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Definition of Industrial Sociology Industrial sociology is the sociology of relationship b/w employers and worker or study of impact of industry on social relation. 'Industrial sociology is the application of sociological approach to the reality and problems of industry'. -P. Gisbert. 2. "Industrial sociology centres its attention on social organization of factory, the store, and the office. This focus includes not only the interactions of people playing roles in these organizations but also the ways in which their work roles are interrelated with other aspects of their life" -Charles B. Spaulding. 3. Industrial sociology is the sociology of industrial relations and industrial activities of man. Industrial sociology, until recently a crucial research area within the field of sociology of work, examines "the direction and implications of trends in technological change, globalization , labour markets, work organization, managerial practices and employment relations to the extent to which these trends are intimately related to changing patterns of inequality in modern societies and to the changing experiences of individuals and families the ways in which workers challenge, resist and make their own contributions to the patterning of work and shaping of work institutions." 1.1 NATURE AND SCOPE OF INDUSTRIAL SOCIOLOGY What is Sociology? The science dealing with the origin, evolution and development of human society and its organization, institution and functions, is known as Sociology. Coming together to live in a group is the compulsion of man, not his choice as there are stronger animals than man. Food gatherer to food producer, the long journey of evolution of man made him develop the group living ways and thus society is formed. Thus, the study dealing with requirements of men living in group led to development of Sociology. That is why man is popularly known as ‘social animal.’ Behaviour of man ought to be different when living in

Industrial Sociology Notes for MLL

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Page 1: Industrial Sociology Notes for MLL

Definition of Industrial Sociology

Industrial sociology is the sociology of relationship b/w employers and worker or study of impact of industry on social relation.

'Industrial sociology is the application of sociological approach to the reality and problems of industry'. -P. Gisbert.

2. "Industrial sociology centres its attention on social organization of factory, the store, and the office. This focus includes not only the interactions of people playing roles in these organizations but also the ways in which their work roles are interrelated with other aspects of their life" -Charles B. Spaulding.

3. Industrial sociology is the sociology of industrial relations and industrial activities of man.

Industrial sociology, until recently a crucial research area within the field of sociology of work, examines "the direction and implications of trends in technological change, globalization, labour markets, work organization, managerial practices and employment relations to the extent to which these trends are intimately related to changing patterns of inequality in modern societies and to the changing experiences of individuals and families the ways in which workers challenge, resist and make their own contributions to the patterning of work and shaping of work institutions."

1.1 NATURE AND SCOPE OF INDUSTRIAL

SOCIOLOGY

What is Sociology?

The science dealing with the origin, evolution and development of human society and its organization, institution and functions, is known as Sociology. Coming together to live in a group is the compulsion of man, not his choice as there are stronger animals than man. Food gatherer to food producer, the long journey of evolution of man made him develop the group living ways and thus society is formed. Thus, the study dealing with requirements of men living in group led to development of Sociology. That is why man is popularly known as ‘social animal.’ Behaviour of man ought to be different when living in group as individual behaviour should not disturb others. Then need of norms, rules and laws was felt.

What is Industry?

It is an economic activity concerned with the processing of raw materials and manufacture of goods in factories. Industry also means hard work. That is why it is well said by AMYOB “To shine your personality, enter into industry.” The need of industrial sociology, its development and put it on solid foundation is felt by man on the path of progress of mankind. After India got freedom, Jawaharlal Nehru, the first Prime Minister of independent India, gave name to industries, Temples of Modern India. From the dawn of civilization man has been making rules of behavior so that human activities may be bound into the formation of society. Manmade laws differ from those which are natural and universal, for instance, the rule that human beings must grow and mature.

U N I T 1 INTRODUCTION

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INDUSTRIAL SOCIOLOGY

Industrial Sociology deals more with soft skills of man. It plays vital role in building nation as it helps in increasing the production and thus helps in Gross Domestic Product (GDP) rising. More so with quality as competition can be faced.

Today, there is noticeable increase of interest in quality, on the part of both industry and society. There are several reasons for the greater interest in quality-higher demands for quality from customers, greater competition, demands for better profitability and legislation on product liability.

Good results can not be achieved through work on a single department in the enterprise. It is necessary for all those functions which come into contact with the product during its development, manufacture and use, to cooperate in this work. This means that quality must be considered and controlled by all these functions—market research, product development, manufacturing engineering, purchasing, production, inspection, marketing and after-sales service. It is also necessary to coordinate the work of these functions on quality that the enterprise should have a wide approach to quality. Our lives are dependent in many ways on industrial products; shelter, nutrition, communications, healthcare, work, recreation and national security.

One basic aspect of products of this type, goods or services, is that they must be fit to use. Failure in use may lead to injury, discomfort, death or economic loss.

Since all these functions are created by men in manufacture of any product, those involved form a group and thus society is formed. The periphery of this society is also affected or for that matter they may come from general public and thus role of corporate comes into play. This is popularly known as Corporate Social Responsibility (CSR).

1.2 INDUSTRIAL SOCIOLOGY

Definition

Industrial Sociology, a term came into use in the middle of twentieth century owing to the famous experiments conducted by George Elton Mayo and his associates during late twenties and early thirties at Hawthrone Works in Chicago.

It is the application of sociological approach to the reality and problems of industry. The importance attached to the subject can be gauged to the fact that India has committed to the industrial development as a necessary means to solve its economic and social problems. Here, we have to understand key terms: ‘industry’ and ‘sociology.’

INTRODUCTION 3

UNIT 1

Industry

Industry may be understood as, ‘the application of complex and sophisticated methods for the production of economic goods and services’.

These complex methods, implying use of machinery, have been devised to improve quality and quantity of production.

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To shine, enter into industry. From food gatherer to food producer, man has always been industrial, i.e., hard-working. Coming together and start living in a group, man always tried to develop. He has always used tools to get food and satisfy his needs. To get his daily breads, pre-literate man used digging stick, hoe or bow and arrow. Anthropology and Histroy show that man has always been not only user of tools but also maker of tools, i.e., homo faber. Adjustment, one of the characteristics of man, makes man move from means to ends, to achieve his objectives. That is why man is also called homo sapiens (intelligent man) and so homo industrialis (industrial man).

From French industrie or Latin industria, here group of diligent and hard-working men came together and formed a unit to carry economic activity concerned with the processing of raw materials and manufacture of goods in factories.

Sociology

The Science, dealing with the behaviour of man living in group, which developed over a period of time, is known as Sociology or Science ofsociety. Society itself consists in the web of social relationships with the combinations and complexities arising from them, as clique (a small group of people who spend time together and do not allow others to join them), groups, associations, institutions, systems, etc.

The root or beginning of society is the social relationship which essentially develops on mutual awareness, followed by reciprocal interrelations and interactions. Thus, we may say that strangers do not make society. Like, two students come to college from different areas, different backgrounds and never seen each other in past. Though physically present in college, they have not found occasion to start talking. But when they come close to each other on introduction, the social relationship begins to emerge and may even become more complex when they begin to deal with each other or talk business.

Generally, sociology is restricted to the field of study of social institutions or social systems as the family or state, the village or factory etc. The objectives are undoubtedly legitimate, but there does not seem to be any cogent reason to exclude other social realities, such as group or social relationship itself.

4 INDUSTRIAL SOCIOLOGY

Any reality, especially a complex reality like industry, can be studied from various points of view, such as technological, physical, psychological etc. But we must give emphasis to the sociological aspect or social element that manifests itself in industry.

HOW DIFFERENT SOCIOLOGISTS DEFINED

INDUSTRIAL SOCIOLOGY

1. “Industrial Sociology is concerned with industry as a social system, including those factors (technical, economic, political) which affect the structure, the functions and the changes in that system.”

—Smith J.H., Industrial Sociology, UNESCO Publication

2. “Industrial Sociology is a substantive area of general sociology which might more accurately be termed the sociology of work organisations or sociology of economy.”

—D.C. Miller and W.H. Form, Industrial Sociology, New York

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3. “The adjective industrial implies the application of Sociological theories and methods in one segment of society, i.e., the one concerned with the economic function of producing and distributing the goods and services which society requires.” —Ibid

4. “Lupton has been more specific and advanced the study of the social system of the factory and of the influences external to the factory which affect that system.” —Ibid

5. “Industrial Sociologists center their interests upon the social organisations of the work place, including the pattern of interaction among people who are responding to one another in terms of their roles in work organisations or whose behaviour is being affected by those roles.” —Charles B. Spaulding

6. “Industrial Sociology is concerned with how the economic subsystem is related to other sub-system, how the sub-system is structured in terms of particular work organisation and roles and how persons fit into these roles.”

—Parker S.R., Brown R.K. and others

The Sociology of Industry

7. “H.J. Smith has defined the field of Industrial Sociology as the study of social relations in industrial and organisational setting and the way these relations influence and are influenced by relations in the wider community.”

Quoted by Parker, Brown, Child and Smith

The Sociology of Industry

INTRODUCTION 5

UNIT 1

1.3 PSYCHOLOGY, SOCIOLOGY AND ECONOMICS

Human behaviour is now given importance. It is the concern of everyone. Parents are unhappy about the behaviour of their children, teachers find students disinterested in study, employers find lack of commitment from their employees. ‘Why people behave as they do’, is subject of study, full of mystery. Here study of Psychology plays great role paving the way for Sociology and Economics.

Mutual awareness or reciprocity is what characterises social reality and distinguishes it from other sciences. Psychology has much affinity with sociology. When Kumar quarrels with his tool, we call it psychological phenomenon in which only one man is involved. But when Kumar is fired by supervisor Vishnu, a sociological reality has emerged.

Whereas, Industrial Psychology deals mostly with individual and personal behaviour and problems, as selection of personnel, definition of basic personal factors in job satisfaction, internal work motivation, accident proneness, etc., Industrial Sociology stresses, on the contrary, the social or interactional factors as industrial and human relations, formal and informal organisation, team work, communication, etc. Though communication or motivation is common to both disciplines of Industrial Psychology and

Industrial Sociology, approaches and characteristic viewpoints of these are clearly distinct.

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Economics is mainly concerned with the traditional activities of production, distribution and consumption, giving due significance to the problems of finance, exchange, etc. Profits, finance, monopoly, taxation, viability etc., are the question raised by economists without any emphasis given to human, social or psychological aspects. But now ideas have greatly changed in this respect and today not only are these sciences becoming more specialised and objective but their fields of collaboration and mutual support are also expanding rapidly. Organisational Sociology is the latest branch of Sociology which is closely related to Industrial Sociology.

1.4 TASK OF INDUSTRIAL SOCIOLOGY

From the discussion we have here, we may say that Industrial Sociology is an applied discipline. Not merely concerned with general sociological concepts, but it is related to concepts which specially refer to industry. Thus task of industrial sociology is to select and study its social elements even when they are combined or interacting with other realties.

Industrial Sociology is concerned with industry as social system. Factors like technical, economic, political affect structure and working of the system.

In view of these factors playing great role, study of industrial sociology assumes much importance.

6 INDUSTRIAL SOCIOLOGY

Economist talks of prices and wage rates, Psychologist speaks of vocational guidance and tests, Physiologist thinks in terms of fatigue and nutrition. Lawyers are imported by collective bargainer, i.e., trade union leaders into the discussion and then things get messed up. But none considers the group (industry) and its functions in society as a constituent unit of integrity. Yet the group has an impulse to self-preservation as, or stronger than that of an individual and many industrial strikes are actually symptomatic of the attempt of group to hold together. Economist, psychologist, physiologist,

…all ignore the fact that complex group association is the distinguishing character of human beings.

Personnel Administration and Social Welfare

Industrial Sociology has considerably widened its scope but its method and approach remain essentially same. The social sciences especially psychology, economies and sociology provide tools to correct deficiencies and improve society and the practical social sciences, among which social welfare is prominent, apply them.

Personnel Management or Personnel Administration, of which industrial social welfare is a part, is mainly the application of social sciences to the human problems of industry. That is the reason personnel manager of any industry is supposed to have adequate knowledge of sociology, psychology, economics etc., as they affect industry. If personnel man is trained psychologist or sociologist, he will definitely be more successful in his job.

Social Relations

In modern times, we have discovered to realise that industry itself, which originally was considered to be only economic or technical organisation, is eminently a social organisation, or institution devoted to the production and marketing of goods and services. Thus the importance of social sciences in general and sociology in particular is understood. Sociology, therefore, is concerned with social relations in

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industry and their influence on industrial phenomena like productivity, morale, attitude, functional authority etc. and thereby affecting quantity and quality of goods and services.

These social relations in industry may be internal or external. Internal relations are those existing within industry itself concerning management, operations or both, whereas external relations are between industry and outside bodies as government, community, educational institution etc.

The internal relations, which are more important in industry to take mission forward, are further divided into formal, informal and mixed categories. Formal relations immediately arise from performance of one’s approved duties to the organisation, may be managerial or operational depending upon whether these are proper to the management or workmen or operations. Formal relations may also be statutory or sanctioned by law or custom or those implied in collective bargaining, grievance procedure,

INTRODUCTION 7

UNIT 1

Industrial councils, adjudication etc. Popularly known as Industrial Relations, they literally go more extensively.

Informal relations spontaneously arise everywhere in industry. Though hardly ever officially regulated, they are ordinarily sustained by common rules of ethics and customs. Informal relations may exist among individuals as when two or more workmen criticise or grumble against their supervisor, agree to play cards, interaction between different groups or individuals such as trade union groups. Like unions and associations of all banks came together to form United Banks Federation or union of workmen from same village, or aggrieved workmen who temporarily unite to protect their own interest and have their complaints heard. Once, PMRY (Prime Minister Rozgaar Yojana) borrowers, who defaulted, formed union in A.P. When matter is taken up with grievance committee, their informal relations become formal relations. The informal relations in nuclear groups and clique, though informal, are more or less defined and stable. They may be seen at all levels of industry, office workers, managers etc. and are known as informal organisations of the industry .

Mixed relations, also described by social scientists as socio-technical relationship, play great roles in the industry. Arising out of discharge of one’s duties which may be of managerial or technical nature, mixed relations are also called socio-functional. While instructing a trainee on the job, trainer cracks joke or drops some pleasantries, commenting like lazy-bones, sociofunctional relations are developed.

No industry can exist and thrive without taking external relations into consideration. Growing in importance, external relations are given due weightage and so Public Relations Officers (PROs) are appointed.

8 INDUSTRIAL SOCIOLOGY

Quick Review

Preliminary concepts of Industrial Sociology deal with application of sociological approach to the problems of industry in order to achieve objects.

Here key words are Industry and Society. Industry, part of society, is the application of complex and varied methods for the production of economic goods and services, that is application of tools for economic production.

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As man is endowed with intelligence, he has always been an industrial being, homo industrialis.

As manifest in society, sociological approach to industry consists in the study of social relationships, groups, institutions, behaviour of man in group of men, in isolation affecting the outcome.

Industrial Psychology differs from Industry Sociology as former is individual-oriented but latter is group oriented. However, combination of both sciences results in Social Psychology of Industry or Industrial Psycho- Sociology depending upon emphasis given to psychological or sociological behaviour of men.

Economics is an important connector in all social sciences in industry as all activities are carried out by men together or alone.

Industrial Sociology is a specialised subject and is distinct from disciplines as industrial or social welfare or personnel management which are concerned with practical problems of industry. Industrial Sociology has paved the way for the development of these disciplines and now help one another, that is, from theory to practice or practice to theory, i.e., empirical in order to achieve the objects, that is the quest of man.

Various types of social relations in industry, as charted earlier, particularly formal and informal relations play great roles in development of industry.

Both soft touch and hard touch are needed in the administration of industry and many times on the spot decision based on established norms of industry are needed.

1.5 SIGNIFICANCE OF INDUSTRIAL SOCIOLOGY

Industrial Sociology has acquired significance in progressive society where industrial revolution played great role which was necessitated to cater the growing demands of ever increasing population.

Following benefits increase the significance of Industrial Sociology:

1. Use of Scientific Methods

Industrial Sociology acquires great significance in view of scientific methods adopted to study. To understand it by establishing cause-effect relationship, scientific knowledge helps. All round progress of mankind depends upon moving up the ladder of Maslow’s hierarchy of needs, i.e., food (bottom-most need).

With the onset of industrial revolution, development of industries took the centre stage. Industrial development in any nation became a key factor in deciding the progress of that nation. As science helped in industrial development, the systematic knowledge acquired using scientific methods human behaviour became very handy. Thus industrial sociology as a subject of study gained currency. Various institutions dealing with industrial society, its social control, social dynamics, social change, problems and their remedies came up and thereby widened the scope of industrial sociology. It would not be exaggeration to say that without knowledge of industrial sociology industrial progress could not have been achieved. The importance of industrial sociology made the premise of setting up Tata Institute of Social Sciences in Mumbai.

2. Understanding the Social Aspect of Industry

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The orderly movement of things based on certain rules takes any work to logical conclusion. That is the importance of science and that is why it is called specialised knowledge (In Hindi language, Science means ‘Vigyan’,that is vishesh gyan or specialised knowledge). To gauge the development of any nation, the position of its industries plays a great role. The contribution of industries to the well-being of citizens of its country and humanity at large has become now predominant in the index of development of any nation. That is why Corporate Social Responsibility (CSR) has become a buzzword in developing country like India. Industrial Sociology has added new dimension to the knowledge of humanity. The workmen, who do work, execute the design, that is taken from drawing board to floor, are vital link between theory and practice. So called labour class, workmen are to be trained, taught and toughened so that they become finest craftsmen. The social strata, importance of roles and problems of workmen are to be addressed in such a way that there ever remains cordial industrial relations and industrial peace should bring development in industries.

3. Solutions from Industrial Society to the Problems of Industry

Based on knowledge and experience people are employed in industries leading to formation of various layers taking care of different job roles and responsibilities. Industrial Revolution gave birth to industries which were organised to achieve its objectives. Job roles decided expertise, division of labour and degree of responsibility and thus created vertical and horizontal set up in the organisation. Occupation hazards are associated with industries which require matching counter balance in the form of money, perks, glamour and other welfare measures.

As workmen, supervisors, executives, policymakers are associated with any industry, a stratum is formed which gives feeling of differentiation, status-consciousness, inferiority-superiority complex etc.

4. Industrial Relations

Industrial relations play vital role in development of industries in any country. The management policies, its objective, long-term and short-term goals decide its working environment. In-short, we can say the mission andvision of any company in theory and practice speak about the company. Therelationship between workman and management has to be harmonious forindustrial rest and once that is there, industrial progress is bound to happen.

Production has to multiply. The production coupled with quality is the needfor growth of any industry. Industrial Sociology helps in achievement of thisobjective. Important factors playing great roles in good industrial relationsare rates of wages, working conditions, welfare measures, recruitment policy, job-security etc. Welfare measures are widely covered under the heading offood, cloth and house (roti, kapda aur makan). Industrial Sociology is gainingimportance due to its role played in taking care of all these discussed matters.

Mutual trust, sense of belonging, feeling of ownership, team spirit are knitting social industrial fabric which ultimately result into higher quality production and give sustenance and thus growth is achieved. Initial steps of ladder ofhierarchy of needs of Maslow viz. food, safety and security are very important to be given top-most priority to make workmen take their duty seriously.

5. Division of Labour

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Every one cannot do everything. In India, caste system worked well earlier. In fact, people were easily adopting family profession. However, with good progress in education people started coming out of family business.

The sharpening of mind, learning skills of other’s profession and zeal and zest make people go for the occupation which make them happy.

“Doing what you like is freedom, liking what you do is happiness.”

—AMYOB

Thus caste system, which earlier caused impediment in economic progress, is losing its effect. Not by design but by default, industrial progress caused mingling particularly in industrial society. Thus caste-system is being eliminated and division of labour is made based on certain other factors viz. innate ability, training, choice etc. Now scientific division of labour in industry demands good knowledge as per profession. Here, role of industrial sociology comes to play.

6. Economic Planning

After India gained freedom, the progress of nation was to be carried out on solid foundations and thus it adopted Five-Year Plan growth approach.

Called temples of modern India by first Prime Minister of India Jawaharlal Nehru, industrial growth was aimed in five-year plan to solve many problems arisen mainly out of population. Illiteracy, low level of wages, corruption, lack of trained people and professional approach are some of the problems which require intervention of industrial sociologists.

7. Industrial Automation

Industrial revolution came with onset of mechanisation. The increased requirements of people necessitated invention of steam engine to mechanise processes such as cloth weaving in England. More automation means less manual work and in turn less employment. It gave more profits to industrialists and so more automation was opposed by workmen’s unions. Here role of industrial sociologist brings solution to the dispute.

8. Industrial Management

Industrial management requires scientific approach to take care of turnover, sustenance of activity, quality and other variable factors. Human approach is given in industrial management where all elements of production are most efficiently employed without any exploitation.

9. Integration of Family

The unit of any society is family which requires special attention. Any disturbance caused due to any social evil such as alcoholism, insufficient housing, bad recreation, uncontrolled media, print as well as electronic would disorganise industrial society in particular. Disintegration of family is bound to happen. Industrial Sociology gives insight leading to solutions of many problems arisen out of progress in industries.

QUESTIONS

1. What is sociology?

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2. What is industry?

3. Define industrial sociology.

4. What is Corporate Social Responsibility (CSR)?

5. How psychology, sociology and economics are related?

6. What is organisational sociology?

7. Explain importance of task of sociology.

8. What is the significance of social relations in industry?

9. What are the benefits which increase significance of industrial sociology?

10. What is Maslow’s hierarchy of needs?

11. How industrial relations play important relations in growth of industry?

12. What do you understand by division of labour?

Fill in the blanks:

1. Sociology is a systematic study of .................. relations.

2. From food gatherer man has become food .................. .

3. Man is naturally .................. .

4. Things produced in industry undergo both quantitative and ................. changes.

5. Four Ms that Man, Material, Machinery and .................. are factors of production.

6. According to MacIver and Page, “Sociology is about social relationships, the network of relationships, we call .................. .”

7. If there is a group of persons standing at Railway Station or any other public place who have no relation among them, such a group would fall beyond the purview of .................. .

8. Problem of slums is a direct outcome of industrial .................. .

9. .................. has been more specific and advanced the study of the social system of the factory and of the influences internal to the factory which affect that system.

10. A sudden voluntary get together of human beings is example of .................. organisation.

ANSWERS TO FILL IN THE BLANKS

1. social 2. producer 3. industrious 4. qualitative

5. Money 6. society 7. sociology 8. expansion

9. Lupton 10. Informal

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Industrial society is associated with the emergence of industrialization which transformed much of Europe and United States by replacing essentially agriculture based societies with industrial societies based on the use of machines and non-animal sources of energy to produce finished goods. Industrial societies are in a continual state of rapid change due to technological innovations. The high level of productivity in industrial societies further stimulates population growth where people start living in cities and urban areas.

New medical technologies and improved living standards serve to extend life expectancy. The division of labor becomes complex with the availability of specialized jobs. The statuses are achieved rather than ascribed. The family and kinship as social institutions are relegated to the background. It is becomes a unit of consumption. There is breakup of joint family system and nuclear family units become prominent. The influence of religion diminishes as people hold many different and competing values and beliefs. State assumes central power in the industrial societies. Industrialism is associated with the widening gap between two social classes of 'haves' and 'have nots'.The rich or the capitalist class is seen as exploiting class and the poor class known as working class is seen as exploited. However in most of the industrial societies there is steady reduction in social inequalities. Industrial societies have given rise to number of secondary groups such as corporations, political parties, business houses and government bureaucracies, cultural and literary associations. The primary groups tend to lose their importance and secondary groups come to the prominence.

Industrialization

The process by which traditionally nonindustrial sectors (such as agriculture, education, health) of an economy become increasingly similar to the manufacturing sector of the economy.

2. Sustained economic development based on factory production, division of labor, concentration of industries and population in certain geographical areas, and urbanization.

Industrialisation (or industrialization) is the process of social and economic change that transforms a human group from an agrarian society into an industrial one. It is a part of a wider modernisation process, where social change and economic development are closely related with technological innovation, particularly with the development of large-scale energy and metallurgy production. It is the extensive organisation of an economy for the purpose of manufacturing.

Industrialisation also introduces a form of philosophical change where people obtain a different attitude towards their perception of nature, and a sociological process of ubiquitous rationalisation.

There is considerable literature on the factors facilitating industrial modernisation and enterprise development. Key positive factors identified by researchers have ranged from favourable political-legal environments for industry and commerce, through abundant natural resources of various kinds, to plentiful supplies of relatively low-cost, skilled and adaptable labour.

As industrial workers incomes rise, markets for consumer goods and services of all kinds tend to expand and provide a further stimulus to industrial investment and economic growth.

The first country to industrialise was the United Kingdom during the Industrial Revolution commencing in the eighteenth century.

By the end of the 20th century, East Asia had become one of the most recently industrialised regions of the world .

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Urbanization

Urbanization, urbanisation or urban drift is the physical growth of urban areas as a result of global change. The United Nations projected that half of the world's population would live in urban areas at the end of 2008.[2]

Urbanization is closely linked to modernization, industrialization, and the sociological process of rationalization. Urbanization can describe a specific condition at a set time, i.e. the proportion of total population or area in cities or towns, or the term can describe the increase of this proportion over time. So the term urbanization can represent the level of urban relative to overall population, or it can represent the rate at which the urban proportion is increasing.

Causes

Urbanization occurs naturally from individual and corporate efforts to reduce time and expense in commuting and transportation while improving opportunities for jobs, education, housing, and transportation. Living in cities permits individuals and families to take advantage of the opportunities of proximity, diversity, and marketplace competition.

People move into cities to seek economic opportunities. A major contributing factor is known as "rural flight". In rural areas, often on small family farms, it is difficult to improve one's standard of living beyond basic sustenance. Farm living is dependent on unpredictable environmental conditions, and in times of drought, flood or pestilence, survival becomes extremely problematic. In modern times, industrialization of agriculture has negatively affected the economy of small and middle-sized farms and strongly reduced the size of the rural labor market.

Cities, in contrast, are known to be places where money, services and wealth are centralized. Cities are where fortunes are made and where social mobility is possible. Businesses, which generate jobs and capital, are usually located in urban areas. Whether the source is trade or tourism, it is also through the cities that foreign money flows into a country. It is easy to see why someone living on a farm might wish to take their chance moving to the city and trying to make enough money to send back home to their struggling family.

There are better basic services as well as other specialist services that aren't found in rural areas. There are more job opportunities and a greater variety of jobs. Health is another major factor. People, especially the elderly are often forced to move to cities where there are doctors and hospitals that can cater for their health needs. Other factors include a greater variety of entertainment (restaurants, movie theaters, theme parks, etc.) and a better quality of education, namely universities. Due to their high populations, urban areas can also have much more diverse social communities allowing others to find people like them when they might not be able to in rural areas.

These conditions are heightened during times of change from a pre-industrial society to an industrial one. It is at this time that many new commercial enterprises are made possible, thus creating new jobs in cities. It is also a result of industrialization that farms become more mechanized, putting many labourers out of work. This is currently occurring fastest in india.

Economic effects

One of the last housebuildings in the growing city of Kstovo, such as the one in the background

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As cities develop, effects can include a dramatic increase in costs, often pricing the local working class out of the market, including such functionaries as employees of the local municipalities. For example, Eric Hobsbawm's book The age of the revolution: 1789–1848 (published 1962 and 2005) chapter 11, stated "Urban development in our period [1789–1848] was a gigantic process of class segregation, which pushed the new labouring poor into great morasses of misery outside the centres of government and business and the newly specialised residential areas of the bourgeoisie. The almost universal European division into a 'good' west end and a 'poor' east end of large cities developed in this period." This is likely due the prevailing south-west wind which carries coal smoke and other airborne pollutants downwind, making the western edges of towns preferable to the eastern ones. Similar problems now affect the developing world, rising inequality resulting from rapid urbanisation trends. The drive for rapid urban growth and often efficiency can lead to less equitable urban development, think tanks such as the Overseas Development Institute have even proposed policies that encourage labour intensive growth as a means of absorbing the influx of low skilled and unskilled labour.[10]

Urbanization is often viewed as a negative trend, but can in fact, be perceived simply as a natural occurrence from individual and corporate efforts to reduce expense in commuting and transportation while improving opportunities for jobs, education, housing, and transportation. Living in cities permits individuals and families to take advantage of the opportunities of proximity, diversity, and marketplace competition.

Environmental effects

The urban heat island has become a growing concern and is increasing over the years. The urban heat island is formed when industrial and urban areas are developed and heat becomes more abundant. In rural areas, a large part of the incoming solar energy is used to evaporate water from vegetation and soil. In cities, where less vegetation and exposed soil exists, the majority of the sun’s energy is absorbed by urban structures and asphalt. Hence, during warm daylight hours, less evaporative cooling in cities allows surface temperatures to rise higher than in rural areas. Additional city heat is given off by vehicles and factories, as well as by industrial and domestic heating and cooling units.[15] This effect causes the city to become 2 to 10 °F (1 to 6 °C) warmer than surrounding landscapes.[16] Impacts also include reducing soil moisture and intensification of carbon dioxide emissions.[17]

In his book Whole Earth Discipline, Stewart Brand argues that the effects of urbanization are on the overall positive for the environment. Firstly, the birth rate of new urban dwellers falls immediately to replacement rate, and keeps falling. This can prevent overpopulation in the future. Secondly, it puts a stop to destructive subsistence farming techniques, like slash and burn agriculture. Finally, it minimizes land use by humans, leaving more for nature.

Suburb

The word suburb mostly refers to a residential area, either existing as part of a city (as in Australia and New Zealand) or as a separate residential community within commuting distance of a city (as in the United States and Canada). Some suburbs have a degree of administrative autonomy, and most have lower population density than inner city neighborhoods. Suburbs first emerged on a large scale in the 19th and 20th century as a result of improved rail and road transport, leading to an increase in commuting. Suburbs tend to proliferate around cities that have an abundance of adjacent flat land.[1] Any particular suburban area is referred to as a suburb, while suburban areas on the whole are referred to as the suburbs or suburbia, with the demonym for a suburb-dweller being suburbanite.

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Industrial Metropolises

Characteristics

Densely populated urban centers

More diverse and younger than the national average

Median income is $10,000 higher than the national county average

Likely to vote Democratic

Factory systems and its fore-runners:

In history all starting points and ends of epochs are arbitrary. The temporal sequence of events neither starts with the opening sentence nor stops at the end of the volume. The standard solution to this problem has been to date all modern economic developments from the so-called industrial revolution around the end of the eighteenth century. Aside from the increasingly evident difficulty of determining when the industrial revolution started, when it ended, and in what it consisted, it is important for an understanding of modern large-scale production and distribution to look briefly at the principal technological, economic, and social transformations that preceded the "factory system" and converged to make it possible.

Finally, the development of the factory is conditioned by a special social prerequisite in the presence of a sufficient supply of free laborers; it is impossible on a basis of slave labor. The free labor force necessary for conducting a modern factory is available only in the west in the necessary quantity, so that here only could the factory system develop. This mass of labor was created in England, the classical land of the later factory capitalism, by the eviction of the peasants. Thanks to its insular position England was not dependent on a great national army, but could rely upon a small highly trained professional army and emergency forces. Hence the policy of peasant protection was unknown in England and it became the classical land of peasant eviction. The labor force thus thrown on the market made possible the development first of the domestic small master system and later of the industrial or factory system. As early as the 16th century there was such an army of unemployed that England had to deal with the problem of poor relief.

Thus, while in England shop industry arose, so to speak, of itself, on the continent it had to be deliberately cultivated by the state,--a fact which partly explains the relative meagreness of information regarding the beginnings of workshops in English records as compared with continental. With the end of the 15th century the monopolization of industrial opportunities in Germany caused a narrowing of the field of livelihood policy and the problem of the poor became urgent. As a result the first factories arose as institutions for poor relief and for providing work. Thus the rise of shop industry was a function of the capacity of the economic order of the time to support population. When the guild was no longer able to provide the people with the necessary opportunity to earn a living, the possibility of transition to shop industry was at hand.

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The fore-runners of factory system in the west.--The industry of the craft guilds was carried on without fixed capital and hence required no large initial cost. But even in the middle ages there were branches of production which required an investment; industries were organized either through the provision of capital by the guild communally, or by the town, or feudally by an overlord. Before the middle ages, and outside of Europe, they were auxiliary to estate economy. Among establishments of the work shop type which existed alongside craft work organized in the guilds, were included the following:

1. The various kinds of mills. Flour mills were originally built by the lords, either lords of the land or judicial lords; this applies especially to water mills, control of which fell to the lord by virtue of his right to the water. They were typically a subject of banalités or legally compulsory utilization (Mühlenbann), without which they could not have existed. The majority of them were in the possession of territorial rulers; the Margraves of Brandenburg possessed no less than 56 mills in Neumark in 1337. The mills were small, but their construction was none the less beyond the financial capacity of the individual miller. In part they were acquired by the towns. Regularly they were leased by the prince or town, the lease often being hereditary; the operation was always on a retail basis. All this applies to saw mills, oil presses, fulling mills, etc., as well as grain mills. It sometimes happened that the territorial lord or the town leased the mill to urban families, giving rise to a mill-patriciate. Toward the end of the 13th century, the partician families of Cologne who held 13 mills organized an association distributing the profit in fixed shares; the organization was distinguished from a joint stock company by the fact that the mills were hired out for use, that is, exploited as a source of rent.

2. Ovens. In this connection again only those belonging to feudal landlords, monasteries, towns or princes, could produce revenue sufficient to perfect them technically. Originally they were built for the household requirements of the owners, but later their use was let for a fee and a banalité (Backofenbann) again arose.

3. Breweries. A great majority of breweries were originally built by feudal landlords and made subject to a banalité (Braubann) though destined particularly to supply the needs of the estate itself. Later the princes established breweries as fiefs and in general they made the conduct of such establishments a subject for concession. This development followed as soon as the sale of beer on a large scale began and there came to be a danger that too large a number of breweries in close proximity would fail to yield tax revenue. In the towns arose a municipal Braubann--aside from the preparation of the drink for a household--contemplating from the beginning an hereditary industry; thus the brewery was established on the basis of production for the market. Compulsory utilization of the brewery was an important right of the patricians. With the technical progress in the manufacture of beer, the addition of hops and the preparation of "thick beer" by stronger brewing, the brewery right became specialized, different types falling to different individual patrician burghers. Thus the right to brew attached only to individual patrician houses which had developed the most perfect technical methods. On the other hand there existed a right of free brewing, every citizen who possessed this right being entitled to brew at will in the established brewery. Thus in the brewing industry also we find enterprise possessing no fixed capital but operating on a communal basis.

4. Iron foundries. These became of great importance after the introduction of cannon. Italy preceded other occidental countries with its bombardieri. To begin with the foundries were municipal establishments, since the towns were the first to use artillery, Florence, as we know heading the procession. From them the armies of the territorial princes took over the use of artillery, and state foundries arose. However, neither municipal nor state foundries were capitalistic establishments but produced directly for the military-political requirements of the owner, without fixed capital.

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5. Hammer Mills. These arose with the rationalization of the working of iron. But far the most important of all such establishments worked in the field of mining, smelting, and salt production.

All the industries thus far considered are communally and not capitalistically operated. Establishments of a private economic character corresponding to the first stage of capitalism,--that is the possession of the work place, tools, and raw materials by a single owner, so that for the picture of a modern factory, only large machinery and mechanical power are wanting,--are found occasionally in the 16th century, perhaps even in the 15th century, but apparently none existed in the 14th. First arose establishments with the concentration of the workers in a single room, either without specialization of work or with limited specialization. Such industries, which are quite like the ergasterion, have existed at all times. Those in question here are distinguished from the ergasterion through working with "free" labor, although the compulsion of poverty is never absent. The workers who bound themselves to such establishments had no other choice in view of the absolute impossibility of finding for themselves work and tools, and later, in connection with poor relief, the measure was adopted of pressing people into them by force.

The organization of such a workshop, specifically one in the textile industry, is described for us by an English poem of the 16th century. Two hundred looms are collected in the work room; they belong to the enterpriser owning the establishment, who also furnishes the raw material and to whom the product belongs. The weavers work for wages, children being also employed as workers and helpers. This is the first appearance of combined labor. For feeding the workers, the entrepreneur maintained a complete staff of provision workers, butchers, bakers, etc. People marveled at the industry as a world wonder, and even the king visited it. But in 1555 at the urgent behest of the guilds, the king forbade such concentration. That such a prohibition should issue was characteristic of the economic conditions of the time. As early as the 18th century the possibility of suppressing a large industrial establishment was no longer to be thought of, on grounds of industrial policy and fiscal conditions alone. But in this earlier time it was still possible, for externally the whole distinction between the industry described and the domestic system was that the looms were brought together in the house of the owner. This fact represented a considerable advantage to the entrepreneur; for the first time disciplined work appeared, making possible control over the uniformity of the product and the quantity of output. For the worker there was the disadvantage--which still constitutes the odious feature of factory work--that he worked under the compulsion of external conditions. To the advantage for the entrepreneur of control of the work, was opposed the increased risk. If he put the looms out, as a clothier, the chance of their being all destroyed at a single stroke through some natural catastrophe or human violence was much less than with their concentration in one room; moreover, sabotage and labor revolt could not easily be employed against him. In sum, the arrangement as a whole represented only an accumulation of small industrial units within a single shop; wherefore it was so easy, in England in 1543, to issue a prohibition against maintaining more than two looms; for at most ergasteria were destroyed, not organizations of specialized and coshop and free worker.

New evolutionary tendencies first appeared with the technical specialization and organization of work and the simultaneous utilization of non-human sources of power. Establishments which internally represented specialization and co-ordination were still an exception in the 16th century; in the 17th and 18th, the effort toward founding such establishments is already typical. As non-human sources of power, the first to be considered is animal power, the capstan horse-power; natural forces came later, first water and then air; the Dutch windmills were first used to pump out the polders. Where labor discipline within the shop is combined with technical specialization and co-ordination and the application of non-human sources of power, we are face to face with the modern factory. The impetus

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to this development came from mining, which first used water as a source of power; it was mining which set the process of capitalistic development in motion.

As we have already seen, a prerequisite for the transition from work shop industry to specialization and co-ordination of labor with the application of fixed capital, was, along with other conditions, the presence of a secure market of minimum extent. Thus is explained the fact that we first meet with such specialized industry, with internal division of labor and fixed capital, working for political requirements. Its earliest forerunners were the minting works of the medieval princes; in the interests of control these had to be operated as closed establishments. The coiners, called "house associates" (Hausgenossen) worked with very simple implements but the arrangement was one of workshop industry with intensive internal specialization of labor. Thus we find here isolated examples of the later factories. With the increase in technical and organizational scope, such establishments were set up to a large extent in the manufacture of weapons, including the making of uniforms, as soon as it became gradually established that the political ruler provided the clothing for the army. Introduction of the uniform presupposes a mass demand for military clothing, as conversely, factory industry can only arise for this purpose after war has created the market. In the same category, finally, and in the first rank sometimes, belong still other industries producing for war requirements, especially powder factories.

Alongside the requirements for the army in furnishing a secure market, was the luxury demand. This required factories for gobelins and tapestries, which began to be common in princely courts after the crusades, as decorations for the originally bare walls and floors, in imitation of oriental usage. There were also goldsmith goods and porcelain,--the factories of western princes being patterned after the ergasterion of the Chinese emperors; window glass and mirrors, silk, and velvet and fine cloth generally; soap--which is of relatively recent origin, antiquity using oils for the purpose--and sugar, all for the use of the highest strata of society.

A second class of such industries works for the democratization of luxury and the satisfaction of the luxury requirements of broader masses through imitation of the produce destined for the rich. Those who could not have gobelins or buy works of art had a wall covering of paper, and thus wall-paper factories arose in the early days. Here belong also the manufacture of bluing, starch for stiffening, and chicory. The masses obtain in substitutes something to take the place of the luxuries of the upper strata. For all these products, with the exception of the last named, the market was at first very limited, being restricted to the nobility who were in possession of castles or castle-like establishments. Consequently none of these industries was capable of survival on any other basis than that of monopoly and governmental concession.

The legal position of the new industries in relation to the guilds was very insecure. They were antagonistic to the guild spirit and consequently suspect to the guilds. Insofar as they were not maintained or subsidized by the state, they at least sought to secure express privileges and concessions from the latter. The state granted these on various grounds--to guarantee provision for the requirements of noble households, to provide for the existence of the population which could no longer find support within the guilds, and finally for fiscal ends, to increase the tax paying power of the country.

Thus in France, Francis I founded the arms factory of St. Étienne and the tapestry works of Fontainebleau. With these begins a series of privileged manufactures royales for public requirements and for the luxury demand of the upper strata. The industrial development of France thus given a start takes on another form in the time of Colbert. The procedure of the state was simplified here as in England, through the granting of exemptions from the guilds in view of the fact that the privilege of a guild did not always extend over the whole town in which it was settled; for example, a considerable

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part of Paris lay outside the guild jurisdiction, and the fore-runners of the modern factories could be established in, this "milieu privilégié" without arousing opposition.

In England the guilds were purely municipal corporations; guild law had no validity outside a town. Hence the factory industry could be established, in harmony with the procedure under the domestic system and workshop industry, in places which were not towns--with the result that down to the reform bill of 1832 the new industry could not send representatives to Parliament. In general, we have almost no record of such factories down to the end of the 17th century, but it is impossible that they were entirely absent. The reason is rather that in England manufacturing could get along without the support of the state because the guild power had so far disintegrated that it no longer held any privilege which was a bar to such industry. In addition, it may undoubtedly be assumed that the development in the direction of shop production would have gone on more rapidly if conditions such as those of Germany had existed and the possibility had not been present of producing under a small master system.

In the Netherlands likewise we hear almost nothing of governmental grants of privileges. None the less, many factories were founded by Huguenots at a relatively early date in Amsterdam, Haarlem, and Utrecht, for the making of mirrors, silks, and velvet.

In Austria in the 17th century the state endeavored to attract factories into the country by granting privileges which would be a protection against the guilds. On the other hand, we also meet with the founding of factories by the great feudal lords; of these the first is perhaps the silk weaving works of the Counts of Sinzendorff in Bohemia.

In Germany the first manufactories were founded on municipal soil, and specifically in Zürich in the 16th century, when Huguenot exiles founded the silk and brocade industry here. They then spread rapidly among the German cities. In 1573 we find the manufacture of sugar and in 1592 that of brocade in Augsburg, that of soap in Nuremburg in 1593; dye works in Annaberg in 1649, manufacture of fine cloth in Saxony in 1676, cloth manufacture in Halle and Magdeburg in 1686, the gold wire industry in Augsburg in 1698, and finally at the end of the 18th century, widely scattered porcelain manufacture, partly conducted and partly subsidized by the princes.

To sum up, it must be held at present, first, that the factory did not develop out of hand work or at the expense of the latter but to begin with alongside of and in addition to it. It seized upon new forms of production or new products, as for example cotton, porcelain, colored brocade, substitute goods, or products which were not made by the craft guilds, and with which the factories could compete with the latter. The extensive inroads by the factories in the sphere of guild work really belongs to the 19th century at the earliest, just as in the 18th century, especially in the English textile industry, progress was made at the expense of the domestic system. None the less the guilds combated the factories and closed workshops growing out of them, especially on grounds of principle; they felt themselves threatened by the new method of production.

As little as out of craft work did the factories develop out of the domestic system, rather they grew up alongside the latter. As between the domestic system and the factory the volume of fixed capital was decisive. "Where fixed capital was not necessary the domestic system has endured down to the present; where it was necessary, factories arose, though not out of the domestic system; an originally feudal or communal establishment would be taken over by an entrepreneur and used for the production of goods for the market under private initiative.

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Finally, it is to be observed that the modern factory was not in the first instance called into being by machines but rather there is a correlation between the two. Machine industry made use originally of animal power; even Arkwright's first spinning machines in 1768 were driven by horses. The specialization of work and labor discipline within the workshop, however, formed a predisposing condition, even an impetus toward the increased application and improvement of machines. Premiums were offered for the construction of the new engines. Their principle-- the lifting of water by fire--arose in the mining industry and rested upon the application of steam as a motive force. Economically, the significance of the machines lay in the introduction of systematic calculation.

The consequences which accompanied the introduction of the modern factory are extraordinarily far reaching, both for the entrepreneur and for the worker. Even before the application of machinery, workshop industry meant the employment of the worker in a place which was separate both from the dwelling of the consumer and from his own. There has always been concentration of work in some form or other. In antiquity it was the Pharaoh or the territorial lord who had products made to supply his political or large-household needs. Now, however, the proprietor of the workshop became the master of the workman, an entrepreneur producing for the market. The concentration of workers within the shop was at the beginning of the modern era partly compulsory; the poor and homeless and criminals were pressed into factories, and in the mines of Newcastle the laborers wore iron collars down into the 18th century. But in the 18th century itself the labor contract everywhere took the place of unfree work. It meant a saving in capital, since the capital requirement for purchasing the slaves disappeared; also a shifting of the capital risk onto the worker, since his death had previously meant a capital loss for the master. Again, it removed responsibility for the reproduction of the working class, whereas slave manned industry was wrecked on the question of the family life and reproduction of the slaves. It made possible the rational division of labor on the basis of technical efficiency alone, and although precedents existed, still freedom of contract first made concentration of labor in the shop the general rule. Finally, it created the possibility of exact calculation, which again could only be carried out in connection with a combination of workshop and free worker.

In spite of all these conditions favoring its development, the workshop industry was and remained in the early period insecure; in various places it disappeared again, as in Italy, and especially in Spain, where a famous painting of Velasquez portrays it to us although later it is absent. Down into the first half of the 18th century it did not form an unreplaceable, necessary, or indispensable part of the provision for the general needs. One thing is always certain; before the age of machinery, workshop industry with free labor was nowhere else developed to the extent that it was in the western world at the beginning of the modern era. The reasons for the fact that elsewhere the development did not take the same course will be explained in what follows.

India once possessed a highly developed industrial technique, but here the caste stood in the way of development of the occidental workshop, the castes being "impure" to one another. It is true that the caste ritual of India did not go to the extent of forbidding members of different castes to work together in the same shop ; there was a saying --"the workshop is pure." However, if the workshop system could not here develop into the factory, the exclusiveness of the caste is certainly in part responsible. Such a workshop must have appeared extraordinarily anomalous. Down into the 19th century, all attempts to introduce factory organization even in the jute industry, encountered great difficulties. Even after the rigor of caste law had decayed, the lack of labor discipline in the people stood in the way. Every caste had a different ritual and different rest pauses, and demanded different holidays.

In China, the cohesion of the clans in villages was extraordinarily strong. Workshop industry is there communal clan economy. Beyond this, China developed only the domestic system. Centralized

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establishments were founded only by the emperor and great feudal lords, especially in the manufacture of porcelain by servile hand workers for the requirements of the maker and only to a limited extent for the market, and generally on an unvarying scale of operation.

For antiquity, the political uncertainty of slave capital is characteristic. The slave ergasterion was known, but it was a difficult and risky enterprise. The lord preferred to utilize the slave as a source of rent rather than as labor power. On scrutinizing the slave property of antiquity, one observes that slaves of the most diverse types were intermingled to such a degree that a modern shop industry could produce nothing by their use. However, this is not so incomprehensible; today one invests his wealth in assorted securities, and in antiquity the owner of men was compelled to acquire the most diverse sorts of hand workers in order to distribute his risk. The final result, however, was that the possession of slaves militated against the establishment of large scale industry.

In the early middle ages, unfree labor was lacking or became notably more scarce; new supplies did indeed come on the market, but not in considerable volume. In addition there was an extraordinary dearth of capital, and money wealth could not be converted into capital. Finally, there were extensive independent opportunities for peasants and industrially trained free workers, on grounds opposite to the condition of antiquity; that is, the free worker had a chance, thanks to the continual colonization in the east of Europe, of securing a position and finding protection against his erstwhile master. Consequently, it was hardly possible in the early middle ages to establish large workshop industries. A further influence was the increasing strength of social bonds due to industrial law, especially guild law. But even if these obstacles had not existed, a sufficiently extended market for the product would not have been at hand. Even where large establishments had originally existed, we find them in a state of retrogression, like the rural large industries in the Carolingian period. There were also beginnings of industrial shop labor within the royal fisci and the monasteries, but these also decayed. Everywhere work shop industry remained still more sporadic than at the beginning of the modern era, when at best it could reach its full development only as a royal establishment or on the basis of royal privileges. In every case a specific workshop technique was wanting; this first arose gradually in the 16th and 17th centuries and first definitely with the mechanization of the production process. The impulse to this mechanization came, however, from mining.