...Analyse and critically discuss the nature and purpose of the employment relationship for organizations and the relationship between work design, planning, pay and the employment relationship. Explain how expectancy theory; reinforcement theory and equity theory help managers to build an effective pay strategy as part of managing employment relationships Words: 2,695 . Introduction The term ‘employment-relationship’ is interchangeable with others when describing aspects of the overall relationship. According to USQ (2004) this relationship is basically the exchange of work by employees for pay from employers. While the primary relationship is that between the employer-employee, as organisations have evolved, grown in size and number, so too has the diversity of employees, each with their own particular ‘psychological contract’ (Hodgkinson 2003). The purpose of a defined and productive employment relationship is to equitably manage the various relationships, and resolve conflicts (USQ 2004). Breaching this psychological contract potentially will have negative implications for loyalty, motivation, and worker commitment to the organisation (Hislop 2003). This essay will discuss some of the factors in the workplace, which have an effect on the principals at each end of this relationship, and maintaining such diverse relations within a context of equity to each. The objective of business is to increase profits by increasing the effectiveness of production...
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...range of interpretations and theoretical studies. Primarily, the Psychological Contract refers to the relationship between an employer and its employees, and specifically concerns mutual expectations of inputs and outcomes. The Psychological Contract is usually seen from the standpoint or feelings of employees, although a full appreciation requires it to be understood from both sides. Simply, in an employment context, the Psychological Contract is the fairness or balance (typically as perceived by the employee) between: how the employee is treated by the employer, and what the employee puts into the job. The words 'employees' or 'staff' or 'workforce' are equally appropriate in the above description. At a deeper level the concept becomes increasingly complex and significant in work and management - especially in change management and in large organizations. Interestingly the theory and principles of the Psychological Contract can also be applied beyond the employment situation to human relationships and wider society. Unlike many traditional theories of management and behaviour, the Psychological Contract and its surrounding ideas are still quite fluid; they are yet to be fully defined and understood, and are far from widely recognised and...
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...What is the role of the reserve army of labor Marx? How would you gauge Marx's approach in relation to the theories of effective demand developed by Kalecki and Keynes? Throughout economic theory, there are various responses to the creation and subsequent role of unemployment and the wage rate. In Karl Marx’s theory, unemployment, or the ‘reserve army of labour’, is necessary for capitalism to regenerate itself, and is also what determines the wage rate. For John Maynard Keynes and Michael Kalecki, unemployment is caused by the failure of effective demand. This essay will first demonstrate Marx’s approach to employment through the study of the reserve army of labour and the cyclical tendencies of the capitalist system, and then Keynes and Kalecki’s theories of effective demand which led to the proposition that the economy ‘will not settle at full employment equilibrium; by and large it will not even reach it except by chance’ (Halevi, 2007, week 7, p. 8). For Marx, unemployment, or the reserve army of labour, is a ‘necessary requirement for capital accumulation’ (Halevi, 2007, week 4, p. 2), linked to fluctuations in the wage rate and thus the rate of profit. The existence of a large reserve army of labour keeps wages down, because there are many unemployed workers available and willing to work for little money. Like the classical economists, Marx contends that low wages mean capitalists reduce their costs of production, resulting in a higher rate of profit and...
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...Hannah Grace S. Bielza AC-301 The Keynesian Theory * In the depression of the 1930s democratic nations were concerned about the problem of inflation. Wherein, general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling. * Because of inflation, workers are unwilling to accept further cuts in their wages for the reason that their earnings were already cut down by unemployment and part-time work. It is really hard to work, earning a small amount of money while having a huge amount of expenses that’s why a lot of workers don’t want to cut their wages. * Explanation of wages and wage changes in this kind of setting inevitably directed attention to general wage levels rather than to wage rates in the labor markets. This means that the employers focus on this average wage paid to employees rather than the rate per hour or based on production. * John Maynard Keynes advanced his full employment theory by publishing “General Theory of Employment, Interest, and Money” in 1936 which provides basic analysis on which the theory is based. * To many theorists in the classical tradition, Adam Smith’s, “Wealth of the Nations” provided rationalization for policies they thought necessary but could not embrace with clear conscience. There’s no scholarly document to prove that this will fit more closely to the needs of the times. Keyne’s Theory on Employment * Keynes admitted that the Classical and Neo classical...
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...Keynes’s “GENERAL THEORY” valid only for modern capitalism? The modern capitalism interpretation: ............................................................................................ 2 Some evidence in the modern capitalism interpretation: ................................................................. 2 elements of a general theory of employment and potential instability under capitalism: ................. 3 ð A “monetary economy” and the search for pecuniary gains: ................................................... 3 ð Determination of employment in the short period: ................................................................. 3 ð The rudiments of a theory of expenditure and critique of Say’s law: ....................................... 4 ð A more detailed theory of expenditure: .................................................................................. 4 ð Uncertainty, expectation and confidence: ............................................................................... 4 ð Investment, asset choice and liquidity preference: ................................................................... 4 ð Employment and the essential properties of money: ............................................................... 4 ð Potential instability: ................................................................................................................ 5 ð Investments, saving and banking system:............................................................
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...Macroeconomic Theory Principles of Economics (Econ 1) 1 EMPLOYMENT AND UNEMPLOYMENT (INTRODUCTION) • The Keynesian revolution was driven by the desire to explain the high unemployment (U) of the 1930’s. • The solutions proposed by Keynes, focused on the use of countercyclical fiscal policy (AD demand management) to cure U. • Hence countercyclical fiscal policy was seen as effective in smoothening business cycles. • Cyclical U is associated with GDP being below equilibrium. 2 EMPLOYMENT AND UNEMPLOYMENT (INTRODUCTION) • But it is possible to have equilibrium U even when GDP is at its potential level. • It is therefore necessary to explain both cyclical and equilibrium unemployment. • Under this topic, we will cover the following: – Measurement and definitions, – Theories of U, – Economic costs of U, and – Solutions of U. 3 EMPLOYMENT AND UNEMPLOYMENT (Definitions and Measurement) • The unemployment rate: It is the ratio of the number of unemployed persons to the total number of persons in the labor force. It is usually expressed as a percentage. • The labor force consists of all those persons who are willing to work at a market equilibrium wage, and who either have jobs or are seeking work. 4 EMPLOYMENT AND UNEMPLOYMENT (Definitions and Measurement) • Discouraged workers: These are people who are willing to work at the going wage, but have given up looking actively for work, because they do not expect to find a job. • They are not registered for unemployment...
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...A Critical Review of Keynes’ General Theory of Employment, Interest & Money By:- Deepika Rana Priyanka Gupta Biographical Account John Maynard Keynes is doubtlessly one of the most important figures in the entire history of economics. He revolutionized economics with his classic book, The General Theory of Employment, Interest and Money (1936), regarded as probably the most influential social science treatise of the 20th Century. The son of the Cambridge economist and logician John Neville Keynes, John Maynard Keynes, born in 1883, was bred in British elite institutions - Eton and then King's College Cambridge. During his freshman year at Cambridge, Keynes was invited to join an intellectual group called "The Apostles" that met periodically to discuss literary, philosophical, political, and aesthetic questions. Through his association with the Apostles, Keynes became introduced to the philosophy of G. E. Moore; critics note the pervasive influence of Moore's Principia Ethica on Keynes's A Treatise on Probability, his only philosophical work, as well as on his economic methodology. His first book on Indian currency (1913) was directly related to his experience at the India office. From 1914 to 1918, J.M.K. was called to the UK Treasury to assist with the financing of the British war economy. He excelled at his job and the influence he gained earned him a position with the British delegation to the Versailles Peace Conference in 1918. J.M.K was appalled at the vindictive...
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...cessation of employment at “ISKANDHAR SCHOOL” Associate Degree in Human Resource Management Maldives Business School 24th May 2014 3156 words Table of Contents Executive Summary …………………………………………….……………………..………5 Introduction …………………………………………………………….…………………...… 6 1. How to reward employees in order to motivate and retain them 1. Link between motivational theory and reward ………………………………...….7 Abraham Maslow’s motivational Theory hierarchy of needs ………7 Relationship between Motivation theory and rewards…………..…..8 Conclusion ………………………………………………………...…….9 2. Evaluate the process of job evaluation and other factors determining pay The Process of job evaluation used in Iskandhar School…………10 Conclusion …………..…………………………………………………11 Recommendation ……………………………………………..………11 3. Assess the effectiveness of reward systems in different contexts Reward System used in Iskandha School ………………….………11 Conclusion ……………………………………………………..………11 4. Methods organizations use to monitor employee performance Methods of monitoring employee performance in Iskandhar School ……12 2. Mechanisms for the cessation of employment 2.1 Reasons for cessation of employment with an organization Four reasons for cessation of employments in Iskandhar School ………14 Four reasons for cessation of employments in Maldives Customs Service ……14 2.2 Employment exit procedures used by two organizations Employment exit procedures used in Iskandhar School …………………15 Employment exit procedures...
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...Uni Name | Youth Labour Segmented Market Theories | Essay | | Client Name | @XXXXXXXX | | Contents Introduction 2 Segmentation of the Labour Market 3 Theories about Segmented Labour Markets 3 The Dual Labour Market Theory 6 Summary 9 References 10 Introduction The behaviour and life experiences of young people have vastly evolved throughout the past few decades. These changes impact on their relationships between family and friends, their experience of the job market, as well as the educational system and of course, their ability to establish themselves as an individual. According to Furlong and Cartmel (1997), many of these changes are due to the structural changes in the job/labour market. Further, the social organisation of taking different career paths in life has been replaced with more discrete variation (Haaland, 1991). Making that shift from school life to working life tend to be less determined, more flexible, and above all daunting (Ellingsæter, 1995). Beck (1997) and Giddens (1991) claim that the terms “individualisation” and “risk” are often associated with younger people’s behaviour and conditions within a labour society. Individualisation denotes the traditional social groups or segments that are of importance like gender, ethnicity and class are branded as being fragmented and somewhat less important (Pollock, 1997). Though, Furlong and Cartmel (1997) argue that these social structures are of importance and that...
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...Critique of Classical Theory & The Rise of Keynesian Theory Classical Economic Theory Classical theory of economics states that a free market economy is self-regulating and that with full employment, the economy would reach equilibrium. The classical theory is fundamentally based on the Say's Law which states that "Supply creates its own Demand". This also made the classical economists believe that there was nothing to prevent an economy from growing and hence attaining a state of full employment. This would be achievable as long as employees are willing to work for a wage that was no more than their productivity and in this situation, the profit-seeking businesses would want to employ everyone. According to the Classical economists, full employment of real GDP stays the same regardless of the price level. During a recession or a depression, the aggregate demand in the economy would fall and in the current price levels, consumption reduces and thus there would be an excess of goods in the market. This excess supply would result in the fall of the prices as well as wage rates and hence go back to the state of equilibrium. The Great Depression & critique on the classical economic theory But this theory was proven wrong by the Great Depression as it was seen that when output is below the full employment level, price levels did not fall because wages and resource prices did not fall as they were sticky. In order to have more employees, the employers needed to earn...
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...Economics theories (Neo) Classical Theories 1. Introduction The term 'Classical' refers to work done by a group of economists in the 18th and 19th centuries. Much of this work was developing theories about the way markets and market economies work. Much of this work has subsequently been updated by modern economists and they are generally termed neo-classical economists, the word neo meaning 'new'. 2. Belief Classical economists were not renowned for being a happy, optimistic bunch of economists (in terms of their economic thinking!). Some believed that population growth would be too rapid for the resources available (Malthus was a particular exponent of this view). If this wasn't enough to depress the rate of long-term growth (and the rest of the population along with it!) then diminishing returns would cause further problems for growth. They believed that the government should not intervene to try to correct this as it would only make things worse and so the only way to encourage growth was to allow free trade and free markets. This approach is known as a 'laissez-faire' approach. Essentially this approach places total reliance on markets, and anything that prevent markets clearing properly should be done away with. Much of Adam Smith's early work was on this theme, and he introduced the notion of an invisible hand that guided economic activity and led to the optimum equilibrium. Many people see him as the founding father of modern economics. The Victorian period...
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...main changes that have occured to the employment relations environment. A successful employment relationship is the fundamental element of any successful business or organisation, hence, it is essential and the reason of all the organizations continues seeking methods to improve and maintain these relationships. There are many philosophers and writers have studied and written lots of different theories and approaches that are related to employment relationship. These theories and approaches have changed rapidly from the classical era to the modern era. Furthermore, illustrating issues that have evolved through changes in the employment relations environments such as the nature of work, technology, managerial regimes, regulation, policy and globalisation. The purpose of this essay is to identify and explain the main changes that listed above. The second part of this essay identifies those changes or improvement of employment relations environment that can benefit both the employers and employees by creating a healthy and supportive working environment. Employees who have strong employment relationships, are more satisfied and keen on work, also, they tend to have helpful and friendly co-workers as well as high levels of employee trust and commitment with employer. The establishment of regulation and policies such as labour law, minimum wages, Occupational Health and Safety (OHS) enhance safety and security in workplace. Thus, strong employment relationships are beneficial to both...
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...a disgruntled investment banker manager. Equity theory explains the reason for Andrew Wilson deciding to launch the venture. Working endless hours in a pressure intensive environment of investment and feeling that he was not being paid properly for his output input ratio Wilson not only made a career change but made a leap of faith into entrepreneurialism. Underpayment inequity is defined as when a person believes that he is not receiving the outcomes given his inputs and efforts. Remedies of underpayment inequity have been noted to be a lowering of a person’s inputs such as decreasing work hours or lowering the effort or being absent or asking for compensation increases. Inequity involves a person and a referent; it is not applied in isolation. Leaving the employer is one remedy noted. Wilson’s experience with the investment banking industry likely instilled the need to implement the equity theory principle at Boston Duck Tours. Most notably, Wilson wants to ensure his employees are equitably treated insofar as their outcomes and inputs are in equilibrium. Top performers are attracted to deliver their best performance if their outcomes are perceived to match their inputs. One learning theory, operant conditioning theory, is present at Boston Duck Tours. Employees conducting the tours, a.k.a. conducktors, adorn themselves with costumes to make the tour more interesting to their customers. B.F. Skinner’s theory posits that people will learn to perform behaviors...
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...Employment-At-Will Doctrine Daryl C. Fingers Professor Anne Dewey-Balzhiser Law, Ethics & Corp. Governance-Legal 500 November 1, 2013 Introduction Employment at will doctrine states employers can terminate an employee for good cause, for bad cause, or cause morally wrong without fear of legal recourse (Halbert, Ingulli, 2012). Every state in the country operates under this law but with exceptions and that’s where the waters get murky. The multitude of exceptions found state by state produce a variety of interpretations and applications of how the employment at will should be applied (Gibson, Lindley, 2010). The first exception to the employment at will law came when the United States Supreme Court ruled employers could not punish or fire employees for organizing into unions(Halbert, Ingulli, 2012). The unions use collective barging agreements to regulate working conditions for employees. These conditions include that union workers cannot be terminated without just cause (Gibson, Lindley, 2010). The Supreme Court, also included other types of formal employment contracts in this exception ruling as long as the contract does not include an at will clause (Muhl, 2001). The onset of Title VII of the 1964 Civil Rights Act made it illegal to terminate an employee on the basis of their race, sex, religion, or national origin (Halbert, Ingulli, 2012). Not until the 1980’s did the bulk of the exceptions take place. The following exceptions are considered to be the main...
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...The main points of contrast between the Keynesian and Classical theories of Income and Employment are discussed in brief as under. 1. UNEMPLOYMENT: The classical economists explained unemployment using traditional partial equilibrium supply and demand analysis. According to them unemployment results when there is an excess supply of labour at a particular higher wage level. By accepting lower wage, the unemployed workers will go back to their jobs and the equilibrium between demand for labour and supply of labour will be established in the labour market in the long period. This equilibrium in the economy is always associated with full employment level. According to classical economists unemployment results when the wage level of workers is above the equilibrium wage level and as a result there of, the quantity of labour supplied is higher than quantity of labour demanded. The difference between the two (supply and demand) is unemployment. J. M Keynes and his followers, however reject the fundamental classical theory of full employment equilibrium in the economy, they consider it as unrealistic. According to them full employment is a rare phenomenon in the capitalistic economy. The unemployment occurs they say when the aggregate demand function intersects the aggregate supply function at a point of less than full employment level. Keynes suggested that in the short period, the government can raise aggregate demand in the economy through public investment programmes to reduce...
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