Thursday, February 26, 2009

Albert O. Hirschman, Exit, Voice, and Loyalty: Chapter 1, Introduction and Doctrinal Background

Fundamental question: how do organizations recover from lapses in efficiency? Options for clients of lapsed organizations roughly break down into exit (withdraw from interaction) and voice (remain but apply pressure).

Key premise: perfect competition is a poor model for organizational behavior, because slack is pervasive in organizations, including businesses. Slack tends to increase entropically until corrected.

Exit: economics. Voice: politics.

No comments: