MGMT 223 Lecture Notes - Lecture 1: Real Wages, Reservation Wage, Wage Theft
Document Summary
Adam smith- you work because of your own self-interest; the invisible hand; you need money for food. John calvin- you work because of the spiritual values you gain. Karl marx- work is a form of self-expression; work is an end in itself, not just a means to an end; content of work, not just outcome, is important. Other reasons: basic needs, safety and security, wealth, status, pleasure (intrinsic motivation), spiritual value. A(cid:373)azo(cid:374) does (cid:374)ot ide(cid:374)tif(cid:455) (cid:449)ith its (cid:862)(cid:272)old-(cid:272)ut(cid:863) (cid:272)ultu(cid:396)e. Voice is more powerful when the threat of exit is credible. Walmart v. costco: walmart increased pay to be more like costco, but workers were pissed off. High wages can be compatible with profits and can contribute to competitive advantage. It is only through social relations that potential employers and employees can acquire and assess information on each other and on the jobs at stake. Fairness without some concern for efficiency is a bad idea.
