WORK IN INDUSTRIAL SOCIETY

 INTRODUCTION 

Different countries had different experiences regarding industrial growth. But since the change associated with industrialization has been continuous the lag in some industries could not be felt as other industries developed very fret. Growth of textile industries we followed by transport development, heavy industry and more sophisticated enterprise such as metal working, chemicals and electronics. In most cases, substantial advances in agricultural output or increased foreign trade or both have been concomitants of industrial development. 

Industrialization is the system of production that had arisen from the steady development, study and use of scientific knowledge. It is based on the division of labour and on specialization and uses mechanical, chemical and power driven, as well as organizational and intellectual, aids in production. The primary objective of this method of organizing economic life, which had its genesis in the mid 18th century, has been to reduce the real cost per unit, of producing goods and services. The resulting increase in output per man hour has been unimagined. Today a worker can produce as much in half an hour as the traditional worker used to produce in a whole working day some hundred years ago. The ever changing areas of technology and the society that produces technical change are manifestations of continuing growth of complexity in human specialization in all matters relating to economic life. What begins as mastery of basic mechanical technique ends by creating both the demands and the resources for a revolution in mass education and in science — a change in the 'quality' of the labour force.

DEVELOPMENT OF INDUSTRY 

The phrase "industrial revolution" has long been used to identify the period roughly from 1750 to 1825, during which the accelerated application of mechanical principles including steam power, to manufacturing in Great Britain produced an identifiable change in economic structure and growth. Workers were grouped together in factories using concentrations of capital equipment greater in cost and more efficient in operation. These factories utilized a few mechanical innovations (machines) primarily in textiles and iron manufacturing which with the application of the steam engine produced goods on the large scale. With further differentiation and specialization of labour and scientific calculation of total cost of production it was possible to determine the margin of profit and accordingly the selling prices of the products were fixed. This entailed a large profit on the part of entrepreneurs. The -whole factory system was considered a highly profitable venture in economic market. Earlier handicraft technique of manufacturing either through guild system or putting out system did not work as these techniques were slow and time consuming. Domestic system of production also failed in absence of local supervision of work. Further foreign trade increased. There were demands from overseas customers for products which could not be manufactured under rigid and slow guild system. The raw materials also were to be imported from outside. All these factors led to the development of a new system — factory system — which required entrepreneurs on one hand i.e. those who could invest a huge sum of money in manufacturing and wait for its return - a long term project and a large number of consumers on the other hand. Since the cost of production could be reduced to a great extent by using machines and a large number of labour, even the middle and lower classes could also buy these products. Thus the expansion of market, ready or steady demands for factory products, the government's support by giving permanent orders for coins and military uniforms etc. gave impetus to the growth of factory system during 1750 and 1825.

Since industry cannot grow without markets, and sources of capital, similarities in the economic "preconditions" for a industrial development have been identified. These bases for the development of an industrial sector include (a) an available labour force, (b) markets for finished products, (c) access to raw materials (whether at home or through foreign trade) a source of investment funds (whether from the wealth and savings of the private sector, from the accumulation of the public sector or from abroad), (d) and, finally access to technology. The last has in every case required the extensive development of mass education, because access to technology on a large scale means ultimately access to science. In the long run, successful industrialization has been achieved in these nations which not only realized the preconditions but also were able to adapt to changes in technology which required extensive organisational flexibility at all levels, (e) Political stability is also one of the condition to encourage industrialization. U.K. and U.S.A experienced their industrial development under conditions of political and economic freedom that •were based on rational and calculable law. Germany, Russia and Japan also in the 19th and 20th centuries developed economically and this indicated that the basic economic preconditions for industrialization are to some extent independent of political framework. Along with industralization there were other characteristic phenomena which were directly associated with it. Among these are : 

a) Urbanization : Another economic consequence of industrial development is urbanization. Cities were existed since antiquity as trade financial and administrative centres. But until the industrial revolution, urban size was characterized by substantial stability — enough for example city wall. With industrial revolution the relative stable relationship between town and country vanished and the industrial conurbation began to 42 spread. Factories brought people together and the principle of proximity brought factories together, it found convenient to be near a labour force, skilled mechanics sources of parts of machinery. Where transportation could bring raw materials together with markets for the eventual products, new cities and factory zones grew up., changing the demographic maps of each area to which industrial growth came. In India industrialization caused many old cities to prosper while new-cities came up. 

Population growth : Due to the miraculous development of medical sciences there was control possible over deaths, resulted in decline of death rate. This resulted in higher birth rates and consequently population growth. 

International trade : Since rising productivity creates markets and rising productivity has been the hall mark of world industrialization, the connection between the great increase in world trade which followed the industrial revolution and the rise of industry has been well established. Import of raw materials and export of finished foods became common among the developed nations. Widening markets are a stimulus to industrial investment. By 1913 the United States produced 35.8 percent of the world's manufactured goods and the Unites States, Germany and U.K., France and Russia between them produced 77.4 percent of the total world's manufactures and occupied the centre of world trade. 

Migration of Labour : Not only from rural areas to urban areas but also form one country to other working population shifted to a large extent. In fact availability of skilled labour is the basic condition for further development of industries.

CONDITIONS FOR INDUSTRIALIZATION 

Industrialization, in the strict sense of the term entails the extensive use of inanimate sources of power in the production of economic goods and services. Even agriculture (mechanized) and services like transportation and communication are also included in it. It is true of course that manufacturing is an essential ingredient as the machines and instruments used in the production of raw materials or services are likely to be factory produced. The term 'industrialization is often used in a broader sense as equivalent to any form of economic modernization. Wilbert Moore has emphasized more on social aspects of industrialization but basically all the circumstances under •which industrialization and broader economic development generally take place may appropriately start with those most clearly economic in character.  Industrialization, involves, for example extensive remobilization of the "factors of production" including new supplies of capital, new power sources "embodied technology" in capital goods and equipment and workers with skills that are different from those required in preindustrial economy. But behind these economic inputs are the organization of capital markets or the investment decisions of the state, a network of relationships between suppliers and manufacturers, an external or internal training system for workers and so on. It is a fact that underdeveloped areas suffer from a shortage of capital and generally, a surplus of labour. The problem is to tap both "productive and unproductive savings. The following are the conditions of industrialization in brief.

1. Accumulation of Capital 

Capital is the first requirement or condition of industrialization. Unless there is sufficient capital or fund for investment in factories, equipments machines and labour, manufacturing cannot be started. For the formation of capital there must be agricultural surplus. Labour supplies are likely to represent underemployment in agriculture, but the actual diversion of labour to industrial employment is likely to require a reorganization of agriculture. Improved efficiency of labour in agriculture and some actual increase in farm output are needed to supply the needs for food and fibre of those who will not be engaged in primary production. The supplies of workers for industry, although, numerically ample are quite unlikely to have the necessary skills — forget the attitudes and habits — for industrial -work. According to Wilbert Moore, some investment in training will be a requisite for new productive system. Countries which were rich in territory and resources or else engaged in extensive international trade, in capital, raw materials and products could grow successfully economically. 

2. Availability of raw materials 

Though this is the most important but not essential requirement. Raw material in the sense of minerals can be imported e.g. Japan very poor in natural mineral resources have become the most industrially developed country because it could import them. 

3. A committed labour force 

A committed labour force is also another requirement. It means that workers must accept the needs of industry and cooperate fully to meet thedemands of production. The -workers must be ready to adjust with the speed of machines, supervision, the wage structure and above all mobility. A labour in industrial society must be geographically and skillwise mobile, he must also be able to adapt to new technology.

4. Large expanded market 

Economically, in order to sustain, there must be demand for large scale production. It must also be expanding for future growth. 

5. Political stability 

As earlier, has been mentioned political freedom of making economic decisions as well as stable government is the important requirement for the growth of industries. Firm government policies support the industries. Contracts or financial transactions must be legally bound and violators must be punished. 

6. Entrepreneurial ability 

David McClleland has argued that desire for economic development is necessary for any kind of material growth. The entrepreneur is considered so important that he becomes a factor of production like land labour and capital. 

7. Differentiation and specialization of labour 

The new technology which signifies division of the total production process into a number of simple stages or steps to each of which a specialized group of workers is involved, is the most important technical condition of industrial growth. There must also be a systematic structure based on authority and specialized skills to make appropriate decisions. 

8. Institutional structures

 As to the requisite organizational and institutional structure, we may note some further normative conditions for industrialization. Property rights must be transferable if land, raw materials and other material factors of production are to be converted to new uses and passed, say, from supplier to manufacturer to consumer. Transfers of power over and responsibility for the materials of production are very necessary. Labour too must be transferable. This means the establishment of a "labour market" and a system of financial and other rewards to induce workers to move from one economic sector to another, one employer to another, one skill level to another and so on. At least fixed hereditary assignment of economic roles must somehow be broken down in which individuals would be free for other types of activities. Eventually, a whole new structure of social placement and relative status must be established however, this structure may be viewed as a consequence rather than a condition of economic modernization. Contractual system must be fair, and legally binding. There must be restraints on monopolies or other competitive strategies. Industry, in particular, commonly involves assembling the factors of production over considerable distances and over considerable periods of time. Systems of credit, stabilization of currency and its rates of exchange and state fiscal policies of some reliability are thus necessary. In newly developing countries of today, the State is likely to play a prominent, overt and often dominant part in developmental policies and their concrete implementation State can only have legal and financial control over new developments both in social and economic sectors.

9. Motives and values 

It is also true that industrialization and other measures of economic development have become instruments of national policy in virtually the entire world. This brings the question — What should be the motive of those who join industry or any other economically profitable work. Secondly what are their values? Classical economists say that individuals would act rationally in ways designed to maximize their own material self interests. Though other interests beyond basic needs are not explained, these motivational assumptions are quite clear in understanding that once the possibility of economic betterment is widespread, discontent with poverty also become widespread. Then individuals themselves would work hard. Thus achievement orientation as McClleland has emphasized is the main motive behind economic prosperity.