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The Management cannot overlook the environment, whether market or non-market. In the light of the above statement, explain the link between social developments, the industrialisation process and the management culture.


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The term environment refers to the totality of all the factors which are external to and beyond the control of individual business enterprises and their managements. Environment furnishes the macro-context, the business firm is the micro unit. Hence, the business enterprises and their managements cannot overlook the environment. Now what do we mean environment here?


Environment


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The environment factors are essentially the givens within which firms and their managements must operate. For example, the value system of society, the rules and regulations laid down by the government, the monetary policies of the central bank, the institutional setup of the country, the attitude towards foreign capital and enterprise etc.


The environment may be classified into market environment and non-market environment depending upon the factors influencing the business firms environment.


Market environment


Here the business firms environment is influenced by market forces like demand, supply, number of other firms and the resulting price competition, or non-price competition etc


Non-market environment


The major factors contributing the non-market environment are forces like Government laws, social traditions etc.


There also exists another classification of the environment economic and non-economic. Non-economic environment refers to social, political, legal, educational, and cultural factors affecting business operations. Economic environment, on the other hand, is given shape and form by factors like the fiscal policy, the monetary policy, the inductrial policy resolutions, physical limits on output, the price and income trends, the nature of the economic system at work, the tempo of economic development, the national economic plan etc.


To understand the interaction between sociology and the economy, let us know analyse how the market and non-market environments influence the social developments, the industrialisation process and the management culture.


What do we mean by industrialisation?


Historians provide varying definitions, but two criteria are usually put forward


1) the economy of an area moves from dependence on agriculture to a dependence on manufacturing activity.


) this move is accompanied by sustained economic growth.


Several considerations arise here


industrialisation occurs on a regional rather than a nationwide basis and often within parts of a region only.


there are no hard-and-fast rules to define the stage at which a region becomes industrialised, but an appreciable degree of manufacturing activity would need to be apparent.


well before factories became common, such regions often were involved in agricultural activities


industrialisation often took place on a gradual basis, though sometimes with a quickening pace


the notion of sustained economic growth is not meant to imply high rates of expansion, nor that years of setback did not occur.


Social Aspects of Industrialisation


When considering the social consequences of industrialisation, there are a wide range of important issues like


population growth and structure


urban development and public health


housing conditions


the standard of living and poverty


popular leisure


crime and public disorder


working conditions and practices


family and kinship links


Management Culture


The style and logistics of managing is not unique across countries or for that matter may not be unique within two industries within a same country.


The industrialisation process in every society in the modern era can be traced to the work of a small elite group. Each kind of industrial elite built up its own management style and managerial personnel in India.


The foreign-colonial elite group and theri successors, the foreign firms operating in India, including the subsidiaries of multinationals, used the ethnocentric or racial approach to recruiting managerial talents. The same practice was followed in India by the big family concerns in India till recently.


In joint stock companies which are not controlled by family concerns and in public sector enterprises, professionals are now gradually coming into their own. The practice of recruiting the best talent available from the country of operations may be described as polycentric.


The multinationals do try to make a geocentric approach i.e, they try to tap any effective source available anywhere. But in practice, they do not often flout national sentiments.


So, from the above discussion, it can be observed that the process of industrialisation and the management style or recruitment culture are dictated by social convenience and compulsions.





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