, Research Paper
There are many alternatives that are used to motivate workers beyond the conventional bureaucratic ways that was once thought of as the only way to control workers. Since the 1960’s we have learned a great deal of information leading to the discovery of alternatives to bureaucratic organizations. Today, bureaucratic ideas are still widely used among organizations, however a shift in thinking occurred and the question was asked, What are the alternatives if bureaucracy it not working in an organization?
Bureaucracies Defined:
According to Max Weber, bureaucracy is the most efficient and most rational known means of exercising authority over human beings (Weber, p223). Further it is reliable, precise and stable, these are all terms that are desired for large complex organizations that need to control vast amounts of employees. Bureaucracy is based on legitimate authority, those that are being controlled by others; accept oppression as part of the work along. There are several characteristics that mold a particular organization into following the bureaucracy model, such as, rules, hierarchy, salaried careers, written documents and appointment. These characteristics serve as a guideline, or an owner’s manual of sorts that has a preconceived effect for each cause with the organization. Even if bureaucracy is working to its full capacity within an organization, there can be times when is no longer efficient to use alone. Bureaucracy is still used within organization but usually in conjunction with an alternative.
Agency Theory Defined:
The goal of agency theory is getting people to do the best job for the best price and least amount of risk. One decision is to fill a sales district with representatives called external or with an employee sales force called internal (Anderson, p 234).
An internal sales force is a company who uses their own employees to sell a product they have produced. They are employed by the organization and receive a salary, no matter if the product is successful or not. The externalized labor market consists of independent contractors who agree to sell the product for the company for this they receive a commission according to the amount of products sold. Companies who have greater difficulty in evaluating a salespersons performance are more likely to substitute surveillance for commission as a control device (Anderson, p 234). Internal sales forces are associated with complex, hard to learn product lines in which the selling districts expect nonselling activities.
Advantages/Disadvantages:
As stated above, direct sales people are employees of the company also called internalized labor. The major advantage to having this type of labor is that it is easier to control because they are integrated in the company. Another advantage to internalized labor is long term meaning employees stay in the organization, they want the security of working for a company that will pay them paycheck whether they have been successful in selling a product or not. Another benefit is keeping critical people that are key to the operations and/or have a specific knowledge of task. The disadvantages include costly overhead, metering costs and mediocre performance. It costs a company a lot of money to employee a full-time person along with benefits and a retirement. Employees expect some kind of security and loyalty from the company even in difficult times. All these costs do not guarantee that the employee will perform well; in fact, most employees do the minimum amount to receive a paycheck.
To externalize labor means to outsource labor, which is done by on a contractual basis either by a large company specializing in a vast array of products or by an independent person. These outside agents are responsible for selling products for a company but are not part of the company’s integration structure. They are not salaried but are employees working on a commission only basis. In fact, these representatives may sell several different products from many companies at the same time; they are focused on the buyers of these goods. The advantages to outsourcing the sales force include customer loyalty, low and stable costs and performance is evaluated by actual sales. These independent agents have a large customer base since they are peddling more than one company’s products; they rely on these strong networks for present and future business deals. Again, when a company externalizes the labor costs remain low and are on a piecework type rate; one is only paid for what they sell. The downside of externalized labor is that the contactor focuses only on the commission, and does not offer guarantees to the products that they sell. Further, they can refuse to do any extra nonselling assignments, like conventions or extra paperwork. Some examples of independent contractors are Warner Lambert Co, Mary Kay cosmetics, Amway and Real Estate Agents. In which a commission is earned on product sales, in other words, pay is connected with performance.
Conclusion:
Transaction Cost or Agency theory is just one of many alternatives organizations have available as a way to control employees. The findings in this comparison of external and internal labor sources suggest that when a company is unsure of what their employee is doing, it is cheaper to use surveillance as a control tactic. If a company has general product that is not complicated, it may be more advantageous to outsource since control would not be as necessary. Many companies may use a combination of both internal and externalized labor, since risks may vary according to what is sold. If given the choice most of us would pick the internal labor side, because it is secure, dependable and predictable. Organizations must way the risks with control to decide the best way a job will get done with the minimal amount of employee control.
Bibliography:
Anderson, Erin. 1985. “The Salesperson as Outside Agent or Employee: A Transaction Cost Analysis.” Marketing Science 4:234-254.
Weber, Max. 1922/1968. “The Types of Legitimate Domination.” And “Bureaucracy” Pp. 216-226, 956-963 in Economy and Society, edited by Guenther Roth and Claus Wittich. Berkley: University of California
Другие работы по теме:
Workers And Laborers Essay Research Paper Workers
Workers And Laborers Essay, Research Paper Workers and Laborers There are two kinds of people in the work force. There are laborers and there are workers. The difference between these two types of people is that a worker enjoys his or her job while a laborer does not. To the laborer, his or her life is almost equivalent to a wage slave.
The Chartist Movement Essay Research Paper The
The Chartist Movement Essay, Research Paper The Chartist Movement was one of rights. The workers felt they had worked hard for the rights than those of higher classes had. However, they were not arguing for more money or more land, all they wanted was universal suffrage. The workers believed it was time to put the unrest, to rest.
Management Practices Essay Research Paper 1 Managers
Management Practices Essay, Research Paper 1.) Managers must have great personal skills so that they can effectively communicate goals of the manager to his or her workers. Managers must also be great motivators. If workers are motivated to perform at their best and want to do the best job they can, the results of their work will be better.
Selfhelp Groups Essay Research Paper Selfhelp groups
Self-help Groups Essay, Research Paper ?Self-help groups consist of individuals who share the same problem or concern. Members provide emotional support to one another, learn ways to cope, discover strategies for improving their condition, and help others while helping themselves (Wituk, Shepherd, Slavich, Warren, & Meissen, 2000).?
Curbo Company Essay Research Paper Curbo CompanyRecently
Curbo Company Essay, Research Paper Curbo Company Recently, Curbo Company has received a large sum of money from the estate of a former stockholder. Management is undecided about the most profitable means of investing this money. The Accounting Department has worked with the Engineering and Production Departments, and the Market Research Department is evaluating the alternatives available.
Flaws In Germinal Essay Research Paper The
Flaws In Germinal Essay, Research Paper The Flaws in Germinal At first glance, one might say the capitalist system is righteous and it leads to more productivity, but upon discreet examination, the system has numerous flaws. As we discussed in class, one of the main flaws was the inability of the workers to advance themselves in society beyond the point of keeping food in their stomachs.
Kafka Guilt Essay Research Paper Guilt has
Kafka /Guilt Essay, Research Paper Guilt has relative existence; in one sense or another, every man experiences guilt. Whether or not this guilt is worthy of punishment, however, is another question. For this, modern society has created trials that decide whether or not a person is guilty. However, sometimes the actual guilt or innocence of an individual is not the most important aspect of his or her trial.
Tree Free Paper Essay Research Paper Eventually
Tree Free Paper Essay, Research Paper Eventually, at the current rate of deforestation, there will be no trees. We must look for alternatives to wood fibers. I for one would not like see the day that money hungry business man cut down the last tree for such a now useless object such as paper. Nowadays, with computers, there is no need for paper other than for printing.
Market Socialism Essay Research Paper In 1978
Market Socialism Essay, Research Paper In 1978, Deng Xiaoping opened the Chinese economy to increased foreign trade and investment. Under growing pressure from the international community, the bureaucracy under Deng moved towards economic reforms. This move towards capitalism was, in the words of Deng, socialism with Chinese characteristics.
Teenage Mothers Essay Research Paper Dear Judges
Teenage Mothers Essay, Research Paper Dear Judges of Criminal Courts: I m writing in concern of unmarried teenage mothers who mistreat their child or cause the death of their newborn. There are alternatives available for the teenage mother so she can avoid bringing a newborn to society. Something must be done to protect the helpless newborns.
Applying Karl Marx To Ritzer
’s Mcdonaldization Of Society Essay, Research Paper Tim Horgan Cont. Soc. Reflection Karl Marx believed that a major revolution was in the future for the Western world. Exactly how far in the future remains to be seen, but many would argue that capitalism is as strong as it ever was and no class conflict will occur.
Los Angeles Politics Essay Research Paper Glen
Los Angeles Politics Essay, Research Paper Glen Gemeniano 1/28/00 POLI 1A Alternatives to Belmont Sites Have Problems of their own The site for new Belmont still hasn’t been found. The School district has been fumbling with two proposed alternatives by interim superintendent Ruben Cortines and CEO Howard Miller respectively suggest using high-rise office suites and open 4 new schools quickly.
Social Work Essay Research Paper Social Workers
Social Work Essay, Research Paper Social Workers in the United States have many roles and needs to fill in society. They are seen as the people that nurse the homeless, unemployed, hunger-stricken, and destitute back to life. It is their choice to help those more unfortunate than themselves, and although it is considered a “job”, it is really a way of life.
Bureaucracy Essay Research Paper Bureaucracy simply defined
Bureaucracy Essay, Research Paper Bureaucracy, simply defined can be called the “red tape” of the American Political system. Also, this red tape can further be explained as the life blood of the very structure. It is the dominant institution, the institution that epitomizes modernity. Bureaucracy is an organizational form of public administration, the very structure of the operating units of government.
The Federal Bureaucracy Essay Research Paper The
The Federal Bureaucracy Essay, Research Paper The federal bureaucracy can have both a positive and negative impact on the efficient working of government. There are five major problems that detract from the efficiency of our government. Red tape conflict, duplication, imperialism, and waste all contribute to a slower more problematic government.
Beaucracy In America Essay Research Paper What
Beaucracy In America Essay, Research Paper What is bureaucracy? According to Radin bureaucracy is an organization made up of appointed individuals. There are many forms of bureaucracy such as large corporations and government agencies.
Bureaucracy Essay Research Paper Bureaucracy has many
Bureaucracy Essay, Research Paper Bureaucracy has many components and characteristics to it that both help and hurt it. The most obvious characteristic is the size of bureaucracy. The size of this organization both helps and hurts in the effectiveness of government.
Bureaucracy Essay Research Paper Bureaucracy is a
Bureaucracy Essay, Research Paper Bureaucracy is a type of administration that is characterized by specialization, professionalism, and having a secure place in office. When you have bureaucracy, there are common ways in which it functions. The ways in which it functions are that there are fixed areas with certain rules, or laws that are governed by an administration.
People And Machines Essay Research Paper People
People And Machines Essay, Research Paper People and Machines The problem is not with the machine: it is with the man who allows himself to become mechanical. People work on machines all day long. Many of
Goverment Essay Research Paper THE RISE OF
Goverment Essay, Research Paper THE RISE OF THE BUREAUCRATIC STATE The bureaucracy has been constantly growing since its beginning. At the end of the Federalist period, only 3,000 civilian officials were appointed; then in 1925 about half a million were employees in the bureaucracy. However, the size of the bureaucracy is completely insignificant.
Three Sides Of Labor Unions Essay Research
Paper Summarize the three arguments on labor unions. To start with, the Conservatives believe that labor unions are bad. They feel that labor unions have too much power for their size. Labor unions use this power as blackmail against companies, by becoming labor monopolies. They ask too much of companies, causing either the company to shut down, or to supply more money for the employees.
NAFTA Essay Research Paper If NAFTA made
NAFTA Essay, Research Paper If NAFTA made this agreement, people would be able to move about Canada, the United States, and Mexico with ease. The unskilled workers in Mexico would migrate to “El Norte,” looking for higher paying jobs. The supply of workers in Mexico will drastically decrease. Only the terminally ignorant, or those with families in Mexico, would stay in a poor country and earn low wages.
Marx And Weber Essay Research Paper I
Marx And Weber Essay, Research Paper I thought Marx’s Wage Labour and Capital was much more interesting and easier to understand than the previous reading. In this section, Marx attacks the idea of competition, division of labor, capital growth, and the injustice that workers must face as a result of them.
Big Stores Return To Mean Streets Essay
, Research Paper Big Stores Return to The Mean Streets The retailers are getting advantages from the government if they place their business in the inner cities; the government is offering them the store as incentive to them. The retailers have to go through a bureaucracy process to get a business in the downtown .
What Is The Best Alternative To Prison
? Essay, Research Paper ?The U.S. prison population has tripled since 1980 so that on any given day there are 1.5 million Americans behind bars.? (Alternatives 1). There is a clear overcrowding problem in todays prisons. Why? I believe that the population explosion in the prison system is due to the increasing moral decline of America.
Confucianism And The Rise Of Industrialism In
East Asia Essay, Research Paper ? ??? ?? Many factors helped aid in the dynamic growth that occurred in Japan and the four little dragons during the post-World War 2 period. Some of these factors were situational factors unique to the time but some of the factors were cultural. The legacy of Confucianism in Japan and the four little dragons helped to further the goals of industrialization that these nations had.
Minimum Wage Essay Research Paper Minimum Wage
Minimum Wage Essay, Research Paper Minimum Wage Legislation I am going to pose the question to you the students of Sir Sandford Fleming College, do you really want the minimum wage legislation left in affect? As college students you are not benefiting or gaining anything from minimum wage legislation. The minimum wage legislation requires all employees to be paid at least some fixed given dollar amount per hour.
Max Weber Essay Research Paper Max Weber
Max Weber Essay, Research Paper Max Weber German Sociologist and First Analyst of Bureaucracy Max Weber was the first to observe and write on bureaucracies which developed in Germany during the 19th century. He considered them to be efficient, rational and honest, a big improvement over the haphazard administration that they replaced.
Child Labor Essay Research Paper My opinion
Child Labor Essay, Research Paper My opinion is that child labor was one of the most terrible acts in the 1800 s. I am sure that there were more than enough adults to take care of the jobs that small child had to do. I think that child labor sick and twisted and anyone who believes in it should not be considered human.
Workers At Risk Essay Research Paper Workers
Workers At Risk Essay, Research Paper Workers at Risk In the book “Workers at Risk” the authors, Dorothy Nelkin and Michael S. Brown, interviewed a number of “working class” people. The authors enticed workers to discuss their major concerns regarding occupational health and safety. Almost all the interviewed workers had some complaints regarding the subject and some seemed quite upset in regards to their complaints.