UNIT: 6

Employee Welfare: Introduction,

Types of Welfare Facilities and
Statutory Provisions.
Employee Grievances: Employee
Grievance procedure, Grievances
Management in Indian Industry.
Discipline: Meaning, approaches to
discipline, essential of a good
disciplinary system, managing difficult
employees.
Employee Welfare
Meaning & definition of
Employee Welfare
Employee welfare means “the
efforts to make life worth living for
workmen.
According to Todd
“Employee welfare means
anything done for the comfort and
improvement, intellectual or social,
of the employees over and above
the wages paid
which is not a necessity of the
industry.
 Features of Employee
Welfare
 Employee welfare is a comprehensive
term
including various services, facilities and
amenities provided to employees for their
betterment.
 The basic purpose is to improve the lot of
the working class.
 Employee welfare is a dynamic concept.
 Employee welfare measures are also
known as
fringe benefits and services.
 Welfare measures may be both voluntary
and statutory
 Objectives of Employee
Welfare
 . The objectives of employee welfare are: -

* It improves the loyalty and morale of the

employees.
* It reduces labor turnover and absenteeism.
* Welfare measures help to improve the goodwill
and
public image of the enterprise.
* It helps to improve industrial relations and
industrial
peace.
*It helps to improve employee productivity
Agencies of Employee
Welfare
1. Central government: - The central government has made
elaborate provisions for the health, safety and welfare under
Factories Act 1948, and Mines Act 1952. These acts provide for
canteens, crèches, rest rooms, shelters etc.

 2. State government: - Government in different states and Union

Territories provide welfare facilities to workers. State government
prescribes rules for the welfare of the workers and ensures
compliance with the provisions under various labor laws.

 3. Employers: - Employers in India in general looked upon welfare

work as fruitless and barren though some of them indeed had
done pioneering work.
 4. Trade unions: - In India, trade unions have done little for the
 welfare of workers. But few sound and strong unions have been
the
pioneering in this respect. E.g. the Ahmedabad textiles labor
association and the Mazdoor sabha, Kanpur.
 5. Other agencies: - Some philanthropic, charitable social service
organizations like: - Seva Sadan society, Y.M.C.A., etc
Types of Employee Welfare
* Intramural: - These are provided within the
organization like: -
1. Canteen,
2. Rest rooms,
3. Crèches,
4. Uniform etc.
* Extramural: - These are provided outside the
 organization, like: -
 1. Housing,
 2. Education,
3. Child welfare,
4. Leave travel facilities,
5. Interest free loans,
6. Workers cooperative stores,
7. Vocational guidance etc.
Types of Employee Welfare
 Statutory welfare work - comprising the legal
provisions in
various pieces of labor legislation.

  Voluntary welfare work - includes those activities

which are
undertaken by employers for their voluntary work.
Different ways of Social Security Provision in India

 1. Social Insurance- common fund is established with

periodical contribution from workers out of which all benefits
in terms of
cash or kind are paid.The employers & state prove major
portion of
finances.Benifits shuch as PF, Group Insurance etc are offered.

 2. Social Assistance- Benefits are offered to persons of

small
means by govt out of its general revenues. Eg- Old age
pension
Social Security Employee Welfare
  Medical care
- Sickness benefit in cash
- Old age pension or retirement benefit
- Invalidity pension
- Maternity benefit
- Accident benefit
- Survivor’s benefit
Employee Welfare
 STATUTORY WELFARE SCHEMES
 The statutory welfare schemes include the following provisions:
 Drinking Water
 Facilities for sitting
 First aid appliances
 Canteen facilities
 Spittoons
 Lighting

 NON STATUTORY SCHEMES

 Personal Health Care (Regular medical check-ups): Some of the
companies provide the facility for extensive health check-up
 Flexi-time: The main objective of the flextime policy is to provide
opportunity to employees to work with flexible working
schedules
 Employee Assistance Programs: Various assistant programs are
arranged like external counseling service so that employees or
members of their immediate family can get counseling on
various matters.
Employee Grievances and
Discipline
Definition
A written complaint filed by an employee—
claiming unfair treatment. —Dale Yoder

Any real or imagined feeling of personal injustice

which employee has concerning his employment
relationship. —Keith Davis

Any dissatisfaction or feeling of injustice in

connection with one’s employment situation that
is brought to the notice of management.—Beach
Features

 A grievance refers to any form of discontent or

dissatisfaction with any aspect of the organisation.
 The dissatisfaction must arise out of employment
and not due to personal or family problems.
 The discontent can arise out of real or imaginary
reasons.
 The discontent may be voiced or unvoiced.
 A grievance, broadly speaking, may refer to
perceived non-fulfillment of one’s expectations
leading to dissatisfaction with any aspect of the
organisation.
Forms of Employee Grievance:

1) Factual.
2) Imaginary.
3) Disguised.

Causes of Employee Grievance:

1) Style of Management.
2) Social Distance.
3) Implementation of Personnel Policies.
4) Communication Gap.
5) Supervisory Practices.
6) Union Practices.
- Multiplicity of Unions.
- Malpractices within unions.
7) Grievances resulting from Personal Maladjustments
- Employee Attitude.
- Health Problems.
- Impractical Expectations.
8) Working Conditions.
Identifying Grievances:

1) Observation.
2) Grievance Procedure.
3) Gripe Boxes.
4) Open-door Policy.
5) Exit Interview.
6) Opinion Surveys.
Effects

 Grievances, if they are not identified

and redressed, may adversely affect
workers, managers and the organisation
as a whole. The effects are:

On production include

On the employees

On the managers
Essential Prerequisites of
a Grievance Procedure

Conformity with statutory provisions

Unambiguity

Simplicity

Promptness

Training

Follow up
Steps in the Grievance
Procedure
Identify grievances

Define correctly

Collect data

Analyze and solve

Prompt redressal

Implement and follow up

Grievance Management in
Indian Industry
There are three legislations dealing with grievances
of employees working in industries.

In India, a Model Grievance Procedure was adopted

by the Indian Labour Conference in its 16th session
held in 1958.

At present, Indian industries are adopting either the

Model Grievance Procedure or procedures
formulated by themselves with modifications in the
Model Grievance Procedure.

The grievance procedures are mostly voluntary in

nature.
 Model of Grievance Redressal Procedure:

3 Days
48 Hours
Worker Foreman Supervisor HOD

7 Days

Appeal against Manager Grievance

– within a week Committee
3 Days
Discipline

Discipline, implies orderly behaviour.

It is the observance of rules and regulations.

It means securing consistent behaviour in

accordance with the accepted norms of
behaviour.

R. D. Calhoon, ‘Discipline is the force that

prompts individuals or groups to observe
rules, regulations, standards and procedures
deemed necessary for an organisation”.
Misconduct or Indiscipline

Inconsistent behaviour of an employee

and deviation from the standard
behaviour.

Unsafe behaviour of the employee.

Immoral actions of the employee.

When employee is abusive, disturbs the

peace and is negligent towards his duties.
Causes of Indiscipline

Absence of effective leadership

Unfair management practices

Communication barriers

Non-uniform disciplinary action

Divide and rule policy

Inadequate attention to personnel problems

Victimisation
Approaches to Manage Discipline:

1) Judicial Approach.
2) Human Resources Approach.
3) Human Relations Approach.
4) Group Discipline Approach.
5) Leadership Approach.
Disciplinary Action
Issuing a letter of charge

Consideration of explanation

Show-cause notice

Holding of a full-fledged enquiry

Making a final order of punishment

Follow up
Punishment
Depending on the gravity of misconduct,
management may initiate the following punitive
actions against the employee who is found guilty:
Dismissal
Discharge
Suspension
Demotion to a lower grade
Withholding of increments
Fine
Warning/censure.
Essentials of a Good
Disciplinary System
Rules and performance criteria
Documentation of the facts
Training of supervisors
Centralization of discipline
Impersonal discipline
Progressive discipline
Discipline should be fair
Disciplinary action should be prompt
Discipline shall be flexible and consistent
Review discipline decisions
 Assignment Questions:
1. What is Employee Welfare? List out the objectives of
Employee Welfare.
2. Discuss the types of employee welfare (statutory,
non-statutory, voluntary and social security)
3. What is Employee Grievance? List out the methods of
identifying grievances.
4. Define Discipline. What are the causes of Indiscipline?
5. Briefly discuss the approaches to manage discipline.
6. Briefly discuss the essentials of good disciplinary
system.
Additional Questions to be expected from this unit:
1. Briefly discuss the steps in grievance procedure.