NATIONAL CONFERENCE ON

EMERGING TRENDS IN THE FUNCTIONAL AREAS OF BUSINESS

TITLE

: A STUDY ON EMPLOYEE REWARDING

& SOCIAL SECURITY PRACTICES OF
LEATHER INDUSTRIES IN CHENNI

AUTHOR NAME

: Dr.C.REVATHY

QUALIFICATION

: M.com, M.phil, MBA, Ph.D

DESIGNATION

: Assistant Professor

NAME OF THE INSTITUTION

: Guru Nanak College

DEPARTMENT

: Commerce

CONTACT NUMBER

: 9884429105

E- MAIL ID

: revathyrajan25@gmail

A STUDY ON EMPLOYEE REWARDING & SOCIAL SECURITY

PRACTICES OF LEATHER INDUSTRIES IN CHENNAI

ABSTRACT
Every organization uses a variety of resources to generate revenue for a business. Amongst all
resources required for an organization, Human Resource is the most important resource. To
retain efficient and experienced workforce is very crucial in overall performance of an
organization. Rewarding and social security are most important aspect for the employee in the
industry especially for leather industries. The leather industry is an employment intensive sector.
This research study is conducted to know what the organizations are contributing towards their
employees, society and environment. The aim of this research paper is to analyses the rewarding
and social security practices of selected leather units.
Key words: Employee, Rewarding, Social Security, human resources.
INTRODUCTION
Resource means a source which can be used when needed. Every product or services can
be produced with the help of human mind, effort and man hours (working hours). Human being
is the fundamental resource for making or constructing anything.
The organizations are trying their level best to treat human capital through HR practices.
Employee rewarding and social security are essential as well as important aspect for the
employees in an organization..
Reward means a thing given in recognition of service, effort, or achievement an
employee receives in exchange for their contribution to the organization. That keeps an
employee motivated as well as gives better performance in the work and in social security that
gives security to the employees life and their family also. So an organization can achieve the
goal by giving rewards and social security benefits to the employees to make their performance
better in the workplace.

OVERVIEW OF INDIAN LEATHER INDUSTRY

The Leather Industry holds a prominent place in the Indian economy. It has the strengths
of skilled manpower, innovative technology and the dedicated support of the allied industries. It
is providing job to about 2.5 million people, mostly from the weaker sections of the society.
Women employment is predominant in leather products sector with about 30% share.
GOVERNMENT SUPPORT MEASURES:
Leather sector is one of the Focus Sectors under Foreign Trade Policy of the
Government of India.

100% Foreign Direct Investment permitted through automatic route.

Basic customs duty is exempted on machinery or equipment in leather industry.

RESEARCH METHODOLOGY
OBJECTIVES
The main objective of the study is
To analyse the employee rewarding and social security practices of the selected Leather
units of Chennai
To measure the satisfaction level of employees regarding rewarding and social security
practices in the Leather units.
SOURCE OF DATA AND SAMPLE SELECTIONS
The study is based on primary data collected through questionnaire. The study comprises
of 100 respondents collected from selected Leather units using convenient sampling techniques.
ANALYSIS AND INTERPRETATION
EMPLOYEE REWARDING & SOCIAL SECURITY PRACTICES:

In the organization, financial and non-financial rewards are always depending upon
employees performance. It gives more motivation for the employees in the work.

TABLE NO.1: SATISFACTION LEVEL OF EMPLOYEE ON REWARDING BENEFITS

Aspects

Highly

Dissatisfied

Moderate

Satisfied

dissatisfied
Salaries/
wages
Allowance /
Incentives
Bonus
Profit sharing
Promotion
policy

Highly

Total

satisfied

6 (6%)

8 (8%)

16 (16%)

63 (63%)

7 (7%)

100

7 (7%)

13 (13%)

68 (68%)

10 (10%)

2 (2%)

100

9 (9%)

14 (14%)

13 (13%)

58 (58%)

6 (6%)

100

4 (4%)

12 (12%)

73 (73%)

10 (10%)

1(1%)

100

5 (5%)

10 (10%)

75 (75%)

6 (6%)

4 (4%)

100

The above table shows that majority of the respondents satisfied with the bonus and
salaries and wages which the company is providing to the employees. The other benefits have
moderate satisfaction from respondents - especially in allowance, incentive payments, profit
sharing and promotion policy because many leather industries are not providing such benefits to
their employees.
SOCIAL SECURITY BENEFITS;
The basic purpose of social security is to protect people and their family from risks.
TABLE NO.2: SATISFACTION LEVEL OF SOCIAL SECURITY BENEFITS

Aspects

Highly

Dissatisfied

Moderate

Satisfied

dissatisfied
Retirement
benefits
Medical care

Highly

Total

satisfied

3 (3%)

2 (2%)

10 (10%)

70 (70%)

15 (15%)

100

11 (11%)

12 (12%)

65 (65%)

9 (9%)

3 (3%)

100

5 (5%)

10 (10%)

63 (63%)

17 (17%)

5 (5%)

100

5 (5%)

4 (4%)

68 (68%)

13 (13%)

10 (10%)

100

Employee
injury
benefits
Family
Insurance

From the above table it can be concluded that majority of the respondents are satisfied with
retirement benefits. There is moderate satisfaction from the respondents in medical care facility,
employee injury benefits and family insurance.
PHYSICAL ENVIRONMENT:
In Leather industries physical environment is so important for the employees. It directly
affects both the employee as well as performance of the work.
TABLE NO. 3: SATISFACTION LEVEL OF PHYSICAL ENVIRONMENT
Aspects

Highly

Dissatisfied

Moderate

Satisfied

dissatisfied
Cleanliness
Air ventilation

Highly

Total

satisfied

9 (9%)

19 (19%)

61 (61%)

9 (9%)

2 (2%)

100

8 (8%)

11 (11%)

75 (75%)

5 (5%)

1 (1%)

100

8 (8%)

16 (16%)

69 (69%)

6 (6%)

1(1%)

100

Other services
(Electrical,
Mechanical etc)

From the above table it is clear that most of the respondents are moderately satisfied with the
cleanliness, air ventilation facility and other services. Hence it can be interpreted that employees
are not thoroughly satisfied with the overall facilities offered by the leather industry.
FINDINGS OF THE STUDY
Most of the respondents in the leather industries are males.
Majority of the respondents are dissatisfied with the recognition style adopted by the
organization. The recognitions are given in the form of assigning more responsibilities on
the job itself rather than giving through awards and social acknowledgements.
The maximum number of respondents is neither satisfied nor dissatisfied with the profit
sharing benefits and promotion policy provided to the employees.
Most of the leather industries have not taken due concern to maintain the cleanliness and
also the proper air ventilation facility.

SUGGESTIONS

 The Leather industries have to take more efforts to frame effective reward structure that
can motivate the employees and also gives better performance in their work.
The management and employees should be aware of the social security schemes which
the Government has provided to the employees.
The cleanliness and proper air ventilation facility is very important and it should be
appropriately provided to the employees. Otherwise it affects the health of employees and
also their performance in the work.
The Leather industries are using Toxic chemicals for toning. It affects the society as well
as environment so necessary steps has to be taken to protect the society and environment.
CONCLUSION
Any organization that would like to be dynamic and growth oriented has to pay more
attention to the development of human resources. Therefore they should provide enough scope
for growth and development to employees and also provide ample opportunities for employees to
pursue creative new ideas to improve their performance in an organization.
REFERENCES
1. Agrawal, R.D., Dynamics of Personnel Management in India, Tata Mcgraw Hill Publishing
Co. Ltd., New Delhi, 1997.
2. Human Resource Management Journal, Vol.51, Issue 3, May-June 2012.
3. The Indian Journal of Commerce, Vol.64, No.4, October-December, 2011.
4. The International Journal of Human Resource Management, Volume 8, Issue 3, 1997.