Welfare Measures of an Employee in BHEL 1 A Project Report On EMPLOYEE WELFARE MEASURES At Bharat Heavy Electricals Limited (BHEL) Ramachandrapuram Hyderabad-32. In Partial fulfillment of Award of the degree of MASTER OF HUMAN RESOURCE MANAGEMENT SUBMITED BY Harika. Viswanatham Under the guidance of Mrs. K. Sujana Manager (HR), BHEL, Hyderabad Padmasri Dr. B. V. Raju Institute of Technology 2 Narsapur ACKNOWLEDGEMENT I express my gratitude to the management of Bharat Heavy Electricals Limited (BHEL), Hyderabad for kindly allowing me to do this project on “Welfare Measures of an Employee in BHEL, Hyderabad”.
I express my gratitude to the department of the management studies of Padmasri Dr. B. V. Raju Institute of Techonology,Narsapur for allowing me to take this project work in BHEL,Hyderabad as a part of my curriculum. My training during the project work in BHEL,Hyderabad was very good experience as I learn lot of new things. I am very thankful to Ms. K. Sujana, Manager, HR (WELFARE DEPEREMENT), BHEL, Hyderabad who has guided me during the entire period of training. She provided me with lost of data, materials and information related to the topic, which help me to complete this project.
I am also thankful to all the concerned persons who helped me during the training and provided information to complete this project. 3 DECLARATION I Harika. Viswanatham, student of Padmasri Dr. B. V. Raju Institute of Techonlogy,Narspur. Here by declare that the project report titled “Welfare Measures of an Employee in BHEL, Hyderabad” submitted by me to the Human Resource development department is my own original work and it has not been submitted to any other organization or published any where previously. Date: Place: Signature Harika. Viswanatham 4 INDEX S. no Title Chapter-1 2 3 4 5 6 7 8 9 Introduction Importance of welfare Features of labour welfare Need of labour welfare Types of welfare Activities Functions of labour welfare Objectivities of labour welfare Theories of labour welfare Employee Protection and welfare Page no Chapter-2 1 2 3 4 Research design Statement of the problem Objectives of the study Scope of the study Chapter-3 1 2 BHEL profile BHEL Ramachandrapuram, Hyderabad Chapter-4 1 Review of literature 5 2 3 Methodology Data analysis and interpretation Chapter-5 1 2 3 4 Findings Conclusion Recommendation Bibliography Annexure: 1 Questionnaire 6 Chapter-1 Introduction
Employee Welfare is an important facet of industrial relations, the extra dimension, giving satisfaction to the worker in a way which evens a good wage cannot. With the growth of industrialization and mechanization, it has acquired added importance. The workers in industry cannot cope with the pace of modern life with minimum sustenance amenities. He needs an added stimulus to keep body and soul together. Employers have also realized the importance of their role in providing these extra amenities. And yet, they are not always able to fulfill workers demands however reasonable they might be.
They are primarily concerned with the viability of the enterprise . Employee welfare, though it has been proved to contribute to efficiency in production, is expensive. Each employer depending on his priorities gives varying degrees of importance to labour welfare. It is because the government is not sure that all employers are progressive minded and will provide basic welfare measures that it introduces statutory legislation from time to time to bring about some measures of uniformity in the basic amenities available to industrial workers.
After employees have been hired, trained and remunerated, they need to be retained and maintained to serve the organization better. Welfare facilities are designed to take care of the wellbeing of the employees, they do not generally result in any monetary benefit to the employees. Nor are these facilities provided by employers alone. Governmental and non-governmental agencies and trade unions too, contribute towards employee welfare. 7 Employee welfare is a comprehensive term including various services, enefits and facilities offered to employees by the employer. Through such generous fringe benefits the employer makes the life worth living for employees. The welfare amenities are extended in addition to normal wages and other economic rewards available to employees as per the legal provisions. Welfare measures may also be provided by the government, trade unions and nongovernment agencies in addition to the employer. The basic purpose of employee welfare is to enrich the life of the employees and keep them happy and contended.
MEANING AND DEFINITION Welfare means faring or doing well. It refers to the physical, mental, moral and emotional well-being of an individual. Further, the term welfare is a relative concept, relative in time and space. It, therefore, varies from time to time, from region to region and from country to country. Employee welfare, also referred to as betterment work for employees, relates to taking care of the well-being of workers by employers, trade unions and government and non-governmental agencies.
It is rather difficult to define the term labour welfare precisely because of the relatively of the concept. The Oxford dictionary defines employee welfare as “efforts to make life worth living for workmen”. It is however, difficult to precisely define the scope of these efforts. Different writers have defined it in different ways. Some writers say that only voluntary efforts on the part of employers to improve the conditions of employment in their factories from the scope of employee welfare efforts.
Some others say that it includes not only voluntary efforts of the employer but also the minimum standards of hygiene and safely laid down in general legislation. Here are some of the definitions given by some of the experts. 8 The labour Investigation Committee preferred to include under ‘Labour Welfare’: “Anything done for the intellectual, physical, moral and economic betterment of the workers, employers, by government or by other agencies over and about what is laid down by law or what is normally expected of the contractual benefits for which workers may have bargained. According to the committee and labour welfare services should me: “Such services, facilities, and amenities as adequate canteen, rest and recreation facilities, sanitary and medical facilities, arrangements foe travel to and from place of work, and for the accommodation of workers employed at a distance from they homes; and such other services, amities and facilities, including social security measures, as contribute to the conditions under which workers are employed “ The ILO report refers to labour welfare as: Such services, facilities, and amenities as may be established in or in the vicinity of under takings to enable the persons employed in them to perform their work in health, congenial surroundings and provided with amenities conductive to good health and high morale. ” The encyclopedia of social sciences has defined labour welfare work as: 9 The voluntary efforts of the employers to established, with in the exiting industrial system, working and some times, living and cultural condition of the employees beyond what is required by law, the custom of the country and the conditions of the market”
IMPORTANCE: Industrial progress of a country depends on its committed labour force. In this regard the importance of labour welfare was recognized as early as 1931, when the royal commission on labour started that the benefits, which go under this nomenclature, are of great importance to the worker who is unable to secure by himself. The schemes of labour welfare may be regarded as “a wise investment” which should and usually does bring profitable return in the form of greater efficiency. 0 years later, the planning commission realized the importance of labour welfare, when it observed “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 working condition should be such as to safeguard his health and protect him against occupational hazards.
The work place should provide reasonable amenities for his essential needs. The worker should also be equipped with the necessary technical training and a certain level of general education. ” 10 BASIC FEATURES OF LABOUR WELFARE: On the basis of the various definitions, the basic charters tics of labour welfare work may be noted thus: a) It is the work, which is usually undertaken with in the premises or in the vicinity of the undertakings for the benefits employees and the members of their families. ) The work generally includes those items of welfare which are over and above what is provided by statutory provisions are required by the custom of the industry or the employees expect as a results of a contract of services from the employers. c) The purpose of providing welfare amenities is to bring about the development of the whole personality of the worker-his social, psychological, economic, moral, and cultural and intelectuaval development to make him a good worker, a good citizen and a good member of the family. ) These facilities may be provided voluntarily by progressive and enlightened entrepreneurs at their own accord out of their realization of social responsibility towards labour statutory provisions may compel them to make these facilities available: or these may be under taken by the government or trade unions, if they have the necessary funds for the purpose. 11 e) Labour welfare is a very broad term, covering social securities and such other activities as medical aid, creches, canteens, recreations, housing, adult education, arrangements for the transports of labour to and from the work place. ) It may be noted that not only intra mural but also extra mural, statutory as well as non statutory activities, undertaken by any of the three agencies- the employers, trade unions or the governmentfor the physical and mental development of worker, both as a compensation for wear and tear the undergoes as part of the production process and also to enable him to sustain and improve upon the basic capacity of contribution on the processes of production, “which are all the species of the longer family encompassed by the term ‘Labour Welfare’”
NEED FOR LABOUR WELFARE: The need for the labour welfare arises from the very nature of the industrial system, which is characterized by two basic factors ;one, the conditions under which work is carried on are not congenial for health; and second, when a labourer joins an industry, he has to work on an entirely strange atmosphere, which create problems of adjustement. One author calls these two factors “the long arm of the job”, and “the social invasion of the factory”.
The working environment in a factory /mine adversely affects the workers ‘health because of the excessive heat or cold, noise, odours, fumes, dust and lack of sanitation and pure air etc. , lead to occupational hazards. 12 These have, therefore, to be held in check by providing ameliorative services, protective devices and compensatory benefits following of accident or injury or disablement. This has been referred to as “the long arm of the job which stretches out its adverse effects on to the worker long after his normal 8-hour work”.
Hence the need for provision of welfare services within the premises of the factory, mine or plantation arises. There is a social reason also as pointed out by the labour Investigation Committee,” the provision of the canteens improves the physique, entertainment reduce the incidence of vices; medical aid and maternity and child welfare services improve the health of the workers and bring down the rates of general, maternal and infantile morality; And educational facilities increase their mental efficiency and economic productivity.
AIMS OF LABOUR WELFARE WORK: The labour welfare work aims at providing such service facilities and amenities as would enable the workers employed in industries /factories to perform their work in healthy, congenial surroundings conducive to good health and high morale. • It is partly humanistic, for it enables the workers to enjoy a fuller and richer life. • It is partly economic because it improves the efficiency of the worker, increases its availability where it is scarce and keeps 13 him contented . t, therefore, minimizes the inducement to form or join unions and to resort to strikes. • The aim is partly civic because it develops a sense of responsibilities and dignity among the workers and thus makes them worthy citizens of nation. Employee welfare has 2 aspects—negative and positive. On the negative side, employee welfare is concerned with counteracting the baneful effects of the large-scale industrial system of production especially capitalistic, so far as India is concerned on the personal/family, and social life of the worker.
On its positive side, it deals with the provision of opportunities for the worker and his/her family for a good life as understood in its most comprehensive sense. Employee welfare operates to neutralize the harmful effects of large scale industrialization and urbanization. Provision of welfare amenities enables the workers to live a richer and more satisfactory life and contributes to their efficiency and productivity. It helps in maintaining industrial peace. 14 TYPES OF WELFARE ACTIVITIES:
The meaning of labour welfare may be clearer by listing the activities and facilities, which are referred to as welfare measures. A comprehensive list of welfare activities on labour welfare into two broad groups, namely: 1. Welfare measures inside the work place; and 2. Welfare measures outside the work place. 1. Welfare Measures inside the Work Place a) Conditions of the work Environment • Safety and cleanliness: attention to approaches. • Housekeeping • Workshop sanitation and cleanliness. Control of effluents • Convenience and comfort during work • Distribution of work hours • Workmen’s safety measures • Supply of necessary beverages • Notice Boards 15 b) Conveniences • Provision of drinking water • Urinals and bathrooms • Provision for spittoons • Canteen services • Rest rooms and reading rooms C) Worker’s Health Services • Factory health center • Dispensary • Ambulance • Emergency aid • Health education d) Women and Child Welfare • Services Creche and child care • Separate services for woman workers • Family planning 16 17 ) Workers’ recreation • Indoor games; strenuous games to be avoided during intervals of work f) Economic services • Co operatives, loans, financial grants • Thrift and savings schemes • Un employment insurance • Profit sharing and bonus schemes • Gratuity and pension g) Labour management participation • Formation and working of various committees • Workmen’s arbitration council • Research bureau h) Workers education • Reading room • Library • Adults education • Daily news review • Factory news bulletin 18 2. Welfare Measures outside the Work Place a) Water, sanitation, waste disposal. ) Roads, lighting, parks, recreation, playgrounds. c) Schools: nursery, primary, secondary and high school. d) Markets, co operatives, consumer and credit societies. e) Bank f) Transport g) Communication: post, telegraph and telephone. h) Health and medical services: dispensary, emergency ward, outpatient and in-patient care, family visiting, family planning i) Recreation: games; clubs; craft centers; cultural programmes j) Watch and ward; security. k) Administration of community services and problems. Welfare facilities may also be categorized as (a) intra- mural and (b) extramural Intra-mural facilities Intra-mural ctivities consist of facilities provided with in the factories and include medical facilities, compensation for accidents, provision of creches and canteens, supply of drinking water, washing and bathing facilities, provision of safety measures, activities relating to improving conditions of employment, and the like. 19 Extra-mural facilities Extra-mural activities cover the services and facilities provided out side the factory such as housing accommodation, indoor and out door recreational facilities, amusement and sports, educational facilities for adults and children, and the like.
It may be started that the welfare activities may be provided by the employer, the government, non-government organization and the trade unions, while, what employees provide will be started later; the activities undertaken by other agencies are mentioned here. LABOUR WELFARE – LEGAL SIDE Statutory and non-statutory activities: Welfare activities may also be classified into 1) Statutory provisions 2) Non-statutory provisions Statutory provisions The factories act, 1948; the mines act, 1952; the plantation labour act, 1951; and some other acts mandate these.
Of all these, the factories act is more significant and hence is covered in detail here. The factories act: The act was first conceived in 1881 where legislation was enacted to protect children and to provide health and safety measures. 20 Later, hours of work were sought to be regulated and were, therefore, incorporated in the act in 1911. The act was amended and enlarged in 1934 following the recommendations of the royal commission of the labour. A more comprehensive legislation to regulate working conditions replaced the act in 1948. The welfare amenities provided under the act are given below: a) Washing facilities (S. 2) b) Facilities for storing and dry clothing (S. 43) c) Sitting facilities for occasional rest for workers who are obliged to work standing (S. 44) d) First aid boxes or cupboards- one for every 150 workers and ambulance facilities, if there are more than 500 workers (S. 45) e) Canteens, if employing more than 250 workers (S. 46) f) Shelters, rest rooms and lunchrooms, if employing over 150 workers (S. 47) g) Creche, if employing more than 30 women(S. 48) h) Welfare officer, if employing 500 or more workers (S. 49) Non-statutory provisions
Non-statutory benefits, also called voluntary benefits, include loans for house building, education of children; leave travel concession, fair price shops, loans for purchasing personnel conveyance and a host of other facilities 21 FUNCTIONS AND DUTIES LABOUR WELFARE OFFICER: Schedule 49 of the act provides that in every factory where in 500 or more workers are ordinarily employed, the employers shall appoint at least one welfare officer. The officer is expected to act as an advisor, counselor, mediator and liaisoning officer between the management and the labour. Specifically, his/her duties include the following 1.
Supervision of (i) safety, health and welfare programs like housing, recreation, and sanitation services (ii) working of joint committees; (iii) grant of leave with wages; and (iv) redressal of workers. 2. Counseling workers in (i) personal and family problems; (ii) adjustment to their work environment; and (iii) understanding their rights and privileges. 3. Advising management in matters of (i) formulating welfare policies; (ii) apprenticeship training programs; (iii) complying with statutory obligations to workers; (iv) developing fringe benefits; and (v) workers education. 4.
Laisoning with workers so that they may (i) appreciate the need for harmonious industrial relations in the plant; (ii) resolved disputes, if any; (iii) understanding the limitations under which they operate; and (iv) interpret company policies correctly. 5. Laisoning with the management so as to appraise the latter about workers view points on organization matters Objectives 22 The basic features of labor welfare measures are as follows: • Labor welfare includes various facilities, services and amenities provided to workers for improving their health, efficiency, economic betterment and social status. Welfare measures are in addition to regular wages and other economic benefits available to workers due to legal provisions and collective bargaining • Labor welfare schemes are flexible and ever-changing. New welfare measures are added to the existing ones from time to time. • Welfare measures may be introduced by the employers, government, employees or by any social or charitable agency. • The purpose of labor welfare is to bring about the development of the whole personality of the workers to make a better workforce. Enabling workers to live richer and more satisfactory lives; • Contributing to the productivity of labour and efficiency of the enterprise; • Enhancing the standard of living of workers by indirectly reducing the burden on their work they purse; Enabling workers to live in tune and harmony with services for workers obtaining in the neighborhood community where similar enterprises are situated; • 23 • Based on an intelligent prediction of the future needs of the industrial workers, designing policies to cushion off and absorb the shocks of industrialization and urbanization to workers; Fostering administratively viable and essentially developmental outlook among the workforce; and Discharging social responsibilities The important benefits of welfare measures can be summarized as follows: • They provide better physical and mental health to workers and thus promote a healthy work environment 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 productivity.
Employers get stable labor force by providing welfare facilities. Workers take active interest in their jobs and work with a feeling of involvement and participation. 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. • • • • 24 THEORIES OF LABOUR WELFARE
The form of labor welfare activities is flexible, elastic and differs from time to time, region to region, industry to industry and country to country depending upon the value system, level of education, social customs, and degree of industrialization and general standard of the socio-economic development of the nation. Seven theories constituting the conceptual frame work of labour welfare activities are the following:The Police Theory: This is based on the contention that a minimum standard of welfare is necessary for labourers. Here the assumption is that without policing, that is, ithout compulsion, employers do not provide even the minimum facilities for workers. Apparently, this theory assumes that man is selfish and self centered and always tries to achieve his own ends, even at the cost of the welfare of others. According to this theory, owners and managers of industrial undertakings get many opportunities for exploitation of labour. Hence, the state has to intervene to provide minimum standard of welfare to the working class. The Religious Theory: This is based on the concept that man is essentially “a religious animal. ” Even today, many acts of man are related to religious sentiments and beliefs.
These religious feelings sometimes prompt an employer to take up welfare activities in the expectation of future emancipation either in this life or after it. The Philanthropic Theory: This theory is based on man’s love for mankind. Philanthropy means “Loving mankind. ” Man is believed to have an instinctive urge by which he strives to remove the suffering of others and promote their 25 well-being. In fact, the labour welfare movement began in the early years of the industrial revolution with the support of philanthropists. The Trusteeship Theory: This is also called the Paternalistic Theory of Labour Welfare.
According to this the industrialist or employer holds the total industrial estate, properties, and profits accruing from them in a trust. In other words, the employer should hold the industrial assets for himself, for the benefit of his workers, and also for society. The main emphasis of this theory is that employers should provide funds on an ongoing basis for the well-being of their employees. The Placating Theory: This theory is based on the fact that the labour groups are becoming demanding and militant and are more conscious of their rights and privileges than ever before.
Their demand for higher wages and better standards of living cannot be ignored. According to this theory, timely and periodical acts of labour welfare can appease the workers. They are some kind of pacifiers which come with a friendly gesture. The Public Relation Theory: This theory provides the basis for an atmosphere of goodwill between labour and management, and also between management and the public, labour welfare programmes under this theory, work as a sort of an advertisement and help an organization to project its good image and build up and promote good and healthy public relations.
The Functional Theory: This is also called the Efficiency Theory. Here, welfare work is used as a means to secure, preserve and develop the efficiency and productivity of labour, It is obvious that if an employer takes good care of his workers, they will tend to become more efficient and will 26 thereby step up production. This theory is a reflection of contemporary support for labour welfare. It can work well if both the parties have an identical aim in view; that is, higher production through better welfare. And this will encourage labour’s partcipation in welfare programmes. PRINCIPLES WELFARE
FOR SUCCESSFUL IMPLEMENTATION OF ACTIVITIES The success of welfare activities depends on the approach which has been taken into account in providing such activities to the employees. Welfare policy should be guided by idealistic morale and human value. Every effort should be made to give workers/ employees some voice in the choice of welfare activities so long as it does not amount to dictation from workers. There are employers who consider all labour welfare activities as distasteful legal liability. There are workers who look upon welfare activities in terms of their inherent right.
Both parties have to accept welfare as activities of mutual concern. Constructive and lasting Progress in the matter of social justice can be achieved only if welfare activities are accepted as essential factors in the progress of the business organization Labour welfare is dependent on certain basic principles. The following are the principles on which successful implementation of welfare programmes depends : Adequacy of Wages: Labour welfare measures cannot be a substitute for wages. Workers have a right to adequate wages.
But high wage rates alone cannot create healthy atmosphere, nor bring about a sense of commitment on the part of workers. A combination of social welfare, emotional welfare and economic welfare together would achieve good results. 27 Social Liability of Industry: Industry, according to this principle, has an obligation or duty towards its employees to look after their welfare. The constitution of India also emphasizes this aspect of labour welfare. Impact on Efficiency: This plays an important role in welfare services, and is based on the relationship between welfare and efficiency, though it is difficult to measure this relationship.
Programmes for housing, education and training, the provision of balanced diet and family planning measures are some of the important programmes of labour welfare which increases the efficiency of the workers, especially in underdeveloped or developing countries. Increase in Personality: The development of the human personality is given here as the goal of industrial welfare which, according to this principle, should counteract the baneful effects of the industrial system. Therefore, it is necessary to implement labour welfare services.
Both inside and outside the factory, that is, provide intra-mural and extra-mural labour welfare services. Totality of Welfare: This emphasizes that the concept of labour welfare must spread throughout the hierarchy of an organization. Employees at all levels must accept this total concept of labour welfare programme will never really get off the ground. Co-ordination or Integration: This plays an important role in the success of welfare services. From this angle, a co-ordinate approach will promote a healthy development of the worker in his work, home and community.
This is essential for the sake of harmony and continuity in labour welfare services. 28 Democratic Values: The co-operation of the worker is the basis of this principle. Consultation with, and the agreement of workers in, the formulation and implementation of labour welfare services are very necessary for their success. This principle is based on the assumption that the worker is “a mature and rational individual. ” Industrial democracy is the driving force here.
Workers also develop a sense of pride when they are made to feel that labour welfare programmes are created by them and for them. Responsibility: This recognizes the fact that both employers and workers are responsible for labour welfare. Trade unions, too, are involved in these programmes in healthy manner, for basically labour welfare belongs to the domain of trade union activity. Further, when responsibility is shared by different groups, labour welfare work becomes simpler and easier. Accountability: This may also be called the Principle of Evaluation.
Here, one responsible person gives an assessment or evaluation of existing welfare services on a periodical basis to a higher authority. This is very necessary, for then one can judge and analyze the success of labour welfare programmes. Timely: The timeliness of any service helps in its success. To identify the labour problem and to discover what kind of help is necessary to solve it and when to provide this help are all very necessary in planning labour welfare programmes. Timely action in the proper direction is essential in any kind of social work. 29 EMPLOYEE PROTECTION AND WELFARE
STATUTORY WELFARE MEASURES: The preamble to our Indian Constitution promises justice – social, economic and political. It also stresses Equality of status and of opportunity. Article 23 of the Constitution prohibits traffic in human beings and forced labour. Article 24 prohibits employment of children in factories. The article 38 and 39 spelt under Directive Principles of State Policy are now enforceable as per the dictums laid by our Supreme Court. Constitution of India, Article 38: State to secure a social order for the promotion of welfare of the people: •
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, social, economic and political, shall inform all the institutions of the national life. • The State shall, in particular, strive to minimize the inequalities in income, and endeavor to eliminate inequalities in status, facilities and opportunities, not only amongst individuals but also amongst groups of people residing in different areas or engaged in different vocations.
Constitution of India, Article 39: Certain principles of policy to be followed by the State. The State shall, in particular, direct its policy towards securing • That the citizens, men and women equally, have the right to an adequate means to livelihood; 30 • That the ownership and control of the material resources of the That the operation of the economic system does not result in the community are so distributed as best to sub serve the common good; • concentration of wealth and means of production to the common detriment ; • •
That there is equal pay for equal work for both men and women; That the health and strength of workers, men and women, and the tender age of children are not abused and that citizens are not forced by economic necessity to enter avocations unsuited to their age or strength • Those children are given opportunities and facilities to develop in a healthy manner and in conditions of freedom and dignity and that childhood and youth are protected against exploitation and against moral and material abandonment. Through social security and social justice are spelt in our
Constitution, they are never put into practice thanks to our Executives who only pretend to implement the programmes of the State. Some of the important Statutory Welfare measures given by the government are as follows: (i) The Factories Act of 1948 (ii) The Employees State Insurance Act 1948 (iii) The payment of Wages Act 1936 (iv) The Workmen’s Compensation Act 1923 (v) The Employees’ Provident Funds and Miscellaneous Provisions Act 1952. (vi) The Payment of Gratuity Act, 1962 (vii) The Maternity Benefit Act, 1961 31
FACTORIES ACT OF 1948 Purpose of this Act: An act to consolidate and amend the law regulating labour in factories. The Factories Act is meant to provide protection to the workers from being exploited by the greedy business employments and provides for the improvement of working conditions within the factory premises. The main function of this act is to look after the welfare of the workers, to protect the workers from exploitations and unhygienic working conditions, to provide safety measurers and to ensure social justice.
Sections 11 to 20 of the Factories Act deal about Health. HEALTH Section 11: Cleanliness Section 12: Disposal of wastes and effluents Section 13: Providing proper ventilation and maintaining proper temperature Section 14: Removal of Dust and fume Section 15: Providing artificial humidification Section 16: No Overcrowding Section 17: Proper Lighting Section 18: Providing pure Drinking water Section 19: Providing Latrines and urinals Section 20: Providing Spittoons 32
SAFETY Section 21: Proper Fencing of machinery Section 22: Precautions – Work on or near machinery in motion Section 23: No Employment of young persons on dangerous machines Section 24: Providing Striking gear and devices for cutting off power Section 25: Precautions near Self-acting machines Section 26: Casing of new machinery Section 27: Prohibition of employment of women and children near cotton openers Section 28: Providing Hoists and lifts Section 29: Provision for Lifting machines, chains, ropes and lifting tackles Section 30: Protection near revolving machinery Section 1: Protection near Pressure plant Section 32: Provision for Floors, stairs and means of access Section 33: Providing and precautions near Pits, sumps openings in floors, etc. Section 34: No Excessive weights Section 35: Protection of eyes Section 36: Precautions against dangerous fumes, gases, etc Section 36A: Precautions regarding the use of portable electric light Section 37: Explosive or inflammable dust, gas etc. Section 38: Precautions in case of fire Section 39: Power to require specifications of defective parts or tests of stability Section 40: Safety of buildings and machinery.
Section 40A: Maintenance of buildings Section 40B: Appointment of Safety Officers 33 WELFARE Section 42: Providing Washing facilities Section 43: Providing Facilities for storing and drying clothing Section 44: Providing Facilities for sitting Section 45: First-aid appliances to be kept. Section 46: Canteens at subsidized rates. Section 47: Shelters, rest rooms and lunch rooms for workmen. Section 48: Creches for babies of working women. Section 49: Appointment of Welfare officers.
It is the duty of the Chief Inspector of Factories to ensure enforcement of all the above provisions of the Factories Act in respect of safety, health and welfare of employees. THE WORKMEN’S COMPENSATION ACT 1923 Purpose of the Act: An Act to provide for the payment of certain classes of employers to their workmen of compensation for injury by accident. The workmen’s compensation Act 1923 is one of the earliest pieces of labour legislation. This act encompasses all cases of accidents arising out of and in course of employment.
The rate of Compensation to be paid in a lumpsum is determined by a schedule provided in the act proportionate to the extent of injury and the loss of earning capacity. The younger the age of he worker and higher the wage the greater is the compensation. The Act provides the formula for calculating the compensation. The injured person can claim compensation and in the case of death, the compensation is claimed by dependents of the deceased. This law applies to the organized as well as unorganized sectors that are not covered by the E. S.
I. scheme. The following 34 definitions and the sections of law are presented for the students to take note of them. Administration: The act is administered by the State Governments which appoint Commissioners for this purpose under Sec. 20 of the Act. Benefits: Under the Act, compensation is payable by the employer to 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. If the workman dies, the compensation is to be paid to his dependants.
The Act distinguishes among three types of injuries: permanent total disablement, permanent partial disablement and temporary disablement. The amount of compensation to be paid on the death or disablement of workman is given in Fourth Schedule of the Act and varies according to his wages, the type of injury and age. It is an obligation upon the employer to make the payment of compensation within one month from the date on which it falls due. Sources of Funds: All compensation under the act is payable by the employer.
THE PAYMENT OF WAGES ACT: The Payment of Wages Act was enacted as early as 1936 during the colonial rule. The purpose of this act is to regulate payment of wages. This insists on the payment of wages by the seventh day or the tenth day of the succeeding month and in case of weekly payment the last day of the week. Section 3: Responsibility for payment of wages. – Every employer shall be responsible for the payment to person employed by him of all wages required to be paid under this Act.
Provided that, in the case of persons employed (otherwise than by a contractor) 35 • In factories, if a person has been named as the manager of the factory under clause of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948) • In industrial or other establishments, if there is a person responsible to the employer for the supervision and control of the industrial or other establishments • upon railways (otherwise that in factories), if the employer is the ailway administration and the railway administration has nominated a person in this behalf for the local area concerned, the person so named, the person so responsible to the employer, or the person so nominated, as the case may be (shall also be responsible) for such payment. Section 4: Fixation of wage-periods: • Every person responsible for the payment of wages under section 3 shall fix periods (in this Act referred to as wage-periods) in respect of which such wages shall be payable. • No wage-period shall exceed one month. Section 5: Time of payment of wages. – The wages of every person employed upon or in •
Any railway, factory or {industrial or other establishment} upon or in which less than one thousand persons are employed, shall be paid before the expiry of the seventh day. • Any other railway, factory or {industrial or other establishment}, shall be paid before the expiry of the tenth day, after the last day of the wage-period in respect of which the wages are payable: (2) Where the employment of any person is terminated by or on behalf of the employer, the wages,earned by him shall be paid before the expiry of the second working day from the day on which his employment is terminated. 6 (3) The State Government may, by general or special order, exempt, to such extent and subject to such conditions as may be specified in the order, the person responsible for the payment of wages to persons employed upon any railway (otherwise than in a factory) from the operation of this section in respect of the wages of any such persons or class of such persons. (4) Save as otherwise provided in sub-section (2), all payments of wages shall be ade on a working day. THE EMPLOYEES’ PROVIDENT FUND ACT 1952 The purpose of this Act: An Act to provide for the institution of Provident Funds, pension funds and deposit linked fund for employees in factories and other establishments. Contributions of 10% of the wages are paid by the employer and another 10% by the employees. This amount is deposited with the government which pays an interest. This Act also now has provisions for pension scheme.
Administration: The employees Provident Funds, Pension and Insurance Schemes framed under the Act are administered by a tripartite Central Board of trustee, consisting of representatives of employers and employees and persons nominated by the Central and State Governments. Benefits: The act has made schemes for 3 types of benefits, provident fund, family pension and deposit linked insurance. Family pension is payable to the widow or widower up to the date of death or re-marriage whichever is earlier.
In the absence of the widow or the widower it is payable to the eldest surviving unmarried daughter until she attains the age of 21 years or marries whichever is earlier. The dependents of the employee also receive an additional amount known as the deposit linked insurance which is equivalent to the average balance lying to the credit of the employee on his provident 37 fund during the preceding 3 years, subject to a maximum of Rs 10000 provided that such employee has kept a minimum average balance of Rs. 1000 in the provident fund.
Source of Funds: Here both the employer and the employee are required to contribute the provident fund every month at 8. 33% of the basic wages, dearness allowance and retaining allowance. An employee can make a larger contribution up to 10% but there is no compulsion for the employer to make a matching contribution. THE PAYMENT OF GRATUITY ACT, 1972 Purpose of the Act: An act to provide for scheme for the payment of gratuity to employees engaged in factories, mines, oil fields, plantations, ports, railway companies, shops or other establishments and matters connected therewith or incidental thereto.
Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years. (a) On his superannuation (b) On his retirement or resignation (c) On his death or disablement For every completed year of service or part thereof in excess of six months the employer shall pay gratuity to an employee at the rate of 15 days’ wages based on the rate of wages last drawn by the employee concerned. Section 4: Payment of gratuity. – 38 1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years: (a) On his superannuation, or (b) On his retirement or resignation, or (c) On his death or disablement due to accident or disease; Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement; provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority. 2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days’ wages based on the rate of wages last drawn by the employee concerned; provided that in the case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period of three months immediately preceding the termination of his employment, and, for the purpose, the wages paid for any overtime work shall not be taken into account; provided further that that in the case of {an employee who is employed in a seasonal establishment and who is not so employed throughout the year} the employer shall pay the gratuity at the rate of seven days’ wages for each season. 39 (3) The amount of gratuity payable to an employee shall not exceed {three lakhs and fifty thousand} rupees. (4) For he purpose of computing the gratuity payable to an employee who is employed, after his disablement, on reduced wages, his wages for the period preceding his disablement shall be taken to be the wages received by him during that period, and his wages for the period subsequent to his disablement shall be taken to be the wages as so reduced. (5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer. 6) Notwithstanding anything contained in sub-section (a) The gratuity of an employee, whose services have been terminated for any act, willful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer’ shall be forfeited to the extent of the damage or loss so caused. (b) The gratuity payable to an employee {may be wholly or partially forfeited} (i) If the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or (ii) If the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.
THE MATERNITY BENEFIT ACT, 1961 Purpose of the Act: An Act to regulate the employment of women in certain establishments for certain period before and after child-birth and to provide for maternity benefit and certain other benefits. 40 Section 4: Employment of or work by, women, prohibited during certain periods (1) No employer shall knowingly employ a woman in any establishment during the six weeks immediately following the day of her delivery, (miscarriage or medical termination of pregnancy). (2) No women shall work in any establishment during the six weeks immediately following the day of her delivery (miscarriage or medical termination of pregnancy). 3) Without prejudice to the provisions of section 6, no pregnant women hall, on a request being made by her in his behalf, is required by her employer to do during the period specified in subsection (4) Any work which is of an arduous nature or which involves long hours of standing, or which in any way is likely to interfere with her pregnancy or the normal development of the foetus, or is likely to cause her miscarriage or otherwise to adversely after her health. (4) The period referred to in sub-section (3) shall be (a) The period of one month immediately proceeding the period of six weeks, before the date of her expected delivery; (b) Any period during the said period of six weeks for which the pregnant woman does not avail of leave of absence under section 6.
Section 5: Right to payment of maternity benefits: (1) Subject to the provisions of this Act, every woman shall be entitled to, and her employer shall be liable for, the payment of maternity benefit at the rate of the average daily wage for the period of her actual absence, that is to say, the period immediately preceding the day of her delivery, the actual day of her delivery and any period immediately following that day. 41 (2) No woman shall be entitled to maternity benefit unless she has actually worked in an establishment of the employer from whom she claims maternity benefit, for a period of not less than {eighty days} in the twelve months immediately preceding the date of her expected delivery. Provided that the qualifying period of {eighty days} aforesaid shall not apply to a woman who has immigrated into the State of Assam and was pregnant at the time of the immigration. 3) The maximum period for which any woman shall be entitled to maternity benefit shall be twelve weeks of which not more than six weeks shall precede the date of her expected delivery. Provided that where a woman dies during this period, the maternity benefit shall be payable only for the days up to and including the day of her death ; Provided further that where a woman, having been delivered of a child, dies during her delivery or during the period immediately following the date of her delivery for which she is entitled for the maternity benefit, leaving behind in either case the child, the employer shall be liable for the maternity benefit for that entire period but if the child also dies during the said period, then, for the days up to and including the date of the death of the child.
EMPLOYEES STATE INSURANCE ACT 1948 Purpose of the Act: This Act covers all workers whose wages do not exceed Rs 1600 per month and who are working in factories, other than seasonal factories, run with power and employing 20 or more workers. The coverage can be extended by the State Government with the approval of the Central Government. 42 Administration: The Act is administered by the E. S. I Corporation, an autonomous body consisting of representatives of the Central and State Governments, employers, employees, medical profession and Parliament. Benefits: 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 is entitled to receive the following types of benefits: ? Medical Benefit ? Sickness Benefit ? Maternity Benefit ? Disablement benefit ? Dependant’s Benefit ?
Funeral benefit Sources of Funds: the Act provides for the setting up of the Employees State Insurance fund from the contributors received from employers and employees and various grants, donations and gifts received from Central or State Governments, local authorities and individuals. The rate of employer’s contribution is 5% of the wage bill and that of the employee’s contribution is 2. 25%. 43 VOLUNTARY WELFARE MEASURES: These are some of the voluntary welfare measures given by the employer to the employees. They are as follows: ? Housing facilities ? Transportation facilities ? Medical facilities ? Cultural facilities ? Recreation facilities ?
Consumers co-operative society ? Loans and various advances ? Leave travel concession ? Workers education ? Schools for the employee’s children ? Gifts to the employees holiday games ? Labour welfare fund ? Vehicle stand for parking ? Libraries ? Gym and health club ? Cafeterias 44 CHAPTER 2 RESEARCH DESIGN INTRODUCTION Welfare of the employee is the welfare of the industry. They rise or sink together; the country’s progress is bound up with the progress of industry and of employee. A worker’s wellbeing inside as well as outside the factory is mainly out of employer’s concern, because it has a direct bearing on the efficiency of his work and job satisfaction.
It is the right of the worker as a human being to get the minimum amenities, which in turn contributes to a very large extent towards production efficiency. Employee Welfare is a comprehensive term including various services, benefits and facilities offered to employees by the employer. Welfare measures may also be provided by the government, trade unions and nongovernment agencies in addition to the employer. The welfare amenities are extended in addition to normal wages and other economic rewards available to employees as per the legal provisions. The basic purpose of employee welfare is to enrich the life of employees and keep them happy and contented.
A study of employee welfare would benefit an organisation to improve its productivity. They are also the best kind of investment for employees as they promote industrial efficiency and provide the workers facilities and amenities, which enable the workers employed to perform their work in healthy and congenial climate. STATEMENT OF THE PROBLEM 45 The liberalization, privatization and globalization of Indian economy in the last few years have presented unprecedented challenges to the decision makers in government, industry and service sectors to compete in the global market with competitive edge necessitates the industry to improve its productivity and quality of products.
This objective cannot be achieved unless and until the workers are highly satisfied with the working environment and welfare facilities, which have an important impact in industrial relations. BHEL is very eager to find out whether the present welfare facilities given to the employee is satisfactory and is it affecting their performance in the organization. The study will help them to find out if they are fulfilling the needs of employees and if they are following the legal provisions. Hence, this project is undertaken to know the present welfare facilities at BHEL and an assessment on their performance with reference to the welfare measures adopted and to suggest suitable measures to further enhance them.
Unfortunately workers needs are high but employer’s will and capabilities are low. There should be a balance between the two. In this aspect, not only the statutory provision should be compiled with but the employers must also strive to provide certain voluntary and mutual welfare measures to ensure employee satisfaction. Therefore a study of the statutory, non-statutory and mutual measures provided by the organization and the satisfaction level of employees towards these welfare measures and its impact on job satisfaction, but also to draw suggestions and conclusions which would enable the organization to make improvements in its welfare measure if necessary OBJECTIVES OF THE STUDY 46
In this study an attempt has been made to examine the welfare measures offered by BHEL to its employees and its impact on job satisfaction. The specific objectives of the study are: 1. To assess the welfare measures adopted by BHEL 2. To analyze the effect of welfare on employee performance 3. To assess the employee satisfaction with regard to welfare facilities 4. To make suitable suggestions and recommendations with a view to improve the existing welfare measures. SCOPE OF THE STUDY The scope of the study is to understand the present welfare measures adopted in the organization and how BHEL can enhance the performance of employees by adopting better welfare measures.
The study is extended only to the respondents working in the BHEL, Ramachandrapuram, and Hyderabad. It does not cover all the employees working in BHEL. The study covers only some of the levels in the organization. The welfare measures studied includes both statutory, non-statutory measures and mutual welfare measures. This study also helps the organization to make necessary changes in their welfare programs CHAPTER 3 47 Company Profile THE COMPANY PROFILE Established in the mid fifties, Bharat Heavy Electricals Limited-BHEL has today emerged as the largest engineering and manufacturing enterprise of its kind in India and ranks amongst the top ten power generation equipment manufacturers in the world.
BHEL has diversified its product base over the years and today caters to the needs of almost all the key sectors of the economy. In addition to the power generation equipment , BHEL products cater to a wide spectrum of customers encompassing various fields of operation, like Fertilizers & Petrochemicals,Refineries,Oil Exploration and production, steel and metals, cement ,sugar and paper plants, transportation and non-conventional energy sources etc. With a massive network of 14 manufacturing Units located at various important centers all over India, BHEL manufactures almost all critical high technology products required for power sector like Gas Turbines, Steam Turbines, Turbogenerators, Boilers, Pumps and Heat exchangers, Pulverisers and electrical switch gears.
With strategic alliances and technological collaborations with world leaders for its products, BHEL’s technological strength is today on par with the best in the world 48 BHEL -Hyderabad (Ramachandrapuram) Unit: As a member of the prestigious ‘BHEL family’, BHEL-Hyderabad has earned a reputation as one of its most important manufacturing units, contributing its lion’s share in BHEL Corporation’s overall business operations. The Hyderabad unit was set up in 1963 and started its operations with manufacture of Turbo-generator sets and auxiliaries for 60 and 110 MW thermal utility sets. Over the years it has increased its capacity range and diversified its operations to many other areas.
To day, a wide range of products are manufactured in this unit, catering to the needs of variety of industries like Fertilizers & Chemicals, Petrochemicals & Refineries , Paper, sugar, steel , etc. Major products of our unit’s manufacture include the following. • • • • • • • • • Gas turbines Steam turbines Compressors Turbo generators Heat Exchangers Pumps Pulverisers Switch Gears Gear Boxes & Oil Rigs 49 What it Manufactures? BHEL manufactures over 180 products under 30 major product groups and caters to design, engineering, manufacture, erection and commissioning of boilers, core sectors of the Indian Economy viz. , Power Generation & Transmission, Industry, Transportation, Telecommunication, Renewable Energy, etc.
The wide network of BHEL’s 14 manufacturing divisions, four Power Sector regional centers, over 100 project sites, eight service centers and 18 regional offices, enables the Company to promptly serve its customers and provide them with suitable products, systems and services — efficiently and at competitive prices. The high level of quality & reliability of its products is due to the emphasis on design, engineering and manufacturing to international standards by acquiring and adapting some of the best technologies from leading companies in the world, together with technologies developed in its own R&D centers. As an engineering conglomerate, BHEL offers over a wide spectrum of products and services for core sectors including power generation, transmission and distribution; transportation; and oil and gas as well as the supply of non- conventional energy systems.
BHEL provides customers worldwide with complete Custom- designed Boiler Island Solutions for power and process steam generation covering boiler house auxiliaries and all associated systems and sub-system 50 VISION A World-class Engineering Enterprise Committed to enhancing Stakeholder Value. MISSION To be an Indian Multinational Engineering Enterprise providing Total Business Solutions through Quality Products, Systems and Services in the fields of Energy, Industry, Transportation, Infrastructure and other potential areas. VALUES 1. Zeal to Excel and Zest for Change 2. Integrity and Fairness in all Matters 3. Respect for Dignity and Potential of Individuals 4. Strict Adherence to Commitments 5.
Ensure Speed of Response 6. Foster Learning, Creativity and Team-work 7. Loyalty and Pride in the Company 51 INDUSTRY PROFILE OF BHEL Power B. H. E. L. manufacture a wide range of product and systems for thermal, nuclear, gas and hydro based power paints to meet customer requirement for power generation, transmission, and utilization. B. H. E. L built power generation sets aiready account for nearly two, third of the overall installed capacity in India. Transportation BHEL manufactures a vast range of transmission equipment such as transformers, rectors, switcher and control and relay panel, insulators, capacitors and instruments transformer sets.
Most of the trains operated by Indian Railways, including the metro in Calcutta, are equipped with BHEL’s traction electrics and traction control equipment. The Company supplies electric locomotives to Indian Railways and diesel shunting locomotives to various industries. 5000/4600 hp AC/DC locomotives developed and manufactured by BHEL have been supplied to Indian Railways. Battery-powered road vehicles are also manufactured by the Company. BHEL also supplies traction electrics and traction control equipment for electric locos, diesel-electric locos, and EMUs/DEMUs to the Railways 52 Industries BHEL is a major contributor of equipment & systems to industries; cement, sugar, fertilizers, refineries, petrochemicals, steel, paper, etc.
The range of systems & equipment supplied includes : captive power plants, DG power plants, high-speed industrial drive turbines, industrial boilers and auxiliaries, waste heat recovery boilers, gas turbines, heat exchangers and pressure vessels, centrifugal compressors, electrical machines, pumps, valves, seamless steel tubes and process controls. The Company is a major producer of large-size thirstier devices. It also supplies digital distributed control systems for process industries, and control & instrumentation systems for power plant and industrial applications. BHEL is the only company in India with the capability to make simulators for power plants, defense and other applications. The Company has commenced manufacture of large desalination plants to help augment the supply of drinking water to people Transmission BHEL also supplies a wide range of transmission products and systems of up to 400 kV class.
These include high-voltage power & instrument transformers, dry-type transformers, shunt & series reactors, 33 kV gasinsulated sub-station, insulators. For economic transmission of bulk power over long distances, High Voltage Direct Current (HVDC) systems are supplied. Series and shunt compensation systems, to minimize transmission 53 losses, have also been supplied. Thermal sets with super critical parameters up to 1000 MW unit rating and gas turbine-generator sets of up to 250 MW units rating. Cogeneration & combined-cycles plants have been introduced to achieve higher plant efficiencies. To make efficient use of the high-ashcontent coal available in India, BHEL supplies circulating fluidized bed combustion boilers to both thermal and combined-cycle power plants.
The Company manufactures 235/250 MW nuclear turbine generator sets, and has commenced production of 500 MW nuclear turbine generator sets. In all, Orders for more than 700 utility sets of thermal, hydro, gas and nuclear have been placed on the Company as on date. The power plant equipment manufactured by BHEL is based on contemporary technology comparable to the best in the world, and is also internationally competitive. The Company has proven expertise in Plant performance Improvement through renovation, modernization and updating of a variety of power plant equipment, besides specialized know-how of residual life assessment, health diagnostics and life extension of plants. Oil and gas
BHEL is making significance contribution towards development oil industries in the country in the both for one shore. 54 REVIEW OF LITREATURE I. Using employee volunteering programs to develop leadership skills Author(s): Christine Bell Journal: Development and Learning in Organizations The purpose of the paper was to examine the use of employee volunteering programs to develop leadership skills. During the study it was found that employee volunteering programs provide a potentially rich source of learning for team leaders and other volunteers. Such a strategy can encourage employees to recognize learning opportunities for their own leadership skills. II.
Moving towards a “learning-based organization” Journal: Development and Learning in Organizations The purpose of the paper was to explore employee perceptions of the development of a learning culture in a medium-sized manufacturing company aspiring to become a learning organization. The company was using learning to develop its competitive edge, and employees were at various stages of understanding and accepting the need for learning and competence development on the job to sustain and develop the company. During the study a tension was detected between the company’s objectives and the aspirations of some employees, but the majority appeared to accept the overt learning policy as good for them and the company.
This study contributes towards a better understanding of the perceptions of employees in the development of a learning organization, rather t
