1. Chapter 10 Work and the Economy

2. Key Terms  Underemployment  Unemployment Rate  Work Ethic

3. The Economy, Work, and the Workforce  The changing economy  The changing workforce  The changing composition of the labor force  The changing meaning of work

4. The Changing Economy  US was initially agrarian (agriculture is dominant form of work)  Mid 19 th century was period of rapid industrialization for US  Globalization of the economy is important because it means a significant increase in amount of international trade and investment.

5. Capitalism  is an economic system in which there is private, rather than state, ownership of wealth and control of the production and distribution of goods  people are motivated by profit and compete with each other for maximum shares of profit.

6. Consequences of Globalization  Consequences of globalization are controversial.  Businesses shift their operations to other nations where the employees work for lower pay than Americans and other business expenses are less, thus lowering the costs of products and services.

7. Detrimental Changes  Changes that are detrimental to American workers:  Outsourcing and downsizing  Downsizing is a reduction of the labor force in a company or corporation  More temporary and part time jobs with no fringe benefits  Decline in union power and membership  Reduced corporate taxes, less revenue for social programs  Income for American families has declined

8. The Changing Workforce  The labor force has increased greatly  consists of all civilians who are employed or unemployed but able and desiring to work  Increase in division of labor  The separation of work into specialized tasks  The need for skilled workers has increased  The need for farmers and unskilled workers has decreased

9. Changing Composition of the Labor Force  The educational level of the workforce has increased  The proportion of workers who are female has increased  The number of illegal immigrants in the workforce has increased  Since the 1960s, the proportion of workers who are union members has declined

10. The Changing Meaning of Work  Should work be satisfying or is it a way to attain maximum consumption?  Work ethic remains strong  80% of people are satisfied with their jobs  Majority of people want work, but work that is important and fosters a sense of achievement.

11. Important Facets of Work  Income  Job duties and working conditions  Job satisfaction  Period of work  Job status  Job security

12. Work as a Social Problem  Unemployment and Underemployment  Dissatisfaction and Alienation  Work Hazards and Stress

13. Unemployment and Underemployment  Workers cannot achieve their desired quality of life without working full time  The unemployment rate is the proportion of the labor force that is not working but is available for work and has made specific efforts to find work.  Unemployment does not affect all groups the same (See Table 10.1, p. 302)

14. Dissatisfaction and Alienation  In a capitalist society, the worker is estranged from his or her own labor because it is coerced (Marx)  Workers are alienated to the extent that they perceive themselves as powerless and isolated (social psychology)  Either way, job dissatisfaction is still a problem

15. Work Hazards and Stress  1.19 million cases of injuries and illnesses that resulted in time off in 2010.  Work hazards include work-induced stress and work-related injuries and illnesses.  Psychological as well as physical hazards occur in the workplace.

16. Work and the Quality of Life  Work, Unemployment, and Health  Work and Health  Unemployment and Health  Interpersonal Relationships

17. Work and Health  Work can have a negative impact on the emotional and physical well-being of workers.  Underemployment poses health risks.  Job satisfaction and working conditions also affect health.  Strong relationship between stressful working conditions and physical and emotional illness.

18. Unemployment and Health  Stress of being unemployed can be as serious as the stress of working in undesirable conditions.  Unemployment is detrimental to both physical and emotional well-being.  This is true not only in the US, but in other nations, as well.

19. Interpersonal Relationships  Work-related stress and unemployment can adversely affect interpersonal relationships.  Shift work may create both personal stress and interpersonal problems.  Underemployment is also associated with physical and emotional health.  Unemployment places strain on an individual’s relationships, including family relationships.  Some problems stem from a conflict between work and family responsibilities.

20. Contributing Factors  Social Structural Factors  The Capitalist Economy  The Political Economy of Work  The Political Economy of Unemployment  The Organizational Context of Work: Unions  Contemporary Work Roles and Environments  The Political Economy of Work Hazards  Social Psychological Factors  Attitudes  Socialization  The Ideology and Reality of Work

21. The Capitalist Economy  In business and corporations, profit tends to be the “bottom line.”  Subservience of workers’ needs to organizational needs exists.  Union busting has been going on since unions were first formed.  Downsizing and outsourcing reflect the drive to maximize profits.  Increasing use of temporary and part- time workers.

22. The Political Economy of Work  A large number of jobs provide inadequate support and benefits to enable a family to live well.  Some jobs have wages that have not kept pace with inflation.  About 1 in 7 US jobs offers workers low pay and no health insurance or pension benefits.

23. The Political Economy of Unemployment  Structural unemployment is the result of the functioning of the political-economic system itself.  Structural unemployment can occur due to government control of economic swings.  There is an inverse relationship between unemployment and inflation.  Government spending can create jobs and then eliminate them  Technological changes can displace workers

24. Unions  Have been instrumental in bringing about higher wages, fringe benefits, and safer working conditions.  Union membership has declined because of various social factors and processes.  Layoffs  Adverse rulings  Globalization

25. Contemporary Work Roles and Environments  Job dissatisfaction and alienation reflect nature of work roles and work environments.  Work roles result from factors including technological developments, efforts to maximize profits, and bureaucratization of work

26. Three Consequences of Technology  Highly specialized tasks  Many jobs are more stressful  Depersonalization and isolation

27. Bureaucratization  Authoritarian organizations do not allow for employees to be involved in decisions that affect them and their work.  Built in conflict, including:  Role ambiguity, which is a lack of clear information about a particular work role  Role conflict

28. The Politics of Work Hazards  Some jobs entail more risk than others  Both federal and state governments have been lax in criminal prosecution of companies with inadequate safety measures.  Occupational Safety and Health Administration (OSHA) helps; however, accidents and deaths in the workplace continue to be a problem

29. Attitudes  Attitudes toward unions hurt workers  Power of labor unions has helped eliminate many unsafe working conditions  Sense of superiority that that people might have toward certain workers hurt them because others treat them with little or no respect because of their jobs

30. Socialization  Socialization process in the US involves an emphasis on achievement  Achievement involves a job that will enable you to do better than your parents and to fulfill yourself  To be happy, you have to find a job that will help you achieve that happiness.

31. The Ideology and Reality of Work  American ideology emphasizes value of work and equal value of all work  However, in practice not all work is given equal value  Compounds problems of the unemployed, who define a social problem as personal and blame themelves.

32. Public Policy and Private Action  Government programs that are effective and inexpensive  Unemployment benefits  Other benefits  Minimizing work-family conflict  Government and union actions

33. Public Policy and Private Action  Job enrichment  Flextime, which allows for input with scheduling  Participatory management or organizational democracy  Employee ownership  Direct ownership – employees own shares  Trust ownership – employees acquire shares over time  Cooperative ownership – employees get votes according to shares they hold