ADMS 1000 Lecture Notes - Lecture 2: Invisible Hand, Perfect Competition, Chester Barnard

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Peter Tsasis

Document Summary

The invisible hand: it self regulates for maximum efficiency in the market. Free market system provides or promises maximized efficiency while distributing value. There are four perspectives on work and government policy. Competitive markets ensure optimal assignment of skill and fair distribution of wealth. This perspective assumes that labor markets are perfectly competitive. Government and unions should not interfere in business. Competitive markets and supply and demand will allow: Consistent with the neo classical perspective and it says that they like the free market system however with a little bit of government intervention to help balance. The managerial perspective assumes that managers and workers must have the same interest for business to be successful. Unions are needed because management will treat employees well in order for employees to be productive. Senior managers and share holders have the power. The only way to make changes of stop company from certain things is through unions.