Toyotism, Nikeification and Waltonism: Three Organizational Types and their Consequences on Inequality

• In Event: 413 - Section on Organizations, Occupations and Work Refereed Roundtable Session. Table 01. Culture and Organizations
  In Refereed Roundtable 100min: Table 06. Inequality

Abstract

The division of labor has changed from Fordism and Taylorism to lean production, but there are three forms of lean production, and the latter two have increased inequality and unemployment in the US over the long-run. Lean production has developed with four major parts: taking a long term perspective toward market share and hiring employees for the long term, establishing a supply-chain network based on just-in-time-inventory, developing an intensive problem solving culture, and using teams to their utmost while trusting all employees to make important contributions. There are three types of lean production: (1) lean production-1 (LP-1) or “Toyotism” uses all four elements described above; (2) lean production-2 (LP-2) or “Nikeification” uses items two and three but casts off items one and four by offshoring or outsourcing its production to companies in less developed countries (LDCs) that do not care about teams or long-run perspectives – they become doughnut corporations with no core of production or manufacturing; and (3) lean production-3 (LP-3) or “Waltonism” involves merchandisers who exert a great deal of pressure on suppliers to produce the lowest cost item possible, doing the same as LP-2 in relying on off-shore production. These models of lean production are illustrated with Toyota, Nike, Apple, and Walmart. The negative implications for LP-2 and LP-3 on the economies of advanced industrialized countries include low wages and unemployment due to offshoring and outsourcing, but also result in a negative balance trade that harms the economy.

Authors

• Thomas Edward Janoski, University of Kentucky

• Darina Elena Lepadatu, Kennesaw State University