INTRODUCTION TO

HUMAN RESOURCE MANAGEMENT

Human Resource Management (HRM) is the function within an organization

that focuses on recruitment of, management of, and providing direction for the people
who work in the organization.

Human Resource Management is the organizational function that deals with

issues related to people such as compensation, hiring, performance management,
organization development, safety, wellness, benefits, employee motivation,
communication, administration, and training.

A large part of this growth is the Human Resources department of these

companies, who are responsible for hiring the people with the knowledge to bring
new technology into a company. To be successful in the automotive market, these
companies needs a highly skilled, flexible and committed work force, a flexible and
innovative management, the ability to retain developed talent, and a strong
partnership between management and labor unions.

The backbone of any successful company is the HR department, and without a

talented group of people to hire, culture, and inform employees, the company is
doomed for failure. The human resource management is a strategic management
function. Proper management of personnel’s enhances their dignity by satisfying their
social needs. Professional significance is can be done by providing healthy working
environment it promotes the teamwork in the employees.

“The total knowledge, skills, creative abilities, talents and aptitudes of an

organization’s workforce, as well as the value, attitudes and beliefs of the individuals
involved.

“Leon C. Megginson”

“Human resource management is the recruitment, selection, development,

utilization of an accommodation to human resources by organizations. The human
resources of an organization consist of all individuals regardless of their role, who are
engaged in any of the organizations activities.”

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 INTRODUCTION TO

LABOR WELFARE MEASURES

Labor 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.

Labor welfare has the following objectives:

1. To provide better life and health to the workers.

2. To make the workers happy and satisfied.

3. To relieve workers from industrial fatigue and to improve intellectual, cultural

and
Material conditions of living of the workers.

The basic features of labor welfare measures are as follows:

1) Labor welfare includes various facilities, services and amenities provided to

workers for improving their health, efficiency, economic betterment and social
status.
2) Welfare measures are in addition to regular wages and other economic
benefits available to workers due to legal provisions and collective bargaining.
3) Labor welfare schemes are flexible and ever-changing. New welfare measures
are added to the existing ones from time to time.
4) Welfare measures may be introduced by the employers, government,
employees or by any social or charitable agency.

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 5) The purpose of labor welfare is to bring about the development of the whole
personality of the workers to make a better workforce.
The very logic behind providing welfare schemes is to create efficient,
healthy, loyal and satisfied labor force for the organization. The purpose of providing
such facilities is to make their work life better and also to raise their standard of
living.

Welfare programs for workers focus a special significance in a country like

India where Poverty is quite pervasive and where a worker, by himself, is generally
not in a position to create such welfare facilities that can make his life more pleasant.
When the facilities are provided by the employer, it helps in making the workplace
more congenial.

It is a well known fact that many of the problems that arise in the field of
industrial relations such as indiscipline, high employee turnover, excessive
absenteeism, etc. may be caused by the maladjustment of the workers to the work
environment. Hence, the welfare activities not only increase the comforts of the
workers and improve their standard of living but also help in boosting the employee
morale, in smooth adjustment to the environment, reducing displeasure and friction.

It is axiomatic that a stable, well integrated and better satisfied workforce

will help in speedier development and better utilization of resources. If the
working and living conditions are of the welfare measures, the workers will be
malcontents and will contribute not towards efficiency but towards problems.

Although the provision of better working and living conditions was earlier
conceived on humanitarian grounds, it was later realized that it leads to increased
productivity, better commitment to work, improved morale and industrial peace. This
is the fundamental thesis that has led to the intervention of the State through
legislation on labor welfare.

Employee welfare measures increase the productivity of organization and

promote healthy industrial relations thereby maintaining industrial peace. The social
evils prevalent among the labors such as substance abuse, etc are reduced to a greater
extent by the welfare policies.

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 NEED FOR THE STUDY

The progress of the company depends on the labor. So, labor is responsible
for leading the company successfully. At present scenario, if the labor has job
satisfaction, management neglects welfare of the labor as a pivotal role in the
company process. So it is very essential to study the labor welfare measures. Every
man in the world requires basic needs. But Labor is unable to get basic needs. Labor
welfare implies the setting up of minimum desirable standard and the provision of
facilities like health, food, clothing, housing, medical assistance, education, insurance,
job security, recreation, and so on. The organization success or failure depends
basically on the labor.

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 OBJECTIVES OF THE STUDY

 To study the labor welfare measures under taken by SAOCIL for its

employees.

 To study and analyze different statutory welfare provisions provided by

SAOCIL.

 To evaluate the awareness of welfare activities among the employees.

 To study the impact of welfare facilities in terms of productivity and

efficiency of the employees.

 To study the recreational facilities provided by SAOCIL.

 To suggest improvements if any, in the existing welfare system and to study if

more welfare measures are required for increasing the employee morale.

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 METHODOLOGY

PRIMARY DATA

The primary data are those which are collected a fresh and for the first time
and thus happens to be original in character.

The basis of primary data source is through collection of opinion of workers.

It comprises the information through discussions with the Human Resource Manager,
and Employees of SAOCIL.

SECONDARY DATA

The Secondary Data are those which have already been collected by someone
and which have already been passed through the statistical process.

The secondary data is collected from company annual reports, and manuals of
the company, HR reports and publications of Sudha agro oil & chemical Industries
Ltd.

The analysis has been done for the study with the feedback taken from the
employees through statistical techniques like tabulation and charts.

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 LIMITATIONS OF THE STUDY

The following are the limitations, which I have faced while carrying on the
survey in regard to welfare facilities.

 The study is confined to the employees of SAOCIL only.

 The sample size is restricted to only 45 employees.

 Taking permissions from the concerned heads for administering the

questionnaires.

 The HR Manager was very busy during the survey, so the data collected for
the study is very limited.

 Due to limitation of time, only few workers interviewed.

7
 INDUSTRY PROFILE

Oils have come to play vital role in the economy of our country .these oils not
only for the human diet but also provide essential raw materials for industrial products
of soaps ,paints varnishes lubricants .these are many reasons for every growing
demand for oils .

The main reason is due to various factors such as increasing population, rapid
industrialization of the company and improved standard of living with the recent
liberalization of licensing and trade control polices of the government, there is going
to be the further increasing in demand for oils human consumption and industrial
purpose now a day’s India has been facing the problems of shortage and raises in the
prices of oils it is the burning problem from the twenty years. The situation is due to
the production of major oil seeds ground nut mustard sesame sunflower soybean and
lime seed and caster seed...

The presently available sources of oil in India can be divided as follows.

 Perennial oil seeds plant like coconut and palm

 Annual oil seeds like ground nut, rapeseed, and mustard sesame. Niger,
sunflower, soybean caster and line seed are non edible oils
 Minor oil seeds like Sal, neem, Karaj kusum, maharajas etc.

Oils obtained through technological process such as extraction from rice brain cotton
seeds

We are at present taping about 25%- 30% of the available potential for
production in all the above sources .all these various oil seeds have different yields of
oil per unit area depending in their oil seeds per unit area.

The following table gives the average yield of oils per unit area for various oil
seeds

OIL SEED AVERAGE OIL YIELD

PALM 3200-3500
COCUNUT 1900-2000
NIGER 175-200
CASTER 200-225

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SESAME 300-325
MUSTARD 350-375
LINESEED 400-450
GROUNDNUT 600-625

In India most of the products from rainfall areas, and hence there are wide
fluctuations in production owing to monsoons progress in the evaluation and
introduction of high yielding hybrid varieties are poor when compared to rice and
cotton etc..,. Owing to these factors yield projector is very low.

In these circumstances oil seeds production has to be stepped up and self

efficiency should be achieved as early as possible hence our goal is to be achieve self
sufficiency in the production of oils within the shortest spam of time

Role of cooperative sector

Cooperative sector is assisted by N.C.D.C and NDDB oil seeds producers as

their members have supporting cooperative Endeavour in integrated development
storage and marketing approach adopted by them comprehensive enough to associate
oil seeds growers cooperatives at the gross route level with oil seeds producers has the
participants and beneficiaries .it is important that the formers who are actually
engaged in production of oil seeds. The associated with any strategies adopted for
segment actions of oil seeds through cooperatives these active involvement would
entire then to give further inputs for protection of oils.

Importance of the product

Non trading oil can play an important part in the achievement of oil self
sufficiency in our country cotton seeds has already established itself has an important
oil sources .Rice brand is fast catching up with cotton seed. Rice brain has great
potential in the further the minor oil seeds of free origin are slowly aiming mainly
because of low costs. If the policy makers can encourage at even forces to the
industrial the vast qualities of minor seeds the edible oil demand can be satisfactory.

Oils from Byproducts of other Industries:

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 There are several bi products of various agro based industrial which can be
utilized and obtain oil either industries or edible purpose cotton seed nut cake bran are
presently the important sources.

About the product rice brain oil:

The spectra of scarcity if oils has been hunting our national economy in
different degrees every since the beginning of seventies lately since 1977 huge be
ports of oils have becomes a necessity to arrest the rise in price and net the demand
and supply gap by spending huge foreign exchange crude oil

The crisis has become be the more serious on account of standard in the
production of traditional oil seeds mainly ground nut oil mustard on one hand and in
inefficient utilization of the vast of resources of oils which can available tapping rice
brand and minor oil seeds of origin and not adopting a concrete national policy has
made the crisis serious.

In fact the rise bran oil can argument substantial quantity of oil in the country
like mainly avian countries Japan Herman’s this land where rice bran oil has came to
stay has cooking medium and also for industrial purpose.

STATE WISE PROCESSING CAPACITY OF RICE BRAN IN INDIA

DAILY PRODUCTION
STATE ANNUAL PRODUCTION (MT)
(MT)
Andhra Pradesh 7425 22,27,500
Assam 110 33000
Delhi 30 9000
Gujarat 1740 522000
Haryana 1685 505000
Karnataka 2050 615000
Kerala 470 141000
Madhya Pradesh 2690 807000
Maharashtra 1715 514500

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Orissa 140 42000
Punjab 2580 774000
Rajasthan 2680 204000
Tamilnadu 1330 399000
Uttar Pradesh 2932 879600
West Bengal 720 216000
Pondicherry 150 45000
A conference organized by the solvent extract association of India on 1997 on
rice bran oils is of the significant trails taken up by or industrial organizations on the
field of oils. Since A slightest Hike in import price of grade oil brings a marked chine
in-Indian markets especially of oil.

Solvent Extraction Industry in India:

Solvent extraction is predominantly on agricultural based industry solvent

extracting the oil contents. That is rice bran soya been assessed decorticated oil cakes.
Etc…is extracted without changing the other properties of the input material. In view
of the agricultural depends the industry occupies a significant plane in Indian
economy the overall install capacity of the industry in India 26610000 mts per year
and the total number of solvent interaction plant in India is 42%.

The following is the state wise advent plant in the processing capacity

STATE WISE SOLVENT EXTRACTION PLANS OF INDIA:

STATE NO.OF DAILY ANNUAL

SOLVENT PROCESSING PROCESSING(MTS)
CAPACITY(MTS)
ANDHRA 57 10610 3083000
PRADESH
ASSAM 1 150 45000
DELHI 1 45 13500
GUJURATH 55 11645 3493500
HARYANA 20 2290 6687000
KARNATAKA 6 750 225000
KERALA 20 11645 45000

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MADHYA 67 27475 8242500
PRADESH
MAHRASHTRA 60 11803 3541500
ORRISA 5 330 99000
PUNJAB 22 3510 1053000
RAJASTHAN 27 7125 213500
TAMILNADU 21 2660 798000
UTTAR 26 4000 1200000
PRADESH
WEST BENGAL 12 1060 318000
PONDICHERRY 1 200 600000
TOTAL 441 100345 26655000
In view of growing demand for oils and cattle feed the important the solvency
extraction industry is very significant and its plan very important role in India
economy the present growth role of industry is 5%

The inflation rate of general goods is above 20% it is surprised that in increase
that in case of oils the inflation is above 30% there is still a danger in has Govt. has no
other growth expect to risotto to fix the inflationary to be standard prices in order to
fill reservoir of resources and to meet the budget.

Many learned and Eminem industries technologies and manufactures about

modernization of the rice bran processing to produce with low concern by installing
stabilizes of 3 or variety and to extract oil with 10%to 15% suitable for industrial
purpose by refining scope of rice mills ,solvent extraction industrial types of stabilizer
to install to control Atta. Rice bran problem in refining the bran oil like Maxwell
emended coding neutralization bleaching decode ordination and physical refining
etc...

In view of growing demand of cattle feed the importance of the solvent

extraction industry is very significant and it plays a very importance role in Indian
economy...The present growth rate of industry is around 5%.

Previously the oils obtained by solvent extraction are used in the manufacture
of soaps detergents but with the recent development in technology and solvent
extraction plants are able to produce edible grade oils .which the fit for refining in

12
order to produce cooling grade oils which is a source commodity oils .thus this
industry has major role to play Indians oil trade.

The activates of the industry are monitored by the solvent extractions

moderations of Indians located at Bombay.

COMPANY PROFILE

13
HISTORY OF THE COMPANY:

Increased by 225lakhs by subscribing 47390 shares at per by the existing

promoters thus the equity capital of the company stood at 11.361 lakhs 31 st march
1997.Sudha agro oil and chemical limited. Sri E Raja RAO who has vast experience
in the same line, promoted and exiting profit making company the company was
incorporated on 13th aug 1998.intially the promoters brought rupees 53.55 lakhs has
equity capital out of 750 lakhs where subscribed by aped subsequently 5000 share in
the year 1987 and 2500 shares in the year 1982.where brought back by promoters.

In the year 1993-94 the company 7 issued a bonus share of

42840 shares of rs 100 paid up at the ratio of 5:4 out of reserves of 104-58 lakhs
available within the company. The equity capital was increased to rupees 177.61 lakhs
by subscribing 26775 shares at per and 54445 shares at premium of rs.50 per share of
its 500in the year 1996-97 the equity capital was further the company paid 10%
dividend on equity in the first year itself and it cautiously paying for the past 8 years

PROMOTORS OF THE COMPANY:

The chief promoters of the company are Sri E Raja RAO who
was earlier associated with the promotion of Gowthami solvent oil ltd. As an
executive director he has aged above 60 years and has 25 years experience in the oil
and fat business.

BOARD OF DIRECTORS

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1. SRI E RAJA RAO Chairman and Managing Director
2. SRI E RAMAKRISHNA Joint Managing Director
3. SRI E SUDHAKAR,MS USA Executive Director
4. PROF.V BALAMOHAN DAS Nominee Of IREDA
5. SRI GMK MOHAN RAO Director
6. SRI M. VENKAMMA Director

AUDITORS:
M/S BRAHMAYYA & CO.

Charted Accountants
3-16c40/1.8th ROAD
Gazetted officer’s colony
Shanthi nagar
Kakinada

BANKERS:

STATE BANK OF India

Commercial branch
Kakinada

FACTORY & REGD OFFICE:

19-1-422,
G.rangampet,
Po box no: 9
Samalkot
533440
EAST GODAVARI DIST
ANDHRA PRADESH

MANAGEMENT:

15
 The following financial executives who have good amount
of in the oils and chemicals field further assist the managing director and
executive director.

NAME AGE QUALIFICATION SERVICE FUNICTION

SRI A 40 ENGINEERING 10 YEARS RAW
NARENDRA GRADUTE MATERIALS
AND OIL
SALES
SRI T. 45 OIL 23 YEARS PRODUCTION
NARASIMHA TECHNOLOGIST ACTIVITY
RAO
SRI S MEERA 52 COMMERCE 26 YEARS ACCOUNTS
GRADUTE OF THE
COMPANY

The Company Initially started with 150Tpd Rice Bran Solvent Extraction
Plant 1982 and subsequently Expanded Its Acids, Glycerin, And Oxygen the
particulars of The Various
Plants Installed in the Company’s Existing premises given below.

NAME OF THE INSTALLED CAPACITY DATE OF

PLANT TPD TPA COMMENCEMENT
OF PRODUCTION
SOLVENT 150 45000 MAY,1983
EXTRACTION
PLANT
HYDROGENAION 50 15000 MAY 1986
PLANT
CHEMICAL 40 12000 FEB 1994
REFINERY
FATTY ACIDS 40 12000 SEP 1994

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 PLANT
GLYCERINE 2 600 APRIL 1996
PHYSCIAL 20 6000 JUN 1996
REFINERY
OXYGEN 1667 500000 FEB 1997
BOTTELING
POWER 4 1800 DEC 2000

The company had started the solvent the solvent extraction plant on its own
fill in 1989-90 and it ran this on job work bases with minimum quantity
guarantee to itc limited and essar.

The company has entered a processing argument for its hydrogenation plant
with Colgate Palmolive (1) ltd. The process a minimum quantity of 2400 mts
per year and the agreement is renewable every year. Colgate Palmolive ltd
also supplied electrolysis equipment on hire purchase basis for the period of
three years commencing from the year 1995 Nov.

EXPANSION SCHEME EXECUTED:

Company commenced its 150 tpd solvent extraction plan in May

1986. At a cost of 134 lakhs and 36.70 lakhs respectively this term loan repaid in
schedule time in May, 1986 it commenced a 30ptw hydrogenation plant to harden
commercial rice bran oil for soap at a cost of 66 lakhs. Abide partly financed this
project by sanctioning the term loan of 39.64 lakhs. This loan was also repaid in the
scheduled time. In 1986 the company took a loan of 5.80 lakhs from apt for
purchasing a generator. In 1992 they took a term loan of 19.60 lakhs from paid for
purchase of a boiler these two term loans also repaid in time. In 1993 company added
seed preparatory system at a cost of 16.20 lakhs has its own funds.

17
 In 1993 the company took an expansion and diversion
programmed in a phase manner by obtaining assistance from idbi.in 1993 it took loan
of rs 410 lakhs to part finance its 30 tpd chemical refinery and 20 tpd fatty acid plant
in 1994. In the year 1995 the company went for further expansion and diversification
it took rs 350 lakhs from idbi and increased capacity from 30 tpd to 50 tpd.

The company is banking with state bank of India peddapuram branch since inception
and it presently enjoying working capital fund based limit of rs 600 lakhs. On fund
based limited of rs 50 lakhs. The company is maintaining good financial relationship
with different finance institutions. Which are extending loan facility? The repayment
of loans is made in time.

Dealing with financial institutions and banks has on 31 st Aug 1997 is

given

PERFORMANCE:

The company is regular in both earning the profit and declaring the
dividend to its share holder the turnover in 1992-93.and 1995-96 were low due to
reason to unit under took jobs works for itc ltd and essar Gujarat limited the turnover
started increasing 1996-97 onwards due to diversification of the activities in the
phased manner. The company could not show a net profit in 1998-99 has its changed
the method of depreciation of straight line method return value method due to
availability of surplus in profit and loss account the company declared dividend of
15% on its equity capital on its proportionate process.

18
RAW MATERIALS:

The main raw material of this unit is rice bran oil the units require a
quantity of 150mt of rice bran per day and 100mt of rice bran oil per day. The
company is located in the center of east Godavari dist surrounded by huge number of
rice mills since the company is 15 years old its established a strong network for
procurement of rice bran the required rice bran is produced through urgently by
brokers who collect rice bran from mills at the price indicated by the company
depending on the marketing fluctuations the company has 30 bran agents in Godavari
dist. Srikakulam and southern Orissa.

Out of the 100 mts of rice bran oil around 15 tons per day
available from the solvent extractions plant of the company.

The chemical such as nickel catalyst caustic sulphuric acid, phosphoric acid beaching
earth etc.., are available in the required capacities to run the plan at envisaged
capacity.

PRODUCTION PROFILE
19
 THE RAW MATERIAL

The raw materials for the solvent for are rice bran there are two varieties
of rice bran.

1. RAW RICE BRAN

2. BOILED RICE BRAN

The oil content is raw rice bran is 16% and increases as

boiled rice bran is 19% the purchase price of rice bran is fixed on the basis of oil
content

According if oil content is less than 16% the price will be reduced
proportionately and if oil content is more than 16% a premium will be paid
proportionately similarly in the case of boiled rice bran rebate of premium is
considered on the basis of 19% oil content

The bran is usually produced through agents appointed by the company or

directly from the rice mills the bran after arrivals is tested in the laboratory for its oil
content and ffa.Based on this laboratory results the payment will be made.

In case of boiled bran the ffa content in it will be around 4% to

7% if it is processed within 3 days from the production by rice mills by ffa content in
rice bran increased to maximum 60% if they are stored beyond 10 days advantage of
proceeding low ff oil is that it can be manufactures of refined rice bran oils.

HYDROGENATION PLANT

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DESCRIPTION:

The commercial Grade Rice Bran Oil is taken into an auto clave. Hydrogen and
nickel catalysis are then put into auto clave and then stireed.in the process oil absorbs
the hydrogen gas. The hydrogenated oil then bleached to remove color and other
impurities. The oil is then cooled to temperatures of 80%c.the cooled oil is than
filtered oil is stored for sale.

DESPRICTION:

The sweet water obtained at the splitting tower contain glycerin heating
process in the glycerin refined unit refines the crude glycerinate refined glycerin of
90%purity is then stored in drums

DESCRIPTION:

The commercial Grade Rice Bran Oil is taken into an auto clave. Hydrogen
and nickel catalysis are then put into auto clave and then stireed.in the process oil
absorbs the hydrogen gas. The hydrogenated oil then bleached to remove color and
other impurities. The oil is then cooled to temperatures of 80%c.the cooled oil is than
filtered oil is stored for sale.

REFINERY PLANT FLOW CHART:

The soap stock (fatty acids obtained from the neutralization process is
treated with sulphuric acid and then washed).the oil thus obtained is called as acid and
is stored for sale or for further use in the fatty acid plant.

DESPRICTION:

21
 The rice bran received from various rice millers is the first fed into a Pelletier
machine to convert the bran. Which is in powder form into pellets these pellets which
are run through a pellet cooler to reduce the heat in the pellets these pellets are fed
into the extraction conveyor through the conveyor the extraction bed hexane is poured
on to the bran pellets the he vane while passing through the bran pellets, absorbs the
oil content in the bran .these mixture of oil in the hexane is called Miscella.the oil thus
obtained is stored in storage tanks for sale or further use in other plants.

The de-oiled bran. Which still contains traces of hexane is run through
direct to aster to recover the hexane. The de-oiled bran which is free from hexane is
bagged for sale.

The hexane recovered by condensation process is recalculated for use in the

extraction bed.

DESCRIPTION:

The rice bran received from various rice millers is the first fed into a
Pelletier machine to convert the bran. This is in powder form into pellets which are
run through a pellet cooler to reduce the heat in the pellets. These pellets are fed into
the extraction conveyor through conveyors. The extraction bed hexane is poured on to
the bran pellets the hexane while passing through the bran pellets, absorbs the oil
content in the bran. These mixture of oil in the hexane is called miscella.the oil thus
obtained is stored in storage tanks for sale or for further use in other plants.

The de-oiled bran. Which still contains traces of hexane is run through
direct to aster to recover the hexane. The de-oiled bran which is free from hexane is
bagged for sale.

The hexane recovered by condensation process is re calculated for use in the

extraction bed.

THEORETICAL FRAMEWORK
22
CLASSIFICATON OF LABOR WELFARE WORK

Labor welfare work, taken as more comprehensive term mentioned

above, and as an embracing phase, may also be divided into three categories:

1) Statutory
2) Voluntary
3) Mutual
The statutory welfare schemes include the following provisions:

1. Drinking Water: At all the working places safe hygienic drinking water should
be provided.
2. Facilities for sitting: In every organization, especially factories, suitable
seating arrangements are to be provided.
3. First aid appliances: First aid appliances are to be provided and should be
readily assessable so that in case of any minor accident initial medication can
be provided to the needed employee.
4. Latrines and Urinals: A sufficient number of latrines and urinals are to be
provided in the office and factory premises and are also to be maintained in a
neat and clean condition.
5. Canteen facilities: Cafeteria or canteens are to be provided by the employer so
as to provide hygienic and nutritious food to the employees.
6. Spittoons: In every work place, such as ware houses, store places, in the dock
area and office premises spittoons are to be provided in convenient places and
some are to be maintained in a hygienic condition.
7. Lighting: Proper and sufficient lights are to be provided for employees so that
they can work safely during the night shifts.
8. Washing places: Adequate washing places such as bathrooms, wash basins
with tap and tap on the stand pipe are provided in the port area in the vicinity
of the work places.
9. Changing rooms: Adequate changing rooms are to be provided for workers to
change their cloth in the factory area and office premises. Adequate lockers
are also provided to the workers to keep their clothes and belongings.
10. Rest rooms: Adequate numbers of restrooms are provided to the workers with
provisions of water supply, wash basins, toilets, bathrooms, etc.

23
 Under voluntary labor welfare come those activities, which are
undertaken by employers for their workers. The idea is a apparently
philanthropic, but if we go deep because the various labor welfare activities of
the employers not only increase the efficiency of the workers but also reduce
the chances of conflicts. Voluntary labor welfare work is also understood by
some social organizations, like the Y.M.C.A. mutual labor welfare is a
cooperate enterprise of the workers, who improve their lot in a suitable
manner. Trade unions for this purpose undertake many provisions for the labor
welfare of the workers.

PHILOSOPHY OF LABOR WELFARE

The philosophy of labor welfare activities is based on the theory that success
of industrial development depends upon harmonious relations and co-operation
between labor and management (employer). The labor has fund of knowledge and
experience at his jobs. If rightly directed and fully used, it would make a good
contribution to the prosperity of the organization this can be achieved only through
the satisfaction of the labor. Efficiency in the matter of running an organization and
maintenance of productivity at rising rate and higher level, call for good labor
relations throughout the process of production. It enables all those engaged in the
organization to make their maximum personal contribution to its effective working.

This was pointed out that “Even one discontented employee or an employee
nursing a grievance can eventually infect an entire organization with the germ of
discontent which, in turn, will result in lower efficiency, poor morale and reduction in
overall production”.

The labor welfare activities in the form of health services centers are provided
with the philosophy that a good medical service center will help in ensuring sturdy
improvement of job satisfaction and productivity. A healthy worker is a basic
requirement of an organization.

It is therefore, incumbent on the part of the employer to look after the health of
the workers and to provide such facilities which would ensure minimum health
hazards. The concerning law prescribes the minimum standard but progressive
employer must extend his activities to protect the health of the laborers and their

24
dependents. In return, their co-operation will be whole hearted; efficiency will
maximum and attitude will be proper and congenial.

AIM OF LABOR WELFARE WORK

The aim or object of labor welfare activities is partly humanitarian,

partly economic and partly civic. It is humanitarian, as it aims at providing
certain facilities and amenities of life to the workers which the efficiency of
the workers and keeps the workers contented and minimizes the chances of
conflict. It is civic, because it is a means to promote a sense a responsibility
and dignity among the workers and to make them better citizens. Labor welfare
is an area of social welfare conceptually and operationally.

 It is partly humanistic, for it enables the workers to enjoy a fuller and richer
life.
 It is partly economic because it improves the efficiency of the worker, increase
its availability where it is scarce and keeps him contended. It, therefore,
minimizes the desire of the workers to form or join unions and to resort to
strikes.
 The aim is partly civic because it develops a sense of responsibility and
dignity among the workers and thus makes them worthy citizens of the nation.

It enables the workers employed in industries/ factories to perform their work in

healthy, congenial surroundings conducive to good health and high morale.

NECESSITY OF LABOR WELFARE WORK IN INDIA

Labor welfare may be viewed as a total concept, as a social concept and as a

relative concept. The total concept is a desirable state of existence involving the
physical, mental, moral ad emotional well being. These four elements together
constitute the structure of welfare, on which its totality is based. The social concept of

25
welfare implies the welfare of men, his family and his community. All these three
prospects are interrelated and work together in a dimensional approach.

The relative concept on welfare implies that welfare if relative in time and
place. It is a dynamic and flexible concept and hence its meaning and concept differ
from time to time, region to region, industry to industry, and country to country
depending upon the value system, level degree of education, social customs, and
political system, degree of industrialization and general standard of the socio
economic development of the people.

Labor welfare implies the setting up of minimum desirable standard and the
provision of facilities like health, food, clothing, housing, medical assistance,
education, insurance, job security, recreation, and so on. Such facilities enable the
workers and his family to lead a good work life, family life and social life. Labor
welfare also operates to neutralize the harm full effect of large scale industrialization
and urbanization.

ORIGIN OF LABOR WELFARE ACTIVITIES

The concept of welfare is necessarily dynamic, having a different

interpretation from country to country and from time to social institution, degree of
industrialization and general level of social and economic development. Even within
the country its content may be different from region to region.

The study of various report and various works, concludes that the following
activities are generally included under the scope of labor welfare:

1. Housing, medical, educational facilities.

2. Nutrition (including the provision of canteens).
3. Facilities for rest and recreation.
4. Cooperative societies.
5. Day nurseries and crèches.
6. Provision of sanitary accommodation.
7. Holiday with pay.
8. Social insurance measures undertaken voluntarily by employers alone or
jointly with workers including sickness, maternity benefit scheme, provident
fund, gratuities and pension, etc.
26
SCOPE OF LABOR WELFARE WORKS

It is somewhat difficult to accurately lay down the scope of labor welfare

work, especially because of the fact that labor class is composed of dynamic
individuals with complex needs. Labor welfare work is increasing with changing
opportunities and needs to meet varying situations. It is also increasing with the
growing knowledge and experience of techniques. The following list, which is by no
means exhaustive, gives the items which welfare work should be conducted inside
and outside the work place:

Conditions of work environment

The workshop sanitation and cleanliness must include the regulation of

temperature, humidity, ventilation, and lighting, elimination of dust, smoke, fumes
and gases convenience and comfort during work, operative postures, sitting
arrangements etc; provision and care of drinking water; canteen services; management
of workers cloak rooms, rest rooms and library; provision of spittoons water disposal,
disposal of wastes and rubbish, general cleanliness, passage and doors, gardens and
roads.

Workers health services

Factory health centre, playgrounds, health education medical examination of

workers and health research. Factory dispensary and clinic for general treatment,
treatment of individual diseases, fatigue and treatment of accidents. Maternity aid,
infant welfare, health and family welfare. Cultural activities include art circles, folk
songs, the art and stories, histrionics and festival celebrations.

Labor welfare program

These should cover factory council consisting of representatives of labor and

employers; vocational and job adjustments, social welfare departments co-operation
with personnel administration, interview and vocational testing, employment, follow
up and research bureau.

27
SIGNIFICANCE OF LABOR WELFARE

The basic objective of labor welfare is to enable workers to live a richer and more
satisfactory life. Labor welfare is in the interest of the labor, the employer and the
society as a whole. The main benefits of labor welfare services are given below:

1. Benefits to the workers

 Welfare facilities provide better physical and mental health to the workers
and make them happy.
 Welfare facilities like housing, medical benefits, education and recreation
facilities for the workers families help to create contended workers.
 Improvement in material, intellectual and cultural conditions of life
protects workers from social evils like drinking, gambling etc.

2. Benefits to the employers

 Labor welfare facilities help to increase employee productivity or
efficiency by improving their physical and mental health.
 Welfare measures help to improve the goodwill and public image of the
enterprise.
 Welfare services serve to maintain some peace with the employees unions.
 Employee welfare also helps to improve industrial relations and industrial
peace.
 Employers secure the benefits of high efficiency, cordial industrial
relations and low labor absenteeism and turnover.

3. Benefits to the society

Labor welfare is also in the interest of the larger society because the health,
efficiency and happiness of each individual represent the general well being of all.
Well housed, well fed and well looked after labor is not only an asset to the employer
but serves to raise the standards of industry and labor in the country.

28
RELAVENT WELFARE AMENITIES UNDER VARIOUS LABOR ACTS

Employees are statutorily required to supply various welfare amenities

under different laws. These amenities have been statutorily provided under

 The Factories Act, 1948

 The Plantation Act, 1951
 The Mines Act, 1947
 The Contract Labor (Regulation and abolition)Act, 1970
 The Bonus Payment Act, 1965
 The Trade Unions Act, 1926
 Inter State Migrant Workmen (Regulation and Employment and
Condition of Service) Act, 1979
 The Motor Transport Workers Act, 1956.
 The Merchant Shipping Act, 1958

The Factories Act, 1948

The government has laid down various minimum standards as regards

lighting, ventilation, fencing of machinery, control of temperature, safety
measures, etc., in the factory act passed from time to time. In the latest
factories act of 1948, a separate chapter has been incorporated laying down a
specific welfare measures such as First – aid appliances, canteens, rest shelters,
crèches, seating arrangement for workers, and the power is given to states
governments to make rules.

Section 42. Washing facilities:-

(1) In every factory-

a. Adequate and suitable facilities for washing shall be provided and

maintained for use of the workers therein;

29
 b. Separate and adequately screened facilities shall be provided for the use of
male and female workers;

c. Such facilities shall be conveniently accessible and shall be kept clean.

(2) The State Government may, in respect of any factory or class or description of
factories or of any manufacturing process, prescribe standards of adequate and
suitable facilities for washing.

Section 43. Facilities for storing and drying clothing.-

The State Government may, in respect of any factory or class or description of

factories make rules requiring the provision therein of suitable place for keeping
clothing not worn during working hours and for the drying of wet clothing.

Section 44. Facilities for sitting.-

(1) In every factory suitable arrangements for sitting shall be provided and
maintained for all workers obliged to work in a standing position, in order that
they may take advantage of any opportunities for rest which may occur in the
course of their work.
(2) If, in the opinion of the Chief Inspector, the workers in any factory engaged in
a particular manufacturing process or working in a particular room, are able to
do their work efficiently in a sitting position, he may, by order in writing,
require the occupier of the factory to provide before a specified date such
seating arrangements as may be practicable for all workers so engaged or
working.
(3) The State Government may, by notification in the Official Gazette, declare
that the provisions of sub-section (1) shall not apply to any specified factory or
class or description of factories or to any specified manufacturing process.

Section 45. First-aid-appliances.-

(1) There shall, in every factory, be provided and maintained so as to be readily

accessible during all working hours first-aid boxes or cupboards equipped
with the prescribed contents, and the number of such boxes or cupboards to be
provided and maintained shall not be less than one for every one hundred and
fifty workers ordinarily employed at any one time in the factory.

30
 (2) Nothing except the prescribed contents shall be kept in a first-aid box or
cupboard

(3) Each first-aid box or cupboard shall be kept in the charge of a separate
responsible person, who holds a certificate in first-aid treatment recognized by
the State Government and who shall always be readily available during the
working hours of the factory.

(4) In every factory wherein more than five hundred workers are ordinarily
employed there shall be provided and maintained an ambulance room of the
prescribed size, containing the prescribed equipment and in the charge of such
medical and nursing staff as may be prescribed and those facilities shall
always be made readily available during the working hours of the factory.

Section 46. Canteens:

(1) The State Government may make rules requiring that in any specified factory
wherein more than two hundred and fifty workers are ordinarily employed, a
canteen or canteens shall be provided and maintained by the occupier for the
use of the workers.
(2) Without prejudice in the generality of the foregoing power, such rules may
provide for-
The date by which such canteen shall be provided;
a) The standard in respect of construction, accommodation, furniture and
other equipment of the canteen;
b) The foodstuffs to be served therein and the charges which may be
made therefore;
c) The constitution of a managing committee for the canteen and
representation of the workers in the management of the canteen;
d) The items of expenditure in the running of the canteen which are not to
be taken into account in fixing the cost of foodstuffs and which shall
be borne by the employer;
e) The delegation to Chief Inspector subject to such conditions as may be
prescribed, of the power to make rules under clause (c).

Section 47. Shelters, rest-rooms and lunch-rooms.-

31
 1) In every factory wherein more than one hundred and fifty workers are
ordinarily adequate and suitable shelters or rest-rooms and a suitable
lunch-room, with provision for drinking water, where workers can eat
meals brought by them, shall be provided and maintained for the use of the
workers:

Provided that any canteen maintained in accordance with the provisions of

section 46 shall be regarded as part of the requirements of this sub-section:

Provided further that where a lunch-room exists no worker shall eat any
food in the work-room.

2) The shelters or rest-room or lunch-room to be provided under sub-section

(1) shall be sufficiently lighted and ventilated and shall be maintained in a
cool and clean condition.
3) The State Government may-

 Prescribe the standards, in respect of construction accommodation,

furniture and other equipment of shelters, rest-rooms and lunch-rooms
to be provided under this section;
 By notification in the Official Gazette, exempt any factory or class or
description of factories from the requirements of this section.

Section 48. Crèche’s -

1) In every factory wherein more than thirty women workers are ordinarily
employed there shall be provided and maintained a suitable room or rooms for
the use of children under the age of six years of such women.
2) Such rooms shall provide adequate accommodation, shall be adequately
lighted and ventilated, shall be maintained in a clean and sanitary condition
and shall be under the charge of women trained in the care of children and
infants.

3) The State Government may make rules-

32
 a) Prescribing the location and the standards in respect of construction,
accommodation; furniture and other equipment of rooms to be provided,
under this section;
b) Requiring the provision in factories to which the section applies, of
additional facilities for the care of children belonging to women workers,
including suitable provision of facilities for washing and changing their
clothing;
c) Requiring the provision in any factory of free milk or refreshment or both
for such children;
d) Requiring that facilities shall be given in any factory for the mothers of
such children to feed them at the necessary intervals.

Section 49. Welfare Officers. -

1) In every factory wherein five hundred or more workers are ordinarily

employed the occupier shall employ in the factory such number of welfare
officers as may be prescribed.
2) The State Government may prescribe the duties, qualifications and conditions
of service of officers employed under sub-section (1). 50. Power to make rules
to supplement this Chapter. -

The State Government may make rules-

a) Exempting, subject to compliance with such alternative arrangements for the

welfare of workers as may be prescribed, any factory or class or description of
factories from compliance with any of the provisions of this Chapter,
b) Requiring in any factory or class or description of factories that
representatives of the workers employed in the factories shall be associated
with the management of the welfare arrangements of the workers.

The plantation Act, 1951

Under the plantation labor act of 1951, all plantations are required to
provide housing accommodation to their resident workers and their resident
workers and their families and to maintain hospitals, drinking water,
conservancy, canteen, crèche,

33
recreation facilities and provision of umbrellas, blankets and raincoats have also
been made statutory.

- A canteen, if employing 150 or more workers.

- Crèche, if employing 50 or more women workers.
- Welfare officer, if 300 or more workers are employed.
- Recreational facilities for workers and their children.
- Educational arrangement on the estates for the children of workers, if there are
25 workers children between the age of 6 and 12.
- Medical aid to workers and their families; sickness and maternity allowances.
- Housing facilities for every worker and his family residing on the plantation in
accordance with the prescribed standard lay down by state government.
- To provide umbrellas, blankets, raincoats or other amenities for protection of
workers from rain or cold.

The Mines Act, 1947

The mines act of 1947 was designed to make better provision for
financing measures for promoting the welfare of labor, employed in the
coalmining industry which was designed to make better provision for financing
measures for promoting the welfare of labor.

- A canteen, if 250 or more workers are employed.

- A crèche, if 50 or more women workers are employed.
- Shelters for taking food and rest if 50 or more workers are employed.
- First – aid boxes and first-aid rooms if more than 150 workers are employed.
- Pit – head baths equipped with showers, sanitary latrines.
- Welfare officer if 500 or more workers are employed.

The Contract Labor (Regulation and Abolition) Act, 1970

This act aims at the abolition of the contract labor in respect of such
categories as may be notified by the appropriate government. It provides for
registration of establishments employing contract labor. The provision and
maintenance of certain basic welfare amenities like drinking water and First aid

34
facilities and, in certain cases, rest – rooms and canteens for contract labor, has
been made obligatory under the act.

- Canteen, if employing 100 or more workers.

- Washing facilities.
- First – aid box equipped with the prescribed contents.
- Rest rooms or other suitable alternative accommodation where contract labor
required to halt at night in connection with the work of the establishment.

Inter State Migrant Workmen (Regulation and employment and conditions

of service) Act, 1979

The migration of workers from one state to another state is, thus, an
established fact and in order to regulate the employment of inter – state migrant
workers and to lay down their conditions of service, the central government
has enacted the inter – state migrant workmen (regulation of employment and
conditions for service) act, 1979. Every contractor, employing inter-state migrant
workmen, shall provide:

- Medical facilities for workmen, free of charge.

- Such protective clothing as may be prescribed.
- Suitable residential accommodation to workers during the period of their
employment.
- Suitable conditions of work.

Besides, the various laws discussed earlier a few special labor welfare
legislations have been enacted for the benefit of workers engaged in those industries
where the health hazards are quite rampant, they are:

 The Mica Mines Labor Welfare Fund Act, 1946.

 The Iron ore, Manganese ore, and Chrome ore Mines Labor welfare Fund Act,
1976.
 The Cine Workers Welfare Fund Act, 1981.
 The Beedi Workers Welfare Fund Act, 1976.

35
 The amount so collected is utilized for providing medical, educational,
housing, recreation and other facilities to the workers.

The Motor Transport Workers Act, 1961

The motor transport undertakings are required to provide for their workers
are first-aid, canteen, clean, well-lighted, raincoats.

- Medical facilities at the operating and halting centers.

- Canteen, if employing 100 or more workers.
- Clean, ventilated, well-lighted and comfortable rest rooms at every place
where motor
transport workers are required to halt at night.

- Uniforms, raincoats to drivers, conductors and line checking staff for

protection against rain and cold.
- Prescribed amount of working allowance to the staff mentioned above.
- First – aid facilities equipped with the prescribed contents to be kept in every
transport
vehicle.

Merchant Shipping Act, 1958

The main provisions of the act with respect to the welfare of workers include:

- Crew accommodation.
- Supply of hygienic drinking water.
- Supply of necessary items like bedding, towel etc.
- Maintenance of first-aid facilities, availability of doctors and provision of
medical stores.
- Provision of hotels, clubs, canteen, library, educational facilities etc.
- Regular medical check-up and necessary medical assistance to all persons,
including the crew, on foreign-going ships.

36
 - To supply medicines, medical stores and provisions of surgical and medical
advice.

Under the act, government is empowered to frame rules and regulation for the
fees to be paid by the ship owners for providing welfare amenities to the seamen.

Principles of Labor Welfare

There are certain basic principles relating to wages, efficiency, coordination,

integration etc., which influence the effectiveness of welfare programmes. These
principles must be kept in mind and properly followed to achieve successful
implementation of welfare programmes.

Principle of Adequacy of Wages

According to this Principle, workers have a right to adequate wages. Labor

welfare facilities must be provided over and above the adequate wages. That means
labor welfare measures cannot be substitute for wages. At the same, it is also true that
high wage rate alone cannot create a healthy atmosphere not bring about a sense of
commitment on the part of workers. A combination of wages and labor welfare
together would achieve good results.

Principle of Social Responsibility of Industry

Industry is a sub-system of the society. It draws its manpower from the

society. Obviously, industry has an obligation or duty towards its employees to look
after their welfare. According to this principle, provision of welfare facilities to the
employees is a social responsibility of the Industry.

Principle of Efficiency

Efficiency of the workers and welfare facilities are interdependent. Hence, the
principle of efficiency plays an important role in organizing welfare facilities in the
Industry. Employers quite often provide welfare facilities to their employees as it
would increase their efficiency which would in turn lead to increase in the
productivity.

37
Principle of Re-personalization

The principle suggests that the goal of labor welfare should be the overall
development of the employees. According to this principle, labor welfare measures
help the workers to resist the baneful effects of the industrial system. Therefore, it is
necessary to organize labor welfare activities both inside and outside the factory.

Principle of Totality of Welfare

According to this principle, labor welfare activities and facilities must be

extended to all the employees of the organization. This is because the goal of the
organization will never be achieved if a section of the employees are unable to
counteract the benefit effects of industrial system.

Principle of Coordination or Integration

This principle of coordination or integration plays an important role in the

success of welfare programmes. Welfare measures to be effective need coordination
or integration approach. This will promote a healthy development of the employees in
their work, home and community. This is essential for integrating employees to their
work environment.

Principle of Association or Democratic Values

For the success of welfare programmes, association of employees in planning,

organizing and implementation is most essential. Employees who have been
association in planning, organizing and implementation of welfare activities get
keenly interested in welfare programmes. Industrial democracy is the driving force
here. Employees also to develop a sense of pride, when they are made to feel that
labor welfare programmes are created by them and for them.

Principle of Responsibility

This principle is based on the assumption that labor welfare is the joint responsibility
of the employers and employees. According to this principle, labor welfare becomes
simple and easiest task, because the responsibility is shared by different groups.

38
Principle of Accountability

The Principle is also called as principle of evaluation. This principle suggests

that the welfare programmes must be evaluated periodically. This is very much
necessary to judge and analyses the success of welfare programmes and re-organize it
for better results.

Principle of Timeliness

The timeliness of any welfare programmes help in its success. To find out
what are the labor welfare needs and what kind of welfare programmes are necessary,
the time required is important. Timely action in proper direction is essential in any
kind of welfare activities.

Principle of self-help

The principle suggests that the labor welfare must aim at helping employees to
help themselves in future. This helps employees to help themselves in future. This
helps employees to become more responsible and more efficient. It is the fact that
labors welfare must aim at helping workers to help themselves in the long run.

Dissatisfied employees: A Liability

Liberalization and the need for welfare
The Provision of welfare measures beyond the statutory requirements can
make the workers feel that they are cared by the management. This positive feeling
can help draw better commitment and co-operation from them. With the advent of
liberalization, competition is fierce and greater creativity and productivity is
imperative for survival and growth. The creativity and productivity are the results of
innovative thinking. And only motivated people think.

The workers are human beings, like anyone else, and if they are motivated to
think, a vast flow of ideas may be generated and the capacity that had been kept
dormant earlier can be put to good use. It is the regard that welfare measures will
help to create a better internal environment where a vast reservoir of ideas can be
usefully tapped by the management.

A Barren liability or a wise investment

39
 However, the programs of labor welfare are not free from criticism and
doubts. It is observed that the vast majority of industrialists in India still regard with
welfare work as a barren liability rather than a wise investment. It is argued that labor
welfare stifles the growth of the unions, weakens their collective bargaining and
makes the unions subservient to the management. Further, it involves additional
expenditure by increasing labor cost, the effect of which falls ultimately on the
consumer. Higher expenditure on labor, if not followed by higher productivity, leads
to inflation in commodity prices and the consequence sets the vicious circle of
pricewise tax hike, one following the other.

Great entrepreneurs like the Tata’s regard labor welfare not only a
humanitarian measure but also a part of investment. It is viewed the labor welfare
contributed to the economic development by molding workers into a productive,
efficient and committed labor force.

Further, it has tremendous potentialities for fostering good industrial relations.

Therefore, welfare programs, well organized, financed and administered by qualified
leadership aimed at meeting specific needs of the workers, go a long way in
promoting sound industrial relations and building up a strong national economy.

Theories of Labor Welfare

The policy Theory

This is based on the contention that a minimum standard of welfare if

necessary for labors. Apparently, this theory assumes that man is selfish and self
centered and always tries to achieve his own end, even at the cost of the welfare of
others.

According to this theory, owners and managers of industrial undertakings get many
opportunities for exploitation of labor. Hence, the state has to intervene to provide
minimum standard of welfare to the working class.

The Religious Theory

This is based on the concept that man is essentially “a religious animal.” These
religious feelings sometimes prompt an employer to take up welfare activities in the
expectation of future emancipation either in this life or after it.

40
The Philanthropic Theory

This theory is based on man’s love for mankind. Philanthropy means “Loving
mankind.” Man is believed to have an instinctive urge by which he strives to remove
the suffering of others and promote their well-being. In fact, the labor welfare
movement began in the early years of the industrial revolution with the support of
philanthropists.

The Trusteeship Theory

This is also called the paternalistic theory of labor welfare. Accordingly to this
the industrialist or employer holds the total industrial estate, properties, and profits
accruing from them in a trust. The main emphasis of this theory is that employers
should provide funds on an ongoing basis for the well-being of their employees.

The Placating Theory

This theory is based on the fact that the labor groups are becoming demanding
and militant and are more conscious of their rights and privileges than ever before.
Their demand for higher wages and better standards of living cannot be ignored.
Accordingly to this theory, timely and periodical acts of labor welfare can appease the
workers.

The Public Relations Theory

According to this theory welfare facilities provided by the employers to the

employees create a good image of the employer in the mind of the general public.
Some employers proudly take their visitors around the plant to show how well they
have organized their welfare activities.

The Functional Theory

41
 According to the functional theory welfare work is a means of securing,
preserving and increasing the efficiency of labor. Welfare facilities are provided by
the employers to the employees to make them more efficient.

The Social Theory

The social responsibility of business has been assuming great significance

these days. The social theory implies that a industrial establishment is morally bound
to improve the conditions of society in addition to improving the condition of
employees. Labor welfare is gradually taking the shape of social welfare.

Duties of the welfare officer

1) Supervision of safety-
 Health and welfare programmes like housing, recreation, sanitation
services as provided under the law or otherwise.
 Working of joint committees,
 Grant of leave with wages and redressal of workers grievances.

2) Counseling workers-
 On personal and family problems,
 Adjusting to their work environment.
 And understanding their rights and privileges.

3) Advising management in matters.

 formulating labor and welfare policies,
 Apprenticeship training programmes,
 Meeting statutory obligations of workers,
 Developing fringe benefits programmes.
 And workers education and the use of communication media.

4) Establishing liaison with workers so that they may-

 Understand the various limitations, under which they work,
 Appreciates the need for harmonious industrial relations in the plant,

42
  Interpret company policies to workers.
 Persuade workers to come to a settlement in the case of disputes.

5) Working with management-

 Workers to maintain harmonious industrial relations in the plant,
 To arrange for prompt redressal of grievance and speedy settlement of
disputes and to improve the productivity and productive efficiency of
the enterprise.

6) Working with outside public-

 So that a proper enforcement of various acts as applicable to the plant
by establishing contact with factory inspectors.
 Medical officers and other inspectors may be achieved; other agencies
in the community may be assisted to help workers to make use of
community services.
The care of workers in all matters affecting their well-being, both at the place
of work and outside, puts special responsibility on the welfare officer. Thus, welfare
officer has to act as an advisor, counselor, mediator and liaison officer between
management and workers.

The factories act provides that in every factory where in 500 or more workers
are ordinarily employed the occupier shall employ in the factory such number of
welfare officers as may be prescribed.

Qualifications of labor Welfare Officer

A welfare officer to be appointed should have:

 A university degree.
 Degree or diploma in social sciences or social work or social welfare
from any recognized institution and
 Adequate knowledge of the language spoken by a majority of the
workers in the area where the factories, mines and plantations are
situated.

The welfare officers should form part of the administration so that they may
discharge their responsibilities effectively. Therefore, the eligibility of a

43
welfare .therefore, the eligibility of a welfare officer must be ensured before his
appointment. The welfare officer should not be called upon to handle labor disputes
on behalf of the management.

SOCIAL SECURITY

Social security is the pillar of labor welfare. Social security is defined as “the
security that society furnishes, through appropriate organization, against certain risks
to which its members are exposed”. These risks are essentially contingencies against
which the individual, who has small means, cannot protect himself. These
contingencies include employment injury, sickness, disablement, industrial disease,
maternity, old age, burial, widowhood, orphan hood and unemployment. Social
security is also broadly defined as the endeavor of the community, as a whole, to
render help to the utmost extent possible to any individual.

Social security thus provides a self-balancing social insurance or assistance

from public funds or a combination of both. Though social security programmes vary
from country to country, their three major characteristics are: they are established by
law; they provide some kind of cash payment to individuals to replace at least a part
of their lost income.

1) Social insurance
2) Social assistance
3) Public services
Social insurance:
 It is financed entirely by or mainly from the common monetary contributions
of workers, Employers and the state.
 The state and the employers make major contribution to this fund, while the
employees pay only a nominal amount.
 When there is total or partial loss of income, these benefits, within limits,
ensure the maintenance of the beneficiary’s minimum standard of
living.

44
  Social insurance benefits are granted without an examination of an
individual’s need and without affecting the sense of self respect of the
beneficiary.
Social insurance is different from commercial insurance, for the latter is
voluntary and is meant for the better paid section of the population, and its benefits
are in proportion to the premiums paid; it offers protection only against individual
risks and does not aim at providing a minimum standard of living.

Social assistance:
Social assistance is provided as a supplement to social insurance for those
needy people who cannot get social insurance payments, and is offered after a means
test. The general revenues of the government provide the finance for social assistance
payments, which is made available as a legal right to those workers who fulfill given
conditions. Social assistance and social insurance go side by side. Social assistance
programs covers such programs as unemployment assistance, old age assistance,
public assistance and national assistance.

DATA ANALYSIS AND INTERPRETATION

45
1) Are you aware of welfare activities provided to you by the company?

Table no: 1

Respondent Opinion No. of Percentage of

Respondents Respondents

Yes 45 100%

No 0 0%

Total 45 100%

Source: primary data

46
Graphical representation:

100%
percentage of respondents

80%

60%
100%
40%

20%

0% 0%
yes no
opinion of the respondent

Interpretation:

From my analysis, it is clear that out of 45 employees, 100% of the respondents

responded positively. So most of the respondents are well aware of welfare measures
in SAOCIL. In my opinion welfare measures should be fruitful in case of the
respondents who have responded negatively.

47
 3) What is your opinion about the welfare activities provided by the company?

Table no: 2

Respondent No. of Percentage of

opinion Respondents Respondents

Excellent 5 10%

Good 30 67%

Poor 10 23%

Total 45 100%

Source: primary data

48
Graphical representation:

percentage of respondents
100%

80%

60%

40%
67%
20%
23%
10%
0%
excellent good poor
opinion of the respondent

Interpretation:

From the above analysis, it is clear that out of 45 employees, 10%,67% of

the respondents have responded positively i.e., excellent , good and 23% of the
respondent have responded negatively i.e., poor. Most of the respondents are satisfied
with the welfare activities in AIPL. The management should take steps to respond as
good by the most percentage of respondents.

49
3) Are all the statutory welfare measures are provided by the organization

Table no: 3

Respondent No. of Percentage of

opinion Respondents Respondents

Strongly agree 5 10%

Agree 20 45%

Disagree 20 45%

Total 45 100%

Source: primary data

50
Graphical representation:

100%
percentage of respondents

80%

60%

40%

20% 45% 45%

10%
0%
strongly agree agree disagree
opinion of the respondent

Interpretation:

From the above analysis, it is clear that out of 45 employees, 55% of the
respondents have responded positively and 45% of the respondent have
responded negatively Therefore, the employees are satisfied about the statutory
welfare measures in the SAOCIL.

51
4)Does your management believe that welfare facilities are very important for
boosting the

Employee’s Morale?

Table no: 4

Respondent No. of Percentage of

opinion Respondents Respondents

agree 43 96%

Disagree 2 4%

Total 45 100%

Source: primary data

52
 Graphical representation:

percentage of respondents
100%

80%

60%
96%
40%

20%

0% 4%
agree disagree
opinion of the respondent

Interpretation:

From the above analysis, it is clear that out of 45 employees, 33% of the
respondents have strongly agreed and 67% of the respondents agreed. The
management should boost the employee morale.

53
 5Are you approaching your management for more welfare facilities to be provided
with in the premises?

Table no: 5

Respondent No. of Percentage of

opinion Respondents Respondents

Yes 25 55%

No 20 45%

Total 45 100%

Source: primary data

54
 Graphical representation:

percentage of respondents

100%

80%

60%

40%
55%
20% 45%

0%
yes no
opinion of the respondent

Interpretation:

From the above analysis, it is clear that out of 45 employees, 55% of the
respondents have responded positively i.e., yes and 45% of the respondents have
responded negatively i.e., no. In my opinion the management should provide
welfare facilities in the premises.

55
6) Whether any recreational facilities being provided by the company?

Table no: 6

Respondent No. of Percentage of

opinion Respondents Respondents

Yes 20 45%

No 25 55%

Total 45 100%

Source: primary data

56
Graphical representation:

100%
percentage of respondents

80%

60%

40%
55%
20% 45%

0%
yes no
opinion of the respondent

Interpretation:

From the above analysis, it is clear that out of 45 employees, 45% of the
respondents have responded positively i.e., yes. and 55% of respondents have
responded negatively. Therefore most of the employees are not satisfied about the
recreational facilities available in the SAOCIL. In my opinion recreational facilities
should be provided.

Are you satisfied with recreational facilities that are being provided by the company?

57
 Table no: 7

Respondent No. of Percentage of

opinion Respondents Respondents

Satisfied 15 33%

not satisfied 30 67%

Total 45 100%

Source: primary data

58
Graphical representation:

percentage of respondents
100%

80%

60%

40%
67%
20% 33%

0%
satisfied not satisfied
opinion of the respondent

Interpretation:

From the above analysis, it is clear that out of 45 employees ,33% of the
respondents have responded positively i.e., satisfied .and 67% of the respondents
have responded negatively i.e., not-satisfied. This shows that recreational facilities
should be provided in high range to the employees.

8) Do your requirements have taken into consideration by the organization?

59
Table no: 8

Respondent No. of Percentage of

opinion Respondents Respondents

Yes 22 49%

No 23 51%

Total 45 100%

Source: primary data

60
Graphical representation:

100%
percentage of respondents

80%

60%

40%
49% 51%
20%

0%
yes no
opinion of the respondent

Interpretation:

From the above analysis, it is clear that out of 45 employees, 49% of the
respondents have responded positively i.e., yes and 51% of the respondents
have responded negatively i.e., no. I conclude that the requirements are taken into
consideration up to some extent.

9) Are there any Monthly get-together (Parties) arranged by the company?

61
Table no: 9

Respondent No. of Percentage of

opinion Respondents Respondents

Yes 10 23%

No 35 77%

Total 45 100%

Source: primary data

62
 Graphical representation:

percentage of respondents
100%

80%

60%

40% 77%

20%
23%
0%
yes no
opinion of the respondent

Interpretation:

From the above analysis, it is clear that out of 45 employees, 23% of the
respondents have responded positively i.e., yes and also 77% of the
respondents have responded negatively i.e., no. I suggest that the management
should take necessary steps in case of get- together.

63
10) How are the existing canteen facilities?

Table no: 10

Respondent No. of Percentage of

opinion Respondents Respondents

Excellent 10 23%

Good 30 67%

Poor 5 10%

Total 45 100%

Source: primary data

64
 Graphical representation:
percentage of respondents

100%

80%

60%

40%
67%
20%
23%
10%
0%
excellent good poor
opinion of the respondent

Interpretation:

From the above analysis, it is clear that out of 45 employees, 23% ,67% of
the respondents have responded as excellent , good and 10% of the respondents have
responded as poor . I come to a conclusion that canteen facilities should be made
better in case of the respondents who have responded poor.

65
11) Is the management providing you any medical facilities, if there are how they
are?

Table no: 11

Respondent No. of Percentage of

opinion Respondents Respondents

Excellent 15 33%

Good 25 55%

Poor 6 12%

Total 45 100%

Source: primary data

66
Graphical representation:
percentage of respondents

100%

80%

60%

40%
55%
20% 33%
12%
0%
excellent good poor
opinion of the respondent

Interpretation:

From the above analysis, it is clear that out of 45 employees, 88% of respondents
have responded as excellent and good and 12% of the respondents have responded as
poor. I conclude that medical facilities taken for the employees are not at all
satisfactory in the opinion of respondents who have responded good and poor.

67
12) Are there any transport facilities provided by the company?

Table no: 12

Respondent No. of Percentage of

opinion Respondents Respondents

Yes 2 4%

No 43 96%

Total 45 100%

Source: primary data

68
Graphical representation:
percentage of respondents

100%

80%

60%
96%
40%

20%

0% 4%
yes no
opinion of the respondent

Interpretation:

From the above analysis, it is clear that out of 45 employees, 4% of the

respondents have responded positively i.e., yes and 96% of the respondents
have responded negatively i.e., no. In my opinion transport facilities should be
provided.

69
13) Is management providing any educational benefits for your children?

Table no: 13

Respondent No. of Percentage of

opinion Respondents Respondents

Yes 2 4%

No 43 96%

Total 45 100%

Source: primary data

70
Graphical representation:
percentage of respondents

100%

80%

60%
96%
40%

20%

0% 4%
yes no
opinion of the respondent

Interpretation:

From the above analysis, it is clear that out of 45 employees, 4% of the

respondents have responded positively i.e., yes and 96% of the respondents
have responded negatively i.e., no. I come to a conclusion that educational benefits
should be provided by SAOCIL.

71
14) Opinion on food stuff and prices that are charged in the canteen?

Table no: 14

Respondent No. of Percentage of

opinion Respondents Respondents

Excellent 5 10%

Good 30 67%

Average 10 23%

Total 45 100%

Source: primary data

72
 Graphical representation:
percentage of respondents

100%

80%

60%

40%
67%
20%
23%
10%
0%
excellent good average
opinion of the respondent

Interpretation:

From the above analysis, it is clear that out of 45 employees, 77% of

respondents have responded positively i.e., excellent, good and 23% of the
respondents have responded average. I conclude that the charges in the canteen are
satisfied.

73
15) Are you satisfied with drinking water facilities provided in SAOCIL?

Table no: 15

Respondent No. of Percentage of

opinion Respondents Respondents

Fully – satisfied 0 0%

Satisfied 25 55%

Not – satisfied 20 45%

Total 45 100%

Source: primary data

74
 Graphical representation:
percentage of respondents

100%

80%

60%

40%
55%
20% 45%

0% 0%
fully-satisfied satisfied not-satisfied
opinion of the respondent

Interpretation:

From the above analysis, it is clear that out of 45 employees, 55% of the
respondents are satisfied and 45% of the respondents are not-satisfied. In my
opinion drinking water facilities should be provided.

FINDINGS

75
 Every employee is well aware of statutory welfare measures.

 Welfare facilities are helping employees to increase their productivity and

efficiency.

 SAOCIL is not providing enough recreational facilities.

 After collecting all the information from the workers through

questionnaire there is a boosting required for increasing the employee
morale.

 The company is not providing any housing facilities to the workers.

 The welfare activities in SAOCIL are satisfactory.

 The company is good in implementing welfare measures to the employees.

76
 SUGGESTIONS

 Management of SAOCIL should implement an statutory welfare

provisions as per the factories act, 1948.

 More recreational facilities should be provided to the employees of

SAOCIL as they can feel stress free which enhances their efficiency
level.

 It is suggested to the management of SAOCIL to take reasonable

considerations of employees in terms of welfare as it leads to industrial
productivity and employee satisfaction.

 The management should organize more get-together parties along with

family members as it builds strong loyalty and commitment towards
SAOCIL.

 It is suggested to the management of SAOCIL to improve canteen

facility as it leads to retention of employees.

 The management should provide adequate drinking water facilities at

SAOCIL as most of the respondents are not satisfies with the same.

 It is suggested to the management to provide transportation facilities to

their employees as it reduces frequent absenteeism.

 It is suggested to the management of SAOCIL to introduce educational

facilities to the employee’s children as it builds strong commitment
towards the organization.

77
 CONCLUSION

Welfare facilities are important in every organization, the management should

provide to its employees. These facilities indeed develop the employee morale and
make the employee give his best to reach the organizational goals. The transport
facility should be provided in the organization of SAOCIL. Everyone is positively
contributing in maintaining harmonious and congenial industrial relations; thereby
improving the welfare measures of the employees is an Asset to the organization.
Employees look for a long term benefit and if we provide them with all the facilities
then they stick to the organization for a long time and they would be loyal to the
organization always. Strong welfare activities act as asset to the organization.

78
 BIBLOGRAPHY

 P.K. PADHI - “LABOR AND INDUSTRIAL LAWS” Prentice-hall of India

private limited, April-2008
 P. SUBBA RAO – “HUMAN RESOURCE MANAGEMENT AND
INDUSTRIAL RELATIONS” Himalaya publishing house, Third edition
2009
 PUNEKAR,DEODHAR,SANKARAN–“LABORWELFARE,TRADE
UNIONISM AND INDUSTRIAL RELATIONS” Himalaya publishing house,
Ninth edition 2007
 C.B. MEMORIA – “PERSONNEL MANAGEMENT” Himalaya publishing
house, edition-2010
 Company Annual Reports.
 Company HRD & HRM Reports of SAOCIL.

QUESTIONNAIRE
79
Dear Sir/madam,

I am SUDHAKAR BALLAM pursuing my MBA from RAJIV

GANDHI INSTITUTE OF MANAGEMENT & SCIENCE Kakinada, as a part of our
curriculum I have to carry out a project work and I have to gather information, kindly
spare me your valuable time and fill the questionnaire.
Therefore, I shall be thankful if you could kindly spare few minutes to fill up the
necessary details in the following questionnaire.

EMPLOYEE DETAILS.

NAME :

DEPARTMENT :

DESIGNATION :

EDUCATION :

AGE :

SERVICE IN SAOACIL :

(Please fill up the above details if you so desire, optional.)

Note:

Please kindly read all the Questions before answering.

Please peck the answer from the following options in the box.

Questionnaire on Labor Welfare Measures

80
1. Are you aware of welfare activities provided to you by the company?

A) Yes B) No

2. What is your opinion about the welfare activities provided by the company?
A) Excellent B) Good C) Fair D) Poor

3. Are all the statutory welfare measures are provided by the organization?

A) Strongly agree B) Agree C) Disagree

4. Does your management believe that welfare facilities are very important for
boosting the Employee’s morale?

A) Strongly agree B) Agree C) Disagree

5. Are you approaching your management for more welfare facilities to be provided
with in the premises?

A) Yes B) No

6. Whether any recreational facilities being provided by the company?

A) Yes B) No

7. Are you satisfied with recreational facilities that are being provided by the
company?

A) Satisfied B) not satisfied

81
8. Are your requirements taken into consideration by the organization?

A) Yes B) no

9. Are there any Monthly get-together (Parties) arranged by the company?

A) Yes B) no

10. How are the existing canteen facilities?

A) Excellent B) good C) fair D) poor

11. Is the management providing you any medical facilities, if there are then how are
they?

A) Excellent B) good C) fair D) poor

12. Are there any transport facilities provided by the company?

A) Yes B) no

13. Is the management providing any educational benefits for your children?

A) Yes B) No

14. Your opinion on food stuff and prices that are charged in the canteen?

A) Excellent B) Good C) Average

82
15. Are you satisfied with drinking water facilities provided in SAOCIL?

A) Fully Satisfy B) Satisfy C) Not -satisfy

******

83