Employee Welfare of Hr

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INDUSTRY PROFILE

Indian textile industry is one of the oldest industries in the largest in thecountry, 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 value-addition 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 marketsfor 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 4continents. 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

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A BRIEF HISTORYGrasim was incorporated on August 25, 1947, just 10 days after India

became independent, manufacturing textiles made from imported rawmaterials. 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) decidesto demerge its cement business into a separate cement company

(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.

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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), inaccordance 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.

• Merger of Dharani Cements into Grasim.

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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).

1994

• Second issue of GDRs on June 15, 1994 for US $100 million.

Nos: 4,878,048

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1968

• Rayon production commences at Mavoor, Kerala.

1963

• Grasim sets up its first rayon grade pulp plant at Mavoor, Kerala; thefirst 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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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 aswell as the personal interview methods of data collection.

In this project I have used questionnaire and telephonic interview as

primary source.

SECONDARY SOURCES

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.

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STUDY AREA

The study of the topic “Employee Welfare & Social Security” has beenconfined 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 category-

management and Employees at all levels. The sample size of 50 employeesis 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.

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.

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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 knowhow 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

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.

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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.

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 .

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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

• Compensation for Employment Schemes

• Worker’s Pension-Cum-Insurance Schemes

• Compulsory And Voluntary Social Insurance

• Provident Funds Schemes

• Public Health Services

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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 arepresentative 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.

PLAN OF ANALYSIS

Tables were used for the analysis of the collected data. The data is alsoneatly presented with the help of statistical tools such as graphs and pie

charts. Percentages have also been used to represent data clearly and

effectively.

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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

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.

According To ILO

PROVISION OF FACTORIES ACT [1948]REGARDING EMPLOYEE WELFARE

According to Provision Of The Factories Act 1948, Employee welfare

facilities divided into two categories, which are:

Statutory

Voluntary

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Under the Act the following Welfare Facilities are provided

SN Facilities Description Section1 Drinking Water 18

2 Latrines and Urinals 193 Spittoons 204 Washing 425 Storing & Drying Cloths 436 Sitting 447 First Aid Appliances & Ambulance 458 Canteen 469 Shelters, Rest Rooms and Lunch Room 4710 Crèches 48

11 Welfare Officer 49

STATUTORYStatutory 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.

∗ CleanlinessUnder 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 General Shift, Offices, Canteen,

Outside

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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

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 madetherefore.

∗ Lighting

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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

∗ 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.

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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

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

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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 sufficientsupply 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

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.

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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

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

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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.

∗ Intervals For RestThe 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

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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 LEGISLATIONIN 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, 19232) 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

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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 CentralGovernment notifies in its officials Gazette. The Act does not apply to co-

operative societies employing less then 50 persons.

Administration

Tripartite Central Board of Trustees represented by Employers, Employeesand the Government administers the Act.

% Of What

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Basic Pay + DA + Cash Value Of Any Food Concession

Upto a maximum of Rs. 65,00 only.

Contribution

Description Employees EmployersEPF 12% of Wages

10% of Wages in caseless then 20 persons.

12% of Wages10% of Wages in caseless then 20 persons.

PENSION 8.33% of EmployeeShare. CentralGovernment tocontribute 1.16%

NIL

DEPOSIT LINK INSURANCE

1% 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.

Administration

The State Government administers the Act by appointing Commissioners for

this purpose under Section 20.

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The Act has categorized the injuries in the following manner and the

calculation of compensation there under

TYPE OF INJURY EXAMPLE COMPENSATION Total Disablement

a) Temporary Fracture in both handsor legs

25% of monthly wages paid fortnightly tillrecovery

b) Permanent Amputation of bothhands or legs or loss of vision in both eyes

60% of monthly wagesor Rs. 90,000 whichever is more.

Partial Disablement

a) Temporary Fracture in both handsor legs

Upto 3 days nil. Beyond3 days 25% of monthlywages paid fortnightlytill recovery

b) Permanent Permanent Amputationof both hands or legs or

loss of vision in botheyes

50% of monthly wagesor Rs. 80,000 whichever

is more.

∗ 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

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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

g) Medical Bonus

Role Of ESI Corporation

To provide for the various benefits listed under the Act.

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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

CoverageThe 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 co-

operative societies employing less then 50 persons.

Administration

Tripartite Central Board of Trustees represented by Employers, Employees

and the Government administers the Act.

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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

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.

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Periods Under The Maternity Benefit Act

6 Weeks After delivery/miscarriage/MTP

Prohibited fromwork or to work

By employer or woman

1 Month Period to 6weeks beforeEDD

On arduouswork/ continuosstanding

By employer

Not . 6 Weeks Before EDD Leave with

wages

At maternity rate

Total 12Weeks

Before and after delivery

Leave withwages

At maternity rate

6 Weeks After miscarriage/MTP

Leave withwages

At maternity rate

2 Weeks Tubectomyoperation

Leave withwages

At maternity rate

1 Month Illness due to

pregnancymiscarriage/MTP/ premature

birth/ tubectomy

Leave with

wages subject tap production of certificate

At maternity rate

Two Break InA Day

Nursing Till child is a 12month, Rs.250,Medical Bonus

Those entitled tomaternity

benefit_Provideno pre natal or

post natal

∗ The Payment of Gratuity Act, 1972.

Coverage

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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 ServiceThe 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.

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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.

Eligibility

Minimum 30 days working in the year.

Minimum Bonus

8.33% of annual salary or wages.

Maximum Bonus

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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

Allocable Surplus is 60% of Available Surplus

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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.

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 = OpportunitiesT = Threats

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STRENGTHStrength 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.

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.

40



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.

The scope of the study was limited to the verbal Interviews andGuidelines.

Time to conduct the study was less and as a result research could not

be as comprehensive as required.

41



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.

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.

42



THREATS

The threats are also external factors and influenced any object externally.

The threats related to my training topic are:

The company has not linked Gratuity Act with LIC as, which deprivethem of enjoying benefits of LIC Schemes whereas its competitors

provided this facility to their workers, hence company should think

about it.

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.

43



QUESTIONNAIRE FOR MANAGEMENT

Q1. To what extent are the Company’s operating philosophy andculture understood by employees?

Analysis

56%(14)employees strongly agree that they get welfare facilities from

company.

28%(7) employees only agree.

44

56%28%

4%

12%

Strongly Agree

Agree

StronglyDisagree

Disagree



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 asparticipative?

Analysis

48%( 12) strongly agree that company’s overall management style is

participative.

40% (10) of the employees only agreed

45

48%

40%

4%

8%Strongly Agree

Agree

S trongly Disag

Disagree



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 towardsemployee’s satisfaction ?

Analysis

48% (12) employees strongly agree that managers work hard toward

employee’s satisfaction.

46

48%

36%

12% 4% Strongly Agree

Agree

Strongly Disagre

Disagree



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 “Humanresource planning is well integrated with strategic planning in ourcompany”.

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.

47

52%32%

12% 4% Strongly Agree

Agree

Strongly Disagree

Disagree



4% (1) employees disagreed about this.

Q5. Are the Employee welfare & social security facilities extended tocontract workers too?

Analysis:

This chart depicts, the management gives Employee welfare & socialsecurities facilities to contract workers

• 68% (17) members of management are saying yes regarding thesefacilities to contract workers

48

68%

32%

y es

no



• 32% (8) members of management are saying no regarding thesefacilities to contract workers

Q6. Is there any canteen management committee in your organization ?

Analysis:

This chart depicts the recognition of canteen management committee

72% (18) of the members of management voted for yes regardingthese facilities.

49

72%

28%

y es

no



28% (7) of the members of management voted for no regarding thesefacilities.

Q7. Is there any Ambulance Room or Ambulance Van in theorganization ?

Analysis:This chart shows the recognition of facilities of Ambulance Room or Ambulance Van in the organisation.

50

88%

12%

yes

no





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.

Q9. What are the major goals/objectives of your organization?

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.

52

Surival &Growth

36%

Profitability

28%

AnyOther 12%

EfficiencyIn The

Level Of Service

24%



12% (3) believed that the goal of the organization is other than the

specified above.

Q10. Are you satisfied with your current job profile?

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..

53

Satisfied48%

VerySatisfied

20%

Unsatisfied8%

Not SoSatisfied

24%



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 1Cleanliness 15 8 2 - - -Ventilation & Temperature 10 8 4 2 1 -Spittoons 12 6 6 1 - -Lighting 12 8 5 - - -

54



Drinking Water 13 6 4 2 - -

AnalysisQ2. Mark your satisfaction level with regard to following

parameters related to safety in your department. (6 is best and

1 is worst)

Parameters 6 5 4 3 2 1

Fire Protection 8 4 6 3 2 2Hoists and Lifts 9 6 3 7 - -Self-Acting Machine 4 3 4 3 6 5

Analysis

55

02468

1012141618

6 5 4 3 2 1

Clean liness

Ventilation &TemperatureSpittoons

Lighting

DrinkingWater



01

23

45

67

89

6 5 4 3 2 1

F ir e P r o t e

H o is t s a n d

S e lf - A c t inM a c h i n e

Q3. Mark your satisfaction level with regard to following parameters

related to welfare in your department. (6 is best and 1 is worst)

Parameters 6 5 4 3 2 1Facility for Storing & Drying

Clothes

12 6 3 4 - -

Rest Room 14 8 3 - - -First Aid/Medical Service 17 4 4 - - -Canteen 18 7 2 1 - -

Analysis

56









Q6. Does your organization provides medical benefits apart

ESI?

Analysis:

This chart depicts, the management gives Medical benefits as apart of ESIfacility to workers

• 84% (21) members of management are saying yes regarding these

facilities to workers.

• 16% (4) members of management are saying no regarding thesefacilities to workers.

Q7. Are you satisfied with the present job profile?

60

Yes84%

No16%





Q8. Are the methods used to give you welfare schemes are

genuine?

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 .

62

Once In

While20%

SomeTime16%

Most Of The time

48%

Never 16%



Q9. How do you rate your organization?

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.

63

Good24%

Average4%

Excellent28%

Very Good44%



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.

64



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 yearscontinuous 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 whoare 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.

65



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.

66



Workers are also happy with the medical benefits provided by the

company.

Workers are also satisfied by the loan facility provided by thecompany

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.

67



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.

68



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?



Q3. Do the managers in the Company work towards employee’s

satisfaction?



69



Q4. To what extent do you agree with the following statement “Human

resource planning is well integrated with strategic planning in our

company”.A Strongly agree Agree


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


Q9. What are the major goals/objectives of your organization?

A Profitability Survival & Growth

Efficiency Any Other

70



Q10. Are you satisfied with your current job profile?

A Satisfied Very Satisfied

Not So Satisfied Dissatisfied

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 1CleanlinessVentilation & TemperatureSpittoonsLightingDrinking 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 6 5 4 3 2 1Fire ProtectionHoists and LiftsSelf-Acting Machine

Q3. Mark your satisfaction level with regard to following parameters

related to welfare in your department. (6 is best and 1 is worst)

Parameters 6 5 4 3 2 1

71



Facility for Storing & Drying

ClothesRest RoomFirst Aid/Medical ServiceCanteen

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

72



BIBLIOGRAPHY

BOOKS AND JOURNALS

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

http://www.wikipedia./

http://www.google.com/

http://www.wikipedia./

http://www.google.com/

Documents

Employee Welfare of Hr