Mini Project Report

On
Employee Welfare Measures in Manufacturing Industry

Submitted to
Dr. Pankaj Kumar
Assistant Professor
DMS, DIT University

Submitted by
Sankalp Rawat(1000019338)
V Harish(10000)
Vishal Panwar(10000)
Aditiya Singh Tomar(10000)

DEPARTMENT OF MANAGEMENT STUDIES

SCHOOL OF LIBERAL ARTS AND MANAGEMENT
DIT UNIVERSITY, DEHRADUN
May2023
 S.No Topic Page no

1 Abstract
2 Introduction of the study 3-4

3 Objective of the Study 4-6

4 Review of literature 6-8

5 Research Methodology 9

6 Finding 10

7 Discussion and conclusion 12-14

8 Learning Outcome as MBA Student 15-17

9. References

"TO STUDY Employee Welfare Measures in Manufacturing

Industry”
GROUP MEMBERS- Sankalp, V Harish, Vishal, Aditya
 ABSTRACT
Welfare measures may be both statutory and non-statutory, laws require the
employer to extend certain benefits to employees in addition to wages or salaries. It raises
the standard of living of workers by indirectly reducing the burden on their pocket. The
work place should provide reasonable amenities for the worker‟s essential need. In the
present study an attempt has been made to study the employee welfare facilities and its
impact on employee‟s efficiency on manufacturing organization. Employees are the pillar
of the organization. Theyshould be benefited by certain plans like pension plan, children
education, Insurance etc. Thesocial evils prevalent among the employee such as substance
abuse are reduced to a greater extent by the policies. It can be concluding that the
employee welfare facilities provided by the company to employees are satisfied but still
there is a scope for further improvement. So that efficiency, effectiveness and productivity
can be enhanced to accomplish the organizational goals.

INTRODUCTION OF THE STUDY

Employee welfare and security at the working environment is one of the important measures

of life at work place. Organizations ensure that employees are exposed to a risk level which

does not affect their physical, emotional and mental health. Also the organizations do not

entertain any activity in its premises that will disturb the work life of the employees.

Employees are trained appropriately about the work and about all precautionary measures

that will prevent accidents at the work place.

Employee welfare and safety at the workplace is one of the important measures of life at

workplace. Organizations ensure that employees are exposed to a risk level which does not

affect their physical, emotional and mental health. Also the organizations do not entertain

any activity in its premises that will disturb the work life of the employees. Employees are

trained appropriately about the work and about all precautionary measures that will prevent

accidentsat the work place.

The concept of „Employee welfare‟ is flexible and differs widely with times, regions,

industry, country, social values and customs, the degree of industrialization, the general

social economic development of people and political ideologies prevailing at particular

moments.

In general, the term labour, worker, workman or employee is all used to refer to the

wage earning human agents in various industries and organizations. The term welfare

refers to an act of seeking physical, mental, moral and emotional well-being of an

individual.

However, the Committee on Labour Welfare (1969) defined the phrase to mean,

“Such facilities and amenities as adequate canteens, rest and recreation facilities, sanitary

and medical facilities arrangements for travel to and from and for accommodation of

workers employed at a distance from their homes, and such other services, amenities and

facilities including social security measures as contribute to conditions under which

workers are employed. Organizations provide welfare facilities to their employees to

keep their motivation levels high. The employee welfare schemes can be classified into

two categoriesviz. statutory and non-statutory welfare schemes.

The statutory schemes are those schemes that are compulsory to provide by an

organization as compliance to the laws governing employee health and safety. These

include provisions provided in industrial acts like Factories Act 1948, Dock Workers Act

(safety, health and welfare) 1986, Mines Act 1962. The non-statutory schemes differ from organization to

organization and from industry to industry .

1. Objective of the Study
Literature review
Motivation is one of the most important factors for any organization. According to
Thompsonand McHugh (2002), it is one of the five factors that determine the existence of
any organization, as they put motivation on an equal footing with men, money, machines,
and morale. Determining and understanding the factors that motivate employees is an
essential need, since the performance of any organization depends on the availability of a
satisfied and motivated workforce. Moreover, motivation can influence managers‟
effectiveness as, according to Analoui (1999-2007), motivation is one of the parameters of
managerial effectiveness. Consistent with the previous opinion, Gage and Berliner (1992)
consider motivation as the engine and the steering wheel of a car, as they believe that
motivation generates the energy and controls the behavior of any person. Because, if we
discover and understand what motivates an employee, we will then be able to know the
correct button to press to make him work harder, the correct levers to drag to make him
change his behavior, and the correct rewards that can be used to direct his attitudes
(Huczynski, 2001).
Maruthamuthu k, (2003), has observed that the overall impression is that an atmosphere of
satisfaction prevails on campus, but there is scope for improvements in certain area like
recreation facilities, and bonus. With implementation of innovative schemes and
improvements, better labour- management relationship may be established and maintained
infuture.
Dinoka Perera (2015) conference paper made the title of “The impact of welfare on job
satisfaction among non-managerial employees”, study says that in today‟s competitive world
every company facing the challenge like, how to reach peak level, if employees do not give
full commitment to achieve organizational objectives. Satisfaction is the main concept in
human Resource Management. Employees and employers are the assets of the company. So,
companies have to adopt, update and provide welfare facilities to its employees and finally
takeresponsibilities of its employees. That helps to attract new employees and retain existing
employees

Medical facilities:
Medical care and health facilities are devised, not only to provide protection against
sickness, but also to ensure availabilities of a physically fit and stable manpower for
economic development. Ill health of workers would lead to wide spread absenteeism, low
morale, bad time keeping, decreased production, spoiled work and ultimately results in bad
management relations .therefore, provision of medical facilities for the workers is of great
importance in India. It also conducted medical camp and immunization camp in and
around under the scheme of “Health for all”.the medical assistance scheme covers workers,
officers, apprentices, disputationists and their dependents. But it is not applicable for
casual and contract labour .

Transportation facilities
Transportation assumes vital importance because the workers come from distant places
scattered around the residential areas to attend their duty. As the distance between work
place and workers residence, in most cases, range between 5 kilometers to 20 kilometers,
there is need to provide transport facility to suit the shift timings of the workers. They
collect a nominall amount as fare fromthe passengers

Housing
Housing is the one of the most important problem for the industrial workers in india. Lack
of proper housing creates discount among the workers and kills their finer instinct
provision of housing facilities near the work place is the responsibility of the management,
but in the general interest of the workers, the government may also assume part of the
responsibility.

Canteen
Many organization sector provides the Canteen facilities for its employees. The canteen is
administrated by the canteen committee or by the human resource department and foods
are suppliedat concessional rates .

Provident fund
Pf is the important social security measures which can take care of the worker after
retirement. The manufacturing sector is also contributing its matching share. These
amounts are paid to the workers atthe time of their resignation or to the nominees in case of
death. Workers could avail loan from their PF account

Insurance schemes
All the regular employee of the manufacturing companies is covered by the family benefit
insurancescheme and group insurance schemes. The insurance amount along with accrues
bonuses will be paidto the workers on completion of services. In case of termination, the
amount due to the employee is refunded with simple interest, provided the service is more
than 3 years. However, if a workman leaves the corporation for whether reason before the
completion of 3 years , no amount will be paid to him. The management deducts certain
amount per month for these schemes

Gratuity
As per the provision of the Gratuity act, the manufacturing sector has to pay Gratuity to the
workers atthe rate of 15 days wages for every completed year of service based on the rates
of wages last drawn by the workers concerned.

Laws governing Labours in India

Over the years, the protection of labourers has gained importance so that the rights of the
employees are protected as well and not just that of the employers. Also, for that, there
have been a ton of Laws which have been authorized by the Government of India too.
Some of the laws that have made to serve this purpose are as follows:
1. Trade union act,1926
2. Industrial dispute act ,1947
3. Minimum wages act,1948
4. Other laws: Other laws which work towards the protection of the rights of these
employees are The factories act,1948, maternity benefits act,1961, payment of bonus
act,1965, ect.
All these laws have been enacted so that the employees have a platform to raise their
concerns as well as to protect their rights and if they have been violated can approach
the help of the court as well.
Amendments introduced in labour laws in 2020
Recently, the parliament had passed three bills that completely changed the face of labour
laws. All the existing 29 Labour Law statutes have been consolidated and only this new law
which has been passed will be governing labour laws in India. The three new Bills which
have been passed by the parliament are
1. The industrial relations code bill, 2020.
2. The code on social security bill, 2020.
3. The occupation safety, health, and working conditions bill, 2020.

Reasons for such amendments

One of the major reasons as to why there has been such a significant change in the Labour
law is because it is the need of the hour especially given this covid era, the rights of workers
has to be protected. Many workers have been facing a lot of issues regarding their
employment as many are ended and laid off without a explanation or facing concerns with
their working environment etc, therefore it is important for laws also to be amended along
with the development of labour for the smooth functioning of the economy .
2.Research methodology
Methodology describes the method of achieving objectives through collection of data. The
data collected can be either by primary sources of data or secondary sources of data

Data collection
Primary data: Primary data can be collected either through experience of through survey.
That which are, collected a fresh and for the first time and thus happen to be original in
character that is called primary data. This data collector from the employees clerks etc., by
administrating the questionnaire having face to face fraction with them.

Secondary data: This data is collected from various sources which have been already
existed
or preserved i.e., from textbooks, annual reports and the information gathered from print
media and through websites.
This study focus on the employee’s opinion towards the various labour welfare measures
provided in the manufacturing sector .This study helps to understand the satisfaction
towards the welfare measures and how welfare measures improve the motivation of the
employees in manufacturing sector. This is an empirical study.
Sampling size: The survey covered 100 workers out of 850 workers in the organization

ANALYSIS AND FINDINGS

 The welfare facilities in Manufacturing Industry
is satisfactory.
 Most of the employees are highly benefited
with the welfare measures and also it
 The employees are satisfied with over all
medical facility provided.
 The employees opined that welfare measures
plays as a motivational factor.
Findings
The welfare facilities in Manufacturing Industry is satisfactory.

Most of the employees are highly benefited with the welfare measures and also it has the
positive effect in the level of work satisfaction.

Majority (50%) of the employees were satisfied with safety facilities provided to them.

The employees are satisfied with over aa medical facility provided.

The employees opined that welfare measures plays as a motivational factor.

Implications and Conclusion

 Manufacturing Companies are needed to ensure

proper amenities, environment
Manufacturing Companies are needed to ensure
proper amenities, environment
Manufacturing Companies are needed to ensure proper amenities, environment and monetary
benefits to enrich their satisfaction with respect to their welfare
measures fulfillment.
Employees opine that,
Amenities satisfaction is the
dominant aspect need to
Employees opine that, Amenities satisfaction is the dominant aspect need to satisfy by their
companies followed by environment satisfaction and monetary
benefits satisfaction.

Since, there is a significant

difference in the amenities
satisfaction factor with
Since, there is a significant difference in the amenities satisfaction factor with respect to semi-
skilled and highly skilled employee’s welfare satisfaction. The
companies are suggested to focus different welfare measures fulfillment based
on their level of employment to enhance the employee labour welfare measures
satisfaction.

The manufacturing companies

are suggested to strictly
follow the labour
The manufacturing companies are suggested to strictly follow the labour legislation laws
with regard to the fulfillment of welfare measures in their
companies to enrich the employee satisfaction.

A successful human resource management contributes to a powerful labour welfare and

smooth industrial relations. Welfare measures provided by the industry directly impact
the work competence of the employees. Proper measures should be provided to the
employees and increase proficiency and effectiveness. The strength of any organization
depends entirely on sincere working of all the employees. The management should take
special care to frame certain policies procedures to improve the welfare and safety
measureof the organizations.

Most of the employees are highly benefited with

the welfare measures and also it

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