MODULE -7

Wage Employment in
Business

Notes

29

WAGE EMPLOYMENT

n your locality you must have seen people busy in different economic activities. Some
I of them may be working for others to earn wages or salary. The others may be doing
their own business and earn profit. What do you think about yourself? What will you like
to do after completing your study to earn your livelihood? However, before choosing a
career you must have a clear idea about the different avenues of employment. The previous
four lessons dealt with career opportunities in self-employment. In the ensuing four lessons,
including the present one, we shall discuss different aspects of wage employment.

OBJECTIVES
After studying this lesson, you will be able to:
• define wage employment;
• recognise the characteristics of wage employment;
• describe the importance of wage employment;
• state and explain the different types of wage employment;
• identify the avenues of wage employment in government and private sector; and
• enumerate the requirement of wage employment as a career in terms of knowledge,
skill and personality traits.

29.1 MEANING OF WAGE EMPLOYMENT

Do you know somebody who is working for others and earning his/her livelihood? Have
you ever observed his/her activities? Let us take an example. Suppose your friend Madhav
is working regularly as an Assistant. Regarding Madhav’s job you can say that,
– He is working for an individual, or in a business firm, in an office, in a factory, or in a
shop;
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– He is known as an employee and for whom he is working is said to be his employer;
– He is being paid by his employer the remuneration for his work; and
– He works as per the terms and conditions laid down by the employer.
Notes
From the above observations we can say that Madhav is pursuing his career in wage
employment. Thus, wage employment can be defined as ‘a mutual agreement between
two parties (known as employer and employee) in which the employee (generally an
individual) agrees to work for the employer (generally a business firm, government office
or sometimes an individual) under some specific terms and conditions and the employer
agrees to pay him some remuneration (may be in cash or kind) for his work’.
In wage employment, there are always two parties and the employee gets wage or salary
from the employer for his work. Wage is normally an assured amount (which is agreed
upon by both the parties) given to the employee on a daily or weekly basis for his work.
Similarly, salary is also a mutually agreed upon assured amount given to the employee by
the employer for his work on a monthly basis.

29.2 CHARACTERISTICS OF WAGE EMPLOYMENT

Following are the characteristics of wage employment
1. Two parties: In case of wage employment there are always two parties involved.
One is known as the employee and the other as the employer.
2. Contractual nature: Wage employment is always contractual in nature. It is basically
an agreement between two parties whereby one party works for the other under
specific terms and conditions and the later party has to pay the former any mutually
agreed upon wage or salary in return of his work. The whole employment relationship
can be terminated by either party by giving a notice to the other party just like a
contract.
3. Employer-Employee relationship: The relationship between the two parties in
wage employment is an employer-employee relationship. This is unlike a master-
servant, father-son or teacher-pupil relationship. Here both the parties are
interdependent and interrelated. One cannot exist without the other. Both operate
under some pre-determined and mutually agreed upon rules and regulations concerning
their work relationship.
4. Remuneration: Remuneration is the return or reward that the employee receives
from the employer for his work. This is one of the important characteristics of wage
employment as this remuneration is determined and accepted by both the parties.
This remuneration is known as wage or salary.
5. Terms and conditions of employment: In case of wage employment the nature of
work, working conditions, rules concerning work relationships etc. are decided in
advance. Both the party abide to these terms and conditions of employment.

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INTEXT QUESTIONS 29A
1. Define Wage Employment in your own words.
______________________________________________________________
Notes
______________________________________________________________
______________________________________________________________
2. Answer the following in one sentence.
(a) Who is an employee?
__________________________________________________________
(b) Who is an employer?
__________________________________________________________
(c) Give the meaning of salary?
__________________________________________________________
(d) What is meant by remuneration?
__________________________________________________________

29.3 DISTINCTION BETWEEN WAGE EMPLOYMENT AND SELF-EMPLOYMENT

You know that some people do not want to work under others. They want to be independent
in their career and prefer to start their own business or profession. Such persons are said
to be in self-employment. Let us now look at the various points of difference between
wage employment and self-employment.

Wage Employment Self-employment

Self Employment
1. The status of the individual is that of The status of the individual is that
an employee. of an owner and employer.
2. The individual works for another. The individual works for self.

3. Income is in the form of salary or Income is in the form of profit.

wage.
3.
4. Earning is limited. It is mostly pre- The scope of earning is unlimited.
determined and fixed having regular It depends upon the capability and
increments. contribution of the individual.
4.
5. The nature of work is mostly routine The work involved is flexible and
except where one has to take depends on what the individual
independent decisions on policy and wants to do.
strategic matters.
6.
5. Entire supervision and control lies The individual controls and
with the employer. supervises his own work.

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29.4 IMPORTANCE OF WAGE EMPLOYMENT
Wage employment provides a regular and steady income for the individual to earn his
livelihood and to sustain his family. In this section let us discuss its importance.
Notes
1. Wage employment not only assures a regular and steady income but also ensures
various other benefits like medical facilities, housing facility, travel concessions, loans
and advances, insurance, old age benefits like – pension, gratuity etc.
2. Wage employment is a must in almost every sphere to carry out several tasks. Even
self-employment generates wage employment, although not immediately but when it
expands. For example, suppose you start a shop at your locality and run it alone.
When the business grows, it may not be possible to manage everything alone. Then
you may think of employing another to assist you, thereby creating wage employment.
3. Wage employment can be made as a career and individuals can excel in their respective
fields. For example, to be a renowned scientist it is not required to own the entire
laboratory. Rather any one can start the career as an employee of a big laboratory.
4. Wage employment involves much less risk than self-employment. There is no need to
invest in land, building etc. for wage employment.
5. Everyone is not capable of being self-employed by starting a business or profession.
Wage employment is normally undertaken as a vocation by majority.

INTEXT QUESTIONS 29B

1. With the help of an example state how self-employment generates wage employment.
______________________________________________________________
______________________________________________________________
2. Identify whether the following statements relate to self-employment or wage
employment. Give your answer by mentioning the serial number of each statement in
the circles given under each heading.
(a) Gopal works as an assistant in a private office.
(b) Suresh runs a restaurant in the central market.
(c) Every month Suresh gets a fixed income.
(d) Sarita earns huge profit from her tailoring shop.
(e) The scope of earning of Mr. Anthony is unlimited.

Self-employment Wage Employment

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29.5 TYPES OF WAGE EMPLOYMENT
There are various types of wage employment available for an individual to choose from.
However, each type has its own criteria for recruiting people. For example, there are
some jobs for which the minimum qualification required by the individual is graduation. Notes
For other jobs, it may be High school or intermediate or post graduation or some
professional/ vocational qualification. Let us restrict ourselves to the types of wage
employment that are available after completing Secondary or Senior Secondary courses,
with or without having some extra technical, vocational or professional qualifications.
Considering the types of jobs available after passing the Secondary or Senior Secondary
courses, we can categorise wage employment as Technical Jobs and Ministerial Jobs.

29.5.1 TECHNICAL JOBS

Jobs that require some kind of a technical skill to perform the tasks are called Technical
Jobs. For example, a mechanic in a motor garage, a welder in a fabrication unit, a chemist
in a drug manufacturing unit, a plumber in a water supply unit, an electrician in a repair
shop, a DTP operator in a publishing unit, a driver in an office etc. are all said to be
technical staff of the respective organisations. In order to enter into a technical job, you
need to acquire a technical skill by doing a technical course in any institute that provide
technical training after getting the class 10th or 12th certificate. For instance, you can join
any computer institute to learn DTP and join in a publishing/printing unit. You can join ITI
training and then go for any job related to the skill you acquired. Sometimes after competing
secondary/ senior secondary course, you are hired by some employers who provide you
the necessary training for technical skill and then absorb you in a job. During the training
period also, you earn some amount of money, which is known as a stipend or a consolidated
salary. Some examples of such jobs are cadets of NDA, soldiers of Army, sailors of Navy
etc. A list of some of the technical jobs are given below:
Jobs Employers Extra qualifications/
Training

Computer Operator Office/ business Computer training, DTP

house/ shops/ work
government
organisations.
Computer Programmer Software companies/ Software packages and
consultants, etc. computer programming
Laboratory Assistants Educational Must have a science
institutions background
Library Assistant Educational Certificate course in
institutions, Public Library and Information
library, Sciences
Fitter, Mechanic, Factories, Large Requisite training in the

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Jobs Employers Extra qualifications/
Training
library, Sciences
Computer Operator
Fitter, Mechanic, Office/ business
Factories, Large Computertraining
Requisite training,inDTP
the
Notes Electrician, Welder, offices, commercial respective area.
cook, driver, generator complexes, cinema
operator, telephone halls, guest houses,
operator, Xerox machine etc.
operator, etc.

29.5.2 MINISTERIAL JOBS

These are basically clerical jobs available in Government offices. Ministerial jobs also
include cashiers, accountants, storekeepers, personal assistants, salesmen etc. The following
table gives a small indication of various ministerial jobs available after secondary or senior
secondary.

Job Category Qualifications required Age

Clerical Jobs in Government Secondary/Senior Secondary 18-25 years
Offices:
LD clerk, UD clerk, Account
assistants
Railways: Secondary/Senior Secondary 18-32 years
Booking Clerk, Accounting Through SSC & RRB
Clerk, Goods Clerks, Train
Assistant etc.
Banks: Secondary/Senior Secondary 18-26 years
Clerk cum Cashier, Clerk cum Through BSRB and RBI-SSB
Typist
Offices/ Stores/ Shops: Secondary/ Senior Secondary 18 plus
Storekeeper, salesman, office
assistants etc.

29.6 AVENUES OF WAGE EMPLOYMENT

Availability of wage employment depends primarily on the local or regional job vacancies.
Some of the major avenues of wage employment are listed below:
(1) Small factory/shops
(2) Business firms
(3) Service organisations
(4) Government and Semi-Government organisations
(5) Public Enterprises

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(6) Private institutions
(7) Defence and Allied Services
(8) Agricultural Sector
Notes
Let us discuss about these avenues in brief.
(1) Wage employment in small factory/shops: This category includes employment in
workshops, provision stores, super market, departmental store, stationary shop,
chemist’s shop, etc.
(2) Business firms: Manufacturing and trading organisations, newspaper offices,
advertising agencies, etc. also provide wage employment to a large number of people.
(3) Service organisations: Avenues of wage employment also exist in service
organizations like railways, banks, financial institutions, insurance companies, motor
transport companies, airways, telecommunications, and advertising agencies.
(4) Government and Semi-Government organisations: These organisations include
municipal offices, state and central government offices, government educational and
technical institutions, government hospitals and post and telegraph offices.
(5) Public Enterprises: Public enterprises are owned, managed and controlled by
central and state governments and include State Electricity Boards, Water Supply
undertakings, Mahanager Telephone Nigam Limited (MTNL), Shipping Corporation
of India, Port trusts, Steel Authority of India Limited (SAIL), Bharat Heavy Electricals
Limited (BHEL), Indian Oil Corporation (IOCL), National Thermal Power
Corporation (NTPC), Gas Authority of India Limited (GAIL), Bharat Electronics
Limited (BEL), Hindustan Machine Tools Limited (HMT), and other State
Government enterprises.
(6) Private Institutions: These include private schools, colleges and other educational
institutions, private hospitals, nursing homes, etc.
(7) Defence and Allied Services: Defence Services including Army, Navy and Air
Force provide employment of different types.
(8) Agriculture and Allied fields: This includes employment in agricultural farms,
plantations, dairy, poultry firms, horticulture etc.

29.7 REQUIREMENTS OF JOBS IN TERMS OF KNOWLEDGE, SKILL AND

PERSONALITY TRAITS
After the detailed discussions about job opportunities available for wage employment, let
us study the requirements of various jobs in terms of knowledge, skill, and personality
traits.

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JOB TASK KNOWLEDGE SKILL PERSONALITY
TRAITS
Clerical Jobs • Typing • Typing • Computational • Diligence
• Inward and outward Knowledge skill (ability to • Honesty
mail handling • Knowledge count, calculate • Sincerity
Notes • Sending and about essential and do • Alertness
receiving e-mail parts and arithmetical • Emotional
• Filing keyboard of operation) stability
• Indexing typewriter • Technical skill • Judgment
• Office • Knowledge of (ability to handle • Commonsense
correspondence office office machine)
• Public dealing machines • Communication
• Knowledge of skill (ability to
Computer convey and
operation interpret
• Knowledge of messages)
other routine • Administrative
office duties skill (ability to
• Knowledge of handle paper
postal services work and other
• Code of office tasks).
conduct of
clerical jobs
Stenographer • Taking dictation • Noting, • Operational skills • Intelligence
and related • Transcription drafting and (ability to take & • Diligence
jobs such as • Officer’s personal follow up of transcribe short- • Judgment
Personal correspondence letters hand dictation) • Promptness
Assistant/ • Attending telephone • Knowledge of • Technical skills • Persuasiveness
Personal calls Stenography (ability to operate
Secretary • Sending and • Knowledge of telephone, fax &
receiving e-mail, Typing computer)
fax message • Knowledge of • Communication
• Assisting boss in Computer skills (ability to
official work operation convey &
interpret
messages and
deal with official
correspondence)
• Interpersonal skill
(ability to interact
with general
public)
Accounts • Cash dealing • Arithmetical • Computational • Helpfulness
Clerk cum (Receipt & knowledge Skill (ability of • Diligence
cashier in Payment) • Knowledge of calculation) • Alertness
Banks • Preparing FDR, Banking Laws, • Technical Skill • Honesty
Bank Draft and Rules & (ability to use • Judgment
Telegraphic Procedures machines)
Transfers • Knowledge of • Communicational
• Handling of Negotiable Skill
cheques & Bank Instruments • Conceptual skill
Drafts Act, loans and (ability to handle
• Correspondence advances& foreign exchange
with the clients RBI transactions,
• Helping clients in instructions dealing with
Bank dealing • Knowledge of Negotiable
Maintenance of Accounting Instruments,
record. • Knowledge of sanctioning loans
foreign & advances)
exchange
transactions

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JOB TASK KNOWLEDGE SKILL PERSONALITY
TRAITS
Telephone • Operating on • Knowledge of • Technical skill • Tolerance
Operator Telephone PBX/PABX • Operational skill • Patience
Board, FAX • Communication • Cheerfulness
message lines skill (fluency in • Sociability Notes
• Knowledge of language) • Courtesy
organisational • Politeness
activities
• Knowledge of
regional
language
Computer • Operating on • Knowledge of • Technical skill • Intelligence
Operator Computers required • Operational skill • Diligence
software • Judgment
• Promptness
• Persuasiveness
Storekeeper • Store keeping • Knowledge of • Accounting skill • Honesty
activities in Storekeeping (ability to • Integrity
business firm and • Knowledge of maintain Stores • Alertness
industry Stores A/c) • Watchfulness
• Maintaining records • Accounts • Operational skill
of incoming & including (Skill of
outgoing stocks elementary cost preparing voucher
• Maintenance of accounting purchase orders,
stock & safety • Knowledge of delivery notes,
measures for rules & and inspection
preservation of procedure reports etc.)
stock Knowledge of
• Receiving and Inventory
issuing of stock Methods
• Knowledge of
identification,
classification
and
codification of
materials
Counter • To sell the product • Knowledge of • Communication • Persuasiveness
Sales Jobs as per customers’ product & its skill (ability to • Honesty
and requirement attributes persuade • Patience
Salesmanship • To explain and • Knowledge of customers) • Cheerfulness
demonstrate the use customers’ • Demonstration
of different products taste and skill (ability of
• Prepare cash memos preference conducting
• Receive cash or • Knowledge of demonstrations &
ensure that cash is competing displaying goods)
paid at cash counter. product • Promotional skill
• Ensure that delivery • Elementary (ensuring sales
of goods is made knowledge of promotion).
against payment marketing

INTEXT QUESTIONS 29C

1. Give two examples of Technical jobs.
(a) ___________________________________
(b) ___________________________________

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2. Identify the categories of avenues of wage employment in the following case.

(a) Mohit works as an army officer.

Notes (b) Banit works as a school teacher in a private school.

(c) Gobind employed in MTNL.

(d) Suresh works in an insurance company.

(e) Mita works in a nursing home.

29.8 WHAT YOU HAVE LEARNT

• Wage employment can be defined as ‘a mutual agreement between two parties (known
as employer and employee) in which the employee (generally an individual) agrees to
work for the employer (generally a business firm, government office or sometimes an
individual) under some specific terms and conditions and the employer agrees to pay
him some remuneration (may be in cash or kind) for his work’.
• The individual gets the status of employee in wage employment, where as it is of an
owner or employer in case of self-employment. In wage employment the individual
works for others and gets salary or wage. In self-employment the individual works
for self and earns profit. The earning is limited and predetermined in case of wage
employment. The scope of earning is unlimited and it depends upon the capability
and contribution of the individual in case of self-employment. The work is generally
routine in nature in wage employment. Where as in self-employment the work is
flexible and fully depends on what the individual wants to do.
• Wage employment provides a regular and steady income for the individual to earn his
livelihood and to sustain his family. Wage employment is a must in almost every
sphere to carry out several tasks. Even self-employment generates wage employment.
Wage employment can be made as a career and individuals can excel in their respective
fields. It involves less risk than self-employment.
• There are various types of wage employment available for an individual to choose
from. However, each type has its own criteria for recruiting people. Considering the
types of jobs available after passing the Secondary or Senior Secondary courses,
we can categorise wage employment as Technical Jobs and Ministerial Jobs.
• Jobs that require some kind of a technical skill to perform the tasks are called Technical
Jobs. The clerical jobs available in government offices, cashier, accountants,
storekeepers are called as ministerial job.

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• Some of the major avenues of wage employment are Small factory/shops, Business
firms, Service organisations, Government and Semi-Government organisations, Public
Enterprises, Private institutions, Defence and Allied Services, and Agricultural Sector.
• Different jobs like clerical jobs, jobs of stenographers, computer operators, salesmen, Notes
telephone operator, storekeeper are available in government offices, industry and
business. The important features of every job must be known along with the types of
organisation in which job vacancies exist. The general requirements of jobs in terms
of knowledge, skill and personality traits should also be known.

29.9 KEY TERMS

Ministerial Job
Remuneration
Salary
Self-employment
Technical Job
Wage Employment
Wages

29.10 TERMINAL QUESTIONS

Very Short Answer Type Questions

1. Define wage employment.

2. Name the two parties of wage employment contract.

3. What is meant by self-employment?

4. Name any four avenues of wage employment.

5. Enumerate any four qualities required for pursuing clerical job.

Short Answer Type Questions

6. Give any four distinctions between wage employment and self-employment.

7. Briefly explain the different categories of wage employment.

8. Define wage employment highlighting its characteristics.

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9. Enumerate any four knowledge required to pursue clerical jobs.

10. State any four knowledge required for storekeeping job.

Notes Long Answer Type Questions

11. What is wage employment? How does it differ from self-employment?

12. Describe the significance of wage employment.

13. Explain the various characteristics of wage employment.

14. Suresh is of the opinion that wage employment and self-employment are the same. Is
Suresh right? Explain.

15. What is meant by wage employment? Explain the different categories of wage
employment.

29.11 Answers to Intext Questions

29A 2. (a) An individual who works in an organisation and gets salary or wages as
remuneration.

(b) The person who engages others to work for him/her by followingcertain
terms and conditions.

(c) Salary is a mutually agreed upon assured amount given to the employee by
the employer for his work on a monthly basis

(d) The salary or wages received in return of the work or service provided is
known as remuneration.

29B 2.

Self-employment Wage Employment

b d a c
e

29C 1. (a) Computer Operator

(b) Electrician

2. (a) Defence and allied services

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(b) Private institutions

(c) Public enterprises

(d) Service organisations Notes

(e) Private institutions

DO AND LEARN

Make a list of atleast 10 persons of your locality those employed in different organisations.
Categorise them under Technical and Ministerial jobs. Prepare chart containing the
qualifications required for those jobs and task handled by them.

ROLE PLAY

Satish and Nitesh are good friends. Nitesh belongs to a poor family. Satish father works in
a factory. One day he visited a factory along with Satish who was carrying the lunch pack
for his father. Nitesh observed that there were number of young persons working that
factory. It struck him of his financial condition. He asked Satish’s father –

Nitesh : Uncle! How come your factory has so many young persons?

Uncle : Why do ask this question?

Nitesh : Well! To be frank, I wish to support my father after completing my senior

secondary course.

Uncle : That’s good. These days getting a job is not a problem provided you have
requisite qualification, knowledge and skill. So you have to acquire some
technical sill in certain area.

Nitesh : How nice! Could you please tell me the possible areas and qualification
required for some technical jobs after passing the senior secondary course.

Satish’s father explained to him about various technical jobs and the qualification, knowledge
and skills required.

Assume the role of Nitesh and ask your friend as Satish’s father and continue the
conversation.

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Chapter at a Glance
Notes

29.1 Meaning of Wage Employment

29.2 Characteristics of Wage Employment
29.3 Distinction between Wage Employment and Self Employment
29.4 Importance of Wage Employment
29.5 Types of Wage Employment
29.5.1 Technical Jobs
29.5.2 Ministerial Jobs
29.6 Avenues of Wage Employment
29.7 Requirements of Jobs in terms of Knowledge, Skill and
Personality Traits

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