The Orthodox Theory

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Orthodox theory suggests that the employment relationship is a ‘transaction like any other’, the exchange of labor services for financial reward. Discuss.

The Orthodox theory suggested that the employee employer relationship was as basic as getting the job done and paying the money equivalent to the work that is generated or produced by an employee. This model of employment could work during and before the times of industrial revolution when the capitalist could employ people to get basic work of production done and pay in accordance to the time or work (no. of units of output) produced by the workers. However, as the economy grew thereon and innovation and servicing came into play, the Orthodox theory has been rendered impractical. The very tenet that the theory is based upon, which is getting the labor services in return of money, is flawed. It is because employers and employees would always have contradictory goals; human interpretation (employee versus employer) remains subjective and therefore the goal of getting the service in lieu of money is not always achieved.
Although the beginning point of the employment relationship still remains the remuneration that is deemed fit for the kind of work that an employee produces, it is just the beginning point after all and is certainly not the only thing that an employee would look at before joining the organization. This also makes it clear that the if an organization needs to succeed, the employer - employee relationship will need to succeed and that can only happen when the employer and employee have common goals and are juxtaposed nicely with the organizational vision and objectives at large. This line of thought has brought about a change in the way organizations are structure...

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