HRM1340

Department of Human Resource Management

Faculty of Management Studies and Commerce
University of Sri Jayewardenepura

Intended Learning Outcome 2

After studying this chapter & listening to the

lecture successfully the student will be able to:
I. Define what welfare means.
II. Understand the significance of employee welfare.
III. Understand the principles of employee welfare.
IV. Understand the classification of employee welfare work.
V. Identify employee welfare activities.

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Introduction 3

 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.

 Welfare has been described as a total concept.

 It is a desirable state of existence involving

 Physical well- being

 Mental well- being

 Moral well- being

 Emotional well- being

 All these four elements together constitute the structure of welfare on

which its totality is based.

Introduction 4

 Welfare is called a relative concept for it is related to time and

space.

 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 conscience of the community, the scientific advancement
and the development of a nation in all fields.

 Its meaning and components, therefore, differ from country to

country, place to place and organisation to organisation.

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Introduction 5

 Welfare is also a positive concept.

 In order to establish a minimum level of welfare, it

demands certain minimum acceptable conditions of
existence, biologically and socially.

 The positive nature calls for the setting up of the

minimum desirable standard necessary for certain
components of welfare, such as health, food, clothing,
housing, medical assistance, insurance, education,
recreation so on.
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Definition of Employee Welfare 6

 There is no single definition that has been used

universally.

 Labour welfare is “efforts to make life worth living for

worker” (Oxford Dictionary)

 Welfare is fundamentally an attitude of mind on the

part of management, influencing the method by
which management activities are undertaken. The
emphasis obviously is on the “attitude of mind” (Trevor
Bolton).
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Definition of Employee Welfare 7

 In the, welfare is defined as “ the voluntary efforts of

the employers to establish, within the existing
industrial system, working and sometimes living and
cultural conditions of the employees beyond what is
required by the law, the customs of the industry a and
the conditions of the market” (Encyclopedia of social
sciences).
 So, The term welfare refers to all the facilities and
comforts given by the employer to employees apart
from wages, salaries and incentives.

Significance of Employee Welfare 8

 Employee welfare is important not only for the employees and, but it is also for the
employer’s own interest.

1. The welfare work has beneficial effects for the employees. It influences the sentiment of
the workers and helps to maintain industrial peace.

2. Assist to create a sense of happy feeling among the employees and help them to work
harder for the organization.

3. Welfare work is increasingly recognised as an intergral part of industrial administration.

4. It helps to improve the mental and moral health of the workers by minimising the
incidents of social evil of industrialization.

5. Labour - turnover and absenteeism may decline.

6. Organizational welfare helps to improve good will and reputation of the organization.

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Significance of Employee Welfare 9

 Employee welfare is important not only for the employees and, but it is also for the
employer’s own interest.

1. The welfare work has beneficial effects for the employees. It influences the sentiment of
the workers and helps to maintain industrial peace.

2. Assist to create a sense of happy feeling among the employees and help them to work
harder for the organization.

3. Welfare work is increasingly recognised as an intergral part of industrial administration.

4. It helps to improve the mental and moral health of the workers by minimising the
incidents of social evil of industrialization.

5. Labour - turnover and absenteeism may decline.

6. Organizational welfare helps to improve good will and reputation of the organization.

Principles of Welfare Administration 10

1. Satisfaction of Real Needs
2. Cost Benefit Analysis
3. Participation
4. Welfare Financing
5. Permission for Criticism
6. Welfare is for Welfare
7. Impartiality
 The management should not try to offer welfare services
to the more deserving than to those needing.

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Principles of Welfare Administration 11

1. Satisfaction of Real Needs
Any welfare service should satisfy real needs of the employees, at least majority of the
employees.

2. Cost Benefit Analysis

It is important to do a cost / benefit analysis before starting a welfare programme. If the
programme has more benefits compared with direct and indirect costs it is appropriate
to implement.

3. Participation
When formulating a welfare programme it is better to get participation of relevant
workers and / or trade union officials.

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Principles of Welfare Administration 12

4. Welfare Financing
Adequate provisions for financing the programme are to be established.

5. Permission for Criticism

Employees should be allowed to criticise any welfare programme.

6. Welfare is for Welfare

A welfare programme must not be started with the intention of earning profits or
saving money.

7. Impartiality
Administration of any welfare programme is to be based on honesty and non-cordiality.
With the intention of helping associates only the administration should not be done.

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Classification of Employee Welfare 13

Work
Employee welfare work can be classified in to 3 different categories.

1. Statutory Welfare Work

2. Voluntary Welfare Work

3. Mutual Welfare Work

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Statutory Welfare Work

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 Statutory welfare is implemented on the coercive power of the government.
The

 Government enacts laws for the provision of employee welfare in order to

enforce minimum standards of safety, health and welfare of the employees /
workers.

 Employees have to observe the rules related to working conditions, hours of

work, hygiene, safety, light, ventilation, sanitation etc.

 Every country is increasing its statutory control over employee welfare.

 There are two main labour laws found in Sri Lanka.

1. Factory Ordinance No 45 of 1942 (Amended in 1956)

2. Indian Labour Act

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Voluntary Welfare Work 15

 This includes all activities which employers undertake for their employees on
a voluntary basis.

 Welfare work likely leads to good results. There are some social organisations
which undertake voluntary welfare work.

Eg : YMBA, YMCA

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Mutual Welfare Work 16

 Mutual welfare work is also undertaken by the workers

themselves.

 Some trade unions too undertake the workers welfare activities.

Ex: Funeral Facilities provided by worker's group/ trade

unions

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Employee Welfare Activities 17

(i) Medical Facilities

(ii) Canteen Facilities

(iii) Housing Facilities

(iv) Transport Facilities

(v) Sports and Recreational Facilities

(vi) Advances and Easy Loan Facilities

(vii) Death / Funeral Facilities

(viii) Thrift Facilities

(ix) Education Facilities

(x) Legal Aids

(XI) Other Facilities

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Activity 15.1 18

 “Making effort on employee welfare by an organisation is useless

because the government and the organizations are making
efforts on public welfare”

 Do you agree or not with this statement?

 Give reasons.

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Self- Assignment 1. 19

Select any organization and discuss with the general manager or HR

manager with regard to the following :

(a) Who performs the employee welfare administration?

(b) Significance of employee welfare.

(c) The prevailing employee welfare activities.

(d) Current problems of employee welfare administration.

(e)Actions which have been taken to solve the welfare

administration problems.

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Summary 20

 Welfare means

 Significance of employee welfare

 Principles of employee welfare

 Classification of employee welfare work

 Employee welfare activities

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Source 21
 Opatha, HHDNP. 2009. Human Resource Management. ,
Nugegoda: Department of Human Resource Management, USJ

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Thank you

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