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Flashcards by venkatanarayanan, updated more than 1 year ago
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Created by venkatanarayanan
over 9 years ago
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| Question | Answer |
| Why do People work | There are a number of different reasons why people work. These can include pay and job satisfaction. |
| What is the definition of a full time worker? | A worker who works the maximum number of hours required in the normal working week for a particular job. |
| What is the definition of a Part- time worker? | This refers to a worker who only works for a fraction of the working week of a full-time employee. |
| What is the definition of temporary employment? | Work that will only last for a specific period of time (usually a number of weeks or months). |
| What is the definition of seasonal employment? | Work that is only required during a particular time of the year (e.g Christmas time or harvest) |
| What does pay from work allow people to do? | It will allow them to purchase goods (such as cars and clothes) and services, as well as pay for family members that do or do not work). |
| What can pay do? | Be a motivation factor but some people work in order to provide money for a specific purpose. |
| Why do people work even when they don't need the income? | They do it for job satisfaction . For the social aspect of the job . The enjoyment of the job |
| Why are some main reasons why people don't work? | . Disability/health problems . Retired .Education . Travelling . Bringing up children/ childcare . Unemployment/ redundancy |
| How is Growth in services affecting work? | As modern economies develop, there is a gradual shift in employment patterns. Employment in manufacturing and other secondary industries declines, and employment in the service sector grows. In the UK, many of the manufactured good previously produced here are now imported, meaning that there is less need for manufacturing jobs. |
| What is the definition of specialisation? | Where each worker concentrates on only one small aspect of the entire production process. |
| What are benefits of specialisation? | .Workers can become skilled of they focus on one task rather than be involved with the whole production process .Output can be produced more quickly as worker become familiar with the reduced number of tasks they have to complete .Business output could have lower cost due to faster and more skilled workers and this saving may be shared with workers in higher wages .Workers can concentrate on the tasks that they are most skilled at. |
| What are the limitations of specialisation? | .Workers and production will become interdependent. Workers will depend on each other to create the overall output, which may cause problems if one are of production fails, through mistakes being made. .Jobs will become boring if workers are only involved in a repeated small part of the production process. .Morale in the workplace may fall so jobs become more repetitive and absenteeism and labour turnover may rise. .If a worker is absent, it may be hard to arrange a cover for their section if workers are untrained in jobs other than their own .Workers will become less flexible and it will be harder to adapt if new types of goods need to be produced. |
| How has ICT through the internet effected work? | The growth in online retailing removes the need for as many people to be employed in shops and other business outlets |
| How has ICT through E-mail effected work? | Email has changed how we communicate at work- speeding up and easing how we can communicate with large numbers of people near and far. This reduces the need for telephone calls and letters |
| How has ICT through Home working effected work? | The ability to use E-mail and the internet, as well as being able to access work-based computer networks from home, has led to an increase in the number of people who work from home. Many people welcome flexible working as it helps them manage both work and looking after a young family. This can help businesses to reduce costs as they have to provide as many facilities at their main offices they would if all workers were based 'on site' |
| What is the definition of flexible working | Workers who are more adaptable in time, location or manner of work completed (e.g. home working) |
| Why are people paid? | People are paid for the labour they supply. Generally people are paid more the longer they work |
| What is Salary? | Salaries are stated as yearly earnings but are paid monthly. They are normally paid to full-time permanent workers. Jobs paying salaries are more likely to be skilled, non-manual occupations |
| What is a wage? | Wages are calculated as an hourly rate multiplied by the number of hours worked . Wages are normally paid weekly. They are normally paid for lower skilled jobs, and for part time or temporary work |
| What is commission? | Workers paid commission receive payments for achieving certain targets - offered connected with sales. A worker who adds to the firms sales of receives a percentage of the sales of value as a reward. Commission encourages workers to achieve more sales. Workers can be paid partly or fully on commission |
| What is overtime payment? | Businesses sometimes need workers to work longer hours. This is especially true when production needs to be higher than usual but this will be temporary. Rather than employable workers a business will encourage its workforce to work longer hours. These extra hours are paid at a higher rate and are down as overtime payments |
| What is shift work payment? | Some workers will not work traditional hours but will work in shifts. This often occurs when a business needs to be kept open for longer than the normal working day |
| What is BACS? | BACS stands for bankers automated clearing the services and is a system used within the UK for allowing the electronic transfer of money between banks. This means that it avoids the need for paper-based documents when making payments. The pavements can take up to 3 days to move from one bank account to another |
| What are fringe benefits? | These are when workers are paid in ways other than money. For example fringe benefits of a job might include a company car, private healthcare or schooling fees. Fringe benefits are offered paid for highly skilled highly paid jobs |
| What is the definition of expenses? | Payments given to workers compensate for any expenditure necessary to complete their work |
| What is a pay slip? | The payment for work will appear on a piece of documentation that is a pay slip. The pay slip will show the payment made to the work of the various subtractions from this pay. |
| What is Gross pay? | Where is pay refers to the total amount of pay that a job will pay. However the work I will not be able to keep the full amount to gross pay. Deductions will be made even if these are calculated at a later date in the case of self assessment. So this will reduce the amount that the worker actually receives. Gross pay is useful to know as it allows comparison between different jobs |
| What is net Pay? | Net pay refers to the pay after all deductions for tax and national insurance and pension contributions have been made. This is sometimes known as take-home payment as it is the final amount. Net pay is not strictly come parable and the amount of deductions would depend on various factors such as the level of income and the type of pension |
| What is income tax? | Income tax is a tax on money paid to the worker. Although not all income is taxed to the income tax will be paid as a percentage of earnings. People only pay income tax on earnings above a tax-free allowance. The percentage rate paid an income tax depends on the level of income which is indicated by a tax code as incomes rise that percentage rate of income tax paid will rise |
| How can Income tax be paid? | Pay as you earn (PAYE) where tax is deducted head by the employer before income is paid to the worker Self-assessment (SA) for workers who are self-employed tax is paid by the worker |
| What is national insurance? | National insurance contributions (NIC) are paid by employees on incomes to build up an entitlement to certain benefits and the state pension. Like income tax national insurance is paid as a percentage of income earned. The rates at which it is paid are different to those of income tax |
| What are pension contributions? | Some workers will pay fewer (NICs) because they make payments to either a private or a company pension scheme. Work is paying a percentage of their income which will then be invested. The work will receive the pension on reaching the retirement age |
| What could be other possible deductions from income? | There may be other deductions from workers income such as: - trade union subscriptions - staff Association membership fees - student loan repayments |
| P45 and P60 | P45 a document provided by employer when a worker leave the organisation P60 A document provided by an employer on a yearly basis showing total pay and deductions for the year If you are employee the employer must give you one of these documents about the tax you pay. Which one you get depends on whether you got on at the end of the year or if you leave a company |
| What is tax code? | Workers have different tax code which relate to different amount of tax free allowance each worker has |
| What is the supply of labour? | The supply of labour refers to the amount of work each worker is willing to perform. Each worker has a decision about whether or not to work. In affect each worker can decide how to split their time between work and leisure. The supply of labour is affected by a combination of monetary and non-monetary factors |
| What are monetry factors? | The main factor that determines the supply of labour is the level of wages offered. The higher the wage rate of salary the more willing the worker will be to supply their labour. This is because it I will work becomes more valuable to the work and as a result it becomes more tempting to work more |
| What are non-monetry factors? | In addition to the wage rate there are various non-monetary factors that influence how much a worker wants to work |
| How does Gender affect it? | Traditionally woman were less willing labour force and to supply the labour. However this trend has changed. Although there is still slightly higher proportion of men in the labour force the proportion of a man working has grown this is due to: |
| What has changed with gender now? | - Change cultural attitudes- it is my acceptable for women to work - Decline in primary and secondary sector industries are more likely to recruitment men rather than women Changes in legislation make it easier for women to work while raising a family. - Changes in tax and benefit system rewarding those with children who return to the workforce |
| How does Ethnic Origin affect it? | Traditionally the workers of nonwhite origin were less likely to be employed. Over the last two decades this has changed especially for males. And there is classified as white British are more likely to be employed another ethnic origin groups. However this is A controversial issue and the reasons for this are not clear |
| How does taxation affect it? | Income tax reduces how much of a wage or salary a worker is allowed to keep. If income tax is reduced then workers keep more of their pay thereby creating a greater incentive to work than before. He overall supply of labour (people wanting to work) will increase |
| How do State benefits affect it? | Benefits are provided in the UK for those looking for work but not currently working. If benefit payments as sufficiently low workers will be more willing to supply their labour as they cannot afford to remain out of work as long as they could if benefit payments were higher |
| What is demand for labour? | The demand for labour comes from businesses that need workers to produce the goods and services. However the demand for labour is unlike the demand for most goods and services |
| What is derived demand? | Businesses don't demand workers for their own sake but because businesses need workers to produce goods and services for the firm to sell. This is known as a derived demand. The demand for labour (i.e. for workers) is a derived demand |
| How the government influence the demand for labour? | The U.K. government will indirectly affect the demand for labour. Is because it will influence through legislation how much a business must spend on a worker in addition to the wage that it pays. Some of these influences are: right to paid holiday, Maternity/paternity pay |
| How are wages determined? | The market wage refers to the wage rate that would be paid if the demand for labour and the supply for labour were to match exactly. The market wage would ensure those wanting to work could find work at this rate rate and that businesses could find workers to employ. Is the way you treat was not set at this market trade the following would occur: If the wage was higher than more people would want to supply the labour than there were jobs available If the wage rate was the word then businesses would want to recruit more people than we are willing to supply their labour |
| What is differences in wages? | The wage rate for a particular job is determined by the demand for and the supply of labour. However there is not one wage rate for all workers. Workers are paid different amount depending on their job. These differences are known as wage differentials. There are a number of reasons that explain these |
| Reasons for differences in wages: Training and skills | Jobs that require more training in tires skills are likely to be paid more. This is because there are fewer people with these skills or level of training and businesses will need to pay more to ensure that they can attract these workers |
| Reasons for differences in wages: Gender | Women are likely to be paid less than men. This is partly due to a woman being more likely to take a career break to raise children meaning that they miss out on training and promotion opportunities. |
| Reasons for differences in wages: Age | Older workers are likely to be paid more than the younger workers. This is because they are likely to have more experience and possesses the skills needed for the higher paid jobs |
| Reasons for differences in wages: Trade Unions | Trade unions organisations that workers can decide to join. They protect workers and to negotiate for higher wages for their members. They can achieve this by the threat of industrial action. Trade unions can call members out on strikes (where they refuse to work for a period of time) in order to encourage businesses to pay higher wages |
| Reasons for differences in wages: Government influence | In the 1990s the UK government introduced a minimum wage. Before this some employers paid unfairly low wages. The minimum wage is the legal minimum hourly rate that can be paid to workers. It Varies depending on the age of the worker |
| Why do wage rates change? | Surplus of labour Shortage of labour |
| What does Surplus of labour mean? | If there is a surplus of labour, then more people want to work in a particular occupation than the number of jobs available. This is likely to lead to lower wages in this occupation as businesses can afford to pay less as there are more workers available |
| What does Shortage of labour mean? | Is there is a shortage of labour in a particular industry businesses will need to offer higher wages. This will encourage more workers to supply the labour for that industry |
| What does minimum wage mean? | lowest legal hourly rate that can be paid |
| What is unemployment? | Unemployment refers to those who are not currently working but are seeking work. We have already seen the reasons why someone may choose not to work. We will now consider the case of people who want to work but cannot find employment and why this is a problem |
| What are costs of unemployment to the individual | Unemployment creates costs for society and the economy as a whole. There are costs of unemployment for the individual |
| What are monetary costs of unemployment? | A person who is unemployed will not receive any income except for benefit payments. As stated earlier in this chapter the benefits paid to the unemployed are dependent on personal circumstances (eg Single/married/with children) but the amount to significantly below the average weekly pay in the UK |
| What are non-monetary costs of unemployment? | Loss of skills- there longer someone means unemployed the more skills they lose. Then you will not be up to date with the latest on the job training Health- those who are unemployed are more likely to suffer from poor health. This is especially true when it comes to mental health issues Family breakdown- The unemployed are more likely to experience family problems with higher martial breakdown rates |
| What is the duration of unemployment? | Many of the costs of unemployment to the individual are made worse by an extended period of unemployment for shorts periods of unemployment the costs are less severe |
| Why does the duration of unemployment vary? | As there are different reasons for the various duration of unemployment |
| Why does the duration of unemployment vary: Skills and training | The more highly skilled person is the more likely they are to find new jobs when they are employed |
| Why does the duration of unemployment vary: Qualifications | School leavers without formal qualifications may face longer periods of unemployment because they are considered to be less attractive to business |
| Why does the duration of unemployment vary: Age | Older people may find it hard to get jobs because they often expect higher wages, and they are also considered to be too old to train for new positions. However age related discrimination is illegal |
| What does government strategies to help the unemployed mean? | The government is rightly concerned about unemployment and is launched a number of policies to tackle both the level of unemployment, and also policies to deal with the duration of unemployment. These policies have been specifically designed for the different types of people who are unemployed. This is connected with the personal life cycle |
| Government strategies to help the unemployed: Tax allowances | Tax allowances I love people to earn up to a certain level before they start paying income tax. This is partly designed to ensure that the unemployed Who take on jobs will not be financially worse off once there is any unemployment related benefits |
| Government strategies to help the unemployed: Jobseekers' allowance | The benefit payments to the unemployment and now linked to the person providing evidence that they are actively seeking work. This reduces the problem of unemployed from meaning on benefits indefinitely |
| Government strategies to help the unemployed: Working tax credits | Older unemployed people are likely to have family commitments. Taking a job mean mean that they are not only lose unemployment benefit that they might have high cost of childcare once they are working. As a result the government lets those who have taken jobs receive benefits through working tax credit's. This means that they don't lose all the benefits that they received while unemployed |
| Government strategies to help the unemployed: The new deal | This policy focuses on providing training for a bit we have been employed for an extended duration it particularly concentrate on those aged under 25 because it is believed that they are most likely to be unemployed due to lack of skills |
| Government strategies to help the unemployed: Education | Government is encouraging students to undertake the vocational qualifications in schools and colleges. The introduction of vocational diplomas is intended to ensure that those students who find academic study difficult to not leave education unprepared for the world of work. All students have been affected by changes in government education policy. The introduction of key and functional skills (such as ICT and communication skills) is meant to equip students with skills which are increasingly important for employment. |
| Government strategies to help the unemployed: Apprenticeships | Apprenticeships work alongside experienced staff and gain job specific skills. They will normally receive training with the local training provider such as a college possibly on a day release scheme (i.e. One day per week away from the workplace). This helps both the businesses (as apprentices don't get the full wage as a normal employee) it also helps the apprentice as they will gain skills that make them employable |
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