DEFINITION Business“Business comprises all profit seeking activities and enterprises that provide goods and services necessary to an economic system. It is the economic pulse to a nation, striving to increase society’s standard of living. Profit is a mechanism for motivating these activities.” -Boono and Kurtz Nature of Business• Creation of Utilities • Recurring activities • Transfer of title • Mutual Benefit DEFINITION Environment“The environment includes factors outside the firm which can lead to opportunities for threats to the firm. Although there are many factors, the important factors are socio-economic, technological, suppliers, competitors and the government.” William F. Glucck and R. Jauch DEFINITION Business Environment“Business environment is the aggregate of al conditions, events and influences that surrounds and affect it.” Keith Davis Features of Business Environment 1) Environment is the Surrounding Situation: Business environment means the surrounding situation within which business organization has to operate. It is a sum total of cultural, political, economical, social, physical, technological, legal and global forces which move around the business organization. These forces collectively create a socio-economic-political situation called business environment. Environment is an inseparable part of business which can not operate in vacuum. (2) Environment is Complex: Business environment has now become extremely complex and the government intervention has become more frequent. Business environment is a complex phenomenon and also difficult to grasp and face in its totality. This is because it is governed by external factors. Environment develops by chance and not by choice. In addition, the environment factors vary from country to country. The business environment in India and in USA may not be identical. (3) Environment is Dynamic: Business environment is dynamic and perpetually evolving. It changes frequently due to various external forces i.e. economic, political, social, international, technological and demographic. Such dynamism in the environment brings continuous change in its character. Business enterprises have no alternative but to operate under such dynamic environment. The only remedy is adjust business as per environmental changes. (4) Environment is Multi Faceted: Environmental changes are frequent but their shape and character depends on the knowledge & experience of the observer. A particular change in the environment may be viewed differently by different businessmen. This change is welcomed as an opportunity by some organizations while some others take it as a threat for their survival. (5) Environment has Long Term Impact on Business: Environment has long lasting impact on functioning of business organizations. Their growth and profitability depends upon the environment under which they have to operate. Environment influences business enterprises. Such influences may be positive or negative & may affect the profitability, efficiency & development of business. (6) Environment Needs Minute Study by Business Organizations: Every business organization has to study changes constantly taking place in the environment forces. This facilitates easy adjustments of business as per environmental changes. Such adjustment is necessary for its survival and growth. Environmental factors are, by and large, external as well as uncontrollable. In view of these constraints businessmen have to study the environment minutely and face it boldly. The success of business depends on its ability to adjust itself with the local, national and international environment. (7) Environment Influences Business Organization: Business organizations have limited capacity to influence business environment as it is the result of government policies and social and technological changes which are basically external variables. (8) Environment and Business Planning go Together: Business environment and business planning are closely related concepts. In fact, planning is necessary in order to derive maximum benefit from favorable environment. Similarly, planning is useful for dealing with the problems created by unfavorable environment. (9) Environment needs Adaptability: Business have to learn adjust with ever changing business environment.. Businessmen have to adjust with the prevailing environment. This adaptability is the price or the key survival in the business world. (10) Business Environment Changes Regularly: The environment factors changes regularly. The business environment in India is totally different as was in past. Future environment is the product of past & present environ Nature of Business Environment- • Dynamic in nature • Uncertainty • Element of risk • Opportunities & threats • Internal & external factors • Economic and non-economic factors Importance/Significance/ Need of Business Environment 1. Enables to Identify Business Opportunities All changes are not negative. If understood and evaluated them, they can be the reason for the success of a business. It is very necessary to identify a change and use it as a tool to solve the solve the problems of the business or populous. 2. Helps in Tapping Useful Resources Careful scanning of the Business Environment helps in tapping the useful resources required for the business. It helps the firm to track these resources and convert them into goods 3. Coping with Changes The business must be aware of the ongoing changes in the business environment, whether it be changes in customer requirements, emerging trends, new government policies, technological changes. If the business is aware of these regular changes then it can bring about a response to deal with those changes. 4. Assistance in Planning This is another aspect of the importance of the business environment. Planning purely means what is to be done in the future. When the Business Environment presents a problem or an opportunity, it is up to the business to decide what plan would it have to come up with in order to address the future and solve the problem or utilise the opportunity. After analysing the changes presented, the business can incorporate plans to counteract the changes for a secure future. 5. Helps in Improving Performance Enterprises that are thoroughly scanning their environment not only deal with the changes presented but also flourish with them. Adapting to the external forces help the business to improve the performance and survive in the market. COMPONENTS/TYPES/ FACTORS OF BUSINESS ENVIRONMENT 1.Internal Environment: It refers to all the factors within an organization which affect its functioning. These factors are generally regarded as controllable i.e. the organization can alter or modify such factors. Some of the important internal factors are: i. Financial Capability: Financial capability factors relate to the availability, usage and management of funds and all allied aspects that have a bearing on an organization’s capacity and its ability to implement its strategies. ii. Marketing Capability: Marketing capability factors relate to the pricing, promotion and distribution of products or services and all the allied aspects that have a bearing on an organization’s capacity and ability to implement its strategies Operations Capability: Operations capability factors relate to the production of the products or services, use of material resources and all allied aspects that have a bearing on organization’s capacity and ability to implement its strategies. iv. Personnel Capability: Personnel capability factors relate to the existence and use of human resources and skills and all allied aspects that have a bearing of an organization’s capability and capacity to implement its strategies. v. General Management Capability: General management capability relates to the integration, coordination and direction of the functional capabilities towards common goals and all allied aspects that have a bearing on an organization’s ability to implement its strategies. 2. External Environment: The external environment consists of all the factors which provide opportunities or pose threats to an organization. In a wider sense, the external environment encompasses a variety of factors like international, national and local economy. Social changes, demographic variables, political system, technology, attitude towards business, energy sources, raw materials and other resources and many other macro level factors make up the external environment. i. Micro Environment: Micro external factors have an important effect on business operations of a firm. However, all micro factors may not have the same effect on all firms in the industry. For example, suppliers, an important element of micro level environment, are often willing to provide the materials at relatively lower prices to big business firms. They do not have the same attitude towards relatively small business firms. Some important micro elements of the business environment are described here: a) Customer: The prime task for any business is to attract and retain customers. This is to ensure its own long-term profitability and existence in the market. It therefore follows that the need and the desire of the customer should be monitored minutely to ensure customer delight, which will lead to the firm having an increasing number of loyal customers. Changing tastes and preferences of the customer should not only be observed as they happen, but forecasted before, and necessary corrections should be made in the product/service profile by the company. Customers are the backbone of a company and the very reason for the company’s existence. b) Products: Product factors such as the demand, image, features, utility, function, design, life cycle, price, promotion, distribution, differentiation and availability of substitutes of products or services also form an intimate part of the business environment. The product/service features are the key to attract/retain customers. c) Marketing Intermediary: This includes all those who facilitate distribution of goods from the centres of production to the various centres of consumption. These are the middlemen who form part of the distribution channel and those who help reach the product/service to the ultimate consumer. They can be few or many in number, depending on the length of the distribution chain and type of distribution system that the company adopts. If this chain is hassle free and functions without many hurdles, it eventually helps the organisation. d) Competitors: The world has become a global market. There exists tremendous competition in each and every area. There are other business entities that manufacture similar products and compete with a company for market share and turnover. These have to be managed well and market intelligence is required to find out about their future plans. These can play a major role in making or marring the fortunes of any company. e) Suppliers: An important factor in the micro environment is the supplier, i.e., those who supply raw materials and components and machines to the company. The suppliers should be reliable and act as business partners, working in coordination to fulfil the ultimate consumer expectations. If the suppliers are reliable, there is no need to keep heavy inventory stocks that increases the risk of obsolescence and damage and also blocks to working capital of the company. ii. Macro Environment: The macro environment is the larger, uncontrollable environment consisting of societal forces that affect all other environments. They offer tremendous opportunities for any business and also present threats that can harm a business in a major way. This environment becomes crucially important to understand and study for the purpose of strategic planning and decision-making. It has broader dimensions than the micro environment. It consists of individuals, groups, agencies, events, conditions and forces with which the organisation comes into frequent contact in the course of its functioning. The macro environment is actually the real environmental factor that influences the growth and structure of any business to the greatest degree. It is made up of following components: a) Socio-Cultural Environment: This consists of the society and culture of a place where the organisation is doing its business. It is a general entity and influences almost all firms in a similar manner. Some of the important factors and influences operating in the social environment are the buying and consumption habits of people, their languages, beliefs and values, customs and tradition, tastes and preferences, education and ail factors that affect the business. These factors are listed below: I. Demographic characteristics such as population, its density and distribution, etc. II. Social concerns such as the role of business in society, etc. III. Social attitudes and values such as the expectations of the society from business. IV. Family structures V. Educational levels VI. Awareness and work ethics VII. Beliefs and value systems VIII. Local festivals b) Political Environment: The political environment consists of factors related to the management of public affairs and their impact on the business of an organization. Political environment has a close relationship with the economic system and economic policies. For Example, communist countries have a centrally planned economic system. In most countries apart from those laws that control investment and related matters, there are a number of laws that regulate the conduct of the business. These laws cover such matters as standard of product, packaging, promotion, etc. India is a democratic country having a stable political system where the Government plays an active role as a planner, promoter and regulator of economic activities. Businessmen therefore are conscious of the political environment that their organization faces. Most governmental decisions related to business are based on political considerations in line with the political philosophy followed by the ruling party at the centre and the state level. Some aspects of the political environment are as follows: I. The general state of political development II. The degree of politicisation of business and economic issues III. The level of political morality IV. The law and order situation V. Political stability VI. Political ideology and practices of the ruling party c) Economic Environment: The economic environment consists of macro level patterns related to the areas of production and distribution of wealth that have an impact on the business of an organization. Some of the important factors and influences operating in economic environment are: I. Economic stages existing at a given time in a country. II. The economic structure adopted such as capitalistic, socialistic or mixed economy. III. Economic planning, such as 5 — year plans, annual budgets, etc. IV. Economic policies, such as industrial, monetary and fiscal policies. V. Economic indices like national income, distribution of income, rate of growth and growth of GNP, per capita income, disposable personal income, rate of saving, investment, value of imports and exports, balance of payments etc. VI. Infrastructural factors such as financial institutions, banks, modes of transportation, communication facility, energy sources, etc. d) Regulatory Environment: The regulatory environment consists of factors related to the planning, promotion and regulation of economic activities by the Government that have an impact on the business of an organization. Some of the important factors and influences operating in the regulatory environment are as follows: I. The constitutional framework, directive principles, fundamental rights and distribution of legislative power between Central and State Government. II. Policies related to licensing monopolies, foreign investment and finance of industries. III. Policies related to distribution and pricing and their control. IV. Policies related to imports and exports. V. Other policies related to the public sector, small — scale industries, sick industries, development of backward areas, control of environment pollution and customer protection. Business and Industry operate within a regulatory environment. The relationship between industry and the regulatory environment exists as a two – way process. The Government lays down the policies, procedures and rules according to which the industry functions. There are a number of administrative controls over business that are exercised through the regulatory mechanism. Some of the important areas of control are: 1) Industrial policy and licensing; 2) Monopolies and restrictive trade practices. 3) Legislation related to a company’s operation. 4) Import and export control and control over foreign exchange; 5) Control over foreign investment and collaboration; 6) Control through consumer protection; and 7) Control of environmental pollution e) Technological Environment: The technological environment consists of those factors related to knowledge applied and the materials and machines used in the production of goods and services that have an impact on the business of an organization. For many enterprises, technology is the most dynamic of all environmental factors. An individual firm is concerned with its product and process technology. This environment consists of those factors that involve any type of technological advancement or lack of the same. Some of the specific factors that can be described are as follows: I. Sources of technology like company sources, external sources and foreign sources. II. Technological development, stages of development change and rate of change of technology and research and development. III. Impact of technology on human beings, the man – machine system and the environmental effects of technology. IV. Communication and infrastructural technology and technology in management. V. Technological obsolescence. In the Indian context, we find the state of technological development varies among different sectors of the industry. Generally it is felt that the technological aspect of competition varies with customer needs and Government policy. Technology is often used as a strategic weapon by companies operating in highly competitive environment. f) Demographic Environment: This environment deals with the composition and characteristics of the population of a place. All the relevant descriptions of the population of a place with respect to its demographic profile will affect business decisions drastically. It would be in the interest of any firm to consider these aspects in detail before planning the strategy. It includes factors such as: I. Average family size II. Size of population III. Educational levels IV. Economic stratification of the population V. Job profiles and Income levels VI. Sex ratio composition of the population VII. Life expectancy VIII. Religion, Caste and customs and traditions IX. Spatial mobility of the population ENVIRONMENT ANALYSIS The approach of analyzing the environment is formal forecasting and there are various techniques to it. Environmental Analysis Can Be Divided Into Two Parts 1. Environmental Evolution- It can be completely predictable and sometimes it is dependent upon actions of the firm or other entities in the environment. Sometimes changes in one segment may be the result of driving forces in another segment. It includes: a) Types of changes b) Forces driving change c) Type of future evolution 2. Stages of Environmental Analysis: i. Scanning Scanning involves general surveillance of all environmental factors and their interaction in order to a) identify early signals of possible environmental change and b) detect environmental change already underway Scanning is ambiguous environmental activity. The relevant data for scanning is unlimited but a scattered and vague. Environmental scanning is used as an overview wide range of phenomena in the environment, projected usually in a time period beyond the typical formula planning range and designed to stimulate thinking of managers and staff about potential events that will have an important impact on company affairs Significance of Environmental scanning1. 2. 3. 4. 5. 6. optimum utilisation of resources strategic management starts with environmental scanning helps in converting threats into opportunities constant monitoring of the environment useful for the managers and compare the overall economic performance of the companies Prediction of future. Methods of Environmental Scanning1. ETOP analysis Environment threat and opportunity profile – It is a technique to structure the environment for fundamental business analysis. It was developed by Glueck. The preparation of ETOP involves dividing the environment into different sectors and then analyzing the impact of each sector on the organization. A comprehensive ETOP requires sub dividing each environmental sector into sub-sectors and then the impact of each sector is described in the form of a statement. A summary of ETOP may only show the major factors for the sake of simplicity. 2. SWOT Analysis SWOT analysis is a strategic planning technique used to help a person or organization identify strengths, weaknesses, opportunities, and threats related to business competition or project planning.] It is designed for use in the preliminary stages of decision-making processes and can be used as a tool for evaluation of the strategic position of a city or organization. It is intended to specify the objectives of the business venture or project and identify the internal and external factors that are favorable and unfavorable to achieving those objectives. Users of a SWOT analysis often ask and answer questions to generate meaningful information for each category to make the tool useful and identify their competitive advantage. SWOT has been described as the tried-and-true tool of strategic analysis but has also been criticized for its limitations. Strengths and weakness are frequently internally-related, while opportunities and threats commonly focus on the external environment. The name is an acronym for the four parameters the technique examines: • • • • Strengths: characteristics of the business or project that give it an advantage over others. Weaknesses: characteristics of the business that place the business or project at a disadvantage relative to others. Opportunities: elements in the environment that the business or project could exploit to its advantage. Threats: elements in the environment that could cause trouble for the business or project. ii. MonitoringMonitoring involves tracking the environmental trends sequence of events or stream of activities. The purpose of monitoring is to assemble sufficient data to discuss whether certain trends and patterns are emerging. iii. Forecasting-Forecasting is concerned with developing probable projections of the direction, scope and intensity of Environmental change. It tries to leave the evolutionary path of anticipated change. Methods of forecasting are- a) b) c) d) e) Expert Opinion Market Experiments Survey Delphi Method Time series Analysis o o o o Trend Analysis Seasonal Analysis Cyclical Patterns Random Fluctuations f) Scenario Planning g) Issue Analysis h) Trend Projections o Graphical Method o Least Square Method Assessment –Scanning , monitoring and forecasting and not end in themselves unless teir output are assessed to determine implications for the organizations current and potential strategies, scanning, monitoring and forecasting simply provides nice to know information. Assessment involves identifying & evauation how & why current and projected environmental changes affect or wil affect strategic management of the organization. iv. Objectives of Environmental Analysis• • Analysis should provide understanding of current & potential change taking place in the task environment Environmental Analysis should provide inputs for strategic decision making Limitations of Environmental Analysis • Environmental Analysis does not foretell the future, nor does it eliminate uncertainty for any organization. • • • Environmental analysis on & off itself is not a sufficient guarantor of organizational effectiveness. The potential of environmental analysis is often not realized because how it is practiced. Too much reliance is often placed on the information collected through environmental scanning. SOCIAL RESPONSIBILTY OF BUSINESS “Social responsibility of business refers to the obligation of business to pursue those policies to make those decisions or to follow those lines of action which are desirable in terms of the objectives and value to the society.” Howard R. Bowen EXAMPLES OF SOCIAL RESPONSIBILITY • • • Lupin Laboratories launched “Lite for Life” programme in 1973 to control and eventually eliminate tuberculosis from India. Finolex industries started the Hope Foundation in 1979 for the detection and treatment of cancer. Microsoft Corporation donated $100 million for the containment of AIDS in India. AREAS/ SCOPE OF SOCIAL RESPONSIBILTY • • • • • Environment Consumers Product Marketing Human Resources ➢ Fair Employment Treatment ➢ Employee advancement ➢ Employee safety and health • Community involvement SOCIAL RESPONSIBILTY INTERSEST GROUP OF BUSINESS TOWARDS DIFFERENT 1. Responsibility towards Owners/ Investors• • • • • • To assure a fair, reasonable rate and regular return on investment of owners or shareholders. To ensure the safety of investment . To strengthen financial position of the company so as to ensure capital of the company. To keep the owner well informed about the progress and financial position of the company. To safeguard the assets of the business. To protect the interest of all types of investors in the business. 2. Responsibility towards employees: • • • • • • To pay the fair wages and salaries to its employees so that they may satisfy their needs and lead a good life. To provide the good working conditions to maintain the health of the workers. To provide the service benefits such as hosing and medical facilities, insurance in the business. To win the cooperation of the workers by the creation better human relations in the business. To recognize the workers rights to participate in decisions affecting their working life, to form trade unions and to go on strike for the protection of their interests. To provide adequate opportunities to the workers to develop their skills through training and education. 3. Responsibility towards customers- • • • To produce the goods which meet the needs of the consumers of different classes, tastes and with different purchasing power. To provide the goods to customers at reasonable prices. To provide prompt, adequate and courteous services to the consumers. • • • • To handle the customers grievances quickly and carefully. To ensure regular supply of goods and services To ensure that advertisement and the other statement issued by the business are truthful. To follow fair trade practices. 4. Responsibility towards the Suppliers- • • • • To ensure regular payments to the suppliers. To assist the small scale suppliers by placing orders with them. To avoid exploitation of the suppliers. To help the suppliers in improving the quality of their products. 5. Responsibility towards Government- • • • • • • To abide by the laws of the nation and also the policies or guidelines issued by the government. To pay taxes honestly and in time to the government. To avoid corrupting government employees. To discourage the tendencies of concentration of economic power and monopoly. To encourage fair trade practices in the country. To adopt fair dealings in foreign trade. 6.Responsibilty towards community and society- • • • • • • • • • To work for the improvement of the local environment where the plant is located. To provide for welfare of the local community through opening dispensaries, etc. To ensure safety of local surroundings. To take steps against air, water and noise pollution. To ensure efficient use of national resources. To generate employment opportunities To provide high quality product to the society. To improve the quality of life of the workers. To preserve and promote social and cultural values. 7. Responsibility towards creditors- • • • Provide accurate information regarding the financial position of the organization. Ensure a reasonable price for the articles supplies, and make prompt repayments. Promote a healthy atmosphere where creditors are treated as patterns in a co-operative endeavor. BUSINESS ETHICS The term business ethics refers to the system of moral principles and rules of conduct applies to business. Business should be conducted according to certain self recognized moral standards. IMPORTANT BUSIESS PRINCIPLES THAT A BUSINESS SHOULD FOLLOW • • • • • • • • • • Do nor deceive or cheat customers. Do not resort to hoarding or black marketing. Do not destroy competition. Ensure sincerity and accuracy in advertising and packaging. Do not tarnish the image of competitors by unfair practices. Make accurate business records available to all authorized persons. Pay taxes and discharge other obligations promptly. Ensure payment of fair wages and treatment of employees. Do not refrain from real feedback from stakeholders. Discharge all business agreements honestly. BUSINESS AND CULTURE According to Samovar and Porter (1994), culture refers to the cumulative deposit of knowledge, experience, beliefs, values, attitudes, meanings, hierarchies, religion, notions of time, roles, spatial relations, concepts of the universe, and material objects and possessions acquired by a group of people in the course of generations through individual and group striving. Gudykunst and Kim (1992) see culture as the systems of knowledge shared by a relatively large group of people. Characteristics of Culture • • • • • • Culture has five basic characteristics: It is learned, shared, based on symbols, integrated, and dynamic. All cultures share these basic features. Culture is learned. It is not biological; we do not inherit it. Much of learning culture is unconscious. We learn culture from families, peers, institutions, and media. The process of learning culture is known as enculturation. While all humans have basic biological needs such as food & sleep the way we fulfill those needs varies cross-culturally. Culture is shared. Because we share culture with other members of our group, we are able to act in socially appropriate ways as well as predict how others will act. Despite the shared nature of culture, that doesn’t mean that culture is homogenous (the same). The multiple cultural worlds that exist in any society are discussed in detail below. Culture is based on symbols. A symbol is something that stands for something else. Symbols vary cross-culturally and are arbitrary. They only have meaning when people in a culture agree on their use. Language, money and art are all symbols. Language is the most important symbolic component of culture. Culture is integrated. This is known as holism, or the various parts of a culture being interconnected. All aspects of a culture are related to one another and to truly understand a culture, one must learn about all of its parts, not only a few. Culture is dynamic. This simply means that cultures interact and change. Because most cultures are in contact with other cultures, they exchange ideas and symbols. All cultures change, otherwise, they would have problems adapting to changing environments. And because cultures are integrated, if one component in the system changes, it is likely that the entire system must adjust Layers of Culture • National level, depending on country or countries (for people who migrated during their lifetime • Regional and / or ethnic and / or religious and / or linguistic affiliation level, because most nations are composed of different cultural and / or ethnic and / or religious and / or linguistic regions • Gender level, depending on the person’s gender • Generation level, which separates the parents’ generation from the children’s etc. • Level of social class, associated with educational opportunities, occupation or profession • Organizational level, depending on how employees have been socialized into the organization process of their work Culture and Organisation Behaviour The cultural impact on management is reflected by several basic beliefs and behaviours1. Centralized vs. Decentralized Decision Making- In some societies, all important organisational decision is made by top managers. In others these decisions are diffused throughout the enterprise and middle and lower level managers actively participate in and make key decisions. 2. Safety vs. Risk- In some Societies organisational decision makers are risk and have great difficulty with conditions of uncertainty. In others, risk taking is encouraged and decision making under uncertainty is common. 3. Individual vs. Group reward- In some countries, personnel who do outstanding work are given individual rewards in the form of Bonuses and commissions. In other cultural norms require group rewards and individual rewards. 4. Informal vs. Formal Procedures- In some societies much is accomplished through informal means. In others, formal procedure are set forth and followed rigidly. 5. Co-operation vs. Competition- Some societies encourage co-operation among their people and encourage competition among their people. 6. Stability vs. Innovation- The culture of some countries encourages stabilities and resistance to change. The culture of others put high value on innovation and change. TECHNOLOGICAL DEVELOPMENT AND SOCIAL CHANGE According to Hans Gerth & Wright Mills, Social Change refers to “To whatever may happen in the course of time to the roles, the institutions or the orders comprising the social stucture: their emergence, growth and decline. • Technology and Industrialization: Technology has contributed to the growth of industries or to the process of industrialization. Industrialization is a term covering in general terms the growth in a society hitherto mainly agrarian of modern industry with all its circumstances and problems, economic and social. • Technology and Modernization: Modernization is a process that indicates the adoption of the modern ways of life and values. It refers to an attempt on the part of the people particularly those who are custom-bound to adapt themselves to the present-time, conditions, needs, styles and ways in general. • Development of the means of transport and communication: Development of transport and communication has led to the national and international trade on a large scale. The road transport, the train service, the ships and the airplanes have eased the movement of men and material goods. Post and telegraph, radio and television, newspapers and magazines, telephone and wireless and the like have developed a great deal. • Transformation in the economy and the evolution of the new social classes: The introduction of the factory system of production has turned the agricultural economy into industrial economy. The industrial or the capitalist economy has divided the social organization into two predominant classes-the capitalist class and the working class. These two classes are always at conflict due to mutually opposite interest. • Technology and Unemployment: The problem of unemployment is a concomitant feature of the rapid technological advancement. Machines not only provide employment opportunities for men but they also take away the jobs of men through labor saving devices. This results in technological unemployment. • Technology and war: The dangerous effect of technology is evident through the modern mode of warfare. The weaponry has brought fears and anxieties to the mankind. They can easily destroy the entire human race reveal how technology could be misused. Thus greater the technological advancement the more risk for the mankind. • Changes in social institutions: Technology has profoundly altered our modes of life. Technology has not spared the social institutions of its effects. The institutions of family, religion, morality, marriage, state, property have been altered. Modern technology in taking away industry from the household has radically changed the family organization. Many functions of the family have been taken away by other agencies. Religion is losing hold over the members. People are becoming more secular, rational and scientific but less religious in their outlook. Inventions and discoveries in science have shaken the foundations of religion. The function of the state or the field of state activity has been widened. Modern technology has made the states to perform such functions as -the protection of the aged, the weaker section and the minorities making provision for education, health care etc. Transportation and communication inventions are leading to a shift of functions from local government to the central government of the whole state. The modern inventions have also strengthened nationalism. The modern governments that rule through the bureaucracy have further impersonalized the human relations. The most striking change in modern times is the change in economic organization. Industry has been taken away from the household and new type of economic organizations have been set up such as factories, stores, banks, corporations etc.
