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Toto, We're Not In Taylorite America Anymore
By Ed Driscoll · December 6, 2005 09:01 AM · Capitalism, the Unknown Ideal

On his spiffy new Weblog, Michael Barone compares and contrasts the hiring practices of Wal-Mart and General Motors. He finds Wal-Mart coming out ahead because it's not stuck in a 1930s-era labor model:

[Back in the 1930s] management micromanaged workers according to the work-study principles of Frederick W. Taylor, who saw workers as mechanical cogs who should have zero initiative and instead should perform their jobs in the way that time-study experts determined was most efficient. (On Taylor, see the excellent biography by Robert Kanigel, The One Best Way: Frederick Winslow Taylor and the Enigma of Efficiency.) Workers and union representatives argued, plausibly, that these experts were demanding too much work per hour or minute. The workers, union leaders argued, again plausibly, needed someone to represent their interests against the demands of the efficiency experts.

But as Wal-Mart executives might argue, Toto, we're not in Taylorite America anymore. Wal-Mart certainly isn't. Wal-Mart does a superb job of keeping track of inventory and sales and putting on its shelves products consumers want. But it also encourages employees to go out of their way to help customers—to show initiative in their work. Those who do a good job can hope to get management jobs.

Wal-Mart critics look back to post-World War II America and express nostalgia for what they call the family wage. It was assumed that all workers were men who were the heads of families, who needed and wanted a job that would pay enough to raise their families, who sought to retire as soon as possible (remember, workers hated those Taylorite jobs) on a decent pension. A much smaller percentage of working-age Americans were in the labor force in those days, and very few of them were women. At the same time, the divorce rate was much lower, and so there were very few women in need of a job to support their families. Also, much lower percentages of those above 65 worked or wanted to work. There were many more jobs involving hard physical labor, and many men were physically worn out even before reaching 65.

We live in a different America today. Many men in their older years and many women of all ages want part-time work; Wal-Mart has jobs for them. Many adults have not done particularly well in our schools but still want a chance to rise in their jobs; Wal-Mart has opportunities for them. Many workers don't need expensive health insurance, because their spouses have it, or because they're eligible for Medicare; Wal-Mart doesn't force them to forgo wages in order to pay for an expensive healthcare package.

So the Wal-Mart flexible model is more responsive to the needs and desires of the work force than the one-size-fits-all General Motors model. Certainly, Wal-Mart provides a lot more jobs than General Motors does. And, of course, Wal-Mart has done yeoman work of providing low prices for consumers—and especially for low-income consumers. You may not like Wal-Mart—and, remember, no one can force anyone to shop there—but it does seem more in sync with the way America works today than does General Motors.

Via Betsy Newmark, who writes that "most of the activity against Wal-Mart is sponsored by the unions that are upset about not being able to unionize Wal-Mart's work".


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