A COMPARATIVE STUDY OF EMPLOYEE BENEFITS IN PUBLIC AND

PRIVATE SECTORS CEMENT INDUSTRY IN VIRUDHUNAGAR

DISTRICT (TAMILNADU)

SYNOPSIS

INTRODUCTION

‘Welfare’ is a broad concept referring to a state of living of an individual or

a group in a desirable relationship with the total environment ecological, economic

and social. 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. 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 the physical, mental, moral and emotional well-being. All

these four elements together constitute the structure of welfare on which it is

totally based.

Welfare is a positive concept. In order to establish a minimum level of

welfare it demands certain minimum acceptable conditions of existence,

biologically and socially. This positive nature calls for setting up of minimum

desirable standards necessary with regard to certain components of welfare, such

as health, food, clothing, housing, medical assistance, insurance, education,

recreation, job securing and so on. Thus, it has to specify the starting point for

building levels of welfare.

The word ‘Labour’ means any productive activity. Thus in a broader sense,

the phrase ‘labour welfare’ means the adoption of measures to promote the

physical, social, psychological and general well-being of the working population.

Welfare work in any industry aims or should aim at improving the working and

living conditions of workers and their families.

STATEMENT OF THE PROBLEM

Benefit of labour through labour welfare measures is an important aspect of

industrial relations, the extra dimension, giving satisfaction to a worker in a way

which even a good wage cannot. With the growth of industrialisation and

mechanisation, it has acquired added importance. A worker, both industrial and

agricultural, can not cope with the pace of modern life with minimum amenities.

A worker needs an added stimulus to keep body and soul together. Employers

have also realised the importance of their role in providing these extra amenities.

Today, welfare has been generally accepted by employers.

Each employer depending on this priorities gives varying degrees of

importance to labour welfare. It is because the Government is not sure that all

employees are progressive minded and will provide basic welfare measures and it

introduces statutory legislation from time to time to bring about some measure of
uniformity in the basic amenities available to industrial workers. Hence, the

present study is an attempt to analyse and compare the benefits provided by public

and private sectors cement industry to the employees in Virudhunagar District.

The analysis of the present study includes the salary, rewards, incentives, welfare

measures, working conditions and job satisfaction of employees in public and

private sectors cement industry.

SCOPE OF THE STUDY

The study has been comprehensive and analytical. The information

collected from the primary data were developed to arrive at conclusions.

The objectives of the work focused entirely on the employee benefits.

The approach to the study has been made from the point of view of the employees

of both Madras Cements Limited (MCL) and Tamil Nadu Cements Corporation

Limited (TANCEM).

OBJECTIVES OF THE STUDY

The specific objectives of the present study are:

1. To study the personal profile of selected employees of public and private

sectors.

2. To study the benefits provided to employees by public and private sectors

cement industry.
 3. To analyse and compare the opinions of public and private sector

employees about rewards and working conditions.

4. To analyse and compare the opinion of public and private sector employees

about the labour welfare schemes.

5. To analyse and compare the level of job satisfaction of public and private

sector employees.

6. To offer suggestions based on the findings of the study.

METHODOLOGY OF THE STUDY

The study is an empirical research specifically based on the survey method.

Firsthand data was collected direct from the workers by the researcher himself

with the aid of questionnaires.

The study has involved a survey of selected sample workers working in the

various departments of MCL and TANCEM.

Among other things, secondary data has been collected from published,

periodicals, text books, News papers, journals and booklets, unpublished

documents maintained by the Government departments, universities, institutes and

labour welfare offices.

A number of wide ranging discussions and informal interviews have been

held with the officials of various labour welfare organisation, trade unions and

workers in and around the industrial area of Virudhunagar District.

FRAMEWORK OF ANALYSIS

For the analysis of data, the following statistical tools are applied.

The tools like percentages, weighted average method, mean, standard deviation

and co-efficient of variations have been used.

A five point scale has been used to measure the level of job satisfaction of

respondents. Chi-square test has been applied to measure the level of job

satisfaction.

The student T-test was used to test whether there is any statistically

significant difference between the opinion of employees about the labour welfare

schemes.

Sign test, one of the non-parametric methods, has been used to know

whether there is any significant difference between the “Yes” and “No” responses

of employees of MCL and TANCEM for each of the given statements regarding

leave facilities and schemes of Tamil Nadu Labour Welfare Board.

SAMPLING DESIGN

There are 289 employees in MCL and 547 employees in TANCEM

working. The lottery method was used to select 300 employees, 150 employees

each from MCL and TANCEM in Virudhunagar District for the study. The

researcher interviewed the sample respondents with the help of reconstructed

questionnaire.
PERIOD OF STUDY

A pilot survey was conducted in 2005 in order to pre-test the interview

schedule and to modify them accordingly. The main field survey and data

collection were carried out during the period from 2005-06.

COLLECTION OF DATA

The present study is based on both primary data as well as secondary data.

In the present study, almost all have been taken to reduce the non sampling errors.

The researcher has paid attention to reduce the response error. The purpose and the

need for the study are explained to gain the confidence of the respondents so as to

make them furnish the required information. The researcher also belongs to the

study region and is quite familiar with the local terms used. Hence, the researcher

could easily draw the co-operation of the respondents. The primary data have been

collected from the selected 300 employees by adopting personal interview method.

For this, a pre-tested interview schedule has been used.

The secondary data regarding the number of cement factory, labour welfare

schemes and legislation act were collected from various publication of Cement

Manufacturers’ Association (CMA). Particulars about the profile of the selected

public and private sectors cement industry were obtained from the annual report of

the industries.
SCHEME OF REPORT

The report has been organised into seven chapters:

The First Chapter discusses the introduction and design of the study.

The Second Chapter analyses the personal profile of selected employees of

public and private sector.

The Third Chapter presents the benefits provided to employees by public

and private sector cement industries.

The Fourth Chapter attempts to analyse and compare the opinions of public

and private sector employees about rewards and working conditions.

The Fifth Chapter analyses and compares the opinion of public and private

sector employees about the labour welfare schemes.

The Sixth Chapter presents and compares the level of job satisfaction of

public and private sector employees.

The Seventh Chapter offers suggestions based on the findings of the study.
A COMPARATIVE STUDY OF EMPLOYEE BENEFITS IN
PUBLIC AND PRIVATE SECTORS CEMENT INDUSTRY
IN VIRUDHUNAGAR DISTRICT (TAMILNADU)

Synopsis submitted to the Madurai Kamaraj University for the Award

of the Degree of Doctor of Philosophy in COMMERCE

Researcher
A. THILAGARAJ

Supervisor
Dr. A. SUBBIAH

POST-GRADUATE AND RESEARCH DEPARTMENT

OF COMMERCE
Sri S. Ramasamy Naidu Memorial College
Accredited with “B++” Status by NAAC
(Affiliated to Madurai Kamaraj University)
SATTUR – 626 203
TAMIL NADU
INDIA

December
December 2007
2007