Step 1: Characteristic 1: Structural differentiation:
Modernization involves a shift from simple, undifferentiated traditional institutions to specialised, complex modern ones, where economic, political, educational and religious functions become separate spheres instead of being fused together.
Step 2: Characteristic 2: Rationalization:
Modernization also involves rationalization, decisions and social organisation increasingly guided by scientific reasoning, efficiency and achievement-based criteria, rather than by tradition, custom, or ascribed status.
Final Answer:
Two characteristics of modernization: (1) structural differentiation of institutions, and (2) rationalization of thought, decision-making and social organisation.