Factory System

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37
Nature and Characteristics of Factories

37.1 Introduction
The factory system of production is the outcome of industrial revolution in England during the last quarter of the eighteenth-century. Changes in the methods of agricultural and industrial production, transport and communications, overtime led to commercial orientation of society world wide with emphasis on production of goods and services for market, and not for self consumption, exchange of goods and services for money, existence of profit motive, specialisation and division of labour, and marketing activities in terms of buying, selling, and risk bearing. The growth of capitalist enterprise in India started with mining and plantation, followed by manufacturing industries. It was the factory system of production which brought about a gradual development of the organised sector of manufacturing industries in India.

37.2 Objectives
After studying this lesson, you will be able to :


explain the meaning of the term ‘factory’;



describe the characteristics of factory organisation;



familiarise yourself with important terms used in connection with factories e.g., manufacturing process, occupier of the factory, workers etc; and

2 :: Commerce (Business Studies)



describe the factors that led to the development of factory system in India.

37.3 Meaning and characteristics of Factory
Let us first take the meaning of the term factory and describe the characteristics of the factory system.
The term factory is defined to mean any premises
i)

Wherein ten or more workers are working, or were working on
any day of the preceding twelve months, and in any part of
which a manufacturing process is being carried on with the aid of power.

ii)

Wherein twenty or more workers are working, or were working
on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power.

From the above definition, the characteristics of a factory may be stated to be as follows:—
a)

factory is a premises:

b)

in such a premises, or in any of its part, workers are engaged in a manufacturing process; and

c)

ten or more workers are working with the aid of power or twenty or more workers are working without the aid of power. In other words the minimum number of workers must be ten in case
power is used to carry out manufacturing process and it must be twenty if power is not used, for the premises to be a factory.

A premises would be called factory when the characteristics mentioned above are fulfilled. The legal meaning of the term factory does not include a kitchen, or the activity of showing movie films. But a restaurant can be considered as a factory, when the characteristics mentioned above are fulfilled. Railway workshops come within the meaning of factory, but ‘Railway running shed’, does not. To regulate the working of factories, the Government of India passed

Nature and Characteristics of Factories :: 3

a legislation which is the Factories Act, 1948. It is under this law that the conditions of work in factories, are regulated. It coveres different aspects of labour welfare, conditions of work, safety measures in the work place, etc.

Intext Questions 37.1
1A

Fill in the blanks with suitable words:
i)
ii)

It was the -_________ which led to the development of
Indian industries.

iii)

The development of organised sector of manufacturing
industries in India followed _________ .

iv)

In order to regulate the growth of factories in India, the
Govt. of India enacted a legislation known as the
_________ .

v)

1.B

_________ is the result of industrial revolution in England;

Commercial orientation with emphasis on production of
goods and services, profit motive, specialisation and
division of labour and activities in terms of buying, selling, and risk bearing is the result of the _________ in India.

State whether the...
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