Office Space: Report, Group 35
1.) With reference to specific examples from the film, critically reflect on how Office Space illustrates tensions in the wage and effort bargain between management and workers.
The purpose of this question is to illustrate tensions in the wage and effort bargain between management and workers, more specifically, the wage and effort bargain issues that arise in the film Office Space. Throughout this essay we will discuss the theory behind the wage effort bargain and assess how the balance of power between the workers and managers affects the performance in the work place. We will begin with looking at the history behind the wage and effort bargain. We will also look at how the motivation of employees is …show more content…

The Capitalist and employee create a Contract of Employment, were the employee gives up their rights of control over their labour, meaning the Capitalist has the right to use the employees labour whatever way he wants. A fair day’s work for a fair day’s wage can be used to represent the wage effort bargain as the Capitalist and employee both have different ideas on the amount of effort that needs to be put in for the contracted wage level. This can cause a problem between management and the employee. Again, this is shown in Office Space when Peter is trying to avoid Lumbergh so that he does not have to work weekends. Lumbergh thinks that Peter must work the weekends, but Peter feels that he should not have to work on the weekends, and that is why he is avoiding Lumbergh.

If profits increase for the Capitalist, the employee will feel that they are entitled to some of the profit. This is known as profit sharing and could be a method, used by management to increase motivation within the business. In Office Space, the company Initech do not offer profit sharing. This is shown when Peter is being interviewed by the consultant, Bob. Peter talks about how he doesn’t see a dime if he works hard and ships a few extra units for Initech. This shows the lack of motivation, as he goes on to say how he doesn’t care, as he feels that he does not get any reward for the company doing well. The effort of working harder and shipping