Division of Sectors as organised and unorganised - Concepts - Chapter 2 Class 10 Economics - Sectors of the Indian Economy - Economics

Division of Sectors as Organized and Unorganized

Organized and Unorganized Sector 

• All three sectors, primary, secondary and tertiary , are further divided into 2 more categories of sectors on the basis of their registration with the Government and these are - Unorganized and Organized Sectors .

Organized Sector

• The Organized Sector includes all the enterprises that are registered by the government and these enterprises have to follow all the rules and regulations set up by the government. 
• Employees of this sector have job security i.e. they cannot be fired without any proper reasons and will also receive a pension when they retire at the age of 55 or 60 .
• The employees work in a decent environment and conditions and can also put in requests if they need some change or are not feeling safe .
• The working hours in this sector are fixed and people are compensated if they work overtime .
• Other benefits of this sector include paid leaves, provident funds etc.
• Certain Examples of this sector are - Government jobs, Schools, Banks etc.

Unorganized Sector

• The Unorganized Sector includes all those working people who are not registered by the Government and they are not required or violate the rules and regulations set up by the government. 
• Here, the workers do not have any job security and can be fired anytime when their superior feels like without any prior notice.
• The working conditions might not always be safe and their demands or requests are usually ignored . Sometimes, they even put their life in danger .
• Their working hours are not fixed and they are not paid anything extra other than their pre - decided compensation.
• No benefits such as provident fund, paid leaves are given to them.

How to Protect Workers in the Unorganised Sector?

• The rules and regulations in this sector can be easily manipulated , the employees of this sector are exploited in a lot of ways and the chances of them raising their voices against the exploiters are also very less as they can be fired without any notice and their source of earning bread will cease to exist.

Unorganized sectors are in a dire need to be protected against these unlawful practices . Some of the ways in which they can be protected are -

• In urban areas , casual workers need government support for procuring raw material. If the government is able to help them, then they can procure raw materials at a cheaper cost which will increase their profit margins.
  
  
• Farmers also need to be supported through adequate facilities for timely delivery of seeds, agricultural inputs, credit, storage and marketing outlets. Farmers usually depend upon third - party landlords for these facilities and then they are exploited by them due to lack of support and resources .
  
  
• Small Scale industries can be set up in various parts of the country and they have to be supported by the government for procuring raw material and marketing of the goods.