Definition

Organised vs Unorganised

Organised

In this sector, the work is regular and therefore have assured work. They are registered by government and have to follow rules like Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishments Act, etc. It has some formal procedures. Workers experience security in Jobs

  • Fixed working hours, paid for overtime.
  • Paid leaves, medical benefits, proper working environment, etc.

Unorganised

These are small and scattered units which are outside the control of the government. Employment is not secure. But this sector includes a large number of people who are employed in their own small jobs.

  • Jobs are low-paid and not regular
  • No paid leave, holidays, sick leave.
  • No job security.

How to protect workers in unorganised sector?

In rural areas, this sector mostly includes agricultural labourers, marginal farmers and artisans. Nearly 80% of India’s rural household are farmers. These farmers can be supported through facilities like timely delivery of seeds, agricultural inputs, credit, storage facilities and marketing outlets.

In urban areas, this sector most include workers of small scale industry, casual workers, transports, etc. The small scale industry also needs the support of the government for production of material and for marketing.

Private vs Public

In the Public sector, most of the assets are owned by the government whereas in the Private sector, the assets are in the hands of an individual or a company. The activities in the private sector are to earn profit, unlike Government who can raise money through other ways to cover the expenses (eg. taxes).

Why not private sector?

Because they do not provide service at a reasonable cost. The government have to undertake the heavy spending to provide services

Responsibilities of a Government

There are some activities which a government must do. For example:

  • Selling electricity at affordable cost. The government has to bear a part of the cost to compensate
  • Buying crops from farmers in Minimum Support Prices.
  • Providing healthcare and education.
  • Availability of basic services

Backlinks

Eco Ch2


Flashcards

What is the organised sector? ? In this sector, the work is regular and therefore have assured work. They are registered by government and have to follow rules like Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishments Act, etc. It has some formal procedures. Workers experience security in Jobs

  • Fixed working hours, paid for overtime.
  • Paid leaves, medical benefits, proper working environment, etc.

What is the unorganised sector? ? These are small and scattered units which are outside the control of the government. Employment is not secure. But this sector includes a large number of people who are employed in their own small jobs.

  • Jobs are low-paid and not regular
  • No paid leave, holidays, sick leave.
  • No job security.

Differentiate between unorganised and organised sectors

How to protect workers in unorganised sector? ? In rural areas, this sector mostly includes agricultural labourers, marginal farmers and artisans. Nearly 80% of India’s rural household are farmers. These farmers can be supported through facilities like timely delivery of seeds, agricultural inputs, credit, storage facilities and marketing outlets. It is the responsibility of the government to provide of the workers in both rural and urban areas.

The activities in the private sector are to {{earn profit}}

What are the activities that a government must do? ? There are some activities which a government must do. For example:

  • Selling electricity at affordable cost. The government has to bear a part of the cost to compensate
  • Buying crops from farmers in Minimum Support Prices.
  • Providing healthcare and education.
  • Availability of basic services

Why not private sector? ? Because they do not provide service at a reasonable cost. The government have to undertake the heavy spending to provide services.

In the Public sector, most of the assets are owned by {{the government}}.

In the Private sector, the assets are in the {{hands of an individual or a company}}.