Definition Definition

Labour Extraction

Definition (1):

Labour Extraction means most employees under capitalism are paid according to the time they spend at work. But employers then experience a challenge for extracting genuine labour effort from their workers while they are on the job. Strategies employed by employers to extract labour utilize a combination of supervision, labour discipline, technology (to monitor and control work), and the threat of dismissal.

Definition (2):

Labour Extraction is a term used in economics. It indicates that under capitalism, most workers or employees are paid based on their time spent at work.

In most organizations, this labour extraction is applied. But as mentioned earlier, employers find it difficult to extract genuine work effort from their employees. Because spending a long time at work does not indicate that the employee is doing a lot of work. Some employees can give better output by not spending a long time at work, it indicates that those employees are efficient. So, the actual measure of performance should be the output of the employees rather than the hour spend at work.

The problems regarding labour extraction can be solved through fulfilling the promise of job security, promotion within the company, and salary increase as the reward for diligent and hard work.

Category: Economics
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