UNIT 10

SOCIOLOGY OF
MANAGEMENT AND
BUSINESS ADMINISTRATION
Meaning
Management sociology is the boundary synthetic or interdisciplinary
science studying sociological aspect of administrative activities. It is well known
that the primary goal of sociology is an objective analysis of social relations in
order to reveal the laws and principles in regard with sociology of management
which can diagnose and cure the organizational issues on a sustainable basis.
The term management combines planning ,organizing, staffing ,leading or
directing and controlling an organization effectively and expertly.
Hence ,sociology of management allows us to
see management with the critical eyes .In
brief ,we can list out:
◦ It helps to understand cultural diversity and social capital.
◦ It provides the knowledge towards group dynamism.
◦ It helps to see the issues through cross cultural perspective.
◦ It helps to develop analytical skill grounded on social forces.
◦ It helps to handle employees and creating their ownership towards organization.
◦ It helps to establish public relations through social trust.
◦ It provide market opportunities exploring through research engagement.
Hence sociological knowledge helps in diagnosing and
curing the management problems.
◦ It helps to understand multicultural society and multinational products.
◦ Sociologist and Anthropologist use cross-cultural perspective to see the organizational issues rationally.
◦ It helps in understanding cultural diversity, social capital and group dynamism.
◦ It helps to learn to communicate effectively with people from a variety of background ,cultures, and places.
◦ It helps to solve problems associated with the inequalities in the distribution of authority and power.
◦ It helps to solve problems with technological gap and difference in socialization process.
◦ It helps in provision of qualitative and quantitative research methods.
◦ It focus on group management and systematic observation with detailed record keeping.
◦ It helps to communicate effectively with diverse audience such as
consumers,donors,clients,shareholders,internal staff and members.
◦ It helps to perform goal oriented evaluations and risk assessment.
 In order to overcome organizational problems certain steps
can be taken into considerations for proper benefits. The
major steps are:
◦ Statement of the organizational problems or problematization of research specific question.
◦ Research question mediated through academic guesses.
◦ Collecting primary and secondary data by using appropriate and adequate tools and techniques.
◦ Interpreting and analyzing data statistically and logically.
◦ Drawing conclusions with respect to the needs of concerned clients.
Organizational culture
The business community was introduced to the idea of corporate culture in the 1980’s via the management
consulting industry. Culture is deeply rooted in the life of each organization member and exerts influence on a variety
of day to day activities like how decisions are made, how resources are allocated, who gets promoted and what
behaviors are considered appropriate and other. Cultures are such powerful influencers of behavior, managers must
work hard to understand and mange them rationally. The organization maintains its culture by removing employee who
don't follow the rules and regulations. For the most organizations, it is a continuous struggle to establish and maintain
cultural stability and order. The stronger the shared commitment to a core set of values, the more likely these value will
shape the preferences and actions of people in an organization.

There is a dialogic relationship between management and sociology for sharing formal commitment to rationality
and objectified reality. Hierarchy based organizational structure could meet the goal of an organization. According to
time and context organizational goals are changeable hence working procedures also gets changed as viewed by
contextualist.
Analysis of Organization
Organization analysis is very essential for understanding its characteristics as well as its development
analysis which helps in growth, development and sustainability of an organization. It is helpful in bringing
out the changes within an organization. The way of analyzing an organization depends upon the needs and
requirement of an organization.
Organization can be analyzed by looking at:
◦ Arrangement of elements-study of organizational structure
◦ Organizational perspective or institutional perspective-examining norms, values or
beliefs,assumptions,rituals and patterns as well as expectations.i.e.Organizational structure and system.
◦ Actions, system of division labor-Functioning and processes i.e organizational design and its working
procedures through relationship hierarchically.
Network and Organization
◦ Network is a link or connection that cements individual creating a system of participants. The actors in
networks are linked by variety relationship or interest. People have direct connection with one another on
the basis of requirement mediated through political interest ,mutual recognition and personal benefits.
Network analysis is important as it helps to examine structural arrangement as well as patterning of social
relationship within and between organizations. Social groups are important source of networks. Network
denotes web of social ties that connect individual on the basis of common identity or interaction for the
collective goods. It has been define as set of rules and set of ties representing some relationships for mutual
benifits.In order to analyze organization in a holistic manner administrator should have open mend to learn
and to have broader vision for the upliftment of organization at one hand provide justice and citizenship to
the employees to the other.
Importance of Network
◦ Network serves as an asset to individuals, groups and organizations.
◦ It helps in understanding planning, motivating as well as regularizing behaviors on the workforce.
◦ It is beneficial for enhancing relations.
◦ The management can get feedback from analysis of network within and across organization.
◦ It helps in survival,growth,development as well as stability of organization.
◦ It helps to cooperate the organizations.
◦ It helps to exchange and share information and resources.
 Theoretical Perspective on Organizations
Different theoretical lens have been developed by different scholars in different time and space in order to see
how organization works. They are:
◦ Bureaucratic or Mechanistic Theory
◦ Scientific Management theory
◦ Human relations theory
 1.Bureaucratic or Mechanistic Theory
This theory was found by Max Weber. This theory is very
powerful and influential to see how modern organizations are
achieving their goal. An individual is recruited on the basis of
qualification, skill and experiences. Each unit of organization
is coordinated and interconnected for complete existence.
2.Scientific Management theory
This theory was proposed by Frederic W.
Taylor. For scientific management
skill,punctuality,professionalism,busy schedule,obessed
with work and commitment of achieving goal are important
enablers. This theory assumes that by using skill and
professionalism it is possible to meet organizational goal.
 3.Human relations theory
This theory came into existence as a reaction against scientific management
theory proposed by Taylor. This theory argues that employee also needs the
citizenship of organization, his own identity, psychological security through trust and
equal footing. In order to achieve the organizational goals it brings human beings and
physical resources together in a coordinated and controlled mechanism. Sociology
has always been centrally concerned with the relationship between individuals and the
social structures in which they live. This theory aims to create harmonious worker
manager relationship that creates conductive atmosphere for working.Trust,human
values, self esteem and human dignity is enhanced for the betterment of an
organization.
Major Approaches to Sociology of organization
In order to see the organizational issues and problems different approaches have been developed by different
scholars in different time and space. They are:
1.Classical Approach: Karl Marx a renowned German scholars, political economist of nineteenth century has
examined and its expansion of productive forces. Class struggle between owner vs. Labors had been generated
during industrialization period. According to him all organization need to be understood in terms of underlying
conflict of classes that occur in capitalism.
2.Authoritarian and power Approach: Max Weber a renowned scholar and sociologist view the organizations
through power and authority approach. He traces out different powers like traditional power ,charismatic power and
legal power which do functions in society. Organizational authority is concerned with why individuals
obey,command,structure to characterize organizations in terms of authority relations within them and why people
do as they are told.
3.Analytical Approach: This approach was proposed by Robert K Merton, A Gouldner and Selznick to
review the organizational issues analytically.it aims to analyze the functions of organizations. Explicit and
implicit social enablers are analyzed academically.
4.Critical Approach: This approach was proposed by Silver Man ,Copper, Burrell and Morgan. It defines
the real sociology of organization. It aims to see the organizational problems by rupturing pre-established
set of working procedures.
Group Dynamics and Intergroup Relations
Group dynamics study is the scientific study of the interaction within small groups. It studies the
interaction within groups and the process of problem solving and decision making to gain understanding
and to solve organizational problems. Bales ,a renowned scholars developed a method for studying the
interaction with in a small problem solving group. The three stage sequence could be recognized in the
problem solving process: They are:
1.Orientation stage in which member ask and give information
2.Evaluatiuon stage in which member asses information and share opinions
3.Control stage in which members suggest solutions and reach to the conclusions.
 Factors affecting group relation

1.Composition:Characteristics of interacting members affect relationship and affect the number of resources
available to perform a task. Higher degree of similarities in terms of class,ethnicity,religion,occupation,age and
sex composition and homogenous character enhances group work more conveniently. It helps to determine the
productivity of the group.
2.Size:Group size also affects relationship and tasks. The Influence and effect of size depends on nature of task.
Higher number of group member could be more beneficial if group members are assigned individual tasks.
3.Norms:Norms are set of rules agreed upon. They are the cultural standards mediated through social values and
social code of conduct. Norms are very important for behavioral patterns.
4.Cohesiveness:Cohesiveness is the commitment to stick together. Attraction and motivation towards collective
good makes people to remain together.Integrity,solidarity and emotional attachment bind the members together.
 Social Capital
Social Capital is an important assets of an organization. It encompasses
trust,honor,love,positive emotions, positive attitudes,tolerance,mutual respect, and
honor to each other. It is the network of relationships that facilitate the production of
economic or non economic goods and services. It is the interconnection of groups
individuals bond in a network of relations directed towards collective actions or for
collective goods.
Factors for social capital
1. Group Membership: The members in social capital are literally associated with groups that are forming a
network which have interlocking relationship.Love,Cooperation,respect and collective goods are ingredients of
membership.
2. Reciprocity: Reciprocity literally indicates mutual benefits based on give and take relations. But in social
capital ,it is referred as a return will be gained sooner or later. It is a social norms where if someone does
something for you ,you then feel obligated to return the favor.
3. Trust: Trust is another important factor . Trust reduces the cost of control. Trust is very important social values
or brand for the smooth functioning.
4. Norms: In social capital ,the norms are mostly informal but stronger. Primary relationship, collective benefit
and moral obligation help to cement the relationships. Some of the scholar said that where social capital is
stronger there is high chance to accomplish the task on time with effectively and expertly.
5. Proactivity: Proactivity is an unconditional help and mutual understanding to each other.It is an important
aspect of individuals with selfless devotion.
 Functions of Social Capital
◦ It cements the close relations between and among the members.
◦ It fosters trust ,love, empathy and respect.
◦ It links the local into institutional arrangements.
◦ It helps for collective actions.
◦ It provides a climate that increases informal relationship among individuals.
◦ It can also help to introduce democracy in a country.
◦ It helps for economic growth, adaptation and holistic development.
◦ It shapes interaction patterns and intimate relations between and among actors.
Interdependence of social and technical
skills
Till 1990s,biophysical scientists used to feel that social knowledge is the barrier of
development. Indigenous knowledge or social knowledge was inferior and scientific
knowledge was superior. But 90s onward they came to realize that social knowledge and
indigenous knowledge is not barrier of development rather it is supplementary and
sustainable. Social skills can be used for counseling,motivating,understanding the cultural
sentiments and technical skill is used for computer networking, accounting and technical
report writing.
Biophysical scientist and social scientist should blend their skills and expertise for the best
result.IT engineers, accountants and other technical experts should work jointly with other
social scientists which creates synergy for achieving organizational goal. Production
department, distribution department, human resource management should work together for
better result.
 Market and political culture
Politics and economy are the two sides of same coin. Political and adopted
economic system directly influence the market and economic
influence.Production,distribution and consumption, demand supply along with
material goods and services are rooted in political culture and its policies and
programs.
Market is controlled by political ideology and political system. In capitalism there
is a provision of profit and private entrepreneurship. Production of goods and
services, accumulating extra surplus, open market policy, competition and
privatization of mode of productions and consumptions are major salient features
of political economic system that we are having today.
Work and Leisure
Work: It is a task or series of task to be taken into consideration in order
to meet bio psychological needs. It is the effort applied to produce a
deliverable task. Sometimes it is defined as such activities of production
of goods and services or social activities which usually receive rewards
or salary. It is also defined as any activity that produces something of
value for other people.
Karl Marx is of opinion that “work holds key to human happiness and the
fulfillment and is most important primary human activity that provides
the means. "His central arguments is that the value of work has
transformed into accumulation of profit rather than providing social
services. Similarly functionalist are of opinion that different types of
work created in society help to operate the social activities smoothly.
Leisure
Leisure is free time. It is spent away from business,work,domestic chores and
education. A related concept is that of social leisure which involves leisurely
activities in social settings such as extracurricular activities,e.g. games and
sports, music and dance,picnic,travelling,art of expression and other. Another
related concept is that of family leisure which is mediated through visiting
relatives, going to cinema with family members and other family gatherings and
functions. Anthropologist have found that hunter-gathers tend to have
significantly more leisure time than people in industrialized complex societies.
Anthropological field based research has revealed that tribal people are happier
than the industrialized modern and civilized people.
….cont.
According to Parker, "Leisure activities are conditioned by various factors associated with the way people work".
Scholars also argue that people take leisure so that they could contribute in their work more efficiently and
effectively.
According to C.Wright Mills “Leisure is more important ,people work very hard so that they can buy fun.”
UN has prescribed eight hours work, eight hours sleep, and eight hours leisure to an individual as human being. It is
made through human right perspective. After eight hours of daily work they do have their own leisure time.
Particularly 8 hours is spent for personality shaping time or leisure timing in which an individual has free time to
engage in creative task.
Work –aholics are those who works compulsively at the expense of other activities. They prefer to work rather than
spending time socializing and engaging in other leisure activities.
Most of the time leisure referred to as a freedom, self enjoyment and self expression.it includes individual choice
and creativity hence it is positive activity.
…….cont.
According to functionalists,entertainment,relaxation and freedom with personal
development are enhanced during leisure time which eventually helps to create
harmony and order in society. From the perspective of time, leisure means time which
is your own. Work and leisure are relative terms. The functionalist view that work
and leisure have an inter-locking relationship.
Similarly, post modernist view that the importance of work has been replaced by
leisure in post modern condition. It believes that individual rights, individual
freedom, individual choice, individual truth and individual interpretation will ruptures
the pre-established sets of structures.
 Organizational/Bureaucratic goals and societal expectation
A goal denotes desirable objectives which reflect organizational purpose and identity.
According to Weber “Selection of goal is a rational activity and they are set by rational legal approach.
Whoever set the goals they must be in consistent with the social environment in which they do
operate. It is not only beneficial for the organization but for the society as a whole.
Bureaucracy is a large scale organization of the state that provides goods and services to the people.
The public administration in many countries is an example of a bureaucracy. In our context it is called
“sarkaari adda”. The social expectation is to get public services in fair and dignified way. Bureaucracy
does the legal power to mobilize the resources and creates conductive environment for the citizens to
work upon.
Organization can’t operate its work in isolation from other social units; the goal must be relevant and
sanctioned by wider society. The goals should be set in such a way that they do not conduct
organizational activities without the values of the society.
Organizational goals and societal expectations are interconnected. It is evident that goals should not
only be designed with the objective of profit making but also consideration of the expectation of the
society.