When expressing their expectations for the coming term of Charlie McCreevy as Internal Market
Commissioner under the new European Commission President Jose Manuel Barroso, most European policymakers, financial executives, regulators, accountants, and corporate lawyers hedge their bets--in several respects.
The transition from hierarchy to internal markets has profound implications.
Naturally, the brave new world of computerized internal markets will incur the same drawbacks as external markets--complex working relationships fraught with risks, uncertainty, and other disorders.
Some organizations fear that internal markets will create much conflict as separate units pursue different goals and compete for resources.
Even the troublesome aspects of internal markets often represent useful adjustments or signs that adjustments are needed.
Internal markets seem inevitable because they offer the only feasible way to manage the growing complexity of modern society.
Internal markets offer advantages that are useful for most institutions, but we should hold no illusions that internal markets represent a universal ideal or panacea that should be applied in an all-encompassing way Markets may not be useful in certain situations, such as military operations and space launches that demand the close coordination of thousands of people and complex plans.
Strong leadership could have avoided the difficulties, but their occurrence illustrated a risk of internal markets: Organizational freedom unleashes great reservoirs of creative power, and this power must be carefully guided into constructive channels.
If internal markets introduce more of the same, why would people tolerate working in organizations emphasizing internal markets?