great thinkers, great ideas

(singke) #1
238 Economic Theory: An Introduction

frame imposed on those in attendance, the agenda will be
covered close to the schedule. If there is no time frame imposed,
the first item or two will take all the time, and the last several
items will be rushed through when it is evident that the meeting
must end. Parkinson is validating the cliche, “if you want a job
done, give it to a busy man.” The implications for businesses are
clear. In order for a business to prosper there must be quotas set,
time lines drawn, and schedules which must be met.
As a result of the implications of this law, Parkinson states that
in any institution subordinates multiply at a predeterminable
annual rate, regardless of the work to be done. Parkinson
demonstrates this phenomena by examining the British Admi­
ralty during the years 1914-1928.

♦PARKINSON'S LAW
ADMIRALTY STATISTICS

Year

Capital
ships in
commission

Officers
and men
in R.N.

Dockyard
workers

Dockyard
officials
and clerks

Admiralty
officials

(^191462) 146,000 57,000 (^32492000)
(^192820) 100,000 62,439 4558 3569
Increase
or
decrease
■ 67. 74 % - 31. 5 % + 9. 54 % + 40. 28 % + 78. 45 %
It is evident from the chart that as the number of ships and men
needed to man them decreased, the supervisory personnel in­
creased. The bureaucracy in this case, the admiralty, increased
the most. Why is this so? Parkinson claims that bureaucrats seek
to multiply subordinates, not competitors. So, when a bureaucrat
feels overworked, rather than hire someone to share the load, he
hires two subordinates. This, Parkinson says, creates more work
for all involved, since the bureaucrat is responsible for the work
that leaves his office, and now finds himself having to check on
the work of the two subordinates whom he hired to alleviate his
own work load. Long-established business institutions and gov­
ernment agencies are the prime offenders in this process.
Parkinson’s second law states, “expenditures rise to meet
*Parkinson's Law. Boston: Houghton Mifflin Co., 1957, Pg. 8.

Free download pdf