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11352249
Ch.4 Labour and Division of Labour
Descrição
Form 4 Economic and Public Affairs (EPA) Mapa Mental sobre Ch.4 Labour and Division of Labour, criado por TSAI TSZ YING TIFFANY 4F35 em 12-11-2017.
Sem etiquetas
economic and public affairs (epa)
form 4
Mapa Mental por
TSAI TSZ YING TIFFANY 4F35
, atualizado more than 1 year ago
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Criado por
TSAI TSZ YING TIFFANY 4F35
mais de 6 anos atrás
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Resumo de Recurso
Ch.4 Labour and Division of Labour
Wage Payment
Piece Rate
Defition
Employee paid according to his quantity of output
Use under which situation
Output can be measured easily and product quantity can be easily monitored
Example
Factory
Advantage to emloyer
Raises worker's incentive to work
Increase productivity
Cost of calculating wages can be saved
Employees pay more attention on quality
Advantage to employee
Hard-working employees have higher income
Disadvantage to employer
Quality of output may drop
Stricter control needed
Extra resources used to measure worker's contribution
Disadvantage to employee
Income become unstable
Time rate
Definition
Employee is paid according to his working hours
Use Under which situation
Workers' contribution are costly to measure, have non-standardized outputs, required high product quality
Example
Teachers
Secretaries
Doctors
Advantage to employers
Advantage to employee
Income become stable
Disadvantage to employer
Workers may shirk
Less incentive for har-work
More supervision is required
Disadvantage to employee
Hard-working employees cannot have higher income
Profit-sharing
Definition
Portion of profit is distributed to workers
Use under which situation
When company would like increase employees working incentive
Example
Supervisors
Managers
Performance which is decisive to firm profit
Advantage to employer
Workers have higher sense of belonging&loyalty to the firm
Employees have higher working incentive
Part of the business risk can be shifted
Advantage to employee
Can earn more if firm earns a larger profit
Disadvantage to employer
Calculating wages will be costly
Disadvantage to employee
Income are unstable
Bear business risk as incomes fluctuate with firm's profit
Basic salary plus commission
Definitiom
Given basic salary and commission awarded as a percentage of the sales volume
Gift of money paid by customers to reward workers
Use under which situation
Wants to increase employee's working incentive
Basic salary allows workers have more stable income
When workers provide direct service to customers
Example
Marketing
Retailing industries
Catering industry
Advantage to emploers
Employees work harder to have bigger sales volume
Part of the business risk can be shifted
Supervision of work decrease
Advantage to employee
Hardworking employees have higher income
Good performance workers have higher income
Disadvantage to employer
Costly to calculate wages
Costly to calculate wages
Disadvantage to emploees
Income becomes unstable
Income become unstable
Tips
Mobility of Labour
Occupational Mobility
Measure the ease of moving from one job to another
If a factor can be used in another way, then occupational mobility is high
Factors affecting
Retraining Programs
Market obstacles
Remuneration and working condition
Specialized skill required
Market Information
Age
Geographical mobility
Measures the ease of a factor move form one place of work to another
If a factor can easily be changed to another workplace then its geographical mobility is high
Factors affecting
Transportation
Political factors
Social factors
Immigration law
Maket Information
Measure of labour
Labour supply
Quantity of Labour =Number of workers x Average working hours per worker
Quantity of labour in economy in certain period
Measure as the total number of working hour of all worker in certain period
Factors affecting
Size and structure of the population
Size of labour force increases, labour supply increase
Number of working hours
The Longer working hours, the lower the working incentive and willingness on work
Rewards for work
Wages, transports and housing allowances
Labour productivity
Labour productivity =Total output/Total working hours (unit per man-hour)
Measures the output per worker per unit of time
Cannot be raised by increasing working population and working hour
Factors Affecting
Education and training
Rewards and benefits
The more Rewards and benefits the more working incentive
Better working environment
Better health of workers
Mechanization or the quantity or quality of other factors of production
Division of labour
Better management
Division of Labour (DOL)
Calssification
Simple DOL
Produce a particular good
NO sub-division working process
Complex DOL
A worker specialises in a particular production stage
Have particular role in teamwork
Regional DOL
District or a country specialises in producing a particular good or particular production stage of a good
Advantages
Raise Labour productivity
Assigning the right person to do the right thing
Practice makes perfect
It save time in training
Save times in moving around jpbs
Encourages mechanization
Economy of capital goods
Fewer sets of tools are needed
Save resources producing capital goods
Improving living standard
Helps to produce a larger volume of goods and services
Reduce the average cost of production
Disadvantages
Work become dull and monotonous
Over-independence
Limited skills of workers
Greater risk of unemployment
Excessive standardization of products
Factors limiting the use of DOL
Size of market
Nature of product
Possibilities
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