Krugman Vs. Marriott Term Paper

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Economics

Comparing Krugman's and Marriott's Attitude Towards Labor

Paul Krugman (1998) has argued labor is treated as a commodity under capitalism, with employees treated as cogs in a machine and no consideration is given to their needs. By contrast Bill Marriott argues that for his firm; Marriott Corporation, employees matter, and that when they known they are important to the employer, who will listen to their concerns and ideas, they will be happier and deliver better service for their employers. These two approaches appear to be diametrically opposed, with one arguing there is a dehumanizing of workers, the other emphasizing the value from embracing the human elements of the employment relationship.

There is a plethora of proof that employees may be treated as commodities, with employer simply seeking to maximize the benefit they obtain from their labor. It may be argued that this was the core motivation behind the well-known time and motion studies undertaken by the Taylor and the development of scientific management and the time and motion studies of the Gilbreth brothers. Taylor undertook a number of studies including work at the Midvale Steel Works, where he significantly increased the efficiency of the workers by redesigning the task, where workers had previously shoveled 12.5 tons of a coal a day, after retraining they shoveled 47 tons a day (Taylor, 2003). This was a significant benefit to the employer, with the employees being treated as pieces of equipment whose labor could be maximized.

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However, there was also some benefit to some employees, as they were aid on performance, the wage increased from $1.15 a day to $1.85 a day. However, while some employees benefited, others lost out, as increased productivity meant fewer workers were needed.

When looking at today's world there are many other examples where employees are treated as commodities, in 2005 a well published case saw the airline caterer, Gate Gourmet, sacked 250 staff over a dispute regarding the use of agency staff, Gate Gourmets actions were based on reducing costs and maximizing labor input for the costs, and had no concern for the workers (BBC News, 2005). However this may be argued as a very capricious approach, when it is considered other employees in the firm where to facing the same issues; with good working conditions and above average pay provided for many white collar workers.

There appears to be a degree of hypocrisy by those in management positions, favoring better working condition for those who are closet to their own position and with whom they may identify. There are also many cases of employers who undertake measures that demonstrate care and consideration for the employees, but the results are often ascertained in terms of the improvement on the bottom line, with employee satisfaction seen as a way of improving financial performance. When Sears introduced a….....

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