Exam study questions.docx - Unit 1 Study Questions 1 Why do organizations and individuals enter in employment relationships For social and economic

Exam study questions.docx - Unit 1 Study Questions 1 Why do...

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Unit 1- Study Questions 1) Why do organizations and individuals enter in employment relationships? For social and economic reasons. Employers hire employees to accomplish tasks, making employment an economic relationship. Workers agree to provide their time and skills aka labour and to the employer in exchange for compensation aka pay and benefits. Employees find work as they must exchange their labour with someone to acquire money to afford the necessities of life. The agreement that employees enter with their employers is referred to as the wage-rate bargain. In Canada, the exchange of labour for remuneration occurs in the context of a capitalist economy. A capitalist economy is characterized by the private ownership of capital, the allocation of resources through market mechanisms, and the profit motive. In terms of employment, this typically means the following: The duties and obligations of the employer and employee are asymmetrical: the employer issues orders, and the employee obeys them. Employers must profit or fail; thus, employers face pressure to cheapen and intensify labour as one means to increase their profitability. Employers’ interests lie in maximizing profits, while workers’ interests lie in maximizing wages and controlling their conditions of work. Employment is not only an economic relationship but also a social one too. By accepting employment, employees are accepting management’s authority and agreeing to adhere to management’s rules and regulations. Employment requires co-operation between employees (sometimes called labour) and employers (sometimes called capital), because both parties benefit from a profitable business. But there can be conflicting interests (i.e., profit versus wages, determining how and how quickly work will
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