Chapter. 12

“Sociology of the Economy”

BY:J.Q

Economy

- it refers to the structuring and functioning of the development and utilization of human and natural resources in the production, processing, distribution and consumption of material goods and services.

Importance

- influence habits, skills, knowledge, expectation, motivation

- affects social norms, values and personal relationship within the society

Functions of the Economy:

1. It provides physical subsistence for a society.

2. It generates as well as incorporates social changes for the continuity of society.

3. The economy maintains a balance with the other social systems and among its subsystems in the production, distribution, and consumption of economic goods and services.

4. The economic institution indicates the nature of social stratification in the society, shows class and mobility differences in relation to status differentials and reflects relative ranking.

The social structure of Economy Economic systems are classified:

- underdeveloped or developed

- agricultural or industrial

- substinence or mechanized

- capitalistic or communistic

Scales in classifying the level of economy:

1. the number and types of occupation that people engage in.

2. the use of money as a medium of exchange

3. the extent and degree of application of mechanized power to economic activities

4. family income and expenditures.

5. the quantity and quality of material possessions.

6. the prevailing social norms and value orientation on property, work, exchange, leisure and others.

Social Subsystems of Economy

Social subsystems includes :

1. Property

2. Technology

3. Division of labour

4. Organization of work

1. Property – refers to the network of rights and duties of one person

or group as against all other persons and groups ( Davis, 1949)

It can be differentiated as:

- private property

- public property

Private property – free from direct and state controls and is generally

transferred from the owner to their duly designated heirs.

Ex: land, buildings , money

Public property – is subject to governmental restraints and is placed

under the control of the different social subsystems of the government.

Ex. parks, playgrounds, streets, sidewalks, schools, libraries and other property regularly used by the general public

2. Technology - consists of the knowledge, skills, and attitudes necessary to

convert available resources into objects people need and want.

-views technology as the major factor which influence the behaviour and attitudes of the people ( Haralmbos and Holborn, 1990)

Technological advances consist of 3 factors:

1. creative, reasonable idea

2. practical application

3. diffusion through society

Characteristics of Population that affect technology are:

1. the rate of its growth

2. the directions of its mobility

3. the density or pressure of its distributions

4. its supply of technically skilled workers, technicians, and managers.

5. its value orientation and beliefs with regard to the acceptance or rejection of technological innovations.

Importance aspects of the social organization in relation to technology are:

1. the size and homogeneity of the population

2. the structure of leadership and followership and their corresponding personality characteristics.

3. the types of social interactions involved

Some criteria on which to base the extent and possibilities of technological development are:

1 accumulated body of technological knowledge

2. technical skills

3. institutional structures and value orientation

4. population growth

3. Division of Labor - is the specialisation of cooperating individuals who perform

specific tasks and roles

- represents the differentiation of functions.

4. Organization of Work - concerned with the application of sociological principles to

the study of economic structures and the values and ideologies.

- management of solving problems in relation to economy.

THE END..