Introduction

The labor process theory depicts the organization of work within a capitalist setting. It is based on the concepts of Marxism and explores the processes through which labor is objectified to become something useful in production. According to Spencer, (2000, p. 231) the theory assumes that process of labor has three elements namely: work, objects, and instruments. The labor process is therefore a purposeful undertaking geared towards the generation of use values. In other words, the process of labor is simply the organization of work within an entity or organization. The labor process theory is concerned with the way people work, the skills used in work, the controllers of the work process and how people are paid for their work. In the modern era, the labor segment is an increasingly important aspect of any organization as it determines the productivity and sustainability of the organization. Accordingly, the theory provides important insights into the functioning of modern organizations.

The structure of any organization portrays the general relationship between the organization and the people involved in it. For the smooth running of an organization, different jobs are required to complement the different functions available (Kitay, 1997, p. 7). The interrelations between different employees in different departments help in the normal flow of work within an organization. Since all organizations are based around the connections between different processes of work, an understanding of the labor process helps in debunking modern organizations. Indeed, all the classifications of organizational structures are based around the concept of labor processes. For instance, an organization may be classified based on the assembly of people into different teams of departments. On the other hand, organizations can also be classified through the hierarchy of different organizations and the number of employees reporting to any one boss. All these classifications are best understood through a dissection of the labor process theory.

Literature Review

Perhaps the most interesting contribution of the labor process theory is its ability to paint the rationality of technique as something that is not neutral in today’s modern organizations. In fact, the theory takes on the domination of class within modern organizations thus showing a clear picture of the nature of these organizations. It is no wonder that the labor process theory was the most popular reference point within the 1980s (Hassard et al., 2001, p. 347). The labor process as explained in Marxist theory is basically an underlying process of transforming natural resources into finished products that have use value. The theory explains the functioning of organizations in a capitalist society by classifying people according to their different roles in production. Indeed, wage workers are tasked with the duty of producing enough products to sustain the company and its owners as well as themselves. In truth, such is the basis on which capitalist modern organizations are structure.

According to the theory, human life is principled around labor which is also the primary means of development and existence. As such, every individual must explore their abilities and strengths in obtaining societal benefits. In today’s modern society, organizations are structured in a manner that exploits these abilities including diligence and persistence. The Marxist theory insinuates that the use of people’s abilities for the benefit of the organization is nothing but an exploitation of sorts (Kaufman, 2004, p. 87). Indeed, capitalism is a setting through which productive workers are exploited by the non-productive workers in pursuing larger surplus value. It is not surprising, therefore, that modern organizations have a tendency of contract manufacturing in countries that offer lower wages thus maximizing their profits. In the end, such strategies are largely exploitative as they benefit the owners of the companies at the expense of the working class. Even when companies succeed through long hours of productivity, the top management accrues most of the profits through hefty salaries while the productive workers are paid peanuts.

The labor process theory as advanced by Braverman suggests that capitalist labor can only deskill the workers through exploitation. Indeed, such is the modern treatment of the workforce where individuals are being replaced by machines and technology. The current organizations are inclined towards absorption of science and technology at the expense of the working class. Normally, the disguise for employment of technology is to cut the costs of production. Today, the tasks of a worker are determined through the process of scientific management thus using technology to replace the value of workers (Adler, 2006, 172). Traditionally, and in the absence of machines, the value of a worker was determined through their skills and abilities. However, with the deskilling of these workers, the non-productive workers now have an excuse for using machines in place of the workers to increase efficiency. Through the deskilling of workers, modern organizations have attained more control in determining the cost of labor. The labor process theory is perfectly at play within modern organizations thus helping in the understanding of their structure and functions.

The labor process theory is also directly influential in the structure of different management styles. While autocratic management styles have the decision making process squarely within the top management, democratic management styles encourage the involvement of low tier employees in the process (Rowlinson & Hassard, 1994, p. 87). Regardless of the management style in use in an organization, the role of the employees is almost identifiable from the onset. In addition, the labor process theory depicts employees as tools of production that are purely motivated by money. It fails to look into motivation factors affecting employees other than their salaries and wages. This is the case with most organizations in the modern era where salaries are structured based on the perceived level of the employee. In the end, most employees are unable to develop and improve their lives in ways other than through the use of the wages attained in the process of production. In this fashion, the labor process theory is useful in depicting the functions of modern organizations based on their treatment of employees.

The structure and management of any organization is adequately explained using the labor process theory. This understanding is positively attained through an exploration of the organizational goal and objective. For example, an understanding of a company’s organizational goal is tied to its implementation of cost leadership (Thompson & Newsome, 2004, p. 145). Consequently, companies that employ cost leadership strategies are likely to use strict cost controls including the payment of wages. As such, these companies are bound to cut the remuneration wages of their employees in line with the organizational goal. In today’s society, almost all companies are on a cost cutting trajectory built around their organizational goals. Eventually, the low tier employees that are involved in the actual production suffer through underpayment and deskilling (Sawchuk, 2006, p. 257). In Japan, for instance, companies have grown in stature owing to an implementation of cost leadership strategies. Companies including Toyota have attained high levels of competitiveness through reduction of costs of production at the expense of their employees. This is just but a single example of an increasingly applied strategy that is detrimental to the employees involved in the actual production.

Another pointer to the understanding of the modern organization is their functions with regard to total quality management. Indeed, all reputable modern organizations appreciate the role of total quality management systems in maintain a competitive edge. However, the application of these systems moves the knowledge of the workers into a labor process that is centrally controlled by the managers (Tinker, 2002, p. 264). Part of the reason for the centralization trend is the attainment of standardizations across all productions thus maintaining high quality products viable in the market. The current shift in organization’s focus is bets explained through the labor process theory whereby organizations treat employees as tools of production. Modern organizations are ready to do anything that improves their external reputation and competitiveness at the expense of their employees. These developments are perfectly articulated in the Marxist theory which depicts employees as channels of production that must be exploited to attain societal benefits. In addition, the current setting provides for the exploitation of the productive employees.

Thompson & Smith, (2000, p. 51) the labor process theory depicts organizations as striving to achieve power that is centralized and concentrated at the management level. This is the basic idea around modern organizations across the world. Eventually, the setup results in the degradation and deskilling of workers through exploitation and replacement by machines and technology. The labor process theory did in fact suggest that the competitive nature of capitalism would result in the deskilling of workers as is being witnessed in modern organizations. The concept of capitalism is only advanced through a focus on the centralization of power and control around the top management. The challenges facing modern organizations are envisaged in the labor process theory through the perceived deskilling of employees (Alvesson et al., 2009, p. 332). Indeed, the very nature of capitalism is a breeding ground for organizations profitability and sustenance. The modern organization is focused on a transformation of the labor process into profitability; normally at the expense of the workers. Also, organizations tend to encourage team based environments that can achieve much more profitability for the companies. Indeed, the sole goal of the organizations is to attain more profitability through the exploitation of the workers’ abilities and strengths.

Although initially introduced by Marx, the theory has applications in modern organization and particularly with reference to their structure and functions. In part, the theory focuses on the different employees within an organization and the roles they play towards the productivity of the organization (O’Doherty & Willmott, 2001, p. 462). On one hand, the skilled laborers otherwise known as the productive workers are actively involved in the actual production. The process of work is actually initiated by this class of employees who transform natural resources into products that have utility. However, the management that is rarely involved in the actual production of products controls the process of work at the expense of the skilled workers. In this regard, the managers have the final decision regarding the processes to be employed or the level of output and input to be used in an organization. In modern organizations, the skilled workers are exploited by the management despite having to do the bulk of the work. In this respect, they are paid low wages while their counterparts at the management level enjoy hefty perks from the hard work of skilled employees.

Conclusion

It is clear that the functioning of modern organization sis best understood through the labor process theory as proposed by Marx. Indeed, the theory provides important insights into the different management styles in use across different organizations. Every aspect of the modern organization is based around the human capital and the process of labor. The labor process theory is therefore important in the determination of a workforce’s labor power (Rowlinson & Hassard, 1994, p. 69). Moreover, the theory further explains the functioning of modern organizations with regard to their strategies and organizational goals. All these factors have a hand in the determination of the functions of any organization. It is also important in understanding the centralization of power among the management level in modern organizations.

The labor process theory as advanced by Marx paints an accurate picture of the functioning of modern organizations within capitalism societies. The different processes of labor objectification are resonant with the current functioning of modern organizations including the work itself, the workers and the objects or materials. By focusing on the way people are managed within organizations as well as the skills used in the process of work, the theory provides insights into the daily functions of any organization (Phelan, 2007, p. 46). Further, the use of the theory is useful in painting an image of the relationship between different workers in different departments within an organization. Particularly, all organizations in their modernity are based on the role of workers in transforming raw materials into finished products that have utility. By exploring this channel of capitalism, the theory thus helps in better understanding the functioning of modern organizations.

References

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Kaufman, B.E., 2004. Theoretical perspectives on work and the employment relationship. Cornell University Press.

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Rowlinson, M. and Hassard, J., 2000. Marxist political economy, revolutionary politics, and labor process theory. International Studies of Management & Organization, 30(4), pp.85-111.

Sawchuk, P.H., 2006. Activity and power. Critical perspectives on activity: Explorations across education, work and everyday Life, pp.238-268.

Spencer, D.A., 2000. Braverman and the contribution of labour process analysis to the critique of capitalist production-Twenty-five years on. Work, Employment & Society, 14(2), pp.223-243.

Thompson, P. and Newsome, K., 2004. Labor process theory, work, and the employment relation. Theoretical perspectives on work and the employment relationship, pp.133-162.

Thompson, P. and Smith, C., 2000. Follow the redbrick road: Reflections on pathways in and out of the labor process debate. International Studies of Management & Organization, 30(4), pp.40-67.

Tinker, T., 2002. Spectres of Marx and Braverman in the twilight of postmodernist labour process research. Work, employment and society, 16(2), pp.251-281.

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