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ADMS 1000 notes

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Administrative Studies
ADMS 1000
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Chapter 5 Distinguishing work and employment Employment • a form of work in which a person is dependent upon mostly subservient to an employer • work arrangement/ business arrangement Employment relationship •employer has control over methods of production, authority to decide how much and what to produce and where to direct employee- how employee is required to perform job •basic exchange- employee sells their labor in exchange for compensation usually in form of wages and perhaps benefits of some sort. Employment contract •governs the relationship •sets specific rules, obligations and rights applicable to employer and employee; usually enforceable in court of law People who work but are not employed •independent contractors/ self employed- provide labour services in exchange for compensation, but are running their own business rather than surviving as an employee •partners- sell their labour but are part owners of business and not its employee •contractors and partners earn revenues not wages Some people work through temporary placement organizations •assign work for other businesses •volunteers / interns- unpaid workers •employment relationship involves legal rights and entitlements •legislastion regulates employment on the theory that employees require government protection due to vulnerability Employment Standard Legislation •entitles employees to a minimum wage, overtime pay, mandatory time off and holiday pay, notice of termination •human rights laws prohibit discrimination in employment and access to unemployment insurance, public pension schemes and worker compensation benefits Standard Employment Relation (SER) •characterized by regular, full time hours , often entire work career •employees receive periodic raises; provided with benefits •strong social security net- govt Non Standard Employment (NSE) •less stable, part time, temporary, lower pay, short job tenure, no access to collective bargaining, •young, recent grads Self employed/ independent contracts •considered: • vulnerable or precarious workers- live in cusp of poverty/ unable to save for future Four Perspectives on work •role of effectiveness of markets •role of bargaining power and the employment relationship •role of management and the human resource function in particular •role of unions and collective bargaining 1. Neoclassical perspective •competitive market- best means of organizing complex economies •force of supply and demand- freely operated with limited state interference •invisible hand will lead to personal interest which will lead to social interest •see labour relationship as simply another form of free exchange between informed and free actors •some feel protection laws will do more harm then good •not concerned with working conditions •equilibrium market rate 2. Managerial Perspective •related to modern human resource management •same belief as neoclassical of government intervention - should be minimal •want business, employee, employer- successful •workers treated with respect more likely to be productive •employers treating poorly should be punished not good •union and collective bargaining means no management •does not support^ 3. Industrial pluralist perspective •imbalance of power between workers and employers and the value to society and economies of striking reasonable balance between efficiency concerns of employers and equity concerns of workers •workers lack bargaining powerr •support active govt •promote collective bargaining •bounded rationality- humans dont make decisions that would max their personal utility lack info necessary to assess options / or capacity to assess 4. Critical Perspective • interests of labour and capital are irreconcilably in conflict • objective of capital • workers depend on capitalist on basic need, more likely to take advantage of workers • believe that employment regulation protects workers from exploitation • can possibly be harmful to workers Labour context in Canada •unions get certified based on majority employees want union •government orders employer to bargain with union to reach collective agreement Current issues in workplace: downsizing and dismissing employees •unemployment rates: measure the percentage of adults in labour market who are actively seeking employment Rules and Programs to avoid unemployment Common law rules requiring notice of termination: •all nonunion employees in canada have an employment contract with their employer. •sometimes written sometimes verbals; most resolved by a judge in courts of law •when judge interprets these contracts it is known as common law of employment contract •requires employers to provide employees with reasonable notice of termination •how much is reasonable; decided by judge Statutory Minimum Notice of Terminations •if an employer fails to provide employee with reasonable notice, the employee can sue the employer in court to recover it •government imposed notice requirements called the mandatory minimum statutory notice •notice allows time for employee to prepare for loss or search for another job •different in US where contracts can be terminated at anytime called the “at will employment” •difference in canada and US, americans assume that employees will turn to bargaining and opposite for Canadians Unemployment Insurance Programs •operated by federal government started in 1940 administered under the employment insurance act •act requires employers and employees to make contributions into an unemployment insurance fund •access benefits unemployed persons must satisfy a serious of conditions; such as paid into the fund for a specific period of time and being in active search of employment •payment is based on the employees prior earnings for a certain amount of weeks Managing Workplace Diversity •protecting diversity an guarding against discrimination in Canadian law •Three laws that address discriminations: •1. Canadian Charter of Rights and Freedom •protects the fundamental rights and freedoms of Canadians •charter applies to government action •government can act two ways: as employer of their own employees and as law makers •equity rights not part of charter- and may affect employment relation •freedom of association- guarantees a worker to engage in bargaining activities which are known to be illegal •a law that violates the charter can be protected by court if they find the violation justified 2. Human Rights Laws •applied to private sector businesses when the charter is not •laws typically prohibit discrimination in employment based on prohibited grounds •this law supports individuals with physical or mental disability, meaning it is the employers duty to accommodate the employees for religious holidays 3. Employment Equity Legislation •designated groups of people who contribute to the workplace •4 groups in particular •WOMEN •ABORIGINALS/ FIRST NATIONS •INDIVIDUALS WITH DISABILITIES •VISIBLE MINORITIES Employment Equity Act •treating people fairly by recognizing that different individual groups require different measures to ensure fair and comparable results •deals with systematics discrimination and inequality at work •eliminates employment barriers for specified groups •redress past discrimination in employment opportunities •improves access for designated groups •fostering equity in the organization •implementing positive policies and practices Chapter 6 Globalization: process involving the integration of world economies, process that is expanding the degree and forms of cross border transactions, growth in direct foreign investment in regions across the world, shift towards increasing economic interdependence. Pull Factors: reasons a business would gain from entering the international context •potential for sales growth: increased sales, reduce negative effects of domestic downturns in demand for businesses •obtaining needed resources: engage in global activity in order to obtain resources that are either unavailable or too costly •reduce trade barriers and increased democracy Push Factors: forces that acts upon all businesses to create an environment where competing successfully means competing globally •the force of competition: domestic economies are being filled with foreign competitors so business may be forced to go global FIRST MOVER ADVANTAGE: underscores the benefits of being among the first to establish strong positions in important world markets •Shift toward democracy •Reduction in trade barriers- most powerful source of influence •improvement in technology Channels of global business activity •exporting and importing •outsourcing/ off shoring •licensing and franchising •foreign direct investment •Joint ventures, strategic alliances •mergers and acquisitions •establishment of subsidiaries Multinational Corporations: global business that engages directly in some form of international business activity including such activities as exporting, importing, or international production or a business that have direct investments in at least two different countries. Globally integrated companies: companies that integrate their geographically diverse operation through decisions centralized at head office. Multi domestic company: company that permits its geographically diverse components to operate relatively autonomously Most MNC’s have headquarters in developed countries and maintain branch plant in 2 or more foreign countries. -borderless corporations -do not claim nationality -mobile with regards to transfer of capital -decision making local in market they exist -economic development through employment -brings management expertise -introduces new technology and relevant training -encourages intl trade Threats of MNCS -no commitment to host country -mobile profit -power in home country -monopolizing host country International trade: purchase, sale or exchange of good or services across countries. it has encouraged development of free trade agreements Logic of trade: each country can specialize or focus on producing goods/ services on which it maintain an absolute advantage and simply trade with other countries to obtain goods or services that are required but are not produced by domestic supplier Mercantilism: trade theory in which a country’s welath is maximized through trade surplus. government would intervene to ensure trade surplus by imposing tariffs, quotas, or by banning some foreign commodity. Trade protectionism: protecting a countrys domestic economy and businesses through restrictions on imports. Tariff: tax placed on a good that enters. raise price of imported good to ensure they are not less expensive than home goods. Quota: limit the amount of products that can be imported so that domestic producers retain an adequate share of consumer demand for this product. Problems with Mercantilism and Protectionism: mercantilism assumes that trade involves a zero- sum gain that is world wealth is fixed so there is drive to minimize imports and max exports but this creates a one way street of trade Promoting international trade: general agreement on tariffs and trade (GATT: agreement among 100 countries to reduce level of tariffs in a world wide basis) World trade organization (WTO 1955): develop and administer agree upon rules of world trade and discourage protectionist laws that restrict international trade International Monetary Fund: established after ww2 to provide short term assistance in form of low interest loads to countries conducting international trade and in need to financial assisstance. World Bank: establised after ww2 to provide long term loans to countries for economic development projects, borrow funds from developed countries and lend to underdeveloped Regional Economic Integration: means bringing different
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