IMT-Ghaziabad

Macro Economics Policy & Practices

Members
Name Roll no.
Nilanjan Dutta 240201225
Kashma Gupta 240103091
Mandeep Singh Panwar 240101052
Mohammad Khalid 240201091
Sarthak Beniwal 240102052
Tanishq Kohli 240103184
Tanya Aggarwal 240101113
Part 1

Introduction: The given assignment is a detailed description of the life of a 25-year-old security guard from
Modi Nagar, Ghaziabad, who works at CDL. His experience as a guard speaks volumes about his working
conditions, job security, and the tug-of-war between professional obligations and personal responsibilities
associated with his job.

Background: The security guard is paid a monthly salary of ₹13,800 after insurance and provident fund
deductions. Salaries are paid monthly, and there is an opportunity to earn extra wages by working overtime. For
every 8 hours of overtime worked, he is paid ₹432. While there is a division of work at IMT based on gender,
the guard reported no difference in wages between the male and female staff, though there is no female staff in
the boy's hostel complex (IMT-CDL).

Work Environment: A typical day in the life of a guard involves 8 hours of work along with four overtime
duties per month. While gender influences the allocation of tasks—female staff generally handle responsibilities
in the girls' hostel and are not assigned night duties—the responsibilities remain consistent across the board.
While the workload is variable, basic facilities such as fans and coolers are available within the institute in order
to provide a reasonably comfortable working environment.

He says that he has little conflict with the students, administration, and other staff, even those who have been
mixed up in the mess. He also says that the workplace at IMT-CDL is equally friendly to male and female staff,
which positively impacts general harmony in the workplace.

Personal and Family Matters: The immediate difficulties shared by the guard include treading a tightrope
between the demands of his job and those related to his family. Guards who are not localities feel homesick,
especially when their family member is ill. However, because of the nature of his work, he cannot leave his post
without a replacement, not even in unavoidable family emergencies, a rule that holds for both male and female
staff. Notwithstanding, he tries to create time with his family, though he has to admit that successfully playing
the two roles is hard.

Job Security Issues: Job security is just about the biggest concern for the guard. Indeed, he shows that there is
no security in his position because he's constantly worried about being fired from the job. Supervisors and
wardens can terminate services at any time without prior notice, and guards are sacked on the spot. All this
places the guards in a position where they are at the mercy of their superiors, further enhancing their role's
pressure and ambiguity.

The interview with the security guard underlines the precariousness of his job at IMT-CDL despite health
insurance and provident fund. The first two issues that immediately arise are insecurity over one's job and
difficulty in balancing one's work and family responsibilities. While the environment may be facilitating, threats
of losing one's job anytime diminish the plus points of this job, making it exacting and insecure.

Reflection: This paper assignment reflects on the broader implications of job insecurity in the security industry,
much so for those in similar job roles in different institutions. It epitomises the need for better job protection and
support in the workplace so security employees can do their jobs without fears of losing them while also
providing adequately for their families.
Part 2

Question 1: To what extent does the current measurement of GDP and GNI capture the challenges and
difficulties you face in your work? Why, or why not?

GDP and GNI are generally more related to economic output and income levels, which usually fail to capture
the qualitative elements of work, such as job security, working conditions, and work-life balance that this
security guard's responses emphasised. While these may indeed be good reflections of the monetary value of
such services, these measures consider neither the precarious nature of the job nor the constant fear of losing
employment; neither do they account for the physical and emotional tolls brought about by such labour. We can
argue that in these economic measures, the human element is more crucial in understanding the broader roles of
employment in peoples' lives-is absent.

Question 2: If we adjust GDP or GNI better to capture the quality of work and working conditions, what
elements should be included based on your interaction with workers?

To properly capture the quality of work in GDP or GNI, the following factors could help:

1. Job Security Index: Job security is crucial when considering a nation's economic stability and welfare. This
could be based on, for instance, short-term contracts, the risk of sudden termination, and the average notice
period. For example, the fear of job loss for the security guard would lower this score, which reflects the need
for adjustments to GDP.

2. Indicators of Work-Life Balance: Work-life balance is important for productivity and quality of life.
Examples of indicators that can be measured include average hours worked, paid time off, and flexibility in
work arrangements that the guard struggles to manage his family duties and suggest possible adjustments in
economic indicators.

3. Occupational Health and Safety Scores: Safe working conditions are paramount. This could have been a
score on safety standards, access to health care, and availability of facilities. In the case of this guard, since there
is no paid leave, this would be a low score despite having amenities, which would raise the alarm for
consideration in adjusting the GNI.

4. Gender Parity Index: This is something where gender equality in roles and pay is desperately sought. This
index can capture the distribution of roles and wage fairness. Even though wages may be the same, the guard's
experience due to gender-based task allocation would still be captured, showing where GDP might need an
adjustment.

5. Employee satisfaction/stress levels- a healthy work environment is ensured by a job that provides
satisfaction while remaining low in stress. Surveys testing security, fulfilment, and stress, especially balancing
work with family, would reflect the guard's challenges, suggesting a need for adjustment of the economic
measures.

6. Overtime and remuneration ratio: High use of overtime may indicate wage problems. This ratio could,
therefore, compare overtime returns with base salary. The very fact that a guard has had to rely on overtime
shows wage inadequacies, and GDP should be adjusted to capture these discrepancies.

Incorporating the variables will have a better effect on economic welfare since this captures not only output but
also the quality of the working conditions.