A STUDY ON EFFECTIVENESS OF LABOUR WELFARE IN IMPROVING

EMPLOYEE PRODUCTIVITY AT MIDAS TREADES PVT LTD.

CHAPTER I

INTRODUCTION

LABOUR WELFARE:-

Labour welfare work aims at providing such service facilities and amenities which enable
the workers employed in an organization to perform their work in healthy congenial
surrounding conductive to good health and high morale.

Labour welfare is a comprehensive term including various services, benefits and facilities
offered by the employer. Through such generous fringe benefits the employer makes life
worth living for employees. The welfare amenities are extended in additional to normal
wages and other economic rewards available to employees as per the legal provisions.

Welfare measures may also be provided by the government, trade unions and non-
government agencies in addition to the employer. “International Labour Organization efforts
to make life worth living for workers” According to the Oxford dictionary “Welfare is
fundamentally an attitude of mind on the part of management influencing the method by
which management activities are undertaken.

OBJECTIVES OF LABOUR WELFARE ACTIVITIES:-

Following are the objectives of the voluntary labour welfare services by employer-

 To win over employees loyalty and increase their morale.

 To develop efficiency and productivity among workers.
 To reduce of threat of future government intervention.
 To make recruitment more effective.
 To earn goodwill and enhance public image.
 To build up stable labour force to reduce labour turnover and absenteeism.
IMPORTANCE OF LABOUR WELFARE ACTIVITIES:-

Labour welfare in India has a special significance as the constitution provides for the
promotion of welfare of the labour for human conditions of work and securing to all workers.

The various welfare measures provided by theLabourwill have immediate impact on the
health, physical and mental efficiency, alertness, morale and overall efficiency of the workers
and thereby contributing to the highest productivity.

Social security measure provided by employer will act as a protection to the workers.
Labour welfare means activities designed for the promotion of the economic, social and
cultural well being of the employees. Labour welfare includes both statutory as well as non-
statutory activities undertaken by the employers, trade unions and both the central and state
governments for the physical and mental development of the workers.

Labour welfare enables workers to have richer and more satisfying life. It raises the
standard of living of workers by indirectly reducing the burden on their pocket. Welfare
measures improve the physical and physiological health of the employees, which in turn
enhance their efficiency and productivity.

Labour welfare promotes a sense of belongings among the workers, preventing them from
resorting to unhealthy practices like absenteeism, lobour unrest strike, etc. welfare work
improves the relations between employees and employers. It promotes a real change of heart
and a change of outlook of the part of both the employers and employees.

REASONS FOR THE LABOUR WELFARE ACTIVITIES IN INDIA:-

Increase in efficiency of employees:

Labour welfare activities increases in efficiency of employees to work. These facilities help
in developing the feeling of dedication among them. Due to the increase in efficiency the
production and the productivity of the enterprise increase considerably.

Helpful in reducing the state of poverty among employees:

Most of the workers in our country are unable in providing for base necessities for
themselves and to their family members. This is because of the extreme poverty among
Indian workers. Provision of labour welfare activities plays an important role in reducing
such poverty and in providing essential amenities to the workers.
Establishment of Organizational peace:

Labour welfare activities help in establishing sound relations between employees and
employers. When the employees of the organization feels that they are getting all the possible
facilities and the employers are very caring to them, then such good feeling increases
enthusiasm among employees which will establish peace in the organization.

Helpful in reducing the rate of absenteeism and labour turnover:

The rate of absenteeism and labour turnover is much higher in India as compared to that of
developed countries of the world. Provision of labour welfare activities help in reducing this
because the workers feel themselves well settled at one place.

THE BASIC FEATURES OF LABOR WELFARE MEASURES ARE AS FOLLOWS:

 Labor welfare includes various facilities, services and amenities provided to workers
for improving their health, efficiency, economic betterment and social status.
 Welfare measures are in addition to regular wages and other economic benefits
available to workers due to legal provisions and collective bargaining
 Labor welfare schemes are flexible and ever-changing. New welfare measures are
added to the existing ones from time to time.
 Welfare measures may be introduced by the employers, government, employees or by
any social or charitable agency.
 The purpose of labor welfare is to bring about the development of the whole
personality of the workers to make a better workforce.
 The very logic behind providing welfare schemes is to create efficient, healthy, loyal
and satisfied labor force for the organization. The purpose of providing such facilities
is to make their work life better and also to raise their standard of living. The
important benefits of welfare measures can be summarized as follows:
 They provide better physical and mental health to workers and thus promote a healthy
work environment
 Facilities like housing schemes, medical benefits, and education and recreation
facilities for workers’ families help in raising their standards of living. This makes
workers to pay more attention towards work and thus increases their productivity.
 Employers get stable labor force by providing welfare facilities. Workers take active
interest in their jobs and work with a feeling of involvement and participation.
  Employee welfare measures increase the productivity of organization and promote
healthy industrial relations thereby maintaining industrial peace.
 The social evils prevalent among the labors such as substance abuse, etc are reduced
to a greater extent by the welfare policies.

The concept of ‘labor welfare’ is flexible and elastic and differs widely with times, regions,
industry, country, social values and customs, degree of industrialization, the general socio-
economic development of the people and the political ideologies prevailing at particular
moments. It is also according to the age group, socio-cultural background, marital status,
economic status and educational level of the workers in various industries.

NEED OF THE STUDY

 To know about the Constitutional provisions in MIDAS TREADES PVT LTD.

 To find whether Labor welfare helps in providing good industrial relations .
 To know about the employees satisfaction towards welfare measures.
 To find out the facilities entitled by MIDAS TREADES PVT LTD

IMPORTANCE OF THE STUDY

 It helps in improving recruitment.

 Employers get stable labor force by providing welfare facilities. Workers take active
interest in their jobs and work with a feeling of involvement and participation.
 It improves moral & loyalty of workers.
 It reduces labor turnover & absenteeism.
 It helps in increasing productivity & efficiency by improving physical & mental
health.
 It helps in improving industrial relation & industrial peace.
SCOPE OF THE STUDY

 The present study has been undertaken to study find out effectiveness of Labour
welfare measures in MIDAS TREADES PVT LTD.
 To find out the practical difficulties involved in welfare measures that can be
evaluated through this study.
 The study can be used to bring out the solution for the problem faced by the
employees availing the welfare measures.
 Through the study, company would be able to know the satisfaction level of Labour
on welfare measures.

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE:

 To study the employees welfare measures in MIDAS TREADES PVT LTD

SECONDARY OBJECTIVES:

 To identify the various welfare measures provided to the employees.

 To know their satisfaction towards the welfare measures
 To understand how welfare measures improve the motivation of the
 Employees.
 To find out employees preference regarding welfare measures which they like to have
in future.
 CHAPTER II

REVIEW OF LITERTURE

REVIEWS FOR PREVIOUS LITERATURE

Mallika.N (2008) the study found that welfare benefits not only raise the employees moral
but make it easier for employers to attract and hire competent personal. Welfare helps to
build a positive image of the organization and facilities dealing with the union. The positive
attitude among the workers will create job involvement and more faith towards their
organization. This will be achieved only by providing enough welfare measures to the
employees.

Bennet, S (2009) the study found that Industrial relations play a crucial role in establishing
and maintaining industrial democracy establishment of good industrial relations depends on
many factors maintence of good human relationship is central focus of industrial relations.
Good industrial relationships largely rely on employee welfare measures. Here is an attempt
to analyze the contributions of labour welfare measures towards good industrial
relations.

Jayaraman. S, and Chandran, C. (2010) discussed about the Quality of Work Life from the
perspectives of Nursing Professionals in health care industry and they selected QWL
dimensions such as health and well-being, job security, job satisfaction, competence
development, work life balance, control over work load, nursing leadership, control over
nursing practice, innovation and creativity, support and recognition. They reported that the
human resource practitioners and the health care organizations have to understand the factors
related to the QWL of the nurses and approach them with a humanistic way.

Sarina Muhamad Noor, and Mohamad Adli Abdullah (2011) have identified in their
study the relationship of job satisfaction, job involvement and job security with quality of
work life of employees in one of the largest multinational firm in Northern part of Malaysia,
and they selected some proposed dimensions of the QWL aspects, such as job satisfaction,
job involvement, and job security. The study revealed that there is a significant relationship
among the selected variables. Finally the study concluded that the management should
appreciate the notion that employees with high commitment and positive work attitude
contributed to the firm‟s success. Evidently, the environment should ensure that the firm
provides support to workers‟ quality of work life
Rajendran, R (2012) in his study reveals that an effort to present the various factors
governing the labour welfare measure in chemical companies which is applies in the general
aspect of Indian contract. Particularly the employees have been got several stringent in the
safety a health affect through the enormous dust and chemicalised air breathing in factory
zones in their work spot.

Sandhya Nair, G.S. (2013) study undertaken to explore the relationship between the quality
of work life (QWL) and its effect on organisational citizenship behaviour (OCB), in teachers
from aided college and management institutes in Thrissur Dustrict, Asia Pacific Journal of
Research ISSN (Print) : 2320-5504 ISSN (Online) : 2347-4793 www.apjor.com Vol: I. Issue
XLIII, September 2016 165 Kerala. Finally the result indicates the wide gap between the
social desirable class of behavior and the behavior of teachers in an observable form with
respect to their perceptions of QWL in aided colleges.

Prajapathi, D.R (2014) in his study found that quality of work life refers to the level of
happiness on dissatisfaction with one‟s career. Those who enjoy their careers are said to have
a high quality of work life, while those who are unhappy or whose needs are otherwise
unfilled are said to have a low quality of work life. The term refers to the favorableness or
unfavorableness of a total job environment for people. Poor working environment non-
uniform distribution of work load, lack of involvement in decision making and opportunity to
learn new skill.

Report of National Commission on Employee (2002), Government of

India, made recommendations in the area of Employee welfare measures which
includes social security, extending the application of the Provident Fund,
gratuity and unemployment insurance etc. Shobha Mishra & Manju Bhagat, in
their “Principles for Successful Implementation of Employee Welfare
Activities”, sated that Employee absenteeism in Indian industries can be
reduced to a great extent by providing good housing, health and family care,
canteen, educational and training facilities and provision of welfare activities.
The principle for successful implementation of Employee welfare activities is
nothing but an extension of democratic values in an industrialized society.
P.L.Rao, in his “Employee Legislation in the Making”, opines that professional
bodies like National Institute of Personnel Management should constitute a
standing committee to monitor the proceeding in the Parliament regarding the
Employee welfare measures

Binoyjoseph,josephinjodey (2009), studies in the article points out that,

the structure of welfare states rests on a social security fabric. Government,
employers, trade unions have done a lot to promote the betterment of workers
conditions.

David, A Decenzo (2001) and Stephen P. Robbinsin their book,

“Personnel / Human Resource Management explained the various benefits and
services provided by the companies to their employees. According to them, the
legally required benefits and services include social security premiums,
unemployment compensation, workers compensation and state disability
programs. They felt that the cost of the voluntary benefits offered appears to be
increasing.

Michael (2001) in his book, “Human Resource Management and Human

Relations” said that the provision of intra-mural and extra-mural welfare
facilities help in improving the quality of work life of employee’s thereby good
human relations will develop among different cadres of employees.

Punekar, Deodhar and Sankaran (2004) in their book, “Employee

Welfare, Trade Unionism and Industrial Relations” stated that Employee
welfare is anything done for the comfort and improvement, intellectual and
social-well being of the employees over and above the wages paid which is not
a necessity of the industry.

Aswathappa (2010) in his book, “Human Resource Management

“discussed the various types of benefits and services provided to employee’s in
terms of payment for time not worked, insurance benefits, compensation
benefits, pension plans etc. He also discussed the ways to administer the
benefits and services in a better way.

CHAPTER III

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Definition of Research

“The manipulation of things, concepts or symbols for the purpose of generalizing to

extend, correct or verity knowledge, whether that knowledge aids in construction of theory or
in the practice of an art.”D.Slesinger and M.Stephenson

RESEARCH DESIGN:

A research design is the arrangement of conditions for collection and analysis of data
in a manner that aims to combine relevance to the research purpose with economy in
procedure.

Regarding this project, descriptive research design concern with describing the
perception of each individuals or narrating facts on welfare measures and diagnostic design
helps in determine the frequency with which something occurs or it’s associated with
something else.

These two research design help in understand the characteristic in a given situation.
Think systematically about aspects in given situation, offers idea for probe and research help
to make certain simple decision.

DESCRIPTIVE RESEARCH
In this research it deals with descriptive research type. It includes surveys and fact-finding
enquiries of different kinds. The major purpose of descriptive research is description of the
state of affairs as it exists at present.

SAMPLE DESIGN

A sample design is a definite plan determined before any data are actually
collected for obtaining a sample from a given population. Sampling is used to collect data
from limited numbers whereas census is used for large numbers. For the research, sampling
method was used.

There are different types of sample design based on two factor namely the representation
basis and the element selection technique .There are two main categories under which various
sampling method can be put. There are

 Probability sampling
 Non probability sampling

In this particular research the A study is on probability sampling. And in the simple random
sample is used.

PROBABILITY SAMPLING:

Probability sampling is based on the concept of random selection; the sample may be
either unrestricted or restricted. When each sample elements is drawn individually from the
population at large, then the sample so drawn is known as ‘unrestricted sample’, Where as all
other forms of sampling are covered under the term ‘restricted sample’.

The most frequently used probability samples are:

 Simple random sample

 Systematic sample
 Stratified sample (proportionate & disproportionate)
 Cluster sample

NON- PROBABILITY SAMPLING:

 Non-probability sampling is that sampling procedure which does not afford any basis
for estimating the probability that each item in the population has of being included in the
sample.

 Judgment sampling
 Convenient sampling
 Quota sampling.
 Snowball sampling

SAMPLING METHOD

In this research systematic sampling method is used to collect the primary data by
using questionnaire.

POPULATION SIZE

The overall population size is 500 .

SAMPLE SIZE:

The total sample size of 100 has been taken for this study. Both male and female
employees have been interviewed.

DATA COLLECTION METHOD

PRIMARY SOURCE OF DATA

Primary data is known as the data collected for the first time through field survey.
Such data are collected with specific set of objectives to assess the current status of any
variable studied.

RESEARCH INSTRUMENT:

In this project, the data were collected through structured questionnaire.

QUESTIONNAIRE

A questionnaire is a schedule consisting of a number of coherent and

formulated series of question related to the various aspects of the under study. In this method
a pre – printed list of question arranged in sequence is used to elicit response from the
important.

Types of questions

The following are the types of questions, which are used in research. They are:

a) Open ended question

b) Close ended question

a) Open ended questionnaire:

An open-ended question gives the respondents complete freedom to decide the form length
and detail of the form.

b) Close ended questionnaire:

The close-ended question is of two types they are as follows:

Multiple – choice question.

In this case the respondents are offered two or mores choices and the respondent have
to indicate which is applicable in the following cases.

DATA COLLECTION

In order to have an accurate data, this study has gathered data though primary and secondary
sources of data.

Primary Data

Primary data are collected through individuals using structured interview schedule. Primary
data are the original source from which the researcher directly collected data, in the other
words they are first-hand information collected through various methods. The interview
schedule was pre-tested wherever possible and questions were structured to facilitate the
speedy completion.

Secondary Data
This study has also used secondary data. They were collected from research studies in
different universities relating to labours management, books, journals dealing with the
subject, websites, and various reports published by agencies working in this field are the
sources of secondary data

STATISTICAL TOOLS APPLIED

 Percentage Analysis
 Weighted Average
 One-way ANOVA

PERCENTAGE ANALYSIS:

Percentage refers to a special kind of ratio. Percentage analysis test is done to find out the
percentage of the response of the respondents. In these tool various percentage are presented
by the way of Bar-diagram, Pie charts in order to have better understanding of the analysis.

FORMULA:

Number of respondents

Percentage = ------------------------------------------------ × 100

Total number of respondent

WEIGHTED AVERAGE:

Mean in which each item being averaged is multiplied by a number (weight) based on the
item's relative importance. The result is summed and the total is divided by the sum of the
weights. Weighted averages are used extensively in descriptive statistical analysis such as
index numbers. Also called weighted mean.

FORMULA:

WEIGHTED AVERAGE = ΣWXi / ΣWi

ΣWXi = The sum of weights (let x1, x2, x3… xn)

ΣXi = occur with weights (w1, w2, w3…wn)

ONE-WAY ANOVA:

Under the one-way ANOVA, we consider only one factor and then observe that the reason
for said factor to be important is that several possible types of samples can occur within that
factor .

Analysis of varience table for one-way ANOVA

SOURCES OF SUM OF DEGREES OF MEAN SQUARE F-RATIO

VARIATION SQUARES FREEDOM

BETWEEN n1 (X1-X)2 +…+ (k-1) SS BETWEEN MS BETWEEN

SAMPLES
nk(Xk-X)2 (k-1) MS WITHIN

WITHIN ∑(Xij-X)2+….+ (n-k) SS WITHIN

SAMPLES
∑(Xki-Xk)2 (n-k)

TOTAL ∑(Xij-X)2

(n-1)

i=1,2,…
 j=1,2..

This ratio is used to judge whether the difference among several means is significant or is just
a matter of sampling fluctuations.

LIMITATIONS OF STUDY

 Time is the important limitation. Due to time constraints only limited population is
taken for the study.
 Findings based on this study cannot be used in other organizations.
 There are chances of misrepresentation responses.
 The biased view of the respondent is another cause of the limitation