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INTRODUCTION
1.0. INTRODUCTION
Human beings are considered to be the dynamic elements of management. The success
of organizations in this era of globalization hugely depends on the efforts of human
resources. Human resource is now recognized and utilized as the most valuable of all
organizational assets (Beach,1975).The resources of men, money, materials and
machinery are collected, co-ordinate and utilized through people. According to L.F.
Urwick, “business houses are made or broken in the long run not by markets or capital,
patents or equipment but by men.” Of all the resources, manpower is the only resource
which does not depreciate with the passage of time.
In the present global industrial scenario, every industry is trying its best to regain top
position in the nation. It is essential to inculcate effective provisions of welfare
measures to employees, consciousness of welfare activities both inside and outside
environment aspects in each personnel of an organization. Many companies
identified this as a major thrust area from the beginning and continuously putting
efforts for improvement in the welfare systems in a positive & effective manner in
the organization. These efforts have been appreciated and recognized by several
Government bodies.
The greatest strength of India is its rich and abundant human resources. The
prosperity of a nation or an organization depends on the proper development and
utilization of its human resources, as all other resources can be generated by a well
motivated human resource. Organizational growth, change and success ultimately
depend on the actions of human resources.
Organizations around the world are remodeling themselves as they respond to the
challenges presented by the global economy(AppleWhile,1965).Success in today’s
competitive business environment is increasingly a result of effective human
resource management. It is said that structure and method can be easily duplicated
but the most important defining factor influencing the organization is its human
resources and this cannot be duplicated.
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The quality of the human resources in organizations, their enthusiasm, commitment
and level of satisfaction which they are feeling in their jobs, sense of satisfaction
over treatment are significant factors influencing the firm’s productivity, level of
service, reputation and the survival of its human resources.
Though India is considered as one of the rich nations in terms of quality of human
resources, many companies are facing hurdles to cope with the problems created in
the area of procurement, maintenance and control of human resources.
Human Resource, which is the most significant and active factor or portion, is
considered to be the centre of all development process of the economy. But the
changing environment has led to a mismatch between the skills of the employees
and the functional roles expected from them. There is a profound truth in the HR
philosophy employed by the world’s best organizations. It acts as an asset because of
its increasing role in the organizations as key components.
It is widely accepted that, if the policies related to human resources are good and
procedures of the enterprises are closely linked with them, they can make a major
contribution to the achievement of corporate objectives and strategic plans. HRM
acts like a mediator that helps the people to share values, organizational climate and
managerial behavior.
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Organizations, worldwide, have acknowledged that, deploying the right resources to
solve the right problem at the right time is becoming increasingly critical. In the
changing scenario optimizing human and intellectual capital is the biggest challenge
organizations face.
Human Resource management consists of three parts. The first among them is
“Human’, a living and the best creature of God, who has feelings, experiences,
happiness or sorrow and, above all, is capable of thinking, expressing, desiring to
excel and achieve set goals.
The second constituent is “Resource”. Resources are available in the shape of skill,
knowledge, techniques, directions and supporting working guidelines are the tools to
put the things in shape and place a product before the general public to maximize
earnings in the shape of profits.
Human resources are knowledge, skills, creative abilities, talents and aptitudes
obtained in the population; whereas from the view point of the individual enterprise,
they represent the total of the inherent abilities, acquired knowledge and skills as
exemplified in the talents and aptitude of its employees (Leon C.Megginson,1982).
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Human Resource Management is the systematic planning and control of a network
of fundamental organizational processes affecting and involving all organizational
members. These procedures include human resource planning, job and work design,
job analysis, staffing, training and development, performance appraisal and review,
compensation and reward, employee protection and representation and
organizational improvement (French, 1977).
Human Resource Management activities are broadly classified into four functions or
categories. These include:
Acquisition process is mainly concerned with securing and employing the people
possessing required kind and level of skills necessary to achieve the organizational
objectives. The acquisition function begins with planning. It also covers other
functions such as job analysis, human resource planning, recruitment, selection,
placement, induction and internal mobility.
Development process is concerned with improving, molding and changing the skills,
knowledge, creative ability, and aptitude and values of the employees. The
development function of human resources concentrates on three dimensions which
are listed below.
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a) Employee training
Training is the process of imparting to the employees the technical and operating
skills and knowledge. It also includes changing of attitudes among workers. b)
Management Development
c) Career Development
The motivation function begins with the recognition that individuals are unique and
that motivation techniques must reflect the needs of each individual. It is an area of
management that deals with integrating people into work situation in a way that
motivates them to work together productively, co-operatively and with economic,
psychological and social satisfaction.
The maintenance process is concerned with providing those working conditions that
employees believe are necessary in order to maintain their commitment to the
organization. The objective of the maintenance function is to retain people who are
performing at high levels. This requires that the organization provides safe and
healthy working conditions and satisfactory labour relations. If these activities are
performed effectively, we can expect to have competent employees who are
committed to the organization and are satisfied with their jobs. One of the important
activities under maintenance function of human resources is employee welfare,
which is one of the key elements directly and indirectly influencing the productivity
of the organization.
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CONCEPT OF EMPLOYEE WELFARE
In today’s life style the term, ‘labour welfare’ is being viewed quite
differently. It is not been looked upon as charity, neither as an unwise investment nor
as a barren liability. When higher incentives are provided, with better welfare
measures, the motivation and sense of duty increases in the employees’ attitude, this,
in turn, leads to effective functioning and improves the productivity and helps in
achieving harmony in industrial progress.
The philosophy of labour welfare also rests on bridging the gap between the “haves”
and “have nots”. De-humanising conditions prevailing in our societies pose for a
severe threat to all walks of life, especially in the life of the working class.The
concept of labour welfare originated from the desire for a humanitarian approach to
the sufferings of the working class. Later, it became a utilitarian philosophy which
worked as a motivating force for labour and for those who were interested in it
(Vijay,1994). As a consequence of the industrial revolution, the social and economic
conditions of workers have reached their lowest ebb. Recruiting agents of the mills
treating the workers as slaves, overcrowding of workers, horrible conditions of work
and exploitation of the poor working class by the rich have presented a ghastly
picture of the inhuman conditions of the life of labour which have awakened the
public conscience in favour of establishing welfare state based on two principles
viz., the right of everyone to a job and guaranteed social establishing welfare state
avoiding the excesses of unmitigated totalitarianism on the one hand and unbridged
minimum of health, wealth and leisure(Kingsley, 1953). The idea of individualism
on the other hand, vitalised the concept of labour welfare(Vaid,1970).
The guiding principle and the ultimate aim of the various welfare programmes from the
very inception have been the improvement of standard of living of the concerned
workers and the main thrust of such programmes was to help the concerned workers,
improve their quality of life through public health, sanitation, prevention of diseases,
access to medical facilities, provision and improvement of water supply and
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washing facilities, access to utilization of educational facilities and by providing
housing, nutrition, recreation, transport and such other facilities(Mehta,1985).
Labour welfare today has become a very controversial topic It covers a very broad field.
The term welfare suggests many ideas, meanings and connotations, such as the state of
well-being, health, happiness, prosperity and the development of human resources
(Puneicar, 1998). The concept of welfare can be approached from various angles.
Welfare has been described as a total concept. It is a desirable state of existence
involving physical, mental, moral and emotional well-being. All these four elements
together constitute the structure of welfare on which its totality is based.
The social concept of welfare implies the welfare of man, his family and his
community. There is interconnection of these three aspects, in the sense that all the
three work together or individually supplement one another, in a three-dimensional
approach, each serving as ends and means.
Welfare is called a relative concept, for it is related to time and space. Changes in it
have an impact on the system of welfare as well. As welfare is growing and
dynamic, the welfare potential changes as a result of which its content keeps on
varying and has to keep pace with the changing times. Also, the characteristics of
welfare vary, for, it depends largely on the life of the community, the scientific
advancement and the development of a nation in all fields. Its meaning and content
differ from time to time, region to region, industry to industry and country to
country, depending upon the value system, level of education, social customs,
degree of industrialization and general standard of the socio-economic development
of the people (Sarma, 1991).
There are a number of definitions of the term ‘welfare’ which lead to diverse
interpretations. A precise definition of the term is thus somewhat difficult as
remarked aptly: A series of sharply, diverse opinions exist on the motives and merits
of industrial welfare work (Todd Arthur, 1933). Broadly speaking, measures and
activities undertaken by the state, employers and associations of the workers for the
improvement of the workers’ standard of life and for the promotion of their
economic and social well-being are labelled as welfare work.
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The Oxford Dictionary defines labour welfare as “efforts to make life worth living
for worker”. .
The voluntary efforts of the employer to establish, within the existing industrial
system, working and sometimes living and cultural conditions of his employees,
beyond what is required by law, the customs of the country and the conditions of the
market(Encyclopedia of Social Sciences, 1935).
Anything done for the comfort and improvement of intellectual and social, of the
employees over and above the wages paid which is not a necessity of the industry
(James Todd, 1933)
The term is one which lends itself to various interpretations, and it has not always
the same significance in different countries. Sometimes, the concept is a very wide
one and is more or less synonymous with conditions of work as a whole. It may
include not only the minimum standard of hygiene and safety laid down in general
labour legislation, but also such aspects of working life as social insurance schemes,
measures for the protection of women and young workers, limitation of hours of
work, paid vacations etc. In other cases, the definition is much more limited, and
welfare, in addition to general physical working conditions, is mainly concerned
with the day-to-day problems of the workers and the social relationships at the place
of work. In some countries, the use of welfare facilities provided is confined to the
workers employed in the undertakings concerned, while in others, the workers
families are allowed to share in many of these benefits which are made available
(ILO Report II).
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All efforts which employers make for the benefit of their employees over and above
the minimum standards of working conditions fixed by the Factories Act and over
and above the provisions of social legislation providing against accident, old age,
unemployment and sickness(Joshi, 1927).
The whole field of welfare is one in which much can be done to combat the sense of
frustration of the industrial worker, to relieve him of personal and family worries, to
improve his health, to afford him a means of self-expression, to offer him some
sphere in which he can excel others, and to help him to a wider conception of life
(Kirkaldy, 1947).
Work for improving the health, safety, general well-being and the industrial
efficiency of the workers beyond the minimum standards laid down by the Factories
Act and other labour legislation (Bhagoliwal, 1991).
Such services, facilities and amenities as adequate canteens, rest and recreation
facilities, arrangements for travel to and from the work and for the accommodation
of workers employed at a distance from their houses and such other services,
amenities and facilities as contributed to improve the conditions under which
workers are employed (ILO Conference, 1947).
The voluntary efforts of the employer to improve the living and working conditions of
his employees, the underlying assumption, of course, being that the first essentials to the
welfare of the employees are steady work, a fair wage and reasonable
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hours of labour. That the employer has a further obligation and should not attempt to
substitute welfare work for better wages and shorter hours is clear from its added
pronouncement that the spirit of the age has thrown upon the employers, duties
involving a proper regard for the comfort, health, safety and well-being of the
employees (National Civic Federation, 1955). The employees’ productivity depends
quite as much upon their environment and lies in the fourteen hours away from work, as
in the ten hours in the work, many of the programmes reach beyond the factory into the
homes of employees that include wives and children as such, the labour welfare aims to
serve to achieve humanitarian, economic and civic objectives (Wittee, 1957).
Labour welfare measures do not only consist of monetory incentives but also include
measures for human development (Galbraith, 1959).
The labour welfare contributes to the economic development by moulding the workers
into a productive, efficient and committed labour force (Dholakia, 1961).
Labour welfare has two sides, negative and positive. On the negative side, it is
associated with counter-acting of the harmful effects of large scale of
industrialisation on the personal, family and social life of the worker while on the
positive side, it deals with the provision of opportunities for the worker and his
family for a socially and personally good life(Moorthy, 1968).
It may be noted that not only the intra-mural but also extra-mural, statutory as well
as non-statutory activities, undertaken by only of the three agencies, the employers,
trade unions or the government for the physical and mental development of a
worker, both as a compensation for wear and tear that he undergoes as a part of
production process and also to enable him to sustain and improve upon the basic
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capacity of contribution to the process of production, which are all the species of the
larger family encompassed by the term labour welfare (Labour Committee report,
1969).
The term ‘welfare’, “such services, facilities and amenities as adequate canteens,
rest and recreation facilities , sanitary and medical facilities, arrangements for travel
to and from the work and for the accommodation of workers employed at a distance
from their homes and such other services, amenities and facilities, including social
security measures, as contribute to improvement in the conditions under which
workers are employed” (Labour Committee report, 1969).
Real welfare is not amenities but the right atmosphere, where the worker can breathe
the air of growth and development and think constructively, so as to understand the
play and interplay of his subconscious instincts and conscious emotions(Giri, 1972).
The industrial workers are subject to various handicaps both in their work life and in
their community life, and the removal of these handicaps is a part of the function of
labour welfare (Murthy, 1982).
Any kind of voluntary service will come under the purview of labour welfare if it
aims at helping the worker to work better and in more congenial surroundings and
also to live better in a more meaningful manner — physically, morally, economically
and intellectually (Punekar, 1984). Labour welfare has tremendous potentialities for
fostering good industrial relations (Memoria, 1985).
The modern concept of labour welfare entails all those activities of the employers which
are directed towards providing the employees with certain facilities and services in
addition to wages or salaries (Rakesh, 1989). These are not a form of employers’ good
will or charity to workers, but are facilitative services to build and maintain the morale
of the workers to achieve the objectives of the organisation. As such, it is not only in the
interest of the employees to provide them these facilities but in the interest of the
organisation to make the employees feel committed to the organisation. Hence, these are
considered merely maintenance factors and not
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motivators, yet they are necessary for the health of the organisation since they bear
close connection with the productivity of the organisation.
Labour welfare is an essential part of social welfare which, according to him, means
the adjustment of the employee’s working life and family life to the community and
social life around. He supported this argument on the ground that the health,
happiness and efficiency of each individual connote the general well-being of
all(Ghosh, 1987).
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Figure1.1: Functions of HRM
Planning
Evaluating Staffing
Functions
of HRM
Maintaining Developing
Managing
Motivating
Change
The term’ Employee Welfare’ refers to the facilities provided to an employee inside and
outside the organization premises such as canteens, rest rooms and recreation facilities,
housing and all other services that contribute to the well being of the employee and the
efficiency of the workers. The concept of ‘employee welfare’ is flexible and elastic and
differs widely with time, region, industry, social values and customs, degree of
industrialization, the general socioeconomic development of the people and the political
ideologies prevailing at a particular time.
Organization and employees should develop and progress simultaneously for their
survival and attainment of mutual goals. So, every modern management has to
develop the organization through human resources management by evolving welfare
schemes for the welfare of employees. Welfare includes anything that is done for the
comfort and improvement of employees and is provided over and above the wages.
The welfare measures need not be in monetary terms only but in any kind/form.
Employee welfare includes monitoring of working conditions, creation of industrial
harmony through infrastructure for health, industrial relation and insurance against
disease, accident and unemployment for the workers and their families. Administration
of welfare facilities involves decision on (1) welfare policy (2) organs
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of welfare (3) assessment of effectiveness. The first step in welfare administration is
to have a clearly defined policy towards it and the willingness of the management to
provide it.
Every employee needs satisfaction to continue in the same organization and perform
well for the organization. For employee satisfaction, organization needs to provide
effective welfare measures. If an employee is a worker in coal mines, he requires
development and increase in the standard of living. Welfare measures will improve
the physical and psychological health of the employees, which in turn, will enhance
their efficiency and productivity. In the present scenario, Globalization affects the
perception of the employees.
Employee Welfare is the voluntary efforts of the employer done for the comfort and
improvement of the intellectual and social life of the employees other than the
wages paid which is not a necessity of the industry. The statutory schemes are those
schemes that must compulsorily be provided by an organization as compliance to the
laws governing employees’ health and safety. The non statutory schemes are those
schemes that are not compulsory to be provided by an organization but the employer
provides them in order to improve satisfaction.
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Fig ure1.22: Types of welfa re measure s
1
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Figure No.1.3: Major Legislat0ions for W elfare Measur es
Figure No.3 depicts the provisions to the employees and labour under various Acts
which are passed after independence. Some of the important highlights of the Acts
include:
Motor Transport Workers Act, 1961 has provisions to help the manpower take rest
during daily work hours, uniform provisions to the employees and labour, first aid
facilities for restricting the impact of accidents at work place and provisions for
reasonable working hours for all the employees. The Factories Act, 1948 provides
further benefits to the employees under its various sections. The facilities like
drinking water, washing facilities, crèches, ventilation and lighting facilities have
been incorporated in the Act.
The Employees’ Provident Fund & Miscellaneous Provisions Act, 1952 ensures
Provident Fund benefits to all the working people of the organization and this act
also ensures the medical benefits to the employees in case of sickness and accidents.
The Payment of Gratuity Act, 1952 provides rights to the employees with reference
to payment of Gratuity at the time of retirement. Hence, it may be concluded that
employee welfare has been given importance by the Constitution under its various
Acts.
REVIEW OF LITERATURE
The researcher has carried out extensive review of the literature pertaining to
employee welfare and social security. The literature reviewed has been presented
here, after classifying the same as under:
Review of Books
The Royal Commission on Labour 1931 is the first major report on labour welfare in
India. This Commission made a comprehensive study on almost all the problems
relating to the labour in factories and plantations. The Commission made a series of
recommendations regarding health, safety, welfare creches and industrial centers.
This report has brought to the general view of the miseries of the workers in detail. It
traced a large number of imbalances in the life of industrial workers ranging from
industrial unrest to the housing problems of the workers.
According to the Commission the main cause of industrial unrest was the realization
by the worker that his standard of living was very low and a feeling of frustration
prevailed in him as a result of it. The Commission further revealed the lack of
commitment to the industrial work among the factory workers and also
simultaneously pointed out the harassing treatment that the employees received at
the hands of the employers. The need for labour welfare was strongly felt by the
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Commission. The Commission recommended more measures of security and
protection for the workers from the government (State and Provincial) through
labour legislations. It also suggested that the employers should make better
provision of labour welfare measures. The Commission made an important
recommendation that by way of legislation, the competent authority should collect
information from the employees regarding housing conditions (including housing of
industrial labour), from merchants regarding prices, from moneylenders regarding
loans to workers and from landlords regarding rentals.
A study team (1960) was set up by the Union Labour Ministry to look into the whole
range of labour welfare activities. Labour welfare schemes in the Third Five Year
Plan are based on the recommendations made by the study team. The
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recommendations of the study team set the frame for the formulation of the labour
policy in the Third Five Year Plan.
The Labour Bureau (1961) conducted a survey, which showed a good deal of
awareness on the part of the employers in the Jute Industry in the matter of
providing welfare amenities to the workers and their children in the field of
education. The survey revealed that the facilities extended by the jute mills are over
and above the obligation put on employers under the various enactments.
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The Second National Commission (2002) on labour was constituted after three
decades in a different backdrop of liberalization, privatization and globalization
(LPG). Its task was to free labour laws from all ‘unwarranted remnants’ of pro-
labour provisions so that the requirements for the LPG era can be best fulfilled. The
commission, of course, euphemistically describes this objectives are “rationalization
of labour laws and formulation of an umbrella legislation to provide minimum
protection for the unorganized sector workers”. The commission strongly
recommended for socially essential services like water supply, medical services,
sanitation, electricity and transport, etc. The commission accepted the need to
consider social security as a fundamental human right. A recommendation has been
made to the state to bear the responsibility for providing and ensuring an elementary
or basic level of security, and leaves room for partly or wholly contributory
schemes. The important recommendations of the commission, in respect of social
security measures are: the workmen’s compensation act should be converted from an
employer’s liability scheme; as far as the organized sector is concerned, the existing
provisions for maternity benefit should be extended so as to be applicable to all
women workers; every employer must pay each worker his one-month’s wage, as
bonus before an appropriate festival, be it Diwali or Onam or Puja or Ramzan or
Christmas and any demand for bonus in excess of this up to a maximum of 20% of
the wages will be subject to negotiation.
Srivastava (1953) in his thesis, "Labour Welfare in India" detailed upon the labour
welfare measures undertaken by select public and private sector companies in
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India. He found that public sector companies are far better than their private
counterparts in the provision of welfare facilities to workers and employees.
Shanti Arora (1957) in the thesis, "The Social Security in India" felt that the various
Acts and legislations made by the Government failed to provide social security to
the masses.
Verma Omprakash (1958-65) in his thesis, "Labour Welfare and Industrial Peace in
India" stated that many industries failed to provide adequate welfare facilities to
their employees due to which industrial unrest had become a common phenomenon
among various industries.
Kapoor Suraj Krishan (1961-64) in his thesis, "Social Security for Industrial
Workers in Madhya Pradesh" explained the various social security measures
provided to industrial workers by the Central Public Sector enterprises, State level
public sector enterprises and unorganised sectors. The study found that unorganized
sector employees are deprived of almost all the social security measures.
Dharam Veersingh (1963-67) in his thesis, "Social and Economic Welfare Services
in Uttar Pradesh" felt that the successive governments after independence could not
provide the required social and economic welfare services to the needy people due
to which many people are living below the poverty line.
Ranjan Bhattacharya (1965) in his thesis, "Social Security Measures in India" stated
that the Government enacted various Acts to provide social security to industrial
workers. But the Government Machinery failed to implement the various Acts
related to social security in India.
Sharma (1974) in his thesis, "Living Conditions of Colliery Workers in Jharia Coal
Field's" examined the working and living conditions of workers and employees in Jharia
Coal Fields. The study found that the working and living conditions of
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workers and employees who are working in the mines are very poor and hence the
living conditions need to be improved a lot.
Saktipada Dutta (1976) in his thesis, "A Study of Labour Productivity, Wages and
Profits in the Coal Mining Industry of Bihar" discussed the productivity and profits of
coal mining industry in Bihar. The study found that the productivity and profitability in
the coal mining industry are quite low due to various factors and forces such as high
absenteeism, militant trade unionism, and high turnover of employees.
Mishra (1978) in his thesis, "History and Working of Trade Unions in the Coal
Mining Industry of Bihar" discussed the history, growth and development of trade
unions in the mining industry. He also discussed the role of trade unions in
mitigating the problems of workers and employees.
Narayana Murthy (1992) in his thesis, "Employee Welfare in Public Sector - A Study
on Selected Units in Visakhapatnam" discussed the various welfare facilities
provided by public sector companies like - BHPV Ltd, Hindustan Shipyard Limited,
Visakhapatnam, Port Trust, and Dredging Corporation of India. The study concluded
that all the four public sector enterprises are highly employee–welfare-oriented with
insignificant differences.
Tanna Mona(1993) in her thesis, "Social Security Schemes for Industrial Workers: A
Study of Employee's State Insurance Scheme in Madhya Pradesh" detailed about the
various social security measures provided to employees with
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special emphasis on the benefits provided to employees under Employees State
Insurance Scheme.
Krishnaiah (1994) in his thesis, "Work Life and Welfare of Coal Miners in SCCL"
studied the work life of coal miners comprehensively. The study found that the work
life of employees is poor. However, it is being offset by the provision of welfare
facilities.
Kishore babu (1994) in his thesis, "Social Security Measures in Public Sector-A Study
of Selected Industries in Visakhapatnam" discussed the various social security measures
provided by HPCL, BHPV and Hindustan Shipyard Limited to their employees. The
study showed that all these three public sector enterprises have been highly employee-
oriented in terms of the provision of social security measures.
Anita Kumari (1994) in her thesis, "Terminal Benefits to Industrial Workers with
Special Reference to India" pointed out the wide variations across various industries
in the provision of terminal benefits to industrial workers in India.
Aruna Valli (1995) in her thesis, "Social Assistance for Industrial Labour in India"
analysed the social assistance programs undertaken by the Government of India and
also various state governments for the benefit of industrial labour in India.
Sambasiva Rao (1996) in his thesis, "A Study of Welfare, Health and Safety of
Workers in the Cement Industry of Guntur District" probed into the health, safety
and welfare measures provided by various cement companies in the Guntur district
of Andhra Pradesh. The study found that large cement companies provide better
health, safety and welfare measures as compared to small and medium scale cement
companies.
Srinivasa Rao (2004) in his thesis, "Functioning of Trade Unions in Indian Coal
Mining Industry: A Case Study of Singareni Collieries Company Limited" studied
the functions of trade unions at length. He also explained the role of trade unions in
improving the quality of work life of employees in SCCL.
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Rama Vani (2006) in her thesis, "Incentive Schemes in Coal Industry: A Case Study
of Singareni Collieries Company Limited" discussed the various incentives provided
by SCCL to its employees so as to improve the productive performance of the
company. She concluded that the incentives provided by the company helped in
improving the productive performance of the company.
Venkateswara Rao (2006) in his M.Phil, dissertation, "A Study of Health and Welfare
Measures for Workers in Singareni Collieries Company Limited” inquired into the
various health and welfare facilities provided by the company to its employees. The
researcher concluded that SCCL is highly employee-welfare oriented.
Srivastava (2007) in his thesis, "Study of Labour Welfare and Social Security in the
Industrial Undertakings of RaiBareilli District" discussed comprehen-sively the
various welfare and social security measures provided by various companies in the
district. The study found that a majority of the companies are employee-welfare and
social–security- oriented.
Viswanadh (2008) in his thesis, "A Study on Welfare Facilities and their Impact on
the Efficiency of Employees in APSRTC” found that the provision of welfare
facilities has a positive impact on the efficiency of employees.
Joshi (1927) in his book, "Trade Union Movement in India" felt that welfare work
covers all the efforts which employers make for the benefits of their employees over
and above the minimum standard of working conditions fixed by the Factories Act
and over and above the provisions of the social legislations providing against
accident, old age, unemployment, sickness etc.
Seth (1940) in his book "Labour in Indian Coal Industry" discussed the agonies of
Indian Coal miners under colonial rule.
Radha Kamal Mukerjee (1945) in the book, "The Indian Working Class” dealt with
the problems of low earnings and the sad state of housing then prevalent in the
Indian Collieries.
Srivastava (1970) in his book, "A Socio-Economic Survey of the Workers" in the Coal
Mines of India (with special reference to Bihar) studied the socio-economic conditions
of coal workers in Bihar. The study found that the socio-economic
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conditions of miners in Bihar are so poor due to high indebtedness, low wages and
poor welfare facilities.
Hasan (1972) in his book, "The Social Security System of India" felt that social
security schemes have characteristics such as provision of cash and medical relief
and also the active involvement of the State in the provision of social security. He
further stated that social security benefits are provided to employees as of right.
Tyagi (1982) in his book, "Labour Economics and Social Welfare" discussed the
labour welfare practices in India such as the provision of intramural and extra-mural
welfare facilities. He also discussed the various agencies involved in labour welfare.
However, the study is totally theoretical in nature.
Ahuja (1988) in his book, "Personnel Management" emphasised the need for labour
welfare and social security in India. He felt that provision of welfare and social
security measures makes the employees satisfied with their jobs leading to their
improved performance.
Arun Monappa (1990) in his book, "Industrial Relations" discussed labour welfare
and social security measures in detail. He also explained the various problems faced
by the enforcement machinery in the implementation of these welfare and social
security measures.
Tripathi (1998) in his book, "Personnel Management & Industrial Relations" explained
the principles of labour welfare services, types of labour welfare services, different
legislations and Acts. He also discussed the social security measures in terms
26
of medical care, sickness benefit, unemployment benefit, maternity benefit etc.,
besides explaining the social security system in India.
David, A Decenzo (2001) and Stephen P. Robbins in 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 employees and
there by good human relations will develop among different cadres of employees.
Kannan (2001) stated that the ever increasing demand for welfare funds for
each and every sub-sector of the informal sector may be viewed as a desperate
reaction of the workers for a measure of social security in an unprotected labour
market.
Pylee and Simon George in their book, "Industrial Relations and Personnel
Management" stated that companies should provide retirement benefits such as
provident fund, gratuity and pension to employees. They felt that the provision of
these benefits assists employees to be free from fear of want and fear of starvation
besides instilling in them a feeling of security.
Punekar, Deodhar and Sankaran (2004) in their book, "Labour Welfare, Trade
Unionism and Industrial Relations" stated that labour 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.
Shashi, K. Gupta and Rosy Joshi (2005) in their book, "Human Resource
Management" discussed "labour welfare" in detail. The book covers all the aspects
of labour welfare such as types of labour welfare, statutory provisions concerning
welfare, approaches to welfare and also the significance of labour welfare.
Mamoria et al., (2005) in their book "Dynamics of Industrial Relations" discussed the
welfare facilities provided by various organisations such as cotton mills in Mumbai, Jute
mills, steel plants, mines, plantations, railways, postal & telegraphs,
27
ports and dockyards. They also discussed the employee welfare measures undertaken by
the Government from the First Five Year Plan to Eighth Five Year Plan period.
Singh (2005) in his book, "Industrial Relations: Emerging Paradigms" stated that
social security is an attack on five giants such as wants, disease, ignorance, squalor
and idleness. According to him, social security is not a burden but a kind of wise
investment that offers good social dividends in the long run.
Venkata Ratnam (2006) in his book, "Industrial Relations" discussed the provisions
made for social security in the constitution of India, labour legislations, collective
agreements and voluntary arrangements for the organised sector. He also discussed
the key issues in social security in the context of the emerging socio-economic
environment.
Micheal Armstrong (2006) in his book, "A Hand Book of Human Resource
Management" discussed the various welfare services provided to employees in
detail. He stated that the provision of welfare services in terms of individual
services, group services and employment assistance programs help in improving the
identification of employees with the companies in which they are employed.
Malik (2007) in his book discussed the various welfare measures to be provided to
workers and employees under various Acts Viz., Mines Act, 1952, Factories Act,
1948, Environment (Protection) Act, 1986 etc.
Aquinas (2007) in the book, "Human Resource Management" explained the intra-
mural and extra-mural welfare benefits provided to employees. He stated that some
welfare benefits are provided as per legislation while some other welfare benefits are
provided voluntarily by management or as a result of bi-partite settlements between
the Management and Trade Unions.
Scott Snell and George Bohlander (2007) in their book, "Human Resource
Management" throw light on the various benefits especially social security benefits
such as provident fund, gratuity, pension and insurance coverage provided to
employees.
Gary Dessler and Biju Varkkey (2009) in their book, "Human Resource
Management" discussed the benefits and services provided to employees in India.
They also discussed the benefits to be provided as per Central or State Law besides
the discretionary benefits provided by employers.
28
John M. Ivancevich (2010) in his book, "Human Resource Management" stated that
an employer has no choice about offering mandated benefits programs and cannot
change them in any way without getting involved in the political process to change
the existing laws. According to him, the three mandated programmes are
unemployment insurance, social security and workers compensation.
Aswathappa (2010) in his book, "Human Resource Management" discussed the various
types of benefits and services provided to employees 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.
Important research articles relevant to the present study, reviewed by the researcher,
are as under:
Kerr et al. (I960) in their article, "Industrialism and Industrial Man: The Problems of
Labour and Management in Economic Growth" felt that a committed worker is he
who has broken his links with the village economy, and has become a permanent
member of urban industrial wage earner and does not hope to return to his village.
Further, they felt that all the aspirations and expectations of workers should be
fulfilled through the industrial job.
Garewal, K.S. (1978) in his article, "Dimensions of Welfare in Coal Industry" stated
that the nationalization of coal industry in 1973 has brought about a major change in
its operating philosophy and as a result employee welfare has been accorded top
priority.
Vijay, G (1999) in his paper, "Social Security of Labour in New Industrial Towns"
felt that social security in the formal sector has an institutionalized expression. He
felt that social security is a complex issue since it involves migration
29
of labour from rural areas to new townships. He also felt that the labour in the new
industries is recruited on contractual or casual basis. He also mentioned about
various institutions through which social security finds expression. Further, he
analyzed the attributes that would enable access to these institutions.
Madhumathi and Desai (2003) in their article, "Analysis of Pre and Post Reform
Security and Labour Welfare Expenditure in Karnataka State Road Transport
Corporation" analysed the social security and labour welfare measures provided by
KSRTC in detail. The study found that labour welfare expenditure in KSRTC had
grown year after year under pressure as well as the changing relations between
employees and management. They further found that per capita labour welfare
expenditure had increased substantially during the post-reforms period.
Nalini Nayak (2005) in her article, "Social Security for the Unorganised Sector" felt
that the bill assuring social security for workers in the unorganised sector does not
go far assuring access rights to natural resources enjoyed as per tradition by certain
groups or organisations. She also stated that in the state of Kerala, workers agitated
in a sustained manner for recognition of their rights. However, for lack of state
support, these organisations are dwindling in number.
Raju and Jena (2005) in their article, "Pioneering Welfare Practices in Oil and
Natural Gas Corporation Limited-Rajahmundry Asset" stated that the labour welfare
practices adopted by ONGC contributed to the economic development in total by
moulding workers into a productive, efficient and committed labour force. Further, it
has tremendous potentialities for fostering good industrial relations.
Ravi Duggal (2006) in his article, "Need to Universalise Social Security" stated that
those who can afford it get their own social security through a public mandate and
those who cannot afford it have to buy or arrange their own social
30
security. Further, he stated that the malaise can only be overcome by universalising
social security.
Venkateswara Rao and Rajesh (2007) in their article, "Singareni Collieries Company
Limited: The Great Turnaround Story" analysed the reasons for the sickness of
SCCL. They also discussed the various measures taken by the company for the
successful turnaround of the company.
Anjali Ganesh and Vijayi D. Souza (2008) in their article "Social Security and
Welfare Measures at New Mangalore Port Trust - A Case Study" felt that employees
at NMPT are quite satisfied with the social security benefits provided by the
organisation. They also stated that the provision of welfare facilities and social
security benefits has a greater influence on the working of employees through
psychological and social satisfaction.
Kala (2008) in her article, "Social Security of Unorganised Workers" felt that people
who are employed in shops and establishments, handlooms and power looms,
agriculture, construction are not covered by social security measures and hence the
31
government introduced Aam Admi Bima Yojana and Indira Gandhi National old
Age, Pension Scheme to help the unorganised sector employees as well as the old
people who are above 65 years of age.
Deepika (2008) in her article, "A Relook into the Measurement of Human Welfare
and Happiness" stated that Governments should measure the gross National
Happiness (GNH) rather than Gross National Product (GNP) as gross national
happiness is a better indicator of human welfare and happiness.
Sudansu Rath (2008) in his article, "Public Choice, Public Policy and Social Welfare
in a Democratic Country: A Theoretical Analysis" felt that Governmental
intervention is required in the case of market failure. Public choice, public policy
and social welfare concepts are relevant in the context of a democratic welfare state.
He also stated that public policy determined by political behaviour misrepresents
public choice and deviates from maximum social welfare. Finally, assessment of
social welfare and social justice rests on value judgement.
Paromita Goswami (2009) in the article, "A Critique of the Unorganised Workers
Social Security Act" made an attempt to discuss the Unorganised Workers Security
Act, 2008. The writer felt that the Act does not make it mandatory for the
Government to introduce new welfare schemes. It unfairly divides unorganized
workers into those below the poverty line and those above, and is silent on a national
minimum wage, improving working conditions, and the problems of women
workers like unequal pay, sexual harassment at the work place etc.
Mukul, G. Asher (2009) in his article, "Pension Plans, Provident Fund Schemes and
Retirement Policies: India's Social Security Reform Imperative" stated that the
major objectives of any social security system are consumption smoothing over an
individual's life time, insurance against longevity and inflation risks, income
redistribution for society as a whole and poverty relief. He felt that these have to be
traded off against economic growth, labour market efficiency and labour market
flexibility.
32
James H.Dulebohn et al. (2009) in their article titled, “Employee Benefit: Literature
Review and Emerging Issues”, focused on the benefits of the employee benefits to
the organization. The authors have viewed that potential for HRM research in
employee benefits is extensive. The article has concentrated on the employer-
sponsored benefits including non-health insurance benefits, executive perquisites
and educational tuition reimbursement programmes implemented in select
organizations. The authors have viewed the research oriented benefits for the study
on the welfare measures for the employees.
Hitesh I. Bhatia (2010) in his article, "Social Security for the Most Overlooked
Human Resources in India" stated that the formal social security support is available
to only a small fraction of India's labour force working in the organized sector. A
massive 93 per cent of the labour workforce in the unorganized sector continues to
remain uncovered by any social security programs despite its huge contribution to
the GDP.
Jeya A. and Kirubakaran Samuel (2010) in their article, "A Study on Impact of
Social Welfare Schemes on Rural Women in Cuddalore District" dealt with the
impact of social welfare schemes on rural women. It also outlined the extent of
benefit availed by the rural women based on field survey. The result is that rural
women are greatly benefited by the provision of social welfare schemes.
33
Magdalena Bernaciak et al.(2010) in their article on, ‘Employee Welfare and
Collective Bargaining in Exposed and Protected Sectors’, have observed that trade
unions have a significant potential to influence welfare reforms not just through
political channels but through their active participation in collective bargaining.
Further, the authors have opined that nonwage issues tackled during the negotiations
are closely linked to the design of social policies, and the position of unions on these
matters can either smoothen or hinder the reform process.
Sabarirajan et al.(2010) , in their joint paper on “Welfare Measures” focused on the the
benefit of welfare measures for the employees and their impact on the productivity of
the textile mills. The authors have viewed that welfare measures will boost the employee
morale further. Effective welfare measures will directly influence the growth of quality
of work life in the textile mills. Further, the authors have concluded that the
organizations should maintain a smooth relationship between workers and management,
which leads to attainment of organizational goals.
Asiya Chaudhary et al.(2011) ,in their joint paper, have focused on the effect of
welfare measures on employees’ satisfaction in Indian railways. Further, the paper
has critically identified the employee welfare measures implemented in Indian
Railways. Further, the study also concentrated on the level of satisfaction of various
employees with reference to welfare measures implemented for Indian Railway
employees. From the study, it is observed that inadequacy of financial resources is
one of the important reasons pointed out in railway administration. Further, the
authors have suggested that, Railway administration should encourage the formation
of co-operative housing societies for Railway men wherever and whenever possible
in order to solve the problem of housing accommodation and extend the coverage of
housing scheme to workers in Indian Railways who have not been covered so far.
34
welfare facilities implemented. The paper has concluded that, welfare measures will
improve the physique, intelligence, morality and standard of living of the workers,
which in turn will improve their efficiency and productivity.
Swapna.P and Samuyelu.N (2011) in their joint article on social security regarding
employee or labour welfare have critically analyzed the impact of welfare measures
for creating enjoyable environment in the work. The study has concentrated on
making a comparison between the provisions and implementation of the overall
benefits of the workers in different wings of the same company and by focusing on
the overall welfare activities of the company. Finally, the study has concluded that,
the economic conditions of workers and employees are determined by the monetary
benefits that they are able to earn and the economic progress is bound up with
industrial peace. Further, the authors have suggested the need for greater production
can be met only through stable work force and by recognizing workers as
respectable partners in the industrial system. Hence social security is one of major
aspects of national programs towards improving the production of the industry,
conditions of the manpower and income of the society.
Sreenivasa Rao et al. (2011) in their research paper titled, “A Study of Emeployee
Welfare Programmes and Industrial Relations at Lanco Industries Ltd”, have made a
field survey to understand the role of employees and the importance of welfare
measures to especially those who are at the lower level. The study has concentrated
on the issues like medical benifits, children’s education, maternity needs of
employees and their wives. The authors have suggested that the scope of trade union
is to be enhanced in order to effectively promote industrial relations in the
organization for limiting bureaucratic influence of spirit of true democracy in the
organization.
35
Venugopal et al.(2011) have observed employee welfare activities in Industrial
sector. The study is made in the Chittoor district with a special focus on assessing
the overall satisfaction level of employees regarding welfare programmes. The paper
has concluded that employees in industrial cluster at Chittoor district are availing
welfare benefits such as recreational, medical, educational, housing, transportation,
satisfaction, safety and also statutory welfare measures such as workmen
compensation, ESI sickness, P.F. and maternity benefits but these industries have to
provide some more welfare facilities to their employees such as Gratuity, pension
and welfare fund, so that they may retain the employees and improve the quality of
their work life.
Nageshwar Rao.D et al. (2012) in their research paper focused on the employees
perceptions towards welfare measures. They have concentrated on the role of
employee welfare measures in determining the satisfaction of the employees and the
achievement of organizational productivity. The study highlighted the effect of
welfare measures on employee performance and satisfaction levels in Coal Mines
Industry.
development of any country besides its two dimensional role of creating time and
space utilities. This sector has not received due consideration either of universities or
academic institutions. A little attention is paid by the researchers in the past to
evaluate the performance of transport sector. . In the word of Alfred Marshall "The
transport industry which undertakes nothing more than the mere movement of
persons and things from one place to another, have constituted one of the most
important activities of men in every stage of advanced civilization." However recent
Research and Development facilities provided by the Indian Universities in the
Departments of social sciences, especially Economics, Commerce and Management
Sciences and other Transport related research institutes have shed light on problems
and prospects of transport sector. An attempt is made in this chapter to review the
literature selectively in the area of transport and road transport in general and
turnaround management in particular.
36
Foreign Studies on Transport and Road Transport
The evolution of transportation system in different countries and the role played by
the transport sector in the economic development of the respective nations provide
rich insights in retrospect. Such studies are also of immense practical use in prospect
since they form the basis for perspective planning in transportation and development
efforts undertaken by the underdeveloped countries.
Tripp Alker. H examines the traffic problem in relate to road, rail, sea and air
transport and suggested traffic control measures to reduce accidents and smooth
running of the traffic.
Kitchin analyzed operational activities of bus transport irrespective of the size of the
organization engaged in bus transport and observed that it should have three main
sections viz., traffic, secretarial and engineering and each having clearly defined
function.
Bonavia M.R highlighted the role and significance of transport system for the
development of a country and suggested the utility of good transport system for
industrial, political, social and cultural angles.
An attempt was made by Owen Wilfred on the problems and potentials of transport
system by focusing on the mobility of people and goods. A study made by the
Ministry of Transport Scottish Development Department emphasizes the free flow of
traffic at reasonable speed requires planned improvement of urban road systems.
The study also suggested constructing secondary means of access enable goods and
service vehicles to load and unload at the stops.
Denys Munby opined that the cost of transport influences the size of cities, number
of production units, choice of job in general and the quality of life of human beings
in particular. Leeming J.J. examined the road accidents in Great Britain and
observed that the behavior of drivers, their habits, carelessness and drunkard driving
are responsible for accidents and also stated that they must be punished severely.
John Hibbs explained various approaches to study the concept of transport along
with its control aspects. Gerald Kraft felt that economic development of a
37
region will be influenced by the capacity of transport system it has. Insufficient
capacity of transport system will create bottlenecks and may eventually retard the
region's growth.
Locklin empirically evidenced the rail-road transport systems and opined that the
Government ownership of transport systems facilitates the planning and execution of
transport system very effectively and the Government, in one way or the other is
responsible for providing necessary capital to the transport systems which are
functioning in the respective state.
Sharp C.N examined various studies of transport systems in U.K and encountered
basic problems like transport economies, transport investment, transport pricing and
reduction in accident rate. However, Wilson opined that the transport investment
brings greater opportunity in extensive areas. If freight rates and passenger fares are
reduced substantially, transport can, and in most cases does, stimulate more use.
Payne studied the evolution and development of private transport system and the
provision of facilities provided in Europe. The observations inter alia include free
competition which is the most important factor for the services offered by the
private sector and also discussed the implications of Treaty of Rome on
transportation in Europe.
Martin T. Farris and Harding felt that the marketing function is important to the
public transport corporations which are providing passenger transportation services.
Farris and Harding focus on three areas of passenger transportation viz. (i) the
systems of passenger transportation which includes economic, physical, pricing and
regulatory systems, (ii) the problem areas of passenger transportation like urban
transportation, marketing of transport services, policy problems, social benefits and
38
social costs, (iii) the future of passenger transportation and ways for managing
change and the future.
Richard E.Ward stated the importance of transportation to the society and the
contributions made by it for the well being of the society. However, P.Keys
emphasized the role of transport sector in the development of the economy, the
nature of markets for transport and the available technology which are identified as
key determinants of the structure of transport industry and its environment.
Wood and Johnson elucidated that transport is a public utility which is vital to the
overall public interest. Almost every business enterprise and every individual is
directly affected by the transportation industry. Kenneth G William and Zmark
Shalizi explained the experiences of World Bank and related them to the emerging
problems of developing and transition economies, quoting the experiences of
various countries. A reasonably wide range of solutions and best practices as a
policy for more sustainable transport were suggested for improving transport
systems across the globe.
G.D. Jacobs and C.J. Banguley presented a broad review of the road safety and
suggested various measures for improving road safety. They observed out of five
lakh fatalities and 15 million accidents that occur annually throughout the world,
nearly 70 percent occur in developing countries and recommended an effective
improvement strategy which improves road safety systems.
39
Ken Living Stone published a draft i.e., Mayor's Transport Strategy which outlined
the plans for improving mobility in London with the ultimate objective of restoring
London to the status of world's most popular destination. The document is an
admirable summing up of what public transport can do to make cities not just livable
but lovable as well.
The Hindustan Motors Ltd., conducted a study pertaining to the various problems
confronted by the automobile industry in India. Halder D. K extensively evaluated
the traffic problems in Calcutta with a focus on Calcutta State Transport Corporation
(CSTC). For the lower productivity of the CSTC during the period of 1964 - 65 to
1972 - 73, the following factors were responsible viz., (i) low fleet utilization (as a
result of lack of proper preventive maintenance); (ii) higher absenteeism and (iii)
evasion of fare. However, Linear Programming (LP) Model was applied to the
problem of efficient allocation of buses on different routes.
Bhatnagar, K.P.et al., explained the role and significance of transport in India and
abroad and examined critically the growth and development of various modes of
transport in India and its effect on the economy of the country. Sharma.K.K.
extensively studied the state of affairs, problems and prospects of Motor Transport
in Rajasthan.
Patankar studied the Road Passenger Transport in different dimensions since 1950s
and analyzed the urban transportation in detail with emphasis on operational
productivity and efficiency of STUs for the period from 1973-74 to 1979-80. He
opined that the future of road transport sector in India would brighten only with
productivity-oriented planning and offers comprehensive solutions to urban mobility
problems in the cities of developing countries.
40
an analytical study of several vital areas along with the benchmark data for transport
management.
Pandu Ranga Rao.D extensively studied the passenger and goods transport system in
Visakhapatnam district of Andhra Pradesh and observed various trends and phases
of transport system since its inception. Further, Jain. J.K. explored on macro-level
transport operations before and after independence in India and analyzed the
problems and prospects of road transport besides the socio-economic significance of
road transport for bringing efficiency in all spheres.
41
Arora S.K. made a comparative study on the performance of Punjab Road Ways
with Andhra Pradesh, Gujarat, Rajasthan and Kerala Road Transport Corporations in
general and the public and private sector road transport undertakings of Punjab in
specific.
Ratna Kumar Singh made a study with reference to Bihar State Road Transport
Corporation during 1959-60 to 1974-75 and examined the physical and financial
performance of Bihar State Road Transport Corporation. The study advocated the
nationalization of more number of bus routes in Bihar State to reach maximum
number of public.
Akbar Ali Khan.M.D. explicitly analyzed the management of finances and the
problems of finance encountered by different State Road Transport Corporations in
India. Baig Nafees and Dr.IqbaLB.A. emphasized the need of transportation in India
in general and Uttar Pradesh in particular. Transportation provides both backward
and forward linkages to the economy of a region or a state or a country. The
dependence of Indian economy and more so of Uttar Pradesh on agriculture provides
large scale opportunities for developing agro-based industries and the same requires
adequate availability of transport infrastructure. He found transportation as a
constraint for Agro-Industrial Development in Uttar Pradesh.
42
An attempt made by Mahajan V.S to study the planning policy and development of
Transport in India reveals that there is a need of policy regulation to regulate the
transporters in India. Kulshrestha D.K critically evaluated the functioning of State Road
Transport Undertakings, specifically public sector transport organizations. The
observations reveals that the public sector transport has been facing competition with
other means of transport exclusively from the private operators, management of bus
stations, fleet utilization etc., The study throws light on the bus station management and
offers some practical ways and means to improve the conditions with special reference
to Uttar Pradesh State Road Transport Corporation.
Alwin Prakash. B analysed the physical and financial performances of the Kerala State
Road Transport Corporation during 1959-60 and 1970-71 and suggested various
measures for efficient functioning of the organization. Furthermore, Sastry E.S.
diagnosed the operational, financial and physical performance of the road transport
undertakings in India during 1960-70 and identified the causes and identified healthy
and unhealthy transport undertakings. He suggested various
43
parameters to register profit. The National Transport Policy Committee (NTPC)
cross-sectionally diagnosed 31 transport undertakings in India during 1976-1977 and
found that the unit cost was mainly influenced by two variables viz., fleet utilization
and vehicle utilization. The Committee advocated the exchequer directly subsidies
for the urban transport undertakings keeping in view of the societal benefit.
Bidichand viewed nationalized road passenger transport services in the states of Punjab,
Haryana and Himachal Pradesh while Kulkarni.S. analyzed the operational problems of
Maharashtra Road Passenger Transport Service and suggested rationale fare structure,
customer centric and oriented policies for improving occupancy ratio.
Swami B.N. evaluated the cost control methods and techniques, operational
efficiency of Tirupathi Division of Andhra Pradesh State Road Transport
Corporation. Various Committee Reports on Road Transport Sector.
44
In order to strengthen and develop transport sector in the country various
Committees are appointed by the Government of India from time to time to study
various aspects of passenger transport sector in the country. Based on the
recommendation of various Committees, the Government of India initiated policy
measures.
In the year 1927 the Government of India appointed The Road Development
Committee under the Chairmanship of N.R. Jayakar, a prominent road engineer, to
find out a suitable solution for non-motorable conditions of roads in rural areas. The
observations of the committee inter alia include the development of roads is
imminent in view of the socio, economic and political conditions of the country
keeping in view of the increased use of road transport by the rural mass.
45
On the recommendations of the Mitchell Kirkness Committee The Transport
Advisory Committee was constituted by the Government of India to draft the Motor
Vehicles Bill. The Bill was proposed and put up before the Parliament for approval
in 1935. Finally, the Bill was passed in 1939 and the Motor Vehicles Act, 1939 came
into existence for operation.
To study the impact and incidence of Second World War on Transport sector, the
Government Of India set up the 'Post War Policy Committee' in 1943.The
Committee studied various aspects of motor transport industry and recommended
reduction of burden of tax on motor vehicles, and treat the motor transport industry
with fairness. But, no initiative had been taken by the Government on these
recommendations.
Later on the Motor Vehicles Taxation Enquiry Committee was appointed in April,
1950 under the Chairmanship of M.N. Dalai, to recommend the scientific system of
taxation policy for motor vehicle users and suggest the proceeds of this taxation for
road development and maintenance. The Committee noticed that there was a heavy
burden of taxation and its pattern was defective.
The important recommendations were: (i) to use the proceeds of the taxes on motor
oil strictly for road development; (ii) Central Road Development Fund for which the
duty on motor spirit is the source, has to apportion its funds to the states on the basis
of motor spirit consumption; (iii) levy taxes on the land and to use the same for the
development of village roads through local bodies; (iv) levy the State Fuel Tax and
transfer the proceeds to the proposed 'State Road Funds' which are to be used for
road development purposes; and (v) postpone the 'Code of Principles and Practices'
at least for three years. However, no initiative was taken by the Government on the
said recommendations of the Committee.
46
The Study Group was constituted by the Planning Commission in 1953 with the
objective of suggesting the ways and means for the development of transport as per
the requirements of passenger traffic in the country. The recommendations of the
Group include:
To let the competition continue among different modes of transport for the proper
development of motor transport in the country;
To reduce the then existed level of tax burden on motor transport at least by 20
percent;
To provide opportunity for the development of weak units;
To relax the 'Code of Principles and Practices' immediately and extend the the
Finally, all of the recommendations were accepted by the Planning Commission for
policy formulation.
Later on the Road Transport Re-Organisation Committee which is also known as the
Masani Committee was constituted in 1959 to suggest the creation of viable units
consisting of minimum five buses in case of passenger transportation.
The Committee on Transport Policy and Coordination was set up in July, 1959 under
the Chairmanship of K.C.Neogy and it submitted its preliminary report in February,
1961. In January, 1964, Neogy resigned and the Committee was reconstituted in
February, 1964 under the Chairmanship of Tarlok Singh. The Reconstituted
Committee submitted a final report in 1966 recommending (i) a transport policy for
the national development; (ii) the role to be played by various means of transport
and (iii) the best mechanism for the regulation and coordination of various means of
transport. The Committee recommended encouraging the small operators with
minimum of ten vehicles and enabling them as viable cooperatives, and giving
priority to these cooperatives for the issue of permits.
47
Another Committee was appointed by the Government in 1967 to enquire the Motor
Vehicles Taxation. The Committee stated that there was heavy burden of motor
vehicle tax on users and recommended a reduction of tax. Further, it suggested to
introduce single point tax for inter-state road transport undertakings.
Government Of India appointed a Study Group to study the viable units in transport
sector. The Group submitted report in April, 1968. The Group opined that a viable
passenger transport unit must have at least 5 vehicles with a spare bus and will have a
low cost of operation as the overheads will be spread over on all the vehicles.
During the Ninth Plan in 1997 the Working Group on Road Transport was
constituted by the Ministry of Surface Transport, Government of India. It suggested
various measures to the Central Government, State Governments and the
manufacturers of vehicles for the control of vehicular smoke, noise and air pollution.
Kalyanaraman and Sehgal in October 1968 advocated two methods for future road
traffic viz., mechanical and analytical. The mechanical methods consider the past
trends whereas analytical methods consider the factors which cause the historical
trend pattern. The study recommended the combination of these two methods for
assessing the future road traffic.
T.A.S. Vijaya Raghavan, in 1995, referred to the strategic options for State Road
Transport Undertakings in India and pointed out the recent policy changes. One of
the major policy changes was by and large, operations-oriented rather than strategy-
oriented. He illustrated that the SRTUs in India were not really competing well in an
industry, which was becoming more and more unstable. He suggested competitive
type of strategies emphasizing the importance of service marketing approach.
The study of RVS Reddy published in 1998 threw light on the overall growth achieved
by the APSRTC with a focus on financing expansion by the corporation. The relative
importance of internal and external financing and the role of depreciation as a source of
financing have been examined. The study concluded that internal
49
financing continues to be an important source but the continued presence of long
term loans is not profitable to the APSRTC.
Gajanana R.C in his article published in 2009 enquired into the economics of State
owned Road Transport operations by analyzing the cause of the operation and the
fare structure. The autonomy and the Government intervention in the operation of
the SRTUs have been investigated. It is concluded that the SRTUs are crippling in
their operational efficiency because of uncontrolled Government interference and
unbridled competition from the private operators.
Jadav Chandra and Amar in 2010 observed into the pricing practices and operations
of the Gujarat State Road Transport Corporation studying the operational scenario of
the corporation. It was concluded that the corporation needed to reorient the policy
of functional management with a greater marketing oriented rationality in its pricing
philosophy.
Roads are vital infrastructure and rentable dominant mode of transport for economic
growth and sustenance. Its advantages include accessibility, flabbily and competitive
resource cost. The nation’s transportation system is a major component of the national
economy. It plays an important role in shaping life-styles, community development and
industrial locations patterns. The First Five Year Pain document validated state
ownership of the public transport system: "State participation in public road transport is
intended to achieve greater efficiency and economy in operation and management,
which a large number of small operators functioning separately will not be able to do.
Only large organizations with adequate financing resources can provide the workshop
and other facilities which are essential for rendering efficient service and realizing the
economies resulting from large scale operations".
But these studies have focused attention on different areas of transport economies,
proving policies, financial management, transport planning and replacement, cost
structure, absenteeism, personnel policies and practices in APSRTC. No
comprehensive study has yet been undertaken on employee welfare measures in
APSRTC. Therefore, the present study differs from previous studies in terms of its
nature, scope and the period of study. The present study is an attempt at evaluating
the employee welfare measures in APSRTC at Micro level covering several aspects
like statutory and non-statutory measures implemented in APSRTC and their
influence on the employee’s satisfaction.
50
STATEMENT OF THE PROBLEM &RESEARCH GAP
In passenger transport organizations finally the passengers are served through Class III
employees of the organization like drivers, conductors and controllers; the service
rendered by the mechanical staff in the workshops is also a crucial element in
51
the maintenance of vehicles. For providing efficient service to the public job
satisfaction, peace of mind, proper working conditions, adequate welfare amenities
for employees and their dependents are very essential for transport workers
RESEARCH GAP
Even with this kind of importance of the transport workers there are few studies with
related to employee welfare measures but there are very few studies with focus on
effect of welfare and social security measures on job satisfaction, organizational
commitment, work motivation, labour turnover and absenteeism. There is a
substantial research gap. To fill this gap the present study entitled Employee Welfare
Measures In Andhra Pradesh Road Transport Corporation has been selected for the
research.
This study is confined to presenting the research results with reference to employee
welfare measures implemented in Andhra Pradesh Road Transport Corporation
(APSRTC). The study covers the issues including statutory and non-statutory
measures implemented in the select region. Impact of absenteeism, social security
measures and labour turnover are also investigated in the present research study.
Further, the study is restricted to the 13 Depots of A.P.S.R.T.C Tirupati Region only.
The study does not take into consideration other regions of APSRTC services, due to
constraints of time and scope.
52
Finally, the study will present the conclusions and suggestions that emerge from the
research analysis.
METHODOLOGY OF THE STUDY
The research topic under probe needs greater insights to examine both theoretical
and practical aspects, as both leave a greater impact when examined from
operational point of view.
A) COLLECTION OF DATA
The data for the research study is collected from using both the sources of data, the
Primary Data and the Secondary Data.
a). Primary Data:
The Primary Data is collected from the employees of APSRTC through a structured
questionnaire. By applying one of the non-random sampling methods, i.e., quota
sampling method, the respondents are selected and the questionnaire is distributed to
the sample respondents to record the responses. Further, personal interview method
is also applied while contacting the sample respondents.
The secondary data is collected from the published reports of APSRTC, review
reports, status and daily reports of APSRTC at Tirupati region. Further, the journals
pertaining to the research topic, books, articles, published and unpublished records,
press publications and internet sources are used by the researcher for collecting the
information pertaining to the present research topic.
B) SAMPLE DESIGN
The sample size for the study was calculated using the following sample size
determination formula.
Determination of Sample Size
( Finite Population )
2
Sample size(n) =
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
2 2
Nd
p = 0.5;q = 0.5;d = 0.05 (confidence interval);N= 8,360 and Z = 1.96 (5% level of
significance)
53
.
.
.
.
.
.
.
.
.
.
.
.
.
. 367.28 or 368
Using the above formula within given parameter, the minimum number of sample
size required is equal to 368 participants at 5% level of significance and 95%
confidence level.
But for the purpose of getting more reliable result, the researcher has taken 10% of
sample from the total population (8,360). The sample size was taken as 836, which
can be considered as sufficient sample size for the study.
C) POPULATION
S.
Clerical
Name of the
Drivers
Conductors
Workshop
and
Total
No
Depot
Employees
Administrative
staff
1
Tirupati
341
279
128
60
808
2
Alipiri
352
225
111
41
729
3
Tirumala
254
190
101
46
591
4
Srikalahasthi
308
286
91
38
723
5
Puttur
280
273
85
32
670
6
Sathyavedu
156
176
71
28
431
7
Chittoor-I
239
197
105
44
585
8
Chittoor-II
310
260
101
40
711
9
Madanapalli-I
333
274
105
38
750
10
Madanapalli-II
273
242
103
36
654
11
Palamaneru
196
225
97
30
548
12
Pileru
204
234
102
32
572
13
Kuppam
230
206
107
45
588
54
D) SAMPLE SIZE
Ten Pe rcent of em ployees, b ased on sel ected design ations, are selected on co
nvenient basis as sample .
5
5
Qu ota Sampling
In the study employees of APSRTC, Tir upati regio n are divid ed into four gro ups
drivers, conductors , workshop employees and clerical & administrative staff . Fr om
each gro up employ ees were se lected based on convince hence it preferred to call it
as Quota sampling because all t he employee s are not gi ven equal op portunity to
get selected as sample.
5
6
H01
: There is no Correlation between Statutory Welfare Measures and Job
Satisfaction
no Correlation between Statutory
H T Welfare Measures and
02 :
h Organization Commitment
e
r There is no Correlation between
H e Statutory Welfare Measures and
03 :
is Work Motivation
here is no Correlation M and Absenteeism
H H between Statutory e
04 :
0
Welfare Measures and a There is no
6 Turnover Intention s Correlation between
u Non Statutory Welfare
H : There is no r Measures and Job
05 :
Correlation between e Satisfaction
T Statutory Welfare s
W H0 A 1 : Statutory Measures are not
H07 o
9
: There is no b Welfare Predictor of Work
: There is no r Correlation s Measures are Motivation
Correlation k between Non e not Predictor of
between Non Statutory n Job Satisfaction H
014
Statutory Welfare M Welfare t : Statutory
Measures and o Measures and e H0 Welfare Measures
Organization t Turnover e
12
: Statutory are not Predictor
Commitment i Intention i Welfare of Turnover
v H0 s Measures are not Intention
H08 a
10
: There is m Predictor of
: There is no t no Correlation Organization H015
Correlation i between Non H Commitment : Statutory
between Non o Statutory Welfare Measures
0 H
Statutory Welfare n Welfare 013 are not Predictor
Measures and 1 : Statutory
Measures and of Absenteeism
Welfare
57
H016
: Non Statutory Welfare Measures are not Predictor of Job Satisfaction
H017
: Non Statutory Welfare Measures are not Predictor of Organization
Commitment
H018
: Non Statutory Welfare Measures are not Predictor of Work Motivation
H019
: Non Statutory Welfare Measures are not Predictor of Turnover Intention
H020
: Non Statutory Welfare Measures are not Predictor of Absenteeism
F) SURVEY INSTRUMENT
Questionnaire:
To analyze the field survey information, Ratios & Percentages, Averages, Weighted
Averages, ANOVA of One-way & Two-way classification and Chi-square Test
statistical techniques were applied.
For this analysis SPSS (Statistical Package for Social Sciences) Software was
applied.
H) METHOD OF PRESENTATION
While presenting the data, tables are used at relevant places. Abbreviations are used
for the terms which are repeated a number of times. The index of abbreviations
presented in the front after list of figures for reference.
I) LIMITATIONS
The study covers employee welfare practices adopted by APSRTC with special
reference to Tirupati region only. Hence it is only an illustrative but not an
exhaustive study of the employees working for APSRTC. The study is based on the
sample and it has the limitation of generalization.
Most of the data for the study is generated from primary sources. The primary data
collected through questionnaires has its own limitations. The majority of the
employees, considering the information to be ‘sensitive personal data’, tend to give
incorrect information about the practices of the organizations. However, all possible
care has been taken to cross check their responses and obtain the correct
information.
Keeping in view the objectives, the study is divided into the following chapters for a
thorough analysis of the research topic.
59
CHAPTER –I: INTRODUCTION
This chapter is aimed at presenting the backdrop of the study. This includes the
conceptual overview of employee welfare measures, need and importance of the
study, review of literature, scope, objectives, methodology and limitations of the
study.
This chapter critically provides the evolution and growth of Transport system in
India. Further, the chapter concentrates on the evolution of APSRTC, its growth,
achievements and, more importantly, its manpower and infrastructure issues.
This chapter throws light on various employee practices adopted in APSRTC with
special reference to employee welfare measures being implemented by the
organization.
60
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