INTRODUCTION TO PROJECT Employee welfare Industrial progress of a country depends on its committed Employee force. The schemes of Employee welfare may be regarded as “a wise investment” which should and usually does bring a profitable return in the form of greater efficiency. Welfare is a broad concept referring to a state of living on an individual or a getup is a desirable relationship with the total environment – ecological, economical and social. Employee welfare includes both the social and economic contents of welfare.
Social security There is a common proverb called “man is a social animal” and right from inception he is struggling for his security. Social security is having dynamic concept in the modern age, which influences the social as well as economic policy. Though the social security programs are differ from country to country, they have these characteristic in common 1) They are established by law. 2) They provide some form of cash payments to individual to compensate at least a part of the lost income that occurs due to such contingencies as unemployment, maternity, worker injury, industrial disease, frugal, widowhood.
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INDUSTRY PROFILE Indian textile industry is one of the oldest industries in the largest in the country, Indian textile industry has undergone many transformation during its progress from historic periods to the present modern shape. The textile industry occupies a unique place in our country. One of the earliest to come into existence in India, it accounts for 14% of the total Industrial production, contributes to nearly 30% of the total exports and is the second largest employment generator after agriculture. Textile Industry is providing one of the most basic needs of people and the holds importance; maintaining sustained growth for improving quality of life. It has a unique position as a self-reliant industry, from the production of raw materials to the delivery of finished products, with substantial valueaddition
at
each
stage
of
processing.
Although the development of textile sector was earlier taking place in terms of general policies, in recognition of the importance of this sector, for the first time a separate Policy Statement was made in 1985 in regard to development of textile sector. The textile policy of 2000 aims at achieving the target of textile and apparel exports of US $ 50 billion by 2010 of which the share of garments will be US $ 25 billion. The main markets for Indian textiles and apparels are USA, UAE, UK, Germany, France, Italy, Russia, Canada, Bangladesh and Japan.
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COMPANY PROFILE Aditya Birla Group operates over 40 companies in 12 countries across 4 continents. It is the world’s largest producer of Viscose Rayon Fiber with about 40% market share. Textile and related products contributes to 15% of the group turnover. Given below are a brief description of the different companies under the umbrella of Aditya Birla Group involved in Viscose Rayon Fiber, Textiles and Garments Grasim Industries Limited was incorporated in 1948; Grasim is the largest exporter of Viscose Rayon Fiber in the country, with exports to over 50 countries. This, along with Aditya Birla Nuvo can be considered as the flagship companies of the AV Birla Group. Indian Rayon rechristened as Aditya Birla Nuvo Ltd in 2005.
Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks among India's largest private sector companies, with consolidated net revenues of Rs.141 billion (FY2007).Starting as a textiles manufacturer in 1948, today Grasim's businesses comprise Viscose Staple Fibre (VSF), Cement, Sponge Iron, Chemicals and Textiles — in all of which the company holds a dominant position. In July 2004, Grasim acquired a majority stake and management control in UltraTech Cement Limited, the de-merged cement business of Larsen & Toubro Limited (L&T). One of the largest of its kind, in the cement sector, this acquisition catapulted the Aditya Birla Group at the top of the league in 3
India. The Group's combined capacity stands raised to 31 million tpa, of which 17.0 million tpa capacity comes from UltraTech and 1.1 million tpa from Shree Digvijay Cement Co. Ltd, another subsidiary of Grasim. Between Grasim and its subsidiaries, the Group has 11 composite plants, seven split grinding units, four bulk terminals — inclusive of one in Sri lanka and 10 ready-mix concrete plants. Importantly, it gives the Group a strong national presence, with a leadership position in 17 states. Viscose staple fibre The Aditya Birla Group is the world's largest producer of VSF, commanding a 23 per cent global market share. The company meets India's entire domestic VSF requirements. Cement The Aditya Birla Group is the 11th largest cement producer in the world and the seventh largest in Asia. SpongeIron It is the largest merchant producer of sponge iron in India. Chemicals Grasim has India's second largest caustic soda unit. Textiles Its premium brands, the Grasim and Graviera range of fabrics, have distinctively positioned themselves as 'the power of fashion'. All of Grasim's units have earned ISO 9002 and 14001 certifications.
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Product quality, innovation and eco-friendliness are a hallmark of all the company's divisions.
A BRIEF HISTORY Grasim was incorporated on August 25, 1947, just 10 days after India became independent, manufacturing textiles made from imported raw materials. It is now a global leader in viscose staple fibre (VSF), the country's largest merchant producer of sponge iron and the second-largest caustic soda maker in India; and poised to be India's largest cement manufacturer. 2004 •
Completion of the implementation process to demerge the cement business of L&T and completion of open offer by Grasim, with the latter acquiring controlling stake in the newly formed company UltraTech
•
Board reconstituted with Mr. Kumar Mangalam Birla taking over as Chairman
•
The Staple Fibre Division and Engineering & Development Division of Grasim, Nagda receives SA 8000:2001 certification from SAI in recognition of its social accountability initiatives
2003 •
Grasim's Chemical Division receives the SA 8000 (Social Accountability) and OHSAS 18001 certifications.
•
The board of engineering major Larsen & Toubro Ltd (L&T) decides to demerge its cement business into a separate cement company
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(CemCo). Grasim will acquire an 8.5 per cent equity stake from L&T and then make an open offer for 30 per cent of the equity of CemCo, to acquire management control of the company. 2002 • •
VSF Research & Application Centre set up at Kharach in Gujarat The Grasim Board approves an open offer for purchase of up to 20 per cent of the equity shares of Larsen & Toubro Ltd (L&T), in accordance with the provisions and guidelines issued by the Securities & Exchange Board of India (SEBI) Regulations, 1997.
•
Grasim increases its stake in L&T to 14.15 per cent
•
Grasim divests its Gwalior unit to Melodeon Exports Ltd, and consolidates all textile operations at the Bhiwani unit, which will manufacture both the 'Grasim' and 'Graviera' brands at a single location.
2001 •
Grasim acquires 10 per cent stake in L&T. Subsequently increases stake to 15.3 per cent by October 2002
•
Four ready-mix concrete plants commissioned, with an aggregate capacity of one million cubic metres per annum.
•
Divests holding in Birla Technologies to PSI Data Systems.
2000 •
The Lawson Competency Centre is set up as a division of Birla Consultancy & Software Services, the software arm of Grasim, following a tie up with Lawson Software (USA), among Fortune's top five private software companies.
•
Consultancy and software services are spun off as a separate entity, called Birla Technologies Ltd. 6
•
Merger of Dharani Cements into Grasim.
1999 •
Grasim's viscose staple fibre (VSF) and rayon grade pulp units at Mavoor are closed down owing to lack of raw material.
•
Third issue on September 16, 1999 to Indian Rayon's GDRs holders: Three GDRs in Grasin for every 10 GDRs in Indian Rayon, on demerger of its Cement business into Grasim. Nos: 1,624,336
1998 •
Grasim's first major acquisition overseas – the Atholville Pulp Mill in Canada.
•
Grasim acquires Dharani Cements Ltd.
•
Grasim acquires Shree Digvijay Cements Ltd.
•
The cement business of group company, Indian Rayon and Industries Ltd (IRIL), is transferred to Grasim in a corporate restructuring exercise.
1996 •
The first phase of Grasim's fourth VSF plant commissioned at Kharach, Gujarat.
1995 •
Grasim commissions two greenfield cement plants – Grasim Cement at Raipur (Madhya Pradesh) and Aditya Cement at Shambhupura (Rajasthan).
•
Grasim sets up two new spinning units – Elegant Spinners at Bhiwani (Haryana) and Vikram Woollens at Malanpur (Madhya Pradesh). 7
1994 •
Second issue of GDRs on June 15, 1994 for US $100 million. Nos: 4,878,048
1993 •
Vikram Ispat, India's third-largest gas-based sponge iron plant, is commissioned.
•
Birla Consultancy & Software Services is set up, to provide IT consulting services and for software development
1992 •
Grasim sets up Birla International Marketing Corporation (BIMC), a merchant exporter.
•
First GDR issue on December 2, 1992 for US$ 90 million. Nos: 6,933,745
1991 :: A third production line is added at Vikram Cement. 1987 •
Vikram Cement's second production line is commissioned.
1985 •
Vikram Cement – Grasim's first cement plant – goes on stream at Jawad, Madhya Pradesh.
1977 •
Grasim's third rayon plant – at Harihar, Karnataka – goes into production.
1972 •
A completely indigenous plant based on Grasim's own engineering and know-how, begins production at Harihar, Karnataka.
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•
Grasim commences production of rayon grade caustic soda – a major raw material for VSF production – at Nagda; another step towards becoming self-reliant
1968 •
Rayon production commences at Mavoor, Kerala.
1963 •
Grasim sets up its first rayon grade pulp plant at Mavoor, Kerala; the first to make rayon grade pulp from bamboo and other hardwoods.
•
Grasim purchases a composite textile mill at Bhiwani, Haryana.
1962 •
Grasim starts an engineering division to provide plant and machinery for VSF production.
1954 •
Grasim begins rayon production at Nagda.
1950 •
Grasim launches production of fabrics at Gwalior using imported rayon – a man-made cellulose fibre.
1947 •
Grasim Industries Ltd is incorporated.
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RESEARCH METHODOLOGY RESEARCH “RESEARH IS SEARCH FOR KNOWLEDGE” OR “RESEARCH IS SYSTEMATIC EFFORTS TO GAIN KNOWLEDGE.”
RESEARCH DESIGN
“A RESEARCH DESIGN IS THE FRAMEWORK OR PLAN FOR A STUDY WHICH IS USED AS A GUIDE IN COLLECTING AND ANALYZING THE DATA COLLECTED.” It is the blue print that is followed in completing the study. The basic objective of research cannot be attained without a proper research design. It specifies the methods and procedures for acquiring the information needed to conduct the research effectively. It is the overall operational pattern of the project that stipulates what information needs to be collected, from which sources and by what methods. 10
TYPES OF RESEARCH DESIGN Research design can be classified into following types:
Descriptive research design
Exploratory research design
Experimental research design
In this project I have used descriptive research design because it describes new ideas and events.
TYPE OF DATA COLLECTION There are two types of data used. They are primary and secondary data. Primary data is defined as data that is collected from original sources for a specific purpose. Secondary data is data collected from indirect sources. PRIMARY SOURCES These include the survey or questionnaire method, telephonic interview as well as the personal interview methods of data collection. In this project I have used questionnaire and telephonic interview as primary source. SECONDARY SOURCES
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These include books, the internet, company brochures, product brochures, the company website, competitor’s websites etc, newspaper articles etc. In this project I have used internet, company brochures, product brochures, and the company website as a secondary source.
STUDY AREA The study of the topic “Employee Welfare & Social Security” has been confined to the employees of the Bhiwani Textile Mills. I have chosen both subjective and objective methodology with sampling, questionnaire and interview, analysis of data to complete my project study. For acquisition of data from different levels of the organization, I have made
“QUESTIONNAIRE
FOR
EMPLOYEES”
form
and
“QUESTIONNAIRE FOR TOP MANAGEMENT” For analysis of data statistics methods are used to arrive at the conclusion. SAMPLE For the purpose of the study, the field has been divided into categorymanagement and Employees at all levels. The sample size of 50 employees is divided into 25 from Top management, & 25 from remaining Employees at all levels). Apart from their written choice the form of questionnaire, they have also been interviewed for cross checking and proving authenticity of their choice.
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QUESTIONNAIRE The data is collected from Top Management and staff workers with the help of a questionnaire prepared for this purpose. Data was also collected through personal interaction with all the respondents. The questionnaire consists of the job profile as well as the recognition system being practiced in the organization and also the opinion and feeling of the respondents about the measures. The questionnaire has been thoroughly discussed with the respondents to clarify doubts, if any, regarding the information required. The illiterate and low educated workers found it slightly difficult to understand the questions in a straightforward manner. Their fear and suspicions were put to rest when assured that the study is purely an academic exercise and the information supplied by them would be kept confidential.
TABULATION OF DATA The data collected has been classified and put into pie charts. On the basis of these classifications, pie charts interpretations have been made. Classifying all the information according to the levels and experience of the respondents has done. The respondent’s answers, opinions, suggestions and viewpoints have been properly examined and utilized in this report. Different charts have been constructed to supplements the analysis.
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OBJECTIVE OF THE STUDY The objective of the study carried out at “Bhiwani Textile Mills� is to know how Employee welfare & social security system of the organization motivates their employees. The objective is to know the prevailing Employee welfare & social security system of the organization is efficient and effective and to know, are the employees satisfied with the system and if not what changes they would like to prefer. Welfare may help minimize social evils, such as alcoholism, gambling, drug, addiction & the like--In order to get the best out of a worker in the matter of production, working conditions require to be improved to a large extent. The workers should at least have the means and facilities to keep him in a state of health and efficiency. This is primarily a question of adequate nutrition and suitable housing conditions.The work place should provide reasonable amenities for
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his essential needs. The worker should also be equipped with the necessary technical training and a certain level of general education. Keeping in view the above points, I have carried a study on Employee welfare to know the fact & appraise the Bhiwani Textile Mills about the situation so that appropriate measure can be taken in time.
FOCUS OF THE STUDY Employee Welfare It is somewhat difficult to accurately lay down the scope Employee welfare work, especially because of the fact the Employee is composed of dynamic individuals with complex needs. According to the committee on Employee welfare, welfare services should mean Such services, facilities, amenities as adequate canteens, rest and recreation facilities sanitary and medical facilities, arrangements for travel to and from the for the accommodation of worker employed at a distance from their homes and such other services, amenities and facilities including social security measures, which contribute to conditions under which workers are employed. On the whole basis these services may be basically of three types as given below:
Economic Services These provide some additional economic security over and above wages or salaries, such as pension, life insurance, credit facilities etc. 15
Recreational Services The employees are in need of occasional diversion; their attitude improves when the routine of everyday living is broken occasionally. For this purpose, management may provide for recreational facilities.
Facilitative Services These are conveniences facilities, which are the employees ordinarily, require such as: • Canteen, Rest Room and Lunch Room • Housing Facilities • Medical Facilities etc. • Washing Facilities • Educational Facilities • Leave Travel Concession
Social Security The need of social security measures arises to help the people when they are unemployed and exposed to risk such as sickness, maternity, old age etc.
Social security scheme includes • Health Insurance • Maternity Benefits 16
• Compensation for Employment Schemes • Worker’s Pension-Cum-Insurance Schemes • Compulsory And Voluntary Social Insurance • Provident Funds Schemes • Public Health Services
Services are provided in three ways: a) Social Insurance It is a mechanism through which benefits are provided to the contributors necessary for satisfying wants during old age, sickness etc. b) Social Assistance It is a program through which the Government attempts to ameliorate the distress caused by the contingencies of life. c) Public Service Such programs are usually financed directly by the Government from its general revenue in the form of cash payments
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SAMPLING Sampling refers to the method of selecting a sample from a given universe with a view to draw conclusions about that universe. A sample is a representative of the universe selected for study. Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient. This non probability method is often used during preliminary research efforts to get a gross estimate of the results, without incurring the cost or time required to select a random sample
SAMPLE SIZE The sample size for the survey conducted was 50 respondents.
SAMPLING TECHNIQUE Convenience sampling technique was used in the survey conducted. 18
PLAN OF ANALYSIS Tables were used for the analysis of the collected data. The data is also neatly presented with the help of statistical tools such as graphs and pie charts. Percentages have also been used to represent data clearly and effectively.
EMPLOYEE WELFARE Employee welfare means anything done for the comfort and improvement, intellectual or social, of the employees over and above the wages paid which is not a necessity of the industry ďƒ˜ According
To
Arthur
James
Todd Worker welfare should be understood as a meaning with services, facilities and amenities which may be established in or in the vicinity of undertaking to enables the person employed in them to perform their work in healthy and peaceful surrounding and avail of facilities which improve their health and bring high moral. ďƒ˜ According To ILO
PROVISION OF FACTORIES ACT [1948] REGARDING EMPLOYEE WELFARE 19
According to Provision Of The Factories Act 1948, Employee welfare facilities divided into two categories, which are: Statutory Voluntary
Under the Act the following Welfare Facilities are provided SN
Facilities Description
Section
1 2 3 4 5 6 7 8 9 10
Drinking Water Latrines and Urinals Spittoons Washing Storing & Drying Cloths Sitting First Aid Appliances & Ambulance Canteen Shelters, Rest Rooms and Lunch Room Crèches
18 19 20 42 43 44 45 46 47 48
11
Welfare Officer
49
STATUTORY Statutory welfare facilities comprise of those facilities required to maintain compulsory standard of health and safety of workers, such as How to work, Hygienic Atmosphere etc. & which are mandatory for the organization in accordance with government rules which are to be adhered to.
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∗ Cleanliness Under section 11 of the Factory act, 1948 provides for the cleanliness of manufacturing of production department workers are responsible and for the cleanliness of outside and inside the mill, Four Sweepers are recruited.
Sweeper
Timing
Area Of Work
2
9 am to 5 PM
1
3 to 11
1
11 to 7
General Shift, Offices, Canteen, Outside (1stshift),Side area including staff Latrines, Urinals (2nd shift),Side area including staff Latrines, Urinals
 Ventilation & Temperature Under section 13 of The Factory act provides that suitable provisions shall be made in every factory for security and maintaining in every workroom. BTM provides this facility as o Engineering department is responsible for ventilation and temperature maintenance. o Arrangement of carrier fans with spray nozzles during summer while arrangements of return air along with steam supply during winter.
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o Exhaust fans are also fitted to carry out the dust and fumes and for circulation of fresh air.
∗ Artificial Humidfication Under section 15 of The Factory act 1948 provides that in respect of all the factories in which the humidity of the air is artificially increased.
The State Government may make rules: • Regulating the methods used for artificially increasing the humidity of the air. • Directing prescribed test for determining the humidity of the air to be correctly carried out and recorded.
∗ Canteen Under section 46 of The Factories Act, provides that a canteen shall be provided and maintained by the occupier for the use of the workers in any factory wherein more than 250 workers are employed. To manage the canteen “CANTEEN MANAGEMENT COMMITTEE” should be formed consisting representative of employer and the employees.
Without prejudice in the generality of the foregoing power, such rules may provide for
22
a) The date by which such canteen shall be provided
b) The standards in respect of construction, accommodation, furniture and other equipment of the canteen. c) The foodstuffs to be served therein and the charges which may be made therefore.
∗ Lighting The lighting arrangement has also its importance. Poor lighting arrangements increase the inefficiency of the workers. To protect the eyesight of workers and to prevent glare and formation of shadows section 17 imposes: • A duty upon the occupier to provide and maintain:a) sufficient and suitable lighting b) such lighting should be natural or artificial or both • All glazed windows and skylights provided for passing of lights should be kept clean from both side of the surface.
∗ Washing Facilities Under section 42 of Factories Act 1948 lay down that every factory has to provide these facilities: a) Adequate and suitable facilities for washing shall be provided and maintained for use of the workers therein b) Separate and adequate screened facilities shall be provided for the use of male and female workers c) Such facilities shall be conveniently accessible and shall be kept clean 23
∗ Storing And Drying Clothing Facilities Under section 43 of Factories Act a state government may make rules for requiring the provision of suitable place for keeping clothes not worn during working hours and for the drying of wet clothing. a) In every factory suitable arrangements for sitting shall be provided and maintained for all workers obliged to work in a standing position
∗ First Aid Appliances According to Factories Act each factory or company should provide following facilities: a) The number of such boxes or cupboards to be provided and maintained shall not be less than one for every one hundred and fifty workers ordinarily employed in the factory. b) Each first-aid box or cupboard shall be kept in the charge of separate responsible person,{who holds a certificate in first-aid treatment recognized by the State Government} b) In every factory wherein more than five hundred workers are , there should be provided and maintained an ambulance room or ambulance van.
∗ Crèches
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Under Section 48 of The Factories Act, crèches facilities should be provided in every factory wherein more than 30 women are employed, for the use of the children under the age of 6 years.
∗ Shelters, Rest-Rooms And Lunch-Rooms Under section 47 of the act every factory employing more than 150 workers must provide adequate and suitable shelters, rest rooms and a lunch room with provision of the drilling water, where workers can eat their meals at the time of rest interval.
∗ Drinking Water Section 18 Of The Factories Act provides these rules a) Effective arrangements shall be made to provide and maintain at suitable points conveniently situated for all workers employed therein a sufficient supply of wholesome drinking water. b) In every factory where in more than two hundred and fifty workers are ordinarily employed, provisions shall be made for cooling drinking water during hot weather by effective means and for distribution thereof.
∗ Latrines And Urinals Section 19 Of The Act makes it obligatory to provide in every factory
25
a) Sufficient latrine and urinal accommodation, which should be of
prescribed types, should be conveniently situated and accessible to workers at all time. b) Such toilets should be enclosed and should be separate for male and female workers. c) All such accommodation shall be maintained in a clean and sanitary conditions at all times.
∗ Welfare Officer The officer who doing the work regarding the facilities which are provide to workers for their welfare, known as Welfare Officer. The State Government may makes rules under section 49 (1) and (2) of The Factories Act as a) In every factory wherein five hundred or more workers are ordinarily employed the occupies shall employ in the factory such number of welfare officers as may be prescribed. b) The government may also prescribed the duties, qualification and conditions of services of officers employed.
VOLUNTARY/ NON STATUTORY 26
Voluntary welfare measure includes all those activities which employers undertake for the welfare of their workers on a voluntary basis to increase work efficiency. ∗ Regulation Of Hours Of Work Section 51 Of The Factories Act provides that no adults shall be allowed or required to work for more than 48 hours in a week. ∗ Weekly Holidays : Notices given under sub-section (1) may be canceled by a notice delivered at the office of the inspector and a notice displayed in the factory not later than the day before the said day or the holiday to be cancelled, whichever is earlier. ∗ Compensatory Holidays The provisions of section 52, a worker is deprived of any of the weekly holidays for which provision is made in sub-section (1) that section he shall be allowed, within the month in which the holidays were due to him. ∗ Daily Hours No adult worker shall be required or allowed to work in a factory more than nine hours in a day. ∗ Spread-Over The period of work of an adult worker in a factory shall be so arranged that inclusive of his intervals for rest under section 55, they shall not spread over more than ten and half-hours in any day.
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∗ Intervals For Rest The periods of work of adult workers in a factory each day shall be so fixed that no period shall exceed five hours and that no worker shall work for more than five hours before has had an interval for rest of at least half an hour, so however that the total number of hours worked by a worker without a interval does not exceed six.
SOCIAL SECURITY Social Security is that security, society furnishes through appropriate organization against certain risk to which its member are exposed. According To ILO Social Security is an instrument for social transformation and progress and must be preserved supported and developed for as such. According To Mr. Francis Blanchard
SOCIAL SECURITY LEGISLATION IN INDIA In her drive to provide protection to the needy workers, the Government of India has made the various enactments from time to time. The important among them are: 1) The Workmen’s Compensation Act, 1923 28
2) The Employee’s State Insurance Act, 1948 3) The Employee’s Provident Funds & Miscellaneous Provisions Act, 1952 4) The Family Pension Fund Act, 1995 5) The Employees Deposit Link Insurance Act, 1976 6) The Maternity Benefit Act, 1961 7) The Payment of Gratuity Act, 1972. 8) The Payment of Bonus Act, 1965.
SOCIAL SECURITY MEASURE In BTM, Bhiwani the social security can be measured by study of application of following acts in company:
∗The Employee’s Provident Fund &Miscellaneous Provisions Act, 1952 Coverage The Act covers workers employed in a factory or any industry specified in Schedule-I in which 20 or more workers are employed or which the Central Government notifies in its officials Gazette. The Act does not apply to cooperative societies employing less then 50 persons.
Administration
29
Tripartite Central Board of Trustees represented by Employers, Employees and the Government administers the Act.
% Of What Basic Pay + DA + Cash Value Of Any Food Concession Upto a maximum of Rs. 65,00 only.
Contribution Description EPF PENSION
DEPOSIT INSURANCE
Employees 12% of Wages 10% of Wages in case less then 20 persons. 8.33% of Employee Share. Central Government to contribute 1.16% LINK 1%
Employers 12% of Wages 10% of Wages in case less then 20 persons. NIL
NIL
∗ The Workmen’s Compensation Act, 1923 Coverage This act covers workers employed in factories, mines, plantations, mechanically propelled vehicles, construction works, railways, ships, circus and other hazardous occupation specified in schedule – II of the Act. 30
Administration The State Government administers the Act by appointing Commissioners for this purpose under Section 20. The Act has categorized the injuries in the following manner and the calculation of compensation there under TYPE OF INJURY Total Disablement
EXAMPLE
a) Temporary
Fracture in both hands 25% of monthly wages or legs paid fortnightly till recovery Amputation of both 60% of monthly wages hands or legs or loss of or Rs. 90,000 whichever vision in both eyes is more.
b) Permanent
COMPENSATION
Partial Disablement a) Temporary
Fracture in both hands Upto 3 days nil. Beyond or legs 3 days 25% of monthly wages paid fortnightly till recovery
b) Permanent
Permanent Amputation 50% of monthly wages of both hands or legs or or Rs. 80,000 whichever loss of vision in both is more. eyes
31
∗ The Employee’s State Insurance Act, 1948 Coverage The Act covers all workers whose income does not exceeds Rs. 7500/- per month and are employed in factories other than seasonal factories which run with the aid of power and employing 10 or more than 10 persons and on 20 or more than 20 persons without aid of powers.
Administration The Employees State Insurance Corporation, an autonomous body, administrates The Act.
Contribution Employees Share is 1.75%. Employers Share is 4.75%.
Benefits Under this Act an insured is entitled to receive the following types of benefits: a) Medical Benefit
b) Sickness Benefit
c) Maternity Benefit
d) Disablement Benefit
e) Dependents Benefit
f) Funeral Benefits 32
g) Medical Bonus
Role Of ESI Corporation To provide for the various benefits listed under the Act. To receive contributions from employers and also ensure the correctness of the contributions through periodic inspections
∗ The Employees Deposit Link Insurance Act, 1976:This Act is fully implemented in BTM Bhiwani and the provision of Deposit Linked Insurance Scheme is attached with LIC. The LIC is paying minimum Rs. 6000/- even on one-day employment and maximum Rs. 62,000/- where as PF Department will pay Rs. 500/- minimum on one year employment and maximum Rs. 60,000/- according to balance in PF A/c.
∗ The Family Pension Fund Act, 1995 Coverage The Act covers workers employed in a factory or any industry specified in Schedule-I in which 20 or more workers are employed or which the Central Government notifies in its officials Gazette. The Act does not apply to cooperative societies employing less then 50 persons.
33
Administration Tripartite Central Board of Trustees represented by Employers, Employees and the Government administers the Act.
Benefits a) Superannuating Pension
b) Reduced Pension
c) Short Service Pension
d) Less Than 10 Years
e) Permanent Disablement Pension
f) Widow Or Widower’s
Pension g) Monthly Children Pension
h) Nominee Pension
Monthly Member’s Pension = Pensionable Salary * Pensionable Service 70
∗ The Maternity Benefit Act, 1961 Coverage
34
The act is applicable to all establishments not covered under the Employees’ State Insurance Act, 1948.
Administration The Employees’ State Insurance Corporation administers the Act.
Periods Under The Maternity Benefit Act 6 Weeks
After delivery/ miscarriage/ MTP Period to 6 weeks before EDD Before EDD
Prohibited from By employer or work or to work woman
After miscarriage/ MTP Tubectomy operation Illness due to pregnancy miscarriage/ MTP/ premature birth/ tubectomy
Leave wages
On arduous By employer work/ continuos standing Leave with At maternity rate Not . 6 Weeks wages with At maternity rate Total 12 Before and after Leave delivery wages Weeks
1 Month
6 Weeks 2 Weeks 1 Month
35
with At maternity rate
Leave with At maternity rate wages Leave with At maternity rate wages subject tap production of certificate
Two Break In Nursing A Day
Till child is a 12 Those entitled to month, Rs.250, maternity Medical Bonus benefit_Provide no pre natal or post natal
∗ The Payment of Gratuity Act, 1972. Coverage The act is applicable to all establishments where 10 or more persons are working and have completed 5 years of service.
Administration The Company or Trust administrates The Fund if the Trust is linked with LIC.
Benefits Under the Act, an employee is eligible to get Gratuity amount if he renders 5 years continuous service in the organization. The Gratuity amount will be payable as under. The equation is:(Salary/ 26) * 15 * Year of Service
36
The maximum limit of gratuity payment is Rs. 3.5 lakes but if the employer want to pay more than he can paid Upto any limit.
∗ The Payment of Bonus Act, 1965. Coverage The act is applicable to all establishments where 20 or more persons are working.
Administration The Company administrates The Fund.
Benefits Under the Act, an employee whose salary or wages does not exceed more than Rs.3500/- is eligible to get Bonus up to the salary of Rs. 2500 per month @ 8.33% if he has completed One-Month Service. If the employer is interested to pay bonus on higher salary / wages than he can pay bonus Upto any limit. The rate of Bonus will be increased in case Company earns more Profit up to 20%. Every employee who has completed One Month is eligible for the Bonus.
37
Eligibility Minimum 30 days working in the year.
Minimum Bonus 8.33% of annual salary or wages.
Maximum Bonus 20% of annual salary or wages In case salary or wages is more than 2500/- then the Bonus limit would be calculated as if his wages or salary is Rs. 2500/- only.
Methods of calculation Take net profit of the establishment from the P & L A/C. Make adjustment as provided in the first or second Schedule. The result is “Gross Profit” as defined under the Bonus Act. New deducting the following a) Development rebate / investment all b) Depreciation c) Direct taxes liabilities as per section 7 Available Surplus is the above + difference between taxes on GP of last year before deducting Bonus and after deducting Bonus
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ďƒ˜ Allocable Surplus is 60% of Available Surplus
SWOT ANAYLSIS SWOT Analysis is a powerful technique for understanding the Strengths and Weaknesses, and for looking at the Opportunities and Threats one might face. Used in business context , it helps an organization carve a sustainable niche in the market. Used in a personal context, it helps one develop his/her career in a way that takes best advantages of his/her talents, abilities and opportunities.
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Strengths and Weaknesses are internal factor .Opportunities and Threats relate to external factors. For this reason,the SWOT Analysis is sometimes also called as Internal-External Analysis. SWOT Analysis mainly stand for
S
=
Strength
W
=
Weakness
O
=
Opportunities
T
=
Threats
STRENGTH Strength describes the positive attributes, tangible and intangible, internal to the object or topic. I was able to get response very quickly, as I didn’t have to face any Red Tapism, need for higher management approval, etc. I was really able to study the actual position of the implementation of the various legalization which are enforced in the company.
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The Employee Welfare & Social Security Schemes are regulated in BTM, so I was able to collect information from the employees in true sense. The Employee Welfare & Social Security Schemes motivate employees and workers to do work with efficiency and effectively. The Employee Welfare & Social Security Schemes satisfied economic and social needs of employees, so Employee Turnover in BTM is very less.
WEAKNESS It is always very difficult to complete a project with immaculate accuracy. Likewise my project also had some weaknesses, they are stated below as: My study was limited to only one organization ie. BTM. Sample size was small as compared to the total work force. The scope of the study was limited to the structured questionnaire and discussion guidelines. 41
ďƒ˜ The scope of the study was limited to the verbal Interviews and Guidelines. ďƒ˜ Time to conduct the study was less and as a result research could not be as comprehensive as required.
OPPORTUNITIES Opportunities assess the external attractive factors that affect the topic. These opportunities exist in our surroundings. The opportunities in Human Resource field are huge in terms of employement.The facilities provided due to provisions under The Employee Welfare & Social Security Schemes give chances for equality.
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The Employee Welfare & Social Security Schemes give opportunities for long term survival & growth by providing social benefits to its employees and reduced Employee absenteeism and increased productivity.
THREATS The threats are also external factors and influenced any object externally. The threats related to my training topic are: ďƒ˜ The company has not linked Gratuity Act with LIC as, which deprive them of enjoying benefits of LIC Schemes whereas its competitors provided this facility to their workers, hence company should think about it.
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Employees nowadays are very intelligent and ambitious, and they want more & more, hence to satisfy them, well-defined and regulated facilities should be provided to them. If The Employee Welfare & Social Security Schemes are not properly provided, Employee turnover may increase and it can become a threat for the organization’s survival and growth.
QUESTIONNAIRE FOR MANAGEMENT Q1. To what extent are the Company’s operating philosophy and culture understood by employees?
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Strongly Agree 12%
Agree
4% 56%
28%
Strongly Disagree Disagree
Analysis 56%(14)employees strongly agree that they get welfare facilities from company. 28%(7) employees only agree. 4%(1) employees strongly disagrees that they get welfare facilities from company. 12%(3) employees disagree that they get welfare facilities from the company.
Q2. Can the Company’s management style be described as participative?
45
8% Strongly Agree
4%
48%
Agree Strongly Disagree
40%
Disagree
Analysis 48%( 12) strongly agree that company’s overall management style is participative. 40% (10) of the employees only agreed 4% (1) of the employees strongly disagree about this philosophy. 8% (2) of the employees disagreed.
Q3. To what extent do the managers in the Company work towards employee’s satisfaction? 46
12%
4%
Strongly Agree 48%
Agree Strongly Disagree
36%
Disagree
Analysis 48% (12) employees strongly agree that managers work hard toward employee’s satisfaction. 36% (9) employees only agree. 12% (3)strongly disagree that managers work hard toward employee’s satisfaction. 4% (1) employees disagree. Q4. To what extent do you agree with the following statement “Human resource planning is well integrated with strategic planning in our company”. 47
Analysis 52% (13) employees strongly agreed that human resources planning are well integrated with strategic planning. 32% (8) employees only agreed. 12% (3) employees strongly disagreed about this. 4% (1) employees disagreed about this.
Q5. Are the Employee welfare & social security facilities extended to contract workers too?
48
32% yes no 68%
Analysis: This chart depicts, the management gives Employee welfare & social securities facilities to contract workers • 68% (17) members of management are saying yes regarding these facilities to contract workers • 32% (8) members of management are saying no regarding these facilities to contract workers
Q6. Is there any canteen management committee in your organization ? 49
28% yes no 72%
Analysis: This chart depicts the recognition of canteen management committee ďƒ˜ 72% (18) of the members of management voted for yes regarding these facilities. ďƒ˜ 28% (7) of the members of management voted for no regarding these facilities.
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Q7. Is there any Ambulance Room or Ambulance Van in the organization ?
12% yes no 88%
Analysis: This chart shows the recognition of facilities of Ambulance Room or Ambulance Van in the organisation. ďƒ˜ 88% (22) of the members of management are saying yes regarding these facilities. ďƒ˜ 12% (3) of the members of management are saying no regarding these facilities.
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Q8. What prompted you to join this organization?
Any Other 12% Welfare schemes 32%
Good Salary Package 40%
Status 16%
Analysis 40% (10) strongly say that they joined the organization because of Good Salary Package offered. 16% (4) employees said that they joined organization for status. 32% (8) employees said that they joined the organization because of welfare schemes. 12% (3) employees joined the organization because of others reasons.
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Q9. What are the major goals/objectives of your organization?
Efficiency In The Level Of Service 24%
Any Other 12%
Profitabilit y 28%
Surival & Growth 36%
Analysis 28% (7) employees strongly believed that the objective of organization is profitability. 36% (9) said that the survival & growth is main objective of our organization. 24% (6) believe strongly that the efficiency in the level of service is main goal of organization. 12% (3) believed that the goal of the organization is other than the specified above.
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Q10. Are you satisfied with your current job profile?
Unsatisfied 8%
Not So Satisfied 24%
Very Satisfied 20%
Satisfied 48%
Analysis 20% (5) employees are very satisfied with their current job profile. 48% (12) employees are only satisfied with their current job profile. 24% (6) employees said that they are not so satisfied with their current job profile. 8% (2) employees said that they are unsatisfied with their current job profile..
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QUESTIONNAIRE FOR EMPLOYEES Q1. Mark your satisfaction level with regard to following parameters, which are provided in your organization. (6 is best and 1 is worst) Parameters
6 15 10 12 12 13
Cleanliness Ventilation & Temperature Spittoons Lighting Drinking Water
18 16 14 12 10 8 6 4 2 0
5 8 8 6 8 6
4 2 4 6 5 4
3 2 1 2
2 1 -
1 -
Cleanliness Ventilation & Temperature Spittoons Lighting Drinking Water 6
5
4
3
2
1
Analysis Q2. Mark your satisfaction level with regard to following parameters related to safety in your department. (6 is best and 1 is worst) Parameters Fire Protection Hoists and Lifts Self-Acting Machine
6 8 9 4
Analysis 55
5 4 6 3
4 6 3 4
3 3 7 3
2 2 6
1 2 5
9 8 7 6
Fire Protection
5 4
Hoists and Lifts
3 2
Self- Acting Machine
1 0
6
5
4
3
2
1
Q3. Mark your satisfaction level with regard to following parameters related to welfare in your department. (6 is best and 1 is worst) Parameters Facility for Storing & Drying
6 12
5 6
4 3
3 4
2 -
1 -
Clothes Rest Room First Aid/Medical Service Canteen
14 17 18
8 4 7
3 4 2
1
-
-
Analysis
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20 18 16 14 12 10 8 6 4 2 0
Facility for Stroing and DryingClothes First Aid/Medical Service Rest Room Canteen
6
5
4
3
2
1
Q4 Are you satisfied with the compensation given to you in case you get injured at the work place?
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No 28% Yes 72%
Analysis: This chart depicts, the management gives compensations facility to workers • 72% (18) of the members of management are saying yes regarding these facilities to workers. • 28% (7) of the members of management are saying no regarding these facilities to workers.
Q5. Do you get company Housing & Education facility? 58
No 36%
Yes 64%
Analysis: This chart depicts, the management gives Housing & Education facility to workers • 64% (16) of the members of management say yes regarding these facilities to workers. • 36% (9) of the members of management say no regarding these facilities to workers.
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Q6. Does your organization provides medical benefits apart ESI?
No 16% Yes 84%
Analysis: This chart depicts, the management gives Medical benefits as apart of ESI facility to workers • 84% (21) members of management are saying yes regarding these facilities to workers. • 16% (4) members of management are saying no regarding these facilities to workers.
Q7. Are you satisfied with the present job profile? 60
Unsatisfied 8%
Very Satisfied 28%
Not So Satisfied 20%
Satisfied 44%
Analysis 28% (7) employees are very satisfied with their current job profile. 44% (11) are only satisfied with their current job profile. 20% (5) employees said that they are not so satisfied with their current job profile. 8% (2) employees said that they are unsatisfied with their current job profile.
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Q8. Are the methods used to give you welfare schemes are genuine?
Never 16% Once In While 20%
Most Of The time 48%
Some Time 16%
Analysis 48% (12) employees said methods of welfare are genuine most of the times. 16% (4) employees said methods of welfare are genuine only some times. 20% (5) employees said methods of welfare are genuine once in a while. 16% (4) employees said methods of welfare are never genuine.
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Q9. How do you rate your organization?
Average 4% Good Excellent 24% 28%
Very Good 44%
Analysis 28% (7) employees ranked their organization as excellent. 44% (11) employees ranked their organization as very good. 24% (6) employees ranked their organization as good. 4% (1) employees ranked their organization as average.
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FINDINGS Although the workers were more or less satisfied with various facilities provided by the company, still there were certain facilities with which the workers were not satisfied and required improvements. Some of them are listed below which I encountered during my study on Employee welfare & social security in BTM , Bhiwani. At present canteen is run by a contractor and a contractor is charging market rate on foodstuffs. The company should increase its subsidy so that foodstuffs are available on reasonable rates. The Organization should provide Uniform to the workers. The Organization should also provide housing and education facility to the workers. The Organization should increase the amount of emergency loans provided to the workers. The Organization should provide Long Service Rewards to its employees.
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RECOMMENDATIONS In my view the company should deduct PF and FPF on full basic earning so that the employees at the time of retirement may able to get maximum amount from pension Fund. At present Company is paying Gratuity @ 15 days Wages or salary on one year service to all employees who completed five years continuous services .In my view the employees who have been working for more than 15 years should be allowed to get 20 days salary instead of 15 days because by giving this benefit the employees are able to compensate their interest on gratuity amount. Company should provide Sick leave Facility to those employees who are not covered under ESI ACT. Unemployment resulting from modernization will have to be solved by properly assessing manpower needs and training redundant employees in alternate skills. Although this is difficult process and it may be hurt some people there is no escape.
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CONCLUSION In our country the industrialization started very late but we have rapidly catching up with the progress achieved elsewhere and the expectation and aspiration of worker are rising rapidly. They are demanding increasing power and authority in the design making process. The Govt. is also looking sympathetically towards the working class. At BTM, Bhiwani workers are overall satisfied and contended. It is a boom for the organization because satisfaction is a personal thing and an organization can’t satisfy its worker only by giving more. Workers are happy with the physical working conditions inside the factory. Workers are also happy with the safety parameters provided by the management. Workers are happy with the facilities of health and recreation. Workers are satisfied with the facilities provided by the ESI. Workers are also happy with the medical benefits provided by the company.
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ďƒ˜ Workers are also satisfied by the loan facility provided by the company BTM, Bhiwani is successful in maintaining good relationship with the workers. The success of the organization is largely due to its workers as it is a Employee intensive organization.
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LIMITATIONS As I didn’t have significant knowledge on this topic, I was unable to draw more information. The resources available were very limited and I faced problems communicating with all the employees, as there was heavy noise pollution in the plant. There was also lack of time and workers also were hesitant in responding in the working hours.
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ANNEXURE Questionnaire for Management NAME -
………………………..
DATE -
………………………..
Q1. Do u think Company’s operating philosophy and culture is beneficial to you? A
Strongly agree
Agree
Strongly Disagree
Disagree
Q2. Can the Company’s management style be described as participative? A
Strongly agree
Agree
Strongly Disagree
Disagree
Q3. Do the managers in the Company work towards employee’s satisfaction? A
Strongly agree
Agree
Strongly Disagree
Disagree
Q4. To what extent do you agree with the following statement “Human resource planning is well integrated with strategic planning in our company”. 69
A
Strongly agree
Agree
Strongly Disagree
Disagree
Q5. Are the Employee welfare & social security facilities extended to contract workers too? A:
YES
NO
Q6. Is there any canteen management committee in your organization ? A:
YES
NO
Q7. Is there any Ambulance Room or Ambulance Van in the organization ? A:
YES
NO
Q8. What prompted you to join this organization? A
Good Salary
status
Strongly Disagree
Disagree
Q9. What are the major goals/objectives of your organization? A
Profitability Efficiency
Survival & Growth Any Other
Q10. Are you satisfied with your current job profile? A
Satisfied
Very Satisfied
Not So Satisfied
Dissatisfied
70
Questionnaire for Employees Q1. Mark your satisfaction level with regard to following parameters, which are provided in your organization. (6 is best and 1 is worst) Parameters
6
5
4
3
2
1
Cleanliness Ventilation & Temperature Spittoons Lighting Drinking Water
Q2. Mark your satisfaction level with regard to following parameters related to safety in your department. (6 is best and 1 is worst) Parameters Fire Protection Hoists and Lifts Self-Acting Machine
6
5
4
3
2
1
Q3. Mark your satisfaction level with regard to following parameters related to welfare in your department. (6 is best and 1 is worst) Parameters Facility for Storing & Drying
6
Clothes Rest Room First Aid/Medical Service Canteen
71
5
4
3
2
1
Q4 Are you satisfied with the compensation given to you in case you get injured at the work place? A:
YES
NO
Q5. Do you get company Housing & Education facility? A:
YES
NO
Q6. Does your organization provides medical benefits apart ESI? A:
YES
NO
Q7. Are you satisfied with the present job profile? A
Satisfied
Very Satisfied
Not So Satisfied
Dissatisfied
Q8. Are the methods used to implement welfare schemes genuine? A
Never
Sometimes
Many times
Most Times
Q9. How do you rate your organization? A
Good
Average
Very Good
Excellent
BIBLIOGRAPHY BOOKS AND JOURNALS 72
Human Resource Management in a Business Context by Alan Price, 3rd edition (April 2007) Empowering Employees by Kenneth L. Murrell, Mimi Meredith Human Resource Management by Robert L. Mathis, John H. Jackson,11th edition
MAGAZINES BUSINESS INDIA April, 2007 UDYOG VYPAR PATRIKA. (HALF YEARLY )EDITION Employee Power MAGAZINE.JAN 2007
WEB SITE www.wikipedia.org www.grasimindia.com www.google.com www.yahoo.com
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