Sunday, April 17, 2011

Corporatism and Neo-Liberalism


Corporatism and Neo-Liberalism

One of the corollaries or supporting ideologies behind Neo-Liberalism is the cult of Management.

The idea that  individual shareholders, managers or directors are the main contributors to the success of a corporation, and thence the economy. And deserve the greatest share of the rewards. The jobs and income of all other employees and State servants is a generous charitable gift from these people.

Except, maybe  in the case of genuine entrepreneurs, we all know this is not true.

Many corporations and State or private enterprises run despite management, not because of them.  In fact the constant parade of new brooms trying to make a name for themselves, with rapid changes and cost cutting, cause competent staff to resign and demoralise the rest.

How many times, within a company, when you want  the person who get things done. You ignore the suits staring out the windows in the corner offices and talk to the person, usually a women, who actually does things. Normally someone several pay grades below the suits.
Or when you are ordering something. The bright well dressed manager calls some wizened old guy from the shop floor to ask if it can be done.

The corporations with the largest income gap between Directors/Managers  and employees have proven to be the least  functional.
Corporate income gaps.

The star managers paid in millions have proven to be much less effective than, lesser paid,  experienced promotions from within the organisation.
Twenty year research into Management effectiveness study
"companies that exclusively promote CEOs from within outperform companies that recruit CEOs from outside the company."
Best to Promote from within.

"Outsiders are typically good at rapid cost-cutting and divestment, but over time, those opportunities tend to dry up."

From the research

Highly paid directors have led many corporations into oblivion.
Enron, SCF, Hanover and many others.

The highest paid of all, financial managers, destroy at least 7 times as much wealth as they create.  
 Which makes their real worth, to society, somewhere south of a cleaner.

We are so bamboozled by the cult of management we made one of those prime Minister.

At the same time corporations decry the decreasing loyalty of other employees while they reduce the pay and responsibility they show towards them.
Attitudes to employees.

This all comes from the Neo-Liberal idea that those who work for others are somehow being charitably given jobs.
The fact is all the overpaid managers, greedy directors and parasitic shareholders could not even live, let alone have fortunes without the efforts of cleaners, technicians, plumbers, lath hands, secretaries and rubbish collectors.

People who do productive work more than earn their pay.

They contribute much more in relation to their income than those at the top.

Unions and , once upon a time, Labour helped the rest of us towards getting our fair share of the wealth we produce.

Since 1984 incomes and wealth at the top are rising at the same rate the median income (What most people get paid) is going down.

Past time Labour decided they are not national lite and repudiated the entire  Neo-Liberal canon of faith. They should not be just another vehicle, like National, to transfer wealth to corporate parasites.

Stop the waffle, (Thanks QOT) stop the managerialism within the party  and shooting themselves in the foot and come out strongly for New Zealanders.

Then they may get back the votes of ordinary people.

1 comment:

  1. To reward oneself is nature of man even though this may be at expense of others. Establishment of kingship was based on this principle. Look at erstwhile socialist countries - they created a new elite class of their own- members of politburo. Modern Democracy is a farce too.
    Now we are at a defining stage where Global corporations have taken over especially in US- big money elects presidents NOT the people of US. Do you seriously believe *most* top politicians actually are in politics because they would like to serve us? In NZ rich farmer's lobby is extremely powerful- coupled with a select group of families which own Fisheries, construction, timber etc call the shots. The media is manipulated to form an opinion. I am not pro Labour or Pro National. Labour cant form a government without this select groups backing too. But at least some of their leaders *may* be sympathetic to poor person's cause. An average kiwi cannot understand that he/she is being manipulated via media and other means. Now Why would an average kiwi vote for national or act. These parties are not in our best interest. They are simply fronts for rich people.