This chapter points out that how Industrial organizations are regarded as a social system and how the specific component leads to affect this system. Author talks about the “Industrial organization” which are performing two different functions: producing a product, creating and distributing satisfaction among its individual members. By considering these points the author takes the lead to categorize the organization in two parts viz. “Technical organization” and “Human organization”. The logical and technical organization of material, tools, machines, and finished product, including all those physical items related to the task of technical production is refer as a technical organization of the plant. On the other hand, in an organization, there are many individuals working for a common goal known as Human organization of the plant. The technical and human organizations are closely bound to each other; if the changes occur in the part of the technical part of the organization then these changes should be adaptable to the Human organization.
Now, human organization is further categorized in two parts namely, “Individual organization” and “Social organization”. The individual organization more ever is the “sentiment of the individual”, where the behavioral part of the individual towards the organization is comes into picture. The author says that these behavioral part of any individual towards the society is depends upon their social environment. These social aspects start developing from their childhood and the family group plays an important role for this social preparation. The process of this social interaction and social conditioning is the ongoing process which starts with birth and end with death. In the further section, author talks about the social organization - for the members of an industrial plant-executive, technical specialist, supervisors, factory workers, and office workers- are