By V K Talithaya
The economist/sociologist, Albert Hirschman, in his famous book, Voice, Exit and Loyalty, discussed how people working in public or government organisations respond to unethical actions or decisions, (a) by raising their Voice against such decisions or actions, (b) by withdrawing themselves from such organisations or situations, Exit, or (c) acquiescing with such decisions or actions, no matter whether they agree with them or not, Loyalty. Though Hirschman propounded these ideas in the context of ethics in public administration, they are equally relevant to business organisations particularly in the context of ethical transgressions by large and reputed organisations and the raging debate on the rights and protection of whistle-blowers in business organisations. Voice is important in public organisations because it upholds our democratic values. It is the channel for dissent. Dissent is the very epitome of pluralism. What about dissent in business organisations? Voice stresses the need for organisational transparency. Transparency is in public interest or stakeholder interest. Yet, transparency is often compromised in the name of confidentiality. Confidentiality in whose interest? When managers become too powerful, and owners become too diffused and anonymous, dissent loses its Voice. What little Voice is heard is feeble, from those who play distant supervisory role as shareholders. Voice, therefore, is rare in business organisations. From Enron and JP Morgan in the US to Satyam in India, from Tesco in the UK to Toshiba and Olympus in Japan, it is the sad saga of acquiescence. The VW case of cheating the detection of greenhouse gas in thousands of cars could not occur without connivance of a large number of managers at all levels. The total absence of Voice of managers at all levels on this blatant attempt to cheat the law is disturbing. What we see is not Voice, but a submissive Loyalty. In business organisations one sees no heroes like Attorney General Elliot Richardson and Deputy Attorney General William D Ruckelshaus who refused to obey what they thought was the illegal orders of their boss, President Richard Nixon to fire the Special Prosecutor, Archibald Cox during the famous Watergate scandal (known as the Saturday massacre). When managers know of misdemeanours taking place in the organisation, their silence is a betrayal of the shareholders and other stakeholders in the organisation. Legislative protection to whistle-blowers has not done much difference in exposing misconduct in business organisations.
The alternative to Voice are Loyalty and Exit. Loyalty is not simply being passively silent; it is acquiescence with the misdeeds of the mighty and powerful in the organisation. Unfortunately, Loyalty is not an exception in organisations, but the rule. Rare is the CEO who does not love to be surrounded by senior managers loyal to him. Loyalty to the CEO or to one's superiors is more important than to the organisation. That is the subtle difference FBI Director, James Comey made when he answered to President Donald Trump's demand of loyalty, "Honest loyalty". Loyalty to one's oath, Loyalty to one's call of duty and principles is what Comey might have meant by "Honest loyalty". Loyalty of executives and managers need to be to the stakeholders. In fact, John Kenneth Galbraith in his book, The Affluent Society, wondered if senior managers in business organisations are paid very fat salaries to ensure their Loyalty. The question that begs is again, Loyalty to whom?
Exit as a response to organisational misdemeanours is opted much more often in business organisations than in public bodies. It is a very effective option in business organisations because there is always the fear of the manager joining a competitor. There is also the possibilities of the manager spilling the beans after his Exit. The response of business organisations to Exit in modern times is hefty hush money. It is not only retiring senior employees who are given liberal separation packages, the golden parachute, but also those who opt to separate on their own, but who know a couple of things too many to be allowed to part without being sweetened. Organisations are learning to fortify themselves against departing whistle-blowers more by silencing them rather than by changing their own behaviour. Today reputation is very important to organisations. The hush money, therefore, is in proportion to the organisational concern for its reputation and the potential to damage it by the exiting employee.
Lack of realism to provide an appropriate forum for freely expressing genuine views shut the Voice in the organisation. Expectation of personal Loyalty rather than "honest Loyalty" encourages sycophancy. The intolerable situation created by both leads to Exit. But honest Loyalty to the organisation will nudge the employee to stick around without cooperating with the wrong-doers. Eventually, when staying within becomes unbearable he may raise the Voice. From that point of view Loyalty is preferable to Exit.
From the organisation's perspective providing sufficient space for genuine Voice, encouragement to organisational Loyalty will be the right policy in the long term. If these two are in place Exit will not be threatening driving the organisation to pay hush money. Exit in this case will be mainly for personal reasons or for reasons of conscience, that is genuine disagreements.
By V K Talithaya
vktalithaya@managementmasala.com
On 5/29/2017
Interesting blog about which attracted me more.Spend a worthful time.keep updating more.
ReplyDeleteInformatica Training in Chennai
Big data is a term that describes the large volume of data – both structured and unstructured – that inundates a business on a day-to-day basis. big data projects for students But it’s not the amount of data that’s important.Project Center in Chennai
DeleteSpring Framework has already made serious inroads as an integrated technology stack for building user-facing applications. Corporate TRaining Spring Framework the authors explore the idea of using Java in Big Data platforms.
Spring Training in Chennai
The new Angular TRaining will lay the foundation you need to specialise in Single Page Application developer. Angular Training
ReplyDeletevery very amazing explaintion....many things gather about yourself...yes realy i enjoy it
Interesting blog post.This blog shows that you have a great future as a content writer.waiting for more updates...
Digital Marketing Company in India
Digital Marketing Services in India
Digital Marketing Agency in India
informative post! I really like and appreciate your work, thank you for sharing such a useful information, keep updating the blog, hear i prefer some more information about jobs for your career hr jobs in hyderabad .
ReplyDeleteThis written work has imparted a specific trust in the group of onlookers.
ReplyDeleteJoseph Hayon
Thank you so much for posting this. I really appreciate your work. Keep it up. Great work!Best Placement company in Hyderabad
ReplyDeleteVery interesting , good job and thanks for sharing such a good blog.
ReplyDeleteMobile phone Battery replacement in chennai | Mobile phone unlocking service in chennai | 100% genuine mobile parts | Mobile service center in chennai | Mobile service center in chennai | tab service center in chennai | Tablet Service center in chennai | Tablet battery replacement in chennai
ReplyDeleteاعالى الخليج تقدم افضل خدمات نقل العفش الدولى المتميزه باسعار متميزة ومنها :
شركة شحن عفش من الرياض الى الامارات
نقل عفش من الرياض الى الاردن شركة شحن عفش من الرياض الى الاردن
Wouldn't it be great to have a secret weapon that gives you an edge over the competition in business? If you're a woman, you don't have one. About Dhirubhai Ambani
ReplyDeleteI think this is an informative post and it is very beneficial and knowledgeable. Therefore, I would like to thank you for the endeavors that you have made in writing this article. All the content is absolutely well-researched. Thanks... internal audit management software
ReplyDeleteAmazing Article,Really useful information to all So, I hope you will share more information to be check and share here.
ReplyDeleteinplant training for biotechnology in chennai
inplant training for ece students
inplant training mechanical engineering students
inplant training certificate format for civil engineering
inplant training report ppt
inplant training report samples
inplant training letter format
inplant training report for civil engineering pdf
inplant training report for electrical engineering
Interesting post. I Have Been wondering about this issue, so thanks for posting. Pretty cool post.It 's really very nice and Useful post.Thanks Business Guru
ReplyDeletePositive site, where did u come up with the information on this posting?I have read a few of the articles on your website now, and I really like your style. Thanks a million and please keep up the effective work. palm springs truck accident lawyer
ReplyDeleteSuper site! I am Loving it!! Will return once more, Im taking your food additionally, Thanks. Crisis Prevention Intervention Certification Online
ReplyDeleteExcellent article. Very interesting to read. I really love to read such a nice article. Thanks! keep rocking. Learn Microsoft Dynamics 365 Business Central
ReplyDeleteI have to search sites with relevant information on given topic and provide them to teacher our opinion and the article. Techesign.com
ReplyDeleteI really loved reading your blog. It was very well authored and easy to understand. Unlike other blogs I have read which are really not that good.Thanks alot! rtechsh
ReplyDeleteYour writers are enormously tremendous. TwentyMilliseconds.com
ReplyDeleteIf you are looking for more information about flat rate locksmith Las Vegas check that right away. incorporating Singapore
ReplyDeleteI think this is an informative post and it is very useful and knowledgeable. therefore, I would like to thank you for the efforts you have made in writing this article. gestoria y consultora en andorra
ReplyDeleteI really like this great job folks. 2600loan.com
ReplyDeleteIm thankful for the article post. Awesome.SprinJene Natural Toothpaste Brand
ReplyDeleteConsequently, the individual would need to factor in the expense of business substance by the work concentrated instrument it gives, to give a reasonable benchmark to the inevitable estimation of the benefits and the valuing appropriate to be requested.Fókuszpályázat
ReplyDeleteI don’t think many of websites provide News Storiesthis type of information.
ReplyDeleteI don’t think many of websites provide this type of information. Business
ReplyDeleteDistinguishing the qualities of a specific assistance based organization and coordinating them to the requirements of the site being referred to will permit the entrepreneur is settle on an educated choice regarding the benefits of the picked administration. Pressfarm
ReplyDeleteThanks for picking out the time to discuss this, I feel great about it and love studying more on this topic. It is extremely helpful for me. Thanks for such a valuable help again. AI Voiceover tool
ReplyDeleteAs an entrepreneur you as of now comprehend the significance of promoting. You realize that it encourages clients to discover your business and perceive your name and brand. personal classifieds
ReplyDeleteI’m going to read this. I’ll be sure to come back. thanks for sharing. and also This article gives the light in which we can observe the reality. this is very nice one and gives indepth information. thanks for this nice article... business sign maker
ReplyDeleteThree are usually cheap Ralph Lauren available for sale each and every time you wish to buy. Lifestyle
ReplyDeletethe meaning of accounts, as the arrangement of the creation and utilization of assets of money sources fair and square of marvel. Purchase invoices to Xero
ReplyDeleteWe have sell some products of different custom boxes.it is very useful and very low price please visits this site thanks and please share this post with your friends. 로또당첨번호
ReplyDeleteThe more alternatives it has, the better you can tweak the outcomes, and the more "voices" you can adequately make. In spite of the fact that for a man to seem like a lady or the other way around, you should change the voice by a few octaves. https://www.hackingnewstutorials.com/clownfish-voice-changer/
ReplyDeleteI recently found many useful information in your website especially this blog page. Among the lots of comments on your articles. Thanks for sharing. Digital mastery
ReplyDeleteGreat job for publishing such a beneficial web site. Your web log isn’t only useful but it is additionally really creative too. Home Improvement Deductions for Taxes in 2020
ReplyDeleteI found so many interesting stuff in your blog especially its discussion. From the tons of comments on your articles, I guess I am not the only one having all the enjoyment here! keep up the good work... Electrician Near Me
ReplyDeleteI read a article under the same title some time ago, but this articles quality is much, much better. How you do this.. Voice Over
ReplyDeleteTook me time to read all the comments, but I really enjoyed the article. It proved to be Very helpful to me and I am sure to all the commenters here! It’s always nice when you can not only be informed, but also entertained! update online business listing
ReplyDelete
ReplyDeleteThis is just the information I am finding everywhere. Thanks for your blog, I just subscribe your blog. This is a nice blog..
ufabet
ufa
sexy baccarat
slotxo
sagame
I’m going to read this. I’ll be sure to come back. thanks for sharing. and also This article gives the light in which we can observe the reality. this is very nice one and gives indepth information. thanks for this nice article... voice changer
ReplyDeleteI have read a few of the articles on your website now, and I really like your style of blogging. I added it to my favorites blog site list and will be checking back soon. Please check out my site as well and let me know what you think. 蘇洛支付
ReplyDeleteThe basic concept is as follows: members of an organization, whether a business, a nation or any other form of human grouping, have essentially two possible responses when they perceive that the organization is demonstrating a decrease in quality or benefit to the member: they can exit.
ReplyDeleteThanks
BhaveshK
Best Best Digital Marketing Company in Surat
darthvadertv.com
ReplyDeletedarthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
ReplyDeletedarthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
ReplyDeletedarthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
ReplyDeletedarthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
ReplyDeletedarthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
ReplyDeletedarthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
ReplyDeletedarthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
darthvadertv.com
Prior to requesting that somebody focus on your business, you need to comprehend their monetary circumstance. When firing up a business, there might be some measure of introductory capital required. On the off chance that colleagues have enough monetary assets, they won't need subsidizing from different assets. This will bring down an association's obligation and increment the proprietor's value.my review here
ReplyDeleteAn innovator in contemporary thought on economic and political development looks here at decline rather than growth. Albert O. Hirschman makes a basic distinction between alternative ways of reacting to deterioration in business firms and, in general, to dissatisfaction with organizations: one, “exit,” is for the member to quit the organization or for the customer to switch to the competing product, and the other, “voice,” is for members or customers to agitate and exert influence for change “from within.” The efficiency of the competitive mechanism, with its total reliance on exit, is questioned for certain important situations. As exit often undercuts voice while being unable to counteract decline, loyalty is seen in the function of retarding exit and of permitting voice to play its proper role. The interplay of the three concepts turns out to illuminate a wide range of economic, social, and political phenomena. As the author states in the preface, “having found my own unifying way of looking at issues as diverse as competition and the two-party system, divorce and the American character, black power and the failure of `unhappy’ top officials to resign over Vietnam, I decided to let myself go a little.”
ReplyDeleteThanks & Regards
Karan Pandey
Best Rapier Loom Machine Manufacturer in Surat
Best Electronic Jacquard Machine Manufacturer in Surat
Best High-Speed Loom Jacquard Machine Manufacturer in Surat
Best High-Speed Rapier Looms Machine Manufacturer in Surat
Best Velvet Loom Machine Manufacturer in Surat
Best Velvet Fabric Shearing Machine Manufacturer in Surat
Best Velvet Fabric Slitting Machine Manufacturer in Surat
Best Rapier Dobby Loom Machine Manufacturer in Surat
Best Textile Machine Manufacturer in Surat
This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value of providing a quality resource for free. Work from home
ReplyDeleteYes i am totally agreed with this article and i just want say that this article is very nice and very informative article.I will make sure to be reading your blog more. You made a good point but I can't help but wonder, what about the other side? !!!!!!Thanks Earn money online
ReplyDelete