Karl Marx Capital
Why do Organizations Exist?
INTRODUCTION
Background: Cooperation, by Karl Marx
Karl Marx’s Das Kapital: Volume 1, remains to be his greatest achievement and contribution to socio-economic study. First published in 1867, the works critically analyzes the political economy of the nineteenth century. In studying the Marxian view of ‘Co-operation’ we are able to gain insight into why organizations exist. Marx proposes that “the end aim of capitalist production, is to extract the greatest possible amount of surplus value, and consequently to exploit labor-power to the greatest possible extent” (Marx, 227).
Marx explains that surplus value is extracted through the cooperation of labor-power, when “a greater number of laborers work together, at the same time, in one place, in order to produce the same sort of commodity under the mastership of one capitalist” (223). Only when full cooperation is achieved, will we see “the creation of a new power, namely, the collective power of masses” (225). Those who have studied Marx will recall that this power of the masses is whom Marx strongly advocates for.
Proposal: Why do modern organizations exist?
It is evident that Marx’s works and theories have largely shaped the structure and economy of our modern world. However, his assumptions were formed in the agriculturally based 1860’s, and thus needs to be adjusted for the technological advancements in today’s economy.
Progression in technology has changed our modes of production (from labor intensive, to automated), and brought rise to a new type of firm whose goods are intangible or idea based.
This paper addresses the validity of Marx’s theory of ‘why organizations exist’ in the modern context. In doing so, it was found that while it is impressive that some Marxian assumptions hold, a few have become outdated.
Marx argues that firms exist to generate surplus value through physical cooperation.
We see that as ‘production’ becomes increasingly intangible and technology
INTRODUCTION
Background: Cooperation, by Karl Marx
Karl Marx’s Das Kapital: Volume 1, remains to be his greatest achievement and contribution to socio-economic study. First published in 1867, the works critically analyzes the political economy of the nineteenth century. In studying the Marxian view of ‘Co-operation’ we are able to gain insight into why organizations exist. Marx proposes that “the end aim of capitalist production, is to extract the greatest possible amount of surplus value, and consequently to exploit labor-power to the greatest possible extent” (Marx, 227).
Marx explains that surplus value is extracted through the cooperation of labor-power, when “a greater number of laborers work together, at the same time, in one place, in order to produce the same sort of commodity under the mastership of one capitalist” (223). Only when full cooperation is achieved, will we see “the creation of a new power, namely, the collective power of masses” (225). Those who have studied Marx will recall that this power of the masses is whom Marx strongly advocates for.
Proposal: Why do modern organizations exist?
It is evident that Marx’s works and theories have largely shaped the structure and economy of our modern world. However, his assumptions were formed in the agriculturally based 1860’s, and thus needs to be adjusted for the technological advancements in today’s economy.
Progression in technology has changed our modes of production (from labor intensive, to automated), and brought rise to a new type of firm whose goods are intangible or idea based.
This paper addresses the validity of Marx’s theory of ‘why organizations exist’ in the modern context. In doing so, it was found that while it is impressive that some Marxian assumptions hold, a few have become outdated.
Marx argues that firms exist to generate surplus value through physical cooperation.
We see that as ‘production’ becomes increasingly intangible and technology
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