Essay about Bureaucracy
According to Max Weber, bureaucracy is the most efficient and most rational known means of exercising authority over human beings (Weber, p223). Further it is reliable, precise and stable, these …show more content…
As stated above, direct sales people are employees of the company also called internalized labor. The major advantage to having this type of labor is that it is easier to control because they are integrated in the company. Another advantage to internalized labor is long term meaning employees stay in the organization, they want the security of working for a company that will pay them paycheck whether they have been successful in selling a product or not. Another benefit is keeping critical people that are key to the operations and/or have a specific knowledge of task. The disadvantages include costly overhead, metering costs and mediocre performance. It costs a company a lot of money to employee a full-time person along with benefits and a retirement. Employees expect some kind of security and loyalty from the company even in difficult times. All these costs do not guarantee that the employee will perform well; in fact, most employees do the minimum amount to receive a paycheck.
To externalize labor means to outsource labor, which is done by on a contractual basis either by a large company specializing in a vast array of products or by an independent person. These outside agents are responsible for selling products for a company but are not part of the company's integration structure. They are not salaried but are employees working on a commission only basis. In fact, these