CHAPTER-1

INTRODUCTION
 A STUDY ON THE EMPLOYEE WELFARE MEASURES IN

SOUTHERN RAILWAYS TRICHY

SCOPE OF THE STUDY

This study evaluates the effectiveness of welfare measures at southern

Railways,Trichy division. Welfare includes anything that is done for the comfort and
improvement of employees and is provided over and above the wages. Welfare helps in
keeping the morale and motivation of the employees high so as to retain the employees for
longer duration. The welfare measures need not be in monetary terms only but in any
kind/forms. Employee welfare includes monitoring of working conditions, creation of
industrial harmony through infrastructure for health, industrial relations and insurance
against disease, accident and unemployment for the workers and their families. Labor welfare
entails all those activities of employer which are directed towards providing the employees
with certain facilities and services in addition to wages or salaries.

“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”

Labor Welfare includes both social and economic content of welfare social Welfare
is primarily concerned with the solution of various problems of the weaker section of society
like prevention of destitution and poverty. it aims at social development by such means as
social legislation, social reform social service, social work, social action. The object of
economics welfare is to promote economic production and productivity and through
development by increasing equitable
Distribution. Labor Welfare is a area of social welfare conceptually and operationally .It
covers a broad field and connotes a state of well being, happiness, satisfaction, conservation
and development of human resources.
 OBJECTIVE OF WELFARE MEASURE

1. To evaluate the effectiveness of welfare measures at Southern Railways,

Trichy division.
2. To find out the factors which influence the satisfaction level among
employees towards labour welfare measures.
3. To find out the relationship existing between labour welfare measures and
over all jobsatisfaction.

4. To suggest measures to make existing welfare measures much more

effective and comprehensive so that the benefits of the employees will be
increased.

QUESTIONNAIRE
Personal Details

1. Name of the Respondent :

2. Age :
20-30 30-40 40-50 50 and above

3.Designation :

4.Department :

5.Marital Status : Single Married

6.Educational Qualification :

Illiterates High School Diploma Certificate Course U.G P.G

Welfare Measure Details:

1.Total work experience?

1-5 6-10 11-20 21-30 30 and above

2.Number of transfer?

0-2 3-4 5-6 7-8

3.Number of years with the present organization?

1-10 11-20 21-30 31-40

4.Salary range?

Rs.8000 – 15000 Rs.15001 - 25000

Rs.25001 - 35000 Rs.35001 and above

5.Are you satisfied with the job?

Yes No

6.Welfare measures according to you?

Monetary Package Non-monetary Package Both

7.Impact of welfare Measure on the following:

 Please put an ‘X’ mark in the appropriate answer to of the question using the code given, if Yes then
rate it (1- Highly Increase , 2 – Increase, 3-Moderate, 4-Decreases, 5-Highly Decreases)

S.NO Contents 1 2 3 4 5
1 Employee Morale
2 Industrial Relation
3 Job Satisfaction
4 Work Behavior

8.What welfare measure is your organization providing?

Statutory Non- Statutory

9.If Statutory What are from these?

Please put “X” mark in the appropriate answer to of the question using the code given,(1-Best,2-
Good,3-Moderate,4-Bad,5-Worst)

S.No Contents Yes No 1 2 3 4 5

1 Drinking Water
2 Facilities for sitting

3 First aid appliances

4 Latrines and Urinals

5 Canteen facilities

6 Lighting

7 Washing places

8 Changing rooms

9 Rest rooms
10.If non- Statutory What are from these?

Please put an “X” mark in the appropriate answer to of the question using the code given, if “Yes”
then rate it.(1-Best,2-Good,3-Moderate,4-Bad,5-Worst)

S. No Contents Yes No 1 2 3 4 5
1 Personal Health Care(Regular
medical check-ups)
2 Employee Assistance Programs

3 Maternity and Adoption Leave

4 Medical-claim Insurance Scheme

5 Employee referral Scheme

6 Children’s Educational Allowance

7 Recreational Facilities

11.Has welfare improvised your life?

Yes No

12.Level of Satisfaction with the Welfare Measure provided in the organization:

Please put “X” mark in the appropriate answer to of the question using the code given,(1-Best,2-
Good,3-Moderate,4-Bad,5-Worst)

S. No 1 2 3 4 5
13.Are you stay in employees quarters?

Yes No

14.The present condition of employee quarters ?

Satisfy Non- Satisfy

15.Offer valuable suggestions, if any: --------------------------------------------

 RESEARCH METHODOLOGY
Data Collection

A study has been made by means of using only primary data and secondary data.

Primary data

Primary data are the first hand information collected by the researcher for the purpose of
the study interview and structured questionnaire was used to elicit respons from the respondents.

Secondary data

Secondary data was collected from company library and also from Websites, Books &
Journals.

Sampling design

Sample size considered for this project survey is 100 employees.

Tool for data analysis

MS Excel-percentage analysis, bar diagram, mean, correlation, ANOVA andcross

tabulation through SPSS are used to analyze the collected data.

Limitation of the study

 The sample size is taken as 100 by the researcher due to time constraint.
 In spit of repeated explanation by the researcher the employee had the fear over the
management which rather prevented them to share their objective opinion.
 The employee have given positive or safe answer which may not be their true feelings.

REVIEW OF LITERATURE
1.Welfare Measures in Labor Supply Models with Nonlinear Budget Constraints

Researchers lan, University College London – Department of Economics and lan Walker,
University of Warwick - Department of Economics; Institute for Fiscal Studies (IFS); Institute
for the study of Labor (IZA) state that paper is concerned with the measurement of individual
welfare in labor supply models which allow for the impact of income taxation and income
support schemes on labor supply decisions. The paper is motivated by the concern over the need
to have measures which can be interpreted easily, which can be compared with net income, and
which can be meaningfully aggregated . to illustrate the issues they used estimates of a discrete
choice model of labor supply for United Kingdom lone mothers to compute alternative welfare
measures which might be considered as having intuitive appeal to policy-makers. They compute
welfare change based on these measures arising from a recent reform of the child support
payments system.

2.Effects on Welfare Measures of Alternative Means of Accounting for Preference Heterogeneity in

Recreational Demand Models

Researchers Stephen Hynes , Nick Hanley, University of Glasgow-Department of

economics and Riccardo Scarpa, University of Waikato-Management School, state that multi
attribute-revealed preference data are used to investigate heterogeneity in a sample of kayakers
for a panel of white water site in Ireland This article focus on a comparison of preference
heterogeneity using a random parameter logit model with correlated tastes and a latent class
model, in term of the implications for welfare measures of environmental quality and site-
access changes. Recreationalists skill levels are found to affect preference in both approaches.
Statistics for the estimated distribution of welfare changes for the average respondent are
computed for changes in site attributes, but contrary to previous work, these are found to be of
similar magnitude.

3.Non-Cash Benefits and the Distribution of Economic Welfare

Researchers Tim Callan, Economic and social Research Institute , Ireland; Institute for
the study of Labor (IZA) and Claire Keane, Economic and Social Research Institute, Ireland
states that, non-cash benefits can have substantial effects on the distribution of economic
welfare. Standard approaches to the inclusion of non-cash benefit border measure of resources
have failed to take adequate account of the pattern of needs associated with the greater use of
health and education services. our result, for Ireland in the year 2000, show that it is possible to
derived using standard methods. The results indicate that the greatest impact comes from the
inclusion of imputed rent for owner occupation as part of the resource measure. When this is
done, the rate of “resource poverty” for older people is substantially reduced, in line with result
which use indicators of standard of living as well as cash incomes(“consistent poverty”).
4.Welfare Impacts of the 1998 Financial Crisis in Russia and the Response of the public
Safety Net

Researchers Michael Lokshin ,world bank –Development Research Group(DECRG) and

Martin Ravallion, world bank –Development Research Group(DECRG) compare welfare
indicators for a nationally-representative sample of Russian interviewed shortly after the 1998
financial crisis with data on the same people two years earlier. both objective and subjective
measure reveal a widespread, though not universal, deterioration in welfare. Current
expenditures generally contracted more then incomes. Inequality fell. There were both gainers
and losers at all levels. The safety net’s response fell far short of what was needed to protect
living standards, but it did help prevent even greater poverty . Evan without better targeting, a
modest expansion of the safety net could have prevented an increase in income poverty in the
aftermath of the crisis.

5.The Impact of Trade Reform in the 1990s on Welfare and Poverty in the Philippines

Researchers Caesar B. Cororaton, Consultative Group on International Agricultural

Research(CGIAR) – International Food policy Research institute (IFPRI) analyzes the impact of
trade reforms on welfare poverty in the Philippines in the 1990s using a CGE model. The results
indicate that while welfare rises and poverty falls for all household groups except the poorest
(those with rural unskilled private employees as household head) urban households gain more
then rural households. Policy experiment involving full tariff reduction and uniform five percent
tariff rate indicate generally the same pattern of effects , except that the magnitude of change is
relatively larger in the former while all household groups, including the poorest, experience a
reduction in poverty in the latter. Since poverty remains high and the disparity between rural and
urban poverty is still wide, other poverty-reducing measures have to be designed and
implemented to target those household that do not benefit much from this type of market reform.

COMPANY PROFIL
INDIAN RAILWAYS:

Indian Railways abbreviated as IR, is the state-owned railway company of India, Which
owns and operates most of the country’s rail transport. It is overseen by the Ministry of Railways
of the Government of India.

Indian Railways has one of the largest and busiest rail network in the world, transporting
20 million passengers and more then 2 million tones of freight daily. It is one of the worlds
largest commercial or utility employers, with more than 1.6 million employees. The railways
traverse the length and breadth of the country ,covering 6,909 stations over a total route length of
more than 63,327 kilometers (39,350mi). As to rolling stock, IR owns over 200,000 (freight)
wagons, 50,000 coaches and 8,000 locomotives.

Railways were first introduced to India in 1853. By 1947, the year of India’s
independence, there were forty-two rail systems. In 1951 the system were nationalized as one
unit, becoming one of the largest network in the world. IR operates both long distance and
suburban rail system on a multi-gauge network of broad, meter and narrow gauges. It also owns
locomotive and coach production facilities.

Origin & Development:

 1947 Post partition 21 railway systems—10 owned by the GOI and balance by princely
states. Total integration of princely state railways completed by first April 1950
 1951 Southern, Central and Western Railways SR, CR & WR created
 1952 Northern, Eastern and North Eastern Railways, NR,ER & NER created
 1955 South Eastern Railways, SRE created
 1958 North East Frontier Railways, NFR created.
 1966 South Central Railways, SCR created.
 2002 East Central & North Western Railways created in October.
 2002 South Western, West central, North Central, South Eastern Central & East Coast
Railways, SWR,WCR,NCR,SECR and ECOR created in April 2003.

Organizational Structure

Indian Railways is a department owned and controlled by the Government of Ionia, via
the Ministry of Railways. As of March 2010.the Railways Ministry is headed by Mamtha
Banerjee, the Union Minister of Railways and assisted by two minister of State for Railways.
Indian Railways is administrated by the Railways Board, Which has a financial commissioner,
five members and a chairman.

Railway Zones
 Indian Railways is divided into zones, which are further sub-divided into divisions. The
numbers of zones in Indian Railways increased from six to eight in 1951, nine in 1952, and
finally 16 in 2003. Each zonal railway is made up of a creation number of divisions, each having
a divisional headquarters. There are a total of 67 divisions.

The Kolkata Metro is owned and operated by Indian Railways, but is not a part of any of
the zones. It is administratively considered to have status of a zonal railway.

Each of the 16 zones, as well as the Kolkata Metro, is headed by a General Manager(GM)
who reports directly to the Railway Board. The zones are further divided into divisions under the
control of Divisional Railway Manager (DRM). The divisional officers of Engineering,
Mechanical, Electrical, Signal and telecommunication, accounts, personal, commercial and
safety branches report to the respective Divisional Managers and are in charge of operation and
maintenance of assets. Further down the hierarchy tree are the station Master who control
individual station and the train movement through the track territory under their station’s
administration.

Recruitment and Training

With approximately 1.6 million employees, Indian Railways is the country’s single
largest employer.Staff are classified into gazette (Group A and B)and non-gazette(Group C and
D) employees.The recruitment of Group A gazette employees is carried out by the Union Public
Service Commission through exams conduct by it.The recruitment to Group ‘C’ and ‘D’
employees on the Indian Railways is done through 19 Railway Recruitment Board which are
controlled by the Railway Recruitment Control Board (RRCB). The training of all cadres is
entrusted and shared between six centralized training institutes.

Subsidiaries

Indian Railways manufactures much of its rolling stock and heavy engineering
components at its six manufacturing plants, called production units, Which are managed directly
by the ministry. As with most developing economies, the main reason for this was the policy of
import substitution of expensive technology related products when the general state of the
national engineering industry was immature. Each of these six production units is headed by
General Manager, who also reports directly to the Railway Board.

There exist independent organizations under the control of the Railway Board for
electrification, modernization and research and design, each of which is headed by a General
Manager. A number of Public Sector Undertakings, which perform railway related function
ranging from consultancy to ticketing, are also under the administrative control of the Ministry
of railways.

THE SOUTHERN RAILWAYS

 Southern Railway, in its present form, came into existence on 14th April 1951 through the
merger of the three state railways namely Madras and Southern Mahratta Railways, the southern
Indian Railways, and the Mysore state railway. Southern Railway’s present network extends
over a large area of India’s southern Peninsula, covering the states of Tamilnadu, Kerala,
Pondicherry, and small portion of Andhra Pradesh. Serving these naturally plentiful and
culturally rich southern state, the SR extends from Mangalore on the west coast and
kanniyakumari in the south to Renigunta in the North West and Gundur in the North
East.Headquartered at Chennai, the Southern Railway comprises of the following six divisions

1.Chennai

2.Tiruchirapalli

3.Madurai

4. Salam

5.Trivandrum

6. Palghat

Welfare Measures at Southern Railways:

Welfare Measures at Southern Railways

Education welfare Residential welfare Medical welfare Miscellaneous

Welfare Facilities:
1.Educational Welfare

2.Hostel Subsidy

3.Subsidized Hostels

4.Residential Facilities

5.Holiday Homes

6.Medical Facilities

7.Reimburesement of Medical Expenses

8.Staff Benefit Fund

9.Recreational Facilities

10.Financial Assistance

11.Railway Minister’s Welfare & Relief Fund

12.Canteen

13.Compensation and Pensioner Benefits

14.Family Welfare

15.Premature Death Assistance Scheme

16.Creche

17.Work women’s Canteen

18.Homeopathy Clinic

19.Rail wedding Hall’s

20.Railway School at Golden Rock

21.Railway Colony, Golden Rock