1:

1st chapter

Introduction

 Industrial Sociology:
Industrial Sociology is a combination of two words-
Industry&Sociology. To have a clear meaning of Industrial Sociology,
two words “Industry” & “Sociology” should be understood.
The word Industry come from Latin word “Industria” which means
“Adroitness” & “Affluent”. Industry may be defined as the
application of complex & sophisticated methods to the production of
economic goods& service.
Sociology is composing of two words- “Socius” which is Latin word
&Gerick word “Logos”. Socius means companion or associates &
Logos means science or study. So we can say that Sociology is the
science of society. Sociology is basically the study of people & how
we enter-act with each other.
Industrial Sociology is the sociology of relationship between
employers& workers or study of impact of industry on social
relation.
According to Charles B Spaulding – “Industrial sociology center it’s
attention on social organization of factory the store & the office. This
focus includes not only the inter-action of people playing roles in
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this organization but also the wage in which their work roles are
inter-related with other aspects of their life.”

 Scope of Industrial Sociology:

There is some scope of Industrial Sociology. They are given below:
1. Analysis of bureaucratized industry:
Analysis of bureaucratized industry from the point of view of
organizational rules & the behavior& attitude of professionals.

2. Study of work place:

Studies of work places as complex organic or socio-technical system
by which individuals achieve some balance between the demands of
the work situation and their own goals.
3. Studies of working groups:
Studies of working groups (mainly formal) & their system or
relationship, aims & believe, particularly where this contrast with
those of management.
4. Analysis of industrial relations:
Analysis of industrial relation as complex mainly description of the
historical development of labour organization bargaining producers
& types of trade-union.
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5. Analysis of consequence of industrialism:
Analysis of consequence of industrialism for the individuals
including the enter-action between non-work areas of life.

 Factors to be consider in industrial sociology:

The factors that should be considered in industrial sociology are
described below:
1. Industrial bureaucracy: If the policies of the bureaucrat are in
the favor of the industry then the production if the industry
runs well.
2. Union management relation:
For increasing the production of a industry, a controllable union-
management relation is necessary.
3. Family:
A family serves to a industry in three ways- they provides workers,
raw materials come from famity and member of the family consume
the product of the industry.
4. Economy:
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Economy is another considerable factor of a industry because a
good economic position of a country can help to establish higher
developed industry and to produce qualified goods.
5. Politics:
Political influence is also a fact in a industry. The policies of a
trade union have a great impact on an industry. So political
environment of the industry must be favorable.
6. Education & training:
An educated and trained worker has more productive capacity.
This educated and trained worker can produce more products
and perform his work systematically.
7. Social conflict: There are many workers of different societies in
a industry. They have their own social culture and they want to
practice their social culture in the industry that may create a
social conflict among them.

8. Collective behavior:
Collective behavior in an industry may create a dangerous
problem between owners and employers.
9. Manufacturing plan:

Government policies of a country also have an impact to set up

some industries. Some policies of the country forbade
producing some good.
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 Role/ importance of industrial sociology:
There is some importance of industrial sociology. They are given
below:
1. Sound production:Industrial sociology develops a good
relation between owners and employers that facilitate to
sound production.

2. Goal achieve:Industrial sociology helps to produced more

products that also help to the industry to achieve its desired
goal.
3. Reduce labor conflict:Industrial sociology always analysis the
relationship between owners and employers and attempts to
develop relation among them.
4. Good relationship established between management &
workers:Good relationship between management and workers
is established by industrial sociology that helps to make a
controllable environment in the industry and to increase
production of the industry.

5. Satisfaction of customers:Industrial sociology attempts to

serves the qualified to the customers. If the consumers get
good products, they become satisfied.
6. Mass production & cost minimize:Industrial sociology helps in
mass production and determines how to reduce the cost of
production.
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7. Increase skill:Industrial sociology analysis the production
capacity of the workers and trains them to increase their skill.

8. Develop & utilization of human resource:Industrial sociology

attempts to develop and utilization human resources that
increase the production of goods and also increase the
national income.

2nd chapter
7:
Industrial Society & Industrial Sociology

 Hawthorn experiment:
The hawthorn experiments were groundbreaking studies in human
relation that were conducted between 1924 & 1932 at Western
Electronic Company in Hawthorn Branch in Chicago by Prof. Elton
Mayo & his associates of Harvard University. These experiments
were conducted to determine the effect of various elements of
natural environment over productivity. The element includes
lighting, work-hour, humidity, amount of wages etc. These
experiments are known as Hawthorn Studies on Experiments.
Elton Mayo was born at Adelaide in Australia in 1880. His parents
wished that he would become a doctor. But studying in medical for
two years, he went to Austra Queens University & completed B.A
course. He died in 1940.
Elton Mayo came in USA from Australia in 1922. He passed rest of
his life in USA. He joined in Dept of Industrial Research in Harvard
University. Before Hawthorn study in 1923-1924, he and his
associates researched on “worker Turnover” in Philadelphia Textile-
mill. In this research he could find that if workers get chance or
opportunity to rest a while, then the ‘Labor Turnover” may be
reduced. Again he mentioned that by it, the attitude and confidence
or mentality become high. Then Elton thought of further works to be
done relating to thistype of human research. Keeping this thinking
in mind, he started Hawthorn Experiment in 1924.
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Associates of Elton Mayo:
The important associates joined in Hawthorn Experiments with
Elton Mayo are-

1. F.J. Roethlisberger
2. W.J. Dickson
3. White Head
4. Homanes

Period of Experiment:
At the end of 1924, the research was conducted. Although it was
planned to end the experiments within one year, but the
experiments continue for 12 years.
Experiments:
Hawthorn experiments have five parts. They are-
1. Illumination Experiment
2. Relay Assembly Test Room
3. Mass Interviewing Program
4. Bank Wiring Observation Room
5. Personal Counseling
The description of these experiments of Hawthorn Study is given
below:
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1. Illumination Experiments/ Test:
It is the first test of Hawthorn study. It was designed to determine
the relationship between lighting and productivity. These tests were
sponsored by the National Research Council (NRC) of the National
Academy of Sciences.
Time of Experiments:
The tests were started in November, 1924 and ended in April, 1927.

Purposes:
Determining the relationship of productivity with lighting, rest and
temperature is the main purpose of the tests.
Researcher and Place of Tests:
Prof. George Pennock is the researcher of this test. The place is
Chicago’s Western Company- Hawthorn Branch.
Description:
In the initial stage of experiments, working women were divided
into two parts under same work condition and environment. Such
as-

I. Examined group
II. Controlled group
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The production records of the two groups were kept. Keeping the
controlled group in previous situation, the amount of lighting was
increased and decreased in the work place for the examined group.
After the test, it was found that the production of two groups
increased more than before.
Result:
From this test, the researcher did not get any significant result. But
they could understand that without lighting, other variables are
affecting or influencing over the production.
So they started to find out the other variables that affect the
production in their second experiment.

2. Relay Assembly Test Room Experiment:

In order to observe the impact of these other factors, a second set of
test was begun before the completion of the illumination studies.
Period and researcher of research:
From August 1927 to 1932. White Head lead the experiment.
Research place:
Relay Assembly Test Room.
Reasons of experiment:
The main purpose of the test is to determine the effect of grouping
attitude, rest, tiredness, work-break, working hours and weeks on
production.
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Description:
Taking a clue from illumination experiment, the researcher
continued taking two girls for the experiment. These two girls were
asked to choose other 4 girls and made a small group of 6. The group
was employed in assembling telephone relays. They researched for
five years and they had an assistant to measure production and
temperature. Researchers hoped to answer a series of questions:
 Did they operators tire out?
 Did they need brief rest periods?
 What was the impact of changes in equipment?
 What were the effects of a shorter work day?
 What role did worker attitudes play?
 Why output declined in the afternoon?
To find out the answer of the above questions researchers started
the work. The purpose of research was explained to the selected
employers for research and they helped in it.
Result:
It were changed the work-break, stopped the delivery of lunch and
changed working hour. But with the change of these factors, no
remarkable change was happened. It was seen that in every sector,
the production is increasing. They explained the following subjects
as the reasons of production growth or increasement-
 Natural environment of developed work method and work-
place.
 Work-break to reduce tiredness.
 Reducing work-day in week for minimizing the monotony.
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 Using the wages as the element of motivation.
 Change of supervision system.
White Head avoid first three reasons to explain the effect of above
reason over production. To find out that- wages work as incentive or
not, he started experiment with 5 specialist operators. In this stage,
wage was given to every worker on the basis of personal or
individual production.
In this stage of research, the important results were found that- the
researcher had given the explanation of following things about
results:
Social relation and human relation, better mentality of employers
and favorable mentality to workers are helpful in the increasement
of production less than work-conditions, work-environments wages
etc.

3. Mass Interviewing Program:

Time of research:
Started in 1928 to 1933.

Purpose:
Developing work place, proper environment and supervision
systems.
Number of interviewees:
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The number of total interviewees are 21126 employees.
Time of interview:
From 1 hour to one and half hour.
Description:
In the interview program, interviews were taken to 21126
employees. Five inspectors were appointed for the interviews.
Among them 3 were men and the rest were women. 21126
employees or interviewees were divided among the five inspectors.
The employee who gave interview got specific amount of wages.
Before starting the program, some special directions were given to
the interviewers. The directions are-
 Informing the main purpose of interview to the both parties.
 Introducing interviewers formally to the employees who will
give interview. But they were suggested not to take interview
from the employees with whom they were pre-known or pre-
introduced.
 The comments were taken from the employees on three
subjects- supervision, work-environment and nature of works.
 Interviewees were informed about how the result of interview
would be used.
 Direction was given to keep the information in secret.
 Interviewers were directed to record the information after
interview within a short-time.
 If interviewee gives wrong information, the interviews were
prohibited from taking reaction.
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 In the time of interview, the interviewers would express such
attitude so that the employees think their objection would be
heard.
Importance of interview:
In the interview, the employees become very much interested.
Because, they got the opportunity to express their feelings attitudes
and objections through interviews. They thought themselves
important in group.

Result:
By this study, various important information was taken about
supervisions and work environment. Only the higher amount wages
and change of work conditions are not helpful in increase of
organizational production. Inter-relation among employees, formal
behavior, forming group etc. are the major elements of production.
So the supervisors must have proper knowledge about grouping
attitude, grouping situation etc.

4. Bank Wiring Observation Room:

Period of experiment:
From November 1931 to May 1932.
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Purpose:
Observation and analysis of influence of social groups specially
informal working groups over production of workers.
Description of experiment:
To conduct this experiment, total 14 male employees were taken
from three departments. Among them, 9 were of wire department, 3
were from the department of workshop and 2 were of the inspection
department. At first they worked in a separated room and first 3
weeks they did not talk with observers. After that, they started
normal behavior or works and simply behave with the observers. It
was the work of interviewers to collect information about the
attitude, ideas and expressions of the employees.
As the reasons the rationales are following:
 The workers had gone back without finishing their work in
every day.
 The employers acknowledged that they can produce more than
they did.
 There was no relation of production with the physical and
mental ability of workers.
Without these, pressure was given to keep the production in limited
amount.
These are following:
 Not to produced very much output.
 Not to produced very less output/ small amount of output.
 No objection would not be held against any worker.
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 Orders and directions of the group must be maintained.
 No work should not be done that is in favor of group.
There were some rationales to keep limited of the production-
 The workers thought that if they produced much, then
pressure would be given to produce more mush.
 Providing security for the employees of slow motioned.
 The fear of job loss for producing less.
 If fewer workers produce very much then there was a fear of
minimizing workers for the group. In other word, fear of
unemployment.
 The manager as if thinks that the workers cannot produce
much than they are producing.
Result:
The result of the experiment is given below:
 Informal groups arise side by side of formal groups.
 From this experiment, the importance of socialism activities.
 From this experiment it was possible to determine the effect of
workers attitudes and emotions on productivity.
 The importance of communication is expanded in the case of
development of workers attitude.
 The importance of participation in decision making was found
from this experiment.

5. Personal Counseling:
Period of experiment:
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After 4 years of the Relay Assembly Test Room, this experiment was
started. Because of the late was great depression.
Objectives:
There were two main purpose of this experiment-
 Identification of relation of employees by the people who are
not connected with management and to help the inspector for
their interview and developing inspection system.
 Development of information system to reduce the
misunderstanding among management and workers.
Description:
There was lack of communications between manager and workers
groups. As a result, misunderstanding creates among them.
To stop this, a group of intermediaries tried to transmit or exchange
information among workers and managers. In a result, the
unnecessary, misunderstanding tension were came to end.
Result:
 Development of relation between workers and inspectors.
 Development of relation between workers and managers.
 Workers become able to adapt different situations and
environment.

 Result of Hawthorn Study:

Hawthorn experiment established the base of behavior concept in
management sector without any confusion. Only by this
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experiment, the practice started of giving honor as human to the
people. Before the experiment, human resources were treated as
other substantial machines. In these experiments, revolt was
created in human relation. In the following, the results are
discussed:
1. Hawthorn Experiment was a wide based experiments and it was
so important that many researchers thought it as a forever
experiment.
2. In the last, it is thought that, the production ability depends upon
wages and natural environment of work place, but from the
result of the experiment it is proved that, production is increase
by the creation of social and mental environment without the
favorable change of natural environment.
3. After the experiment, the new research was started for the
development of human relation side by side the experiment of
the ability of workers financial motivation in the case of product
increase and natural environment.
4. As a result of this experiment, the scope of industrial psychology
and in management sector, many new methods were included.
Among them, following are very much remarkable:
 Workers- management relation.
 Inspection and direction.
 Attitude and confidence of workers.
 Motivation and work satisfaction.
 Exchange methods of information and options.
 The effect of organizational structure and unity of group in
case of production.
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 Workers counseling program.
5. Determining mistakes become easy, for example- if any worker
can understand that his work are being observed then he
become alert about his behavior and behave according to
inspectors expectation.
Hawthorn Study become able to keep contribution in the above
mentioned subjects and captures an important place in industrial
psychology and management sectors.

 Contribution of Hawthorn Experiment:

Elton Mayo and his associates conducted their studies in the
hawthorn plant of the Western Electrical Company in U.S.A, between
1927 and 1930. According to them, behavioral science methods
have many areas of application in management. The important
features of Hawthorn Experiment are:
 A business organization is basically a social system. It is not
just a techno-economic system.
 The employer can be motivated by psychological and social
wants because his behavior is also influenced by feelings,
emotions and attitudes. Thus economic incentives are not the
only method to motivate people.
 Management must learn to develop co-operative attitudes and
not rely merely on command.
 Participation becomes an important instrument in human
relations movement. In order to achieve participation, effective
two-way communication network is essential.
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 Productivity is linked with employee satisfaction in any
business organization. Therefore management must take
greater interest in employee satisfaction.
 Group psychology plays an important role in any business
organization. We must therefore rely more on informal group
effort.
 The Neo-Classical theory emphasis that man is a living machine
and he is far more important than the inanimate machine.
Hence, the key to higher productivity lies in employee morale.
High morale results in higher output.

3rd chapter
The Worker and The Industry

 Industry:
Industry is meant the invention and use of tools in order to achieve
a material end.
According to PascualGisbert- “industry may be defined as the
application of complex and sophisticated methods of the production
of economic goods and service. This complex methods which
implied the use of machine, have been devised in order to improve
the quantity and quality to production”
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According to industrial relation ordinance 1969, section 2 (xiv)-
“industry means any business, trade, undertaking, manufacturing
calling service, employment, occupation or vacation of workers.”

 Importance of Industry:
The importance of industry is given below:
1. Agricultural development:
Industrial raw-material comes from agriculture. For this reasons
industries try to develop agriculture. Some outputs of industry are
used in the agriculture to improve agricultural production. Such as
agricultural tools, chemical, fertilizers pesticides etc. come from
industry. Without industry, it is impossible to develop agriculture.
2. Prompt economic development:
Industry is necessary for the prompt economic development of a
country. A country cannot develop economic condition based on
only the agriculture. By developing industry and increasing
opportunities, a country can bring prompt economic development.
3. Increase national and par-capita income:
We can produce more products through the industry that can be
exported in the other countries. By exporting goods, we can achieve
foreign currencies that increase our national and par-capita income.
4. Solution to unemployment problem:
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Industry needs employees to continue its production. Therefore, if
more industries are established, the more job opportunities will be
created that will help to reduce unemployment.
5. Proper utilization of national resource:
It is very important to develop industries to reduce the waste of
natural resources and utilized the natural resources properly to
produce more products. Through the proper utilization of natural
resources, it is possible to develop the economic condition of a
country.
6. Protection of population pressure on agriculture:
The population of our country is increasing day by day. As a result
they are creating pressure on agriculture to earn their livelihood.
The industry can reduce this pressure on agriculture by creating
more job opportunities.
7. Infrastructural development:
The industries also include construction activities. These industries
provide the products of construction such as- construction of bridge,
road, building and so on.
8. Decreasing dependence on foreign countries:
We are to depend on foreign countries for some special products. If
we establish these industries which can be produce these products,
we will not depend on foreign countries.
9. Decreasing import:
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We are to import many products from other countries. By
establishing industry, we can reduce the amount of import.
10. Earning valuable foreign currency:
The products which are produced in a great amount that can be
exported in other countries to earn valuable foreign currencies.
11. Proper utilization of human resources:
A lot of human resources are being wasted due to lack of proper
utilization. So these human resources can be utilized by industry.

12. Efficient labor system:

There are various skilled employees in industry. They are involved
in those sectors of work in which they are perfect.

 “Industry as a transformation system”- Explain:

With the change of age and development of science, the
transformation of industry has also changed day by day. From early
age to modern age, which change was happened, the transformative
system is classified with the basis of this change.
There are two types of transformative system. They are:
1. Simple Transformative System:
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Simple transformative system represented by early hunters and
agriculturists whose more widely known instruments were the
arrow and spare and the digging stick or hoes and who used to make
fire by wood friction or stone percussion.
2. Complex Transformative System:
The complex transformative system imply a higher degree of
complexity in comparison with the previous one and are so called
because the tools or instruments used are more sophisticated.
Complex transformative system may be divided into two parts:
I. Early Industry
II. Modern Industry

 Early Industry:
In many pre-literate societies and in most of the early civilizations,
we find a system prevalent which can be called early industrialism.
It was started from 900 century and ended before industrial
revolution.
It has mainly two characteristics:
a) It was characterized by the use of tools and machines worked
by the hand with the help of animal power such as- handloom,
water wheel, animal plough etc.
b) It was also characterized by an excess of production over
immediate consumption by which the goods thus saved can be
stored and used for exchange and trade.
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Early industry becomes divided into three parts. They are:
I. The Manorial/ Feudal System:
The manorial or feudal system prevailed in Europe, especially in
England, from about the 9th to the 12th century. That system was
called manorial or feudal system. In that time, the feudal lords were
all in all. All the matters were controlled by the lords and cultivated
by the tenants and gave them less wages. The characteristics of
manorial or feudal system are given below:
a) It was land base production system.
b) The manor consisted of a vast extension of arable land ruled
over by the feudal lord and cultivated by his tenants or
laborers who were either serfs or free men.
c) Tenants were leading their livelihood by wages that lords
given them due to cultivation of crops.
d) The lord and cultivators were in a definite circle and the total
economy was controlled by the feudal lords.
e) There were also a few tradesmen, millers or artisans and
blacksmith whose services were available. Almost everything
needed for sustenance was produced at home and even some
surplus ordinarily remained for trade or exchange.
f) There were military force under feudal lord and lord them
self to obey and save the lord. The relation between lord and
tenants were not always cordial and they were cruelled by the
lords. As a result due to this causes, feudal system was
decayed.
Decay of Manorial or Feudal System:
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There are some reasons behind the decay of feudal system. They
are:
a) The rise of the urban civilization in the 11th and subsequent
centuries in Europe.
b) Due to this, the tenants were run away in town and living
permanently with searching job and occupations.
c) On the other hand, there were not enough man-power for
cultivation of land.
d) After coming towns, towns give them freedom in earning and
leading livelihood.
As a result, for the above reasons, Feudal System was abolished and
Guild System originated.
2. The Guild System:
Guild is the kinds of organization in which members are applied in
same occupation, or Guild is the organization of labors that were
related with special occupation. Guilds of cobblers, blacksmiths,
goldsmiths, tailors, bakers, cloth makers etc. was found in that time.
All of them were reserved their interest. Now this system is
controlled by CBA System.
Characteristics of Guild System:
Some characteristics of Guild system are given below:
a) The guilds themselves were a kind of combination of trade
union, professional organization and mutual benefit society.
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b) The guild regulated not only the quantity and quality of the
goods to be produced but also their prices and the tools that
could be used.
c) The guilds were concerned not only with the economic
interests of their member, but they also discharged social,
political and religious functions.
d) The labors of the guild were not unknown to each other.
e) The social relation among the members was established on the
basis of production process.
f) The machines were hand controlled.
g) Comparatively the laborers were less skilled.

In that time the Guild was two types:

I. Merchant Guild:
Basically merchant guilds were the organization of combination of
merchants; it worked for the protection the interest of the
merchants. The people who were engaged in business of goods and
services called merchants this is now controlled by Chamber of
Commerce.
II. The Craft Guild:
The craft guilds were the more important of the two bringing
together the men engaged in the same occupation. So there were
guilds of cobblers, blacksmiths, goldsmiths, tailors, bakers, cloth
makers etc. They looked primarily after the interests of the crafts.
Decay of the Guild System:
28:
The 16th century onwards begun to take place until they finally
brought about the downfall of the Guild. The exact time is not
determined. The causes of the decay of the guild are discussed
below:
a) Due to bad relation between merchant and craft guild, urban
authority compelled to take-over the activities of the Guild. As
a result, the power of guild reduced.
b) Monopolistic attitude in production and sell created a
dissatisfied movement in others parties. Finally, govt. ordered
the court to observe the activities of guild.
c) Due to expansion of market of produced goods, guild gradually
depends on exporters. For this reason, guild was become
limited to the exporters but not met the demand of market.
d) In early 16th century, demand increases of new product. For
producing new products, foreign raw materials were essential
that was impossible to supply by guild.
e) The other causes behind decay of gilds system were-
 The opening of the commercial way
 The discovery of America.
 Discovery of new science and technology.
 Discovery of new source of raw materials.
 Coal, water and electricity used in machineries.
After the declining of Guild system, domestic system was originated.
3. Domestic System:
Domestic system was originated in rural area of Europe. It was first
originated in England in 13th century in woolen industry; it was high
expand in 15th to 18th century in England. When the guild system
29:
began to disintegrate, a kind of pre-capitalism arose called the
Domestic System.

Characteristics of Domestic System:

Some characteristics of Domestic system are given below:
a) there were two class of production system:
 labor/ total family of labor
 Merchant/ Entrepreneur.
b) In some cases, businessmen or merchant supplied machineries.
c) Merchant were supplied raw materials, yet supplied
machineries or not, they gained ownership of product. Labors
taken wages.
d) In this system, new technologies were applied.
e) This system select labors other section and always ignored
guild system.
Decay of Domestic System:
The reasons for which the Domestic System was decayed are given
below:
a) To control of wastages was impossible due to supply raw-
materials to separate and unconscious labors.
b) Investigation or inspection was impossible due to separate
staying of labors.
c) Wastage of time due to mass level of production by carrying
goods.
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d) It was quite impossible to reduce production cost or increased
production units and to supply best product in reasonable
price. Finally entrepreneurs are compelled to investigate new
system of production.
After the decay of system was abolished.

 Modern industry:
Modern industry is originated in 18th century. The activities of
modern industry are continued till the present time.
The characteristics of Modern Industry:
The characteristics of Modern Industry are given below:
a) Centralization of production system or where sources of
power, market of goods and raw-materials are available,
industry are established there.
b) After industrial revolution, some machineriesare invented
(flying settle, cotton machine, railway engine etc.). Due to this
innovation, the used of machineries are increased rapidly.
31:
c) Large scale of production was impossible without capital. So
entrepreneurs came forward for establishing large industry
with their saving money.
d) Large scale of production was possible due to proper
utilization of capital and extended of the market by the
entrepreneurs.

4th Chapter

Industrial Commitment

 Definition of commitment:

Commitment is said involves both performance and acceptance of

 32:
behavior appropriate to an industrial way life. It implies the
acceptance of the values of industrial society and their expression in
behavior.

It comprises two values- one is the value of performance and the

other is the value of discipline.

According to, Bateman and Strasser- state that organizational

commitment has been operationally defined as-“ Multidimensional in
nature, involving an employee’s loyalty to the organization,
willingness to exert effort on behalf of the organization, degree of
goal and value congruency with the organization, and desire to
maintain membership”

At last we can say that, industrial commitment is the degree to which

an employee identifies with the organization and wants to continue
activity participating. Industrially committed employees usually have
good attendance record; demonstrate a willing adherence to industry
policies and lower turn-over rates.

 Importance/necessity/advantages of commitment:

Commitment is a degree which is very much important for the

organization goal including organizational behavior. Commitment is
essential for some purpose, which are given below:

1. Easy supervision:

Supervision is essential to the organizational activities. If superior can

supervise in a good way in the organization employees their
commitment isvery much essential.
33:
2. Easy motivation:

Motivation helps to inspire of the employees as a result production

increase. Commitment which does some task to motivate the
workers.

3. Increasing working zeal & cooperation:

Commitment is a behavior which makes a better behavior between

workers and superior parties as a result working zeal and
cooperation are increase.

4. Reduce industrial hostility & conflict:

In an organization there creates many hostility and confliction in

various working levels. Commitment is a degree to which industrial
hostility and confliction are decreased in possible way.

5. Increasing productivity:

In commitment superior and inferior make a good relation. Workers

of the organization work spontaneously because they have good
relation with the organization through commitment.

6. Reduction of wastage:

Commitment always make on the behalf of the organization to

perceive of the working group. There some effective manners are
used to increase production and reduce the extension cost of the
organization and the cost which is not essential of the organization
through commitment wastage must reduce.

7. Enhancement of ability and ethical standard:

 34:
Commitment there always describes some task which is normally
concerned with the moral or ethical suppose training facilities for the
workers, formulate various techniques which is helpful to the
workers. As a result, ability and ethical may go standard level.

8. Increase organizational goodwill:

Through commitment more productivity will possible or standard

productivity will able to produce with the help of the workers on
behalf of the organizational goal. By the by company can gain more
recognition and goodwill increase with commitment.

9. Established discipline:

Commitment is the set of some discipline which is favorable to the

organization on the behalf of organizational purpose. Commitment
follows some perspective rules and regulation through which
discipline are to be maintained.

10. Reducing labor turnover:

Labor turnover always harmful to the organization because for the

labor turnover production is decreased the company goodwill
decreases. But through commitment good relationship must be
maintained as a result labor turnover decrease.

11. Proper management:

A proper management always main some effective issue which is

helpful to the workers and favorable on the organization. It is the set
of management system where every types of management level are
appropriate both of the parties in the organization. Through
commitment it will possible.

So we can say that, commitment is very much important for the

 35:
organizational activities above reasons are mentionable thing of
commitment appropriation of the organizational level.

 Stages of commitment:

Commitment has basically four stages which are given below:

1. The uncommitted workers:

The uncommitted workers are normally not committed. The

uncommitted worker faces various problems for the wage
distribution time. Uncommitted workers do not get proper offer from
the organization.

2. The semi committed workers:

Semi committed workers are beneficiaries from both sides. Generally

their family stand in village and they works in urban area. Where he
gets income from both side.

3. The generally committed workers:

The generally committed workers are including in full commitment.

They take offer any type workers normally well trained and they get
wages in after certain time.

4. The specially committed workers:

The specially committed workers work in a definite firm. They very

much skillful or experienced. They are well trained persons. They are
get more wages and they are also trustworthy to the owner class.

Above four stages are mainly stages of commitment.

 36:
 Three component model of commitment:

Meyer and Allen’s (1991) three components model of commitment

are made. This can characterize an employee’s commitment to the
organization:

1. Affective commitment:

Affective commitment is defined as the employee’s positive emotional

attachment to the organization. An employee who is affectively
committed strongly identifies with goals of the organization and
desire to remain a part of the organization.

2. Continuance commitment:

The individuals commits to the organization because he / she

perceives high costs of losing organizational membership, including
economic costs and social cost that would be incurred. The employee
remains a member of the organization because he/she “has to”.

3. Normative commitment:

The individual commits to and remains with an organization because

feelings of obligation. These feelings may derive from many sources.
For example- the organization may have invested resources in
training an employee who then feels a moral obligation to put forth
effort on the job and stay with the organization to repay the debt. The
employees stay with organization because he/she “ought to”.

 Indicators lacks of commitment:

Some indicators identifies the lacks of commitment which are given

 37:
below-

1. High rate of absence:

High rate of absence normally seen when the commitment is lacks

between both parties so high rate of absence is the indicators of lacks
of commitment.

2. Tendency of violating discipline:

Commitment and discipline are closely related of the organization. So

when disorder or chaos is seen, it indicates the lacks of commitment.

3. Avoidance of work:

A worker can do work with better commitment. Without better

commitment the worker avoid work.

4. Reduce production:

Better commitment increase production of the organization when the

commitments are not fulfilled the production will decrease.

5. Industrial Hostility & conflict:

Hostility and conflict are arisen from unfavorable commitment.

Favorable commitment makes god relation between two parties and
unfavorable condition makes Hostility & conflict.

6. Frustration & low morality:

Commitment make on learn morality of high but when commitment

are not existence in the organization the workers feels frustration and
make how morality.
 38:
7. Low degree of productivity:

Productivity is high when a strictly commitment exists but when it

lapse the degree of productivity will go lower level.

So we can say that above indicators are mainly thing which indicates
the lacks of commitment. When we see above these lacks we realized
the commitments are not good.

 Guideline to enhance organization commitment:

Some rules is helpful to enhance organizational commitment which

are-

1. Commit to people first values:

Here some mentionable tasks are put in writing, hire the right kind
manager and walk to talk.

2. Clarify and communicate our mission:

That means clarity the mission and ideology and make it charismatic,
use value-based hiring practices, stress values-based orientation and
training, build tradition are reasonable things.

3. Guarantee organizational justice:

Have a comprehensive grievance procedure, provide for extensive

two ways communication are related with this.

4. Community of practice:

It is the rules there, build value-based homogeneity, share and share

alike, emphasize, barn raising cross utilization, and teamwork, getting
39:
people to work together concerning.

5. Support employee development:

It is the last vital rates to rise commitment. Here some things are
concluded, commit to actualizing, provide first-year job challenges,
enrich and empower, promote from within, provide development
activities, provide employee security without guarantee.

So we can say that above discussion thing are very much important to
enhance the commitment.

 Three pillar model of commitment:

Martin Michael has done this model in experiment over the 14 British
companies. Which are-

Optimum loyalty Attain satisfaction

To By

The organization Performance

Trust of management

A. Optimum loyalty to the organization

Here some concern able thing are concluded which are-

i. To realize the objectives of the organization.

 40:
Ii. To participating in indecision making.

iii. Provide commission.

iv. Participating distribution dividends.

B. Attains satisfaction by performance: In these term mainly

concerned with:

i. To provide freedom of work

ii. Ensuring better environment

iii. In-internal and external are to provide to exhibit the creativity of

new thing.

C. Trust of management:

Here the inferior are want to trust to the management level.

Management work as trustworthy with the workers.

 What are the present conditions of commitment in

Bangladesh?

Bangladesh is a developing country. Here existing lack of

commitment to industries. The present condition of commitment in
Bangladesh are discussed in below-

i. Association between age and commitment:

To find the relationship between age and commitment, workers were

placed under two groups- young and old and were cross tabulated
 41:
against their respective level of commitment. The analysis shows that
there is a significant relation between age and commitment. Here
commitment seems to increase with the increased in the age of
workers.

ii. Education and commitment:

Surprisingly there has been negative association between education

and commitment. While workers with little or no education (50%)
are highly committed, only 30% of the workers of higher education
group (above class 5) show higher level of commitment.

iii. Marital status & commitment:

Our analysis shows that there is a no significant relationship between

marital status and commitment.

iv. Dependency load & commitment:

Workers on an average had about four dependents. The analysis

shows that like marital status deep Trust of management deny load of
the workers has nothing to do with commitment.

v. Rural–Urban background & commitment:

The analysis of relationship between rural-urban origin and

commitment shows that workers with urban origin or background
are more committed than workers with rural background.

vi. Nature of employment & commitment:

The analysis shows that there is a close association between workers

commitment and their nature of employment. Here, permanent
42:
workers are more committed than temporary workers.

vii. Length of industrial experience & commitment:

The analysis shows that industrial work experience and commitment

are positively correlated.Thus, commitment increases with the
increase in the period of industrial experience.

viii. Occupational background & commitment:

The analysis of association between workers own occupational

background and commitment shows that workers with industrial
background show higher commitment than workers with non-
industrial background.

ix. Family attachment & commitment:

The analysis shows that while 58% of those with living with their
family members are highly committed, the corresponding figure of
those living away from their family members is only about 28%.
Thus, workers living with their family members are more committed
than living away from their family members.

At last we can say that, the present conditions of commitment in

Bangladesh are lacks we realized through above discussion.
43:

5th chapter
Industrialism

 Industrialism:

Industrialism is an economic and social system based on industry.

44:
According to Oxford Dictionary,-“Industrialism is a social system in
which large industries have an important part.”

 Industrialization:

The UN Committee for industrial development adopted a definition

for industrialization,-“Industrialization is a process of economic
development in which a going part of the national resources is
mobilized to develop a technically up to date, diversity domestic
economic structure characterized by a dynamic manufacturing
sector having and producing means of production and consumer
goods and capable of assuring a high rate of growth of economy as a
whole and achieving economic and social progress.

 Characteristics / Advantages of Industrialization:

There are some characteristics of industrialization. They are stated

below:
i) Increase in Production of Goods & Services:
Industrialization is the process of economic development. It
increases production of goods & services by various activities.
ii) Increase Range of Resource Employee:
Industrialization increases the range pf resources employee through
creating many employment opportunities to industry.
45:
iii) Use Technology:
Industrialization is a dynamic process of production. It uses the high
technology day by day for producing goods & services.
iv) Economic Development:
Through industrialization creates goods & services and
employment, it develops the economic system.
v) Increase efficiency of Capital:
It helps to minimize cost and maximize production. So it increases
efficiency of capital.
vi) Goods & Services Make Available for Human Consumption:
Industrialization create a lot of goods & services & make them
available for human consumption.
vii) Consistency in Demand & Supply:
Industrialization produces goods & service for the demand of
consumer. It supplies the goods & balance between demand &
supply.
viii) Utilization of Human Resources for Production:
Industrialization creates employment and utilizes the human
resources for production.
ix) Influence Culture:
Industrialization influence culture by producing various types of
goods & performs various activities.
x) Infrastructural Development:
Industry needs to bring raw materials to the factory and supply
goods to the market at a cheap rate. So it develops the
infrastructural system of a country.
46:

 Disadvantages of Industrialization:

Though it is a blessing for us, it has some disadvantages. They are-

i) Environmental Pollution:
Industry pollutes the environment by its smokes, waste and other
sub-products.
ii) Accident & Sudden Death:
In industry many labors are in danger of sudden death. Any time
there may occur accident & sudden death.
iii) Decreasing Age of Life:
Industrialization polluting environment day by day by various
activities. As a result age of human life is decreasing.
iv) Child Labor:
Industrialization increases the children to work in the industry at
small amount money. So it creates child labor.
v) Sudden Unemployment:
In certain time industry may close & then the employees lose their
work. So it creates sudden unemployment.
vi) Green House Effect:
Industrialization degreases trees & increases smoke as a result the
world temperature is increasing. So green house effect is rises by
chloro-fluro-carbon, carbon monoxide etc.
vii) Create Elite Class:
47:
By the industrialization process the elite class is rises. Because the
owners of industry earn more money for the industry.
viii) Destruction Some Industry through Competition:
Another disadvantage is the industry may destroy through undue
competition among them.

ix) Huge Arms Competition:

Industrialization increases people to use arms in competition. They
involve in huge arms competition for industrialization.

 Steps should be taken for industrialization:

For industrialization the following steps should be taken. They are

given below.
i) Effective Role of Government:
To develop industrialization the government should play an
effective role by policy making & other facilities.
ii) Increase Capital:
To develop industrialization every industry should increase it’s
capital. Without increasing capital industrialization is not possible.
iii) Efficient Worker & Technical Advancement:
Industrialization efficient works & technical advancement is
essential. Efficient works & technical advancement helps to develop
Industrialization.
iv) Development of Power Resources:
48:
For incensement in production power resources such as electricity,
gas, coal & other power resources must be developed.
v) Create Foreign Market:
For industrialization goods & services must be import & export
other countries. So foreign market must be created for
industrialization.
vi) Development of Agriculture:
Though the raw materials are come from agriculture must be
developed for industrialization.
vii) Effective Planning:
For developing industrialization effective planning is very much
important. Without effective plan industrialization process is
impossible.
viii) Ensure Political Stability:
Political instability of a country causes deindustrialization. Political
stability of a country causes development in industrialization.
ix) Infrastructural Development:
For industrialization road, bridge, culvert & transportation system
must be developed.

 Impact of work & workers by industrialization:

There are some impact on work & workers by the industrialization.

These are given in the next page:
 Impact on Work:
49:
Industry has some impact on work & these are both negative &
positive.
i) Increase Production:
For industrialization industry & firms are increase. As a result
production increases.
ii) Decreases Unemployment:
Industrialization creates availability of employment. So
industrialization decreases unemployment.
iii) Use high technology:
As a result of industrialization, many higher sophisticated
technology are used in the production sector.
iv)Environmental pollution:
There is also a negative impact on work. Since industrialization
increase industry and it pollutes our environment.
v) Maintain Quality:
Since industrialization involves new & modern industry so it
maintains the quality of goods.

 Impact on workers:

There is a greater impact on workers for industrialization. Such as-

i) Economic solvency:
Since industrialization create much industry and industry develops
production. So many people earn huge amount of money from
selling the products.
50:
ii) Increase efficiency:
Since industrialization uses more sophisticated technology, the
employees efficiency increases.
iii) Increase social status:
There is a great influence of industrialization on increasement of
social status. It increases social status by increasing earning money.
Industrialization increases social status through creating new
products.
iv)Expansion of education:
Industry ensures education facilities by creating school, collage in
their own campus. As a result, the children of the employee can be
educated from there.
v) Development of labor management relation:
Industrial work involves relation with labor and management to
achieve industrial goal. So industrialization develops labor
management relation.
vi)Increasing living standard:
Industrialization produces new and modern goods for the demand
for human want. So day by day, it increases living standard of
people.
vii) Decrease age of life:
Industrialization pollutes environment by creating smoke and many
other waste. As a result, age of human life decreases.

viii) Dissolution of joint family and create single family:

51:
Because of industrialization, people want to live near to the industry
from their family. So it breaks up join family and creates single
family.

 Social problem that created by Industrialization:

Everything has some bad side. Industrialization creates some

problem on society. They are described below:
i) Unhealthy environment:
Industry pollutes air, land, water by its waste. So industrialization
create unhealthy environment.
ii) Sudden unemployment:
Industry may be suddenly stop for any causes. On the other hand,
industrialization uses new technologies. As a result, sudden
unemployment may occur,
iii) Cultural problem:
Industrialization creates different types of new products. It mix the
culture of various countries. As a result, thus it create cultural
problem.
iv) Housing problem:
Industrialization creates industry in any place side by side home.
Industry creates housing problem by performing its activities near
to the home.
v) Dirty living:
52:
Since industry pollutes environment by many ways, as a result, dirty
living is raises.
vi) Labor movement / labor conflict:
Industrial employee may move for getting their real wages and good
working condition. As a result, labor movement and labor conflict
arises.
vii) Dissolution of join family:
Industrialization establishes industry and people want to work in
these industries. So they leave their family to live near the industry.
Thus industrialization break join family
viii) Increase crime:
As industrialization increases, crime is increases in every sector of
industry. Many workers and intermediaries commit crime to earn
money.
ix) Increase accidents:
Industrialization means the increase of industries and factories.
These industries perform their operation with machineries. These
machines may cause accident at any time.
x) Create elite class:
The owner of the organization, the intermediaries, the businessman
of industrial goods earn more money. They get more facilities from
others in the society. Thus industrialization create elite class.

 Step should be taken for the development of the

industrial society:
53:
There are some steps that should be taken to develop industrial
society. They are divided into types-
a) Internal
b) External.
They are described below:
a) Internal:
It includes some steps, this are-
i) Good working condition:
To develop industrial sociology, it is very important to develop good
working condition in which workers can work safely.
ii) Healthy service:
The service provided by the industry must be healthy. Unhealthy
working condition may decrease production. So healthy service
must be needed.
iii) Washing & bathing facilities:
If there washing and bathing facilities are available, then the
production rate will be high. Because employees will be motivated.
iv)Industrial training:
There should be industrial training available for the workers.
Because it develop workers efficiency.
v) Canteen:
Another important thing is the canteen facility. If it is available &
good, then workers will be motivated to work.
vi) Recreation club:
Recreation club is the association in which workers may share their
feelings and many cultural activities. It is very much needed.
54:
b) External:
These are given below:
i) General education:
It is very important to ensure general education. It may helpful to
develop production.
ii) Entertainment:
Workers are tried for doing their works for long time. If there is any
opportunity for entertainment, workers motivated to do work
enthusiastically.
iii) Accommodation facilities:
Workers want to live near the industries and if they stay near to the
industry, the production cost will be decrease and production rate
will be ultimately increase.
iv) Medical service:
There should be availability of medical facilities for the workers.
v) Provident fund:
There should be provident fund for every employee.
vi) Social security:
To do work freely and seriously, social security of employee and
their family must be ensure.
vii) Transportation facilities:
If any organization provide its employee transportation facility, then
the employee of the industry or organization so much motivated.
viii) Insurance facilities:
55:
Insurance facility is must for every employee. Every employee’s life
and other things must be in insurance facility.
By following the above steps, an organization can develop its
activities and can increase their production.

7th Chapter

The Social Structure of Industry

 Definition of the executive role in industry:

By executive role is meant here that role or set of roles in which

resides ultimate authority for the administration of day to day
56:
affairs of an organization, both internal and external of the
industrial bureaucracy.

The ultimate authority is that place where decisions cannot be

referred to some other role. In industrial organizations, The ultimate
authority may rest in the hands of an owner or family, in the
directors of the organization or in a chief executive.

The nature of the executive role is directly shaped by the nature of

the organization in which it is embedded. As we have seen, modern
industrialism is marked by a complex machine, technology and by a
bureaucratic type of social organization.

 Roles or functions of executive:

The function of an executive is very much essential to achieve goal

for an organization. The roles or functions of executive are given
bellow:

1. Shaped by the overall aim of the organization :

The roles of the executive are in the first place shaped by the overall
aim of the organization. This overall aim is the production of profits.
It has been shown that all other goals of the industrial organization
even the goal of production is subordinate to the overriding demand
for profit.

2. Setting the general policy of the organization:

The executive must formulate two major types of policy. Viz-

a. Set the purpose and objectives of the plant as a whole:

57:
In general the aim of any industrial plant is set for the executive by
the culture. This aim as we have seen is the production of profits
through the manufacture and sale of a product or services.

b. How end shall be attained:

The executive must determine how the end he has chosen shall be
attained, what efforts shall be devoted to its attainments, and how
the effort shall be apportioned among members of the organization.

Three considerations are important here-

a) The executive must consider a wide variety of factors which

are related to the market and which are usually termed
“economic” in nature.
b) The executive must orient his policy making to the internal
state of his plant.
c) Management must take into account the extraordinarily
dynamic situation in which industry exists when it seeks to
formulate policy.

3. The establishment of relations with external forces:

A second major function of the executive is to relate his organization

to the external world. In a sense that is he must formulate a foreign
policy for his enterprise. Establishing proper relations between the
industrial plant and important external factors are-

a) Relate his firms to other firms.

b) Relate his firms to government.
c) Relate his firms to a labor union.
d) Relate his firms to public at large.
58:
4. Setting up the organizational structure of the plant :

Although the administration may be positive observation of and a

focal point of communications in a largely self operating and self
controlled organization, nevertheless it is this administration that
sets the organization in motion that provides it with its initial
direction of movement.

5. Guiding or directing the internal organization of the plant:

The major function of the executive is the administration of the

initial affairs of the plants. It is his capacity as an administration that
the executive is a familiar figure to most people. The administration
aspects of the executive role are shaped by the nature of complex
organization.

6. Securing the power type of personnel:

Filling the industrial role with the proper type of personnel is the
function of the executive as an administrator. It is because of the
executive is dependent on personnel over whom he has only
indirect control.

7. Securing essential services:

The executive cannot hope to secure essential services if he does not

have proper personnel. Even with entirely adequate personnel the
problem of electing services remains.

 The structurally generalized goals of the executive’s roles:

59:
All roles in society are made concrete brought to life, so to speak by
flesh and blood human beings. In one sense it might be said that
society is made a reality by human beings playing roles.

The structurally generalized goals of the executive roles are

described below:

1. Remuneration:

It is important to realize that to the executive remuneration on this

princely scale does not mean the same thing as a wage to the work
man. For the executive, financial reward may be a simple of social
prestige and social position.

2. Accomplishment:

Perhaps no role in society affords more of a sense of

accomplishment of doing vital things then the executive’s role. The
pragmatic bent of our society, its emphasis on the creation of
material values in sense of accomplishment.

3. Status:

Closely related to accomplishment and remuneration, attained in

many areas of life but occupation is a important source of status. If
occupations were arranged on a status scale, the role of executive
would be at very near the top.

4. Power:

Power is the ability to control the action and even minds of other
men. A discussion of the executive asked why the boss worked and
its answers in part that he loved working that he gained a sense of
power from his work.
60:
5. Freedom :

Another general goal which is built into the role of executive is built
into the role of executive is the relatively greater freedom or
autonomy which the role offers. Objectively the executive is free in
that he is not tied to a machine a desk or a room.

Thus at teats five generalized goals which many people in our

society ardently desire may be achieved within the executive role.

 The personality of the successful executive:

Effective personality is very much essential for achieving the goal of

an organization. The personality of successful executive are
described below:

1. Possess strong self discipline:

The executive must possess strong self-discipline if the role is to be

first attained and then successfully filled.

2. Possess unusual ambition:

The typical successful executive must possess unusual ambition, a

relentless drive to get ahead, to achieve to be successful in the
pursuit of his goals he must be hyperactive, energetic, stopping at no
obstacles.

3. Possess intelligence, foresight and insight:

The executive must possess intelligence, foresight and insightness of

a very order. The extensibility of the role strengthens the need of
high general capacities. It is the creative, inventive, adaptive
personally who succeeds at the executive role.
61:
4. Highly trained:

Training enables an employee to do his present job more

frequently. If the executive are highly trained, they are more skillful.
Most recently, e-training increased awareness among the
executives.

5. Highly educated:

The executive must be highly educated with the advancement of

modern technology and management. Highly educated executives
quickly understand the principles, policies, theories of management.

6.Democratic:

Democracy is one of the major important elements of the

personality of the successful executive. If an executive have
autocratic mentality, he fails to achieve the organizational goal.

7. Extremely skillful in handling people:

An executive must be able to adjust to verify of personalities, to

understand their motives, attitudes, beliefs, values and symbols.

8. Capable accepting authority :

The executive must be capable of accepting authority. He should be

able to authorize the organization.

9. Flexible mentality:

Of course an executive should have flexible mentality. Without it he

cannot control the inferiors and organizational goal will fall.
62:
10. Power for compromise:

An executive must have the power of compromise for achieving the

organizational goal. He must compromise sometimes with all of his
stuffs.

11. Hard worker:

Industry is the key of success. So without hard working an executive

cannot achieve his goal. With hard working an executive can gain
easily hard thing.

 Social Responsibility of industry:

Society and business are inter-related to each other. Without

business, society cannot run and without society, business cannot
run.

Social responsibility refers to the obligations (of industry) to peruse

those policies, to make those decisions or to flow those license of
action which are desirable.

Industrial social responsibility refers to the obligation of an

industry to seek action that protect and improve the welfare of
society along with its own interests.

So, we can say that, the time when industry could be regard as “a
penny in the slot machine” is passing. Either capitalist must accept a
direct burden of industrial service or it must be soldered out of
industry.
63:
 Social Responsibility performed by the industry towards
various parties of the society:

Business has some responsibility towards society. The social

Responsibility towards various parties of the society performed by
the industry is discussed below:

1. Responsibility towards employee:

No business organization can run its operation without the

cooperation of employees. So the business firms have some
responsibility to the employees is mentioned bellow:

a) Employee recreation program.

b) Compensation for accident.
c) Transport facilities.
d) Seek and maternity leave.
e) Retirement benefits
f) Incentives bonus
g) Equity in work place
h) Safety in work place

These are the responsible factors towards employees.

2. Responsibility towards human resource development:

Human resource comes from society in a business organization.

Without human resource a business organization cannot. A business
cannot run only with capital, its needs human resource for the
development of business. Responsibility towards human resource
development is stated bellow:

a) Job opportunity
b) Safety measures
c) Training of employees
64:
d) Better working condition

For the development of human resource the industry must consider

this responsibility.

3. Product development:

Product development is the important aim of industry. An industry

expects more units of production with less cost. It must be essential
to develop the equality of the product. The major responsibility of
product development is stated bellow:

a) Product safety by packaging

b) Consider consumer voice
c) Product choice

To develop the product, an industry must consider this

responsibility.

4. Community involvement:

Though a business performs his activities within the society, so it

must consider community welfare stated bellow:

a) Scholarship to meritorious but poor students

b) Support to educational institution
c) Employment to the deprived group
d) Aid and hospital.

5. Consumer protection:
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Consumers are the main stakeholder for a business organization.
The responsibility to business is stated bellow:

a) Responsibility to consumer complains

b) Fair and advertisement
c) Maintaining good relationship with customer
d) The right to be heard about the opportunity
e) The right to choose variety of products

6. Physical environment:

Our environment is always polluted by waste of industrial

organization. So the industry has some responsibility to the physical
environment which is mentioned bellow-

a) Clean water
b) Natural beauty
c) Clear air
d) Prevention of energy
e) Prevention of land pollution

7. Responsibility towards suppliers:

Supplier is the major part of business. Supplier helps to produce

goods by which is supplied. So the industry has some responsibility
to the suppliers.

a) Timely paid
b) Reasonable payment
c) Considerable demand for supply
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8. Responsibility towards Govt.:

Business firms must obey the laws of central, state and local
government. It should look to the govt. for support, substance,
encouragement and guidance cause govt. is as a big brother. A few
responsibilities of industry towards govt. are-

a) Tax payment
b) Voluntary programs
c) Proving information
d) Govt. contracts
e) Govt. service
f) Political activities

9. Responsibility towards creditors:

Business organization also has some responsibility to the people

who invest money or creditor. Some responsibility of creditors is
given bellow:

a) Proper management of funds

b) Access to information
c) Executive compensation

10. Others:

There are some other responsibilities as follows:

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a) Cultural development
b) Participation in mass learning
c) Contribution at the time of natural calamity and natural
disaster

 Social relations in industry:

Sociology concerned with the social relations of industry and their

bearing on industrial phenomena, as productivity, morale,
functional authority etc. The social relations in industry may be
divided into two parts-

1. Internal relation:
2. External relation:

The social relation can be clear by the following figure:

Internal relation

Formal Informal
Mixed

Organizational Statutory Individual Group

Socio functional
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External relation

Other firms, society, government, customers, educational

bodies, community etc.

Figure: Social relation in industry

1. Internal relation:

Internal relation is that relation between management and

employee. This relation exist within industry itself whether they
concerns management, operatives or bank.

The Internal relation may be sub-divided into three parts-

a) Formal relation:

Formal relations are those immediately arising from the

performance of one’s approved duties, which may be managerial.

b) Informal relation:

Informal relation is those that spontaneously arise everywhere in

industry. This may exist in individual or group.

c) Mixed relation:
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Mixed relation are those described by some writers as socio-
technical or socio-functional relations.

2. External relation:

External relation are those that exist between the firms and
external persons, intuitions and societies as the public, customers,
govt., the community in which the firm operate the banks, schools
and other organizations with which the firm has dealings.