Chapter 19, Economic Institutions Sociology and Economics Markets and the Division of Labor Economics and the State Workers, Managers, and Corporations

Economics and Sociology The subjects of sociological research are: Markets and the division of labor. Interactions between government and economic institutions. The nature of jobs and professions.

Markets Economic institution that regulates exchange behavior. Different values are established for particular goods and services. Market transactions are governed by agreements - a seller agrees to supply a particular item and a buyer agrees to pay for it.

The Development of Markets Began in the late 15th century as a result of the development of new technologies that facilitated trade. Today world markets are dominated by multinational. Economic globalization is a worldwide shrinking economic distances between nations.

Economic Ideologies: Mercantilism The wealth of a nation could be measured by its holdings of gold. The best economic system was one that increased the nation’s holdings of gold.

Economic Ideologies Laissez-faire capitalism - wealth is measured only by capacity to produce goods and services. Socialism - private property and personal profit should be replaced by public ownership of property and sharing of profits. Democratic socialism - large corporations should be owned by the nation for the benefit of all citizens.

Changing Economy in the U.S. Transition from economy based on production of goods to one based on provision of services resulted in the displacement of thousands of skilled workers. These trends indicate a change in the social contract in which individuals who work hard can expect increases in their living standards.

Corporations In the U.S. the corporation has gained ever-greater dominance over other economic institutions. During the last hundred years, the importance of corporations has come to outweigh that of individuals in most institutional sectors. The individual is often at a disadvantage in dealings with corporations.

Approaches to Management Scientific management approach attempts to increase productivity by determining how each job could be performed most efficiently. Human relations approach seeks to improve cooperation between workers and managers.

Conflict Theory of Management Study how social class and status at work and outside the workplace influences relations between workers and managers. Asserts that the human relations approach fails to consider the basic causes of worker–management conflict.

Interactionist Theory of Management Devoted considerable study to professionalization: Which occupations gain the status of professions. The processes of learning the formal and informal norms of a profession.