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Chapter 1

ADMS 1000 Chapter 1: adms readings 1

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Administrative Studies
ADMS 1000
Paulette Burgher

Chapter 2 (pg. 40-52) THE LABOUR ENVIRONMENT & CANADIAN SOCIETY • Most people depend on the income from their labour to survive • Canada’s labour force is more diverse than it was in the past, creating challenges and opportunities for Canadian businesses and for Canadian policy makers DISTINGUISHING WORK AND EMPLOYMENT • Employment is a form of work in which an employee is dependent to an employer, and has been a dominant model of organizing work since the 20 century • Employer has control over methods of production, unilateral authority to decide what and how much to produce, and the right to direct when where, and how the employee is required to do their job • Employment contract governs the relationship between an employee and employer • Employees sell their labour for compensation, usually in form of wages or sort of benefits THE EMPLOYMENT CONTRACT • Independent contractors are not employees, they provide labour services in exchange for compensation, but they run their own business instead of being employees, earn revenues (plumber) • Partners sell their labour, but are part owners of the business and not just employees, earn revenues • Temporary placement organizations are how others obtain work, which assigns them to work for other businesses • “others” are categorized as volunteers or interns • Employment standards legislation entitles employees to minimum wage, overtime pay, mandatory time off and holiday pay, and notice of termination • Human rights law prohibits discrimination in employment relationship, and access to unemployment insurance, public pension scheme , and workers compensation benefit • Tax systems: nonemployees can deduct business expense from their taxable income, whereas employees cannot • Business that uses independent contractors or temporary placement workers can avoid employment standard laws or requirement to pay insurance to worker’s compensation system(benefit) • Employers can maximize worker effectiveness by designing workplace reward system that recognizes and promotes loyalty and commitment, like promise workers job security wjile giving good pay and benefits WHAT IS AN EMPLOYEE Factors determining whether someone is an employee: • Degree of Control - independent contractors determine the hours they work and the manner the work will be performed in, and can usually call other people to do the work - an employee is usually told when and how to do the work subject to some supervision • Degree of Economic Risk - Independent contractor assumes risks of non-payment of bills by customers, loss of customers, and potential benefits of profits - Employee is usually paid its wages even if customer doesn’t pay bills, but do not share directly in profits • Degree to which the worker performs an essential service for an organization - Person who performs integral tasks is more likely to be perceived as an employee than someone who performs a task that’s peripheral to the organization’s business. - Ex. Chemist more perceived in chemical company than a person who cuts the grass • Degree to which the organization provides the necessary tool - Independent contractors are more likely to own their own tools - Employees more likely to have tools provided to them by employers -these factors are considered by a court or tribunal to determine if one is an employee -courts are concerned about workers being taken advantage of by employers FROM STANDARD TO NONSTANDARD EMPLOYMENT RELATIONSHIPS - 1930s to 1980s was golden age of employment relationship in Canada - During that period, the standard employment relationship (SER) was dominant - SER is characterized by regular, full-time hours at a single employer - employees receive periodic pay raises, employers usually provide health benefits and pension plans - Unemployment and workers compensation benefits are funded by mandatory employers contribution - Nonstandard employment (NSE) is characterized by part-time, temporary, or variable working hours, lower pay, fewer employer-provided benefits, and no access to collective bargaining - many of these workers are young, recent entrants into the labour force -  this means that young university graduates are less likely to experience stable employment patterns - Shift from standard employment to self-employment is a major contributor to growing income inequality since self-employed workers tend to be lower paid, fewer benefits, less job-security and not entitled to many social protections or guarantee - Income inequality is the unequal distribution of wealth to households - Workers under NSE are described as vulnerable or precarious workers, who live on the cusp of poverty and are unable to save or plan for the future PERSPECTIVE ON WORK AND GOVERNMENT POLICY - Businesses can benefit from NSE in terms of low labour costs and greater managerial flexibility -  this can help profitability - OECD noticed that the growth in NSE and self employment is a cause of growing income inequality in Canada - Four perspectives shaped debates about the governance of work in Canada: neoclassic, managerial, industrial Pluralist, and critical perspectives NEICLASSICAL PERSPECTIVE - Argues that competitive markets are the best means of organizing complex economies and societies - The force of supply and demand will ensure assignment of skill and expertise, as well as fair distribution of wealth -  this is because people are motivated by their own interest, so they will make decisions that maximize their self-interest - Assume that labour markets are perfectly competitive, therefore believing if they are left alone by government interventions and unions, they’ll produce market outcomes - Share Smith’s recipe for government : state should focus on legal system that focuses on protection of property rights, enforce contracts, and prohibit anti-competitive practices, or otherwise keep taxes low - Perceive labour relationship as exchange between informed and free actors, which is why Canadian government are misguided in their attempts to protect workers though minimum wage, overtime pay, health and safety rules, etc… - Argue that none of these laws are necessary to protect workers - Believe that the invisible hand of the market will keep working conditions good - a business that offers less than the market wage rate will unable to attract workers, and eventually be driven out of their business MANAGERIAL PERSPECTIVE - Related to modern human resources management - Shares belief with neoclassic that government intervention in governance of work and employment should be minimal - Put their faith in enlightened managerial practices instead of “invisible hand” - Argue than employers/employees, businesses/workers share common interest: they want the business to be successful - Argue that workers treated decently with respect will be the most productive workers, and that businesses will be successful when they provide good wages, benefits, and good work conditions - Businesses will look out for employee concerns b/c It is the best economic interest - Employment standards and regulations should be kept at a minimum since laws inject rigidity into work relationship and impose unnecessary cost on employers - Unions and bargaining are unnecessary, should not be promoted by government - Interest in treating workers fairly, so they should not look to unions for protection INDUSTRIAL PLURALIST PERSPECTIVE - Emphasize the imbalance of power between workers and employers - Efficiency concerns of employers and equity concerns of workers - Relationship between employers and employees involves bearer of power as well as subordination - Workers lack bargaining power to engage in bargains about employment conditions, resulting businesses purchasing their labour - important because society promotes environments in which humans do not feel exploited, and workers are human beings - Support an activist government that intervenes relation to promote decent work conditions - Support minimum employment standards to ensure decent working conditions - Believe that promoting collective bargaining is the most effective way to promote healthy distribution of wealth throughout economy - Collective bargaining empowers workers by putting them on a more equal footing as they bargain for the sale of their labour - ensures that workers receive a reasonable share from the economic pie produced by their labour, benefitting the economy (fuelling consumption) and society (by producing a decent standard of living) - argue that the shift towards NSE is a trend being pushed and implemented by human resource management professionals CRITICAL PERSPECTIVE - Focus is the inherently exploitive nature of the capital system - Argues that interest of labour and capital are in conflict - Objective of the capital is to extract from labour maximum effort and control at minimum cost - Always more workers than jobs because workers depend on capital in a capitalist system - Says that collective bargaining and employment regulation can be harmful to workers interest because it can blind workers to their exploitation and distract them from more important objectives Chapter 3 (pg, 81) THE ROLE MANAGERS PLAY IN ORGANIZATIONS - Traditional view of the role of managers was that managers were able to reflect systematically on information before making decisions and that their job was relatively clear and narrow - Mintzberg’s study found that managers engage in a variety of short-duration activities, and constant interruption suggested that there was little time for systematic reflections - he offered a classification of the various roles managers play - presented 10 roles of classification within 3 categories: interpersonal roles, informational rules, and decisi
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