IRE244 MIDTERM Flashcards
What is an IR systems frame work?
model that helps us understand how things like strikes or work agreements happen in workplaces. It looks at how different groups (workers, bosses, and the government) interact and what outside factors (like laws or the economy) affect those interactions.
Why do we need an IR systems frame work?
To make sense of labor relations: It helps explain why things like strikes happen or why workers and bosses agree on something.
To prevent problems: By understanding the system, we can stop conflicts before they get worse (like avoiding a strike).
To help decision-making: It shows what factors to think about when making decisions about employees, like pay or working conditions.
Explain and understand the IR systems framework diagram. (External Environments)
These are the factors that come from outside the workplace but have a big impact on labor relations. There are four key elements:
Economic: Refers to things like the state of the economy (e.g., is there a recession or economic boom?) that can affect job security, wages, and how willing workers and employers are to negotiate or strike.
Political: How government policies or political parties influence labor relations. For example, if a government supports workers’ rights, unions may have more power.
Legal: The laws that govern labor relations, like minimum wage laws, labor union rights, or workplace safety regulations.
Social: Societal attitudes and cultural factors. For instance, in some societies, unions might be seen as essential, while in others, they might be less influential.
Explain and understand the IR systems framework diagram. (Actors)
These are the main players in the industrial relations system:
Government (Gov’t): The government can influence labor relations through laws, policies, and by sometimes stepping in to resolve disputes.
Management (Mgmt): Represents the employers or the business side. They negotiate with unions and make decisions on wages, working conditions, and more.
Union: Represents the workers. They negotiate for better pay, job security, and other benefits on behalf of employees.
Explain and understand the IR systems framework diagram. (Internal Inputs)
These are the internal factors within the workplace and actors that drive their decisions:
Goals: What each actor wants to achieve. For example, unions may want better wages for workers, while management may want to reduce costs.
Values: The principles or beliefs that guide the actors. For instance, a union might prioritize fairness and job security, while management might prioritize efficiency.
Power: The ability or leverage one group has over another. For example, if a union is strong and can organize strikes, it has more power.
History: The past relationship and events between the actors. If there’s been a lot of conflict (like past strikes), it can influence current decisions.
Explain and understand the IR systems framework diagram. (Conversion mechanisms)
These are the methods and processes used by the actors to interact and make decisions:
Certification: The process of officially recognizing a union as the representative of the workers.
Bargaining: The process where unions and management negotiate to agree on wages, working conditions, and other workplace matters.
Mediation/Arbitration: These are methods used to resolve disputes when negotiations break down.
Mediation involves a neutral third party helping the two sides reach an agreement, while arbitration involves a third party making a binding decision.
Explain and understand the IR systems framework diagram. (Outcomes)
These are the results of the interactions between the actors through the conversion mechanisms:
Union Recognition and Security: Whether the union is officially recognized and can operate securely without interference.
Collective Agreement: The contract negotiated between the union and management that covers wages, hours, and other working conditions.
Due Process: The procedures for handling complaints and resolving disputes fairly within the workplace.
Strikes/Lockout: When negotiations fail, workers may go on strike (stopping work), or employers may lock out workers (preventing them from working).
What is the economic environment?
Overall economic conditions in which businesses and workers operate. It includes factors like employment rates, inflation, the availability of capital, and the general health of the economy
What is supply and demand?
Supply - sellers (It’s how much sellers are willing to make and offer at a certain price.)
Demand - desire (It’s how much buyers want (or desire) the product at a certain price.)
what is the competitive economic model?
a simple way to explain how prices and quantities of goods and services are decided in a market where many buyers and sellers interact.
Parts of the competitive economic model.
Many Buyers and Sellers: Lots of people buying and selling.
Supply and Demand: Sellers provide the supply, buyers create the demand.
Equilibrium: Where supply and demand balance to set the price.
Competition: Sellers compete with each other, keeping prices fair.
Price: Decided by the balance between supply and demand.
Efficiency: Competition encourages sellers to keep costs low and quality high.
What is a Competitive Labor Market?
A market where wages and the number of jobs are determined by supply (workers available) and demand (jobs available). Employers don’t set wages; the market does.
Are Most Labor Markets Competitive?
No, most labor markets aren’t perfectly competitive, but the competitive model is used as a benchmark to compare more complex labor markets.
Key Assumptions of the Competitive Model
Many employers: No single employer controls wages.
Wage takers: Employers follow the wage set by the market.
No barriers to entry: Anyone can enter the occupation freely.
What is a Wage Taker?
Employers don’t set wages. They have to offer the wage determined by supply and demand in the market.
What does “no barriers to entry” mean?
It means there are no restrictions (like licenses or unions) stopping people from getting a job in a competitive market.
Why is the competitive labor market model important?
It’s a simple starting point to understand how wages are determined. Economists compare it to real-world labor markets to see where the differences are.
What is Supply of Labor?
The supply of labor refers to the number of people who want to work in a particular occupation.
What Affects the Supply of Labor?
Wage rate (total compensation).
Working conditions.
Amount of training required.
Preferences of employees (personal choices).
How does the wage rate affect the supply of labor?
The higher the wage, the more people will want to work in that occupation. This means the labor supply curve is upward sloping (higher wages = more workers).
How do working conditions affect labor supply?
Better working conditions make a job more attractive, increasing the supply of labor (more people want to work there).
How does the amount of training required affect labor supply?
If a job requires lots of training, fewer people may want to enter that occupation, reducing the supply of labor.
