Individual Research Report
Explain and discuss how the EVLN model helps an organisation to understand an employee's response to job dissatisfaction?
The book of American economist Albert O. Hirschman "Exit, voice and loyalty" which was released in 1970 is a classic attempt to understand human behavior, faced with a deteriorating quality of services they consume, whether it is goods that they buy, the company in which they work or the policy of the state in which they live. The universal model built by Hirschman is a vivid example of an idea whose significance goes far beyond the scope of the author and whose influence continues to be felt ...view middle of the document...
There is an organization and there are its citizens: residents, staff offices, customers, accustomed to the goods of a particular firm. When something is happening in a company so its customers are dissatisfied, they can express their dissatisfaction in two ways - either leave it ("exit") or protest ("voice"). Residents who are dissatisfied with the government can begin to build barricades, or may emigrate. An employee who does not like what is happening in his department or company can complain, or can retire. A buyer disillusioned in production of a company can write an angry letter, or can simply switch to another manufacturer's products. Both actions of customers either protest, or leaving, leads to the costs for the organization and, therefore, create incentives for organizations to satisfy their customers.
The "exit" and "voice" are completely different. For the "exit" the decision of the individual plays an important role; whereas the "voice" is effective only when there is the protest of many united individuals. "Exit" is the "invisible hand", which reduces the price of the goods to which consumers lose interest, thus forcing producers to work better. "The Voice" is a collective response, or at least the collective signal of the need to coordinate efforts, search "focal point."
The most important feature of the "exit" is that the first in these situations leave those consumers for whom the quality is most important. For example, in the United States, the first who leave public schools are precisely those "clients" who are most interested in improving the quality of education. When they "transfer" to the private schools, other customers who are still in public schools are less demanding on the quality and therefore the management of the public school does not receive the "signal" about the necessary changes. If there were no alternative in the form of private schools, parents who are not satisfied with the quality of education would raise the noise and begin to influence the management of public schools. Thus, "the consumer who is not very sensitive to increased price is often highly sensitive to a drop in quality" - noticed Hirschman.
In this era of protest it was quite certain that dissatisfied consumers (or members of organizations) are able to "make a noise" and achieve improved quality of goods or services from negligent managers. For the client or member of the organization the appeal to the "voice", and not to "exit" is an attempt to change the order of activities, the direction and production of the company. In order to fix their disagreement with the way things are going in such organizations, one must make sure that his voice was somehow heard.
"Voice" is not any attempt to leave, but to change undesirable situations by means of individual or collective call for the immediate supervisor, or by using different types of actions and protests, including those aimed at mobilizing public opinion.
"Voice" and "exit"...