Friday, November 30, 2012

The Matrix (4th Issue)

Fourth Issue: Internal
How should the company organize its labor and operations?
How should the company deal with global and national changes?

Economic Liberalism:
(Solutions) The company is efficient and reduces its operating costs. Employees should be few but highly qualified. It should embrace change. For example, Mirant has a small and efficient work force but compensates well.
(Strengths) The company becomes efficient and light, making it more able to deal with change. Better efficiency means the company produces more, earns more and can help more people.
(Weaknesses) Too much focus on change and efficiency can lead to more stressful lives. People must face different bosses, changing procedures, high standards and pressure.

Neomercantilism:
(Solutions) The government protects domestic labor by requiring the company to hire local technical and administrative staff. For example, Mirant hires the best Filipino workers, some of whom have come from abroad.
(Strengths) Requiring companies to hire majority of their labor from the country helps more Filipinos. This could ease unemployment and develop the technical skills and work ethic of citizens.
(Weaknesses) Making companies hire their labor locally can lead to problems when the people are not qualified. The country does not learn much foreign innovation.

Rational Choice:
(Solutions) The government conducts its business in places and through means that benefit the people involved. For example, Mirant opens its plants in good energy sources and welcomes companies to buy assets.
(Strengths) The companies and the communities work together to have mutual benefits and create good opportunities. They could sustain their actions longer because they get something good from it.
(Weaknesses) Sometimes, the interests of the various companies can conflict with each other. The goals of the company and the communities can be at odds with each other.

Neo-Marxism:
(Solutions) The state owns the business and controls operations. All workers are Filipino and get good wages and benefits. Profit is reinvested in the community and country. For example, Mirant gives back to the Philippines.
(Strengths) The company helps the state and the citizens better their lives by focusing on the workers. The country has more money and skill because the company reinvests in the community.
(Weaknesses) By controlling the economy and giving workers same wages, the state holds back people who want to set up own businesses or innovate through alternative means.

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