than American execs    3x   10x

 
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Japanese Innovations are limited to shop floor

Workers have power mostly at the shop floor level.  They still receive goals from top.
QC circles act w/in framework of goals set by management


 
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Worker Management Relationships in Japan are less conflicted

Also, there is less of a history of worker management. conflict in Japan.
QCCs have not been widely accepted by unions

The End
 
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