A REPORT ON
IMPROVEMENT IN EMPLOYEE WELFARE SCHEME BY USING NEW
I, Naina Bhati, student of MBA at Amity University hereby declare that, I have completed
my Project on “IMPROVEMENT IN EMPLOYEE WELFARE SCHEME BY USING
NEW TECHNIQUES” in TATA Iron and Steel Company. The information submitted is
true and original to the best of my knowledge.
CERTIFICATE OF BONAFIDE
The success and outcome of this project required a lot of guidance and assistance from many
people and I am extremely privileged to have got this support along the completion of my
I respectfully thank Mr. Vinod Zare, for providing me an opportunity to do the project work
and extending all support and guidance, which enabled me to complete the project.
I am thankful to and fortunate enough to get constant encouragement, support and guidance
which helped me in successfully completing project successfully.
The present study was under taken with such a task in mind and it aims at unearthing the
strengths and weakness of the welfare measures in TATA Company. Since organizations
exist to achieve goals. The degree of success that individual employees have in reaching their
individuals goals is important in determining organizational effectiveness. The assessment of
how successful employees have been at meeting their individual goals, therefore, becomes a
critical part of Human Resource Management. This leadsus to the topic of Employees
This project aims at knowing ³Welfare System´. In this project the work atmosphere and the
welfare measures provided by the organization has studied. It also aims at finding out the
employees relationship with the management.This survey is done within the organization.
The sample size is 110. The data was collected by administering questionnaire and by
adopting direct personal contact method. The persons met are all employees of the concern.
Collections of data were analyzed and tabulated in a sequential manner and the
interpretations are given along with the tabulation. The conclusion and suggestions are also
given in this report for the improvement of this system in the organization.
TABLE OF CONTENT
Chapters Particulars Page No
Need of the Study
Importance of the Study
Scope of the Study
Objective of the Study
2 Employee Welfare
Features of Employee Welfare
Principles of Employee Welfare
Objectives of Employee Welfare
Types of Employee Welfare
Importance of Employee Welfare
Employee Welfare Agencies
Employee Welfare Schemes
Statutory and Non-Statutory Welfare Schemes
Disadvantages of Employee Welfare
Employee Welfare and Benefits
Employee Welfare in India
Restrictions in Factories Act on the employment of
National Commission on Employee Recommendation
Types of Employee Welfare
Approaches to Labour Welfare
3. Organisation at Glance
Background of Company
Vision and Values of Company
Mission of Company
HR Practices in Organisation
Data Collection Techniques/Tools
Welfare Measures of Tata Company
Findings and Recommendation
5 Conclusion 98
6 References 100
IMPROVEMENT IN EMPLOYEE WELFARE SCHEME BY USING NEW
Introduction to Employee Welfare
Employee welfare defines as “efforts to make life worth living for workmen”. The efforts
have their origin either in some statute formed by state or in some local custom or in
collective agreement or in employer’s own initiative.
? To give expression to philanthropic and paternalistic feelings.
? To increase the morale and win over employee’s loyalty.
? To combat trade unionism and socialist ideas.
? To build stable labour force, and reduce labour turnover and absenteeism.
? To develop productivity and efficiency of workers.
? To save one from heavy taxes on surplus profits.
? To enhance public image and earn goodwill.
? To reduce the threat of government intervention further.
? To make recruitment more effective (as these benefits add to job appeal).
Welfare is comfortable living and working conditions. Employee welfare means the efforts to
make life worth living for workman.
“Employee welfare is a comprehensive term including various services, benefits and facilities
offered to employees & by the employers. Through such generous fringe benefits the
employer makes life worth living for employees.”
While the cost on training, development, etc, can be separately recorded and to be within the
eventual, welfare activities expenses can be added to the investment. Unlike other assets
which have depreciation value as years passes by, value of human assets appreciates with
The value can depreciate by aging process which is generally hastened up by worries,
unhealthy conditions, etc. once this process is slowed down, or at least if the employee is
made to feel young in spirits the value of this asset appreciates considerably.
Facilities like housing schemes, medical benefits, education and recreation facilities for
workers’ families help in raising their standards of living. Employee welfare measures
increase the productivity of organization and promote healthy industrial relations thereby
maintaining industrial peace.
Industrial progress of country depends on its committed labour force. In this regard the
importance of labour welfare was recognized early as 1931 when the Royal commission on
Labour stated that the benefits which undergo the nomenclature are of great importance to the
worker who is unable to secure by themselves. The schemes of labour welfare may be
regarded as a wise investment which usually brings a profitable return in the form of greater
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
Welfare includes anything that is done for the improvement and comfort of employees and it
is provided in addition of 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 to be in monetary terms only but also in any kind/forms. Employee welfare includes
monitoring of working conditions, creation of industrial harmony through infrastructure for
the health, industrial relations and insurance against disease, accident and unemployment for
the workers and for their families.
Employee welfare includes all the activities of employer which are directed towards
providing the employees with certain facilities and services in addition to wages or salaries.
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
the work life better and also to raise the standard of living of their.
? Any employer-maintained plan, offering policyholders and their dependentsservices
or benefits upon illness, death, or unemployment. These may include medical care or
? “Employee welfare is a comprehensive term including various services, benefits and
facilities offered to employees ; by the employers. Through such generous fringe
benefits the employer makes life worth living for employees.”
? “Employees who believe that management is concerned about them as a whole person
– not just an employee are more productive, more satisfied, more fulfilled. Satisfied
employees mean satisfied customers, which leads to profitability.” –Anne Mulcahy
NEED OF THE STUDY
? To know about the Constitutional provisions.
? To find out the facilities entitled by the Company
? To find whether Labor welfare helps in providing good industrial relations .
? To know about the employees satisfaction towards welfare measures
IMPORTANCE OF THE STUDY
? It helps in improving recruitment.
? Employers get stable labour force by providing welfare facilities. Workers take
active interest in their jobs and work with a feeling of involvement and
? It reduces labour turnover & absenteeism.
? It helps in improving industrial relation & industrial peace.
? It improves moral & loyalty of workers.
? It helps in increasing productivity & efficiency by improving physical & mental
SCOPE OF THE STUDY
? The present study has been undertaken to study find out effectiveness of employee
? The study can be used to bring out the solution for the problem faced by the
employees availing the welfare measures.
? To find out the practical difficulties involved in welfare measures that can be
evaluated through the study.
? Through the study, company would be able to know the satisfaction level of
employee onwelfare measures
OBJECTIVE OF THE STUDY
? The primary purpose of this study is to investigate how welfare programs affect
? Secondly why employers provide employee welfare programs and how they help
organizations in retaining staff and increasing workplace productivity.
? Finally to highlight employee welfare problems in the selected organization and to
provide suggestions to improve employees’ job satisfaction, working conditions
and health and safety issues at workplace.
To provide better physical and mental health to workers and thus promote a
healthy work environment
? To provide Facilities like housing schemes, medical benefits, and education and
recreation facilities for workers? families help in raising their standards of living.
This makes workers to pay more attention towards work and thus increases their
? Employers get stable labor force by providing welfare facilities. Workers take
active interest in their jobs and work with a feeling of involvement and
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.
? To provide better life and health to the workers
? To make the workers happy and satisfied
? To relieve workers from industrial fatigue and to improve intellectual
FEATURES OF EMPLOYEE WELFARE
1. Labour 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 the regular wages and other economic benefits
which are already available to workers due to legal provisions and collective
3. Labour welfare schemes are flexible and ever-changing. New welfare measures are
added to the existing ones from time to time as per the requirements.
4. Welfare measures may be introduced by the employers, government, employees or by
any social or charitable agency.
5. The purpose of labour welfare is to bring the development of the whole personality of
the workers to make the workforce better.
The very logic behind providing welfare schemes is to create healthy, efficient, loyal and
satisfied labour force for the organization. The purpose of providing such facilities is to give
them better work life and also to raise their standard of living. The significant benefits of
welfare measures can be summarized as follows:
? A healthy work environment is promoted by providing better mental and physical
health to workers.
? When workers? families get facilities like medical benefits, housing offers, and
education and recreation facilities, it helps in raising their standard of living. This
makes workers more attentive towards their work and therefore productivity of
workers is also incremented.
? When employers provide welfare facilities, they achieve stable labor force. This too
tends workers to take interest in their works and it makes them work with
participation and involvement.
? When there are employee welfare measures, the productivity of organization is
incremented, healthy industrial relations are promoted and thus industrial peace is
? Welfare policies also reduces certain social evils that are prevalent among the labors
such as substance abuse, etc. to a huge extent.
PRINCIPLES OF EMPLOYEE WELFARE SERVICE
Following principles are to be followed while setting up employee welfare service:
? Real needs of the workers should be satisfied by Employee welfare service.
Determination of employee?s real needs must be done by Manager with active
participation of workers.
? The service should be such as that can be handled by cafeteria approach. There are
large differences in their choice of benefit because of the difference in Sex, age,
marital status, number of children, type of job and the income level of employees.
This is known as the cafeteria approach. It may be difficult to operate and administer
but such approaches individualise the benefit system.
? The employer should n ot assume benevolent posture.
? The cost of the services should be calculated and its financing established on a sound
? There should be evaluation or periodical assessment of the services and should be
timely on the basis of feedback.
One of the primary goal of employee welfare promotion is to create happy employees.
However, this type of objective has a greater reason and is not always due to the benevolence
of the employer. Good employers know that a happy employee is one that will be productive
and do his job correctly and so they genuinely care for their employees. In careers like sales
where production is essential for making money, employers those who promote employee
welfare know that the employees will make more money for themselves and for the company.
Another reason to promote the well-being of an employee is, that it can improve employee?s
loyalty. In the long time, employees who are taken care of by their employers are less likely
to jump and change the companies or careers. Even in situations where they might get better
money for working with other company, the employee who feels accepted by their employer
will not even consider other job offers.
As employee welfare deals specifically with the well-being of employees. When the wishes
and wants of employees are taken into consideration only then employee welfare programs
adopted by employers will become more effective. In organizations where employees are
well taken care of and the employees are also asked to provide their suggestions as how to
improve the company, then Employees feel as they play an dynamic role for the improvement
of the company.
Health promotion is another major objective of mnay employee welfare programs. Prior to
the rise of labour unions in the United States, most employees did not have any health
insurance or any type of programs which promotes preventive health measures for them.
However, the health of an employee is integral for the success of a company. Employees who
are happy and healthy come up to work every day and do their jobs efficiently and accurately,
whereas those that are in some poor health issues and have no means to change the situation
will miss work and slow production.
OBJECTIVES OF EMPLOYEE WELFARE
Employee welfare is a major concern for employers. Prior to the labour union movements in
the early 20th century, employers cared little about employee welfare and instead thought of
employee labour as something which can be bought at the lowest price possible. In today’s
world, employers are more careful to watch out for employee welfare. In short, employee
welfare involves watching out for the good of all employees. Employers should seek several
objectives in promoting employee welfare.
“Employees who believe that management is concerned about them as a whole person – not
just an employee are more productive, more satisfied, more fulfilled. Satisfied employees
mean satisfied customers, which leads to profitability.” –Anne Mulcahy
Employee welfare is taking care for the well being of employees by the employers.
Objectives – motivation, retention, raise their standard of living, help the employees to
achieve the balance in their work-life, job satisfaction and cut down attrition rate.
There are 2 types of employee welfare activities –
Intra-mural facilities which are provided in workplace like first aid, drinking water, library,
training, compensation, housekeeping canteen services, etc.
Extra Mural facilities which are provided outside the workplace like health and medical
services, accommodation, washing facility, plentiful market, Day care of children for
working women, recreational facilities etc.
Welfare services which are provided by the companies to their employees would help the
companies to achieve their profit targets as then the employees will get highly motivated and
then perform better.
TYPES OF EMPLOYEE WELFARE SERVICES
1. SAFETY SERVICE
Prevention of accidents is an objective which requires explanation. The costs of accidents are
huge in suffering to the injured, in reduction or loss of earnings, in disabilities and
incapacities which afflict those involved and in compensation, insurance and legal costs, in
lost time, filling in reports and attending to enquiries, and in spoilage of materials, equipment
and tools to management.
Accidents are the results of two basic factors: technical and human. Technical factors include
all engineering insufficiencies, oriented with plant, tools material and general work
environment. Therefore, for e.g., insufficient ventilation, poor machine guarding, uneven
lighting and careless housekeeping are some hazards which may lead to accidents. Human
factors involve all unsafe acts on the part of employees.
An unsafe act is ordinarily the consequence of carelessness. New and young employees,
because of their difficulty in adjusting to the work situation and to life in general, also have
many more accidents than do old and nature workers.
The Phenomenon of Accident Proneness. It is a belief among some people that some
persons are accident prone, i.e., their personality trait as opposed to some characteristic of the
environment which predisposes them to have more accidents than others in work condition
where the risk of hazards is equal to all.
Components of a Safety Service
Among the many components of a safety service the following have proved fruitful when
applied in combination:
? Appointment of safety officer
In big organizations, the appointment of a safety officer to headthe safety department is a
must. The personnel manager may look after the functions of safety department in small
The head of the safety department, who is ordinarily a staff man, is granted power to inspect
the plant for unsafe condition, to promote sound safety practices (through safety campaigns
and posters), to report violations to the plant manager, and to make safety rules.
? Support by line management
The head of the safety department, whether enjoying a staff or a functional position, by
himself or herself, cannot make a plan safe. His appointment fills the line management into
assuming that all the safety problems have been solved.
? Elimination of hazards
Although complete eliminating all hazards is virtually an impossible task, but we can take
prevention to decrease them.
? Job safety analysis
Expert analysis to be done for all job procedures and practice which will help to discover
hazards. He or She should then suggest changes required in the motion patterns and sequence.
A poorly placed employee is more apt to incur loss than a properly placed
employee. Employees should be placed on jobs only after careful estimation and also
considering the job requirements with those which the individual apparently possesses.
? Personal protective equipment
Variety of personal safety equipment is available nowadays which can be used for the
? Safeguarding machinery
Safety guards must be securely fixed to all power driven machinery.
? Materials handling
Though often ignored, the careless handling of heavy and inflammable materials is an
important reason for several injuries and fire.
? Hand tools
Minor injuries results if improperly using a poorly designed tool or using a goodtool.
Therefore, close supervision and instruction needs to be given to the employees on the proper
use of the tool.
? Safety training, education and publicity
Safety training is concerned in developing safety skills, whereas safety education is
concerned in increasing contest programmes, suggestion awards, safety campaigns, and
various audio-visual aids. All this can be considered as different forms of employee
? Safety inspection
An inspection by committee or a trained individual for detecting evidence of possible safety
hazards (such as poor lighting, unguarded machines, slippery floors, faulty electrical
installations, disregard of safety rules and poor work methods) is a very effective device to
2. HEALTH SERVICE
The prevention of accident constitutes only on segment of the function of employee
maintenance. Another equally important segment is the employee’s general health, both
physical and mental.
There are two aspects of industrial health services
2. Curative, the former consists of
3. pre-employment and periodic medical examination.
4. Removal or reduction of health hazards to the maximum extent possible.
5. Surveillance over certain classes of workers such as women, young persons and
persons exposed to special risks.
An employee very often comes across problems which have emotional content. For
example, he may be nearing retirement and feeling insecure because of that or he may be
getting promotion and feeling hesitant to shoulder increased responsibility or he may be
worried due to some family problem.
IMPORTANCE OF EMPLOYEE WELFARE
Advantages of Welfare Benefits
Government benefits which are provided to people who are with little or no income are
referred to colloquially as welfare benefits. The term “welfare” can states to a number of
different programs in the United States, but often refer to cash assistance. In some cases,
these money can be used however the recipient wish. In others, the money can only be used
for specific uses, such as food stamps that can only be used to buy groceries.
A primary advantages of welfare benefits is promoting the health of the people who are
receiving the benefits. According to economist Roger Arnold, author of the book
“Economics,” this is because there is a general correlation between income and health. People
who have no income and no health care will, statistically, live shorter and less healthy lives
than people who have enough income to buy proper food and to pay for medical care.
Support for Children
While many adults were able to make choices in how much income they choose to earn,
many children do not have this same luxury. Children generally rely on the money that their
parents are able to make. Welfare payments, particularly those which are directed towards the
care of children, which allows children to grow up with better nutrition, medical care and
possessions which make a more comfortable standard of living.
The provision of welfare has been shown to lower crime. Although some may argue that
welfare constitutes a bribe, providing people with some income takes away an incentive to
commit property crimes designed to provide the person with money or property. Welfare
alleviates some of an individual’s economic need, thereby lowering crime and increasing the
general stability of society as a whole.
Another advantage for welfare benefits is that it evenly distributes a society’s wealth. Many
considers this as a benefit in itself. However, others may consider to provide money to the
people who did not earn it, is unfair. There is, according to Arnold, a demonstrated
correlation between income distribution in a society and that society’s stability. Societies with
greater inequities in wealth generally suffer more social and political turmoil.
The employee welfare schemes act as a morale booster for the employees. When the
employees gets an appreciation for what they do, it helps in increasing the work efficiency of
the employees. When the work done is applauded by the organization, it proves lucrative for
both the company as well as the employees. The output might not come as expected if the
work done by the employees is not appreciated as they should be. So, it is essential to have
employee welfare schemes.
Boost the morale of employees
The employees work only when they are motivated to work. If the company wishes to get
100% output, then it is the company who has to put in the efforts to encourage the employees.
No one else would deliver the expected results. So, in order to boost the morale of the
employees, it is essential to offer employee welfare measures.
To build a competitive edge
Competition is must if the company wants employees to work efficiently. In order to form a
competitive environment in the office, the employer must provide employees with
opportunities. The competitive edge in the work environment can only help in getting the
required work done from the employees. It is vital to provide employees with welfare
schemes for the healthy work environment or the healthy competition required within the
To get timely result
If the companies want the employees deliver the work on time or to give the result on time,
then there needs to be some extra effort by the company so as to encourage the employees to
give work on time. This can be done only when the employees are encouraged apart from
praising their work and give some employee welfare schemes. If they expect extra work from
the employees, then they should also be give some extra benefits to the employees. Only then
the they can expect timely results for the company.
Improved industrial relations
The employees when benefited, they give good industrial relations too. Not just the work
output is good, but also the amiable relations are also built by the employees when they are
encouraged through various schemes. So, it is very essential to provide various employee
schemes to make the employees work in a better manner for the company.
Mental and moral health are also improved
The employees if given different facilities at work; it not only improves their mental health
but also it helps in becoming a good citizen. So, it helps for overall development of the
employee. Employee development is equivalent to the Organisational development. So, if the
companies want themselves to grow, they also need to help employees for their growth.
The employees get various social benefits which are also advantageous to the company. The
social benefits increase the productivity and also the work efficiency of the employees. The
good work by the employees also helps in increasing their remuneration. All this helps in
increasing the standard of the employees which everyone appreciate and accept.
Invites more employees
The employee welfare schemes invites more employees within an organization. It is one of
the good ways of recruiting employees. If your company have less staff then such schemes
helps to invite more employees within the company. More the employees, the vaccancies will
be filled and the work will be done in proper order. Ultimately, it will benefit the company
only. And so, the work will be executed in the proper order. This is the reason it is essential
to initiate various employee welfare activities schemes in the company.
Urge to do better
The benefits to the employees urges the other employees to work better. Such benefits creates
a competitive edge and helps the other employees to grow. The employees who get such
schemes motivates the other employees to perform better which creates a competitive
environment in the organization.
Helps in overall growth of the employee
These schemes are a motivating factor to the employees and they helps in the overall growth
of the employees. Both, the organizational goal and also the personal goals are easily
achieved by the employees, which not only benefits the company but also the employees
working for the company.
Retains more employees for more time period
The companies train the employees to get better outcomes. But if the employees leave the
company early, it not only affects the employees but also the company. So, the company has
to get some schemes to retain its employees for a longer period of time and that is only
possible if they introduce adequate employee welfare programs. The employees if get the
required share of the appreciation then they would never think of leaving the company. So, it
is better to give the employees the welfare schemes.
Employees work harder
The employees would certainly work hard if extra benefits are also provided them. Benefits
are never refused by anyone, they are appreciated by all. So, the employees will work harder
if they are given the great deal to work for. Salaries are the obvious thing they work for but
when they are given something extra then salary, the employees will work harder for that.
EMPLOYEE WELFARE AGENICES
Under Factories Act 1948 and Mines Act 1952, the central government has made elaborate
provisions for the safety, health and welfare. These acts provide for crèches, canteens,
shelters, rest rooms, etc.
The Central Government tries to extend its helping hand through vanous Acts covering the
health, safety and welfare of workers. The Factories Act, 1948; Employees State Insurance
Act, 1948; Mines Act, 1952; Shipping Act, 1948; Plantation Labour Act 1951; Motor
Transport Workers Act, 1961; etc., provide for creches, canteens, restrooms, washing
facilities, etc. Labour welfare officers oversee the welfare activities closely and ensure justice
to workers. Statutory welfare funds are created to provide educational, housing, recreational
and medical facilities to workers.
Welfare facilities to workers is provided by government in different states and union
territories. State government prescribes rules for the welfare of the workers and ensures
compliance with the provisions under various labor laws.
A statutory welfare fund is created for offering educational, medical, recreational and other
facilities to plantation workers in Assam. Labour Welfare Centres are administered by
welfare boards in Maharashtra, Gujarat, Karnataka and Punjab.
Employers in India in general looked upon welfare work as fruitless and barren though some
of them had done the pioneering work.
Enlightened employers like Hindustan Lever, TISCO, L & T, Siemens, Godrej, Bajaj, Voltas,
LIC, Birlas, Philips, Sandoz, HMT, Air India, Hindustan Copper, Hindustan Zinc, BHEL,
RCF etc. have undertaken welfare activities for the interest of workers. The management of
TISCO runs a well equipped hospital in Jamshedpur, supported by health centres and
dispensaries in different residential localities. Family clinics, credit societies, clubs, schools
gymnasiums, canteens, creches, are also set up by TISCO for the benefit of workers. For the
welfare of the workers, Employees Associations have also joined hands with the employers.
The Indian Jute Mill Association, The Bombay Mill Owners Association are worth should be
mentioned here. Medical, recreational facilities and educational are also extended in paper,
sugar, engineering industries, steel cement also, by the employees and employees’
Trade Unions have not been seen doing much for welfare of workers in India. But there are
few exceptions in the list, for e.g., The Mazdoor Sabha, Kanpur and the Ahmedabad textiles
Towards labour welfare activites, the efforts of trade unions in India are not important.
Multiple unionisms, poor finances; often come in the way of undertaking labour welfare work
enthusiastically. There are certain exceptions to this – like Mazdoor Sabha of Kanpur, the
Ahmedabad Textile Labour Association, Railway men’s Union and the Indian Federation of
Labour. Welfare facilities such as sports centers, running schools, cooperative stores,
libraries, recreation and cultural centers, legal cells, labour journals, etc. are provided to
workers by these labour organizations. Running Bal Kanya and Mahila Mandals, organizing
social gatherings, music and dance festivals, prohibition campaigns – also come w1der
welfare work undertaken by unions. Though we cannot expect much from the trade unions in
the field of welfare, they can at least identify the minimum facilities needed by workers and
bring the same to the notice of Government and the employers. They can act as a
representative of the workers and secure the implementation of statutory measures.
Educational campaigns covering pressing issues such as family cleanliness, planning,
prohibition, etc For the interest of workers, they can carry out educational campaigns
covering issues such as prohibition, family planning, cleanliness, etc.
Some charitable social service organizations and philanthropic like: – YMCA, Seva Sadan
society, etc. are the contributors for the welfare of employee.
In addition to the above social service organizations such as Seva Sadan Societies of Bombay
Women’s Institute in West Bengal, The Bombay Social Service League, Assam Seva Samity,
etc., also provide services to the working class on a voluntary basis. The overall picture
regarding welfare of labour work in India is somehow distressing. Welfare amenities have not
been provided properly, except in the units which is managed by progressive employers or in
the modem units where the latest technology requires the maintenance of adequate standards.
The letter of the law has also not been strictly observed in most units, owing to poor
supervision. Employers, however, argue that welfare work would effect the fmances of the
organization and wherever such facilities have been provided they have either remained
unutilized or not used properly by the workers.
The need of the hour, to sum up, is to extend the coverage of statutory welfare amenities to
all units employing a minimum number of employees and create a proper administrative
network to oversee the implementation strictly.
EMPLOYEE WELFARE SCHEMES
Labour welfare schemes may be statutory, voluntary or on mutual
It is statutory when such activities have to be undertaken in lieu of the legislation given by
the government like drinking water facility, electricity, giving first aid, etc.
It is voluntary when the activities are undertaken from their own side by the employers, for
example providing flexible work timing to the employees, providing with regular health
checkup camp etc.
It is mutual when all parties join hands for the social and economic upliftment of the workers.
On the basis of location of welfare activities.
The types of welfare services are as follows:-
These are provided within organization:-
? Fire Extinguishers
? Rest Rooms
? Washing and Bathing facilities
? Provision of Safety measures like fencing and covering of machines.
? Provident fund, Provision of pension, fringe benefits, etc
? Drinking Water
? Good layout of Plant and machinery.
These are provided outside the organization
? Interest free loans
? Child Welfare
? Workers Cooperative stores
? Leave travel facilities
? Vocational Guidance, etc.
STATUTORY AND NON-STATUTORY WELFARE SCHEMES
To keep the motivational levels high of the employees the organizations provide welfare
facilities to their employees. The employee welfare schemes can be classified into two
categories i.e. statutory and non-statutory welfare schemes. The statutory schemes are those
schemes that the organization has to compulsorily provide their employees as they are
compliance to the laws governing employee health and safety measures.
These include provisions provided in industrial acts like Dock Workers Act (safety, health
and welfare) 1986, Factories Act 1948, Mines Act 1962. The non statutory schemes differ
from organization to organization and from industry to industry.
Statutory Welfare Schemes
The statutory welfare schemes include the following provisions:
1. Drinking Water
Safe and hygienic drinking water facilities should be provided at all the working places.
2. Facilities for sitting:
In every organization, especially factories, seating arrangements which are suitable should be
3. First aid appliances:
First aid appliances to be provided and they should be readily accessable/ 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 should be provided in the office and factory
premises. Also they should be maintained and kept in a neat and clean condition.
5. Canteen facilities:
Cafeteria or canteens should to be provided by the employer for employees. Cafteria and
canteens should also serve hygienic and nutritious food to the employees.
In every work place, such as store places, ware houses, in the dock area and office premises
spittoons should be provided in convenient places. They should also be maintained in a
Proper and sufficient lights should be provided to the employees so that they can work safely.
Specially during the night shifts.
8. Washing places:
Adequate washing places such as bathrooms, wash basins with tap and tap on the stand pipe
should be provided in the port area which are in the vicinity of the work places.
9. Changing rooms:
Adequate changing rooms should be provided to the workers for changing their clothes in the
factory area and also in the office premises. Adequate lockers should also be provided to the
workers for keeping their clothes and belongings.
10. Rest rooms:
Adequate numbers of restrooms should be provided to the workers with also the provisions of
wash basins, water supply, bathrooms, toilets, etc.
Non Statutory Welfare Schemes
Many non statutory welfare schemes may include the following schemes:
1.Personal Health Care (Regular medical check-ups):
Some of the companies provide the facility for extensive health check-up. And this is
voluntary ande depends on the employer.
The main objective of the flextime policy is to provide opportunity to the employees to work
with flexible working schedules. Flexible working schedules are initiated by employees and
they are approved by the management to meet business commitments with supporting the
employee personal life needs.
3. Employee Assistance Programs:
Various assistant programs are arranged like external counseling services so that employees
or members of their immediate family can get counseling on various matters.
4. Harassment Policy:
For protecting an employee from harassments of any kind, guidelines are provided for proper
action and also for protecting the aggrieved employee.
5. Maternity & Adoption Leave :
Employees can avail maternity or adoption leaves. These days paternity leave policies also
also been introduced by many companies.
6.Medi-claim Insurance Scheme :
This insurance scheme provides an adequate insurance coverage of employees for all the
expenses related to hospitalization due to disease illness, or pregnancy or injury.
7. Employee Referral Scheme:
In several companies employee referral scheme is implemented for encouraging the
employees to refer their friends and relatives for employment in the organization. Also, the
referral employees if selected, the many companies provide bonus to employees or any
8. Subsidized food, Cooperative stores.
Many companies provide the subsidized food to their employees. Some companies also
provide co-operative stores who provide the food in subsidized amount.
The Committee on Labour Welfare, 1969, recommended the provision of transport facilities
for the workers so that employers can reach the workplace punctually, comfortably and also
on time. Most employers have, however, recognized the workers’ need for transport services
and therefore they have responded. MAHAGENCO also had provided the facility to its
employee at Parli TPS (New) for the hassle free to and fro transport.
10. Canteen, restrooms and lunchroom: Canteens established inside factories or offices
generally offer food at subsidized rates. In modem organizations, food courts offering a
variety of continental and inter continental cuisine have become quite popular in these days.
Washing facilities, leave travel concessions, medical aid. Most factories have first-aid
facilities for taking care of any kind of minor injuries. Reimbursement of medical expenses
which are actually incurred is also increasingly favored nowadays.
As we can see from the results of survey, most of the employees were not happy with the
kind of canteens provided at the power stations. Trade unions were found constantly raising
this issue with the H.O. One such subsidized canteen is recently been inaugurated at CSTPS
on trial basis.
Employees looked very happy with such kind of move by the management of the company.
Employees from other power station are expecting the same kind of facility to be extended to
11. Conswner cooperative stores:
The Indian Labour Conference in 1963 recommended the setting up of consumer cooperative
stores in all industrial establishments including plantations and mines employing 300 or more
The employer is expected to extend help in the form of working capital, share capital, loans at
concessive rates etc. The Industrial Truce Resolution, 1962 aimed at keeping prices of
essential items low by opening a sufficient number of fair price shops for workers.
EMPLOYEE WELFARE POLICIES IN INDIA
The Government has made following Acts for the betterment of labours life :
1. The Factories Act 1948
2. The Payment of Wages Act 1936
3. The Industrial Employment Act (Standing Orders) 1946
4. The Workmens Compensation Act 1923
5. The Trade Union Act 1926
6. The Minimum Wages Act 1948
7. The Employees State Insurance Act 1948
8. The Employees Provident Funds Family Pension Fund and Deposit-linked Insurance Fund
DISADVANTAGES OF EMPLOYEE WELFARE
The welfare schemes become the driving force to work:
Neither the money nor the schemes should be the driving force to work for the employees.
The work done by others should motivate the employees. The driving force for the employees
to work should be a competitive environment. Only then, the employees can deliver the
The Financial burden for the company:
As the number of employees increases, a financial burden of budget gets on the company to
evenly divide the schemes among the employees working within an organization. So, in order
to evenly distribute the schemes among the employees, it is necessary for the company to
have proper a financial budget in order to provide employees with the required schemes.
To maintain a competitive edge in the market:
It is necessary to keep good employee welfare policy as it helps the organization to remain in
market and helps itself to remain in the edge. It also helps attract maximum skilled employees
within the organization. Skilled workers are needs of every company so as to obtain better
output. The company will have to have an edge over the welfare schemes too in order to do
Outshines all the old schemes of the company:
All the other schemes of the companies become outdated. Other here means the older
schemes, doesn?t exist anywhere. When the other competitive companies give the employees
newly developed and great schemes, the present schemes seems a big failure due to which the
other companies has to get the similar profitable schemes. Such a burden also kills the
companies at large.
Fear of employees leaving the organization:
If the company fails to provide the employees with great and required schemes, the
employees may choose to leave the organization early. So, to prevent the employees running
out from the organsation, they needs to bring novel schemes and services for the employees.
Increases the budget of the company:
The employee welfare schemes affects the company financially as it increase the budget of
the company. The inclusion of the new schemes can upset the whole budget of the company
which ultimately affects the whole working of the company. This is because, it is not
necessary that the company will always have extra finances to cope up during the need of
emergencies. So, the employee welfare facilities are a great disadvantage for the employees
Employees may even leave the organization:
When the competitive organizations give better welfare schemes, the employees may choose
to reach the organization which are giving better opportunities. This way the employees may
even leave the company and move to the next for the betterment. This also forms one of the
disadvantages of the company as well as the employees on the whole. So, for this purpose, to
retain their employees the company has to keep great welfare schemes.
EMPLOYEE WELFARE & BENEFITS
Rightly Quoted “Success is not the key to happiness. Happiness is the key to success. If you
love what you are doing, you will be successful”
At Roche, We believe Employee Welfare is of utmost importance which creates a sense of
belongingness towards organization and job satisfaction. We have the following forums,
which encourage active participation:
a) Open door culture
Roche Diagnostics India Pvt Ltd believes in creating an environment, which encourages
employees to freely and frankly exchange their views, fostering interactions and also for
discussions on ideas and issues, and for the improvement of the the work environment and sp
it help in increasing productivity.
We encourage Employees to express their views openly without any fear of retribution, thus
embracing and fostering the culture of openness and participation.
b) Family Get-togethers
At Roche we arrange family Get-togethers. We invite employees along with their family.
This help for creating bond with employees and demonstrate oneness.
c) Town Hall Meetings
The company organizes a town hall meeting once in every six months. All the employees are
invited and addressed by the Managing Director or Business Unit Head about the
achievements, future growth and also areas of improvement. The employees can also raise
any issues or queries which they are facing.
d) Annual health check up for employees
This policy is meant to provide Medical Check up of employees so that they can stay fit for
the exigencies of the job. Fitness of the employee is very important for the employer as so
that he can work better.
EMPLOYEE WELFARE IN INDIA
The chapter on the Directive Principles of State Policy in our Constitution expresses the
need for labour welfare thus:
1. The State shall strive to promote the welfare of the people by securing and protecting
as effectively as it may a social order in which justice, economic, social and political,
shall inform all the institutions of the national life.
2. The State shall, in particular, direct its policy towards securing.
3. That the citizens, men and women equally, have the right to an adequate means of
4. That the ownership and control of the material resources are distributed as to subserve
to the good of common.The State shall make provision for securing just and human
conditions of work and for maternity relief.
Factories Act, 1948
The principal Act for providing various labour welfare measures in India is the Factories
Act, 1948. The Act applies to all establishments which are employing 10 or more workers
where power is used and which are employing 20 or more workers where power is not used,
and where a manufacturing process is being carried on.
Employee Welfare Officer
Section 49 of the factories act provides that in every factory wherein 500 or more workers
are ordinarily employed the employer shall appoint at least one welfare officer
The welfare officer should possess; (i) a university degree; (ii) degree or diploma in social
service or social work or social welfare from a recognized institution; and (iii) adequate
knowledge of the language spoken by the majority of the workers in the area where the
factory is situated.
¯ Counseling workers
¯ Advising management
¯ Establishing liaison with workers
¯ Working with management and workers to improve productivity.
¯ Working with outside public to secure proper enforcement of various acts.
Health of Employees
? Cleanliness. Every factory has to be kept clean by sweeping or washing the floors on
daily basis and also the work rooms by using disinfectant where necessary.
? Disposal of wastes and effluents. Effective arrangements has to be made for the
disposal of wastes and for making them innocuous.
? Ventilation and temperature. Effective arrangements has to be made for ventilation
and temperature to provide comfort to the workers.
? Dust and fume. Effective measures has to be taken for the prevention the inhalation
and accumulation of dust and fumes or other impurities at the work place.
? Artificial humidification. The State Government has to make rules prescribing
standard of humidification and methods to be adopted for this purpose.
? Overcrowding. There shall be in every work room of a factory in existence on the date
of commencement of this act at least 9.9cubic meters and of a factory built after the
commencement of this act at least 4.2 cubic meters of space for every employee.
? Lighting. The State Government may prescribe standards of sufficient and suitable
? Drinking Water. There shall be effective arrangement for wholesome drinking water
for workers and also at convenient points.
? Latrines and urinals. There shall be sufficient number of latrines and urinals, well-
ventilated, clean, conveniently situated and built according to prescribed standards
separately for male and female workers.
? Spittoons. There shall be sufficient number of spittoons placed at convenient places in
Safety of Employees
? Fencing of machinery. All dangerous and moving parts of a machinery shall be
securely fenced. Screws, bolts and teeth shall be completely encased to prevent
? Work on or near machinery in motion. Lubrication or other adjusting operation on a
moving machinery shall be done only by a specially trained adult male workers.
? Employment of young persons on dangerous machines. No young person shall be
allowed to work on any dangerous machine (so prescribed by the state government)
unless he is sufficiently trained or is working under the supervision of knowledgeable
? Device for cutting off power. Suitable device for cutting of power in emergencies has
to be provided.
? Hoists and lifts. These shall be made up of good material and strength, thoroughly
examined at least once in every six months and suitably protected to prevent any
person or thing from being trapped.
Welfare of Employees
Chapter V of the factories Act contains provisions about the welfare of employees. These
are as follows:
? There shall be separate and adequately screened washing facilities for the use of male
and female employees.
? There shall be suitable places provided for clothing not worn during working hours
and for the dying of wet clothes.
? There shall be suitable arrangement for all workers to sit for taking rest if they are
obliged to work in a standing position.
? There shall be provided the required number of first-aid boxes or cupboard (at the rate
of one for every 150 workers) equipped with the prescribed contents readily available
during the working hours of the factory.
? The State Government may make rules requiring that in any specified factory
employing more than 250 employees a canteen shall be provided and maintained by
the occupier for the use of the employee.
? There shall be provided sufficiently lighted and ventilated lunch room if the number
of employees ordinarily employed is more than 150.
RESTRICTIONS IN THE FACTORIES ACT ON THE EMPLOYMENT OF YOUNG
1.Prohibition as to employment of children (Section 67)
No child who has not completed his fourteenth year is prohibited or not allowed to work in
2. Employment of Children and Adolescent (Section 68)
A child who has completed his fourteenth year or an adolescent shall not be required or
allowed to work in any factory unless following conditions are fulfilled:
The manager of the factory has obtained a certificate of fitness granted to such young while at
work, such child or adolescent carries a token giving reference of such certificate.
3. Certificate of fitness (Section 69)
Before a young person is employed in the factory, a certifying surgeon has to certify that such
person is fit for that work in the factory.
In order to provide welfare facilities to the workers employed in iron ore, mica, limestone
and dolomite mines, manganese ore and chrome ore and in the beedi industry, the welfare
funds is established to supplement the efforts of the employers and the State Government
under respective enactments.The welfare measures financed out of the funds relate to
development of medical facilities, supply of drinking water, housing, support for education of
dependents and recreation, etc.
Benefits are also given voluntarily to workers by some progressive employers. These include
loans for purchasing houses and for educating children, leave travel concession, fair price
shops for essential commodities and loans to buy personal conveyance. Machinery Connected
with Employee Welfare Work.
1. Chief inspector of Factories
It is the duty of the Chief inspector of factories (who generally works under the
administrative control of the labour commissioner in each state) to ensure enforcement of
various provisions of Factories Act in respect of heath, safety and welfare of workers.
2.Central Labour Institute
The institute was set up in Bombay in 1966 to facilitate the proper implementation of the
Factories Act, 1948 and for providing a centre of information for employers, inspectors,
workers and others concerned with the well being of industrial labour and also to stimulate
the interest in the application of the principles of industrial health, safety and welfare.
3. National Safety Council
The National Safety Council was wet up on 4th March, 1966 in Bombay at the initiative of
the Union Ministry of Labour and Rehabilitation, Government of India, as an autonomous
national body with the objective of generating, developing and sustaining for the movement
of safety awareness at the national level.
4. Director General of Mines Safety
The Director General of Mines Safety enforces the Mines Act, 1952. He inspects electrical
installation and machinery provided in the mines and determines the thickness of barriers of 2
adjacent mines in order to prevent spread of fire and danger of inundation.
Appraisal of Welfare Services
1. One of the main obstacles in the effective enforcement of the welfare provisions of
the Factories Act has been the quantitative and qualitative inadequacy of the
2. At present, a labour welfare officer is not able to enforce laws independently because
he has to work under the pressure of management.
3. Women workers do not make use of the crèche facilities either because they are
dissuaded by the management to bring their children with them or because they have
to face transport difficulties.
NATIONAL COMMISSION ON EMPLOYEE RECOMMENDATIONS
1. The statutory provisions on safety are adequate for the time being effective
enforcement is the latest need.
2. Every fatal accident should thoroughly be inquired into and given wide publicity
3. Employers should play a more concerted role in safety and accident prevention
programme and in arousing safety consciousness.
4. Safety should become a habit with the employers and workers instead of remaining a
mere ritual at present.
5. Unions should take at least as much as interest in safety promotion as they take for the
claims for higher wages.
The connotation of the term “Social Security” varies from country to country with
different political ideologies. In socialist countries, a vowed goal is complete protection to
every citizen from the cradle to the grave.
There are some components of Social Security:
? Medical care
? Sickness benefit
? Unemployment benefit
? Old-age benefit
? Employment injury benefit
? Family benefit
? Maternity benefit
? Invalidity benefit and
? Survivor’s benefit
Social Securities may be of two types
1. Social assistance under which the State finances the entire cost of the facilities and
2. Social insurance, under the State organizes the facilities financed by contributions
form the workers and employers, with or without a subsidy from the state.
Social Security in India
At present both types of social security schemes are in vogue in our country. Among the
social assistance schemes are the most important. The social insurance method, which has
gained much wider acceptance than the social assistance method, consists of the following
? The workmen’s Compensation Act, 1961.
? The Employee’s State Insurance Act, 1948.
? The employees’ State Insurance Act, 1948.
? The Maternity Benefit Act, 1961.
? Employees’ compensation Act, 1923
This Act covers all workers employed in factories, plantations, mines, construction works,
transport undertakings, railways, circus, ships and other hazardous occupations specified in
schedule II of the Act.
The Act empowers the State Government to extend the coverage of the Act by adding any
hazardous occupation to the list of such occupations is schedule II.
The Act is administered by the State Government which appoints Commissioners for this
purpose under sec. 20 of the Act.
Under the Act, compensation is payable by the employer to a workman for all personal
injuries caused to him by accident arising out of and in the course of his employment which
disable him for more than 3 days.
Employees’ State Insurance Act, 1948
Other than seasonal factories, run with power and employing 20 or more workers.
The Act is administered by the ESI corporation, an autonomous body consisting of
representatives of the Central and State Governments, employees, employers, medical
profession and parliament.
The Act, which provides for a system of compulsory insurance, is a landmark in the history
of social security legislation in India.
An insured person or (where medical benefit has been extended to his family) a member of
his family who requires medical treatment is entitled to receive medical benefit free of
An insured person, when he is sick, is also entitled to get sickness benefit at the standard
benefit rate corresponding to his average daily wage. An insured woman is entitled to receive
maternity benefit (which is twice the sickness benefit rate) for all days on which she does not
work for remaining during a period of 12 weeks of which not more than 6 weeks shall
precede the expected date of confinement.The Act makes a three-fold classification for the
injuries in the same way as it is done in the workmen’s compensation Act.
If an insured person meets with an accident in the course of his employment an dies as a
result thereof, his dependants, i.e. his widow, legitimate or adopted sons and legitimate
unmarried daughters get this benefit.
The Maternity Benefit Act, 1961
Maternity benefit is one of the important benefits provided under the Employees State
Insurance Act, 1948. Another important legislation in this respect is the Maternity Benefit
Act, 1961 is the Act covers only those persons who are not covered by the Employees State
This Act entitles a woman employee to claim maternity leave from her employer if she has
actually worked for a period of at least 160 days in the 12 months immediately proceeding
the day of her expected delivery. The act further provides for the payment of medical bonus
of Rs. 250 to the confined woman worker.The committee on the status of women in India
1974 has, therefore recommended the following changes in the Act:
1. The administration of the fund should follow the pattern already established by the
2. For casual labour a minimum of 3 months of service should be considered as
qualification service for this benefit.
3. This will provide greater incentive to women workers to participate in trade union
The Payment of Gratuity Act, 1972
The Act applies to every factory, plantation, mine, oilfield, port and railway company
and to every shop or establishment in which 10 or more persons are employed, or
were employed, on any day of the preceding 12 months.
The Act is administered by a controlling authority appointed by the appropriate
Under the Act, Gratuity is payable to an employee on the termination of his
employment after he has rendered continuous service for not less than five years. The
completion of continuous service of five years is, however, not necessary where the
termination of the employment is due to death or disablement. Gratuity is payable at
the rate of 15 days’ wages based on the rate of wages last drawn by the employee for
every complete year of service or part thereof in excess of six months. But the amount
of gratuity payable to an employee shall not exceed Rs. 3.5 lakh.
4. Source of Funds.
Under the Act gratuity is payable entirely by the Employer. For this purpose is
required either (i) to obtain insurance with the Life Insurance Corporation, or (ii) to
establish a gratuity fund. Thus it is his liability to pay the premium in the first case to
make the contribution in the second case.
TYPES OF WELFARE ACTIVITIES
Welfare means faring or doing well. It is a comprehensive term, and refers to the mental,
physical, emotional and moral well-being of an individual. The term welfare is a relative
concept, relative in time and space. It, thus, varies from time to time, region to region and
from country to country.
Labour welfare refers to taking care of the well-being of workers by employers, trade unions
and governmental and non governmental agencies. Recognizing the unique place of the
worker in the society and doing good for him/her, minimizing social evils, retaining and
motivating employees, and building up the local reputation of the company are the argument
in favour of employee welfare.
Welfare facilities help in retaining and motivating employees. Most welfare facilities are
hygiene factors which, according to Herzberg, create dissatisfaction if not provided. Welfare
facilities help in developing loyalty in workers towards the organization instead of removing
TYPES OF WELFARE ACTIVITIES
The economic and social aspects of the life of a worker have direct influence on the economic
and social development of the nation. There is every need to take care of the worker-to
provide both statutory and non-statutory facilities to him/her.
A comprehensive list of welfare activities is given by Moorthy in his monumental work on
labour welfare. He divides welfare measures into two broad groups, namely:
1. Welfare measures inside the work place; and
2. Welfare measures outside the workplace.
WELFARE MEASURES INSIDE THE WORK PLACE
i. Conditions of the work environment
a) House keeping.
b) Control of effluents.
c) Workshop (Room) sanitation and cleanliness
d) Neighborhood safety and cleanliness
e) Distribution of work hours and provision for rest hours, meal time and breaks
f) Workmen?s safety measures: Maintenance of machine and tools, fencing of
machine, Goggles, First aid equipments etc.
g) Notice board, poster, pictures, slogans
a) Rest room, bathroom, wash basins, provision for spittoons
b) Provision of drinking water; water cooler
c) Canteen services
d) Management of workers cloak room, rest room, reading room library
iii. Worker?s health services
Factory health centre, dispensary, medical examination for Workers ambulance,
emergency aid, health research, health education, family planning services.
iv. Women and child welfare
Antenatal and postnatal care, maternity aid, crèche and child care; women?s general
education; separate services for women workers, that is, lunch rooms, toilet, rest rooms,
women?s recreation(indoor); family planning services.
v. Workers? Recreation
Indoor game games, strenuous games to be avoided during intervals of work.
vi. Labour-Management participation
a) Formation and working of various committees, that is works committee, canteen
committee, safety committee, consultation in welfare area, in production area, in the
area of administration, in the area of public relations.
b) Workmen?s arbitration council.
c) Research bureau.
vii. Worker?s Education
Reading room, circulating library, library, adult education, visual education, factory
APPROACHES TO LABOUR WELFARE
Approaches to employee welfare refer to the beliefs and attitudes held by agencies which
helps to provide welfare facilities to employers. Some agencies provide welfare facilities
inspired by religious faith other provide as a philanthropic duty..
The various approaches to labour welfare reflect the attitudes and beliefs of the agencies
which are engaged in welfare activities. Welfare facilities may be provided on philanthropic
or religious, some other grounds. Moreover, the different approaches to labour welfare reflect
the evolution of the concept of welfare.
In bygone days, the government of the land had to compel the owner of an industrial
establishment to provide such basic amenities as rest rooms, canteens, good working
conditions, drinking water, and so forth, for their employees.
Such compulsion was necessary because the employer believed in exploiting labour and
treating it in an unfair manner. But times now have changed, and the concept of welfare, too,
has undergone changes. Many progressive managements today provide welfare facilities,
voluntarily and with enlightened enthusiasm and willingness.
In fact, welfare facilities are not restricted to the workers alone. They have now been
extended to the society in general. In other words, labour welfare has been extended to the
social welfare also.
Tata Steel Works at Jamshedpur, for example, spends Rs 10 crore each year on social
welfare. Brooke Bond have set up a free animal welfare clinic at Gevrai, Aurangabad, under
the direct charge of a qualified veterinary doctor. Jindal Aluminium, Bangalore, maintains the
famous Naturopathy and Yogic Sciences Centre and a public school for the benefit of the
The Jindal Scholarship Trust has been set up, under which deserving students are given
scholarships. The Hindustan Machine Tools has a big playground and a community hall,
which are let out for competitions and functions.
The approaches and their brief descriptions are:
1. The policing theory of labour welfare.
2. The religion theory of labour welfare.
3. The philanthropic theory of labour welfare.
4. The paternalistic theory of labour welfare.
5. The placating theory of labour welfare.
6. The public relations theory of labour welfare.
7. The functional theory of labour welfare.
8. The social theory of labour welfare.
According to this view, the factory and other industrial workplaces provide many
opportunities for owners and managers of capital to exploit the workers in an unfair manner.
This could be done by making the labourer to work for longer hours, by paying low wages to
the workers, by keeping the workplaces in an unhygienic condition, by ignoring safety and
health provisions, and by neglecting the provision of elementary human amenities, such as
latrines, rest rooms, drinking water and canteens.
Clearly, a welfare state can never remain a passive spectator of this limitless exploitation. It
enacts legislation under which managements are forced to provide basic amenities to the
In short, the state assumes the role of a policeman, and compels the managers of industrial
establishments to provide welfare facilities, and punishes the non-complier. This is the
policing theory of labour welfare.
The religion theory has two connotations, namely, the investment and atonement aspects. The
investment aspect of the religion theory implies that the fruits of today’s deeds will be reaped
tomorrow. Any action, good or bad. is therefore treated as an investment. Inspired by this
belief, some employers plan and organise canteens and creches.
The atonement aspect of the religion theory implies that the present disabilities of a person
are the result of the sins committed by him or her previously. He or she should undertake to
do good deeds now to atone or compensate for his or her sins. There is the story of a big Jain
employer who firmly held the belief that the provision of welfare facilities for workers was
outside the duties of the management
Philanthropy means affection for the mankind. The philanthropic theory of labour welfare
refers to the provision of good working conditions, creches and canteens out of pity on the
part of the employers who want to remove the disabilities of their workers. Robert Owen of
England was a philanthropic employer, who worked for the welfare of his workers. The
philanthropic theory is more common in social welfare.
According to the paternalistic theory, also called the trusteeship theory of labour welfare, the
industrialist or the employer holds the total industrial estate, properties and the profits
accruing from them, in trust. The property which he or she can use or abuse as he or she likes
is not entirely of his or her own. He or she holds it for his or her use, no doubt, but also for
the benefit of his or her workers, if not for the whole society. For several reasons, such as
lack of education, low wages and so forth the workers are at present unable to take care of
They are, therefore, like minors, and the employers should provide for their well-being out of
funds in their control. The trusteeship is not actual and legal, but it is moral and, therefore,
not less real.
This theory is based on the hypothesis that placation pays when the workers are organised
and are militant. Peace can be bought by welfare measures. Workers are like children who are
intelligent, but not fully so. As crying children are placated by sweets, workers should be
delighted by welfare works.
Public Relations Theory
According to this theory, welfare activities are provided to create a good impression on the
minds of the workers and the public, particularly the latter. A good canteen, safe and clean
working conditions, make a good impression on the workers, creche and other amenities,
visitors and the public. Some employers proudly take their visitors round the plant to show
how well they have organised their welfare activities.
Also known as the efficiency theory of labour welfare, the functional theory implies that
welfare facilities are provided to make the workers more efficient. If workers are treated
kindly, fed properly and clothed adequately; and if the conditions of their work are congenial,
they will work efficiently. Welfare work is a means of preserving, securing and increasing the
efficiency of labour.
The social obligation of an industrial establishment has been assuming great significance
these days. The social theory implies that a factory is morally bound to improve the
conditions of the society in addition to improving the condition of its employees. As
mentioned earlier, Labour welfare is gradually becoming social welfare.
ORGANISATION AT GLANCE
“We do not claim to be more unselfish, more generous or more philanthropic than
other people. But we think we started on sound and straight forward business
principles, considering the interest of the shareholders, our own and the health and
welfare of our employees, the sure foundation of our prosperity”.
– J N Tata (1839-1904)
”Every company has a special continuing responsibility towards the people of the area
in which it is located. The company should spare its engineers, doctors, managers to
advise the people of the villages and supervise new development undertaken by co-
operative effort between them and the company.”
– JRD Tata (1969)
“I do believe that we in the Group have held a view and held a sense of purpose that
our Companies are not in existence just to run our business and to make profit- and
that we are responsible and good corporate citizens over and above our normal
operations. By that, I mean that we play a part in the community and we shoulder
community responsibility as part of social responsibility of our nation. And, these
responsibilities are not to be confused with employee welfare, but they go beyond our
own employees and in fact concentrate on the contribution to the community and to
– Ratan N Tata (1996)
BACKGROUND OF COMPANY
Backed by 100 glorious years of experience in steel making, Tata Steel is the world?s 6th
largest steel company with an existing annual crude steel production capacity of 30 Million
Tonnes Per Annum (MTPA). Established in 1907, it is the first integrated steel plant in Asia
and is now the world`s second most geographically diversified steel producer and a Fortune
500 Company. Tata Steel has a balanced global presence in over 50 developed European and
fast growing Asian markets, with manufacturing units in 26 countries. It was the vision of the
founder; Jamsetji Nusserwanji Tata., that on 27th February, 1908, the first stake was driven
into the soil of Sakchi. His vision helped Tata Steel overcome several periods of adversity
and strive to improve against all odds.
Tata Steel`s Jamshedpur (India) Works has a crude steel production capacity of 6.8 MTPA
which is slated to increase to 10 MTPA by 2010. The Company also has proposed three
Greenfield steel projects in the states of Jharkhand, Orissa and Chhattisgarh in India with
additional capacity of 23 MTPA and a Greenfield project in Vietnam. Through investments in
Corus, Millennium Steel (renamed Tata Steel Thailand) and NatSteel Holdings, Singapore,
Tata Steel has created a manufacturing and marketing network in Europe, South East Asia
and the pacific-rim countries. Corus, which manufactured over 20 MTPA of steel in 2008,
has operations in the UK, the Netherlands, Germany, France, Norway and Belgium. Tata
Steel Thailand is the largest producer of long steel products in Thailand, with a
manufacturing capacity of 1.7 MTPA. Tata Steel has proposed a 0.5 MTPA mini blast
furnace project in Thailand.
NatSteel Holdings produces about 2 MTPA of steel products across its regional operations in
seven countries. Tata Steel, through its joint venture with Tata BlueScope Steel Limited, has
also entered the steel building and construction applications market. The iron ore mines and
collieries in India give the Company a distinct advantage in raw material sourcing. Tata Steel
is also striving towards raw materials security through joint ventures in Thailand, Australia,
Mozambique, Ivory Coast (West Africa) and Oman. Tata Steel has signed an agreement with
Steel Authority of India Limited to establish a 50:50 joint venture company for coal mining
in India. Also, Tata Steel has bought 19.9% stake in New Millennium Capital Corporation,
Canada for iron ore mining.
Exploration of opportunities in titanium dioxide business in Tamil Nadu, Ferro-chrome plant
in South Africa and setting up of a deep-sea port in coastal Orissa are integral to the Growth
and Globalization objective of Tata Steel. Tata Steel?s vision is to be the global steel industry
benchmark for Value Creation and Corporate Citizenship. Tata Steel India is the first
integrated steel company in the world, outside Japan, to be awarded the Deming Application
Prize 2008 for excellence in Total Quality Management
A Century of trust
Profit: US$ 1.00 billion (2012)
Tata Steel (BSE: 500470), formerly known as TISCO and Tata Iron and Steel Company
Limited, is the world’s sixth largest steel company, with an annual crude steel capacity of 28
million tones. It is the second largest private sector steel company in India in terms of
domestic production. Ranked 315th on Fortune Global 500, it is based in Jamshedpur,
Jharkhand , India. It is part of Tata Group of companies. Tata Steel is also India’s second-
largest and second-most profitable company in private sector with consolidated revenues of
Rs 1,32,110 Crore and net profit of over Rs 12,350 crore during the year ended March 31,
2008. TISCO decided to change its name to “Tata Steel Limited” in 2005 to make it
multinational in operation across various countries.
Its main plant is located in Jamshedpur, Jharkhand, with its recent acquisitions the company
has become a multinational with operations in various countries. The registered office of Tata
Steel is in Mumbai. The company was also recognized as the world’s best steel producer by
World Steel Dynamics in 2005. The company is listed on Bombay Stock Exchange and
National Stock Exchange of India, and employs about 82,700 people (as of 2007).
Tata Steel was established by Indian Parsi businessman Jamshetji Nusserwanji Tata in 1907
(he died in 1904, before the project was completed). Tata Steel introduced an 8- hour work
day as early as in 1912 when only a 12-hour work day was the legal requirement in Britain. It
introduced leave-with-pay in 1920, a practice that became legally binding upon employers in
India only in 1945. Similarly, Tata Steel started a Provident Fund for its employees as early
as in 1920, which became a law for all employers under the Provident Fund Act only in 1952.
Tata Steel’s furnaces have never been disrupted on account of a labour strike and this is an
Tata Iron & Steel Company Ltd. (TISCO) is the iron and steel production company
associated with the Tata group of some 80 different industrial and other business enterprises
in India, founded by members of the Tata family. TISCO operates as India’s largest integrated
steel works in the private sector with a market share of nearly 13 percent and is the second
largest steel company in the entire industry. Its products and services include hot and cold
rolled coils and sheets, tubes, construction bars, forging quality steel, rods, structural, strips
and bearings, steel plant and material handling equipment, Ferro alloys and other minerals,
software for process controls, and cargo handling services. Through its subsidiaries, TISCO
also offers tinplate, wires, rolls, refractories, and project management services
Consistent with the vision and values of founder Jamshetji Tata, Tata Steel strives to
strengthen India’s industrial base through the effective utilization of staff and materials.
The means envisaged to achieve this are high technology and productivity, consistent
with modern management practices. Tata Steel recognizes that while honesty and
integrity are the essential ingredients of a strong and stable enterprise, profitability
provides the main spark for economic activity.
JAMSHETJI NUSSERWANJI TATA (1893-1904):
A visionary entrepreneur, an avowed nationalist and a committed philanthropist, Jamsetji
Tata helped pave the path to industrialisation in India by seeding pioneering businesses in
sectors such as steel, energy, textiles and hospitality.
It was the vision of the founder, that on 27th February, 1908, the first stake was driven into
the soil of Sakchi. His vision helped Tata steel overcome several periods of adversity and
strive to improve against all odds. At the age of 43, he read a report by a German geologist,
Ritter von Schwartz on the, availability of iron ore in Chanda district in the central Provinces,
which gave him the idea of giving India a steel plant. He formed the Tata Iron and Steel
Company Limited in 1907 in Mumbai.
SIR DORABJI TATA:
Jamshetji Nusserwanji Tata had exhorted to his sons to pursue and develop his life?s work,
his elder son, Dorab Tata carried out the bequest with utmost zeal and distinction. Thus even
though it was Jamshetji Tata who had envisioned the mammoth project, it was in fact Dorab
Tata who actually brought the ventures to existence and fruition. He was the first chairman of
JEHANGIR RATANJI DADABHAI TATA (1904-1943):
JRD Tata has been one of the greatest builders and personalities of modern India in the
Twentieth century. He assumed chairmanship of Tata sons limited at young age of 34, but his
charismatic, declined and forward of looking leadership over that the next 50 years and more,
led the company to new heights of achievement, expansion and modernization
He was born on December 28, 1937, in Surat. He is the former chairman of the TATA group,
India?s largest conglomerate founded by Jamshedji Tata and consolidated and expanded by
later generations of his family. He is one of the most well-known and respected industrialist
VISION AND VALUES OF THE COMPANY
“We aspire to be the global steel industry benchmark for Value Creation and Corporate
Diversity enriches any large organisation and enhances its collective capabilities. A clear,
shared vision is a key requisite for successful diversity management.
We make the difference through:
? Our people, by fostering team work, nurturing talent, enhancing leadership capability
and acting with pace, pride and passion.
? Our offer, by becoming the supplier of choice, delivering premium products and
services, and creating value with our customers.
? Our innovative approach, by developing leading edge solutions in technology,
processes and products.
Our conduct, by providing a safe working place, respecting the environment, caring for our
communities and demonstrating high ethical standards.
MISSION OF THE COMPANY
Consistent with the vision and values of the founder Jamsetji Tata, TATA STEEL strives to
strengthen India?s industrial base through the effective utilization of staff and materials. The
means envisaged to achieve this are high technology and productivity, consistent with
modern management practices.
TATA STEEL recognizes that while honesty and integrity are the essential ingredients of a
strong and stable enterprise, profitably provides the main spark for economic activity.
Overall, the Company seeks to scale the heights of excellence in all that it does in an
atmosphere free from fear, and thereby reaffirm its faith in democratic values
A-F BLAST FURNACES
‘A-F? BLAST FURNACE department is part of Coke, Sinter & Iron Division. It is located
within the works area of the Tata Iron & Steel Co. Ltd., Jamshedpur. The A-F Blast Furnace
came into operation in 1911.
Products and or Services and Delivery:
A-F? Blast Furnace produces hot metal which is the primary input for steel making at LD #1,
LD # 2 & Slab Caster. There are two by-products – slag & BF gas, which are generated in the
process of hot metal making, are also reused. The slag which comes out with hot metal is
granulated at ?A F? Blast Furnace and sent to Slag Granulation & Drying Plant. The dried
granulated slag serves as input for cement making at ?La Forge India Ltd.?.
The BF gas generated in the process is used as fuel in the Works Division. Thus the process
not only helps in maintaining the environment but also results in cost savings to the company.
The hot metal is delivered to the internal customer, LD # 2 & Slab Caster through track
mounted Torpedo Ladies of 200 tone capacity. The granulated slag is sent to Slag
Granulation & Drying Plant by belt conveyer. The BF gas generated in the process is cleaned
and sent gas ring main for distribution in the Works Division.
Hazards in a-f blast furnaces:
? Burn Injury (molten Metal and Slag)
? Explosions (Metal and Gas)
? Mobile Equipments
? (Iron ladles, Slag Ladles, C.T.Cars, Demag cars)
? Mechanical Hazards
? Electrical Hazards
Some Important sections of A-F Blast Furnaces
Coke is transferred from the coke storage bin by the CT Car To the stock house. Sinter on the
other hand is transferred from the sinter storage bin to the stock-house by the Demag car
except for F furnace, in F furnace sinter is transferred by conveyer belt to stock house. Most
of the time iron ore and fluxes,(limestone, pyroxinite, dolomite, quartzite) and nut Coke are
brought from the flood loading bunkers(FLB) situated at the extreme end of the high line,
whereas in case of emergency these raw materials are brought from RMH (Raw Material
Handling) by the wagon and is stored in different high linebins designated for different
The major raw materials utilized in iron making are iron ore and coke. Stock house at A-F
Blast furnaces is having two types of charging facilities. At the A-D blast furnaces charging
is being done through Larry car and skip but in F blast Furnace it is being done through the
conveyors and skip. Larry car consists of two hoppers and a load cell. The car collects
material from the different bins and finally dumps it into the skip. On the other hand at F
Blast furnace raw materials are first collected into aweigh hopper and then dumped into the
skip. Another major difference of A-D blast Furnace s with F.
CAST HOUSE: –
From the furnace, molten iron and slag is drained (Cast) into a refractory lined trough on the
cast house floor. Using askimmer, the slag is separated from the molten iron. Molten iron is
transported to the Steel Melting Shop (LD # 1 & 2) by rail using torpedo ladles for
processing, whilst slag is quenched with water to solidify the material then stored as by-
product. During the tapping, dust, Kish, and SO2 are generated. An extraction system is
placed along the trough and pouring positions to remove the airborne materials out of the
plant and into dedusting equipment. The efficiency of the dedusting equipment is reviewed
from time to time.
A-F Blast Furnace is governed by the Central and State Pollution Control Board requirement
and the department proactively fulfills all the regulatory requirements. The department is
accredited with the ISO 14001 certification for sound environmental management system.
Under this the department all the legal / statutory requirements related to pollution control,
waste disposal, and safety are met.
The department has a dedicated team to monitor and improve safety, health and
environmental processes with the support of central team. A Safety Health and
Environmental committee has been constituted at the departmental level which ensures
implementation of all statutory and non statutory needs A- F Blast Furnace adheres to all the
financial disciplines as prescribed under various acts, such as income lax, sales tax etc.
Minimum qualification and experience for each position up to the officer is defined and
persons are selected based on selection criteria comprising of written test and/ or interview.
The education level of workers is mainly trade apprenticeship. The supervisors mainly
possess a Diploma in various Technical areas. All Officers hold a Degree or a Diploma in
Engineering. Contract labor is used in areas of project execution and other low-value adding
Tata Steel`s Jamshedpur Works produces hot and cold rolled coils and sheets, galvanized
sheets, tubes, wire rods, construction rebar?s and bearings. In an attempt to 'decommoditise'
steel, Tata Steel has introduced brands like Tata Steelium (the world’s first branded Cold
Rolled Steel), Tata Shaktee (Galvanized Corrugated Sheets), Tata Tiscon (re-bars), Tata
Bearings, Tata Agrico (hand tools and implements), Tata Wiron (galvanized wire products),
Tata Pipes (pipes for construction) and Tata Structura (contemporary construction material).
Apart from these product brands, the company also has in its folds a service brand called
Tata Steel`s Jamshedpur Works produces hot and cold rolled coils and sheets, galvanized
sheets, tubes, wire rods, construction rebar?s and bearings. In an attempt to 'decommoditise'
steel, Tata Steel has introduced brands like Tata Steelium (the world’s first branded Cold
Rolled Steel), Tata Shaktee (Galvanized Corrugated Sheets), Tata Tiscon (re-bars), Tata
Bearings, Tata Agrico (hand tools and implements), Tata Wiron (galvanized wire products),
Tata Pipes (pipes for construction) and Tata Structura (contemporary construction material).
Apart from these product brands, the company also has in its folds a service brand called
“steel junction”. Tata Steel Thailand produces round bars and deformed bars for the
Regarded globally as a benchmark in corporate social responsibility, Tata Steel’s commitment
to the community remains the bedrock of its hundred years of sustainability. Its mammoth
social outreach programme covers the company-managed city of Jamshedpur and over 800
villages in and around its manufacturing and raw materials operations through uplift
initiatives in the areas of income generation, health and medical care, education, sports, and
The Company, fully conscious of its responsibilities to the future generations, has always
taken pro-active measures to ensure optimum utilization of natural resources. This is reflected
in the ISO-14001 certification that all its operations have achieved for environment
management. The SA 8000 certification for work conditions and improvements in the
workplace at the steel works in Jamshedpur, along with its Ferro Alloys and Minerals
Division, is a reiteration of its commitment towards the Company’s employees. Tata Steel has
pioneered numerous employee welfare measures such as the 8 hours working day and the
three tier joint consultation system of management which have been the platform for nearly
80 years of industrial harmony in its Steel Works in Jamshedpur.
Milestones and achievement-:
Awards and Recognitions:
Tata Steel India is the first integrated steel company in the world, outside Japan, to be
awarded the Deming Application Prize 2008 for excellence in Total Quality Management.
Some Awards and Recognitions received by the Company are:-
? Prime Minister?s Trophy for best performing Integrated Steel Plant.
? Think Odisha Leadership Award for contribution towards promotion of Self Help
Groups (SHGs) in Odisha .
? Tata Steel was named among the world most ethical companies by American think
tank, Ethisphere Institute.
? Thomson Reuters Innovation Award in the Hi-Tech Corporate category.
? Mr. H. M. Nerurkar, Managing Director, Tata Steel, was conferred with Corporate
? Mr. B Muthuraman, Vice Chairman, Tata Steel Limited was conferred the Padma
Bhushan by President Pratibha Patil.
? The prestigious CII-ITC Sustainability Prize 2011.
? The Best Sports Advertisement and Best Corporate Involvement in Sports at NDTV?s
Marks for Sports Campaign.
? CII National Award for Extraordinary Water Management.
? Tata Steel bagged the award in the Metal Category at the seventh edition of the
prestigious NDTV Profit Business Leadership Awards Mr. HM Nerurkar, Managing
Director, Tata Steel has been conferred with the CEO of the Year Award-2011 by
Indian Institute of Materials Management (IIMM).
? Tata Steel topped the list of India’s 50 most admired companies in survey conducted
by Fortune India and Hay Group.
? CNBC Asia’s Corporate Social Responsibility Award at ‘CNBC – TV 18 India
Business Leader Awards 2012(IBLA)’
? Best Conscious Capitalist Award by Forbes India.
? The Ministry of Labour and Employment, Government of India, conferred the
prestigious Prime Minister?s Shram Awards for the years 2008, 2009 and 2010, on
twenty one employees of Tata Steel.
? The Good Corporate Citizen Award by Bombay Chamber of Commerce & Industry.
? Tata Steel granted Core Supplier status by PSA Peugeot Citroën, IJmuiden, Tuesday,
February 19, 2013.
? Tata Steel and Caterpillar Steel Products alliance was recognised for the prestigious
Annual Quality Improvement (AQI) award for significant supply chain
? The CSR Leadership Award in the Think Odisha CSR conclave held in Bhubaneswar.
? Tata Steel was adjudged winner in ‘Corporate Social Responsibility’ by Procurement
Leaders Forum Tata Steel was adjudged ‘Best in Corporate Social Responsibility’ by
? FAMD & Wires Division of Tata Steel was awarded the prestigious JRDQV Award.
CII-ITC Sustainability Prize 2012 for Tata Steel, New Delhi, Monday, January 14, 2013.
HR PRACTICES IN THE ORGANIZATION
Consistent with the group purpose, Tata Steel shall constantly strive to improve the quality of
life of the communities it serves through excellence in all facets of its activities. We are
committed to create value for all our stakeholders by continually improving our systems and
processes through innovation, involving all our employees.
This policy shall form the basis of establishing and _reviewing the Quality Objectives and
shall be communicated across the organization. The policy will be reviewed to align with
business direction and to comply with all the requirements of the Quality Management
Tata Steel reaffirms its commitment to minimize the adverse impact of its operation on the
environment. Towards this end, it shall endeavor to:
? Set sound environmental objectives and targets, and integrate a process of review, as
essential elements of corporate management.
? Develop and rehabilitate waste dumps through afforestation and landscaping.
? Install, maintain and operate facilities to comply with applicable Environmental laws,
statues and other regulation.
? Develop and environmentally aware work force.This policy has been communicated
to all employees of Tata Steel and shall be made available to the public and interested
parties on demand.
? Minimize process waste and promote the recovery and recycling of material.
? Conserve natural resources and energy by constantly seeking to reduce consumption
and wastage Phase out pollution-prone processes and install state-of-art technology
for pollution prevention, and the continual improvement, in environmental
Tata Steel believes that a healthy worker is the surest basis for its continued success.
Tata Steel therefore is committed to the task of ensuring the safety and safeguarding the
health of all its employees.
Importance will be given to continuous training for promoting safety consciousness among
all employees. Joint committees of executives and employee?s representatives will supervise
the company?s safety measures.
Within his area of responsibility, everyone will be accountable for:
? Insisting on safe working procedures being followed by employees, contractors and
? Establishing a safe and healthy work environment.
? Proper maintenance and orderly housekeeping to control the risk of damage to plant
? Ensuring compliance with mandatory safety and health requirements.
HUMAN RESOURCE POLICY:
Tata steel recognizes that its people are the primary source of its competitiveness. It is
committed to equal employment opportunities for attracting the best available talent and
ensuring a cosmopolitan workforce.
It will pursue management practices designed to enrich the quality of life of its employees,
develop their potential and maximize their productivity. It will aim at ensuring transparency,
fairness and equity in all its dealing with its employees.
Tata steel will strive continuously to foster a climate of openness, mutual trust and teamwork.
ALCOHOL AND DRUGS POLICY:
Tata Steel believes that the loyalty and commitment of its employees depend upon the quality
of life they are offered at work and at home.
We recognize that indiscriminate use of alcohol and drugs is injurious to the well-being of
individuals, their families and the community as a whole. We acknowledge that the misuse of
these psychoactive substances is a major health and safety hazard.
Tata Steel is therefore committed to creating an alcohol and drug-free environment at the
work place. This would be achieved through the involvement of all employees and the Joint
Departmental Councils in spearheading appropriate initiatives.
The initiatives would include:
? Raising awareness, through the dissemination of information, education and training
and by promoting healthy life styles among our employees and their families.
? Motivating those employees who have an alcohol/drug problem, to seek assistance,
while maintaining confidentiality about such cases.
HIV (+) & AIDS CONTROL POLICY:
Tata Steel would take measures to prevent the incidence and spread of HIV and AIDS in our
society. In case of need, the company would arrange to provide counseling and medical
guidance to these patients and their families.
Motivating those employees who have an alcohol/drug problem, to seek assistance while
maintaining confidentiality about such cases.
STRATEGIC OBJECTIVE OF ?A-F’ BLAST FURNACE:
? Ensure “Zero” accidents.
? Ensure compliance to MOU with customers.
? Work towards winning DGP.
? Improving Furnace Campaign Life.
? Achieve the targets on Conversion Cost and Cost reduction initiatives.
? To maintain ISO 14001 certification.
? Check and review waste bins conditions weekly.
? Control emission norms within legal norms
? Ensure availability of pollution control devices.
? Plantation of additional trees.
? Develop waste land into greenery.
? Conduct emergency drills as per the plan.
HR Policies – Customised to local and global requirements
A Fortune 500 company, the Tata Steel Group is the world’s second most geographically
diversified steel producer, employing around 80,000 people across five continents in nearly
50 countries. The Group’s vision is to be the world’s steel industry benchmark in ‘Value
Creation’ and ‘Corporate Citizenship’ through the excellence of its people, its innovative
approach and overall conduct.
Underpinning the vision is a performance culture committed to targets, safety and social
responsibility, continuous improvement, openness and transparency. To know more, The
Hindu Opportunities spoke to Mr. P Senthil Kumar, Chief Human Resource Officer, Tata
Unique HR practices Regarding Recruitment
Tata Steel has always endeavoured to offer some of the best HR practices, and the
recruitment process is no exception. The recruitment process is unique as it entails identifying
talent from the pool through various practices. Some of them can be enlisted as follows:
? Opportunities for employee wards – domain wise written test, assessment centre, personal
? We also select talent through Lateral Recruitment process which involves interview by
HR, subject matter expert and personal interviews.
? Group Migration Policy for our employees, which enables the group employees to
explore opportunities to work at Tata Steel from other group companies.
? We provide career opportunities for down the line people and internal job postings
ensuring that the best talent pool deserves the right opportunity in bringing the best
practices in the company.
? Campus Selection – B schools, T Schools – written test, psychometric test, personal
? Shadow recruitment for niche senior talent
Initiatives Regarding Employee Relations, Employee Development and Growth.
Tata Steel is of the opinion that people are its greatest asset and has therefore adopted the best
practices for its employees.
Trade Unions: The Company believes that a healthy union is an asset for it. Trade unions are
therefore present and encouraged at all locations. All the non-officers (86% of the total
workforce) are represented by 26 independent trade unions across all locations.
Joint Consultations: Tata Steel is a pioneer of joint consultation in India. A unique system of
joint consultation has been in place in Tata Steel for more than 55 years in which both
management and employee representatives consult each other at all levels on matters relating
to the progress and prosperity of the organisation, including production, productivity, quality,
safety, welfare, training, etc. A minimum of 56 Joint Departmental Council meetings are held
in a year.
Grievance Handling Mechanism: Grievances and complaints of employees at Tata Steel are
handled through well-defined and user friendly mechanisms in order to redress them at the
initial stages thereby ensuring employee satisfaction. The informal grievance resolution
mechanism is an online process and goes by the name of “Samadhan”. The formal grievance
resolution is divided into three stages, with each stage being reached when a solution is not
arrived in the previous stage. These are further referred to the Central Works Committee.
R Service Desk: In line with Tata Steel?s philosophy of “Values Stronger than Steel”,
creating “trust” among employees is an inseparable part of the long term vision of the
Benefits and Facilities: Tata Steel has many „firsts? in the area of employee welfare. Several
welfare initiatives of Tata Steel were institutionalised even before it was formalised
worldwide as a convention of the ILO. The Steel Works is the only steel manufacturing unit
and the largest of its kind in the world, to adopt and enforce SA 8000 as a tool to improve
Employee Health: Apart from continuous preventive health surveillance of employees
(which includes both statutory & non-statutory health check-ups), a unique programme on
[email protected] has been launched across the company.
Higher Studies: Monetary incentives to employees acquiring higher technical qualifications
in a related field.
Employee development and growth
The company believes in providing continuous skill and competence upgrading of all
employees by providing access to necessary learning opportunities, on an equal and non-
discriminatory basis. As a management approach Tata Steel has identified the following
strategies to meet this challenge: (i) maximise utilisation of available employees through right
skilling and (ii) recruitment of technically qualified persons.
Tata Steel encourages a holistic approach to learning and development through its well
established in-house training facilities and approaches. The Tata Steel Management
Development Centre (TMDC) endeavours to provide primarily managerial training and also
functional training to all officers of Tata Steel, the Shavak Nanavati Technical Institute
(SNTI) provides the essential technical and functional training to all officers and non-officers
of the Company.
Moreover, Tata Steel ensures the development and growth of its employees in the best
possible ways through the following steps:
Learning and Development Programme
The 70:20:10 concept of Learning and Development of officers has been launched with an
objective of creating a culture where every manager takes ownership for the development of
his/her subordinates. This also helps in instituting systems so that employees are trained,
coached and mentored in a systematic manner such that they acquire appropriate knowledge,
skill and attitude required by the organisation and are prepared in advance to take up higher
? 70% of Learning and Development takes place from real life and on-the job experiences,
tasks and problem solving.
? 20% of Learning and Development takes place through coaching, mentoring, discussions,
guidance by superiors/experts.
? 10% of the learning comes from formal Class Room Training.
Job Rotation and Career Planning
In order to eliminate drudgery and maximise the learning opportunities for our employees,
robust processes have been put in place pertaining to job rotation and career planning. These
processes also help raise and retain the technical capabilities within the organisation by
ensuring development of officers through planned rotation to keep meaningful longevity in
each position so that the executive develops deeper functional capability.
Employee Contact Programme
In addition to the various Employee Satisfaction and Engagement surveys, a formal method
for collecting and resolving officers? inputs, named “Employee Contact Programme”, has
been launched in 2009. The key objectives of this programme are to:
? Capture employee concerns on an on-going basis
? Analyse concerns to identify need for policy changes
? Create a repository of the above data
? Create one to one connect with officers
Ensuring Development and Growth of Employees (EDGE)
The Performance Management System called „Ensuring Development & Growth of
Employees? (EDGE) is one of the most important people process for executives in the
organisation which cuts across all levels and sections.
Objectives of EDGE
? Align the activities and behaviours of individuals with company’s corporate objectives
? Develop the capabilities of employees to enhance performance of individuals or
? Culture enabling process – empowerment, creditability, values
? Supporting a culture of excellent superior-subordinate relationship
Initiatives Regarding Gender and Diversity of Workforce
It?s our belief that businesses should provide and maintain equal opportunities irrespective of
caste, creed, gender, race, religion, disability or sexual orientation.
The core principles enshrined in the policy, and now applied across the Tata Steel Group
? Equality of opportunity
? Continuing personal development
? Fairness and
? Mutual trust and teamwork
These principles are underpinned by the five Tata Group core values: integrity,
understanding, excellence, unity and responsibility.
There are a number of initiatives for women which work under the umbrella of SWATI, the
women empowerment cell of Tata Steel. We have self-development programmes such as
Pehchan, Empowering Women Managers to Succeed and other developmental programmes.
Managing the diverse workforce across countries and different cultures
There is a need to understand culture and ethnicities in the areas we operate. The cultural and
value underpinnings are different hence expectations are quite varied from across cultures.
We have policies and initiatives undertaken to address the needs which are:
? Formalising a policy for movement across geographies.
? Formalising a policy for settling down of the family at new location.
? Formalising a policy for fitment on return.
HR policies tuned to deal with the challenges that are entailed in managing a global
To deal with the challenges of managing a global workforce, our HR policies are customised
to local requirements as well as global requirements as per the needs of our employees.
To manage global requirements, we have compensation policy which covers security,
political and economic risks of the location and based on which, mobility premium is inbuilt
into the compensation structure.
HR policies planned for the employees in the future
To support the expansion of our existing facilities, we have planned the following initiatives:
Recruitment and selection: The process involves Reporting officers/ Heads of the process in
counselling and training for their colleagues
? Identifying talent and working with virtual offices
? Video simulations to assess the skills required for the job
? Employer Branding: Employer to “brand” the organisation as a preferred employer
? People centric – considering employees as customers
For our newly joined officers, we are working on a policy to ease their settling down process
in the organisation. To entertain our customers at Marketing and Sales locations, we are
working on policy on Club Membership.
Tata Steel has been pioneering worker welfare schemes and community initiatives
before the legislation mandated them
They recognise that their people are the primary source of the competitiveness who they have
always put first in all the initiatives. Their belief in employee welfare is corroborated in the
several „firsts? in employee welfare measures that Tata Steel introduced over time. In India,
these include the 8-hour Work Day at our Jamshedpur plant in 1912, the Leave with Pay
scheme in 1936 and the Workers? Provident Fund Scheme in 1920 – all of which were
subsequently adopted by the International Labour Organisation and enacted by law in India.
The European Works Council meets on a regular basis to provide a forum for discussion of
significant issues which may affect employees. Tata Steel has signed on with the UK
Government?s Social Mobility Business Compact, which aims to ensure everyone has a fair
opportunity to fulfill his or her potential according to merit.
In the SEA region too, there is a continual emphasis on human rights. Several initiatives in
NatSteel have been undertaken-like the adoption of best practices, annual satisfaction survey
for migrant workers, ensuring good living conditions, health management workshops, HIV
awareness talks, weight management programmes, smoking cessation programmes, aerobic
classes among others.
Tata Steel Thailand enhanced the human resource management in various areas such as
orientation and mentoring for new joinees; welfare and benefits improvements with the
TOGETHER Programme, feedback initiatives from the Labour union, Employee Committee,
Welfare Committee, etc., to improve remuneration and facilities; knowledge sharing session
to build workforce capability; and a continuous emphasis on feel-good initiatives to keep
SWOT ANALYSIS OF HR/IR DIVISION OF TATA STEEL
SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves
specifying the objective of the business venture or project and identifying the internal and
external factors that are favorable and unfavorable to achieving that objective. SWOT
analysis for the HR/IR division of TATA STEEL is as follows:
? In-house training capability.
? Loyal workforce.
? Retraining and redeployment of surplus workforce.
? Responsible union.
? Low productivity.
? Low skill profile.
? High labor cost.
? Adverse age mix.
? Expansion program.
? Technology Up- gradation.
? Modernization of existing plant.
? Closure of unviable / non – core units.
? Escalating lab our cost.
? No retrenchment policy.
? Globalization induced competition.
Research means scientific and systematic search for pertinent information on a specific topic.
According to CLIFFORD WOODY research comprises defining and redefining problem,
formulation hypothesis or suggest solution, collecting, organizing and evaluation data making
deductions and reaching conclusion; and at last carefully testing the conclusions to determine
whether they fit the formulation of hypothesis.
Population and universe-:
Definition- a complete set of elements (persons or objects) that possess some common
characteristic defined by the sampling criteria established by the researcher
Composed of two groups – Target population & Accessible population
Target population (universe)
The entire group of people or objects to which the researcher wishes to generalize the study
Meet set of criteria of interest to researcher.
? All people with AIDS.
? All institutionalized elderly with Alzheimer’s.
? All low birth weight infants.
? All school-age children with asthma.
? All pregnant teens.
The portion of the population to which the researcher has reasonable access; may be a subset
of the target population.
May be limited to region, state, city, county, or institution.
? All institutionalized elderly with Alzheimer’s in St. Louis county nursing homes.
? All pregnant teens in the state of Missours.
? All school-age children with asthma treated in pediatric asthma clinics in university-
affiliated medical centers in the Midwest.
? All low birth weight infants admitted to the neonatal ICUs in St. Louis city & county.
? All people with AIDS in the metropolitan St. Louis area.
Sample and sample technique-:
1. Population refers to the collection of all items about which the researcher wants to
study some characteristics. It may also be called a universe.
2. A sampling frame is the source material or device from which a sample is drawn.
Here sample frame was workers, associate & supervisor.
3. A “sampling unit” is typically thought of as an object that has been sampled from a
statistical population. This term is commonly used in opinion polling and survey
4. Techniques of sampling:- I have used the Simple random sampling technique. It is a
technique, in which every unit of population has equal and known chance of being
included in the sample. It is free from sampling bias. It is a scientific method, is
economical, uses theory of probability and insures accuracy. A few demerits could be
it is costly, unsuitable for heterogeneous population, requires large samples etc.
A sample of 70 employees among them is selected for the study at random. The study
is to get the information about the employees who are satisfied with their working
conditions and overall environment in their working.
DATA COLLECTION TECHNIQUES/TOOLS
The relevant data was collected from both primary sources and secondary sources. The
starting point of my information gathering has been the secondary sources such as internet,
books, and journals and so on.
First, I made a study of the employee satisfaction of the manufacturing companies to analyze
its personnel?s satisfaction level through secondary sources such as internet, magazines, and
journals and so on. Then I gathered information about the satisfaction level survey conducted
for employees in Shriram Filaments & Ropes Pvt. Ltd. by interacting with some of the
employees & staff already working for the company.
In primary data collection, you collect the data yourself using methods such as interviews and
questionnaires. The key point here is that the data you collect is unique to you and your
research and, until you publish, no one else has access to it.
There are many methods of collecting primary data and the main methods include:
? Focus group interviews
? Case studies
? Critical incidents
The primary data, which is generated by the above methods, may be qualitative in nature
(usually in the form of words) or quantitative (usually in the form of numbers or where you
can make counts of words used).The main sources used by me are Questionnaires and
All methods of data collection can supply quantitative data (numbers, statistics or financial)
or qualitative data (usually words or text). Quantitative data may often be presented in tabular
or graphical form.. For example, this could mean using.
Data collected by a hotel on its customers through its guest history system, data supplied by a
marketing organization, annual company reports, government statistics.
Secondary data can be used in different ways:
You can do something with the data. If you use it (analyze it or re-interpret it) for a different
purpose to the original then the most likely place would be in the „Analysis of findings?
section of your dissertation.
Most research requires the collection of primary data (data that you collect at first hand), and
this is what students concentrate on. Unfortunately, many dissertations do not include
secondary data in their findings section although it is perfectly acceptable to do so, providing
you have analyzed it. It is always a good idea to use data collected by someone else if it exists
– it may be on a much larger scale than you could hope to collect and could contribute to
your findings considerably.
Sources can be classified as:-
Paper-based sources – books, journals, periodicals, abstracts, indexes, directories, research
reports, conference papers, market reports, annual reports, internal records of organizations,
newspapers and magazines
Electronic sources – CD-ROMs, on-line databases, Internet, videos and broadcasts.
The main sources of qualitative and quantitative secondary data include the following:
Official or government sources.
Unofficial or general business sources.
It lists references to the following types of sources:
? Trade associations
? Large company market reports
? Trade and other journals
? Private research publishers
? Local authorities
? Stock broking firms
? It saves time.
? It saves finances
? It is highly convenient to use..
? Secondary data is data that has already been collected by someone else for a different
purpose to yours.
? You can simply report the data in its original format. If so, then it is most likely that
the place for this data will be in your main introduction or literature review as support
or evidence for your argument.
? Degree of accuracy is not as high as primary data.
? It is difficult to find secondary data which are sufficiently accurate.
? It is difficult to find secondary data which exactly fit the need of present investigation.
? There are many sources of data and most people tend to underestimate the number of
sources and the amount of data within each of these sources.
? As secondary data has been collected for a different purpose to yours, you should treat
it with care.
Primary Data Collection:-
Data was collected through an interview schedule and a questionnaire, consisting of closed
ended questions. The schedule covered parameters like overall satisfaction of the employees
towards company, working conditions, their basic salary and pays, employee?s behavior with
their employer and the expectation of employee towards the organization & management.
Secondary data collection:-
The secondary sources include company?s website, books, journals, HR reviews, articles on
Measures are the items in a research study to which the participant responds. They can be
survey questions, interview questions, or constructed situations, to name a few.
When constructing interviews and surveys, it is important that the questions directly relate to
the research questions. Furthermore, it is important that the surveys and interviews are not
extremely time-consuming (ideally within a 20-30 minute limit).
If an interpreter will be used, simple questions are always better and easily interpreted
questions that avoid ambiguity will lead to more accurate results. Lastly, instead of creating a
survey it is better to do research to find out if a similar study has been conducted. If so,
previous surveys should be used to yield standardized measures for comparison. Irrespective
of the form that these measures take, there are several important design elements that are
required to make the study effective.
Study measures should:
? Take into account the characteristics of the participant.
o Use informal language that someone with no experience in the field can
o Be respectful of the cultural context in which the participant has shaped his or
? Provide neither too much nor too little information. Too much information can be an
unnecessary distraction, while too little information leads to ambiguity and potential
misinterpretation of the study measure.
? Be brief and specific.
? Avoid negations, as they can lead to mistakes and can be difficult to understand.
? Avoid double-barreled questions (questions that ask two questions in one, such as
“Do you support the government?s decision to cut spending to police training and
after school programs?”). If a participant would answer “yes” to one part but “no” to
another, requesting an answer of “yes or no” to the pair as a whole invalidates the
? Use multiple questions to assess the same construct. For example, simply asking a
person if they feel “good” about themselves as a measure of self-esteem is not
enough. Instead, asking that person several questions about body image, self-worth,
and self-evaluation can help paint a better picture of how they are really feeling.
Self-report measures, whether in survey form or in interview form, are easily affected by
several biases that the participant may exhibit, and for this reason must be designed carefully
by the researcher. The researcher also must be cautious about what kinds of conclusions are
drawn from self-report measures. Some potential issues with self-report are:
Social desirability bias
Participants are usually uncomfortable or unwilling to share information that does not reflect
well on them in their social environment, even if they know their responses are entirely
anonymous. For example, participants may understate or overstate the extent to which they
experience a certain feeling, depending on how socially appropriate or desirable that feeling.
Researchers must do their best to make it abundantly clear that anonymity will be preserved
for the participant, and honesty must be encouraged.
Researchers should also lead with less-intimidating questions to make the participant feel
more comfortable before asking anything that might be more difficult to answer honestly.
Another option is to structure the question in such a way as to normalize the behavior: “As
you know, many people do X… To what extent do you do X?”
Participants will sometimes bend their answers on self-report measures to better reflect how
they “think they should be” rather than how they actually are.
This is similar to the social desirability bias, but is more difficult to overcome because
anonymity is not the issue here. Instead, bias results from the participant?s evaluation of him
or herself. The researcher?s best course of action is to encourage honesty and normalize the
behavior or feeling as reviewed above.
Sometimes researchers ask participants about their past experiences or feelings without
considering the fact that human memory is very plastic. People?s recollections may be
inaccurate, and it is important for a researcher to consider this when designing study
measures. Self-report measures do play an important role in research, although they should be
used with caution.
They are essential in situations where the researcher is asking about a participant?s
selfconcept or seeking to study the specificities of a participant?s experience. Self-report is
also very useful for logistical reasons, as it is often the simplest of methods to implement and
requires the least resource.
A research design serves as a bridge between what has been established (research objectives)
and what is to be done while conducting the study to realize those objectives. It anticipates
what a company wants in terms of results and the analytical work on the gathered data that
will convert into useful findings.
This research is a descriptive research and, by and large, a field and desk research which
involved the following procedures:
? Collection of data regarding health check up of worker?s.
? Drafting a questionnaire that was distributed to the worker?s.
? Analysis of the data collected and illustrating it through graphs and thereby,
interpreting the results.
Finally, forwarding certain recommendations and conclusions to the company.
The sample size of this survey is the working employees of A-F Blast furnaces.
Primary Sources of Data:
? Direct Interaction to Doctors at Occupational health services and First aid west zone.
? Answered questionnaire.
? Physical verification of health related posters.
Secondary Sources of Data:
? Company profiles.
? Previous year report.
? Newspapers and magazine articles.
? Text books regarding health.
Statistical treatment of data-:
In statistics, dependence refers to any statistical relationship between two random
variables or two sets of data. Correlation refers to any of a broad class of statistical
relationships involving dependence.
2. Standard deviation:-
In statistics and probability th and probability theory, standard deviation (represented
by the symbol sigma, ?) shows how much variation or dispersion exists from the average
(mean), or expected value. A low standard deviation indicates that the data points tend to be
very close to the mean; high standard deviation indicates that the data points are spread out
over a large range of values.
In probability and statistics, mean and expected value are used synonymously to refer
to one measure of the central tendency either of a probability distribution or of the random
variable characterized by that distribution
EMPLOYEE WELFARE OF TATA COMPANY DEVELOPMENT OF EMPLOYEES
Believing that a happy workforce is a productive workforce, Tata Steel has always extended
its support to the cause of employee welfare and development thereby ensuring an enriched
life for all its people.
At Tata Steel, there is a continuous effort of staying in touch with employees to ensure that
there is the right culture to engage them in consistent performance improvement. There are
well-established and effective arrangements at each business location for transparent
communication and consultation with Works Councils and Trade Union representatives.
Further, the Company has always registered steady quality improvement and productivity
enhancement through dedicated efforts of the Company?s Performance Improvement teams,
focused on technical best practice transfer and the value of knowledge networks.
Towards the well-being of employees Tata Steel has put into practice many initiatives, events
and programmes that have helped to create not only an enduring loyalty amongst employees
but also enabled them to have a more fulfilled life. Tata Steel’s Performance Management
System has the following aims:
? Align the activities and behaviour of the workforce with Company values and
? Assess the performance of individuals comprehensively and fairly
? Develop the capabilities of employees to enhance performance
? Develop corporate culture
? Enhance line management relationships.
? Employees are the foundation for the superstructure of a corporation. Without them, it
would not be able to achieve its goals and objectives. While the employees are
expected to do much for the organisation for the remuneration they receive, the
organisation also needs to appreciate their honest and committed services. Employee
and Labour welfare need to be the focus of corporations not for profit-making and
goodwill building alone but from a holistic and long-term investment perspective.
? Founded in 1868 by Sir Jamsetji Nusserwanji Tata, the Tata Group today is India?s
largest conglomerate with revenues equivalent to almost 3.2% of the nation?s GDP (in
2007-08). In 2013-14, the total revenue of all Tata companies taken together, was
US$ 103.27 billion (around Rs. 624,757 crore), with 67.2% of this coming from
business outside India. The Group employed around 581,470 people worldwide. By
December, 2014, there were 32 publicly listed Tata enterprises with a combined
market capitalisation of about US$ 136.9 billion and a shareholder base of 3.9 million.
The Group comprising over 100 operating companies, had operations in more than
100 countries across six continents, and exported products and services to over 150
? Based on triangulation of data consisting of personal interviews with top executives of
the Group, responses to an Executive Perception Survey on Employee Satisfaction
and Engagement, and supplementary information available in the public domain, the
case analyses how the Tata Group and its major companies have undertaken diverse
welfare initiatives for the employees over the last many decades. Many of these
were industry-specific, and some were benchmarks not only for other corporations but
also for the governments of the day. Rarely do we come across organisations, whose
practices have been used by governments as exemplary enough to be used for
formulating labour laws. This has been true of the Tata Group companies. From the
manufacturing labour welfare focussed initiatives of the early 20th century at Tata
Steel to the tech-savvy requirements of the services sector at TCS in the early 21st
century, the Group has come a long way in its continued commitment and innovative
welfare measures for its labour force and employees. Throughout this century-long
journey, the Group has attempted to live by the values of its founders.
WELFARE MEASURES AT THE TATA IRON AND STEEL COMPANY
Welfare Measures at the Tata Iron and Steel Company:
The Tata Iron and Steel Company has undertaken various for the betterment of its employees.
It has modified the rural Jamshedpur into an advanced urban development. Various
developments have taken place in the areas of housing, health, education, recreation and
About 68% of TISCO employees are provided with affordable housing at a cost of 10% of
their income or a standardized rent – whichever is lower. The company has built 16, 698
quarters for employees and encourages employees to construct their own homes. Plots are
available to employees for rent, and the management assists the cooperative housing society.
TISCO runs many medical hospitals within Jamshedpur. Health services are provided free-of-
charge to company employees and their families. Many of the hospitals are well equipped
with the latest medical equipment and treatment options. Therefore, the ESI scheme is not
applicable to steel plants. Facilities are available in the following areas:
• Domicilary treatment.
• Public health and industrial services.
• Facilities for special treatment.
• Family planning clinics and advice.
• Maternity and children ward.
TISCO has upheld the importance of education within the community. Various educational
programs have been developed for people of all ages and backgrounds. All children attend
school, and many night schools, technical schools, and adult literary classes have been
established for working adults. Furthermore, scholarships are offered to children of
employees. These scholarships cover tuition costs, stationary, books, meals, transport, etc. for
Facilities for recreation have been provided for employees. These include health clubs and
community centers, running tracks, gyms, etc. Various community entertainment centers
have been built in the city. These centers are equipped with stages, halls, libraries, etc. These
community centers organize various stage shows, sports, games, social gatherings, picnics,
and various courses ranging from shorthand to dance lessons. Furthermore, courses especially
aimed at the backward classes have been developed by the community outreach programs.
FINDINGS AND RECOMMENDATION
Significance of Employee Welfare
Employee welfare is in the interest of the employee, the employer and the society as a whole.
These measures enable the employee and his family to lead a good life. Welfare facilities like
housing, medical and children?s education, recreation, etc. help to improve the family life of
Thus, employee welfare provides the following benefits/objectives:
? It helps to improve recruitment. As the job becomes more attractive, more efficient
employees can be recruited.
? Employee welfare improves the morale and loyalty of workers by making them happy
? It reduces labor turnover and absenteeism thereby building a stable workforce.
? It helps to increase employee productivity or efficiency by improving their physical
and mental health.
? Improvement in material, intellectual and cultural conditions of life protects workers
from social evils like drinking, gambling, prostitution, etc.
? Welfare measures helps to improve the goodwill and public image of the enterprise.
? Voluntary efforts for the welfare of workers of workers reduce the threat of further
As a business owner, you are required by law to provide certain benefits for the welfare of
your employees. You have to match the Social Security taxes your employees pay and obtain
a worker’s compensation insurance policy. If you terminate an employee, you have to provide
Consolidated Omnibus Budget Reconcilication Act (COBRA) funds to extend his health
Recruitment and Retention
The benefits an employee receives from his employer for his welfare are often a significant
reason why he decides to accept a job offer. As such, providing employee benefits allows you
to compete with other businesses to recruit and retain qualify employees. If other employers
offer better benefits , good employees may choose to go there.
By providing a plan that’s good for employees’ welfare, you show them that you value them.
This can help make them feel welcome and happy in your company, motivating them to work
harder. If your health plan has wellness coverage and preventative care, employees are more
likely to stay healthy, cutting down on absenteeism and sick days.
Providing a good employee welfare plan reflects well on your business, building a good
company image. It may even earn you some press coverage, giving you free publicity to
improve awareness among potential customers. This may boost your sales and increase your
Employee welfare services have the potential to significantly impact the organization’s
bottom line. These services are an essential human resource management tool for improving
employee health and wellness, which in turn improve job satisfaction and employee
Employee welfare services provided by human resource management often lead to an overall
increase in organizational productivity and performance. Additionally, employee welfare
services designed to reduce employee stress both on and off the job lead to reduced health
care costs. All of these factors may have a significant impact on the success of the
organization.Every business firm has its own employee who contributes his labor,
knowledge, and skills for the welfare of the business.
Majority of employees have specific obligations and may have a required number of quota to
meet. Also, every employee has their own rights and privileges as well. If an employee has
his obligations, so does an employer, the employer is obliged by the law to give his or her
employee his rights to obtain benefits and safety.
Welfare of employees is the direct leadership responsibility, not the responsibility of
neighbors or HRD (Human Resource Development). Often the human resources department
becomes the material for all the problems related to employee issues thrown in there.
Problem is intended to Salary increase HR, employee strikes directed to HRD, overtime
issues, discipline problems are also thrown into the HRD.
The manager forgot that every manager in the company also becomes manager of HR for
each of his subordinates, so the problem of improving the quality, welfare, and the
excitement of subordinates are direct responsibility, not the responsibility of the HRD. The
reason, the immediate supervisor is a party that knows exactly achievement of his
subordinates, not the HR manager, not the director, not a colleague, or even a neighbor`r.
Immediate supervisor is also a party to fill in assessment (performance appraisal) regarding
of his subordinates, he or she must ask for an increased salary, benefits, or the promotion of
his subordinates if it is considered feasible and achievement. Importantly, a leader already
fulfill their obligations to apply for promotion and salary increases / benefits are assessed of
his subordinates have the achievement.
Then the most important thing about the employee welfare that need to be considered is the
well-being of employees is not an expense, but rather a target. Indeed, in bookkeeping,
payroll, employee expenses are recorded in the company.
Nevertheless, philosophically, employee welfare should be seen as a target, because the target
company is established for human welfare, not the welfare of the building, machinery, tools
and other fixed assets.Human beings need to be considered in the first place is the owner or
founder of the company, because they are those who work hard in the beginning, worked
hard to sacrifice anything for the sake of standing and running the company they started.
They are paving the way and the others continue. If the company goes bankrupt, they also
bear the burden of major losses.
The next are shareholders, directors, and employees. Finally, the state is also a party to
prosper, because the state gets the tax. The most recent is the whole human race. They
participate prosperous, because the products and services made by the company are basically
intended to be useful and valuable to human life.
Therefore, when a company becomes big and get big profit, then when setting the basic
salary (take home pay) for its employees, it should not just use the standard minimum wage
set by the government. In other words, when achieving large profits, the remuneration of
employees should not only be based on the minimum wage.
How to improve the welfare of employees of a company can be done by increasing the value-
added industries (industry value added) or industrial quality. Along with increased
productivity, corporate profits are also expected to increase, so the benefit will be used to
improve employee income.