HRM: CHAPTER 7

21問 • 1年前

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This theory is based upon the fundamental concept that labor is a commodity and we have to pay the price according to supply and demand. When the labor supply is greater than the demand, the lower is the price and when there is greater demand the higher the price.

Classical Wage Theory

is described as wage which permits the recipient to live in a manner in keeping with his position in the society. This theory is the basis in the implementation of minimum wage laws. The creation of the Tri-partite board: Labor, Management, and Department of Labor is the answer to the study of the implementation of just wages.

The Just Wage Theory of St. Thomas Aquinas

This theory holds the idea that the working capital of the nation provides a fund from which wages can be paid. The fund should be divided by all the workers proportionately. When a certain group gets a greater share of the total fund, the rest in the group will have less to share

The Wage Fund Theory

Labor is a commodity that is determined by the bargaining process between the buyer and seller. The sellers of labor are the workers and the buyers are the users or industries that utilizes their services. The bargaining theory brings about the organization of labor unions. These unions bargain with management for their services. The management then sets the discounted value of labor based on the value of output in question.

Bargaining Theory of John Davidson

The supply of labor in any given economy on the whole depends upon the total number of individuals who want to work and available for work. Worker’s mobility, which is the transfer from one company to another due to opportunities in the other company, affects the structure of wages in the industry. Difference in wages is not the only reason for employees to transfer to another company: better opportunities for advancement, more benefits, better working environment and corporate atmosphere.

The Marginal Productivity Theory

This theory tries to established the relationship between wages and the level of economic activity. The more income the workers get, the bigger the purchasing power for the workers; this increases the consumption of goods and services Increased consumption of goods generates employment opportunities.

The Purchasing Power Theory

Presented by Karl Marx Emphasizes that labor is the sources of all products and that without this important component, there could be no goods for human consumption. Labor must get the greater share of profit.

Labor Theory of Value

Wages should be based on the cost of living. An increase in income would mean more consumption. More consumption increases the prices of goods and thus living wages also need to be increased proportionately.

Standard of Living Theory of Wages

represent the payment of one factor of production that is manpower.

Wages

The line is drawn freehand so that about the same number of data points fall above the line. It follows the general trend of the data. This technique is the least scientific and reliable as this does not require scientific computations. It is more of a judgmental analysis that is used only by experts in the field of job evaluation.

Eye Inspection

This uses the statistical formula; the trend line will normally follow a straight path. It presents more accurately the relationships

The least Squares

Using another statistical formula; the trend line will normally take the form of a curve and may more accurately indicate the trend of the data.

The Second-Degree Curve

It is the range of the salary that is paid to an employee doing similar functions that has a minimum and maximum pay and a series of step adjustments.

Salary Range

earnings do not fluctuate with the amount of work performed or with the quality of output

By the time worked

- earnings depends on how much work the employee completes or on a related factor, such as the quality of the work.

By the Amount of the Work Produced

Manual laborer

Blue Collar

Office workers

White Collar

Job associated with women like nursing, secretarial, et

Pink Collar

these are workers who have received specialized training to do their jobs.

Skilled Labor

These are workers who have received no specialized training and have few specific skills.

Unskilled Labor

Arguably the elite of the labor grades, these are those workers who need an advanced degree to do their jobs.

Professionals

HRM: CHAPTER 8

WENDY FEDELIN · 19問 · 1年前

HRM: CHAPTER 8