Exit voice and loyalty olsen pdf download






















These surveys generally ask people to recall a time or situation in their relationship when they were dissatisfied. The EVLN-taxonomy was further supported in research using role-play methodologies, in which participants had to respond to scenarios describing a particular dissatisfying relationship Rusbult et al. Beyond providing a taxonomy of reactions, these studies have also examined the conditions under which E, V, L, and N-responses are more or less likely to occur.

In general, dissatisfaction appears to be associated with destructive responses exit and neglect , while a large investment in the rela- tionship having bought a house, having children are linked to constructive responses voice and loyalty. Use of the EVLN-model has not been restricted to the domain of romantic relations. Other researchers have used EVLN-principles to understand reactions to dissatisfying experiences in psychotherapy Derlega et al.

Loyalty is considered an alternative to exit and voice. Not only is this con- ceptually odd, but the various studies demonstrate little empirical support. Thus, there are doubts as to whether loyalty is really an alternative response. Secondly, exit and voice are clearly not exclusive of each other as Figure 1 shows. The poles opposite voice and exit are silence and non-exit rather than loyalty and neglect.

If we want to examine the active-passive dimension we see this in Figure 4, based on Figure 1 , or better still use categories within the decision tree of Figure 2b where the most passive follow the right-hand line of the decision tree.

Figure 4. Thirdly, why is voice treated as a constructive and exit as a destruct- ive? People can voice their dissatisfaction indeed in a considerate and friendly way, but they can also use an aggressive voice to communicate their dissatisfaction, for example, shouting abuse.

Setting conceptual issues aside, there are also methodological difficulties with the EVLN studies. For example, all studies measured self-reported and intended responses rather than actual behavioural responses. Accordingly, it is unclear if people who said they would voice or exit in response to an un- happy relationship will do so in reality.

In addition, the EVLN studies have all used cross-sectional designs. It is therefore impossible to establish any tem- poral differences in the use of exit, voice, loyalty, and neglect. For example, do people first try voice, and resort to exit when their voice is unsuccessful? These issues deserve further empirical attention. A different branch of social psychology which has used insights from Hirschman is research on intergroup processes.

Studies here support the notion of exit and voice as two more or less contrasting responses to dis- advantaged group membership. Or they can try to raise the status of their entire group through so- cial change using voice. This is synonymous to undertaking individual and collective action on behalf of the group.

In this particular context, exit is conceived of as an individual response and voice as a collective response to dissatisfaction. A recently conducted survey among citizens in the former East Germany has shown that the responses to discontent with an inferior status position of East-Germans in a unified Germany could be classified along the exit-voice polarity Blanz et al. Moreover, experimental intergroup research, has demonstrated that if boundaries between groups are open or permeable people tend to use individual status strategies, but they turn to collective status strategies in case of closed or impermeable group boundaries Ellemers ; Ellemers et al.

It is unclear what role loyalty could play in determining strategies in intergroup relations. One would expect that collective strategies voice are more likely to be used by people who have developed a strong sense of loyalty to the disadvantaged group.

In contrast, a weak sense of loyalty should give rise to individual status-enhancement strategies exit. Interestingly, Ellemers et al. Researchers boil down the framework to the simple exit-voice trade-off. Here it is argued that the availability of voice causes workers to exit less frequently.

Moreover, the existence of unions creates a more negotiated system of management in the company which is alleged to increase voice. With relatively little theory, and no discussion of the different forms of voice and exit, labour economists have been able to develop a simple yet powerful model of labour turnover which allows in- vestigators to appraise factors other than wage levels that cause employees to quit. The study seeks to explain exit and voice by trade union membership in models that control for wages, other measures of pecuniary rewards, age and years of schooling.

The monet- ary control is particularly important because unions themselves cause higher wages. The models use proxy measures of fringe benefits, such as satisfaction and the presence of a retirement plan. The study finds union membership is a significant negative predictor of every measure of exit, for all employment categories, and is robust over time. Freeman and Medoff acknowledge that the data do not directly measure voice.

First, there may be forms of voice that occur and vary outside the trade union context. Second, trade unions also vary in the extent to which they offer opportunities for voice.

Freeman devised a control for this activity — the availability of grievance procedures — which is successfully introduced as an extra explanatory variable into the model.

There are a number of complex relations not modelled, such as for the effect of tenure on wages as well as wages on tenure. They try to control for the effect of tenure on exit, but this strategy creates econometric problems, largely because tenure is correlated with unionism as well as other independent terms.

Moreover, the inclusion of job satisfaction as a control is also likely to be affected by union membership as is wages. The work of Freeman and Medoff has spawned an empirical literature.

Another study extends the model to absenteeism Allen where union membership has a negative impact, though as the author admits this variable does not neatly capture the exit phenomenon. Also absenteeism could be affected by union membership as employees could feel more secure when they have a voice to defend them. They test the implications of the exit-voice model by seeking to estimate levels of satisfaction, using British data. They find the negative re- lationship between satisfaction and union membership virtually disappears when a range of controls are introduced based on the quality of industrial relations.

Thus it is negative industrial relations regimes rather than the pres- ence of voice that lead to the formation of trade unions and to dissatisfaction. However, the research only addresses an implication of the exit-voice model and it remains to be tested whether exit is explained by industrial relations regimes.

EVLN model. High satisfaction predicts voice where as exiters and loyalists had the lowest scores. Whilst their voice responses are as predicted by theory the evidence is weak. She argues that firms seek to ensure the loyalty of their employees providing voice mechanisms in the firm through promotion structures. From survey data of managers, she seeks to predict attachment to a company — defined as the percentage increase in current pay necessary to induce depar- ture — by a series of variables indicating dependence, such as age, children, education, gender; and others indicating voice, such as earnings, number of promotions, hierarchical control and promotion evaluation.

While most of the voice variables have a significant impact on attachment, the main problem with the study, as with the others, is the inadequate definition of voice. With the exception of hierarchical control, these variables measure the pecuniary and expected pecuniary considerations of a company and are bound to predict attachment, especially when attachment is defined in monetary terms.

Despite the considerable statistical sophistication of these employment studies, they fail to test Hirschman adequately. Their main defect is a failure to model and test correctly for voice. Measures such as union membership, even with refinements, are not sufficient.

Moreover, many of the econometric models suffer from specification errors, such as failure to allow for endogen- eity, which make the results difficult to interpret. Consumers and producers Given that Hirschman mainly discussed consumers, the surprise is that eco- nomists have not applied his model to this area. The baton has been handed to students of marketing and psychologists. They hypothesize that exit should dom- inate in highly competitive markets, whereas monopolistic markets should foster voice.

From survey evidence, they find a negative relationship between concentration and exit and a positive one between voice and concentration. However, their model shows only weak relationships, particularly for voice. By manipulating the responses, they find that the magnitude of dissatisfaction, exit barriers and attractive alternatives significantly affect exit and loyalty as predicted by the EVL model.

Interestingly, as with other studies, their model explains voice much less than the other categories suggesting the voice category requires further conceptualization. As with so many studies, Maute and Forrester mis- conceive loyalty as a separate behavioural variable, rather than an orientation that affects voice and exit. Thus there remains much work to be done on the responses of consumers.

The surprise for the reviewer is that there is only one study that examines the responses of a firm to the various influences of voice and exit.

Foreman-Peck narrates the history of the Rover car company from to with the aim of explaining why it moved from profitability in the early years, to losses in the mid part of the period, and finally to profitability again.

While the exit of consumers was important in changing strategies in the company, the main pressure for improvement from shareholders and the suppliers and banks who were not inclined to or could not exit. They exercised voice by putting pressure on the management. Thus Foreman-Peck illustrates the operation of the exit, voice and loyalty over time, with the variation in market conditions as the main effect on the exercise and effect of exit and voice.

The urban context In political science urban scholars have made most use of the Hirschman framework. Tiebout suggested that if there were a large number of local jurisdictions in a single metropolitan area, they could compete for households by offering different tax-service packages.

Some urban scholars have moved beyond Tiebout to consider the effects upon exit possibilities on the quality of voice. In terms of urban politics, leaving the jurisdiction or dropping out of public service provision for private provision constitute exit, engaging in any form of collective action to improve services or making private complaints to public officials constitute voice.

An early study which follows directly from Hirschman is Young who ar- gues that the exit-voice framework is relevant along two dimensions of public policy Young First, the spatial dimension, where citizen-customers can voice their opinion on the delivery of public services, or exit by moving to a different jurisdiction. Second, the vertical dimension, which refers to the different possible arrangements in the delivery of public services. These arrangements vary from total consolidation, where the public authority pro- duces and disburses the services, to full diversification where there are many competing private firms competing to provide the service, with the public authority having a regulatory role.

The vertical dimension is clearly relevant not only to national public policy but to local public policy as well. The quality of the output is difficult to observe. The consumers of the service are difficult to identify. There are economies of scale.

The costs of investigating alternatives are high. The costs of switching suppliers is high. Some citizens-consumers can afford to exit more easily than others. The focus has been on the efficiency of different organisational forms of exit and voice separately, with no analysis of their interaction.

In the ana- lyses of different organisational forms of exit and voice, most of the attention has focused on information and incentive problems of the different agents for a recent example of such analysis for the provision of health services in Britain, see Glennerster et al. The complexity of the configurations that these organisational forms can take is daunting. However, the fact that there has been no progress in the comparative analysis of public services within the exit voice framework, can only hamper research on the delivery of particular services.

These analyses attempt to statistically model individual decision making or attitudes toward exit and voice. Despite the large amounts of empirical research conducted along these lines, we argue that there has been remarkable little progress in both our theoretical and our empirical understanding of the exit-voice relationship and on the manner that different exit-voice organisational configurations affect the efficiency of urban government.

There are two main camps in this area, one supporting fragmentation of metropolitan government and another supporting consolidated metropolitan government. The fragmentationist position is that fragmented metropolitan government promotes efficiency through the competition of local govern- ments. The fact that the low income households may not afford to exit does not matter, because it is sufficient that the high income households can.

The fact that these high income households can exit, strengthens their voice and they are able to raise the standards of public service provision for everybody Teske et al.

There are no studies that directly supports this position. The evidence that high income households are more mobile and better in- formed about local public finance than low income households has never been connected with improved local government performance. If high income citizens are supposed to be so effective with their voice because they are mobile, then why did they leave?

And in any case, such analyses after a move has taken place are very problematic as is argued below. The consolidationists on the other hand, argue that the voice option should be strengthened for all, and not just for those with high incomes. Their evidence suggests no relationship between fragmented local government structures and efficiency. This obviously does not support the fragmentation- ists, but it does not support the consolidationists either.

To explain the absence of superior performance by consolidated metropolitan governments, they in- troduce neglect as a fourth category as we see in the social-psychological studies above.

They try to explain neglect mainly in terms of a number of behavioural characteristics, such as efficacy, satisfaction, and investment in the community. Their model however suffers from serious problems related to the more general difficulties with their approach.

First, there is the general difficulty of attempting to explain alienation from the political sphere using behavioural characteristics, when there is a substantial body of evidence that shows that there are structural factors that are responsible for it for a good summary, see Howard et al.

Secondly and relatedly any measures en- tering the model are bound to be flawed. For example, the measure of neglect itself turns out to be a measure of the belief on the responsiveness of local government. Lyons et. But a belief that a government will be unresponsive to voice may be based on years of experience with political act- ivism as well as on an attempt to rationalise inactivity. Their model is unable to distinguish between the two, and hence unable to distinguish structural from behavioural causes.

In short, neglect may be a useful category in the individual calculus of personal relationships, but not in the calculus of polit- ical participation. We can learn much from the Lyons et al.

Despite the rhetoric couched in the exit-voice framework, there has not been any serious attempt to analyse the interrelationship between exit and voice.

The analysis was on those whites who considered the performance of their local government problematic, and considered two types of voice. There are two main problems with her study undermining her conclusion. First, her cross-tabulations do not control for length of stay in an address or in the community.

This is problematic because those who moved recently are both less likely to have expressed either on of the types of voice, and they are more likely to move on because of the large percentage of frequent movers among all movers. Second is the problem of ex post analysis of participation behaviour.

To examine the probabilities of having voiced, given intentions to move is something quite different from the problems of personal calculus of exit and voice. The main interest of this calculus is not what happens after voice has been exercised, but before.

In other words, how the possibility of exit affects whether voice will be exercised or not. Progress in the analysis of exit and voice in the spatial dimension of public policy is most promising in two directions. One is improved methodology. Given the high expense of the longitudinal approach, the next best approach is analysis of intended behaviours. Of course there is a critical gap between intentions and their realisation, but that can only be analysed when there is data on both the intention and the realisation, which brings us back to the lon- gitudinal survey.

Second, Sharp showed that there are significant differences between how past private and collective voice relate to intentions to exit. It is likely to be misleading therefore to treat all these activities as one. Conclusions In the review of the empirical literature four categories of problems emerged. Log in with Facebook Log in with Google. Remember me on this computer.

Enter the email address you signed up with and we'll email you a reset link. Need an account? Click here to sign up. Download Free PDF. Exit, Voice and Loyalty. Famil Gurbanov. A short summary of this paper. Download Download PDF. Translate PDF. Exit and voice by Georgia Andreea Capata………………….. Two-party systems by Anar Masimli…………………………. Loyalty by Famil Gurbanov………………………………….. Hirschman, an influential economist who advanced solutions to prevent decline in firms.

It may assume like quality of being loyal faithfulness to commitments or obligations. Nevertheless, this country going on in bad way, mostly in economic side but citizens looking for a good points in the future of their own county. There is the main expectation is over the time of period the positive points will increase rather than negative points. In this case, people calculate the some factors which include rational or irrational. Albert O. 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. Using the AsiaBarometer Survey data on quality of life, it studies various types of behaviour using the multi-level regression models for 32 countries.

Arguments are then juxtaposed with issues such as rampant corruption, government regulatory principles and measures, and calls by international organisations and non-governmental groups for business firms to be more strictly bound.

Given the generally receding tide of democracy in Asian societies, this book will be of interest to academics, business, mass media and other professionals. Abstract: This research explores the concept of national loyalty within today's context of international migration and globalization.

It seeks to provide a systematic understanding of national loyalty that, thus far, has been widely accepted by most citizens as a social fact and assumed to be an inherent trait. Probing deeper, however, we realize that our understanding of national loyalty is superficial, made ever more shaky by today's ease of international travel, increasingly porous territorial borders, and images of the global citizen who is at home anywhere in the world.

Academically, our understanding of national loyalty has also been mired in intellectual, philosophical, and rhetorical debates over the concept of the nation and national identity.

Still, the realization that national loyalty is particularly vital during times when the nation-state is at some major cross road, or faced with the greatest challenge ever yet, is not lost on political leaders throughout the world, especially since the terrorist attacks of September 11, , on the World Trade Center in New York.

What, then, is national loyalty? How is it able to coexist with our claim to be global citizens and free-floating individuals who belong nowhere and everywhere?



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