4 ms·
I think the problem is both broader and simpler. There's an economic term for it, but i don't recall what it is. Basically, the whole of capitalism depends on
by ljw1001 7y ago
I think the problem is both broader and simpler. There's an economic term for it, but i don't recall what it is.
Basically, the whole of capitalism depends on the idea that individual incentives (for employees) can be aligned with organizational goals. Often, however, employees realize they can make more money by putting their efforts into getting a bigger slice of the pie instead of working to make the pie bigger. This is always true to some degree, and especially true for big, rich companies with low growth rates.
Outside of the economic theory, I suspect that people who make to the executive level are most likely to have engaged in this kind of behavior, since getting promoted is one of the best ways to get a bigger slice.
- einpoklum 7y ago> the whole of capitalism depends on the idea that individual incentives (for employees) can be aligned with organizational goals And here I was thinking it relied on the capital-owners having the state use its centralized coercive power (like the police and the military) to enforce the capital-owners' property rights. Silly me.