Please help improve voice of democracy essay examples or discuss these issues on the talk page. This article includes a list of references, but its sources remain unclear because it has insufficient inline citations. This article possibly contains original research. Exit, Voice, and Loyalty book cover.
The work hinges on a conceptual ultimatum that confronts consumers in the face of deteriorating quality of goods: either exit or voice. Exit and voice themselves represent a union between economic and political action. Exit is associated with Adam Smith’s invisible hand, in which buyers and sellers are free to move silently through the market, constantly forming and destroying relationships. While both exit and voice can be used to measure a decline in an organization, voice is by nature more informative in that it also provides reasons for the decline.
Exit, taken alone, only provides the warning sign of decline. By understanding the relationship between exit and voice, and the interplay that loyalty has with these choices, organizations can craft the means to better address their members’ concerns and issues, and thereby effect improvement. Failure to understand these competing pressures can lead to organizational decline and possible failure. Some studies confirm Hirschman’s assertion that greater exit and entry costs heighten the likelihood of voice. Particularly when examining dispute resolution in contexts with limited exit opportunities, increased entry costs make workers’ voice more likely.