Neoliberalism and Work



Neoliberalism and Work

Neoliberalism代写 In this regard, this paper will focus on the impact of neoliberalism on the organization of work and employees.



It is often to hear a person in New Zealand throw a sentiment such as “if you cannot make it in New Zealand. Then there must be something wrong with you” (Marcetic, 2017). New Zealand has been used as a laboratory in which the neoliberalism culture has been tested, and people seem comfortable with it. However, recently decision shapers began to protest for the change to a more social democratic policies. Which allow the government to intervene to protect the interest of the people and the economy.

In this context, neoliberalism is an economic ideology that exists within the framework of capitalism (Cross, 2017). The ideology claims free operation of the market where there is freedom of choice in demand and supply of goods and services and more so labor market and production. In this regard, this paper will focus on the impact of neoliberalism on the organization of work and employees. It will also explore the assumptions that the neoliberal ideology promotes and these assumptions shape and structure the organization of work.

Impact of Neoliberalism on Organization of Work and Employees  Neoliberalism代写

In the assessment of neoliberalism under this subtopic, perhaps the most profound international example of the effects of neoliberalism is the Fletcher Building Limited. Which has been performing poorly and making high losses each year. Fletcher Building Limited is an incorporated company based in New Zealand in Auckland. It is one of the largest companies in the country employing thousands of workers.

The company has been hitting the headlines on it poor returns due to losses. In the year ending 2018, the company has been listed one of the worse performings according to NZX50 Index (Gaynor, 2018). One of the attributed reasons for poor performance is a neoliberal ideology. That has been allowed to thrive in New Zealand (Cooke, 2017). The product of the neoliberal market is the social elite class determining the direction of the business and the economy as a whole to maximize on profits.

In the above case  Neoliberalism代写

The development and use of neoliberalism ideologies have a widespread impact not only on the whole economies but also the functioning of the organization employment and workforce (Dean, 2014). The principle of neoliberalism states that the best way to distribute resource effectively and efficiently to any organization is through the unrestricted market. The ideology of the free market is applied at the national level, organizational level, and individual level in New Zealand.

At the national level, the neoliberalism restricts the government intervention in the market regulation. Remove the restriction in the demand and supply of good and money. Encourage privatization of the government corporations, restrict collective bargaining in the labor force. This ideology has been transferred in the modern organization which dictates how they function and the decision is made. As such, the organization has the discretion to hire and fire workers as need be as well as reward them individually (Bal, & Rousseau, 2015). The primary aim of neoliberal ideology is to maximize the profits, enhance workers creativity, productivity, and growth.

The success of neoliberalism success has been debated, and the actual impact in the organizations can be said to be mixed.  Neoliberalism代写

In New Zealand, there are concerns that the ideology has been the result of various economic and businesses downturns (Cooke, 2017). In Latin America, the market-focused policies are credited for the economic expansion (Ruckert, Macdonald, & Proulx, 2017). However, recently they have been replaced by better options that offer improved performance than neoliberal. The same case of neoliberalism applies in Europe in which the social democratic ideologies are taking shape in human resource development and demand (Palley, 2013). Similarly, according to Wilson, Roscigno, and Huffman (2013), the neoliberalism is associated with downward mobility in human capital in the United States which for long has been focusing privatization.

Neo-liberalization emphases on the market-based work policies in the organizations.

In principle, the employer has the powers to fire any lowly performing employee in the bid to help the organization secure its productivity (Crowley, & Hodson, 2014). The organizational managers for it have credited the ideology gives them the chance to hire. And fire any employee to motivate them in putting more effort and be productive. The practice, therefore, has been criticized for understaffing which as a result has the precarious of lacking success. Although the organizational leaders apply the policy trying to maximize on profit, on the other hand, the practice is viewed as counterproductive.

The main aim of the neoliberal principle of improving the performance of the organization may also result in the reduction of the work experiences as well as the functioning of the organization and its prosperity. In Fletcher Building Limited, the managers may be applying the draconian rule in hiring and firing employees. Which affect their productivity thus resulting in the overall poor performance.

In a more critical perspective, neoliberal practices erode the informal relationships as well as the work culture and behaviors that exist in the organization.  Neoliberalism代写

As a result, the ideology undermines the essential elements that constitute the efficiency and productivity of the organization (Crowley, & Hodson, 2014). Fletcher Building Limited management may have failed to create a conducive environment. Where the workers build informal relationships, good work culture, and behavior. Thus, the practice creates a disconnect between the management and the workers which undermine the overall performance of the company. The production practices which embraces neoliberal practice tend to lower the job performance creates organization instability, and reduce informal relationships and culture that are pertinent to the smooth functioning of the organization. Further, this disruption has been viewed to lack merits of any discernible benefits in creating production efficiency and growth.


The sociological perspective of the impact of neoliberalism rests on the image of the worker by taking an active role in the organization. The ideology affects employee self-motivation and discipline. Where there are variations in the work contribution and the informal relationships destroyed (Gane, 2014). A study on sociology found that employees have a higher locus of control and they are likely to be self-motivated in a favorable working condition. Therefore, workers performance varies with the treatment they receive in the workplace as well as the work structure. In this regard, a practice that follows the implied culture of mutual obligation like respects. And maintained productivity form the foundation of a better working environment that is cooperative and productive.

Moreover  Neoliberalism代写

The ideology of profit maximization while excluding the stakeholders bargaining power negatively impact not only the mutual respect at work but also work ethics and morality (Bolton & Laaser, 2013). The use of part-time worker who is disengaged and engaged arbitrarily in utilizing the organization resource. And increasing the amount of work done is the practice used to limit the worker’s power to the front for their rights and grievances while rewarding individuals subjectively.

As a result, the method becomes destructive to the motivation of workers and efficiency. Workers respond this way because they become frustrated, hurt, and emotionally drained hence some respond by reducing the level of commitment at their work. Further, when there are insensitive workloads and unending assessments, the chaos is born, and pressure exists between the management and workers.

The overall effect is declining performance like in the case of Fletcher Building Limited.

The poor performance may be attributed by the low wages, casual and contractual work relationships, subjective and individualized reward system, and indiscriminate firing of workers. The practice of neoliberal in organizations has been found to be destructive to the employment structure and the overall performance of the worker. Although the ideology may increase the profits, in long-run, it may spell doom to the future of the organization. Generally, neoliberal practices do no right to the organization work thus a better approach like social democratic is favorable.

Assumptions of Neoliberalism and How They Shape and Structure the Organization of Work  Neoliberalism代写

Neoliberal ideology operates on certain underlying assumptions (Gilbert, 2013). The premises form the basis on which the neoliberal principles thrive and shape the structure of the organization of work in New Zealand. First, the ideology assumes that the market operates undisturbed and there no government involvement in regulations of factors of production. In this assumption, the market will adjust to equilibrium resulting in fair prices which reflect the costs and modest profits. Under a free market, the elite class dictate the operations of the market and determine the proportion of the application of factors of production for maximum benefits. In the Fletcher Building Limited, the management is maybe offering low wages. While overworking the employees to maximize the benefits which affect their productivity.

The premise that the market operates efficiently to determine fair prices and thus in long-term, the deregulation is beneficial to the people is false.

In the banking sector, for instance, deregulation leads to bubbles and collapses. In the bid to increase the profits, banks in the regularized market tend to borrow more with the higher percentage of the debt saved for speculative investments which are risky. For instance, before the great depression in the United States, deregulation led to the S&L collapse and the conspiration of the energy companies to fix prices that caused the high cost of electricity in California.

The investor and the consumers are assumed to make best choices which are guided by the free flow of information that is accurate and available. Enron and Washington Mutual are the perfect proof. That investors and business leaders do not always make a rational decision as most were made without a thorough assessment of the investment. When an investor makes a wrong investment decision, the burden of ensuring the company to stays afloat is rested on the workers who are overstretched to produce to unachievable levels.

Neoliberal assumes that the market bubbles and crashes are as a result of government restrictions through interventions.  Neoliberalism代写

In other words, the neoliberal ideology assumes a situation where the government does not intervene at any given time to allow free flow of resources. The assumption is premised on the argument that, the government distorts the natural working of the market which in long-run lead to the economic suffering. In this context, when the government allows the free flow production resource. The investor tends to misuse the liberty their description to hire and fire as well as determine the reward to the human resource.

As a result, there are no organized groups of workers which can front for the welfare of the worker and participate in the collective bargaining. The loophole is then exploited by the unscrupulous investors to pay low wages and give discriminate rewards to the individuals rather than the group of workers (Bal, & Rousseau, 2015). Rana Plaza Textile used this liberty to pay its workers poorly and even after the increase of the minimum wage; The labor cost was transferred to the consumers thus the vicious cycle of lower pay persisted.

In his work on monopoly capitalism, Baran (1966) and Sweezy (2004) observed that the reason why the large corporation does not want to compete is over price. In their state of avoiding competition over prices, they aim to increase profits through conspiring to fix prices to meet that end. Therefore, regulations are needed as it brings competition to the market. And protects the interest of the workers through the implementation of the minimum wage and living wage as well as the safety of the employees in their workplace.

Moreover, the ideology assumes that in comparison with the government-owned public businesses  Neoliberalism代写

The privately-owned companies in the undistorted market results in better customer experience. Therefore, the neoliberal advocates for taking over the roles of the government all the public corporations for better performance. The claim is false as the government-run businesses take care of its workers and their working conditions. Privatization can lead to the failure of the organization work structure as the investors only aim at profit maximization but not the welfare of the employees. This is likely to cause pressure between the management and the workers which disrupting the normal functioning of the organization.

Perhaps one of the modern assumptions of the neoliberal ideology is the unregulated global economy and how it can create prosperity in the world. Although the media print a rosy picture about globalization. It is clear that deregulation of foreign investments has brought the economic crisis in New Zealand. These crises have adverse effects on the labor market. Which can cause massive unemployment and enslavement of workers with low pay and excessive workload.

Although liberalism is facing strict opposition in the world economies

It is still active in organizations, and its impacts are evident in New Zealand through social and business crisis experience. Through claiming of their autonomy, the organization has created a twist of shortchanging the worker by low pays and contract employments which discourage bargaining powers. Although the capitalist as the proponents of this ideology cannot acknowledge the problem with the practice. Neoliberalism in the organizations should be depressed and be replaced by social democratic practices. Which enhance the worker’s welfare and efficiency at work.

References  Neoliberalism代写

Bolton, Sharon C., and Knut Laaser. 2013. “Work, Employment and Society through the Lens of Moral Economy.” Work, Employment and Society 27:508–25.

Baran, P. A. (1966). Monopoly capital. NYU Press.

Cooke, H. (2017). Jacinda Ardern says neoliberalism has failed. Retrieved from

Bal, M., & Rousseau, D. M. (2015). Individualization of work arrangements: A contextualized perspective on the rise and use of ideas. In Idiosyncratic Deals between Employees and Organizations (pp. 17-31). Routledge.

Cross, H. (2017). Neoliberalism, labor power, and democracy – the sense of an ending. Review of African Political Economy, 44(153), 353-357. doi: 10.1080/03056244.2017.1368607

Crowley, M., & Hodson, R. (2014). Neoliberalism at work. Social Currents, 1(1), 91-108.

Dean, M. (2014). Rethinking neoliberalism. Journal of Sociology, 50(2), 150-163.

Gilbert, J. (2013). What kind of thing is’ neoliberalism’? New Formations, 80(80), 7-22.

Gaynor, B. (2018). NZ’s best and worst performing companies. Retrieved from

Gane, N. (2014). Sociology and neoliberalism: a missing history. Sociology, 48(6), 1092-1106.

Marcetic, B. (2017). New Zealand’s Neoliberal Drift. Retrieved from

Palley, T. I. (2013). Europe´ s crisis without end: The consequences of neoliberalism run amok (No. 111). IMK Working Paper.

Ruckert, A., Macdonald, L., & Proulx, K. R. (2017). Post-neoliberalism in Latin America: a conceptual review. Third World Quarterly, 38(7), 1583-1602.

Sweezy, P. M. (2004). Monopoly capitalism. Monthly Review, 56(5), 78.

Wilson, George, Vincent J. Roscigno, and Matt L. Huffman. 2013. “Public Sector Transformation, Racial Inequality, and Downward Occupational Mobility.” Social Forces 91:975–1006.