According to Karl Marx’s theory known as the alienation theory developed in his early works such as “Economic and Philosophic Manuscripts of 1844”, through the process of capitalization man is estranged from his species being. Marx argues that under capitalism, workers are alienated in four principal ways: from the goods produced by labor, from labor, from man’s own self, and from fellow men. This alienation originates from the fact that in capitalist economies the means of production are capitalistic and are owned by capitalists who prescribe the conditions and manner in which work is accomplished. Thus, employees create objects that are not their property and do not belong to them, which results in a feeling of alienation from one’s work. The standardized and even experimental characteristics of much capitalist work elicits workers still further from actual working activity to regard labor as a mere subsistence necessity.

According to Marx, another way is how capitalism estranges a person from his/her humanity by converting human talent to mere merchandise. It brings about the suppression of human potential which leads to frustration and total alienation from one’s core identity. Also related to this category, competition is encouraged and this leads to formation of skeletal relationships at the workplace leaving the workers isolated from their fellow workers. Altogether, although Marx’s theory provides a strong discursive condemnation of the degradative effects of capital, it has been argued to potentially over-romanticise pre-capitalist societies and under-estimate workers’ volition to act within the capitalist economy. Nevertheless, the idea of alienation helps explain other consequences reflecting psychological and social effects of capitalist employment relations.