Exit, Voice, and Loyalty - Wikipedia

Exit, Voice, and Loyalty (1970) is a treatise written by Albert O. Hirschman (1915–2012). The work hinges on a conceptual ultimatum that confronts consumers ... Exit,Voice,andLoyalty FromWikipedia,thefreeencyclopedia Jumptonavigation Jumptosearch Bookoneconomicandpoliticaltheory Exit,Voice,andLoyaltyAuthorAlbertO.HirschmanPublicationdate1970Pages162ISBN0-674-27660-4 Exit,Voice,andLoyalty(1970)isatreatisewrittenbyAlbertO.Hirschman(1915–2012).Theworkhingesonaconceptualultimatumthatconfrontsconsumersinthefaceofdeterioratingqualityofgoods:eitherexitorvoice.Thebookhasbeendescribedasinfluential.[1]Theframeworkpresentedinthebookhasbeenappliedtotopicssuchasprotestmovements,migration,politicalparties,andinterestgroups,aswellastopersonalrelationships.[1] Contents 1Summary 2Applyingthetheorytomembershiporganizations 3Applyingthetheorytoemigration 4Specialproblems 5Applyingthetheorytopoliticalsituations 6Applyingthetheorytoemploymentrelations 7Reception 8Editions 9Seealso 10Furtherreading 11References Summary[edit] Thebasicconceptisasfollows:membersofanorganization,whetherabusiness,anationoranyotherformofhumangrouping,haveessentiallytwopossibleresponseswhentheyperceivethattheorganizationisdemonstratingadecreaseinqualityorbenefittothemember:theycanexit(withdrawfromtherelationship);or,theycanvoice(attempttorepairorimprovetherelationshipthroughcommunicationofthecomplaint,grievanceorproposalforchange).Forexample,thecitizensofacountrymayrespondtoincreasingpoliticalrepressionintwoways:emigrateorprotest.Similarly,employeescanchoosetoquittheirunpleasantjob,orexpresstheirconcernsinanefforttoimprovethesituation.Disgruntledcustomerscanchoosetoshopelsewhere,ortheyaskforthemanager. Exitandvoicethemselvesrepresentaunionbetweeneconomicandpoliticalaction.ExitisassociatedwithAdamSmith'sinvisiblehand,inwhichbuyersandsellersarefreetomovesilentlythroughthemarket,constantlyforminganddestroyingrelationships.Voice,ontheotherhand,isbynaturepoliticalandattimesconfrontational. Whilebothexitandvoicecanbeusedtomeasureadeclineinanorganization,voiceisbynaturemoreinformativeinthatitalsoprovidesreasonsforthedecline.Exit,takenalone,onlyprovidesthewarningsignofdecline.Exitandvoicealsointeractinuniqueandsometimesunexpectedways;byprovidinggreateropportunityforfeedbackandcriticism,exitcanbereduced;conversely,stiflingofdissentleadstoincreasedpressureformembersoftheorganizationtousetheonlyothermeansavailabletoexpressdiscontent,departure.Thegeneralprinciple,therefore,isthatthegreatertheavailabilityofexit,thelesslikelyvoicewillbeused.However,theinterplayofloyaltycanaffectthecost-benefitanalysisofwhethertouseexitorvoice.Wherethereisloyaltytotheorganization(asevidencedbystrongpatriotismpolitically,orbrandloyaltyforconsumers),exitmaybereduced,especiallywhereoptionstoexitarenotsoappealing(smalljobmarket,politicalorfinancialhurdlestoemigrationormoving).Loyalmembersbecomeespeciallydevotedtotheorganization'ssuccesswhentheirvoicewillbeheardandwhentheycanreformit. Byunderstandingtherelationshipbetweenexitandvoice,andtheinterplaythatloyaltyhaswiththesechoices,organizationscancraftthemeanstobetteraddresstheirmembers'concernsandissues,andtherebyeffectimprovement.Failuretounderstandthesecompetingpressurescanleadtoorganizationaldeclineandpossiblefailure. Applyingthetheorytomembershiporganizations[edit] Membershiporganizations,whethertheybeprofessional,community-basedorbusiness-oriented,facetheperpetualchallengeofknowinghowengagedmembersare;howlikelytheyaretoremainmembers;andwhentheymightceasetobemembers.Exit,VoiceandLoyaltycanbeobserved,reviewedandaddressedasamatterofcourse,andinalearningorganization,canresultinreducedmember"churn"andincreasedgrowthinmembersatisfaction,loyalty,referralsandgrowth.Thisusuallyentailssomesortofsurveyefforts,socialmediainquiries,pollingandindividualinterviewsand/orgrouptomaintainthenecessaryinformationfortheorganizationtoadapttoitsmembers'needs. Somestudies[2][3]confirmHirschman'sassertionthatgreaterexitandentrycostsheightenthelikelihoodofvoice.Particularlywhenexaminingdisputeresolutionincontextswithlimitedexitopportunities,increasedentrycostsmakeworkers'voicemorelikely. Applyingthetheorytoemigration[edit] AkeyapplicationofHirschman'sschemeofexit,voiceandloyaltyhasbeenemigration.[4]Drawingontheanalogyofdiscontentconsumersbuyingelsewhere,"exit"translatedintoleavingacountryandmigratingtoadifferentnation-state,while"voice"describedtheoptionofarticulatingdiscontent,whichasHirschmannoted,"canbegraduated,allthewayfromfaintgrumblingtoviolentprotest".[5]: 16 Hirschmanmodeledtheseoptionsasmutuallyexclusiveandpostulatedaseesawmechanism:theeasieravailabletheexitoption,thelowerthelikelihoodofvoice.Forrulers,emigrationservedasasafety-valve,bywhichthediscontentrenouncedontheirpossibilitytoarticulateprotest."LatinAmericanpowerholdershavelongencouragedtheirpoliticalenemiesandpotentialcriticstoremovethemselvesfromthescenethroughvoluntaryexile.Therightofasylum,sogenerouslypracticedbyallLatinAmericanrepublics,couldalmostbeconsideredasa'conspiracyinrestraintofvoice'."[5]: 60f However,notalwaysdid"exitsubvertvoice",asHirschmanhimselfacknowledgedina1993article.[6]In1989,intheGDRitwastheescalatingdynamicofout-migrationthatledthosewhowantedtostaytotaketothestreetstodemandchange.Exittriggeredvoice,andbothworkedintandem.[7] Moreover,Hirschman'sschemeassumesamodelofnation-statesasajigsawpuzzleofclearlydelimited"containers",andmigrationastheprocessofunidirectionallymovingfromonecontainertoanother.Theemergenceoftransnationalmigrationdiagnosedsincethe1990shaschallengedthisassumption.Asemigrantsincreasinglymaintainstrongsocialties(loyalty)totheircountryoforigin,includingaclaimtohaveasayinitspublicaffairs(voice)–Hoffmannargues–intransnationalmigrationexit,voiceandloyaltyarenolongerexclusiveoptions;thenatureofmigranttransnationalismisdefinedpreciselybytheoverlappingandsimultaneityofthesecategories.[8] AnexampleofthisphenomenoncanbefoundregardingstudentsfromGhana,whointendedtomigrateforachanceatanoverallbetterqualityoflife,morecareeroptions,andapossibilityofcontinuingtheireducation.Thesestudentshopeto'exit'theircurrentsituationduetotheirlackofresources,lackofincome,orlackofjobopportunities.Theyare'withdrawingtheirrelationship'withtheircurrentcommunity/homecountrytotryandprospersomewherenew.[9] Specialproblems[edit] Hirschmanprovidesanexamplesimplifiedhere:Considerapubliclyfundedschoolwherethequalityofeducationdeclined.Quality-consciousparentswouldincreasinglyremovetheirchildtoaprivatelyfundedschool,giventhattheyarerelativelyindifferenttothecost.Aprice-consciousparentmightnoticethatdeclinebutlacktheresourcestomakeexitaviableoption.Atsomepointtheschoolwouldknowtherewasaproblem,havinghadanumberofstudentsleave,buthavenofinancialincentivetochange,astheparentsleftwhocaredsufficientlyaboutthequalitytopointtoexactlywhereithadfailed.Theschoolremainslockedintothatstate.Hirschmannotesthatinthisandsimilarcases("connoisseurgoods"),a"tightmonopolycouldbepreferable",preventingexitofquality-consciousconsumers.Alackofexitwouldbebetterfortheschool,ifnotthechild,bykeepinganactivevoiceamongtheparents.[5]: 51–52  Applyingthetheorytopoliticalsituations[edit] Theexit,voice,loyaltymodelcanbeusedtoexplainrelationshipsbetweennationstatesandtheircitizens.Themodelpredictsthatwhencitizenshaveacredibleexitthreatandstatesaredependentontheircitizens,statesarelesslikelytotakeactionsthatthecitizenswouldobjectto.Forthecaseofincreasedtaxationbythestate,examplesofcredibleexitthreatsincludehavingtheeconomicresourcestofleeortheabilitytoeasilyevadetaxes.Statesaresaidtobedependentontheircitizensiftheyvaluecitizenloyaltymorethantheyvaluethebenefitsthatwouldresultfromapolicychange.Whenbothofthesecriteriaaremet,themodelwouldpredictthatthestatewouldnotpursueapolicythatwouldencouragecitizenstoexitortousevoice.[10] Additionally,thechoicebetweenusingvoiceandexitingdependsonwhichmethodhastheleastamountofcostsandmostbenefits.InthecaseofAfricainprecolonialandearlycolonialtimes,citizensoftenchosetoexitinresponsetounfavorablepolicychangesandthisexitingtooktheformofemigratingawayfromastate.Evenwhencitizenscouldusevoice,exitingwasabetteroptionbecausetherewasalargeamountofopenlandthatcouldyieldbenefitsthatweresimilartothebenefitsobtainedbylivingwithinthestate.However,inthelasthundredyearstherehasbeenashiftinstrategyawayfrommigration(exit)andtowardsprotesting(voice)becauseitisnolongeraseasytofindopenlandtoexitto.[11] LoyaltyisanessentialforceforHirschman,shapingbothvoiceandexitespeciallywhenitisdifficulttojoinanorganization.[5]: 92 Inthecaseofthenewly-createdChinesemiddleclass,whichismostlyemployedbythestate,loyaltytotheauthoritariangovernmentisveryhigh.TheirloyaltyisboughtthroughthedifficultyinbeingadmittedtotheirpositionsofrelativefinancialprosperityandbecauseemigrationfromChinawouldresultinlosingsignificantstatusandincome.Thesemiddle-classcitizensarenotcompletelyvoiceless,however,astheywillprotesttheregime'schoicesthroughaprocessofremonstrationswheretheyblamethefailureofapolicyonimplementationbylower-levelofficialsratherthancriticizethepolicydirectly.Theregimeisalsoawarethatloyaltyisboughtatthepriceoffinancialstability;financialinstabilitybecauseofharmfulpolicieswouldresultinthesamekindsofwidespreadproteststhathappenedin1989.[12] HirschmanpostulatedthatcontrarytotheHotelling–Downsanalysisofpoliticalparticipation,thosewith"nowhereelsetogo"insteadofbeingmarginalized,theirvoiceswouldbecomeamplified.[5]: 72 Theriseofmoderncommunications'amplifyingeffectshasbackedupHirschman'spositiononvoice,asseenbytheriseoftheTeaParty.[13]Whencitizenscaneasilymobilize,thecostofmobilizationislowforthecitizensbuttheimpactofusingvoiceinamobilizedmannercanleadtoalargecostforthestate. Exitcanbeaneffectivestrategyforgaininggreaterpoliticalvoiceinthecaseofpublicgoods[5]: 98–105 InthecaseofMarriedWomen'sPropertyActsinthemid-19thcentury,USstatesandterritoriesexpandedpropertyrightstowomeninordertoattractmorewomentomovetotheirstatesandterritories.IntheNortheast,womenwereneededinlargenumberstoworkbothinindustryandasservants;theabilityforwomentoretaincontroloftheirearnedwagesandenterintocontractswasanadditionalpulltoencouragewomentochangeresidences.Similarly,competitionforwomenresidentsamongUSterritoriesinwhatisnowtheWesternUnitedStatesputpressureonlegislaturestopasslawsthatwouldattractandretainthesewomeninordertosecurethebenefitsofobtainingstatehood.[14] Applyingthetheorytoemploymentrelations[edit] Hirschman'sexit,voice,andloyaltyanalyticalframeworkhasunderpinnedimportantresearchwithinemploymentrelations.Hirschman'sinsightsthatexitandvoiceareoften,butnotalways,mutuallyexclusiveandthatloyaltywillmoderateaconsumer'schancesofvoicinganymisgivingsareusefulinexplainingthelinkbetweenworkplacepoliciesandoutcomes.[5]: 77–78  Therearedifferentformsofemployeevoice,includingindividualvoice,suchasemployeesurveys,andcollectivevoice,typicallyunions,aswellascombinationsofthem.Contrastingformsofvoicehavedifferentdegreesofpower.[15]AnassumptionthatconsumershavepowerunderpinsHirschman'soriginalframework.Forinstance,Hirschmanarguedthat,inmostinstances,onceconsumersor'customer-members'ofanorganizationhadvoicedtheirconcerns,decisionmakerswithinthesellingorganizationcouldbeexpectedtosearchforthesourcesofthosemisgivingsandattempttoremedythesituation.[5]: 40–41  Incomparisontocompetitiveconsumermarkets,theemploymentrelationshiprequiresadifferentapproachtopowerasmanagershavemoreauthoritythanlowerlevelemployees,[16]leadingtoimportantimplicationsforhowexit,voice,andloyaltyaretreatedwithintheemploymentcontext.Forinstance,insharpcontrasttoHirschman'sargumentthat,whereexitispossible,voiceislikelytobedeterminedby'theextenttowhichcustomer-membersarewillingtotradeoffthecertaintyofexitagainsttheuncertaintiesofanimprovementinadeterioratedproduct',[5]: 77 withinthecontextofemployment,howwillingemployeesaretotradeofftheuncertaintiesandcostsofexitagainstthecertaintiesofstayingwillstronglyinfluenceemployees'decisionstoquitaswellastovoicetheiropinions.[15]Similarly,loyaltyandvoicearenotpositivelyrelatedintheemploymentcontext.InHirschman'soriginalformulation,consumerswithhigherlevelsofloyaltyaremorelikelytovoicetheirpreferencestothesellingorganizationratherthanstopbuyingaproductorservice(exit).However,employeeswhovoicetheirconcernsmaybeseenasdisloyalorasadisruptiveinfluencebymanagers[17]leadingloyalemployeestoremainsilent.Forthisandotherreasons,aconceptof'neglect'needstosupplementHirschman'sexit,voice,andloyaltyframeworkwithintheemploymentcontext.[18][19]).Alternatively,'toleration'issometimesappliedtosituationsinwhichemployeesremainwiththeorganization,awareofproblems,yetdonotvoiceconcernorgrievance.[20] Teacherunionsnegotiateforbetterwagesandworkingconditions,butunionsalsoprovideaplatformfor“voice.”ChoiandChungfoundthattheunion-sponsoredsenseofvoicewascriticalinthereductionofteacherturnover.[21] Middlemanagersmayfeelcaughtbetweentworesponsibilities,especiallyduringperiodsoforganizationalchange:themandatetoremainloyalandthemandatetovoiceconcernsaboutchangesthattheyareobligedtoenforce.Gunnarsdóttirdescribedasituationinwhichmiddlemanagersonwelfareprofessionswereabletomaintaineffectiveautonomyandtheirperceivedsenseofloyaltybydispersingopposingoutlooksamongthegroup.[22] O'Meara,Bennett&Neihausdiscusswhatmight"pull"staffmembersawayfromtheirjob,oneexamplebeingbetterwages.Theyalsodiscusswhatmight"push"themawayfromtheirjob,oneexamplebeingthattheyareunhappywiththeircurrentworkcircumstances.[23]Thesefacultymembersareleavingforanumberofreasons.Moneyanduncomfortableworkingcircumstancesareexamples.Somemightnotbeabletotoleratenewleadership,orchangesinthewaytheyareexpectedtowork.Saifullah&Shahidasuggeststhatbothprofessionalrespectandemployer-employeerelationinfluencedtheemployees'loyalty,buttheeffectofemployer-employeewaslarger.Havingagoodrelationshipwithemployeeshasrealreactionsontheirloyalty.[24] Reception[edit] Hirschman'sbookhasbeenwidelyconsideredhighlyinfluential.[1][25]Summarizingseveralcriticismsofthebook,Dowdingwritesthatsomescholarshavearguedthatexitandvoicecanbeusedinunison(notsolelyasalternatives),thatHirschmandoesnotpayattentiontothewaysinwhichcollectiveactionproblemsshapeexitandvoicechoices,andthatloyaltycanalsoleadtosilenceratherthanexitandvoice.[1] In2019,ProfessorIanShapiroofYaleUniversitytoldaclassofundergraduates,graduatestudents,andcommunitymembers,"ifyoureadnootherbookinthesocialsciencesbeforeyougraduate,thisiscertainlyoneofthetwoorthreebooksyoushoulddefinitelyread."[26] Editions[edit] AlbertO.Hirschman.1970.Exit,Voice,andLoyalty:ResponsestoDeclineinFirms,Organizations,andStates.Cambridge,MA:HarvardUniversityPress.ISBN 0-674-27660-4(paper). Seealso[edit] Dollarvoting Exit-Voice-Loyalty-NeglectModel Footvoting TheOtherInvisibleHand Furtherreading[edit] SpecialissueofEmployeeResponsibilitiesandRightsJournalonExit,Voice,andLoyalty. References[edit] ^abcdDowding,Keith(2015-03-26).Lodge,Martin;Page,EdwardC;Balla,StevenJ(eds.)."AlbertO.Hirschman,Exit,VoiceandLoyalty:ResponsestoDeclineinFirms,Organizations,andStates".TheOxfordHandbookofClassicsinPublicPolicyandAdministration.doi:10.1093/oxfordhb/9780199646135.013.30.ISBN 978-0-19-964613-5. ^Hoffmann,ElizabethA.(2006)."ExitandVoice:OrganizationalLoyaltyandDisputeResolutionStrategies".SocialForces.84(4):2301–2318.doi:10.1353/sof.2006.0093. ^Dowding,Keith;John,Peter;Mergoupis,Thanos;VanVugt,Mark(2000)."Exit,voiceandloyalty:AnalyticandEmpiricalDevelopments".EuropeanJournalofPoliticalResearch.37(4):469–495.doi:10.1111/1475-6765.00522. ^Burgess,Katrina(Winter2012)."Migrants,Remittances,andPolitics:LoyaltyandVoiceafter"Exit""(PDF).TheFletcherForumofWorldAffairs.36,1. ^abcdefghiHirschman,AlbertO.(1970).Exit,voice,andloyalty :responsestodeclineinfirms,organizations,andstates.Cambridge,Massachusetts:HarvardUniversityPress.ISBN 0674276604. ^Hirschman,AlbertO.(1993):Exit,Voice,andtheFateoftheGermanDemocraticRepublic:AnEssayinConceptualHistory,in:WorldPolitics,45(2):173–202 ^Brubaker,Rogers(1990)."FrontierTheses:Exit,VoiceandLoyaltyinEastGermany"(PDF).MigrationWorld.18,3/4:12–17. ^Hoffmann,Bert(2010):BringingHirschmanBackIn:"Exit","Voice",and"Loyalty"inthePoliticsofTransnationalMigration;in:TheLatinAmericanist,54,2010,2,57–73 ^Dako-Gyeke,Mavis(16May2015)."ExploringtheMigrationIntentionsofGhanaianYouth:AQualitativeStudy".JournalofInternationalMigrationandIntegration.17(3):723–744.doi:10.1007/s12134-015-0435-z. ^Clark,WilliamRoberts;Golder,Matt;Golder,SonaN.(2013)."Powerandpolitics:insightsfromanexit,voice,andloyaltygame"(unpublishedmanuscript).p. 8.Retrieved27January2019. ^Herbst,Jeffrey(1990-01-01)."Migration,thePoliticsofProtest,andStateConsolidationinAfrica".AfricanAffairs.89(355):183–203.doi:10.1093/oxfordjournals.afraf.a098284.JSTOR 722241. ^Nathan,AndrewJ.(2016)."ThePuzzleoftheChineseMiddleClass".JournalofDemocracy.27(2):5–19.doi:10.1353/jod.2016.0027. ^Sethi,Rajiv(7April2010)."TheAstonishingVoiceofAlbertHirschman".thoughtsoneconomics,finance,crimeandidentity.Retrieved26January2019. ^Lemke,Jayme(2016)."InterjurisdictionalCompetitionandtheMarriedWomen'sPropertyActs".PublicChoice.166(3):291–313.doi:10.1007/s11127-016-0323-x. ^abAllen,M.M.C.(2014),'HirschmanandVoice',inA.Wilkinson,J.Donaghey,T.DundonandR.Freeman(eds),TheHandbookofResearchonEmployeeVoice,CheltenhamandNewYork:EdwardElgarPress,pp.36–51.doi:10.4337/9780857939272.00010 ^Hamilton,G.G.andFeenstra,R.C.(1997)'VarietiesofHierarchiesandMarkets:AnIntroduction',inM.Orru,N.W.BiggartandG.G.Hamilton(eds)TheEconomicOrganizationofEastAsianCapitalism,ThousandOaks,CA:Sage,pp.55–96. ^Upchurch,M.,M.Richardson,Tailby,S.Danford,A.andStewart,P.(2006)'EmployeeRepresentationandPartnershipintheNon-UnionSector:aParadoxofIntention?'HumanResourceManagementJournal,16(4):393-410. ^Donaghey,J.,Cullinane,N.,Dundon,T.andWilkinson,A.(2011),'ReconceptualisingEmployeeSilence:ProblemsandPrognosis',Work,EmploymentandSociety,25(1):51–67. ^Farrell,D.(1983)'Exit,Voice,Loyalty,andNeglectasResponsestoJobDissatisfaction:aMultidimensionalScalingStudy',TheAcademyofManagementJournal,26(4):596–607. ^Hoffmann,Elizabeth(2006)."ExitandVoice:OrganizationalLoyaltyandDisputeResolutionStrategies".SocialForces.84(4):2301–2318.doi:10.1353/sof.2006.0093. ^Choi,Yujin;Chung,IlHwan(22April2016)."VoiceEffectsofPublicSectorUnionsonTurnover".PublicPersonnelManagement.45(2):213–233.doi:10.1177/0091026016645063. ^Gunnarsdóttir,HuldaMjöll(1March2016)."AutonomyandEmotionManagement.Middlemanagersinwelfareprofessionsduringradicalorganizationalchange".NordicJournalofWorkingLifeStudies.6(1):87.doi:10.19154/njwls.v6i1.4887. ^O'Meara,KerryAnn;Bennett,JessicaChalk;Neihaus,Elizabeth(2016)."LeftUnsaid:TheRoleofWorkExpectationsandPsychologicalContractsinFacultyCareersandDeparture".TheReviewofHigherEducation.39(2):269–297.doi:10.1353/rhe.2016.0007. ^Saifullah,Aamir;Sajjad,Shahida(June2016)."IntraOrganizationalFactorsthatImpactEmployee'sLoyalty".JournalofBusinessStrategies.10(1):129–146.ProQuest 1815438193. ^Ossandón,José(2021-03-22)."Hirschman'sExit,Voice,andLoyaltyandcontemporaryeconomicsociology".JournalofCulturalEconomy:1–8.doi:10.1080/17530350.2021.1891952.ISSN 1753-0350. ^Shapiro,Ian.youtube.YaleUniversityhttps://www.youtube.com/watch?v=f5nbT4xQqwI.Archivedfromtheoriginalon2021-12-13.Retrieved28May2020.Missingorempty|title=(help) Authoritycontrol IntegratedAuthorityFile(Germany) Retrievedfrom"https://en.wikipedia.org/w/index.php?title=Exit,_Voice,_and_Loyalty&oldid=1060198922" 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