Chapter 4

Challenges and Changesin the Labour Market

Nike

After reading the venture of Nike and also looking at it’s SWOT analysis in Chapter 3, here is a video of how Nike came to be and some successes and misfortunes that have occurred. Phil Knight is the CEO of Nike.

Branded : Phil Knight Nike Documentary

Fill out this chart using textbook 69-71to help you.  1. Identify the key characteristics of each age.

Agricultural age

Industrial age Technology age

Where People Work

How People Work

What People Value

Create notes using your textbook 69-71 1. Identify the key characteristics of each age.

Agricultural age Industrial age Technology age

Where People Work Farms Factories enterprises

How People Work farm work labourers entrepreneurs and enterprising people

What People Value land, cooperation standardization, specialization, and centralization

knowledge, creativity and opportunities

2. The Information Age has created a number of jobs that did not exist a decade ago. Identify four jobs that did not exist 10 years ago. Briefly describe each job.

Job Job

Web designers (complex) Bloggers

On-line film makers On-line shopping

App developer Personal Shoppers

On-line Teaching On-line stock brokers

2. The Information Age has created a number of jobs that did not exist a decade ago. Identify four jobs that did not exist 10 years ago. Briefly describe each job.

Job Job

Web Masters ???

web page designer

Internet police / cyber cops

robot technicians ???

cell phone designers ???

cyber café managers ???

Mr. Haering will not give you the Ch. Handout for Ch. 4

3. How did the attitude of employers toward their enterprising employees change over time? 

3. How did the attitude of employers toward their enterprising employees change over time? 

Employers today want innovative, enterprising employees who can move them towards achieving higher goals.

Current Labour Market Trends

 

Trends• changes in the marketplace

Labour Market

• supply of, demand for, workers in the economy

Attrition

• people leave a company to relocate or retire

Assignment

• Trends in the economy result in opportunities for both entrepreneurs and enterprising people.

• Open your book to p72 of the textbook to help you identify some opportunities that developed in or near Ottawa as a result of each trend.

• Include the name of specific products, services or organizations.

Trend Opportunities for Entrepreneurs

Opportunities for Enterprising People

Rapid growth in global economy

   

Increase in the number of small- and medium-sized businesses

   

 

Rapid change and growth in the technology sector

  

 

Increase use of contract labour

  

 

Trend Opportunities for Entrepreneurs

Opportunities for Enterprising People

Rapid growth in global economy(People have money – can spend it)

hospitality jobstourism  

offer a new tour – Ottawa tour(lots of tourists come)

Increase in the number of small- and medium-sized businesses

Food (trucks – cheaper) wineries, beer (micro breweries popular)

intro new kinds of wine, creative bottles or boxes / packagingTreewell sap

Rapid change and growth in the technology sector

e-businessesbookstores, it is easier to keep track of inventory when on-line, specialty items

make a website, social networking

Increase use of contract labour

hire consultants or experts when you do not know how to do it

improved staff knowledge / upgrading staff’s skills

What employers are looking for: • education, training

• want:– academic skills, – personal management skills and – teamwork skills

• trend is to:– farm-out low-skilled and unskilled work to

under-developed countries

Assignment:

• Technology and a changing economy have both had a strong impact on the way people work.

• For each job, list several changes that have taken place over the past decade.

Traditional Job How the Job Has Changed

Small Business Owner  

Personal Trainer  

Teacher  

Restaurant Manager  

Sales Representative  

Advertising Executive  

Traditional Job How the Job Has Changed

Small Business Owner 

- more technology based(acct’g on computer, need a web page, direct deposit, inventory scanners)- more challenging (tech) (more competition)- global market - target market has changed

Personal Trainer 

- equipment & safety features- more job- increased tech in equip

Teacher 

- smart boards- on-line learning- use of computers- can’t strap students- teachers more a mentor

Restaurant Manager 

- better specialized equip- more health & safety regulations- more competition-more customers-A&W fast feedback 

Sales Representative 

- cell phones & laptops - BlackBerries- fast paced communication

Advertising Executive 

- more channels (TV ads)- more use of colours-electronic billboards-Internet based advertising & social networking

Compensation

Different ways to pay your employees

• Hourly Wage– Overtime Rate

• 1½x normal wages for hours worked over 8 per day or 40 per week

• Often 1½x for Statutory holidays• Minimum wage in ON is $10.25

– Usually, the maximum number of hours you can work in a week is 48

– This can be exceeded in:• Exceptional circumstances• Emergency work• Averaging situations

• Salary– Often, overtime is not paid

• Straight Commission– A sum of money given to an employee after

completing a task, such as selling goods or services. • A salesperson in a clothing store may earn commission

based on a percentage of his sales. • An insurance broker may earn a commission dependent

upon how many policies she sells or for reaching a target number of policies sold.

– Commissions provide incentives for workers to be productive, but can cause some problems.

• create an intensely competitive atmosphere among workers

• don’t draw a regular wage.

• Salary plus Commission

– Base + incentive– $40,000 + 1.5% of sales

• Incentive Bonus– Reward for good performance– Meet sales targets

• Performance-Based Pay– Piecework– Paid for # completed– Paid for clicks

• Fee for Service– Lawyer, Dentist …

• Royalty or Licensing Fee– Software, music …

Royalty : A payment to an owner for the use of property, especially patents, copyrighted works etc.

• Stock Options : employer gives employee stocks of that company as incentive.

Benefits you may wish to offer your employees

A motivated employee is productive employee

Benefits

• Sick pay (often 10-20 per year)

• Fitness programs

• Antismoking programs

• Addiction treatment

• Job stress – alternatives

• (thinking day)

Benefits

• Counselling – Family– Personal– marriage

• Education / professional development – Conferences – Working Lunches– Workshops (1 day)

• Paid vacations

• Sick leave

• Bereavement and personal days

• Employee discounts

• Company car

• Health, dental, optical plans

• Group life insurance

• Long-term disability

• Accidental death benefits

• Daycare

• Profit sharing

• Expense accounts– Hotel– Meals– Mileage or Air Ticket– If longer than two weeks:

• Laundry

• Parking– Free at your place of work– Pay to park on a city lot

Bike Central Station, Amsterdam

• Work-Life Balance

 

• p 75 What Motivates Talent?

 

Alternative Work Arrangements

Telecommuting• working from home • with computer access to files, • collaborating with others via e-mail, skype

and software programs

• Advantages:– Less commuting time– More productive– Higher morale

Teleconferencing • hold a meeting using audio and visual

connections

Compressed Work Week

Flexible work schedules

Job Sharing Arrangements

Part-time work

Personal leave programs

• Chapter 4 describes the benefits of several alternative work arrangements. However, each has its drawbacks as well.

• List some of the drawbacks that might occur in each situation. Let’s look at some now.

Work from home

• hard to separate work and home

• home demands may interfere with work

• may feel isolated

Compressed work week

• long work hours may cause fatigue

• fatigue leads to errors

Flexible work schedule• lack of routine

• people will not know when to expect you

Job Sharing

• may be hard to communicate with partners to avoid duplication

• some things may fall through the cracks

Part-time work

• lack of opportunity for advancement

• low income

Personal Leave Programs

• may miss out on changes / opportunities in the workplace during absence

Opportunities forEnterprising Employees

Enterprising Employees

• generates innovative ideas – communicates them to others

Enterprising Employees• team player

– work effectively in a group– submit self for good of the team

• entrepreneurial skills– see opportunities, capitalize, take risks, make

decisions

Enterprising Employees cont’d

• network– connect with others for mutual gain– understand politics

Enterprising Employees cont’d

• influence– negotiate successfully with coworkers,

employees, customers, superiors

Enterprising Employees cont’d

• time management– know when to say “no”

Enterprising Employees cont’d

The Changing Workplace

BLMs 11, 12 for evaluation

Trend Opportunities for BusinessGlobalization Import and exports

Increase in number of small and mid size business. The government has incentives for

entrepreneurs to start their business (money and resources)

Rapid growth in technology. New technologies mean more opportunity for entrepreneurs. Small businesses can compete with larger ones

Increase use of contract labour. If you are an expert in one area, you can offer your services to different businesses. (outsourcing)

Additional Terms to know…

Intellectual Capital

• employees who build their knowledge and skills on the job

Departure

• leave voluntarily– ask for letter of

recommendation– ask whether you could use

them as a future reference– exit interview

• discuss future goals• DO NOT leave with ill will• opinions for improvement

Dismissal• leave involuntarily

– lateness, absenteeism, poor work habits ....

• corrective interview– discuss problem– plan for improvement– both sign as accurate– don’t improve

>> dismissal

Lay-off

• If a union, normally in order of seniority

• Often get severance package– (may be 1 wk for each yr of service)

• May be offered outplacement counselling

Retirement

• Often 65 years old• Law states you cannot be forced to retire at

65

• Some companies offer:– 90 factor (age + yr of service = 90)– 85 factor (age + yr of service = 85)

• pension?

Rights of an Employer1. Decide what their

employment needs are

2. Require that employees have job-related qualifications and/or experience

3. Hire, promote, and assign the most qualified person for a position

4. Establish standards for evaluating job performance

Employer’s Right cont’d

5. Require that employees adhere to clearly define job descriptions and performance criteria

6. Discipline, demote or dismiss incompetent, negligent or insubordinate employees

7. Set employment terms and conditions

8. Establish salary and wage scales either independently or through negotiations

Rights of the Employee• Minimum age for employment

• Hours of work

• Minimum wage

• Overtime, holiday & vacation pay

• Paid public holidays

• Parental leave

• Recovery of unpaid wages

Employers CANNOT

• Discriminate: – gender, race, religion, sexual reference,

physical disability, age

Employers CANNOT

• Allow harassment: – feel threatened or uncomfortable

• rude jokes, offensive comments, sexual suggestions

Employees have the right to…

• be informed about known or foreseeable hazards in the workplace

• help identify and resolve job-related problems in safety and health

• refuse dangerous work if they have reasonable cause to believe that a situation constitutes a danger

Review Assignments Textbook pages 85-86

Complete the following individuallyBe prepared to hand this in 

Lessons Learned, Q #1, 3, 5, 6 on pg 85

Venturing Out: Q #3 on page 86

• Additional Optional assignments which could be used.

Communication Assignment: Apply for a Job By now, your personal venture is likely beginning to take shape in your mind. Before starting any venture, it’s a good idea to gain some experience in your field of interest. Visit career sites on the Internet or use current periodicals to find job opportunities that could provide the experience you need. Choose a job that interests you and write a letter of application. Include information about the enterprising characteristics that you could bring to the workplace. Include a copy of the ad you are applying to. Evaluation: BLMs 25, 26   Brainstorm other ways of presenting yourself to a prospective employer that would demonstrate creativity and skills.

Application Assignment:Customer Service 1. Today’s customers say they want to be “delighted” by the experience of buying a product or service. What do you think they mean? 2. Describe a time when you were delighted by the customer service you received from a business. What made you feel this way? 3. Choose a type of retail or service business such as a card store, a restaurant, or a dry cleaner’s. List five strategies this type of business could use to ensure a high level of customer service.

Communications Assignment Make a Crossword Puzzle Use the handout. Complete the assignment. Hand in: a finished crossword on one sheet and an answer key on another sheet by tomorrow.

Review Assignments Textbook pages 85-86 

Lessons Learned, Q #1 - #8

Venturing Out: Q #1, #3, #4,    Group Work 

Venturing Out: Q #6