Exit, Voice, and Loyalty: Responses to Decline in Firms, Organizations, and States

Exit Voice and Loyalty Responses to Decline in Firms Organizations and States An innovator in contemporary thought on economic and political development looks here at decline rather than growth Albert O Hirschman makes a basic distinction between alternative ways of reacting to

  • Title: Exit, Voice, and Loyalty: Responses to Decline in Firms, Organizations, and States
  • Author: Albert O. Hirschman
  • ISBN: 9780674276604
  • Page: 278
  • Format: Paperback
  • An innovator in contemporary thought on economic and political development looks here at decline rather than growth Albert O Hirschman makes a basic distinction between alternative ways of reacting to deterioration in business firms and, in general, to dissatisfaction with organizations one, exit, is for the member to quit the organization or for the customer to switcAn innovator in contemporary thought on economic and political development looks here at decline rather than growth Albert O Hirschman makes a basic distinction between alternative ways of reacting to deterioration in business firms and, in general, to dissatisfaction with organizations one, exit, is for the member to quit the organization or for the customer to switch to the competing product, and the other, voice, is for members or customers to agitate and exert influence for change from within The efficiency of the competitive mechanism, with its total reliance on exit, is questioned for certain important situations As exit often undercuts voice while being unable to counteract decline, loyalty is seen in the function of retarding exit and of permitting voice to play its proper role The interplay of the three concepts turns out to illuminate a wide range of economic, social, and political phenomena As the author states in the preface, having found my own unifying way of looking at issues as diverse as competition and the two party system, divorce and the American character, black power and the failure of unhappy top officials to resign over Vietnam, I decided to let myself go a little.

    • ☆ Exit, Voice, and Loyalty: Responses to Decline in Firms, Organizations, and States || ↠ PDF Read by ✓ Albert O. Hirschman
      278 Albert O. Hirschman
    • thumbnail Title: ☆ Exit, Voice, and Loyalty: Responses to Decline in Firms, Organizations, and States || ↠ PDF Read by ✓ Albert O. Hirschman
      Posted by:Albert O. Hirschman
      Published :2019-03-07T22:31:44+00:00

    1 thought on “Exit, Voice, and Loyalty: Responses to Decline in Firms, Organizations, and States”

    1. Here is a short, incisive, and broad work which applies to businesses and political scientists. When a company or polity is in a state of relative decline, Hirschmann says there two options: 'exit', by switching to a competitor, and 'voice', which means staying and complaining. Both these have their advantages and disadvantages. Switching to a competitor is a major option for dissatisfied customers, and it can create an incentive for reform in certain instances. However, this might not always be [...]

    2. I don't know where I read or how I heard that this was a mind-blowing read, but the book has been on my shelf forever and I kept meaning to get around to it when I had the chance. There should have been no rush.The book is mercifully short, more of a philosophical pamphlet than anything else, and it presents itself as what was then (in 1970) a surprising speculative foray by an economist into political science. In this book, Hirschman compares and contrasts two strategies to decline in a product [...]

    3. This little book has been on my to-read list for a while, but I was finally prompted to pick it up by the recent death of Albert Hirschman. I'm very glad I did. The concepts of "exit" and "voice" have percolated into culture enough that I went into the book kind of feeling like I already knew what it was about, and in a sense I did. Nonetheless, I really enjoyed reading it. Hirschman is a supremely clear thinker and writer. When he makes an argument, he usually refrains from employing equations, [...]

    4. The book looks at the economic incentives of dissent, characterizing consumers as agents who have different levels of emotional investment in the quality of a product or a service (the product can also be membership in an organization, such as a state or a religion), and who react to random quality lapses in the market via two main channels: (a) exit (switching to a competitor), and (b) voice (complaining, becoming politically engaged, and campaigning). The break-even point between the two is in [...]

    5. I read this book on Nick's strong recommendation (and lucky me, I also benefited from his marginalia). He had pitched it to me as an economist's very clear rendering of the interplay among "exit, voice, and loyalty," ideas extremely applicable to contemporary education reform. I actually found Hirschman to be a little bit difficult to follow - but that's with my high school-level of economics knowledge. I was, though, intrigued by Hirschman's use of school choice as an illustration of "exit" (le [...]

    6. Based on what at first appear to be three overly-simple concepts: "Exit", "Voice", and "Loyalty", Hirschman manages to model and illuminate a wide range of phenomena from the domains of economics, politics, and management. Some of the debates raging at the time his book was published (late 1960s, early 70s) seem just as alive and unresolved today, e.g whether public school vouchers (a form of Exit) should lead to higher performance through competition or lower performance through siphoning off t [...]

    7. This is one of those quiet classics of social science and should be familiar to every student of organizations, policy, community or public affairs. Hirshman's sensible argument is that when faced with a decision or policy you disagree with or doubt, you can leave (exit), disagree (voice) or be a good follower and go along quietly (loyalty). also shows a 46 page Reconsideration of Hirschman's text by Ulrich Arnswald, but I've not been able to track it down.

    8. This is one of those rare books that - despite their deceptive simplicity - contains a fundamental and timeless truth. Hirschman's essential argument is (1) that economic and political/sociological analysis can achieve much more in combination than as separate undertakings; (2) that economic theory has ignored the vital question of quality (as opposed to price and quantity). Both valid points.His simple yet powerful analytical framework explores how quality deterioration can best be adressed thr [...]

    9. The central ideas developed in this book - 'exit', 'voice', and 'loyalty' - are tremendously useful for reasoning about the nature and dynamics of organizations. The book itself -- even at its meagre length -- felt far too long. The crux of the ideas can simply be explained more-than-adequately in a handful of pages (the article will suffice, really).The book did add a few observations that I found improved my thinking on the subject. The explicit assertion that 'exit' tends to crowd out 'voice [...]

    10. This is classic economics that becomes useful for the layman when applied to situations where one is dissatisfied with a product, a company, a country, a political party, a religion, even a family.Does one take off when there seems to no longer be any benefit or quality there for them?Does one file a complaint, or speak out, or protest while remaining within?What is the best way to find improvement and progress for organizations that are unwilling to make changes? Especially organizations wherei [...]

    11. It obviously gives an important framework for understanding feedback mechanisms in economics, but kind of like "Metaphors We Live By" could probably be condensed into a much shorter volume.

    12. Alright at risk of sounding like some uneducated visagoth (sp?), I'm giving this a whooping 2-stars. While I appreciate stream-of-consciousness theory as much as the next guy in conversation, I don't much appreciate it when it's in book form and is not very insightful/surprising and spends 100+ pages rehashing the same thing. I don't know if this is more outdated than anything, but I wasn't very impressed. Back when this was published, however, I'm sure it made more of an impression.Sorry Hirsch [...]

    13. This is a gem of a book. Hirschman has a tremendous eye for counterintuitive and ironic possibilities--in this book, it is an unusual view about the relationship between economic growth and behavior. Most of us assume, as Hirschman says, that developed capitalism is filled with tension and strivers. The model of the profit-maximizing firm is a model that assumes firms are constantly struggling against the PPF. Instead, Hirschman suggests, developed capitalism reduces the price we pay for slackin [...]

    14. I have been encountering so many references to this book that my lack of familiarity with the source became an embarrassing liability. Glad I picked it up. Nominally this is an depth dive into organizations' responses to quality deterioration via exit and/or voice under modulating effects of loyalty. But since "organizations" can be states, firms or political parties the discussions of various trade offs touch upon a broad array of issues in a number of domains, so there is something in it for e [...]

    15. Excellent piece of theoretical scholarship that hold up very well even after more than 40 years since its writing. Hirschman argues that consumers and, more general, members of organizations have two approaches to react to decreasing levels of quality with a product or an organization: (1) Exit, (2) Voice. He then goes on to discuss various constellations under either option would be either beneficial or detrimental in working as a signal to get a product or organization back in shape. Hirschman [...]

    16. In this book (written in the mid-1960s), Hirschman contrasts two ways of resolving customer dissatisfaction with performance by an organization. These are 1. the way economics see the solution - exit, as in buy from another seller, and 2. the way political science does - voice, as in protest or complaint. In the past forty years, the intellectual and policy trend has been to favor increasingly the former. We now generally take market solutions as the answer to many public policy issues. The auth [...]

    17. i just finished reading this for a class i'm taking, and it's something that's been recommended by other teachers for necessary reading for awhile now. hirschman's theory is a heavy political economic explanation of the forces that make people stay in a place, voice their concerns in order to change things, or just get up and leave what drives people's desires? how do we measure the value one feels for a particular place (or product), and how is loyalty for a place created and sustained?it's a l [...]

    18. Although mercifully short and jargon free, this still felt like a turgid and belabored treatment of an insight that probably seemed a lot fresher when Hirschman first made it over 40 years ago. In E,V, & L, Hirschman explores the circumstances in which economic and political actors will favor "exit" (leaving or ceasing to deal with and organization) or "voice" (active expression of discontent within the organization) when confronted by a decline in an organization. This one of those books th [...]

    19. I found the introduction chapter a bit difficult to follow, but the following chapters very clearly explained how private firms, public organizations, and policy-makers respond to individuals "exiting" vs. using their "voice." I read this as part of an Economics of Education course and it was helpful that some of Hirschman's examples explicitly dealt with public education. As a student of public policy, I am surprised this was the first I have read of Hirshman's work--it seems very relevant to p [...]

    20. Clear commentary on social processes. Leaves out some options (revolution, corruption, etc.), but, that's appropriate. These left out options are, unfortunately, operative in the same firms, organizations, and states. Perhaps the author would follow-up this book with a discussion of those options he omitted. Well written discussion of the usual approaches to change. Recommended for thoughtful readers.

    21. From a colleague, March 2014:Just attended a talk at the GEO conference on "Master Narratives: The Stories that Move Americans", where Andy Goodman argued that "if you're in the changing-the-world business, then you're in the changing-stories business", and that "if you're telling stories to change minds, then you have to know what stories are already in those minds." He also suggested 4 great books that describe the narratives that dominate the American 'psyche.'This is book 3 of 4.

    22. Horseman is not a typical economist obsessed with technical issues, rather a great thinker and a philosopher. The story this book told is simple: If you are dissatisfied with the organization and the state, either voice your anger to them with a belief that it will help, or just leave and quit for a new one. But what if you are in place like North Korea? We will have neither option, which is so sad.

    23. This was one of the first books I ever read in grad school. Even though it is about 30 years old, it still hold relevance in today's world. It talks about consumers and their ability to exit (switch companies/products), show their voice (air grievances), or display loyalty. This is a fascinating book and a must-read for all business students.

    24. The book looks at voice as one of a range of options people in organizations have at their disposal when they become dissatisfied. While I think it is a structurally focused examination of voice that limits the agency of organizational members, it is a foundational read for those interested in how voice works in organizations - particularly for-profit orgs.

    25. I read it for school, not for fun, but I think the insights are invaluable to anyone thinking about how people interact with deteriorating institutions. Hirschman extends the neoclassical understanding of "exit" to the lesser understood realms of "voice" and "loyalty."

    26. I first read Hirschman's classic in 2007 while researching for my Bachelor Thesis on whistle blowing in declinging organizations. It is still a classic on human behavior in social situations where the individual is discontent.

    27. Applicable to economic and political systems as well as smaller interactions. Concise and engaging. I should really reread this.

    Leave a Reply

    Your email address will not be published. Required fields are marked *