3.3 - Workers

Question 1

Time rate

Answer 1

A rate of pay per hour worked, so the more hours an employee works the more he or she will earn

Question 2

Piece rate

Answer 2

An amount paid to an employee of a firm per unit of output produced, for example for each article of clothing made or kilogram of apples picked

Question 3

Fixed annual salary

Answer 3

A job will be divided into 12 equal monthly payments regardless of the number of hours actually worked by the jobholder each week over and above an agreed amount of time,
- often between 35 to 40 hours per week

Question 4

Performance related payments

Answer 4

The more sales they make or revenue they earn for the organisation they work for the more they will earn, usually as a percentage of their sales e.g. sales commission

Question 5

Fringe benefits

Answer 5

• Benefits provided in addition to the normal salary
• They can be significant in influencing occupational choices
  Includes benefits such as such as childcare, free lunches, gym membership, company car

Question 6

Non-wage factors of job selection (name 4)

Answer 6

• hours of work
• holiday entitlement
• promotion prospects
• flexible working arrangements
• qualifications required
• quality of working environment
• how secure the job is
• how satisfying the work is
• fringe benefits
• training opportunities
• pension entitlement
• opportunities for promotion
• interesting and varied tasks
• distance or time it takes to travel to and from work

Question 7

Labour markets

Answer 7

Markets where people offer their services in exchange for a salary

Question 8

Factros affecting the supply of labour (3)

Answer 8

1. Changes in the net advantages of an occupation
2. Changes in the provision and quality of education and training
3. Changes in size and age distribution

Question 9

Factors affecting the demand of labour (4)

Answer 9

1. Changes in consumer demand for goods and services
2. Changes in the productivity of labour (more productive - more demanded)
3. Changes in the price and productivity of capital
4. Changes in non-wage employment costs

Question 10

Factors affecting an inidividuals bargaining power (4)

Answer 10

• Membership of trade union
• Age and experience
• Level of education
• Current supply condition of the job

Question 11

Wage differentials

Answer 11

The difference between the wage received by one worker or group of workers and that received by another worker or group of workers

Question 12

How do regional differences in labour demand and supply conditions influence wage differentials?

Answer 12

There will be higher demand of a certain job which would benefit the area, and less demand for more useless ones
* less demanded job may experience a lower salary than the highly demanded one even if the competency levels are similar

Question 13

How might local pay agreements differ within occupations?

Answer 13

Demand of a certain job may increase or decrease the wages they are willing to pay their employees
- in high-cost urban areas (London) employers may increase wages to keep their employees at a higher standard of living (high rent) and reduce complaints about work environment

Question 14

How will different abilities and qualifications affect wage differentials?

Answer 14

The longer a job takes to train for, the more skilled that job is
- this will lower the supply of employees as only a few can meet those job-specific (specialised) standards
- this can result in higher pay

Question 15

How will fringe benefits influence wage differentials?

Answer 15

They will attract more employees who are seeking customised benefits, non-monetary facilities as payment instead of the money itself
- will increase supply

Question 16

Reasons for wage differentials within and occupation (name 3)

Answer 16

• Regional differences
• Length of service
• Local pay agreements
• Non-monetary reward differ
• Discrimination

Question 17

Reasons for wage differentials across occupations (name 3)

Answer 17

• Different abilities and qualifications
• Dirty jobs and unsociable hours
• Labour mobility (occupational and geographical)
• Lack of information about jobs and wages
• Fringe benefits
• Job satisfaction

Question 18

Advantages of specialisation for firms and workers (name 4)

Answer 18

• Production costs lowered
• Employees maximise their skills and abilities
• More goods and services produced = output increased
• Time is saved on training and during the production process
• Workers are more highly skilled = higher wages
• Can result in unemployment
• More efficient allocation of resources
• Specialist machinery can be employed

Question 19

Disadvantages of specialisation for firms and workers (name 4)

Answer 19

• Products become too standardised because they are mass produced
• Labour becomes inflexible
• Workers are bored
• Occupational immobility may occur
• Workers feel undervalued

Question 20

What wage factors influence occupation choices? (name 4)

Answer 20

• Wages
• Salary
• Commission
• Bonus
• Piece rate pay
• Performance related pay
• Share options
• Fringe benefits

Question 21

What non-wage factors influence occupational choices? (name 4)

Answer 21

• Length of training or level of education required
• Job security
• Job satisfaction
• Career prospects (defined pathway to promotion)
• Level of challenge
• Status