Its good in theory, but in practice it doesn't work. Those guys who mastered the political process. They don't get fired. Not getting fired is what they do. Thats the thing they're really good at.
And man, it gets cut-throat. You know, when I traded, I used to think that was the most cut-throat work environment. Then the firm I was trading for got acquired by a bigger (much bigger) "traditional" bank. I quickly realized the trading floor was a picnic compared to mid-level management (at a bank they are called VP's) politics. At least a trader, you know the score. Make a profit you win. Don't you leave. Working at this bank; I had to learn to watch my back.
It was at that point I decided to leave banking, and NYC.
It also applies to countries. Look at the increasing resources that go to people who produce little or nothing of value to others eg lawyers, lobbyists, politicians, financial engineers, LBO operators etc. Not to mention many of the people on welfare.
Spoken like someone that has never used welfare, doesn't know anyone on welfare, and gets all their ideas from talk radio and Fox News.
Woah, slow down tiger :)
More seriously, please elaborate. Or maybe I am just a bleeding heart.
Looking at the state of many governments around the world he's probably being kind in his characterization.
You are right, hiring and firing is a political process, and so you are right, its vulnerable to manipulation by the shrewdest political players.
My assumption, however, is that the layoffs are managed by senior management, who are the shrewdest of all the political players. If they do layoffs right, they put the power of firing into the hands of people in a separate power structure. I mean people like external consultants, or a special committee.
If that isn't the case; and if mid-level management is providing the data to direct layoffs, then yes, its a colossal disaster.