SOCY 101 1st Edition Exam 2 Study Guide Chapter 7 February 17 23 1 How do social factors impact markets a There are three key social factors in markets networks power and culture b Social networks the ties or connections between people groups and organizations i These social connections are necessary to maintain levels of trust to carry out economic exchange ii They also play a vital role in how we get jobs recommendations c Power the strongest organization has the power to define what a market will look like the regulations that define its structure and concentrations of economic power d Culture not only varies in society but in organizations as well i It is important to make sense of formal and informal rules in a market 2 Why are organizations important for social and economic life a Organizations give society its structure and what makes it endure over time and are not dependent on individuals b Organizations develop bureaucracies where rules are written down and defined roles of members of the organization are made clear c The garbage can model of decision making describes the way that an organization sometimes has to make decisions even when they don t have all the information d Loose coupling is the attempt to decentralize decision making to allow for multiple approaches to emerge 3 What is the relationship between organizations and their environment a Population ecology some organizations survive and some don t because of how they adapt to resource availability b Organizations are very durable and resistant to change which makes them very unstable if their environment changes c Organizational isomorphism the capacity for organizations over time to look like other organizations in their field d Mimetic pressure when organizations are unsure of how to adapt to their environment so they mimic other successful organizations 4 How are jobs structured a All societies have a division of labor in which some people do some things and other people do other things b There has been a dramatic decline in manufacturing jobs in America in the last several decades c The labor process refers to the way most jobs are organized and controlled by managers from above as well as the relationship between workers and management d The ideas of scientific management led to the rise of the assembly line and the deskilling of workers 5 What makes a good job a People look at income status and prestige autonomy stability and security when looking for a good job b Having the trust of an employer is associated with greater responsibilities and higher pay c On average American workers work longer hours and take fewer paid vacations d Unions provide power to workers to negotiate more effectively with their employers as well as monitor and protect working conditions e The lack of unions in the U S allows companies to develop policies to better compete in the global market i Lean production continual reduction of the cost of production f Outsourcing occurs when firms turn over the execution of tasks such as payroll administration janitorial services and food services to third parties Vocabulary Market a place where buyers sellers and producers engage in exchange of commodities and services Entrepreneurs people who invest in and start business Rational choice perspective Both the buyer and seller are assumed to have knowledge about the good or service they are buying or selling and to be making decisions that they think will improve their individual well being Organization a group engaged in a specific activity that has an identifiable purpose or goal and that has an enduring from of association Structural inertia the strong resistance to change that an organization has Niche a distinct segment of a market or social process for which an organization s services or products are in demand Coercive isomorphism when all organizations make the same change because they are compelled to do so in order to avoid consequences Normative isomorphism when an organization responds to pressures exerted on its legitimacy Scientific management the idea that managers need to figure out how to understand and control what the workers under them are doing Autonomy how much a job allows a worker to control his or her activities Union An organization that represents workers as a group in their negotiations with employers Chapter 9 February 23 March 1 1 What is inequality a Income the receipt of money or goods over a particular accounting period is the basic foundation for inequality b Wealth the net value of the assets owned by individuals or family Wealth differences are often larger than income differences c Consumption people often consume more than they can afford especially among poor and middle class families d Well being health exposure to crime and violence exposure to environmental risks like air or water pollution and level of happiness e Some justifications of inequality include that it ensures that those with talent are given proper encouragement to pursue excellence and that it leads to greater economic efficiency by encouraging people to take risks and invest in businesses 2 Why is America so unequal a Technology has replaced many jobs once done by humans but that are now obsolete b Globalization involves the growing permeability of national borders and the increase in flows of goods services and even people across nations i This results in cheaper imported goods from countries ii Also leads to outsourcing c Minimum wage has failed to keep up with inflation and so therefore has dropped after adjusting for inflation d Unions have declined which means that wages are not being raised e The tax rates paid by higher earning Americans has fallen dramatically over time 3 Do we all have an equal opportunity of succeed in life a Three factors that are highly correlated with levels of inequality are families labor markets and government policies b Mobility is a property of society 4 How much poverty exists in the United States and around the world a Being poor means being unable to meet basic needs However it is unclear exactly what a basic need is b In the US we use an absolute measure of poverty the minimum amount of income necessary to meet basic needs c The working poor are the people who cannot make enough income to be free from poverty even if they work full time Vocabulary Inequality the unequal distribution of valued goods and opportunities Class groups of people in similar social and economic positions who have