Fast Capitalism And Its Effect On Organizations

Decent Essays
In order to compete in the global economy, organizations are in a constant state of transformation, and are fixated on accelerating production processes in order to maximize efficiency resulting in more profit. Today’s organizations are less concerned with the production of useful goods and services, but are more concerned with increasing shareholder value (Grey, 2009). This is known as fast capitalism, or maximizing value for shareholders. This paper will attempt to reveal what events led up to fast capitalism, and some of the consequences that have resulted from this modern economic system of business. The purpose of this paper is to illustrate why fast capitalism is not sustainable and detrimental to organizations.
One event that contributed to fast capitalism was “the whole-sale deregulation of financial markets in the 1980s” (Grey, 2009, p. 112). This resulted in constant change in organizations, and a continual search for ways to speed up production in order to remain competitive. Another event Grey (2009) mentions is “the collapse of the Bretton Woods agreement (the system which had regulated international trade and currency movements since the end of the Second World War) in the 1970s” (p. 113). This resulted in the reorganization through mergers and acquisitions.
Prior to the emergence of fast capitalism, organizational names often identified them with their location or community. “A localized employer, rooted in an area with a workforce that has
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