SOSC 300 K

1
SOSC 300 K

• Mid-term Review

2
Economic Principles in Everyday Life

• Adam Smiths Self-regulating Market
• Market price is regulated by supply and demand
  (effectual demand)

• Karl Polanyis Comments
• The Smithian self-regulating market was a
  product of a particular political-economic
  setting during the late eighteenth and early
  twentieth centuries
• A self-regulating market demands the
  institutional separation of society into an
  economic and political sphere Such an
  institutional pattern could not function unless
  society was somehow subordinated to its
  requirements.

3
Mark Granovetters Embeddedness

• Nature of Market Imperfect competition
• Social relations, rather than institutional
  arrangements or generalized morality, are mainly
  responsible for the production of trust in
  economic life. Networks of relations are the
  structure that fulfills the function of
  sustaining order

• Inter-personal Relationship trust and
  malfeasance
• As O. Williamson discussion on transaction
  costtransaction through either market process of
  within hierarchical enterprise would lead to
  different forms of transaction costs,
  interpersonal relationship would likewise
  generate problems such as malfeasance
  (misconducts, cheating, disorder)

4
Technology in Economic Life

• Taylorist scientific management in Harry
  Bravermans interpretation
• The ideas Workers who are controlled only by
  general orders and discipline are NOT adequately
  controlled, because they retain their grip on the
  actual processes of labor. The control over work
  through the control over the decisions that are
  made in the course of work
• Three principles

• Fordism
• A fair days work for a fair days pay
• Labor unions became legal wage-bargaining organ
  from the 1930s
• Michael Burawoys Hegemonic control and
  industrial citizenship
• The decline of Fordism in 1970s U. S.

5
Bureaucratic Organization--Bureaucratic
Administration and Craft Administration

• Bureaucratic Admin.
• Communicating work decisions and standards
  through an administrative apparatus
• Both the product and work process are planned in
  advance by persons NOT on the work crew but by
  managers or administrative staffs

• Craft Administration (e. g. Construction
  industry)
• Work decisions and standards (such as the control
  of pace, manual skill, and effective operative
  decision) are set up by first-line construction
  workers
• Internal differentiation of authority structure
  is low (low proportion of people in
  administrative personnel, low professionalization
  of authority)

6
Patterns of Industrial Organization

• 1. Different patterns of industrial organization
  in S. Korea, Japan and Taiwan after W. W. II.

• 2. Three explanatory models
• A. Market Explanation
• B. Culture Explanation
• C. Authority Explanation
• State-society relationship
• Different legitimizing strategies (how the state
  could legitimize its control) after W. W. II.
• The firm is embedded in networks of
  institutionalized relationship