The economy of work in the enterprise

Labor is a conscious and expedient activity that is used in production, as well as in the sale of goods and services. Any work that is performed by professionals, is a work. This is the basic condition under which society exists and develops.

The labor economy is realized in the workforce - the mental and physical ability of people. In the conditions of the market, labor is the capital that is sold to the owner. Therefore, labor in this case acts as a commodity.

The labor market is the most important of the entire resource market. Like any other, it forms demand and supply. People create a proposal that expresses the desire of economically active people to sell their labor for some price and for a certain period of time.

The demand for labor is the amount of labor that can be sold at any price.

The labor economy is an industry that considers the interaction of workers, means of labor, as well as the processes of reproduction, labor productivity.

The output is the quantity of goods that is produced by the employee per unit of time. The more productive the process, the more the product is produced, the less labor is required.

The labor economy consists in the fact that the hiring of an employee is compared with the organization with additional incomes, which can be obtained by the appearance of a new labor force. As long as this income is more than labor costs, it is profitable to hire new employees. But it should be remembered that the demand for labor must have its limit, so that the enterprise does not incur losses.

The labor economy includes the wages of workers, investments in human capital , etc. Employees are paid for their work. Its value depends on the tariff rate per unit of time. But there are several types of wages, where this rate takes various forms.

Expenditures that are associated with the upgrading of skills of workers and increase in labor productivity, represent an investment in human capital. They come in three forms - employee education, health care costs (disease prevention, care in medical institutions) and mobility costs.

As for the health of employees, labor safety is very important. It is a means of preserving the health and life of workers in the enterprise while they are in the process of working. Employees must be instructed in labor protection. Each of them should know what to do in this or that emergency, which can occur in production.

In modern market conditions, enterprises are characterized by innovative management of labor resources. The labor economy in this case is connected with the transition of production to technological execution, which requires highly skilled workers. They must be able to make a decision, as well as ensure high production and quality of work.