MANAGEMENT FREEDOM OF ACTION

Management of Freedom of Action



Management of Freedom of Action

I think that the management flexibility in determining the relative wage rates is largely constrained by product market, labour market, collective bargaining, technology, and the internal labour market, as wages may be determined through collective bargaining between trade unions and management, or individual negotiations between employee and employer or just a custom.

DiscussionProduct market

As the product market is constrained by the scope of the monopoly power that the Union exercises to maintain the course of the work may be seen to assume that this course just announced a trade union, which leaves companies to hire as many or as few people as they choose at this rate. When deciding how high can set a course, the Union must take into account the implications for employment. Firms may change the product design and method of production so as to use less labour. To the extent that they can not economize on the use of labour and wages in this work is included in the total cost of production, higher costs arise that firms may be forced to turn to their customers through higher prices for products. Customers who may then buy less of them, especially if there is international competition in product markets, employment, and will again have to suffer (Alistair, 2007, 1123-1140). Labour Market

Office of the freedom of action is also limited in the labour market, when the status of the breadwinner has been distinguished from other types of work, it was noted the existence of a separate agreement on the rate of wages between the recruit and the employer. The law continues to be a separate contract of service, even if the wage rate was set collectively. Previously, there was often no individual negotiations, because ordinary wage rates prevailed, which could be unchanged for many years at the time.

After industrialization has been established in practice continued to some extent, to regulate wages and protect workers who come in separate agreements. But its impact was much less extensive: from time to time, rates have changed. Although initially no mention of the cost of living, when price growth was a common and sustainable, must have been the informal understanding among employees that each area in making their own arrangements to hold a higher rate. During periods of high demand for labour, in addition, the employer will ...