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Chapter 5

Chapter 5 labour context.docx

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Department
Administrative Studies
Course
ADMS 1000
Professor
Natalie Guriel
Semester
Fall

Description
Chapter 5 – Labour Context Distinguishing Work and Employment  Employment o a form of work in which a person (an employee) is dependent upon mostly subservient to an employer. o Work arrangement/ business arrangement  Employment relationship o Employer has control over the methods of production, authority to decide how much and what to produce and tight to direct when and where, and how the employee is required to perform their job. o Basic exchange- employee sells their labor in exchange for compensation, usually in the form of wages and perhaps benefits of some sorts.  Employment contract- governs the relationship o Set our specific rules, obligations, and rights applicable to the employer and employee, and is usually enforceable in a court of law, like other contracts.  People who work but are not employed o Independent contractors/ self employed- provide labour services in exchange for compensation, but are running their own business rather than surviving as an employee for another business or person. o Partners- sell their labour but they are part owners of the business and not its employees o Contactors and partners earn revenues not wages  Some people work through temporary placement organizations o Assign work for other businesses  Volunteers or interns- unpaid workers  Employment relationship involves legal rights and entitlements  Legislation regulates employment on the theory that employees require government protection due to their vulnerability o Employment standard legislation  It entitles employees to a minimum wage, overtime pay, mandatory time off and holiday pay, notice of termination o Human rights laws prohibit discrimination in employment and access to unemployment insurance, public pension schemes, and workers compensation benefits are often depending on how long they have been employed before claiming. Independent contractor Employee Degree of control Determine the hours they work Told when and how to do the work and the manner in which the and is subject to supervision of some work is performed and can sort usually hire other people to perform the work Degree of economic risk Assumes the risk of nonpayment Paid their wage even if the customer of bills by, or loss of customer of their employer does not pay their as well as the potential benefit of bills the of non payment is the profit employers but they also do not share direct profit Degree to which the worker Person who performs work for an performs an essential service for organization is an employee, than one an organization who performs work alongside organization. Degree to whish the More likely to own their own Have tools provided by their employer organization provides the tools necessary tools Standard and non standard employment  Standard employment relationship (SER) o Characterized by regular , fulltime, hours at a single employer, often spanning an entire working career o Employees receive periodic pay raises, and their employers usually provide benefits and pension plans o Functions in the shadow of an extensive array of government regulation that guides the relationship and is underpinned by a strong social security net that provides protection to employees whose employment ends for one reason or another.  Ex: laid off worker entitles to unemployment benefits  Ex: injured employed entitled to compensation benefits  Non-standard Employment (NSE) o Is less stable, characterized by part-time, temporary, variable working hours, lower pay, fewer employer- provided benefits, shorter job tenure, no access to collective bargaining. o Most are young workers, who have recently graduated from university with less experience o Self employed workers / independent contractors, contribute to income inequality, because of lower pay, fewer employer paid benefits , less job security, and not entitled to many social protections o They are considered vulnerable or precarious workers, because they live in the cusp of poverty and are unable to save or plan for the future because their source of income is very low. Four Perspectives on Work  Based in a variety of perspectives that vary on issues such as: o The role and effectiveness of markets o The role of bargaining power n the employment relationship o The role of management and the human resource function in particular o The role of unions and collective bargaining  4 perspectives 1. Neoclassical perspective o Competitive market- best means of organizing complex economies and societies o The force of supply and demand, freely operated with limited state interference will ensure optimal assignment of skills and expertise through the economy as well as the fair distribution of wealth. o People and businesses are motivated by self interest.-decisions to maximize personal interest – called the invisible hand of the market o Adam smith – argued pursuing their own self interest, individual are led by the invisible hand to promote the greater public interest even if its not in their intentions  The state should focus and ensuring a legal system is in place to protect property rights and to enforce contracts and to prohibit anti competitive practices but other wise should keep taxes low and government administration and regulation minimal. o Neoclassicalist perceives the labour relationship as simply another form if free exchange between informed and free actors.  Ex: the min wage example o Some feel protection laws do more harm then good. o They are not concerned with working conditions being driven too low in the absence of worker protection legislation but believe the invisible hand will ensure this does happen  Ex min wage unable to attract qualified workers o The equilibrium market rate 2. Managerial perspective o Related to modern human resource management o Same belief as neoclassical perspective that government intervention of work and employment should be minimal o Want business, employee, employer to be successful o Claim workers treated with respect, good wage, benefits, and working conditions are most productive and so the business is successful o Employment standards and regulations should be kept at a minimum. o Only those employers who treat there employees horribly should be punished not the good employers o Unions and collective bargaining means there is no management, o Managerial don’t support the idea of unions and collective bargaining 3. Industrial Pluralist Perspective o Imbalance of power between workers an
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