3.3 Workers (chapter 18) Flashcards
Wage rate definition
Payment received by a worker per unit of time worked or unit of output produced
Piece rate definition
When a worker is paid per unit of output produced
Time rate definition
When a worker is paid per hour worked
Bonus definition
An extra payment to workers as a reward for good performance
Commission definition
When a worker receives a small percentage of the value of the sales they make
Minimum wage definition
A legally set minimum amount that a worker can be paid per hour
Wage differential definition
The difference in wages between different workers
Elasticity of demand for labour definition
The responsiveness of labour demand to a change in the wage
Elasticity of supply of labour definition
The responsiveness of labour supply to a change in the wage
Specialisation definition
When a worker, firm or economy concentrates on particular products or tasks
Division of labour definition
Workers specialising on particular tasks
Trade union definition
An association which represents the interests of a gorup of workers
Collective bargaining definition
When a group of workers negotiates together with their employer
Industrial action definition
Action taken by workers to disrupt production and put pressure on employers to agree to demands
Strike action
When workers temporarily refuse to work
What does wage factor refer to?
The pay on offer having a big influence on what job a person decides to do.
The higher the ___________ on offer, the more a person would ___________
wage rate
want to do the job
Why does the time rate system benefit the employer? worker?
as they can easily estimate their labour costs
workers can bargain collectively about the rate paid.
Whats a disadvantage of the time rate system?
It does not reward hard work since it pays lazy and industrious workers the same.
Whats the requirement for the piece rate system to work?
if a worker’s output can be easily measured and the product is standardised.
in what industries is piece rate system used? which industries don’t use it?
used in manufacturing and agriculture
not used in the service sector
What is overtime pay?
Pay for workers who work in excess of the standard working week. It is usually paid at a higher rate
How can overtime pay benefit employers? Employees?
Workers with young families may be attracted to jobs that offer regular overtime.
Employes can respond to higher demand without taking on new workers, until they are sure that the higher demand will last.
if demand declines, its easier to reduce overtime than to sack workers.
Disadvantages of overtime pay?
There’s a risk that workers may become tired
output they produce over the day may not increase and even its quality may fall
What kinds of workers may be attracted to jobs which pay bonuses?
Those who welcome a challengeand have confidence in their own ability
What might happen if workers perceive the payment of bonuses as unfair
resentment may be caused which will cause low morale as a result the quantity or quality of their output may fall and some may resign
What are some non-wage factors of the supply of labour?
-job satisfaction
- type of work
-working conditions
-Working hours
-Holidays
-Pensions
- fringe benefits
- Job security
-career prospects
-size of the firms
- location
Manual work vs. Non manual work
Non manual work
-physically less tiring
-offers more metal stimulation
-tends to be better paid
-tends to lead to higher status
manual work
-some people are prepared to undertake dangerous work e.g deep sea diving
How can working hours vary?
Some occupations offer workers the opportunity to work part-time as well as flexible hours.
This is sometimes to suit the employer with workers working longer hours is demand is high. Sometimes to suit the worker
Some occupations require workers to work unsociable hours e.g nights and evening
Some workers work in shifts- different periods of the day and nights.
What does the law set down in certain countries?
minimum length of holiday entitlement for full-time workers
What are pensions?
Financial help post unemployment.
(varies in different countries and different occupations. e.g workers in public sector receive more generous pensions
