DIVISION OF SECTORS AS ORGANISED AND UNORGANISED

2.4 DIVISION OF SECTORS AS ORGANISED AND UNORGANISED

Description

Quick Overview

This section discusses the division of economic sectors into organised and unorganised categories, focusing on their characteristics and the differences between them.

Standard

The section explores the organised and unorganised sectors within the economy, detailing their structures, employment conditions, and implications for workers. It highlights how organised sectors offer job security and benefits, while unorganised sectors lack formal regulations, leading to vulnerability and exploitation.

Detailed

Division of Sectors as Organised and Unorganised

This section delves into the classification of economic activities into organised and unorganised sectors. The organised sector provides formal employment with benefits such as regular salaries, job security, and adherence to labor laws, while the unorganised sector is characterized by informal employment with minimal regulations, leading to precarious conditions for workers.

Organised Sector

The organised sector consists of establishments that are registered and comply with labor regulations. Workers in this sector enjoy benefits like:
- Regular salaries
a reasonable amount of job security.
- Paid leave and holidays.
- Provident funds, medical benefits, and gratuity.

Examples include large companies, public sector enterprises, and institutional jobs. The bureaucracy ensures workers’ rights are protected through regulations like the Factories Act and Minimum Wages Act.

Unorganised Sector

Conversely, the unorganised sector includes small units predominantly outside government regulation. Workers here face:
- Lack of job security
- Day-to-day wages with no benefits or job guarantees.
- No legal protection or entitlement to a minimum wage.

Examples include daily wage laborers, small farmers, and informal street vendors. The absence of formal structures often leads to exploitation.

Key Takeaway

Understanding the differences between these sectors is crucial as it highlights the necessity for labor protections for those working in the unorganised sector, reflecting on the broader implications for economic stability and social justice.

Key Concepts

  • Organised Sector: A formal sector with regulations that provide job security and benefits.

  • Unorganised Sector: An informal sector with minimal regulations, leading to job insecurity.

  • Job Security: The guarantee of employment without arbitrary dismissal.

  • Labour Laws: Regulations that protect workers' rights.

  • Exploitation: Unfair treatment of workers to benefit employers.

Memory Aids

🎵 Rhymes Time

  • Organised brings benefits, it's true, unorganised leaves workers blue.

📖 Fascinating Stories

  • Once there were two friends, one worked in a factory with benefits, while the other sold goods at the market with no guarantee of income. The difference in their lives shows the importance of job security.

🧠 Other Memory Gems

  • O.S. for Organised Security, U.S. for Unorganised Struggles.

🎯 Super Acronyms

O.U.S. - Organised for Unemployment Security.

Examples

  • Workers in the organised sector, like teachers and factory employees, enjoy benefits such as paid leave and pensions.

  • Daily wage laborers and street vendors represent the unorganised sector, facing job insecurity and lack of benefits.

Glossary of Terms

  • Term: Organised Sector

    Definition:

    A sector comprising registered enterprises that adhere to labor laws, ensuring job security and employee benefits.

  • Term: Unorganised Sector

    Definition:

    A sector involving informal employment with minimal government regulations, leading to low wages and job insecurity.

  • Term: Job Security

    Definition:

    The assurance that an employee will retain their job without the risk of arbitrary dismissal.

  • Term: Labour Laws

    Definition:

    Regulations established to protect workers' rights and conditions of employment.

  • Term: Exploitation

    Definition:

    The act of treating someone unfairly or unjustly to benefit from their work.