Chapter 6, Social Organizations

Organizations The Multinational Corporation: Agent of

Colonialism or Progress? Features of Modern Organizations Factors That Influence Behavior in

Organizations Obstacles to Good Decision Making Alienation of Rank-and-File Workers

Multinational Corporations

At least 35,000 operate worldwide with 150,000 foreign affiliates.

Headquartered disproportionately in the U.S., Japan and Western Europe.

Recruit employees, extract resources, acquire capital and borrow technology on a global scale.

Multinational Corporations

Agents of destruction: Exploit people and resources to reduce costs,,

have lenient safety and environmental standards.

Agents of Progress: Raise standards of living, increase employment

opportunities and promote cultural understanding.

How McDonalds Became a Global Corporation

Lowered production costs. Created new products customers “needed.” Improved on existing products and made

previous versions obsolete.

How McDonalds Became a Global Corporation

Expanded the outer boundaries of the World economy and created new markets.

Identified ways to encourage people to purchase more products and services.

McDonalidization of Society

Principles of fast-food restaurants are coming to dominate more and more sectors of society.

1. Efficiency

2. Quantification and calculation

3. Predictability

4. Control

Two Faces of Organizations

Efficiently manage people, information, goods, and services on a worldwide scale.

Promoting inefficient irresponsible and destructive actions that can affect the well-being of the entire planet.

Value-rational Thought and Action: Qualifications

Daily life is organized socially to accommodate large numbers of people.

Does not assume better understanding or knowledge.

People seldom consider less profitable or slower ways to reach a goal even with environmental or safety concerns.

4 Questions to Evaluate Consequences to the Planet

1. Is this technology directed toward helping achieve the highest possible human goals?

2. Does this technology use mineral and energy resources efficiently and preserve or enhance the environment?

4 Questions to Evaluate Consequences to the Planet

3. Does this technology preserve or enhance “good work” for the maximum number of human beings?

4. Is this technology founded on the best scientific and technical information in combination with the wisdom and highest values of the culture?

Characteristics of a Bureaucracy

Clear cut division of labor. Hierarchical authority. Fill positions based on qualifications

determined by objective criteria.

Characteristics of a Bureaucracy

Record administrative decisions, rules, regulations, procedures and activities in a standard format and preserve them in permanent files.

Authority belongs to the position, not the person who fills the position.

Treat clients as “cases” without emotion.

Factors that Influence Organizational Behavior

Informal actions that depart from formal policy.

The way employees are trained to do their jobs.

The way workers’ performances are evaluated.

Alienation of Workers

Marx: Workers are alienated on four levels:

1. From the process of production.

2. From the product.

3. From the family and the community of fellow workers.

4. From the self.