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Chapter 12

192 million overall unemployed - Middle East and North Africa (13.2%) - Sub-Saharan Africa (9.7%) - Central and Eastern Europe (9.7) - Developed economies (6.7%) - Southeast Asia and the Pacific (6.1%) - South Asia (4.7%) - East Asia (3.8%) Learning Objectives Identify forces beyond management control that affect the availability of labor.

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59 views

Chapter 12

192 million overall unemployed - Middle East and North Africa (13.2%) - Sub-Saharan Africa (9.7%) - Central and Eastern Europe (9.7) - Developed economies (6.7%) - Southeast Asia and the Pacific (6.1%) - South Asia (4.7%) - East Asia (3.8%) Learning Objectives Identify forces beyond management control that affect the availability of labor.

Uploaded by

Prashant
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 29

chapter twelve

Labor Forces

McGraw-Hill/Irwin International Business, 11/e

Copyright 2008 The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives

Identify forces beyond management control that affect the availability of labor Explain the reasons that cause people to leave their home countries Discuss the reasons that some countries have guest workers

Explain factors associated with employment policies, including social roles, gender, race, and minorities.

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Learning Objectives
Discuss differences in labor unions among
countries

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Labor Quality and Quantity

Quality, quantity, and composition of labor


force are of great importance to an employer

Labor Quality The skills, education, and attitudes of


available employees Labor Quantity The number of available employees with the skills required to meet an employers business needs

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Worldwide Labor Conditions and Trends

Overall Size and Sector of the Work


Force International Labor Trends

Aging of Populations Rural to Urban Shift Unemployment Immigrant Labor Child Labor Forced Labor Brain Drain Guest Workers

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Primary Occupation of National Labor Force

Source: https://www.cia.gov/cia/publications/factbook/fields/2048.html (July 25, 2006).

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Aging Of Population

Source: U.S. Census Bureau, International, Midyear Population, by Age and Sex, www.census.gov/cgi-bin/ipc/idbagg (July 27, 2006

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Rural to urban Shift

Source: World Urbanization Prospects: The 2003 Revision (New York: United nations, 2003), pp. 3-4.

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Unemployment
192 million overall unemployed
Middle East and North Africa (13.2%) Sub-Saharan Africa (9.7%) Central and Eastern Europe (9.7) Latin America and Caribbean (7.7) Developed economies (6.7%) Southeast Asia and the Pacific (6.1%) South Asia (4.7%) East Asia (3.8%)
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Labor Mobility
Labor Mobility The movement of people from country to country or
area to area to get jobs Immigration Refers to the process of leaving ones home country to reside in another country Foreign-born Population comprises those immigrants whose move is permanent and may include taking citizenship Foreign Population who are guest workers
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Foreign and Foreign-Born Population in Selected OECD Countries

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Labor
Child Labor
The labor of children below 16 years of age who are forced to work in production and usually receive little or no formal education Primarily found in developing nations Existent in developed countries 70% is in agriculture

Forced Labor
Most common in South and East Asia
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Brain Drain
Brain Drain
The loss by a country of its most intelligent and best-educated people Record numbers of immigrants are moving to OECD countries in search of jobs When skilled workers migrate from developing countries they do so for professional opportunities and economic reasons

Reverse Brain Drain


The growth of outsourcing and the movement of highly educated, technologically skilled employees and research scientists to other countries
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Brain Drain: Countries with the Highest Percentage of Their College-Educated Citizens Living in Other Countries

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Guest Workers
People who go to a foreign country legally to perform certain types of jobs Guest workers provide the labor host countries need
Guest workers are desirable as long as the economies are growing When economies slow, fewer workers are needed and problems appear

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Considerations in Employment Policies


Social Status
Important with respect to labor force, especially in some cultures Caste: the group to which people belong in a system under which peoples place or level in a multilevel society is established at birth as being the same level as that of their parents

Sexism
Acceptability of women as full and equal participants in the work force ranges widely

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Womens Education
Studies show a direct correlation between womens education and Birthrates
Child survival rates
Family health A nations overall prosperity

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Female Illiteracy

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Ratio of Wages, Woman versus Men, Selected OECD Countries

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Racism
Black and White conflict
U.S., South Africa, Great Britain and elsewhere

Arab-, Indian-, or Pakistani and Black conflict


Africa

Tamils and Sinhalese Conflict


Sri Lanka
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Minorities

Traditional Societies

Tribal peoples before they turn to organized


agriculture or industry; traditional customs may linger after the economy changes

Minorities

A relatively smaller number of people


identified by race, religion, or national origin who live among a larger majority

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Employer-Employee Relationships

Labor Market

The pool of available potential employees


with the necessary skills within commuting distance from an employer A company must study the labor market when considering whether to invest in a country Sources include Foreign Labor Trends Handbook of Labor Statistics Yearbook of Labor Statistics
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Country Strike Rates, Selected OECD Nations

Source: Rachel Beardsmore, "International Comparisons of Labour Disputes in 2004," in Office for National Statistics (U.K.), Labor Market Trends, April 2006, p. 119, http://www.statistics.gov.uk. c Crown Copyright. Reproduced under the terms of the Click-Use License.

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Labor Unions
Organizations of workers European labor Identified with political parties and socialist ideology United States labor Laborers already have many civil rights Collective bargaining The process in which a union represents the interests of a bargaining unit (which sometimes includes both union members and nonmembers) in negotiations with management

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Labor Unions

Japanese unions are enterprise-based rather than industry wide


As a result, unions tend to identify strongly with company interests However, Japanese workers are reported least satisfied with jobs in developed world

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Labor Union Membership Trends


Employers have made efforts to keep their businesses union-free More woman and teenagers have joined the work force, low loyalty to unions The unions have been successful in raising wages, which leads to offshoring In the knowledge economy, industrial jobs that have formed the core of union membership are declining
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Multinational Labor Activities


Internationalization of companies creates opportunities for them to escape the reach of unions In response, unions have begun to Collect and disseminate information about companies Consult with unions in other countries Coordinate with those unions policies and tactics Encourage international companies codes of conduct Multinational unionism is developing

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Multinational Labor Activities

International Labor Organization (ILO)

Purpose is to promote social justice and


internationally recognize human and labor rights worldwide

Trade Union Advisory Committee to the OECD


Consults on trade union issues in global markets

12-29

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