Chapter 13 - Work and the Economy Flashcards
Economy
institution that organizes the production, distribution, and exchange of goods and services
3 sectors of the economy
- Primary/Agricultural Sector = farming, fishing, logging, mining
- Secondary/Manufacturing Sector = urning raw materials into finished goods
- Tertiary/Service Sector = includes the work of nurses, teachers, lawyers, hairdressers, computer programmers, etc.
Productivity
amount produce for every hour worked
Markets
social relations that regulate exchange of goods and services
Divison of labour
refers to the specialization of work tasks; the more specialized the work tests in society, the larger the division of labour
Two types of division of labour
- Social division of labour = based on age and gender (preindustrial)
- Detailed division of labour = rooted in taylorism
Deskilling
The process by which work tasks are broken into simple routines requiring little training to perform; usually machinery replaces labour and increases management control over workers
Fordism
method of industrial management used on assembly-line methods of producing inexpensive, uniform commodities in high volume
Assembly Line
Model T, first automobile mass produced on assembly lines, ford
Taylorism
developed precise working procedures after observing work processes
Mcdonaldization
refers to the application of the rationalization principles of the fast food industry to others sectors of society
The Precariat
a growing class of people for whom availability of work is uncertain and who earn low wages
Labour Market Segmentation
the division of the market for labour not distinct settings.; work is found in different ways and workers ave different characteristics; slim chance of moving from one setting to another
Primary Labour Market
high skilled, well educated workers employed in large corporations that enjoy high levels of capital investment; employment is secure; earnings are high; fringe benefits are generous
Secondary Labour Market
large number of women and ethnic minorities, employees tend to be unskilled, low education, work in small firms that have low levels of capital investment, insecure employment, low earnings, fringe benefits are limited
Human Relations School of Management
emerged in 1930s as a challenge to Taylor’s scientific management approach, advocated less authoritarian leadership on shop floor, careful selection and training of personnel, greater attention to human needs and employee job satisfaction
Quality of Work Life
movement originated in Sweden and Japan, small groups of workers and managers collaborating to improve quality of goods produced and communication between workers and managers
Co-determination
a german system of worker participation that allows workers to help formulate overall business strategy, German workers’ councils review and influence management policies on a wide range of issues, including when and where new plans should be built and how capital should be invested in technological innovation
Unions
organizations of workers that seek to defend and promote their members’ interests
Internal Labour Markets
social mechanisms for controlling pay rates, hiring and promotions within corporations while reducing competition between a firm’s workers and external workers
Professionals
people with specialized knowledge acquired through extensive higher education
Free Market
prices determined by supply and demand
Regulated Market
supply and demand are limited by social forces to control the prices
Capitalism
the dominant economic system in the world; private ownership of property, competition in pursuit of profit
Corporations
legal entities that can enter into contracts and own property; taxed at lower rate than individuals; owners normally are not liable for corporation’s debt or any harm it may cause the public
Communism
name given by Karl Marx for the classless society that, he said, is bound to develop out of capitalism; public ownership of certain basic industries, substantial government intervention in the market
Globalization
1980s, benefited corporations
Democratic Socialist
countries are characterized by government ownership of some basic industries and substantial government intervention in the operation of the market
Oligopolies
giant corporations that control part of the economy; few in number and tend not to compete against one another; they can set prices at levels that are most profitable for them
Conglomerates
large corporations that operate in several industries at the same time
Interlocking Directorates
formed when an individual sits on the board of directors of two or more non-competing companies
What caused each sector of the economy to rise to dominance at a particular time?
revolutions regarding how people work
In Canada, what is happening to the proportion of workers in the manufacturing sector?
it is steadily shrinking
Agricultural revolution in work
Began 10,000 years ago; people established permanent settlements; started herding and farming; led to soaring productivity
Industrial revolution in work
Began 220 years ago; machines greatly increased producers’ ability to supply markets
Postindustrial revolution in work
Took place in 20th century as service industries came to dominate economy
Why is no economy purely Laissez-Faire?
the state has to intervene heavily to create markets in first place
Two of the most effective means that businesses have adopted to cut costs and boost profits
introducing new technologies, organizing the workplace in more efficient ways
