Principles for successful implementation of labour welfare activities

From police theory to functional theory

[Jun. 11, 2007]

Author:
Shobha Mishra and Dr Manju Bhagat (Ph.D. Guide)

Labour welfare activities in an industrialized society has far reaching impact not only on
the work force but also all the facets of human resources. Labour welfare includes all
such activities, which not only secures existential necessities but also ensures
improvement in spiritual and emotional quotient. It comprises of short term and long
terms goal toward building a humane society.

As labour welfare is a dynamic concept, changes in its principles activities and the
rationale supporting them have not been static. They closely follow the stages of
advancement of the industrialized society from police Theory to Functional Theory.
Accordingly principles for successful implementation of labour welfare activities ranges
from adequacy of wages to impact on efficiency as well as transformation of personality
in nut shell, it is extension of democratic values in an industrialized society.

Theories of Labour welfare Activities have been formulated on the conviction that it is
man behind the machine who is responsible for achieving mission of an organization. A
person can deliver at his best only when he is satisfied and committed to the cause. To
keep the employees motivated and committed various welfare facilities are provided by
the organization not only to the employees but also to their family member too.

The term 'Welfare' expresses many ideas, meanings and connotations, such as the
state of well being, health, happiness, prosperity and the development of human
resources. It includes both the social and economic aspects of welfare. The social
concept of welfare implies the welfare of man, his family and his community. All these
three aspects are inter-related and work together. The economic aspect of welfare
covers promotion of economic development by increasing production and productivity.

Welfare is also called a relative concept, for it is related to time and space. Changes in it
have an impact on the system of welfare as well. As welfare is growing and dynamic,
the welfare potential changes, as a result of which its content keeps on varying and has
to keep pace with the changing times. Also the characteristics of welfare vary for it
depends of a nation in all fields. Its meaning and components, therefore, differ from
country to country and from place to place.

The economic welfare activities are such, which can be brought directly or indirectly into
relation with money, Pigou[1] defined economic welfare as that part of social welfare
that can be brought directly or indirectly into relation with the measuring need of money.
According to him, "the economic welfare of a community of a given size is likely to
be greater, the larger is the share that accrues to the poor." However, he admitted
that economic welfare was not the index of total welfare.
The word labour means any productive activity. In a broader sense, therefore the
phrase labour welfare means the adoption of measures to promote the physical, social,
psychological and general well being of the working population. Welfare work in any
industry aims or should aim at improving the working and living conditions of workers
and their families.

The concept of labour welfare activities, however, 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, degree of industrializations
and the general standard of the socio-economic development of a people.

It is also related to the political situation in a country. Further it depends upon the kinds
of problems with which society is confronted as well as on the structure of the industry.
It is molded according to the age group, sex, socio-cultural background, marital status,
economic status and educational level of the employees in various industries.

DEFINITION OF LABOUR WELFARE

Labour welfare has been defined in various ways, though no single definition has found
universal acceptance. The Oxford dictionary defines labour welfare as "Efforts to make
life worth living for workmen." Chambers dictionary defines welfare as "A state of faring
or doing well. Freedom from calamity, enjoyment of health and prosperity[2]".

The Encyclopedia of Social Science defines it as "the voluntary efforts of the employers
to establish, within the existing industrial system, working and sometimes living and
cultural conditions of employees beyond what is required by law, the customs of the
industry and the condition of market"[3].

In the Report II of the ILO Asian Regional conference, it has been stated that worker's
welfare may be understood to mean "such services, facilities and amenities, which may
be established outside or in the vicinity of undertakings, to enable the persons
employed therein to perform their work in healthy and congenial surroundings and to
provide them with the amenities conducive to good health and high morale." [4]

The Labour Investigation committee (1944-46) includes under labour welfare activities
"anything done for the intellectual, physical, moral and economic betterment of the
workers, whether by employers, by government or by other agencies, over and above
what is laid down by law or what is normally expected as per of the contractual benefits
for which the workers may have bargained." [5]

The Report of the Committee on Labour welfare (1969) includes under it "such services,
facilities and amenities as adequate canteens, rest and recreation facilities, sanitary and
medical facilities, arrangements for travel to and from work and for the accommodation
of workers employed at a distance from their homes and such other services, amenities
and facilities including social security measures as contribute to improve the conditions
under which worker are employer." [6]
Thus, the whole field of welfare is said to be one "in which much can be done to combat
the sense of frustration of the industrial workers, to relieve them of personal and family
worries, to improve their health, to afford them means of self expression, to offer them
some sphere in which they can excel others and to help them to a wider conception of
life". [7] It promotes the well-being of workers in variety of ways.

SCOPE OF LABOUR WELFARE ACTIVITIES

Labour welfare Activities is combinations of various steps, the cumulative effect of which
is to grease the wheels of industry and society. Sound industrial relations can only be
based on human relations and good human relations dictate that labour being, human
being should be treated humanly which includes respect for labour dignity, fair dealing
and concern for the human beings physical and social needs. In any industry good
relations between the management and workers depend upon the degree of mutual
confidence, which can be established. This, in turn, depends upon the recognition by
the labour of the goodwill and integrity of the organization in the day to day handling of
questions which are of mutual concern.

The basic needs of a labour are freedom from fear, security of employment and freedom
from want. Adequate food, better health, clothing and housing are human requirements.
The human heart harbors secret pride and invariably responds to courtesy and kindness
just as it revolts to tyranny and fear. An environment where he is contended with his job,
assured of a bright future and provided with his basic needs in life means an
atmosphere of good working condition and satisfaction to labour.

Labour welfare activities are based on the plea that higher productivity requires more
than modern machinery and hard work. It requires co-operative endeavor of both the
parties, labour and management. This is possible only when labour is given due
importance and human element is taken into account at every stage.

The worker has a fund of knowledge and experience at his job. If rightly directed and
fully used, it would make a great contribution to the prosperity of the organization. This
can only be achieved through satisfaction of the labour as the worker feels that he is an
active participant in the production process, and he does at most for increasing the
production and its productivity.

OBJECTIVES OF LABOUR WELFARE ACTIVITIES

The object of welfare activities is to promote economic development by increasing
production and productivity. The underlying principle is to make the workers given their
loyal services ungrudgingly in genuine spirit of co-operation, in return for obligations,
voluntary and compulsory, accepted by the employee towards the general well-being of
the employees.

Improving the efficiency of the labour is another objective of labour welfare activities.
Efficiency gives double reward, one in the form of increased production and the other in
the shape of higher wages due to achievement of higher productivity. Welfare activities
add to their efficiency and efficiency in turn help the worker to earn more wages.
Therefore, welfare activities in an organization are twice blessed. It helps the employer
and the employee both.

Another objective of welfare activities is to secure the labour proper human conditions of
work and living. Working conditions of organization may be led by an artificial
environment which features are dust, fumes, noise, unhealthy temperature, etc. It is
generally found that these conditions impose strain on the body.

The welfare activities are done to minimize the hazardous effect on the life of the
workers and their family members. It is the duty of the employer to see these human
needs. If welfare activities are viewed in this light, it can be seen that they are guided by
purposes of humanitarian and social justice.

The next objective of welfare activities is to add in a real way to the low earning of the
labour. The facilities are provided to supplement the income of the workers by services
such as housing, medical assistance, school, co-operative, canteens, stores, play
grounds etc.

Thus, the objective of activities are to promote greater efficiency of the workers, assure
proper human conditions to the workers and their family members, supplement their
wages in monetary teams, give more real wages and foster better industrial relations.

PHILOSOPHY OF LABOUR WELFARE ACTIVITIES

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.

Efficiency in the matter of running an organization and maintenance of productivity at

rising rate and higher level, call for good labour relations throughout the process of
production. It enables all those engaged in the organization to make their maximum
personal contribution to its effective working.

M. V. Pylee and Simon George has pointed out that "Even one discontented
employee or an employee nursing a grievance can eventually infect an entire
organization with the germ of discontent which, in turn, will result in lower
efficiency, poor morale and reduction in overall production".

The labour welfare activities in the form of health services centers are provided with the
philosophy that a good medical service center will help in ensuring sturdy improvement
of job satisfaction and productivity. A healthy worker is a basic requirement of an
organization.
It is, therefore, incumbent on the part of the employer to look after the health of the
workers and to provide such facilities which would ensure minimum health hazards. The
concerning law prescribes the minimum standard but progressive employer must extend
his activities to protect the health of the labourers and their dependents. In return, their
co-operation will be wholehearted, efficiency will be maximum and attitude will be
proper and congenial.

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, 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:-

1. 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.
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.

2. 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.

3. 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 well-
being. In fact, the labour welfare movement began in the early years of the
industrial revolution with the support of philanthropists.

4. 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.

5. 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.

6. 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.

7. 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. 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 FOR SUCCESSFUL IMPLEMENTATION OF WELFARE 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 :

1. 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.
2. 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.

3. 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.

4. 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.

5. 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.

6. Co-ordination or Integration: This plays an important role in the success of

welfare services. From this angle, a co-ordinated 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.

7. 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.

8. 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.

9. 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.
 10. 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.

Last, but not the least is the fact that labour welfare must aim at helping workers to help
themselves in the long run. This helps them to become more responsible and more
efficient.

PERCEPTIVE OF LABOUR WELFARE ACTIVITIES

The focus on the labour welfare Activities has led to a growing interest by stakeholders
who have started to identify the problem of the labour welfare and formulate their
position. The main stake holders are the enterprises investors, employees, trade urions
and governments. They are, therefore, gradually becoming aware of the potential of
labour welfare activities, albeit from different prospective.

The basic questions in this prospective are the followings:

1. Should labour welfare activities be mandatory for enterprises ?

2. If mandatory should law and/or social organization should regulate the labour
welfare activities?

3. If voluntary, how to secure the interests of the employees at enterprise level ?

OBSERVATION
Industrial development in recent years has resulted in the advent of large enterprises
with large labour force. Obviously, the larger the labour force, the greater are the
potential problems. Besides, the recent trends indicate that the employee can no longer
be viewed as commodity.

The socialistic pattern of society, the advent of invention by the nation and the idea of a
welfare state must & move to the recognition of labour welfare activities. Enterprises
can use the labour in proper direction for maximum utilizations through their satisfaction
which is possible only when labour is satisfied. To keep the employees motivated and
committed various activities are needed.

CONCLUSION
India introduced literal industrial policy which is aimed at stepping up industrial growth
promoting modernization and technological up gradation to make industrial competitive
in both domestic and global market. In this perspective enterprises have to improve their
production and productivity which is possible with the satisfaction of labour.

Even today's scientific development of modern techno- production methods higher

productivity depends on workers. If they are rightly directed and fully used, it would
make a great contribution to the prosperity of the enterprise.
The high rate of labour absenteeism in Indian industries is indicative of the lack of
commitment on the part of the workers. This can be reduced to a great extent by
provision of good housing, health and family care canteens, educational and training
facilities, provision of welfare activities enables the workers to live a richer and more
satisfactory life and contributes to the productivity of labour, efficiency of the enterprise
and helps in maintaining industrial peace. Hence steps need to be taken on a larger
scale to improve the quality of life of the workers.

Acknowledgment
Authors are grateful to Dr. S.K. Mukherjee ,Vice-chancellor B.I.T. Mesra, Ranchi ,India
for providing necessary facilities and encourageneanl to carry out this research-work.

Shobha Mishra Dr. Manju Bhagat

Research Scholar Associate Professor
Department of Management Department of Management
B.I.T. Mesra, Ranchi, B.I.T. Mesra, Ranchi,
Jharkhand , India Jharkhand, India

REFERENCES
1. Encyclopedia of Social Sciences, Vol. XV 1935, p-395.

2. Govt. of India, Ministry of Labour & Employment, Main Report of the Labour
Investigation Committee, Delhi, 1946, p-336.

3. Govt. of India, Report of the Committee on Labour Welfare, Delhi, 1969, p-29.

4. Ibid, p-4.

5. ILO, Asian Regional Conference Report II, 1947, p-3.

6. M. V. Pylee and A. Simon George, Industrial Relations & Personnel Management,

Vikas Publishing House Pvt. Ltd. New Delhi, 1996, p-78.

7. Pigou - Referred by A.M.Sharma, Aspect of Labour Welfare and Social Security,

Himalaya Publishing House, Mumbai 2005, p-1