economy as a social institution

7/29/2019 Economy as a Social Institution

1/21

Group 2

Nature of Economy

Structure of Economy

Historical Evolution of thePhilippine Economic System


2/21

Economyas a Social

Institution


3/21

Nature of Economy

Economy can be viewed as a social institution organizedproduction, consumption and distribution of goods and s

Production

Primary production consists of taking directly from earusing without much processing.

Secondary production involves making something frommaterials.

Tertiary production involves providing assistance andinformation and covers activities.


4/21

Distribution - Once the goods and servicbeen produced.

Rule of reciprocity common distributioprinciple

Degree of complexity require a centralgovernment with its rulers to collect taxedemand payments.


5/21

Free market system major method of distribu

- any items depends on how much others are williit, which in return, depends on how many other buyesellers are there in the marketplace.

Consumptionit means to eat up. It is importamembers use and consume goods and services.

Economics is the systematic study of social adjuand management of, the scarcity of goods and se


6/21

The idea of supply and demand demandfor a product lies on consumers will

buy a large quantity at a low price and very h

Supplyis determined by the producers willinproduce and market a larger quantity.

Goods products which are needed.

Services activities which are performed


7/21

Sociology and Economics

Neil J. Smelser (1991) who describedrelationship between sociology andeconomics.

He noted that when sociologists look at eco

activity, they ask questions which are broadand less technical. They usually focus on lesrational aspect of economic behavior.


8/21

THE ECONOMY IN PERSPECTI

Types of Economic Systems

1. Pre-industrial societies

2. Industrial Societies

3. Post-industrial Societies


9/21

Pre-industrial societies

Hunting-gathering societies relies for food pr

hunting of animals and gathering of food that gronatural environment.

Pastoral Societies developed in areas where thmuch rainfall

Horticultural Societies People start to raise plmainly in human labor. The people become less n

Agrarian Societies one whose economy is baseon farming that employs the plow to increase thethe soil. Animals are used for greater productivity


10/21

Industrial Societies

Industrializationrefers to the process in which an ebased primarily on energy supplied by animals and hbeings changes to one energy such as steam engine.

Five Revolutionary Changes to the Econom

Western Societies New forms of energy The spread of factories Manufacturing and mass production Specialization Wage Labor


11/21

Post-industrial Societies

- It is a society where there is high proportion of workers empltertiary sector. Types of Productive system

1. Primary SectorThis includes farming or agriculture. This activity emphof what nature provides and adapting it to human use

2. Secondary Sector

This is concerned with producing finished goods out of r3.Tertiary Sector

It focuses on the provision of services.

Money is any medium of exchange which buyers and sellesome relative fixed value.


12/21

THEORIES OF THE ECONOMY

1. Classical Economic Theory Wealth of Nations Adam Smithbelieved that the nations wealth was tied directl

amount of money and precious goods2. Keynesian Economics

John Maynard KeynesKeynes General Theory of employment, Interest and Money a

government stimulation of the economy to avoid inflation andunemployment/ However, he recognized that there would have trade-off between the two. He distinguished between monetary fiscal policy

3. Marxs theory of capitalism His main criticism was that it divided societies into the wealthy

own the means of production and many poor who do not.


13/21

Three Major features of Capitalism

Private Ownership of Property The capitalist economy supports the right o

individuals to own almost anything Pursuit of personal Profit

A capitalist society encourages individuals

greater amount of private property, even at expenses of others. Free Competition and Consumer Sovereignty

This resulted from Adam Smiths defense o The principle of the economy should opera

interference from the government.


14/21

Hess, et al. (1992) identified certain features of capiteconomy that focuses on trends toward concentratio

Theory of Imperialism is based on an analysis of multinational corporations. This theory argues that wcompetitive capitalism gives way to monopoly and ol

then large capitalist corporations expand beyond thetheir own society looking for highly profitable econoopportunities.


15/21

CommunismIs a social, political and economic system in w

property is publicly owned.

SocialismThe socialist economic system maybe conside

polar opposite of the capitalist system.

Production are collectively owned and the distthe goods and services is guided by public needs.


16/21

Nature of Work

Work has been defined as an effort aimed at producing a product ois usually rewarded with pay and to which individuals attach a morTypes of Work

1. Blue-collar work This refers to occupation that requires either specific skill

effort to produce goods and services. This type of work inmanual exertion.

1. white-collar work Workers are non manual employee. The term is mainly ap

who occupy relatively routine posts in the lower sectors oemployment.

1. Professional and managerial work This includes the people who have something to do with p

and decision making. They are those who coordinate the min the organization.


17/21

Profession

This is a prestigious calling, traditionally described before as job. The purpose of this classification, it is categorized in the twork. It requires extensive formal education. The term profeindicates a public declaration to abide by certain privileges.

Four Characteristics to make occupations qualifprofession

1. Theoretical knowledge2. Self-regulating practice3. Authority over clients4. Community orientation rather than self-interest


18/21

Some Innovations in the Workplace

1. Flexi time This refers to variations on the standard office or wo

is especially helpful for people who are having seconusually on part-time basis.

2. With job sharing

Two part-time workers may perform a job ordinarilyfull-time employee and share fringe benefits3. Quality circle

This involves teams of employees and managers whomeet for an hour a week to discuss how to improve t

performance


19/21

4. Team production system This involves groups of workers and a group leader w

control the entire production process, and who are refor the quality of the products.

Workplace democracy This exists where employees bowners

5. Employee stack ownership plans Some companies agree to employee stack ownership

whereby the owners contribute shares in the companthe workers benefit package


20/21

The Changing Nature of work

1. Creative autonomy2. Competitive work teams3. A flatter organization4. Greater flexibility


21/21

New Information Technology and Work

The Information Revolution or Computer age has brought aboremarkable changes, Macionis (2003) noted that one major faaffecting the present day workplace is the increasing role of cand other new information technology

Computer are deskilling

Computers are making work abstract Computers are limiting interaction in workplaces

Computer enhance employers control of workers

economy as a social institution

Documents