The cost of working time due to the quality of the goods

UDC 658.562
Publication date: 29.12.2020
International Journal of Professional Science №12-2020

The cost of working time due to the quality of the goods

Smetanina T.V.
Candidate of Economic Sciences, Associate Professor
of St. Petersburg State University of Industrial Technologies,
St. Petersburg, RF
Abstract: The basis for the formation of a quality product, service is the cost of working time. The cost of working time is used to form the value of goods and services. The worker creates surplus value, which forms the basis of the goods produced. However, there is a chain of values that is more extensively responsible for the final quality of goods and services. The value chain connects the main, auxiliary and service industries. The consumer evaluates the quality of the product with reinforcement, so it is impossible to directly link the cost of the working time of the worker producing the product. The form of remuneration that determines high-quality production should be not just piece-by-piece or time-based, but piece-by-piece or piece-bonus. Taken together, these conclusions lead us to the possibility of comparing the cost of working time and the quality of the goods produced.
Keywords: Commodity, time wages, piece wages, service, value added, value chain, quality standards, reinforcement, living labor, materialized labor.


Based on the theory of  Karl M., workers’ wages are represented as the price of labor. The cost of labor and its monetary expression are called the necessary or natural price of labor. The market price of labor is fluctuating up and down. The value of labor is the objective form of labor expended in its production. To be sold, labor must exist in the market before being sold. That is, Karl M. has already defined the labor market, which estimates the cost of labor and, accordingly, the cost of labor time spent on the production of goods.

If we are dealing with market conditions for the existence of labor, then the value of labor time will be associated with its value, which will suit the buyer of labor in the market.

There is a concept of materialized and living labor [1, p.538]. The cost of labor time in the production of a service can be more assessed as a certain amount of living labor that was necessary for the production of this service. If we are dealing with the value of labor time in the production of a commodity, then in this case we are already talking about materialized labor. At the same time, the cost of a product or service is ultimately determined by the amount of labor that is expended on their production. Behind the work is the worker, with his skills, knowledge and experience. Accordingly, the buyer of goods, services in the market is opposed directly by the owner of this labor. The worker himself. Continuing to develop this idea, one can come to the following conclusions. The worker produces goods and services that meet the needs of the buyer. They must have the properties and the quality that will satisfy the buyer. The value of materialized labor is associated in goods and services. If a product or service is purchased on the market, then its constituent properties satisfy the buyer. As a result, the knowledge, skills and experience of the worker are associated with the quality of goods and services that are offered on the market.

The labor that is spent by the worker on the production of goods and services in a market economy is fully paid. Moreover, even surplus labor, which is included in the cost of goods and services, is a part of paid labor. The main challenge is to convert paid labor into wages.

At the same time, labor can be estimated by different forms of wages. This is also the time wage, which is determined by the value of the time spent on the production of goods and services. There is also a piece wage, which is interconnected with the amount of goods and services produced. In both cases, we are dealing with an assessment of the knowledge, skills and experience of a worker who is a producer of goods and services produced by the worker.

Through the forms of wages, through the quality and quantity of knowledge, skills and experience, we predetermine the assessment of the quality of the goods. No one needs a low-quality product on the market. Rather, the cost of labor associated with a low-quality product will always be lower than the cost of labor that is invested in a product that meets quality requirements.

In terms of producing a quality product or service, everyone wins. An entrepreneur, a business owner, has a strong company image. The worker is a steady demand for his labor. Buyer — sustained satisfaction of his requests. Consumer [2] — the correspondence between the expected and actual consumer value of the goods or services consumed by him.

The quality of goods and services is a criterion for assessing the added value invested in the production of goods and services. The higher the quality, the correspondingly higher the added value. An increase in the valuation added value is reflected in the value of the business as a whole. In addition, an increase in the assessment of added value is reflected in an increase in the life cycle of a business [3]. The quality of goods and services lengthens the life cycle of a trademark and a trademark. Quality also predetermines the cost of an organization’s business reputation [4]. The longer the life cycle, the more time there is to build an organization’s business reputation. As for the goods or services themselves, which are produced with the appropriate quality, their life cycles are also lengthened. A product or service attracts consumers and buyers for a longer time, creating a permanent income for the organization that is their manufacturer.

The positive impact of the quality of goods and services on the cost of working time enables the worker to receive a fair remuneration for the results of his work. In cases where attention to quality declines, there is a reverse reaction of economic systems to what is happening. As a result, the life cycles of the organization, the goods and services themselves, are shortened, and the worker does not have the opportunity to fairly evaluate his work.

If for an organization that produces low-quality goods and services, this situation may acquire a reduction in its life cycle. For the worker, this situation may be associated with the loss of earnings and fair remuneration for his labor, and also forces him to revise his skills, knowledge and experience, offering them to the labor market in new conditions. Moreover, the worker may not be guilty of producing low-quality goods and services. The manufacturing process can be quite complex. A large number of workers can take part in it. To achieve the planned quality level, it is necessary to adjust the entire quality management system [5]. As a result, we must achieve a synergistic effect from the introduction of a QMS system that meets the requirements of public consumption. A worker can produce a quality product or service, but bringing it to the consumer can be of poor quality. The logistics, the guarantee that accompany the goods and services on the way to the final consumer may suffer. As a result, we receive a negative synergistic effect [6-9] from the working time spent on the production of quality goods and services.

Therefore, the cost of working time may not always be due to the quality of the product. A product can be of poor quality if labor time is spent on its high-quality production. In fact, the worker is not always the source of a quality production result. Much depends on the reinforcement of the commodity [10].

As a result, we have a place with a value chain [11-13], which combines the main and auxiliary production, as well as service production, bringing the product to the market in the form in which it corresponds to the idea of ​​its quality.

It can be concluded that there is no correspondence between the quality of goods and services and the cost of working time, that is, the wages that are paid to the worker for the results of his labor. Therefore, from the form of remuneration in the form of time-based and piece-by-piece it is necessary to move to its most flexible forms. Namely, piece-bonus, lump-sum [14.15], which in their form are closer to assessing the quality of a product or service.

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