CHAPTER Ⅰ

INTRODUCTION
 INTRODUCTION

Employee Welfare is an essential part of social welfare. It means the adjustment of

the labour’s work life, social life and family life to the society. The concept of welfare is
necessarily dynamic, bearing a different interpretation from country to country, from time to
time and even in the same country according to the value system, social institution, degree of
industrialization an general level of social and economic development. Even within one
country, its content may be different from region to region.

Employee has an important role in the industrial production of the country. The
personnel management really concerns with the management of the people at work.
Management is the art of getting work done by the people. Therefore, it is very necessary to
seek the co-operation of the employee force in order to increase the production and to earn
higher profits.

The term “Welfare” is derived from the French phrase Welfare ‟which means to Farewell
“The Chambers D economic and social” (RajibLochan, 2002).

Rapid industry alizarin and urbanization have made employees dependent a capitalist.
Inflation has resulted in poverty, since majority of the population finds it difficult to maintain
the standard of life. In such situation employee welfare facilities enable workers to live a
richer and more satisfactory life.

Employee welfare measures are also known as employee service programmers.

Employees enjoy these services (Such as canteens, crèches, Education and recreation
facilities, etc.,) without any reference to the specific work done by them. In the case of
economic benefits (such as unemployment compensation for employment injury, retirement
benefits, medical and maternity benefits, etc.,) their amounts is not predetermined and can be
ascertained only after the event.

Employee has a vital role to play in the economic development of the country. This is
the day in which we are living, having the concept recognized as “Workers are partners of the
company”. Gone are those days of ill-treatment of employee and the persecution of the rights
of employee. Employee should be kept satisfied to work for the organization and ultimately
the nation as a whole. Hence employers have started expanding welfare activities to their
employees (Chandrasekhar. S, 2001).

THE WELFARE MEASURESARE

 To provide industrial peace.

 To build up actable labour force.

 To work as advice to promote employee efficiency.

 To increase the standard of living of the workers.

 To improve their lotions between employers and employees.

DEFINITION AND CONCEPTS

INDUSTRIAL RELATIONS

The term, Industrial relations is used to denote the collective relationship between
management, employees and government in any industrial or non–industrial organization.

EMPLOYEE WELFARE MEASURES

Employee welfare work is undertaken by various groups within and outside an

organization to improve the living conditions of workers. Employee welfare facilities enable
workers to live a richer and more satisfactory life. Labour welfare and social security
measures are also known as employee service programmed as fringe benefits.

According to the concise Oxford Dictionary employee welfare or labour welfare

means “the efforts to make life worth living for workman”. In the words of Arthur James
Todd “Employee welfare means anything done for the comfort and improvement of the
employees over and above the wages paid.”
 According to an international employee organization report “Workers” welfare may
be understood as including such services, facilities and amenities as may be established in the
vicinity of undertakings to perform their work in healthy and congenial surroundings and to
avail themselves of facilities which improve their health and bring high morale (Asian
regional conference).

PERSONNEL MANAGEMENT

Personnel management is that part of the management function which is primarily

concerned with human relationships with in an organization. Its objectives are the
maintenance of those relationships on a basis which, by consideration of the welfare being of
the individual, enables all those engaged in the undertaking to make their maximum personal
contribution in the effective working of the under taking.”

THEBRITISH INSTITUTE OF PERSONNEL MANAGEMENT, [Link]

Personnel management as, “that part of the management function, which is concerned
with people at work and their relationship with in an enterprise. Its aim is to bring together
and develop into an effective organization, the men and women who make up on enterprise
and, having regard to the wellbeing of an individual and of working groups, to enable them to
make their best contribution to its success” (Tripathi).

TRADE UNION

According to [Link], “A Trade union means an association of workers in one or

more occupations – an association carried on mainly for the purpose of protecting and
advancing the member’s economic interests in connection with their daily work”.
EDWIN [Link] “PRINCIPLES OF PERSONNEL MANAGEMENT”
DEFINES PERSONNEL MANAGEMENT AS FOLLOWS

“The personnel function is concerned with the procurement, development,

compensation, integration and maintenance of the personnel of an organization for the
purpose of contributing towards the accomplishment of that organization’s major goals or
objectives. Therefore personnel management is the planning, organizing, directing and
contributing of the performance of those operative functions” (Tripathi, [Link]).

DALE YORDER IN HIS, “PERSONNEL MANAGEMENT AND INDUSTRIAL

RELATIONS” DEFINES

Personnel management as the manpower management that effectively describes the

process of planning and directing the application development, and utilization of human
resources in employment. The terms “Personnel management”, “Manpower management”,
“HRM”, “HRD” are used inter changeably to denote the major functions of recruiting,
training, developing and utilizing human resources for the prosperity of the organization and
also for the total growth of the individuals involved in the management process.

Human resource management is of comparatively recent origin. It started in the last part at
the 19th Century it is a relatively a new specialized area, as compared with manufacturing and
marketing. Human resource management cannot be separated from the basic management
function. Human resource management is a complicated area as it deals with human beings
involved in a variety of tasks and activities. A wide range of issues viz. converting manpower
planning, recruitment of personnel, human resources accounting, training and development
and human relations in the organisation are dealt with in the human resource management
wing of management.

SOCIAL SECURITY

According to lord Beveridge, social security, “Is an attack on five giants viz, want,
disease, ignorance, squalor and idleness.” This concept is related to social justice and equality
([Link] 2005).
IMPORTANCE OF HUMAN RESOURCE MANAGEMENT

Management is the Art & science of optimum utilization of resources. Resources are
three kinds Viz, human ware, orgoware and info ware. Workers, supervisors, managers and
other employees directly involved in the organization form “human-ware”. Materials,
machine, money infrastructure and organization together for Margo ware. Knowledge skill
technology etc., are covered by “info ware”. Human ware become most important of all,
because it has a dual role to play. Human beings influence the effective utilization of
“orgoware” and “Info ware”.

All other resources are being influenced by the single resource, the human ware Mary
Parker Fillet defined management as the “Process of getting work done through other
people”. The emphasis is manpower Japan has realized this aspect. Their “Focus on people”
is the main reason for the success of the Japanese management. Globalisation and
liberalization of economy have once again highlighted the importance of human resource
[Link]‟s Mission statement reads as follows, “a manager’s most important and
serious problems is people. People, product and money are the three key elements. But
people are by for the most important”(NairN.G, 1988).

WORKER

Worker means a person employed directly or through any agency (including a

contractor) with or without the knowledge of the principal employer, manufacturing process
or in cleaning any part of the machinery or premises used for a manufacturing process or in
any other kind of work incidental to or connected with in the manufacturing process, or the
subject of the manufacturing process but does not include any member of the armed forces of
the union (M.R. Sreenivasan, 2006).

EMPLOYEEWELFARE

Employee welfare, also referred to as betterment work for employees; relates to

taking care of the well-being of workers by employer’s trade unions, Government and Non-
Government agencies.
TYPES OF WELFARE ACTIVITIES

The meaning of employee welfare may be made clearer by listing the activities and
facilities which are referred to as welfare measures. A comprehensive list of welfare activities
is given by Moorthy in his monumental work on employee welfare. He divides welfare
measures into two broad groups namely (K. Aswathappa 2005).

 Welfare measures inside the workplace.

 Welfare measures outside the workplace.

 Each group includes general activities.

WELFARE MEASURES INSIDE THE WORK PLACE (I)CONDITIONS OF THE

WORK ENVIRONMENT

a) Neighbourhood safety and cleanliness: attention to approaches.

b) Housekeeping, upkeep premises, compound wall, lawns, gardened. Agrees and

ingress passages and doors, white washing of walls and floor maintenance.

c) Workshop (room) Sanitation and cleanliness, temperature, humidity, ventilation,

lighting elimination of dust, smoke, fumes, gases.

d) Control of efficient

e) Convenience and comfort during work. Operations posture, seating arrangements.

f) Distribution of work hours and provision for rest hours, meal times and breaks.

g) Workman’s safety measures, i.e., maintenance of machines and tools, fencing of

machines providing guards, helmets, aprons, goggles and first-aid equipment.

h) Supply of necessary beverages and pills and tablets i.e., salt tablets, milk, and soda.

i) Notice boards, posters, pictures, slogans, information or communication.

II) CONVENIENCES

a) Urinals and lavatories, washbasins, bathrooms, provision for spittoons and waste

disposal.

b) Provision of drinking water and water coolers;

c) Canteen services; full meal and mobile canteen.

d) Management of workers; cloak rooms; rest rooms, reading room and library.

III) WORKERS HEALTH SERVICE

Factory health centre, dispensary, ambulance, emergency aid, medical examination

for workers, health education, health research and family planning services.

IV) WOMEN AND CHILD WELFARE

Antenatal and postnatal care, maternity aid, crèches childcare, women general
education, separate services for women workers i.e., lunch rooms, urinals, restrooms, women
recreation(indoor) and family planning services.

V) WORKERS RECREATION

Indoor games: strenuous games to be avoided during intervals of work.

VI) EMPLOYMENT FOLLOWUP

Progress of the operative in his work, his adjustment problems with regard to
machines and workload, supervisors and colleagues and industrial counselling.

VII) ECONOMIC SERVICES

Co-operatives, loans, financial grants; thrift and saving schemes; budget knowledge;
unemployment insurance, health insurance, employment bureau, profit sharing and bonus
schemes, transport schemes, provident fund, gratuity and pensioner wards and in centiles,
workmen’s compensation for in jury and family assistance in times of need.
viii)LABOUR MANAGEMENT PARTICIPATION

a) Formation and working of various committees, i.e., works committee, safety

committee, canteen committee, consultation in welfare area, in production area, in the

area of administration, and in the area of public relations.

b) Workmen “arbitration council.

c) Research bureau.

WELFARE MEASURES OUTSIDE THE WORKPLACE

 Housing: bachelors, quarters, family residence according to types and rooms.

 Water, sanitation, and waste disposal.
 Roads, parks, lighting, and recreation, and playgrounds
 Schools, nursery, primary, secondary and high school. .
 Markets, co-operatives, consumers and credit societies.
 Bank
 Transport
 Communication: Post, telegraph hand telephone. Health and medical services,
dispensary, emergency ward, outpatient and inpatient care, family visiting, and
family planning, Recreation.
 Games, clubs, craft centres, cultural programmes, i.e., music clubs, interest and
hobby circles, festival celebrations, study circles, reading room and library, open
air theatre, swimming pool, athletics, and gymnasia.

 Watch and ward security.

 Community Leadership development: council of elders, committee of

representatives, and administration of community services and problems, child,
youth and women’s clubs.
TYPES OF EMPLOYEE WELFARE MEASURE SERVICE

Employee welfare service can be classified into two

 Intra-mural

 Extra-mural

INTRA-MURAL

Activities consist of such welfare schemes provided with in the factories as medical
facilities, compensation with accidents, provision of crèches and canteens, supply of drinking
water washing and bathing facilities, provision of safety measures such as fencing and
covering of machines, good layout of the machinery and plant, sufficient lighting, first aid
appliances, fire extinguishers; activities relating to improving conditions of employment,
recruitment, discipline and provision of provident fund, pension and gratuity, and maternity
benefits etc.

EXTRA-MURAL

Activities cover the services and facilities provided outside the organization such as
housing accommodation, indoor and outdoor recreation, amusement and sports, educational
facilities with adults and children, provision with libraries and reading rooms.
EMPLOYEEWELFARE IN INDIA

The Medlock Commission was appointed by the Government of Bombay in 1884 to

review the working condition of the Factories Act of [Link] origin of employee welfare
activities in India may be tracked to the 1 st world war of 1914-1918 till then welfare of the
workers was hardly through of owing to the ignorance and illiteracy of the workers
themselves, the short sightedness of the employers, the carelessness of the site, and the
influences of the public. Since First World War it has been expanding on a voluntary basis.

International employee Organization (1919) has also played an important role in the
areas of employee welfare and India being a found remember followed International
Employee Organization (ILO) in this respect so many Employee Legislation have been
enacted by the central and state Government, which have laid down the minimum standards
of employment and working conditions.

Apart from states, employers, trade unions and social organization, function as
agencies for the implementation of Employee welfare measures. The prosperity of industry
and labours employed in the industries depends on the effective performance of the employee
welfare and personnel management department.
In order to meet the needs of the transforming social structure, to promote industrial
improvement, and to accelerate economic development, the two vocational training centres in
northern and southern Taiwan and regional employment service centres consult industry's
need and provide job training, for example, the operation, furniture-making and plumbing, as
well as other fields. Provincial Government owned banks have also been asked to provide
starter loans to help young trainee so pinup their own business.

EMPLOYEE WELFARE IN TAMILNADU

The Tamil Nadu Employee Welfare Board was constituted by the Government of
Tamil Nadu in the year 1971 by an executive order of the Government ([Link] No.222
Employee Depts., dated: 20.2.1971) with the view to promote the Welfare of the employees
and their dependents within hoc grant of Rs.5 lakh. The Tamil Nadu Employee Welfare Fund
Act, 1972 was passed by the State and was given effect from
1.1.1973.

The Statutory Employee Welfare Board was formed with effect from 1.4.1975 with
the Minister in charge of employee as chairman, five representatives of employees, five
representatives of employers, three members of state legislative assembly, four official
members and two non- official members.

BENEFITS OF EMPLOYEE SERVICE

 Service like housing schemes, medical benefit and education and recreation
facilities with the workers family’s helps to create better good will. This helps
them devote mind towards their work to gain terms of productivity and quality of
work.
  Welfare facility provide better physical and mental better physical and mental
health to the employees.
 Employee’s service serve to maintain some degree of peace of with the employee
union.
 Employees secure the benefits of high efficiency, cordial industrial relations and
low lab absenteeism and turnover.
 Employee’s welfare measures rate lab our productivity and bring industrial peace
and cordial labour absenteeism relation.
 An employee is able to abstract talented works with the employee market by
providing welfare facilities.

IMPORTANCE OF THE STUDY

Statutory welfare measures consisting of statutory and non- statutory are essentials to
motivate the employees to their effective task performance. Provision to adequate employee-
welfare measures involves continuous improvement of employees, and their capabilities and
improving the quality of their life.

Employee welfare measures are under taken with a view to building up better relations
with employees. Employee welfare has become a very wide subject, comprehensive and
controversial whether in private or public sector. The welfare services that are taken for
granted today were looked upon in earlier days as charity for the poor and the unfortunate.
Every organization needs effective employee force to increase the efficiency and productivity
of the entire organization. For this adequate statutory and non-statutory welfare measures
should be provided by the organization. So this study aims to examine adequacy of existing
employee welfare measures provided by the Salem Co-operative Sugar Mills Ltd., and to find
out how for employees are satisfied with these statutory and non- statutory welfare measures
provided by the organization

STATEMENT OF THE PROBLEM

The sugar industry has a catalyst role in the area of literacy. Sakthi Sugar Ltd., is a leading
industry among the Co-operative sugar mills. Welfare measures play a vital role on the
productivity of the worker. These include the provision of housing, education, medical,
recreation, transport, and such of the facilities. These facilities are to be provided to the
workers sometimes as per the statutory requirements and sometimes purely on voluntary
basis depending on the financial soundness of the organization. Under a competitive
industrial climate, the health of the company is measured in terms of the industrial relations it
maintains with the workers. Necessarily, this warrants the provision of welfare measures to
the workers. The present study aims at answering the following two question.

1. The type of statutory welfare measures provided by the sample company and to know
how far the sample employees are satisfied by the welfare measures.
2. The type of non-statutory welfare measures provided by the sample company and to
know how far the sample respondent satisfied by such measures

HYPOTHESES

1. There is no significant difference among the popular factors which influence labour
welfare measures among the employees.
2. The various factors considered in the study do not influence labour welfare measures
among the employees.
3. Employees of SCSM Ltd., do not differ in their opinion about labour welfare
measures.
4. The demographic variables of employees have no effect on their labour welfare
measures.

OBJECTIVES OF THE STUDY

 To study the employee welfare measure practiced by the company.

 To study the degree of satisfaction of the employee regarding the measures.
 Toanalyse the socio–economic conditions of the employee.
 To suggest necessary change for the improvement of the existing facilities.
 SCOPE OF THE STUDY

 The main purpose of the study is to analyse the employee welfare in Sakthi sugars.

 The studies help to identify of the effectiveness of the employees ‘welfare program.

 To find out the employee satisfaction with the welfare program given by the

organization.

 This study aims to find out the satisfaction of the employee, whether the company is

providing necessary health, safety welfare measures in Sakthi sugar.

 LIMITATIONS OF THE STUDY

o The study was purely based on the information given by the employees and

there are chances for giving wrong data.

o Employee are very busy in their work so they gave answer very much in the

questionnaires method.

o Certain employees were biased in answering to the questions.