MN2018: MANAGEMENT, THEORY AND DEBATE - Lecture One: Varieties of Capitalism?

Flashcards based on lecture notes discussing Varieties of Capitalism.

What is the purpose of theory in the social sciences, according to the lecture?

Theory in the social sciences is about abstraction, observing rules, laws, or tendencies to allow us to generalize.

What is the Varieties of Capitalism thesis?

It's a framework that examines how organizations and managers operate within broader economic and social frameworks (e.g., laws, cultural values) which shape possibilities and desires.

According to Francis Fukuyama, what did the fall of the Soviet Union represent?

The end of challenges to capitalism and the end of history as a force that changes the fundamentals of society.

What are the two models of economy that Hall et al propose in Varieties of Capitalism?

Liberal Market Economies (LMEs) and Co-ordinated Market Economies (CMEs).

How are Liberal Market Economies (LMEs) characterized?

By (neo)liberal ideas such as free markets, little state regulation, and private forms of social welfare.

How are Co-ordinated Market Economies (CMEs) characterized?

By state regulation of the market, nationalized healthcare and essential services, and industrial democracy.

In the context of Industrial Relations, how are LMEs different from CMEs?

LMEs base industrial relations on market relations and contracts, whereas CMEs recognize the divide between capital and labor and practice collective bargaining.

What are some characteristics of the US as a Liberal Market Economy (LME)?

Little state intervention, company-led innovation, easier investment in limited liability companies, restricted labour organisation, and no maximum working week.

How is German Industrial Democracy an example of a Co-ordinated Market Economy (CME)?

Through legislation mandating worker representation on supervisory boards of companies.

What historical perspective do supporters of the Varieties of Capitalism thesis emphasize?

The gradual development of both LMEs and CMEs and marginalize present-day challenges.

What is a critique of Varieties of Capitalism regarding labor organization?

The election of the Thatcher government in 1979 saw business enthusiastically turn against CME institutions.

How does the Japanese economy challenge the Varieties of Capitalism thesis?

Despite being a CME, Japan has significant inequality and has faced pressures towards de-regulation.

What is ideology, in the context of neoliberal capitalism?

A world-view that seeks to explain how the human world should be organized via principles like the free market and individualism.

What is Fulcher's concept of anarchic capitalism?

The activities of capitalist entrepreneurs were relatively unchecked by organized labour or the state.

How does Fulcher describe managed capitalism?

Class organization where both employers and workers organize the economy, the state provides education and healthcare and Professional management becomes part of the landscape of capitalism.

What is remarketized capitalism according to Fulcher?

Essentially neoliberal capitalism, justified by economic problems, leading to the repeal of Keynesian economics and the sale of nationalised industries.