Joint Family System | Characteristics | Impact on Business

Joint Family System

Joint family system is a very old concept. Under this system, all members of the family would live together and enjoy the income of the family.

Joint Family System - Characteristics, Impact on Business
Image: Joint Family System – Characteristics, Impact on Business

Here the father, mother, sons, daughters, sons-in-law, daughters-in-law, grand children, uncles, Aunts and other close relatives live as one big family. The land and properties are commonly owned and they work together to fulfill their wants. Generally, there is a kind of social security for the weak and poor. It provides an insurance against unemployment.

Characteristics of Joint Family System

The joint family system has the following characteristic features:

1. The head of the family is given maximum power and authority.

2. The land and property belong to the family as a whole. The head of the family considered as trustee of the property.

3. Income sources are pooled together.

4. All members earn as per their capacity but spend as per the needs of the family.

5. Same gods and goddesses are worshiped.

6. Joint family has common sufferings and rejoicing.

7. Family as a whole owns the entire means, production and consumption.

8. There is security against unemployment, sickness, old age etc.

Why is there nuclear family system mostly in Cities and towns

The joint family system in India does not exist in cities and towns due to the following reasons.

1. Rise in Educational level.

2. Desire for Independence.

3. Economic Independence of Women.

4. Development of Transport and Communication facilities.

5. Impact of Western culture.

6. The increasing pressure of population on land.

7. Industrialization.

8. Spirit of individualism.

Impact of Joint Family System on Indian Business

Joint family system has a positive impact on social and cultural level in India. However, it exerts a negative influence on Indian business.

In joint family system, all members of the family live together and in such a set up increase in number of members will result in increase in population without the creation of additional purchasing power particularly for luxurious goods. It is meaningless as far as business concerns are concerned.

In a joint family system, members of the family hesitate to move away from their family for taking up employment in distant place. It makes cost of labor high. The orthodoxy and conservatism in joint family system leads to technological backwardness in Indian business.

In India, people are still in joint family system more especially in rural areas. The desire for living an independent life among economically self-sufficient people may be there. But their number is not very high.