Name: Nasar Ullah

Roll No. 20
M.Sc (Sociology)
Final Exams
8TH Semester
 Q. No. 1
Answer
LABOUR POLICY 2010

Social and economic well-being of the people is one of the principal objectives of the
present people’s government. Labour Policy, like policies in other fields, should also aim in
attaining the objectives in a manner best suited to the resources of the country and the present
state of economy. There is an urgent need to revitalize the economy, required sustained
efforts, to increase the level of productivity, promotion of investment and maximization of
employment. There is an equally genuine requirement to create among workers and
employers, a better awareness of their obligations to the national objectives stated above. At
the same time, the Government recognizes that workers and employers must enjoy reasonable
benefits as can be sustained by the economy without suffering set-backs. Keeping these
priorities in view, the Government considers that a balanced labour policy should be based on
the following objectives:-

- Workers’ right to form unions and unions should be protected and an institutional
framework be made available to foster close cooperation between workers and
employers at establishment level.

- Equitable adjustment of rights between workers and employers should be ensured

in an atmosphere of harmony, mutually beneficial to the workers and the
management.

- Consultations between workers and employers on matters of interest to the

establishment and welfare of workers should be made more effective.

- Adequate security of jobs should be available to the workers and there should be
expeditious redressal of their grievances.

- Conditions should be created that workers and employers are committed in

enhancing the labour productivity.

- Promotion to higher jobs be ensured at all levels based on suitability and merit and
for this purpose arrangements should be made for in-service training facilities.

- Facilities for proper matching of job opportunities and the job seekers be
strengthened and standard procedures be streamlined.

- Social insurance schemes to be further strengthened.

- Just and humane conditions of work be guaranteed to all workers.

- Forced labour in all its forms to be eliminated.

- Provisions relating to the employment of children to be strictly adhered to and be

enforced.
2. The Labour Policy has accordingly been divided into four parts, i.e.

i) Legal Frame Work;

ii) Advocacy: Rights of Workers and Employers;

iii) Skill Development and Employment;

iv) Manpower Export.

LEGAL FRAME WORK

3. The Government is of the considered view that an atmosphere of industrial

peace and understanding is the need of the hour. The Government would encourage and assist
the process with volition of both workers and employers. It will protect legitimate rights and
interests of workers and employers and minimize the areas of friction which compel either of
them to agitate. The question of unwilling and reluctant workers has, however, remained a
source of concern equally for the Government, employers and trade unions’ leadership. The
Government is committed for the welfare and protection of workers

4. The unions having the support of sizeable number of members shall be,
recognized, given due protection, and provided all facilities to further the interests of their
members. Only those unions shall be recognized who to their credit have the support, of a
minimum of 15 per cent of total membership of the establishment, which they represent. The
rest of the unions by default shall stand dissolved.

5. The institutions of Shop Stewards, Work Councils and Joint Management

Boards which have up till now remained dormant, shall be encouraged and re-activated for
their rightful participation in improving labour-management relations at plant level.

6. The Government repealed the Industrial Relation Ordinance 2002 through the
Industrial Relations Act 2008. Now a new law in conformity with the International labour
Standards will be promulgated. Section 27B of the Banking

Company Ordinance shall be repealed.

Rationalization and Consolidation of Labour Laws.

7. The Labour Laws are quite complex, over-lapping, anomalous, and at times
render the subject matter difficult to understand, besides creating confusion for those who deal
with them. Further, the penalties prescribed for offences and non-compliance are very low,
since some of these laws were framed during pre-independence period. The Labour Laws will
be consolidated and rationalized into five core laws, viz;

i) Laws relating to industrial relations.

ii) Laws relating to employment and service conditions.

iii) Laws relating to occupational safety and health.

iv) Laws relating to human resource development.

 v) Laws relating to labour welfare and social security.

Universal/Voluntary Coverage

8. A comprehensive Social Insurance for old-age benefits and health services

will be introduced on self-registration/voluntary basis to allow all workers in formal and
informal sector of economy, including self employed persons, to benefit from it.

Issuance of Smart Cards

9. The registration of workers will be linked with the Smart Cards being
issued by NADRA. All particulars of the workers with respect to name, employment
history, education, skills will be placed on the Chip of the Smart Card. This card will
also serve the purpose of registration under Social Security, EOBI and workers Welfare
Fund and will be a source of Data Bank of labour force for re-skilling of workforce with
respect to enhancement of employment within the country and overseas.

Wages

10. The Government is committed to implement the system of minimum wage as a

fundamental element of labour protection, and proposes to continue with the existing tripartite
minimum wage determination arrangements. An independent National Wage Commission will
be set up and the government will establish a Working Group to make detailed
recommendations for the purpose of specific functions and operational arrangements for such
a Commission, including its technical and secretarial support requirements and its relations
with provincial wage fixing authorities.
11. The deliberations of the Working Group will involve close cooperation with
workers’ and employers’ organizations, and will result in the preparation of a detailed policy
paper for the development and implementation of national wage policy, including minimum
wages, in the medium to longer term.

12. In line with Manifesto of the Pakistan Peoples Party the Government shall
gradually enhance wages of the workers. The wages shall continue to be reviewed at least
once in a year and minimum gross emoluments will be progressively raised.

13. The minimum wage was raised from Rs. 4600/- to Rs. 6000/- in the year
2008, which will be further enhanced to Rs.7000/- there are increase of about 17%.

14. All industrial, commercial and other establishments registered under any
law shall pay wages to the employees through Cheque/Bank transfer.

Women Empowerment and Gender Equality

15. International Labor Organization’s project Women Employment Concerns and

Working Condition in Pakistan (WEC-PK) funded by CIDA has been Implemented in
collaboration of Ministry of Labour and Manpower to enhance the quality and number of
women employment in Pakistan with ultimate goal of economic empowerment of women in
rural and urban areas. A number of productive programs have been completed under this
project aimed at creating conducive working environment for women such as Sensitization
and capacity building of policy makers and implementing partners in public and private
sectors; Direct Assistance to Women in getting Decent Employment; Promoting Gender
Equality in Private Sector Employment in Pakistan; and promoting Women's participation and
Leadership in Trade Unions in Pakistan

16. Another project titled “Towards Gender Parity” was initiated in January 2010 in
collaboration of Ministry of Labour for the period of one year. The focus of the project
activities would be on capacity building of stake holders on relevant areas and International
Labour Standards (ILS); Establishment of coordination mechanism among partners to
monitor, learn and share experience; Promotion of gender- responsive data collection, analysis
and reporting through a joint effort of all stake holders; strategy for gender equality in skill
development and small and medium enterprise program; strategy for implementation of
Women Empowerment Act; Advocacy for the implementation of national policy of Home-
based Workers and pilot activities for integration of HBWs into main stream.
Women Workers

17. Women workers will benefit from the application of ILO Convention on Equal
Remuneration, 1951 (No. 100), ratified by Pakistan in 2001. Minimum and above-minimum
wages will be ensured on the basis of equal pay for equal work, and equal pay for work of
equal value, as between men and women, in accordance with Pakistan’s obligations under ILO
Conventions 100 and 111 concerned with equality and non-discrimination respectively.

18. Women will also benefit from better information concerning their working
conditions and arrangements in the informal economy, from improved maternity
arrangements, codes of conduct relating to sexual harassment and, where possible, day care
arrangements for their children.

19. The Government is committed to providing women with equal opportunities for
employment and will re-examine existing legislation to ensure that women are not denied
access to suitable jobs that are arising due to Pakistan’s changing labour markets.

Young Persons

20. Workers between the ages of 14 and less than 18 years will not be engaged in
hazardous working conditions and other working environments that adversely affect their
physical and moral development. They will also be provided greater access to education and
training, particularly training, tailored to identified labour market needs.

21. Children and young persons will be withdrawn and prevented from hazardous
nature as, for example, mining, tanneries, brick kilns, construction, and glass bangles etc.
Special programmes will be designed to focus young domestic workers employed in private
households. Payment of minimum wage will also be ensured to the young persons.

Mine Workers

22. The majority of workers in Pakistan’s mining industry are employed on a

contract basis, often through a somewhat complicated system of sub-contracting making it
difficult to identify the actual employer. Mine workers are covered by special legislation that
place them outside mainstream labour legislation.
23. Mine workers, whether contract or permanent, will be provided with same
protection as other workers. They will benefit from minimum wage payments, access to social
security and improved safety and health in their workplaces.

Eradication of Bonded Labour

24. The Government shall abolish bonded labour in all its forms and shall make
appropriate amendments in law to make it more stringent, strictly implemented and safeguard
the interest of workers who have hither to remained under forced labour.

Construction Labour

25. Construction industry is the back-bone of all the development activities and is
estimated to employ more than two million workers. Since the sector is witnessing rapid
expansion, health, safety and occupational hazards in this industry are likely to pose new
challenges and problems. In order to guard against occupational hazards and to provide safe
working conditions for those employed in this vital sector of the economy, the Government
shall enact suitable legislation to ensure health and safety of construction workers and to
provide benefits available to other formal sector workers such as Workmen’s Compensation,
Social Security, Old-age Pension etc.

Contractual Employees.

26. The Government has already started the process to regularize/confirm

contract employees. All contract employees in public sector will be
regularized/confirmed within shortest possible time.

Child Labour

27. The Government shall take legal as well as other measures to regulate and
control the employment of children in certain occupations and processes considered hazardous
and injurious to their health.

Agriculture Labour

28. The agriculture sector is being rapidly mechanized and requires technical skill.
Resultantly, the unskilled workers of this sector are becoming un-employed. Moreover the
labour laws are not applicable to this sector, therefore, the agriculture labour force remain
deprived of the benefits available under various welfare legislations to their counterparts in the
industrial establishments.

The Government, in the first instance, proposes to extend the coverage of Workmen’s
Compensation Act, 1923, to provide compensation in case of injury as well as death to
workers of mechanized farms in the rural sector.

Informal Economy Workers

29. Extending labour protection to the country’s large and diverse informal
economy is a major challenge. The informal economy supports millions of people across a
large geographic area, undertaking a wide variety of low-paid, low-productivity jobs, under
working conditions that are frequently harsh, unhealthy, and hazardous. Informal economy
workers are not covered by labour laws. Government is planning to make it mandatory for the
labour administration to take the initiative to see how it can best reach out to such workers and
provide them with basic protection through the provision of advisory services, based on a
‘labour extension’ approach.

30. Workers in the informal economy, including home workers and domestic
workers, will benefit from improved safety and health arrangements, access to social security
arrangements, and the payment of minimum wages, where an employee- employer relation is
evident. The employment of children less than 14 years will be eliminated, and the
employment of those between the ages of 14 and less than 18 years will be strictly controlled,
through a combination of stronger legislation and the introduction of labour extension
services.

Health and Safety

31. A Tripartite Council on Health and Safety be set-up to identify health and
safety hazards for workers of all economic sectors and to make recommendations for safety
measures on a continuous basis.
 Question No. 2
Answer
Industrial Development in Pakistan
At the time of independence, Pakistan has inherited only 34 industrial units out of 921
industrial units in subcontinent.  They were cotton textile, cigarettes, sugar, rice husking,
cotton ginning and flour milling industries; and together they contributed only 7% of GDP and
employed a little over 26,000 employees.
Industrial development or history of industries in Pakistan can be divided into six phases:
Phase 1 (1947-1957):
1.       This phase started from 1947 ended to 1958.  During this period, the country was newly
born and politically immature.  During this 11-years period, 8 prime ministers came into
power.  Not a single prime minister was strong enough to pursue the industrial policy well.
2.       During this period, the policy emphasis was on import substitution.
3.       Government had established a committee to formulate industrial policy.
4.       This committee emphasized on manufacturing industries, reduction of imports, and net
social and economic advantages to the country.
5.       Pakistan Industrial Finance Corporation (PIFC) and Pakistan Industrial Credit and
Investment Corporation (PICIC) were established in 1948.
6.       To create skilled labour, a Swedish-Pak Institute of Technology was established in
1955.
7.       Pakistan Industrial Technical Assistance Centre (PITAC) was established in 1956.
Phase 2 (1958-1969):
1.       In 1958, a military government of Ayub came into power in Pakistan and announces a
new industrial policy in 1959.  This phase witnessed the massive industrial growth in the
country.
2.       This industrial policy emphasis on private sector and the development of agro-based
industries.
3.       During this period, the government gave emphasis on intermediate and capital goods,
i.e., electrical, chemical, machine tools, etc.
4.       Various types of funds were established to promote the industrial development in the
country.
Phase 3 (1973-1977):
1.       During this period, a new democratic government of Bhutto came into power and
adopted the principles of mixed economy.
2.       Government ruthlessly nationalized 34 industrial units belonging to the following basic
units:
(a)    Vegetable ghee and oil industries (26 industrial units)
(b)   Shipping industry
(c)    Iron and steel industries
(d)   Basic metal industries
(e)   Heavy engineering industries
(f)     Assembly and manufacture of motor vehicles
(g)    Tractor plants
(h)   Heavy and basic chemicals
(i)      Petro-chemical industries
(j)     Cement industries
(k)    Public utilities including electric generations, gas and oil industries.
3.       The nationalized industries were put under the management of Board of Industrial
Management (BIM).
4.       Pakistan Industrial Development Corporation (PIDC) was established.
5.       Other reforms were taken by the government were:
(a)    Labour reforms
(b)   Abolition of bonus voucher system
(c)    Reduction of sales tax on imported items
(d)   Revision of import policy
(e)   Establishment of industrial units in less developed / rural areas.
Phase 4 (1977-1988):
1.       A new martial law government by Zia came into power in 1977.  The new military
government in 1977 announced the reversal of previous government’s nationalization policy
and introduced a new industrial policy.
2.       The federal government offered for the transfer of shares of nationalized industries to
their former owners, under Economic Reforms Order 1978, and thus the new open way for
denationalization of industries.
3.       Government announced tax holidays and revised import policy.
4.       To boost private industrial development, following measures were taken:
(a)    Reduction in interest charges by banks to 12.5% on all fixed investments.
(b)   Removal of taxes on issuance of bonus shares.
(c)    Fixing standard rebates of excise duty on additional 17 items.
Phase 5 (1988-2008):
1.       During the first half of this phase, i.e., 1988 to 1999 the country had faced worst
political conditions in the history of Pakistan.
2.       Two governments had come into power for twice, i.e., Benazir’s Government and
Nawaz’s Government, and not even governed for more than three years.  Therefore, the
industrial policy was never the top priority of those two governments.
3.       Nawaz Sharif, however, lightly emphasized on infrastructural development in Pakistan,
but interrupted by the bloodless coup d’etat by Musharraf in 1999.  Although Nawaz had
adopted considerable economic policies, i.e., deletion policy, deregulation policy and
privatization policy, which were also pursued by succeeding governments.  Much of these
policies were influenced by IMF.
4.       During the second half of this phase (i.e., 2000-2008), industries of Pakistan faced
greater influence of cheaper goods imported under WTO agreements.
5.       The highlights of industrial policy of this phase are as below:
(a)    Deletion Policy: Although this policy was announced during Phase 4 in
1987 but also pursued by the governments in later phase.  The objective of
deletion policy was to obtain self-reliance in engineering sector.
(b)    Deregulation Policy: Almost the whole industrial sector was exempted
from the requirement of government sanctions except:
                                                            (i)      Arms and ammunitions
                                                          (ii)      Security printing, currency
and mint
                                                         (iii)      High explosives
                                                        (iv)      Radioactive substances
(c)     Privatization Policy: To reduce the financial burden imposed on
government and to reduce slack utilization of resources, privatization policy
was adopted and is still continued.  The main objectives of privatization were
to improve the overall performance of state-owned industries and to promote
healthy competition.

Agriculture – social status and economic growth

Pakistan is an agriculture-based economy. The bulk of its population earns subsistence from
farming, and livestock. Generally, low income countries have agriculture-based economies
and the same holds good for Pakistan.
Due to peculiar socio-economic reasons, Pakistanis take pride in agriculture. This is evident
from the fact that a large majority of the parliamentarians of the country hail from agricultural
backgrounds, and agriculturists/landowners also enjoy higher social prestige, especially in
rural settings. This becomes quite a dominant trendsetter in a society where 45% of the
population earns its livelihood from agriculture.1
In order to transform their industries and increase income levels, such countries need
restructuring to expand their industrial base. Examples of some countries that were able to
transform their socio-economic conditions over the past few decades are: Ethiopia – one of the
most impoverished countries of the 20th century – has ventured into major reforms and
through active public-private investments has transformed its agriculture-based economy into
manufacturing. The growth rate of Ethiopia over the last two decades has been more than 7%.
The major exports of Cambodia, once an agricultural country, are textiles (70%) and these are
fuelling a GDP growth rate of 7%.2 Vietnam, has altered its economy from agriculture (rice
and coffee) to basic industries (textiles, footwear) and is now also an exporter of electrical and
electronic products. Thus, economic transformation is the key to economic growth and it can
only be achieved through focused, intentional and sustained efforts coupled with supportive
policy interventions.
Additionally, we can also categorize various countries on the basis of their resource pool of
soft skills. Various researchers have identified Vietnam as the top most destination in terms of
relocation of industries from China. These studies were published before an agreement was
reached between the USA and China. Soft skills include an evaluation of commercial returns,
human resource, regulatory regime, ease of doing business, visas, cost of living, tourism
facilities and other benchmarks for international investors.
Private companies have the option of choosing from numerous countries. Therefore, in order
to attract Foreign Direct Investment (FDI), countries need to make their investment regimes
competitive by providing something extra or special.
Pakistan: the problem lies in low FDI and low savings rates
Normally two types of investments are made by international investors: short term in Treasury
bills, the stock exchange and bonds and long term in the shape of FDIs. Over the past two
years, Pakistan has attracted a larger sum of investment in its treasury market. The primary
reason being high discount rates, which have been unprecedently high during this period. This
type of investment is quick to come and even faster to go. The moment Pakistan reduced its
discount rate the hot money started moving out (as per State Bank of Pakistan, out of a total
$3.4bn investment in T-bills, about $1.74 bn were withdrawn in March 2020).
Pakistan has a Gross Savings Rate of 5.2 % (2019) while this is 45% in China, 32% in India
and 27% in Bangladesh.3 The savings rate is further translated into investment. The other
source of investment is private sector lending by banks. In Pakistan, due to a high policy rate,
private sector lending is small. That too has been decreasing over the past few years. 4 The
Public Sector Development Programme (PSDP) spending has also been small, considering the
size of the country, and remains lower than its allocations. A low savings rate does not leave
much room for investment and with a high discount rate of 9% (which has recently been
lowered from 13.25%, where it was fixed in July 2019) the bank option is also not that viable.
FDIs seem to be the only logical option to follow. FDIs provide financial support as well as
economic stimulus. The push factor of FDIs is always many times greater than its financial
benefits as this translates into transfer of technology, HR training, positive externalities and,
most importantly, it helps in completing the production cycle. The substantial role that US
money and technology played in the economic development of Chins is a valid example of
this process. As the dictum of ‘export led growth’ holds, there is need to attract investment in
the export sectors of Pakistan.
In a nutshell, Pakistan neither has indigenous resources to expand its production curve, nor is
it using the international windows available to expand its manufacturing base. Analysis of
South East Asian countries show that while investment numbers may appear small, but the
spinoff effect of FDIs has been phenomenal. It is this cumulative impact that compels
countries to always be on the lookout for FDIs.
Impact of industrial operations on economy of Pakistan
Industrialization plays a vital role in the economic development of underdeveloped countries.
As the historical record shows, the developed countries of the world broke the vicious cycle of
poverty by industrializing, rather than focusing on agricultural or the production of national
resources.
Currently, Pakistan, as a developing country, wants to achieve a higher standard of living for
its people. For this reason, it is pursuing policies that support privatization and deregulation of
the economy.
Industry plays a complex role in economic development, but these are some of its most
important effects.
Industrialization allows countries to make optimal use of their scarce resources. It increases
the quantity and quality of goods manufactured in that company, which makes a larger
contribution to gross national product (GNP).
In an industrialized society, workers' labor is worth more. In addition, because of higher
productivity, individual income increases. This rise in income raises the standard of living for
ordinary people.
A nation that depends on the production and export of raw material alone cannot achieve a
rapid rate of economic growth. The restricted and fluctuating demand for agricultural products
and raw materials—along with the uncertainties of nature itself—hampers economic progress
and leads to an unstable economy. Industrialization is the best way of providing economic
stability.
Industrialization changes the pattern of foreign trade in the country. It increases the export of
manufactured goods, which are more profitable in foreign exchange. But at the same time,
processing the raw material at home curtails the import of goods, thereby helping to conserve
foreign exchange. The export-orientation and import-substitution effects of industrialization
help to improve the balance of payments. In Pakistan in particular, the exports of semi-
manufactured and manufactured goods resulted in favorable trade. Industrialization provides
increased employment opportunities in small- and large-scale industries. In an industrial
economy, industry absorbs underemployed and unemployed workers from the agricultural
sector, thereby increasing the income of the community.
Industrialization promotes specialized labor. This division of work increases the marginal
value product of labor. In other words, specialized labor is more profitable. The income of a
worker in the industrial sector will be higher on average than that of a worker in the
agricultural sector.
 Q No. 3

Answer

What is a Sociologist?
Sociology is the study of how society affects people, and how people affect society. The

dictionary defines sociology as "the systematic study of society and social interaction". The

word “sociology” comes from the Latin word socius (companion) and the Greek word logos

(speech or reason), which when put together mean “reasoned speech about companionship”.

Sociologists use a variety of methods to study society and social behaviour. They examine

groups, cultures, organizations, social institutions, and processes that people develop and apply

these to the real world. Most sociologists work in research organizations, colleges and

universities, regional and federal government, and consulting service firms.

Educators, lawmakers, administrators, and social workers use sociological research to solve

social problems and formulate public policy.

Industrial Sociology

According to Miller and Form, “Industrial Sociology is a substantive area of general

sociology which might more accurately be termed the sociology of work organisations or

sociology of economy”.

According to J H Smith, “Industrial Sociology is concerned with industry (or any form of

work organisation) as a social system, including those factors (technical, emotional, political)

which affect the structure, the function and the changes in that system”.

CONCEPT OF INDUSTRIAL SOCIOLOGY

Sociology is the study of the collective behaviour of people together in society as a whole. It

would explain the reasons for why people behave the way they tend to behave. And when our
economies turned into industrial economy urbanization began with the competition.

Industrialization is both boon and bane for our society. Industrialization brought a lot of

development alongside class divisions among the people. And so has the social problems that

have arisen with all the complexities.

Industrial sociology does not merely see them as an economic organization but more like a

social or human organization. The concept covers how people communicate with each other,

who do they communicate at the times of distress, how the community

Emergence and Evolution

With the rise of industrialisation rose interest in socio-economic aspects of industrial societies.

Industrial sociology has blurred contour and as its subject matter has not been delimited, it

often crosses over into the subject matter of Economics. Adam Smith addressed the

philosophical issues and moral sentiments attached to economic activities. Later he turned his

attention to the social (macroscopic) and organisational (microscopic) roles in society

of capitalist and labours. He regarded effective mobilisation and utilisation of labour as the

true wealth of a nation instead of material things such as silver and gold. Smith’s work on free

trade, minimal government interference, the role of differentiated divisions of labour, the rise

of ‘factory system’ laid out the basics for modern industrial sociological research: economic

organisation, manager’s and worker’s waves, economic exchange and trade, the correlation

between technology and division of labour, the distributive effect of industrialisation on

national stratification system, etc.

Charles Dickens’ literary treatment of socio-political life in early 19th century Britain has also

aided sociologists. Post Elton May’s study, industrial sociology rapidly grew as an area of

theoretical research and not just practical application to aid industrialist to increase the

productivity of labour.

Industrial Human/Social Relations

Industries form human interactions and relations across fields. These social relations can be

categorised in the following ways-

 Internal Relations– the social or interpersonal relations between individuals within

the same industry. For example, the owner, the managerial staff and the labourers of a

single industrial complex. These can further be divided into formal, informal and mixed.

1. Formal Relations: relations that form between individuals by virtue of their role or

status in the industry. These relations are strictly non-personal and have no emotions

attached. For example, the relation between boss and employee or two co-workers who

are not friends.

2. Informal Relations: the personal relations within a workspace which operate

according to emotions and passions. These may develop between individuals or groups.

For example, two co-workers may be friends or workers may get divided into factions

where one fraction has enmity against the other faction.

3. Mixed Relations: relations which are neither completely formal not completely

informal fall in this category. For example, a party after work between the managerial

staff and labourers would fall in this category.

 External Relations: a factory, mill or industry’s relation with other industries,

government and social organisations are categorised as external relations. Industries

need a licence from the government, advertisements with the media and recruitment

from educational institutions. Their relations with all these institutions are external

relations.

Scope of Industrial Sociology

Industrial Sociology is an applied discipline. The following things come under its scope. This

list is not exhaustive.

1. It studies the process of industrialisation historically.

 2. It looks at the influence of physical and social environment on industrial development

and vice versa.

3. It studies the role of government and state in industrial management and development

and helps in the formation of government policies in relation to industries, the education

system for a better workforce, loans to industries, etc.

4. Deals with three different organisations of the workplace which are conceived as

distinguishable but interrelated namely management organisation, an informal

organisation of workers and union organisation.

 Management Organisation caters to the relationship between management and

workers. It includes policies, social programs, welfare structures, working on the

management, etc. It deals with the formal aspect of the relationship.

 Informal Organisations are relationships voluntarily formed between workers

without any institutional control. These relationships can manifest themselves in the

form of cliques, gangs, friendship groups, bands, etc. These informal groups determined

norms for social behaviour.

 Union Organisation refers to the role of formal groups or organisations such as trade

unions and participation or involvement of workers in union activities. They play a vital

role in maintaining industrial peace or creating industrial unrest.

Importance of Industrial Sociology

1. Stability in Industrial Society– having a constant database of social industrial

phenomena and theories that explain it allows for better administration of industries.

2. Remedies to Problems of Industrial Society– the revolution in the industrial age has

led to differences in status and role of social institutions which has created social unrest.

Industrial Sociology allows for the study of problems and proposes solutions to
 problems such as strikes, lockdowns, unemployment, wages, health sanitation, housing,

education, social security, etc.

3. Helping in Personality Development– underdeveloped personality increases social

disorganization. Industrial sociology is used for personality development of those

individuals involved in the industry.

4. Aid to Familial Integration– family is the central social unit of society. Most families

in poor industrial neighbourhoods face social evils such as poor recreation, prostitution,

alcoholism, unhealthy living conditions, overcrowding, etc. Industrial sociology

addresses these issues.

5. Industrial Planning– in the age of planning, industrial sociology makes industrial

processes more efficient by gaining maximum output out of minimum input. This

planning is possible only with the knowledge base provided by industrial sociology.

6. Peace and Prosperity– economic stability, labour satisfaction and efficient

distribution of resources (which can be achieved with the help of industrial sociology)

allows for maintenance of national and international peace and prosperity.

Why do we require Industrial Sociology?

The concept of industrial sociology is wide and is very vital to the organization. The following

could be stated a few of the reasons why we would require industrial sociology.

 They help us identify the problems existing in the industry and also gives us the

probable solutions to it.

 At the times of industrial distress, they would help us understand the situations better.

 It helps us understand the relationship between one’s personal activities with that of

industrial activities.

 They show us the way human interaction flows through the organization helping in

times of miscommunication.
  It analyses the depth of the industrialization and magnitude of the problems arising

along with the development.

 It helps with industrial planning, in maintaining a good relationship between the labour

unions and the management.

 The trade relations can be easily identified and chaos with the organization channels

can be reduced.

 The most important reason would be to maintain peace and prosperity within an

organization.

With the event of industrialization and vast developing economy, it is very important for us to

realize the human potential in order to compete in the vast competition. In order to realize

human potential, it is important for us to learn human behaviours in the first place in a given

situation. Industrial sociology serves as a platform to learn about the human pattern of

behaviour.