Employee Welfare

Employee welfare means the efforts to

make life
worth living for workmen. According to
Todd
employee welfare means anything done
for the
comfort and improvement, intellectual or
social, of the employees over and above
the wages paid
which is not a necessity of the industry

Features of Employee Welfare

Employee welfare is a comprehensive term
including various services, facilities and
amenities
provided to employees for their betterment.
* The basic purpose in to improve the lot of the
working class.
* Employee welfare is a dynamic concept.
* Employee welfare measures are also known
as
fringe benefits and services.
* Welfare measures may be both voluntary and
statutory

Objectives of Employee Welfare

Employee welfare is in the interest of the employee, the
employer and the society as a whole. The objectives of
employee welfare are: * It helps to improve.
* It improves the loyalty and morale of the employees.
* It reduces labor turnover and absenteeism.
* Welfare measures help to improve the goodwill and
public image of the enterprise.
* It helps to improve industrial relations and industrial
peace.
* It helps to improve employee productivity

Agencies of Employee Welfare

1. Central government: - The central government has made
elaborate provisions for the health, safety and welfare under
Factories Act 1948, and Mines Act 1952. These acts provide for
canteens, crches, rest rooms, shelters etc.

2. State government: - Government in different states and Union

Territories provide welfare facilities to workers. State government
prescribes rules for the welfare of the workers and ensures
compliance with the provisions under various labor laws.

3. Employers: - Employers in India in general looked upon welfare

work as fruitless and barren though some of them indeed had done
pioneering work.

4. Trade unions: - In India, trade unions have done little for the
welfare of workers. But few sound and strong unions have been the
pioneering in this respect. E.g. the Ahmedabad textiles labor
association and the Mazdoor sabha, Kanpur.

5. Other agencies: - Some philanthropic, charitable d social

service
organizations like: - Seva Sadan society, Y.M.C.A., etc

Types of Employee Welfare

* Intramural: - These are provided within the
organization like: 1. Canteen,
2. Rest rooms,
3. Crches,
4. Uniform etc.

* Extramural: - These are provided outside the

organization, like: 1. Housing,
2. Education,
3. Child welfare,
4. Leave travel facilities,
5. Interest free loans,
6. Workers cooperative stores,
7. Vocational guidance etc.

Types of Employee Welfare

Statutory welfare work - comprising the legal provisions in
various pieces of labor legislation.
Voluntary welfare work - includes those activities which are
undertaken by employers for their voluntary work.
Different ways of Social Security Provision in India

1. Social Insurance- common fund is established with

periodical
contribution from workers out of which all benefits in terms of
cash or kind are paid.The employers & state prove major portion of
finances.Benifits shuch as PF, Group Insurance etc are offered.

2. Social Assistance- Benefits are offered to persons of small

means by govt out of its general revenues. Eg- Old age pension

Social Security Employee Welfare

Medical care
- Sickness benefit in cash
- Old age pension or retirement benefit
- Invalidity pension
- Maternity benefit
- Accident benefit
- Survivors benefit

Art 41 0f Indian constitution says that the state shall

within the
limits of its economic capacity & develeopment, make
effective
provision for security , the right to work, to education & to
public
assistance in cases of unemployment, oldage, sickness
&
disablement & in other cases of undeserved want

Philosophy of Employee Welfare

The philosophy of labour welfare activities is
based on the theory that success of industrial
development depends upon harmonious
relations and co-operation between labour
and
management (employer ). The labour has a
fund of knowledge and experience at his
jobs. If
rightly directed and fully used, it would make
a
good contribution to the prosperity of the
organization this can be achieved only
through
the satisfaction of the labour
.

Theories of Employee Welfare

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, without compulsion, employers do
not provide even the minimum facilities for workers

The Religious Theory: This is based on the concept

that man is essentially "a religious animal."
The Philanthropic Theory: This theory is based on
man's love for mankind. Philanthropy means "Loving
mankind.
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.

Theories of Employee Welfare

Placating Theory - 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 thereby step up production.

Role of Management in Employee Welfare

Organizations provide welfare facilities to their employees to
keep
their motivation levels high. The employee welfare schemes
can be
classified into two categories viz. statutory and non-statutory
welfare schemes.
The statutory schemes are those schemes that are
compulsory to
provide by an organization as compliance to the laws
governing
employee health and safety. These include provisions
provided in
industrial acts like Factories Act 1948, Dock Workers Act
(safety,
health and welfare) 1986, Mines Act 1962.
The non statutory schemes differ from organization to
organization
and from industry to industry

Employee Welfare

STATUTORY WELFARE SCHEMES

The statutory welfare schemes include the following provisions:

Drinking Water
Facilities for sitting
First aid appliances
Latrines and Urinals
Canteen facilities
Spittoons
Lighting

NON STATUTORY SCHEMES

Personal Health Care (Regular medical check-ups): Some of the

companies provide the facility for extensive health check-up
Flexi-time: The main objective of the flextime policy is to provide
opportunity to employees to work with flexible working schedules
Employee Assistance Programs: Various assistant programs are
arranged like external counseling service so that employees or
members
of their immediate family can get counseling on various matters.

Impact of Welfare on Productivity

The welfare measures aim at integrating the socio-psychological
needs of employees, the unique requirements of a particular
technology, the structure and processes of the organization and
the
existing socio-cultural environment.

It creates a culture of work commitment in organizations and

society which ensure higher productivity and greater job
satisfaction to the employees.
Due to the welfare measures, the employees feel that the
management is interested in taking care of the employees that
result in the sincerity, commitment and loyalty of the employees
towards the organization.

The employees work with full enthusiasm and energetic behavior

which results in the increase in production and ultimately the
increased profit

I L O & Employee Welfare

ILO was setup in 1919 as a part of League of Nations for
the
promotion of universal peace through social justice.
Important areas of ILO activities & field operations
- Manpower orgn & vocational training
- Migrant workers- need to promote equality of migrant
workers in

all social &labour matters.

-Women workers- protection
- Child workers- against exploitation
- Social Security
-Conditions of work
-Health , safety & welfar

I L Os Employee Welfare
ILO has suggested welfare funds on a collective basis to
finance
activities in small undertakings.
It has adopted a number of convections & recommendations
regarding industrial accidents & occupational health.
New dimension to welfare activities has been provided by
ILOs
contribution to family welfare & population education prog
among
industrial workers in organised sector in India
It has rendered exemplary service to all 3 elements
composing it
govt, employees & workers.
It has greatly influenced labour legislation, labour welfare ,
trade
unionism & Industrial Relations in India