Q1 - Drugs Gangs vs Organisations by Levitt and Dubnar. Flashcards
In what ways did the drug organization on the Southside of Chicago examined
by Levitt and Dubnar work a lot like most big businesses or corporations? - List 5 similarities or differences, without expanding on them.
Similarities or Differences:
- Hierarchical Structure.
- Roles of workers at the top vs. bottom of the hierarchy.
- Accounting systems used by a drug gang vs a business.
- Pay differentials.
- Lack of prospects for promotion in drug gang (could be similar or different to firms).
How do the drugs orgs on the Southside Chicago examined by by Levitt and Dubnar work like most big firms or not in terms of Hierarchical Structure?
Drug orgs on Southside of Chicago have top-down hierarchical structures whereby there is a 6ish members that make up the “central leadership”.
From that there are Local Leaders (similar to franchisors of firms).
There are then enforcers, then foot soldiers.
Few other roles include: Treasurer, Runner.
How do the drugs orgs on the Southside Chicago examined by by Levitt and Dubnar work like most big firms in terms of the roles of workers at top and bottom of the hierarchy? (Levitt and Dubnar 2000).
Structured hierarchy with “central leadership” of four to six leading members that build long-term strategies for the organisation, maintaining strong relationships with suppliers and buyers.
Foot Soldiers = very minimal wages, little authority over decisions making.
-Responsibility is to make sales and report to their manager.
Similar to top-down many corporations.
How do the drugs orgs on the Southside Chicago examined by by Levitt and Dubnar work like most big firms in terms of their Accounting Systems? + How did Levitt and Dubnar find this out?
The drug orgs finances are broken down into detailed monthly figures of revenues and costs (similar to a cash flow statement of a firm).
Furthermore these gangs usually employ a treasurer to ensure the finances are accurate and updated frequently.
How do the drugs orgs on the Southside Chicago examined by by Levitt and Dubnar work like most big firms in terms of Pay Differentials at top vs bottom of the organisation / drug gang?
The wage differentials are significant. Those at the bottom of the hierarchy earn only a fraction of those at the top. This is despite great risk of violence between rival street dealers.
However they are kept motivated by the potential of promotion.
Average of gang - £15,077
Average of U.S - £35,225
How do the drugs orgs on the Southside Chicago examined by by Levitt and Dubnar work like most big firms in terms of promotion opportunities for workers at the bottom? + How do they achieve promotion? (Lazear & Rosen 1981).
Promotion up the hierarchy is seen in a tournament model (Lazear & Rosen 1981). Street level dealers who make the most sales, deter rival gangs, etc will rise. However the promotion opportunities are limited (Levitt and Dubnar 2000).
