The set of wage paid for particular jobs in a firm is heavily contingent on its job structure. The job structure is defined as the set of jobs in terms of skill and function required by the firm. The job structure in a particular firm is heavily influenced by the technology of production. If the company is an airline for example technology dictates that firm’s job structure must include pilots, flight attendants and so on. The types of jobs in a firm are not completely determined by technology however by long-run decisions of the firm such as what proportions and kinds of labor, capital and other factor inputs to use. Once these are decided and a specific plant is built then the technology of production, generally determined within fairly narrow bounds will allow for the job structure of the firm to recruit labor.
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