03 Jun QuestionQuestion Not long ago an employee came into my office
QuestionQuestion
Not long ago an employee came into my office
Not long ago an employee came into my office asking for a wage increase. I responded by asking what increase in productivity the employee brought to the University in order to merit such an increase. The silence was deafening. The things that determine prices for labor are the precise same things that determine prices for labor – supply and demand. The greater the demands for a particular skill, generally speaking the more wages are supplied. Once supply and demand issues have been determined, the next logical differentiation in wages is productivity.
Read chapter 9 of the text Basic Economics and watch the short video at http://www.youtube.com/watch?v=WvKEK0ZBlXs and prepare to discuss the relationship between supply and demand and productivity in establishing wages.
Provide a few real world examples of how supply and demand and productivity work in the marketplace. Discuss the options for employees to increase the demand for his or her particular skills, as well as ways to enhance our personal productivity
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