The Industrial Revolution transformed the textile industry through innovations like the spinning jenny and power loom in the late 18th century. These machines greatly increased productivity while requiring less human labor. The iron industry also played a key role through developments like Darby's coke-fueled furnace and Bessemer's inexpensive steel production process in the 1850s. The steam engine was integral as well, first being developed as a pumping engine and later powering machinery, transportation and ships through Watt's improvements in the 1770s. Transportation underwent significant changes with innovations like Fulton's steamboat in the early 1800s and the development of railways in the 1830s.

1. INTRODUCTION
The Industrial Revolution, which took place from the 18th to 19th centuries, was a period
during which predominantly agrarian, rural societies in Europe and America became
industrial and urban. Prior to the Industrial Revolution, which began in Britain in the late
1700s, manufacturing was often done in people’s homes, using hand tools or basic
machines. Industrialization marked a shift to powered, special-purpose machinery, factories
and mass production. The iron and textile industries, along with the development of the
steam engine, played central roles in the Industrial Revolution, which also saw improved
systems of transportation, communication and banking. While industrialization brought
about an increased volume and variety of manufactured goods and an improved standard of
living for some, it also resulted in often grim employment and living conditions for the poor
and working classes.
TEXTILE
The textile industry, in particular, was transformed by industrialization. In the 1700s, a series
of innovations led to ever-increasing productivity, while requiring less human energy. For
example, around 1764, Englishman James Hargreaves (1722-1778) invented the spinning
jenny (“jenny” was an early abbreviation of the word “engine”), a machine that enabled an
individual to produce multiple spools of threads simultaneously. By the time of Hargreaves’
death, there were over 20,000 spinning jennies in use across Britain. The spinning jenny was
improved upon by British inventor Samuel Compton’s (1753-1827) spinning mule, as well as
later machines. Another key innovation in textiles, the power loom, which mechanized the
process of weaving cloth, was developed in the 1780s by English inventor Edmund
Cartwright (1743-1823).
IRON
Developments in the iron industry also played a central role in the Industrial Revolution. In
the early 18th century, Englishman Abraham Darby (1678-1717) discovered a cheaper,
easier method to produce cast iron, using a coke-fuelled (as opposed to charcoal-fired)
furnace. In the 1850s, British engineer Henry Bessemer (1813-1898) developed the first
inexpensive process for mass-producing steel. Both iron and steel became essential
materials, used to make everything from appliances, tools and machines, to ships, buildings
and infrastructure.
STEAM ENGINE
The steam engine was also integral to industrialization. In 1712, Englishman Thomas
Newcomen (1664-1729) developed the first practical steam engine (which was used
primarily to pump water out of mines). By the 1770s, Scottish inventor James Watt (1736-
1819) had improved on Newcomen’s work, and the steam engine went on to power
machinery, locomotives and ships during the Industrial Revolution

2. TRANSPORTATION
The transportation industry also underwent significant transformation during the Industrial
Revolution. Before the advent of the steam engine, raw materials and finished goods were
hauled and distributed via horse-drawn wagons, and by boats along canals and rivers. In the
early 1800s, American Robert Fulton (1765-1815) built the first commercially successful
steamboat, and by the mid-19th century, steamships were carrying freight across the
Atlantic. As steam-powered ships were making their debut, the steam locomotive was also
coming into use. In the early 1800s, British engineer Richard Trevithick (1771-1833)
constructed the first railway steam locomotive. In 1830, England’s Liverpool and
Manchester Railway became the first to offer regular, timetabled passenger services. By
1850, Britain had more than 6,000 miles of railroad track. Additionally, around 1820,
Scottish engineer John McAdam (1756-1836) developed a new process for road
construction. His technique, which became known as macadam, resulted in roads that were
smoother, more durable and less muddy.
COMMS and BANKING
Communication became easier during the Industrial Revolution with such inventions as the
telegraph. In 1837, two Brits, William Cooke (1806-1879) and Charles Wheatstone (1802-
1875), patented the first commercial electrical telegraph. By 1840, railways were a Cooke-
Wheatstone system, and in 1866, a telegraph cable was successfully laid across the Atlantic.
The Industrial Revolution also saw the rise of banks and industrial financiers, as well as a
factory system dependent on owners and managers. A stock exchange was established in
London in the 1770s; the New York Stock Exchange was founded in the early 1790s. In 1776,
Scottish social philosopher Adam Smith (1723-1790), who is regarded as the founder of
modern economics, published “The Wealth of Nations.” In it, Smith promoted an economic
system based on free enterprise, the private ownership of means of production, and lack of
government interference.
STANDARS OF LIVING
The Industrial Revolution brought about a greater volume and variety of factory-produced
goods and raised the standard of living for many people, particularly for the middle and
upper classes. However, life for the poor and working classes continued to be filled with
challenges. Wages for those who laboured in factories were low and working conditions
could be dangerous and monotonous. Unskilled workers had little job security and were
easily replaceable. Children were part of the labour force and often worked long hours and
were used for such highly hazardous tasks as cleaning the machinery. In the early 1860s, an
estimated one-fifth of the workers in Britain’s textile industry were younger than 15.
Industrialization also meant that some craftspeople were replaced by machines.
Additionally, urban, industrialized areas were unable to keep pace with the flow of arriving
workers from the countryside, resulting in inadequate, overcrowded housing and polluted,
unsanitary living conditions in which disease was rampant. Conditions for Britain’s working-
class began to gradually improve by the later part of the 19th century, as the government
instituted various labour reforms and workers gained the right to form trade unions.

3. Industrialization spread from Britain to other European countries, including Belgium, France
and Germany, and to the United States. By the mid-19th century, industrialization was well-
established throughout the western part of Europe and America’s north-eastern region. By
the early 20th century, the U.S. had become the world’s leading industrial nation.
Globalization (or globalisation) is the process of international integration arising from the
interchange of world views, products, ideas and other aspects of culture. Advances in
transportation and telecommunications infrastructure, including the rise of the telegraph
and its posterity the Internet, are major factors in globalization, generating further
interdependence of economic and cultural activities. (Silk Road, telegraph network).
The term globalization has been increasingly used since the mid-1980s and especially since
the mid-1990s. In 2000, the International Monetary Fund (IMF) identified four basic aspects
of globalization:
1. trade and transactions
2. capital and investment movements
3. migration and movement of people
4. dissemination of knowledge
Further, environmental challenges such as climate change, cross-boundary water and air
pollution, and over-fishing of the ocean are linked with globalization. Globalizing processes
affect and are affected by business and work organization, economics, socio-cultural
resources, and the natural environment.
McDonaldization is a term used by sociologist George Ritzer in his book The
McDonaldization of Society (1993). He explains that it becomes manifested when a culture
adopts the characteristics of a fast-food restaurant. McDonaldization is a
reconceptualization of rationalization, or moving from traditional to rational modes of
thought, and scientific management. Where Max Weber used the model of the bureaucracy
to represent the direction of this changing society, Ritzer sees the fast-food restaurant as
having become a more representative contemporary paradigm.
Privatization, also spelled privatisation, may have several meanings. Primarily, it is the
process of transferring ownership of a business, enterprise, agency, public service, or public
property from the public sector (a government) to the private sector, either to a business
that operates for a profit or to a non-profit organization. It may also mean government
outsourcing of services or functions to private firms, e.g. revenue collection, law
enforcement, and prison management
Advantages:
1. Efficiency – due to competition
2. Specialization
3. No political involvement, purely economic – no need to consider political factors
4. No corruption
5. Accountability – everyone is accountable to someone
6. Increase in capital

4. 7. Market discipline
8. Better paid jobs
Disadvantages:
1. Accountability – no control of public
2. Goals – may not be mass oriented
3. No cuts to help people
4. No influence of politics
5. Job loss may occur
6. Inferior quality products
7. Monopoly
In general, liberalization (or liberalisation) refers to a relaxation of previous government
restrictions, usually in such areas of social, political and economic policy.
1. Easier licensing, allowing private sector to enter new fields
2. Finance reforms – reduce role of RBI from regulator to facilitator
3. Tax reforms – No high direct tax
4. Improve foreign exchange policy
5. Trade and investment policies – import licensing ease, export duty reduction
INDIA:
Viewed from the Indian context, some studies have stated that the crisis that erupted in the
early 1990s was basically an outcome of the deep-rooted inequalities in Indian society and
the economic reform policies initiated as a response to the crisis by the government, with
externally advised policy package, further aggravated the inequalities. Further, it has
increased the income and quality of consumption of only high-income groups and the
growth has been concentrated only in some select areas in the services sector such as
telecommunication, information technology, finance, entertainment, travel and hospitality
services, real estate and trade, rather than vital sectors such as agriculture and industry
which provide livelihoods to millions of people in the country.
Growth and Employment: Though the GDP growth rate has increased in the reform period,
scholars point out that the reform-led growth has not generated sufficient employment
opportunities in the country.
Reforms in Agriculture: Reforms have not been able to benefit agriculture, where the
growth rate has been decelerating. Public investment in agriculture sector especially in
infrastructure, which includes irrigation, power, roads, market linkages and research and
extension (which played a crucial role in the Green Revolution), has been reduced in the
reform period. Further, the removal of fertiliser subsidy has led to increase in the cost of
production, which has severely affected the small and marginal farmers. Moreover, since
the commencement of WTO, this sector has been experiencing a number of policy changes

5. such as reduction in import duties on agricultural products, removal of minimum support
price and lifting of quantitative restrictions on agricultural products; these have adversely
affected Indian farmers as they now have to face increased international competition.
Reforms in Industry: Industrial growth has also recorded a slowdown. This is because of
decreasing demand of industrial products due to various reasons such as cheaper imports,
inadequate investment in infrastructure etc. In a globalised world, developing countries are
compelled to open up their economies to greater flow of goods and capital from developed
countries and rendering their industries vulnerable to imported goods. Cheaper imports
have, thus, replaced the demand for domestic goods. Domestic manufacturers are facing
competition from imports.
Reforms and Fiscal Policies: Economic reforms have placed limits on the growth of public
expenditure especially in social sectors. The tax reductions in the reform period, aimed at
yielding larger revenue and to curb tax evasion, have not resulted in increase in tax revenue
for the government.
In the 1930s Max Weber, a German sociologist, wrote a rationale that described the
bureaucratic form as being the ideal way of organizing government agencies.
Max Weber's principles spread throughout both public and private sectors. Even though
Weber's writings have been widely discredited, the bureaucratic form lives on.
Weber noted six major principles.
1. A formal hierarchical structure
Each level controls the level below and is controlled by the level above. A formal hierarchy is
the basis of central planning and centralized decision making.
2. Management by rules
Controlling by rules allows decisions made at high levels to be executed consistently by all
lower levels.
3. Organization by functional specialty
Work is to be done by specialists, and people are organized into units based on the type of
work they do or skills they have.
4. An "up-focused" or "in-focused" mission
If the mission is described as "up-focused," then the organization's purpose is to serve the
stockholders, the board, or whatever agency empowered it. If the mission is to serve the
organization itself, and those within it, e.g., to produce high profits, to gain market share, or
to produce a cash stream, then the mission is described as "in-focused."
5. Purposely impersonal

6. The idea is to treat all employees equally and customers equally, and not be influenced by
individual differences.
6. Employment based on technical qualifications
(There may also be protection from arbitrary dismissal.)
The bureaucratic form, according to Parkinson, has another attribute.
7. Predisposition to grow in staff "above the line."
Weber failed to notice this, but C. Northcote Parkinson found it so common that he made it
the basis of his humorous "Parkinson's law." Parkinson demonstrated that the management
and professional staff tends to grow at predictable rates, almost without regard to what the
line organization is doing.
The bureaucratic form is so common that most people accept it as the normal way of
organizing almost any endeavour. People in bureaucratic organizations generally blame the
ugly side effects of bureaucracy on management, or the founders, or the owners, without
awareness that the real cause is the organizing form.
Main Principles (Characteristics)
1. Specialized roles.
2. Recruitment based on merit (e.g. tested through open competition).
3. Uniform principles of placement, promotion, and transfer in an administrative
system.
4. Careerism with systematic salary structure.
5. Hierarchy, responsibility and accountability.
6. Subjection of official conduct to strict rules of discipline and control.
7. Supremacy of abstract rules.
8. Impersonal authority. (E.g. Office bearer does not bring the office with him).
9. Political neutrality.
Merits: Max Weber himself noted, real bureaucracy will be less optimal and effective than
his ideal type model. Each of Weber's principles can degenerate, more so, when it is utilized
to analyse the individual level in the organization. But when implemented in a group setting
in organizational, some form of efficiency and effectiveness can be achieved, especially with
regards to better output. This is especially true when the Bureaucratic model emphasis on
qualification (merits), specialization of job-scope (labour), hierarchy of power, rules and
discipline.
Demerits: with every worker having to specialize from day one without rotating tasks for
fear of decreasing output, tasks are often routine and can contribute to boredom. Thus,
employees can sometimes feel that they are not part of the organization's work vision and
missions. Consequently, they do not have any sense of belonging in the long term.
Furthermore, this type of organization tends to invite exploitation and underestimate the
potential of the employees, as creativity of the workers is brushed aside, in favour of strict
adherence to rules, regulations and procedures.

7. A trade union is an organization of workers who have come together to achieve common
goals such as protecting the integrity of its trade, improving safety standards, achieving
higher pay and benefits such as health care and retirement, increasing the number of
employees an employer assigns to complete the work, and better working conditions. The
trade union, through its leadership, bargains with the employer on behalf of union members
(rank and file members) and negotiates labour contracts (collective bargaining) with
employers. The most common purpose of these associations or unions is "maintaining or
improving the conditions of their employment". This may include the negotiation of wages,
work rules, complaint procedures, rules governing hiring, firing and promotion of workers,
benefits, workplace safety and policies.
Originating in Europe, trade unions became popular in many countries during the Industrial
Revolution. Trade unions may be composed of individual workers, professionals, past
workers, students, apprentices and/or the unemployed.
Advantages:
1. Build trust among the workforce - Unions provide a mechanism for dialogue
between workers and employers, which helps build trust and commitment among
the workforce and ensures that problems can be identified and resolved quickly and
fairly. This brings significant productivity benefits for companies.
2. Ensure workplaces are safe Union representatives help to lower accident rates at
work by ensuring safe working practices and reducing stress-related ill health caused
by, for example, working long hours, being bullied or working in poor quality
environments
3. Improve staff retention Trade unions negotiate on their members’ behalf with
employers to find solutions that meet business needs, while ensuring that workers
are treated fairly. By giving employees a voice and supporting them when they are
unhappy at work, unions significantly improve staff retention and reduce
absenteeism.
4. Make better business decisions Unions represent not only the workers in particular
businesses, but many others in similar, related organisations. This provides them
with a broad perspective on many workplace issues, and industry knowledge that
can be very useful to companies
5. Provide access to learning and skills Helping members to access education and
training is a key priority for unions.
6. Promote equality Trade unions actively fight discrimination and help to promote
equal opportunities at work. Union representatives are well placed to identify
incidences of discrimination, and to work with employers to ensure that anti-
discrimination policies are properly implemented
Disadvantages:
1. Unemployment By raising the price of labour, the wage rate, above the equilibrium
price, unemployment rises. This is because it is no longer worthwhile for businesses

8. to employ those labourers whose work is worth less than the minimum wage rate
set by the unions
2. Efficiency the effect of union activities to influence pricing is potentially very
harmful, making the market system ineffective.
3. Cost-push inflation By causing wage increases above the market rate, unions
increase the cost to businesses, causing them to raise their prices, leading to a
general increase in the price level
4. Corruption and crime
5. Social disruption Trade unions taken strike actions that result in the disruption of
public services. In some cases, unions' strikes have led to violent clashes with police
and with strike-breakers.
6. Unorganized workers face disadvantage.
Managers are organizational members who are responsible for the work performance of
other organizational members. Managers have formal authority to use organizational
resources and to make decisions. In organizations, there are typically three levels of
management: top-level, middle-level, and first-level. These three main levels of managers
form a hierarchy, in which they are ranked in order of importance. In most organizations,
the number of managers at each level is such that the hierarchy resembles a pyramid, with
many more first-level managers, fewer middle managers, and the fewest managers at the
top level. Each of these management levels is described below in terms of their possible job
titles and their primary responsibilities and the paths taken to hold these positions.
Additionally, there are differences across the management levels as to what types of
management tasks each does and the roles that they take in their jobs.
Role of TLMs – Assemble resources, long term plans, organisation, brain of the organisation,
max authority and responsibility, direct to shareholders, govt and public, req more
conceptual than tech skills.
Role of MLMs – monthly/yearly plan, implement tlm plans, coordinate activities of different
departments, recommendations to tlms, more managerial skills less tech and conceptual.
Role of FLMs – direct interaction with workers, daily plans, require tech and comm skills,
regularly submit reports to higher levels.
In the formal organisational structure individuals are assigned various job positions. While
working at those job positions, the individuals interact with each other and develop some
social and friendly groups in the organisation. This network of social and friendly groups
forms another structure in the organisation which is called informal organisational
structure.
The informal organisational structure gets created automatically and the main purpose of
such structure is getting psychological satisfaction. The existence of informal structure

9. depends upon the formal structure because people working at different job positions
interact with each other to form informal structure and the job positions are created in
formal structure. So, if there is no formal structure, there will be no job position, there will
be no people working at job positions and there will be no informal structure.
Key characteristics of the informal organization:
 evolving constantly
 grass roots
 dynamic and responsive
 excellent at motivation
 requires insider knowledge to be seen
 treats people as individuals like
 flat and fluid
 cohered by trust and reciprocity
 difficult to pin down
 collective decision making
 essential for situations that change quickly or are not yet fully understood
Rapid growth. Starbucks, which grew from 100 employees to over 100,000 in just over a
decade, provides structures to support improvisation. In a July 1998 Fast Company article on
rapid growth, Starbucks chairman Howard Schultz said, “You can’t grow if you’re driven only
by process, or only by the creative spirit. You’ve got to achieve a fragile balance between
the two sides of the corporate brain.
Learning organization. Following a four-year study of the Toyota Production System, Steven
J. Spear and H. Kent Bowen concluded in Harvard Business Review that the legendary
flexibility of Toyota’s operations is due to the way the scientific method is ingrained in its
workers – not through formal training or manuals (the production system has never been
written down) but through unwritten principles that govern how workers work, interact,
construct, and learn.
Idea generation. Texas Instruments credits its “Lunatic Fringe”—“an informal and
amorphous group of TI engineers (and their peers and contacts outside the company),”
according to Fortune Magazine—for its recent successes. "There's this continuum between
total chaos and total order," Gene Frantz, the hub of this informal network, explained to
Fortune. “About 95% of the people in TI are total order, and I thank God for them every day,
because they create the products that allow me to spend money. I'm down here in total
chaos, that total chaos of innovation. As a company we recognize the difference between
those two and encourage both to occur.
DISADVANTAGES: Resistance to change, role conflict, rumours

10. Caste is deeply rooted social institution in India. There are more than 2800 castes and sub-
castes with all their peculiarities. The term caste is derived from the Spanish word caste
meaning breed or lineage. The word caste also signifies race or kind. The Sanskrit word for
caste is varna which means colour.The caste stratification of the Indian society had its origin
in the chaturvarna system. According to this doctrine the Hindu society was divided into
four main varnas - Brahmins, Kashtriyas, Vaishyas and Shudras.The Varna system prevalent
during the Vedic period was mainly based on division of labour and occupation. The caste
system owns its origin to the Varna system. Ghurye says any attempt to define caste is
bound to fail because of the complexity of the phenomenon.
According to Risely caste is a collection of families bearing a common name claiming a
common descent from a mythical ancestor professing to follow the same hereditary calling
and regarded by those who are competent to give an opinion as forming a single
homogeneous community. According to Maclver and Page when status is wholly
predetermined so that men are born to their lot without any hope of changing it, then the
class takes the extreme form of caste. Cooley says that when a class is somewhat strictly
hereditary we may call it caste.M.N Srinivas sees caste as a segmentary system. Every caste
for him divided into sub castes which are the units of endogamy whose members follow a
common occupation, social and ritual life and common culture and whose members are
governed by the same authoritative body viz the panchayat.According to Bailey caste groups
are united into a system through two principles of segregation and hierarchy. For Dumont
caste is not a form of stratification but as a special form of inequality. The major attributes
of caste are the hierarchy, the separation and the division of labour.Weber sees caste as the
enhancement and transformation of social distance into religious or strictly a magical
principle. For Adrian Mayer caste hierarchy is not just determined by economic and political
factors although these are important.
Sanskritization
Prof M.N Srinivas introduced the term sanskritization to Indian Sociology. The term refers to
a process whereby people of lower castes collectively try to adopt upper caste practices and
beliefs to acquire higher status. It indicates a process of cultural mobility that is taking place
in the traditional social system of India.M.N Srinivas in his study of the Coorg in Karnataka
found that lower castes in order to raise their position in the caste hierarchy adopted some
customs and practices of the Brahmins and gave up some of their own which were
considered to be impure by the higher castes. For example they gave up meat eating,
drinking liquor and animal sacrifice to their deities. They imitiated Brahmins in matters of
dress, food and rituals. By this they could claim higher positions in the hierarchy of castes
within a generation. The reference group in this process is not always Brahmins but may be
the dominant caste of the locality.Sanskritization has occurred usually in groups who have
enjoyed political and economic power but were not ranked high in ritual ranking. According
to Yogendra Singh the process of sanskritization is an endogenous source of social change

11. .Mackim Marriot observes that sanskritic rites are often added on to non-sanskritic rites
without replacing them. Harold Gould writes, often the motive force behind sanskritisation
is not of cultural imitation per se but an expression of challenge and revolt against the
socioeconomic deprivations.
The class system is universal phenomenon denoting a category or group of persons having a
definite status in society which permanently determines their relation to other groups. The
social classes are de facto groups (not legally or religiously defined and sanctioned) they are
relatively open not closed. Their basis is indisputably economic but they are more than
economic groups. They are characteristic groups of the industrial societies which have
developed since 17th century. The relative importance and definition of membership in a
particular class differs greatly over time and between societies, particularly in societies that
have a legal differentiation of groups of people by birth or occupation. In the well-known
example of socioeconomic class, many scholars view societies as stratifying into a
hierarchical system based on occupation, economic status, wealth, or income.
Sociologists have given three-fold classification of classes which consists of - upper class,
middle class and lower class. A social class is essentially a status group. Class is related to
status. Different statuses arise in a society as people do different things, engage in different
activities and pursue different vocations. Status in the case of class system is achieved and
not ascribed. Birth is not the criterion of status. Achievements of an individual mostly decide
his status. Class is almost universal phenomenon. It occurs in all the modern complex
societies of the world. Each social class has its own status in the society. Status is associated
with prestige. The relative position of the class in the social set up arises from the degree of
prestige attached to the status. A social class is relatively a stable group. A social class is
distinguished from other classes by its customary modes of behaviour.
This is often referred to as the life-styles of a particular class. It includes mode of dress, kind
of living the means of recreation and cultural products one is able to enjoy, the relationship
between parent and children. Life-styles reflect the specialty in preferences, tastes and
values of a class. Social classes are open- groups. They represent an open social system. An
open class system is one in which vertical social mobility is possible. The basis of social
classes is mostly economic but they are not mere economic groups or divisions. Subjective
criteria such as class- consciousness, class solidarity and class identification on the on hand
and the objective criteria such as wealth, property, income, education and occupation on
the other hand are equally important in the class system. Class system is associated with
class consciousness. It is a sentiment that characterizes the relations of men towards the
members of their own and other classes. It consists in the realization of a similarity of
attitude and behaviour with members of other classes.
A degree in Industrial Management will give you the skills and knowledge to lead and
communicate with the entrepreneurs, programmers, engineers, and scientists that comprise
industry. Proper leadership, management, and guidance of high skill projects, capital, and
planning is imperative to company success. Industrial Management is a more technical
management degree. Students who have a passion for science and math plus an interest in

12. management are often attracted to this degree as it allows them to combine their areas of
interest. Industrial Management students a complete management education with a
specialty area called a concentration. Students may choose from the following
concentrations: Analytical Consulting, Computer Science, Economics, Engineering, Financial
Engineering, Management Information Systems, Manufacturing and Service Operations
Management, Operations & Supply Chain Management, Quantitative Methods, Statistics
and Science (Biology, Chemistry, Math, Physics, and Earth, Atmospheric and Planetary
Sciences).
Until Chandler, the emergence of big business was all about titans. The Rockefellers,
Carnegies and Fords were either "robber barons'' whose greed and ruthlessness allowed
them to smother competitors and establish monopolistic empires. Or they were "captains of
industry'' whose genius and ambition laid the industrial foundations for modern prosperity.
But ... Chandler ... uncovered a more subtle story. New technologies (the railroad, telegraph
and steam power) favored the creation of massive businesses that needed -- and, in turn,
gave rise to -- superstructures of professional managers: engineers, accountants and
supervisors.
In 1977 Barbara Ehrenreich and her then husband John defined a new Marxist class in
United States as "salaried mental workers who do not own the means of production and
whose major function in the social division of labor...(is)...the reproduction of capitalist
culture and capitalist class relations"; the Ehrenreichs named this group the "professional-
managerial class".[19] This group of middle-class professionals are distinguished from other
social classes by their training and education (typically business qualifications and university
degrees),[20] with example occupations including academics and teachers, social workers,
engineers, managers, nurses, and middle-level administrators. The Ehrenreichs developed
their definition from studies by André Gorz, Serge Mallet, and others, of a "new working
class", which, despite education and a perception of themselves as being middle class, were
part of the working class because they did not own the means of production, and were
wage earners paid to produce a piece of capital. The professional-managerial class seeks
higher rank status and salary, and tend to have incomes above the average for their country.
Motivation is the willingness to make an effort toward accomplishment.
Organizational Climate and Morale
· A large motivating factor on the job is the organizational climate.
· Organizational climate affects employee morale.
· An effective climate allows people to work to their full potential without becoming a threat
to others; it encourages competent and rapid completion of tasks and allows employees to
feel comfortable.

13. · Many methods are used to improve the climate of an organization. Though managers are
responsible for making change, individual employees can also accomplish a great deal. They
can listen to others carefully, step in and help with a task without complaints, and maintain
a positive attitude. Often, employees also have opportunities to suggest changes.
· If people are not motivated by the work itself, rewards should be used.
2. Intrinsic and Extrinsic Rewards
· Economic need is the primary motivator toward work.
· Extrinsic motivators allow people to work in the present without worrying about the
future.
· Intrinsic rewards are the internal feelings of satisfaction obtained from the job. In addition
to job satisfaction, other intrinsic rewards include:
 A work ethic
 A sense of self-identity
 A sense of self-fulfillment
 A sense of self-worth
 The social value of work
 Social and community roles
Maslow’s theory makes the following assumptions:
· Needs that are not yet satisfied will motivate or influence a person’s behavior.
· When a need has been satisfied, it will no longer motivate the person’s behavior.
· Needs are arranged by order of importance.
· A need in the hierarchy will not be a motivator until those below it are already satisfied.
For managers, Maslow’s main lesson on motivation is to understand the needs level of
employees. When a manager fulfills the employees’ basic needs, they can be much more
effective in getting employees to perform. The steps in Maslow’s hierarchy of needs are as
follows:
· Physiological needs
· Safety and security needs
· Love and belongingness needs
· Esteem needs
· Self actualization

14. According to Marx's theory, value is equal to the new value created by
workers in excess of their own labour-cost, which is appropriated by the capitalist as profit
when products are sold. Marx's solution was to distinguish between labor-time worked and labor
power. A worker who is sufficiently productive can produce an output value greater than what it
costs to hire him. Although his wage seems to be based on hours worked, in an economic sense this
wage does not reflect the full value of what the worker produces. Effectively it is not labour which
the worker sells, but his capacity to work.
Imagine a worker who is hired for an hour and paid $10. Once in the capitalist's employ, the
capitalist can have him operate a boot-making machine using which the worker produces
$10 worth of work every fifteen minutes. Every hour, the capitalist receives $40 worth of
work and only pays the worker $10, capturing the remaining $30 as gross revenue. Once the
capitalist has deducted fixed and variable operating costs of (say) $20 (leather, depreciation
of the machine, etc.), he is left with $10. Thus, for an outlay of capital of $30, the capitalist
obtains a surplus value of $10; his capital has not only been replaced by the operation, but
also has increased by $10.
The worker cannot capture this benefit directly because he has no claim to the means of
production (e.g. the boot-making machine) or to its products, and his capacity to bargain
over wages is restricted by laws and the supply/demand for wage labour. Hence the rise
of trade unions which aim to create a more favourable bargaining position through
collective action by workers.
In a capitalist society, the worker’s alienation from his and her humanity occurs because the
worker can only express labour — a fundamental social aspect of personal individuality —
through a private system of industrial production in which each worker is an instrument, a
thing, and not a person.
1. Alienation of the worker from the work — from the product of his labour
The design of the product and how it is produced are determined, not by the producers who
make it (the workers), nor by the consumers of the product (the buyers), but by the
Capitalist class, who, besides appropriating the worker’s manual labour, also appropriate
the intellectual labour of the engineer and the industrial designer who create the product, in
order to shape the taste of the consumer to buy the goods and services at a price that yields
a maximal profit.
2. Alienation of the worker from working — from the act of producing
In the Capitalist Mode of Production, the generation of products (goods and services) is
accomplished with an endless sequence of discrete, repetitive, motions that offer the
worker little psychological satisfaction for “a job well done”. By means of commodification,
the labour power of the worker is reduced to wages (an exchange value).
The process whereby the worker is made to feel foreign to the products of his/her own
labor. The creation of commodities need not lead to alienation and can, indeed, be highly
satisfying: one pours one's subjectivity into an object and one can even gain enjoyment

15. from the fact that another in turn gains enjoyment from our craft. In capitalism, the worker
is exploited insofar as he does not work to create a product that he then sells to a real
person; instead, the proletariat works in order to live, in order to obtain the very means of
life, which he can only achieve by selling his labor to a capitalist for a wage (as if his labor
were itself a property that can be bought and sold). The worker is alienated from his/her
product precisely because s/he no longer owns that product, which now belongs to the
capitalist who has purchased the proletariat's labor-power in exchange for exclusive
ownership over the proletariat's products and all profit accrued by the sale of those
products.
 1833, the skilled workers in those days used to earn about 10-12 rupees a month,
while unskilled ones would earn about 4 rupees a month. It may be mentioned that
the wage of the jute workers remained stagnant during the period 1860 to 1892!
 The working hours in all the cotton mills were 13 to 15 hours a day. the conditions
inside the factories were “inhuman”, the workers had to “put in hard labour” and
after the shift was over, “they were so exhausted that a large number of them used
to get fainted within the factory premises”. The condition of the female workers was
deplorable. Employing of child labour was rampant. The factory Labour Commission
of 1908 noted that children in the age group 5-7 constituted a major workforce in
most of the factories. 40% of the part-time workers were under-age children. In the
jute mills, children in the age group 7-9 used to travel about 4 km in the early
morning to reach the factory in time!
 To “discipline” the budding labour movement, “Employers’ and Workers’ (Disputes)
Act, 1860” was passed. Among other aspects, this Act conferred enormous power on
the employer to coerce the workers. Finally, after a lot of blood-bath on the part of
the workers and pressure from the civil society, Indian Factory Act, 1881, was
passed, which banned the employment of a child below 7 years of age in a factory
and fixed the working hour of workforce in the age group 7-12 at 9 hours!
 Sashipada Banerjee started publishing a journal exclusively devoted to the labourers
in 1878 from Kolkata – BHARAT SRAMAJIBI (INDIAN LABOURERS) – which started
expressing the labour problems for the first time.
 Bengal can pride herself in attaining the landmark in the history of labour movement
of India. Indian railway men joined a first ever strike in the month of April and May,
1862 demanding an 8-hours-a-day working pattern. The other provinces of India
were not very far behind – Madras Presidency witnessed about 25 strikes and cease
of work during the period 1882 to 1890.
 The first political strike by the Indian proletariat took place in July 13, 1908, when
the workers of the Greeves and Cotton Mill in Bombay ceased work protesting
against the trial of Indian nationalist Leader, Bal Gangadhar Tilak.
 In 1920, the All India Trade Union Congress (AITUC) was founded through a national
convention which took place in Bombay during the period October 31 to November

16. 2. The effect of such a historic event was evident almost immediately as the country
saw a dramatic rise in the number of strikes.
 In November 1, 1925 the Workers’ and Peasants Party was founded in Bengal. Soon
many branches of this organization started spreading in other parts of India. Finally
in December 1928, through an India-wide convention in Kolkata, the All India
Workers and Peasant Party was born.
 When the Second World War was in full swing, in 1940, 20 thousand workers of
Calcutta Municipal Corporation organized a strike and partial success was achieved.
During the period 1940-1943, Bengal witnessed a series of medium to large-scale
workers’ strike involving millions of workers in almost every firm and mill
 After 1947, there was a dramatic change that took place in the workers movement
arena of our country. Various Central Trade Unions were founded, resulting in a
division of the strength of the collective bargaining power of the workers. 1947
witnessed about 1811 strikes, while 1950 witnessed only 814 strikes in the divided
India