“A STUDY ON EFFECTIVENESS OF EMPLOYEE

WELFARE MEASURES AT STEELMAX ALLOYS LTD,

THILLANKAD, PALAKKAD”

PROJECT REPORT

Submitted to

University of Calicut

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

JEFFY T MATHEW

(REG NO: ADARMBA019)

4th Semester MBA

(2017-2019)

Under the guidance of

Mr. VARUN KESAVAN

(Associate professor)

Chathamkulam Institute of Research and Advanced Studies

Kanjikode Palakkad
JUNE 2019
 CERTIFICATE

This is to certify that the project report entitled “A STUDY ON

EFFECTIVENESS OF EMPLOYEE WELFARE MEASURES AT STEELMAX
ALLOYS LTD, THILLANKAD, PALAKKAD” submitted to Calicut University, in
partial fulfillment of the requirements for the award of Master of Business
Administration is a Bonafede work done by JEFFY T MATHEW (ADARMBA019)
during of the study 2017-19 in Chathamkulam Institute of Research and Advanced
Studies, Kanjikode, Palakkad.

Date:

Project Guide

Internal Examiner External examiner

Signature of the principal

 DECLARATION

I hereby declare that the project “A STUDY ON EFFECTIVENESS OF

EMPLOYEE WELFARE MEASURES AT STEELMAX ALLOYS LTD,
THILLANKAD, PALAKKAD” submitted to Calicut university in partial fulfillment
of the requirements for the award of the degree of master of business administration is
a record of original project work done by me under the guidance of and supervision of
Mr. Varun kesavan Associate Professor of Chathamkulam Institute of Research and
advanced studies Kanjikode Palakkad. This report has not formed the part of any
other project work submitted for award any degree or diploma, either in this or any
other university.

Date: JEFFY T MATHEW

Place: (REG.NO. ADARMBA019)
 ACKNOWLEDGEMENT

I submitted this report titled “A STUDY ON EFFECTIVENESS OF EMPLOYEE

WELFARE MEASURES AT STEELMAX ALLOYS LTD” with immense
gratitude towards all those who have helped me in various ways in this humble
endeavor.

I express my gratitude to Mr. Aneesh Biju, Principal of Chathamkulam Institute of

Research and Advanced Studies, Kanjikode, Palakkad for giving valuable suggestion
for the completion of the project work.

I express my sincere thanks and gratitude to my guide Mr. Varun Kesavan for giving
me proper guidance, moral support and encouragement to carry out the project.

I am grateful to the management of STEELMAX ALLOYS LTD, THILLANKAD,

PALAKKAD for permitting to do project. I extend my sincere thanks to Miss.
REJANI PREMRAJ for supporting me during my project tenure.

I also express my sincere thanks to my friends and parents who helped me for the
completion of my work and provide love and encouragement for doing this work.

JEFFY T MATHEW
 ABSTRACT

The project is based on welfare facilities. The subject of the study was “A STUDY
ON EFFECTIVENESS OF EMPLOYEE WELFARE MEASURES AT
STEELMAX ALLOYS LTD”.
The research was conducted for the employees of the organization. Research
methodology is a way to systematically solve the research problem. Research has
been conducted to access the satisfaction level of employees. The primary data was
collected through questionnaire. From a total of 200 employees, 120 samples were
taken into consideration. The secondary data was collected through website and
records of the organization.
Simple percentage test was used to render the data collected. The findings
reveal that most of the employees are satisfied with the provision of welfare facilities.
But still appropriate suggestions are given by the researcher to the organization to
improve welfare facilities to the employees.
 TABLE OF CONTENT

Chapter Title Page No.

No.
1. INTRODUCTION
1.1 Introduction to the study 1
1.2 Industry Profile 16
1.3 Company Profile 34
1
1.4 Research Problem 40
1.5 Objective of Study 41
1.6 Research Methodology 42
1.7 Scope of Study 46
1.8 Need For the study 47
1.9 Limitation 48
1.10 Chapter scheme 49

2 2. REVIEW OF LITERATURE
50
2.1 Conceptual Framework
57

3 3. DATA ANALYSIS AND INTERPRETATION 69

4.1 FINDINGS 98
4 4.2 SUGGESTION 99
4.3 CONCLUSION 100
APPENDIX
BIBLIOGRAPHY
 LIST OF TABLES
Table Title Page
No No
1 TABLE SHOWING AGE CLASSIFICATION 69
2 TABLE SHOWING GENDER WISE CLASSIFICATION 70
3 TABLE SHOWING MARTIAL STATUS 71
4 TABLE SHOWING INCOME WISE CLASSIFICATION 72
5 TABLE SHOWING EXPERIENCE WISE CLASSIFICATION 73
6 TABLE SHOWING CLEANLINESS IN STEELMAX ALLOYS 74
7 TABLE SHOWING INCREMENT SYSTEM IN STEELMAX 75
ALLOYS
8 TABLE SHOWING WHETHER WORKING CONDITION 76
INFLUENCE MOTIVATION
9 TABLE SHOWING COMFORTABLE WORK SHIFT TIMING 77
10 TABLE SHOWING LOANS AND ALLOWANCE FOR THE 78
FAMILY GIVEN BY STEELMAX ALLOYS
11 TABLE SHOWING WORKING CONDITION AND NATURE 79
OF THE JOB
12 TABLE SHOWING COMMUNICATION AND MOTIVATION 81

13 TABLE SHOWING TRAINING PROGRAM AND 83

PERFORMANCE APPRAISAL SYSTEM

14 TABLE SHOWING PAY AND PROMOTION 85

15 TABLE SHOWING WELFARE FACILITY 87

16 TABLE SHOWING JOB SECURITY 89

17 TABLE SHOWING MANAGEMENT STYLE AND 91
GRIEVANCE HANDLING
18 TABLE SHOWING JOB FACTORS 93
19 TABLE SHOWING VALUES FOR CHI-SQUARE TEST 95
20 TABLE SHOWING COMPUTATION OF CHI-SQUARE TEST 96
21 TABLE SHOWING COMPUTATION OF CORRELATION 97
LIST OF CHARTS
Table Title Page
No No
1 CHART SHOWING AGE CLASSIFICATION 69
2 CHART SHOWING GENDER WISE CLASSIFICATION 70
3 CHART SHOWING MARTIAL STATUS 71
4 CHART SHOWING INCOME WISE CLASSIFICATION 72
5 CHART SHOWING EXPERIENCE WISE CLASSIFICATION 73
6 CHART SHOWING CLEANLINESS IN STEELMAX ALLOYS 74
7 CHART SHOWING INCREMENT SYSTEM IN STEELMAX 75
ALLOYS
8 CHART SHOWING WHETHER WORKING CONDITION 76
INFLUENCE MOTIVATION
9 CHART SHOWING COMFORCHART WORK SHIFT TIMING 77

10 CHART SHOWING LOANS AND ALLOWANCE FOR THE 78

FAMILY GIVEN BY STEELMAX ALLOYS
11 CHART SHOWING WORKING CONDITION AND NATURE 80
OF THE JOB
12 CHART SHOWING COMMUNICATION AND MOTIVATION 81

13 CHART SHOWING TRAINING PROGRAM AND 84

PERFORMANCE APPRAISAL SYSTEM
14 CHART SHOWING PAY AND PROMOTION 86
15 CHART SHOWING WELFARE FACILITY 88

16 CHART SHOWING JOB SECURITY 90

17 CHART SHOWING MANAGEMENT STYLE AND 92
GRIEVANCE HANDLING
18 CHART SHOWING JOB FACTORS 94
 CHAPTER-I
INTRODUCTION
 1.1. INTRODUCTION

1.1. Definition:
Labour welfare has been defined in various ways, though unfortunately no single
definition has found universal acceptance. The Oxford Dictionary defines labor
welfare as “efforts to make life worth living for worker” Chamber’s Dictionary
defines welfare as “a state of faring or doing well; freedom from calamity, enjoyment
of health, prosperity.”
The ILO report refers to labor welfare as “and congenial surroundings
and provided with amenities conducive to such services, facilities, and amenities,
which may be established in, or in the vicinity of undertakings to enable persons
employed therein to perform their work in healthy good health and high morale”

WELFARE MEASURES
Employee welfare defines as “efforts to make life worth living for
workmen”. These efforts have their origin either in some statute formed by the state
or in some local customs in collective agreement or in the employer’s own initiative.
 To give expression to philanthropic and paternalistic feelings.
 To win over employee’s loyalty and increase their morale.
 To combat trade unionism and socialist ideas.
 To build up stable labour force, to reduce labor turnover and absenteeism.
 To develop efficiency and productivity among workers.
 To save oneself from heavy taxes on surplus profits.
 To earn goodwill and enhance public image.
 To reduce the threat of further government intervention.
 To make recruitment more effective (because these benefits add to job
appeal).

PRINCIPLES OF EMPLOYEE WELFARE SERVICE

Following are generally given as the principles to be followed in setting up a

employee welfare service:

1
  The service should satisfy real needs of the workers. This means that the
manager must first determine what the employee’s real needs are with the
active participation of workers.
 The service should such as can be handled by cafeteria approach.  Due to
the difference in Sex, age, marital status, number of children, type of job
and the income level of employees there are large differences in their
choice of a particular benefit.  This is known as the cafeteria approach. 
Such an approach individualizes the benefit system though it may be
difficult to operate and administer.
 The employer should not assume a benevolent posture.
 The cost of the service should be calculated and its financing established
on a sound basis.
 There should be periodical assessment or evaluation of the service and
necessary timely on the basis of feedback.

TYPES OF WELFARE MEASURES SERVICES:

¯     Safety Services

Prevention of accidents is an objective which requires o explanation. 

The costs of accidents are enormous in suffering to the injured, in reduction or

loss of earnings, in disabilities and incapacities which afflict those involved and in
compensation, insurance and legal costs, in lost time, filling in reports and attending
to enquiries, and in spoilage of materials, equipment and tools to management.

Accidents are the consequence of two basic factors:  technical and human. 
Technical factors include all engineering deficiencies, related to plant, tools material
and general work environment.  Thus, for example, improper lighting, inadequate
ventilation, poor machine guarding and careless housekeeping are some hazards
which may cause accidents.  Human factors include all unsafe acts on the part of
employees.  An unsafe act is usually the result of carelessness.

2
 Young and new employees, because of their difficulty in adjusting to the work
situation and to life in general, also have many more accidents than do old and nature
workers.

 The Phenomenon of Accident Proneness: 

Some persons believe wrongly in the theory that certain individuals are
accident prone, that is, they have some personality trait as opposed to some
characteristic of the environment which predisposes them to have more accidents than
others in work condition where the risk of hazards is equal to all.

COMPONENTS OF A SAFETY SERVICE

Among the many components of a safety service the following have proved
effective when applied in combination.

 Appointment of safety officer

In big organizations, the appointment of a safety officer to health and

the safety department is a must. In small organizations, the personnel manager
may look after the functions of this department.  The head of the safety
department, who is usually a staff man, is granted power to inspect the plant
for unsafe condition, to promote sound safety practices (through posters an d
safety campaigns), to make safety rules, and to report violations to the plant
manager.

 Support by line management

The head of the safety department, whether enjoying a staff or

afunctional position, by himself, cannot make a plan safe. His appointment
lulls line management into assuming that all its safety problems have been
solved.

 Elimination of hazards

Although complete elimination of all hazards is virtually an

impossibility but following steps can be taken to help reduce them:
3
 Job safety analysis

All job procedures and practices should be analysed by an expert to

discover hazards. He should then suggest changes in their motion patterns,
sequence and the like.

 Placement

A poorly placed employee is more apt to incur injury than a properly

placed employee.  Employees should be placed on jobs only after carefully
estimating and considering the job requirements with those which the
individual apparently possesses.

 Personal protective equipment

Endless variety of personal safety equipment is available nowadays

which can be used to prevent injury. 

 Safeguarding machinery

Guards must be securely fixed to all power-driven machinery.

 Materials handling

Though often ignored, the careless handling of heavy and inflammable

materials is an important source of several injuries and fire.

 Hand tools

Minor injuries often result from improperly using a good tool or using
a poorly designed tool.  Therefore, close supervision and instruction should be
given to the employees on the proper tool to use the proper use of the tool.

 Safety training, education and publicity

4
 Safety training is concerned with developing safety skills, whereas
safety education is concerned with increasing contest programmes, Safety
campaigns, suggestion awards, and various audiovisual aids can be considered
as different forms of employee education.

 Safety inspection

An inspection by a trained individual or a committee to detect evidence

of possible safety hazards (such as poor lighting, slippery floors, unguarded
machines, faulty electrical installations, poor work methods and disregard of
safety rules) is a very effective device to promote safety.

 Health services:

The prevention of accident constitutes only on segment of the function of

employee maintenance.  Another equally important segment is the employee’s general
health, both physical and mental.

            There are two aspects of industrial health services

1. Preventive
2. Curative, the former consists of
3. pre-employment and periodic medical examination,
4. removal or reduction of health hazards to the maximum extent possible,
5. Surveillance over certain classes of workers such as women, young
persons and persons exposed to special risks.

Counseling services:

An employee very often comes across problems which have emotional

content.  For example, he may be nearing retirement and feeling insecure or he may
be getting promotion and feeling hesitant to shoulder increased responsibility or he
may be worried due to some family problem.

5
EMPLOYEE WELFARE IN INDIA:

The chapter on the Directive Principles of State Policy in our Constitution

expresses the need for labor welfare thus:

1. 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.
2. The State shall, in particular, direct its policy towards securing:
3. That the citizens, men and women equally, have the right to an adequate
means of livelihood;
4. That the ownership and control of the material resources are so distributed
as to sub-serve the common good.
5. The State shall make provision for securing just and humane conditions of
work and for maternity relief.

 Factories Act, 1948:

The principal Act to provide for various labor welfare measures in India is the
Factories Act, 1948. The Act applies to all establishments employing 10 or more
workers where power is used and 20 or more workers where power is not used, and
where a manufacturing process is being carried on.

 Employee Welfare Officer:

Section 49 of the factories act provides that in every factory wherein 500 or more
workers are ordinarily employed the employer shall appoint at least one welfare
officer.

The welfare officer should possess; (i) an university degree; (ii) degree or
diploma in social service or social work or social welfare from a recognized
institution; and (iii) adequate knowledge of the language spoken by the majority of
the workers in the area where the factory is situated.

 Supervision
 Counseling workers

6
  Advising management
 Establishing liaison with workers
 Working with management and workers to improve productivity.
 Working with outside public to secure proper enforcement of various acts.

 Health of Employees:

 Cleanliness: Every factory shall be kept clean by daily sweeping or

washing the floors and work rooms and by using disinfectant where
necessary.
 Disposal of wastes and effluents: Effective arrangements shall be made
for the disposal of wastes and for making them innocuous.
 Ventilation and temperature: Effective arrangements shall be made for
ventilation and temperature so as to provide comfort to the workers and
prevent injury to their health.
 Dust and fume: Effective measures shall be taken to prevent the
inhalation and accumulation of dust and fumes or other impurities at the
work place.
 Artificial humidification: The State Government shall make rules
prescribing standard of humidification and methods to be adopted for this
purpose.
 Overcrowding: There shall be in every work room of a factory in
existence on the date of commencement of this act at least 9.9cubic meters
and of a factory built after the commencement of this act at least 4.2 cubic
meters of space for every employee.
 Lighting: The State Government may prescribe standards of sufficient
and suitable lighting.
 Drinking Water: There shall be effective arrangement for wholesome
drinking water for workers at convenient points.
 Latrines and urinals:  There shall be sufficient number of latrines and
urinals, clean, well-ventilated, conveniently situated and built according to
prescribed standards separately for male and female workers.
 Spittoons: There shall be sufficient number of spittoons placed at
convenient places in the factory.

7
 Safety of Employees:

 Fencing of machinery:  All dangerous and moving parts of a machinery

shall be securely fenced.  Screws, bolts and teeth shall be completely
encased to prevent danger.
 Work on or near machinery in motion:  Lubrication or other adjusting
operation on a moving machinery shall be done only by a specially trained
adult male worker.
 Employment of young persons on dangerous machines:  No young
person shall be allowed to work on any dangerous machine (so prescribed
by the state government) unless he is sufficiently trained or is working
under the supervision of knowledgeable person.
 Device for cutting off power:  Suitable device for cutting of power in
emergencies shall be provided.
 Hoists and lifts:  These shall be made of good material and strength,
thoroughly examined at least once in every six months and suitably
protected to prevent any person or thing from being trapped.

 Welfare of Employees:

            Chapter V of the factories Act contains provisions about the welfare of
employees. These are as follows:

 There shall be separate and adequately screened washing facilities for the
use of male and female employees.
 There shall be suitable places provided for clothing not worn during
working hours and for the dying of wet clothing.
 There shall be suitable arrangement for all workers to sit for taking rest if
they are obliged to work in a standing position.
 There shall be provided the required number of first-aid boxes or cupboard
(at the rate of one for every 150 workers) equipped with the prescribed
contents readily available during the working hours of the factory.
 The State Government may make rules requiring that in any specified
factory employing more than 250 employees a canteen shall be provided
and maintained by the occupier for the use of the welfare measures.

8
  There shall be provided sufficiently lighted and ventilated lunch room if
the number of employees ordinarily employed is more than 150.

Restrictions in the factories act on the employment of young

persons:

1.      Prohibition as to employment of children (Section 67)

No child who has not completed his fourteenth year shall be required or
allowed to work in any factory.

2.      Employment of Children and Adolescent (Section 68)

A child who has completed his fourteenth year or an adolescent shall not
be required or allowed to work in any factory unless following conditions are
fulfilled:

1. The manager of the factory has obtained a certificate of fitness granted to such
young
2. While at work, such child or adolescent carries a token giving reference to
such certificate.

3.      Certificate of fitness (Section 69)

Before a young person is employed in the factory, a certifying surgeon has to

certify that such person is fit for that work in the factory.

Welfare Funds

In order to provide welfare facilities to the workers employed in mica, iron, ore,
manganese ore and chrome ore, limestone and dolomite mines and in the beedi
industry, the welfare funds have been established to supplement the efforts of the
employers and the State Government under respective enactments.

The welfare measures financed out of the funds relate to development of

medical facilities, housing, supply of drinking water, support for education of
dependents and recreation, etc.

9
Voluntary Benefits

Benefits are also given voluntarily to workers by some progressive

employers.  These include loans for purchasing houses and for educating children,
leave travel concession, fair price shops for essential commodities and loans to buy
personal conveyance.

Machinery Connected with employee welfare work:

1.      Chief inspector of Factories

It is the duty of the Chief inspector of factories (who generally works

under the administrative control of the labor commissioner in each state) to
ensure enforcement of various provisions of Factories Act i8n respect of
safety, health and welfare of workers.

2.      Central Labor Institute

The institute was set up in Bombay in 1966 to facilitate the proper

implementation of the Factories Act, 1948; to provide a centre of information
for inspectors, employers, workers and others concerned with the well being
of industrial labor and to stimulate interest in the application of the principles
of industrial safety, health and welfare.

3.      National Safety Council

The National Safety Council was wet up on 4th March, 1966 in

Bombay at the initiative of the Union Ministry of Labor and Rehabilitation,
Government of India, as an autonomous national body with the objective of
generating developing and sustaining a movement of safety awareness at the
national level.

4.      Director General of Mines Safety

The Director General of Mines Safety enforces the Mines Act, 1952. 
He inspects electrical installation and machinery provided in the mines and

10
 determines the thickness of barriers of 2 adjacent mines in order to prevent
spread of fire and danger of inundation.

Appraisal of Welfare Services:

1. One of the main obstacles in the effective enforcement of the welfare

provisions of the Factories Act has been the quantitative and qualitative
inadequacy of the inspection staff.
2. At present, a labor welfare officer is not able to enforce laws independently
because he has to work under the pressure of management.
3. Women workers do not make use of the crèche facilities either because they
are dissuaded by the management to bring their children with them or because
they have to face transport difficulties.

 National Commission on Employee Recommendations:

1. The statutory provisions on safety are adequate for the time being effective
enforcement is the current need.
2. Every fatal accident should thoroughly be enquired into and given wide
publicity among workers.
3. Employers should play a more concerted role in safety and accident
prevention programme and in arousing safety consciousness.
4. Safety should become a habit with the employers and workers instead of
remaining a mere ritual as at present.
5. Unions should take at least as much interest in safety promotion as they take in
claims for higher wages.

SOCIAL SECURITY:

The connotation of the term “Social Security” varies form country to country
with different political ideologies.  In socialist countries, the avowed goal is complete
protection to every citizen form the cradle to the grave.

           There are some components of Social Security:

 Medical care

11
  Sickness benefit
 Unemployment benefit
 Old-age benefit
 Employment injury benefit
 Family benefit
 Maternity benefit
 Invalidity benefit and
 Survivor’s benefit

 Social Securities may be of two types:

1. Social assistance under which the State finances the entire cost of the facilities
and benefits provided.
2. Social insurance, under the State organizes the facilities financed by
contributions form the workers and employers, with or without a subsidy from
the state.

SOCIAL SECURITY IN INDIA:

At present both types of social security schemes are in vogue in our country. 
Among the social assistance schemes are the most important.

The social insurance method, which has gained much wider acceptance than
the social assistance method, consists of the following enactments.

 The workmen’s Compensation Act, 1961.

 The Employee’s State Insurance Act, 1948.
 The Maternity Benefit Act, 1961.

1. Employees’ compensation Act, 1923:

a. Coverage.  This Act covers all workers employed in factories, mines,

plantations, transport undertakings, construction works, railways, ships, circus and
other hazardous occupations specified in schedule II of the Act.

12
 The Act empowers the State Government to extend the coverage of the Act by
adding any hazardous occupation to the list of such occupations is schedule II.

1. Administration.  The Act is administered by the State Government

which appoints Commissioners for this purpose under sec. 20 of
the Act.
2. Benefits.  Under the Act, compensation is payable by the employer
to a 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.  

2. Employees’ State Insurance Act, 1948:

Other than seasonal factories, run with power and employing 20 or more
workers.
1. Administration.  The Act is administered by the ESI Corporation, an
autonomous body consisting of representatives of the Central and State
Governments, employers, employees, medical profession and parliament.
2. Benefits.  The Act, which provides for a system of compulsory insurance, is a
landmark in the history of social security legislation in India.
a. Medical Benefit.  An insured person or (where medical benefit bas
been extended to his family) a member of his family who requires
medical treatment is entitled to receive medical benefit free of charge.
b. Sickness Benefit.  An insured person, when he is sick, is also entitled
to get sickness benefit at the standard benefit rate corresponding to his
average daily wage.
An insured woman is entitled to receive maternity benefit (which
is twice the sickness benefit rate) for all days on which she does not
work for remaining during a period of 12 weeks of which not more than
6 weeks shall precede the expected date of confinement.
The Act makes a three-fold classification of injuries in the same
way as is done in the workmen’s compensation Act.
c. Dependant’s Benefit.  If an insured person meets with an accident in
the course of his employment an die as a result thereof, his dependants,

13
 i.e. his widow, legitimate or adopted sons and legitimate unmarried
daughters get this benefit.

3. The Maternity Benefit Act, 1961

Maternity benefit is one of the important benefits provided under the

Employees State Insurance Act, 1948.  Another important legislation in this
respect is the Maternity Benefit Act, 1961.  The Act covers only those persons
who are not covered by the Employees State Insurance Act.  The Act entitles a
woman employee to claim maternity leave from her employer if she has
actually worked for a period of at least 160 days in the 12 months immediately
proceeding the day of her expected delivery.

The act further provides for the payment of medical bonus of Rs.250 to
the confined woman worker.

The committee on the status of women in India 1974 has, there fore,
recommended the following changes in the Act:

1. The administration of the fund should follow the pattern already

established by the ESIC.
2. For casual labor a minimum of 3 months of service should be
considered as qualification service for this benefit.
3. This will provide greater incentive to women workers to participate
in trade union activities.

4.      The Payment of Gratuity Act, 1972

1. Coverage.  The Act applies to every factory, mine, oilfield, plantation,

port and Railway Company and to every shop or establishment in
which 10 or more persons are employed, or were employed, on any
day of the preceding 12 months.
2. Administration.  The Act is administered by a controlling authority
appointed by the appropriate Government.
3. Benefits.  Under the Act gratuity is payable to an employee on the
termination of his employment after he has rendered continuous

14
 service for not less than five years.  The completion of continuous
service of five years is, how ever, not necessary where the termination
of the employment is due to death or disablement. Gratuity is payable
at the rate of 15 days’ wages based on the rate of wages last drawn by
the employee for every complete year of service or part thereof in
excess of six months.  But the amount of gratuity payable to an
employee shall not exceed Rs.3.5 lakh.
4. Source of Funds.  Under the Act gratuity is payable entirely by the
Employer.  For this purpose, is required either (i) to obtain insurance
with the Life Insurance Corporation, or (ii) to establish a gratuity
fund. Thus, it is his liability to pay the premium in the first case to
make the contribution in the second case.

15
 1.2 INDUSTRY PROFILE

Steel is crucial to the development of any modern economy and is

considered to be the backbone of human civilization. The level of per capita
consumption of steel is treated as an important index of the level of socioeconomic
development and living standards of the people in any country. It is a product of a
large and technologically complex industry having strong forward and backward
linkages in terms of material flows and income generation.
All major industrial economies are characterized by the existence of
a strong steel industry and the growth of many of these economies has been largely
shaped by the strength of their steel industries in their initial stages of development.
Steel industry was in the vanguard in the liberalization of the industrial Sector and has
made rapid strides since then. The new Greenfield plants represent the latest in
technology. Output has increased, the industry has moved up i n the value chain and
exports have raised consequent to a greater integration with the global economy.
The new plants have also brought about a greater regional dispersion
easing the domestic supply position notably in the western region. At the same time,
the domestic steel industry faces new challenges. Some of these relate to the trade
barriers in developed markets and certain structural problems of the domestic industry
notably due to the high cost of commissioning of new projects. The domestic demand
too has not improved to significant levels. The litmus test of the steel industry will be
to surmount these difficulties and remain globally competitive.

HISTORY OF STEEL

Steel was discovered by the Chinese under the reign of Han dynasty in 202
BC till 220 AD. Prior to steel, iron was a very popular metal and it was used all over
the globe. Even the time period of around 2 to 3 thousand years before Christ is
termed as Iron Age as iron was vastly used in that period in each and every part of
life. But, with the change in time and technology, people were able to find an even
stronger and harder material than iron that was steel.
Using iron had some disadvantages but this alloy of iron and carbon
fulfilled all that iron could not do. The Chinese people invented steel as it was harder
than iron and it could serve better if it is used in making weapons. One legend says

16
that the sword of the first Han emperor was made of steel only. From China, the
process of making steel from iron spread to its south and reached India. High quality
steel was being produced in southern India in as early as 300 BC.
Most of the steel then was exported from Asia only. Around 9th century
AD, the smiths in the Middle East developed techniques to produce sharp and flexible
steel 26 blades. In the 17th century, smiths in Europe came to know about a new
process of cementation to produce steel. Also, other new and improved technologies
were gradually developed and steel soon became the key factor on which most of the
economies of the world started depending.

THE GLOBAL STEEL INDUSTRY

The current global steel industry is in its best position in comparing to last
decades. The price has been rising continuously. The demand expectations for steel
products are rapidly growing for coming years. The shares of steel industries are also
in a high pace. The steel industry is enjoying its 6th consecutive years of growth in
supply and demand.
And there is many more merger and acquisitions which overall buoyed the
industry and showed some good results. The supreme crisis has led to the recession in
economy of different countries, which may lead to have a negative effect on whole
steel industry in coming years. However steel production and consumption will be
supported by continuous economic growth.

CONTRIBUTION OF COUNTRIES TO GLOBAL STEEL INDUSTRY:

The countries like China, Japan, India and South Korea are in the top of the above
in steel production in Asian countries. China accounts for one third of total production
i.e. 419m ton, Japan accounts for 9% i.e. 118 m ton, India accounts for 53m ton and
South Korea is accounted for 49m ton, which all totally becomes more than 50% of
global production. Apart from this USA, BRAZIL, UK accounts for the major chunk
of the whole growth.

STEEL INDUSTRY IN INDIA

Steel has been the key material with which the world has reached to a
developed position. All the engineering machines, mechanical tools and most
17
importantly building and construction structures like bars, rods, channels, wires,
angles etc are made of steel for its feature being hard and adaptable. Earlier when the
alloy of steel was not discovered, iron was used for the said purposes but iron is
usually prone to rust and is not so strong. Steel is a highly wanted alloy over the
world. All the countries need steel for the infrastructural development and overall
growth.
Steel has a variety of grades i.e. above 2000 but is mainly categorized in
divisions – steel flat and steel long, depending on the shape of steel manufactured.
Steel flat includes steel products in flat, plate, sheet or strip shapes. The plate shaped
steel products are usually 10 to 200 mm and thin rolled strip products are of 1 to 10
mm in dimension. Steel flat is mostly used in construction, shipbuilding, pipes and
boiler applications. Steel long Category includes steel products in long, bar or rod
shape like reinforced rods made of sponge iron. The steel long products are required
to produce concrete, blocks, bars, tools, gears and engineering products. After
independence, successive governments placed great emphasis on the development of
an Indian steel industry. In Financial Year 1991, the six major plants, of which five
were in the public sector, produced 10 million tons.
The rest of India steel production, 4.7 million tons, came from 180 small
plants, almost all of which were in the private sector. India's Steel production more
than doubled during the 1980s but still did not meet the demand in the mid-1990s, the
government was seeking private-sector investment in new steel plants. Production
was projected to increase substantially as the result of plans to set up a 1-million-ton
steel plant and three pig iron plants totaling 600,000 tons capacity in West Bengal,
with Chinese technical assistance and financial investment. The commissioning of
Tata Iron & Steel Company's production unit at Jamshedpur, Bihar in 1911-12
heralded the beginning of modern steel industry in India.

DEMAND OF STEEL IN INDIA

Driven a booming economy and concomitant demand levels, consumption of

steel has grown by 12.5 per cent during the last three years, well above the 6.9 percent
envisaged in the National Steel Policy. Steel consumption amounted to 58.45 mt in
2006-07 compared to 50.27 mt in 2005-06, recording a growth rate of 16.3 per cent,

18
which is higher than the world average. During the first half of the current year, steel
consumption has grown by 16 per cent.
A study done by the Credit Suisse Group says that India's steel
consumption will continue to grow by 17 per cent annually till 2012, fuelled by
demand for construction projects worth US$ 1 trillion. The scope for raising the total
consumption of steel in the country is huge, as the per capita steel consumption is
only 35 kg compared to 150 kg in the world and 250 kg in China. With this surge in
demand level, steel producers have been reporting encouraging results. For example,
the top six companies, which account for 70 percent of the total production capacity,
have recorded a year-on-year growth rate of 13.4 per cent, 15.7 per cent and 11.7 per
cent in net sales, operating profit and net profit, respectively, during the second
quarter of 2007-08 We expect strong demand growth in India over the next five years,
driven by a boom in construction (43%-plus of steel demand in India). Soaring
demand by sectors like infrastructure, real estate and automobiles, at home and
abroad, has put India's steel industry on the world steel map.

SUPPLY OF STEEL IN THE INDIAN MARKET

Over the past ten years India‘s crude steel output rose nearly 7%per year to
55.3 million tons, while global crude steel output increased by 4% (Germany
managed an increase of just under 1%p.a.) Although India is the world ‘s eighth
largest steel producer, its3%-plus share of global steel output is still very low; it is
roughly the same as Ukraine ‘s share of world steel production. China, the world‘s
biggest steelmaker, produces nearly ten times as much as India. In 2005 India‘s crude
steel output of 46.5 million tons was 8%higher than in 2004; only in China was the
growth rate considerably higher at 15%. By contrast, production volumes fell in the
US and the EU-25 by nearly 5% and roughly 4% respectively. In the first five months
of 2006 Indian steel production continued to expand unabated, rising 10% YOY.
We forecast a significant increase in output by the Indian steel industry
over the medium term. The entire industry ‘s contribution to gross domestic product
should rise in the coming years to more than 30% – compared to just fewer than 27%
at present. The growth drivers are the expanding client industries automotive
engineering (production up 16% p.a. between 2000 and 2005), mechanical
engineering (up 10% p.a.) and construction (up 6% p.a.).

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RECENT FINACIAL CRISIS OF INDIAN STEEL INDUSTRY:

We have witnessed in last few months, the unfolding of financial crises

starting from United States and expanding world over. The exact magnitude and
extent of the crises is fiercely debated among the financial experts. However, this real
impact on economy can easily be observed across many, if not all sectors. The steel
industry has not been spared with the impacts of the financial crises. The total market
valuation of Marcelo Metal, Nippon steel and JEE has dropped by approx $165
billion. The price of billet in Dubai market has dropped from its height of $125/ton in
June 2008 to a recent low of $350 /ton. One of the steepest drops witnessed in recent
history.
The wide spread drop in demand for all types of steel required companies to
cut production globally. Marcelo Metal, one of the largest steel producers, alone has
recently announced more than 30% reduction in production. It is only human to be
frustrated and uncertain of the future. However, over long term, do we really need to
be? We explored the steel production data going back to 1900 during last 100 years
the worst drop (13.52%) in steel industry accrued between1979-82. This four year
drop in global steel production is horrendous. However, if we look at year over year
growth changes in steel industry during a 100-year period from 1900 to 2000 a more
optimistic picture emerges. There is not even one instance when industry saw a
consecutive four year of negative year over year growth. The worst-case situation is
three years of declining year over year growth during 1930-32, 1944-46, and 1980-82.
Extending the past patterns of data to predict future is fraught with
peril. It is none the less an important reminder to us that during tumultuous 100-year
period the steel industry has been able to successfully weather world wars, recession
and crises of all the genre. Steel is a resilient industry. It is not to say that the current
financial crises should not be taken seriously. It should be however, if history holds
the chances the impact of current crises extending beyond 2009 are low.

RISK FACTORS:

Even though India is now one of the world’s top ten steelmakers its domestic output is
insufficient to meet the demand in all segments. In 2005, some 4.7 million tons of
steel were imported, compared with only 2.2 million ten years earlier (an annual

20
increase of 8%). The growth in Indian import demand in 2005 of around 2 million
tons is roughly equivalent to the total annual output of Hungary. Low steel prices
smooth the way for imports from Russia, Ukraine and Kazakhstan. The geographical
proximity of Japan, South Korea and China makes them important suppliers as well.
We do not expect India to be self-sufficient in many segments over the medium term.
There are several reasons for this: firstly, steel consumption is rising very fast as a
consequence of the prospective dynamic economic growth. Secondly, there is demand
for high-quality products which India will not be able to supply in sufficient quantities
for the foreseeable future. These include products with surface finishing that helps
them to be more durable and retain their value for longer. In general, the trend
towards weight-optimized components persists; this improves the prospects for
Western European exporters in the Indian market. As a member of the WTO (since
1995) India is obliged to gradually abolish import restrictions, so importing steel
should be far less problematic in future.

PRODUCTION FUNCTION AND INPUTS:

Production of a product (or a set of products) is generally based on a

technological relationship—amounts of certain factors of production (inputs) are
converted into a product based on some technological constraints. The technological
relationship is termed by economists as the "production function." In more technical
terms, the production function can be defined as the function that shows the most
output that existing technology permits the manufacturing firm to extract from each
quantity of inputs. The production function thus summarizes the characteristics of
existing technology at a given time. For example, Suppose Better Steel Corporation
decides to produce a certain quantity of steel. It can do so in many different ways. It
can choose from among available technological choices: it can use open- hearth
furnaces, basic oxygen furnaces, or 2electric furnaces. Similarly, Better Steel
Corporation can choose from various types of iron ore and coal.
Given that Better Steel has decided to produce a certain quantity of steel,
which production technique will it use; that is, what particular combination of inputs
will it decide on? An economist's answer to this question is: the one that minimizes
the firm's costs and maximizes its profits. Given that a technology has been chosen, in

21
general, as inputs used in the production of a commodity increase the total output
increases as well. It is useful to understand different kinds of inputs.

FIXED AND VARIABLE INPUTS:

Primarily, there are two kinds of inputs—fixed and variable. A plant and a
factory shed are examples of fixed inputs (or factors) of production. These inputs are
called "fixed" inputs as the quantities needed of these inputs remain fixed, up to point,
as the quantity produced of the product (the output) increases. Using the steel industry
as an example, a blast furnace used in producing steel is considered a fixed input—
Better Steel Corporation can produce more steel by using more raw materials, and get
more production out of the existing blast furnace. It should be noted that fixed input
does remain fixed for all levels of output produced.
As the scale of production increases, the existing plant may no longer
suffice. Suppose that the blast furnace chosen by the steel firm can, at the very
maximum, produce 100,000 tons of steel per day. If Better Steel Corporation needs to
supply 150,000 tons of steel per day (on average), it has to add to capacity—that is, it
has to install a new blast furnace. Thus, even a "fixed input" does not remain fixed
forever. The period over which a fixed input remains fixed is called the "short run."
Over the "long run," even a fixed input varies. Inputs that vary even in the short run
are called "variable" inputs. In the above example of steel manufacturing, iron ore
serves as a variable input. Given the fixed input (the blast furnace in this case),
increasing the quantity of the variable input (iron ore) leads to higher levels of output
(steel). For a manufacturing firm, it is not important what combination of fixed and
variable inputs is used. As a firm is interested in maximizing profits, it would like to
minimize costs for any given level of output produced. Thus, costs associated with
inputs (both fixed and variable) are the main concern of the firm engaged in the
production of a particular commodity.

TOTAL AND AVERAGE COSTS:

A manufacturing firm, motivated by profit maximization, calculates the total

cost of producing any given output level. The total cost is made up of total fixed cost
(due to the expenditure on fixed inputs) and total variable cost (due to the expenditure
on variable inputs). Of course, the total fixed cost does not vary over the short run—

22
only the total variable cost does. It is important for the firm also to calculate the cost
per unit of output, called the "average cost." The average cost also is made up of two
components—the average fixed cost (the total fixed cost divided by the number of
units of the output) and the average variable cost (the total variable cost divided by
the number of units of the output). As the fixed costs remain fixed over the short run,
the average fixed cost declines as the level of production increases.

The average variable cost, on the other hand, first decreases and then
increases—economists refer to this as the U-shaped nature of the average variable
cost. The U-shape of the average variable cost (curve) occurs because, given the fixed
inputs, output of the relevant product increases more than proportionately as the levels
of variable inputs used increase—this is caused by increased efficiency due to
specialization and other reasons. As more and more variable inputs are used in
conjunction with the given fixed inputs, however, efficiency gains reach a maximum
—the decline in the average variable cost eventually comes to a halt. After this point,
the average variable cost starts increasing as the level of production continues to
increase, given the fixed inputs. First decreasing and then increasing average variable
cost leads to the U-shape for the average variable cost (curve). The combination of the
declining average fixed cost (true for the entire range of production) and the U-shaped
average variable cost results in the U-shaped behavior of the average total cost
(curve), often simply called the average costs.

AVERAGE COST AND ECONOMIES OF SCALE:

Economies of scale are defined in terms of the average cost per unit of
output produced. When the average cost is declining, the producer of the product
under consideration is reaping efficiency gains due to economies of scale. So long as
the average cost of production is declining the firm has an obvious advantage in
increasing the output level (provided, there is demand for the product). Ideally, the
firm would like to be at the minimum average cost point. However, in the short run,
the firm may have to produce at an output level that is higher than the one that yields
the minimum average total cost.
When a firm has to add to production capacity in the long run, this
may be done by either duplicating an existing fixed input (for instance, a plant) or

23
increasing the size of the plant. Usually, as the plant size increases, a firm is able to
achieve a new minimum average cost point (lower than the minimum average cost
achieved with the previous smaller capacity) plant. For example, in the case of Better
Steel Corporation, the average cost per ton of steel at the minimum average cost point
with the larger blast furnace may be 20 percent less than the average cost at the
minimum average cost point with smaller blast furnace.
Thus, in the long run, a firm may keep switching to larger and larger
plants, successively reducing the average cost. One should, however, be warned that
due to technological constraints the average cost is assumed to start rising at some
output level even in the long run—that is, the average cost curve is U-shaped even in
the long run. Therefore, while looking at the average cost per unit of output is the key
to understanding economies of scale, it is useful to remember that the average cost
declines up to a point in the short run, and it may decline even more in the long run
(also up to a point), as higher and higher levels of output are produced.

ECONOMIES OF SCALE AND INTERNATIONAL TRADE:

Participating in foreign trade is considered an important way to reap

advantages of unrealized potential of economies of scale. Usually, foreign trade is
based on specialization— each country specializing in production of goods and
services in which it has the comparative advantage. With the possibility of the
benefits from economies of scale, there are advantages in engaging in specialization
and foreign trade even if there is no difference among countries with respect to the
economic efficiency with which they produce goods and services. As an example,
suppose that a country may experience economies of scale in producing a particular
commodity (for instance, steel).
However, this country is producing this commodity at such a low output
level that the average cost per unit of the output is high. Due to the high average cost
it does not have the comparative advantage in exporting this product to foreign
countries. Now, assume that this country specializes in production of this commodity
and exports to another country. The other country does the same—it specializes in the
production of another product (say, aluminums) and exports to the first country. Thus,
the first country specializes in the production of steel and the second country
specializes in the production of aluminums. If economies of scale exist in steel and

24
aluminum industries, firms can serve the combined markets of both countries and
supply both goods at lower prices (assuming some of the advantages of lower costs
are passed on) than if they only reach their respective domestic markets.
This is a major argument for an international economic association such as
the European Common Market. In addition to the pure economies of scale in
production, there are "economies of scale" in learning associated with specialization
in the foreign trade context. In this the average cost per unit goes down as economic
efficiencies increase due to learning. In the aircraft and machine tool industries,
manufacturers are well aware of reductions in average costs due to learning.

MAJOR PLAYERS OF STEEL IN INDIA

1. Public Sector
(A) Steel Authority of India Limited (SAIL)
Steel Authority of India Limited (SAIL) is a company registered under the
Indian Companies Act, 1956 and is an enterprise of the Government of India. It has
five integrated steel plants at Bhilai (Chattisgarh), Rourkela (Orissa), Durgapur (West
Bengal), Bokaro (Jharkhand) and Burnpur (West Bengal). SAIL has three special and
alloy steel plants viz. Alloy Steels Plant at Durgapur (West Bengal), Salem Steel Plant
at Salem (Tamilnadu) and Visvesvaraya Iron & Steel Plant at Bhadravati (Karnataka).
In addition, a Ferro Alloy producing plant Maharashtra Elektrosmelt Ltd. at
Chandrapur, is a subsidiary of SAIL. SAIL has Research & Development Centre for
Iron & Steel (RDCIS), Centre for Engineering & Technology (CET), SAIL Safety
Organization (SSO) and Management Training Institute (MTI) all located at Ranchi;
Central Coal Supply Organization (CCSO) at Dhanbad; Raw Materials Division
(RMD), Environment Management Division (EMD) and Growth Division (GD) at
Kolkata. The Central Marketing Organization (CMO), with its headquarters at
Kolkata, coordinates the country-wide marketing and distribution network.

(B) Rashtriya Ispat Nigam Ltd. (RINL)

RINL, the corporate entity of Visakhapatnmam Steel Plant (VSP) is the
first shore based integrated steel plant located at Visakhapatnam in Andhra Pradesh.
The plant was commissioned in August 1992 with a capacity to produce 3 million
tonne per annum (mtpa) of liquid steel. The plant has been built to match international
25
standards in design and engineering with state-of- the- art technology incorporating
extensive energy saving and pollution control measures. Right from the year of its
integrated operation, VSP established its presence both in the domestic and
international markets with its superior quality of products. The company has been
awarded all the three International standards certificates, namely, ISO 9001:2000, ISO
14001: 1996 and OHSAS 18001: 1999. RINL was accorded the prestigious ‗Mini
Ratna‘ status by the Ministry of Steel, Govt. of India in the year 2006 and the
company is gearing up to complete the ambitious expansion works to increase the
capacity to 6.3 mtpa by 2009. RINL has prepared a road map to expand the plant‘s
capacity up to 16 mtpa in phases.

(C) Metal Scrap Trade Corporation Ltd. (MSTC)

MSTC Ltd. (formerly Metal Scrap Trade Corporation Ltd.) was set up
on the 9th September, 1964 as a canalizing agency for the export of scrap from the
country. With the passage of time, the company emerged as the canalizing agency for
the import of scrap into the country. Import of scrap was de-canalized by the
Government in 1991-92 and MSTC has since then moved on to marketing ferrous and
miscellaneous scrap arising out of steel plants and other industries and importing
Coal, Coke, Petroleum products, semi-finished steel products like HR Coils and
export primarily Iron ore. The Company has also established an e-auction portal and
undertakes e-auction of Coal, Diamonds and Steel Scrap and has developed an
eprocurement portal in house.

(D) Ferro Scrap Nigam Ltd. (FSNL)

FSNL is a wholly owned subsidiary of MSTC Ltd. with a paid up capital of
Rs. 200 lakh. The Company undertakes the recovery and processing of scrap from
slag and refuse dumps in the nine steel plants at Rourkela, Burnpur, Bhilai, Bokaro,
Visakhapatnam, Durgapur, Dolvi, Duburi & Raigarh. The scrap recovered is returned
to the steel plants for recycling/ disposal and the Company is paid processing charges
on the quantity recovered at varying rates depending on the category of scrap. Scrap is
generated during Iron & Steel making and also in the Rolling Mills. In addition, the
Company is also providing Steel Mill Services such as Scarfing of Slabs, Handling of
BOF Slag, etc.

26
(E) Hindustan Steelworks Construction Ltd. (HSCL)
HSCL was incorporated in June 1964 with the primary objective of
creating in the Public Sector an organization capable of undertaking complete
construction of modern integrated Steel Plants. HSCL had done the construction work
of Bokaro Steel Plant, Vizag Steel Plant and Salem Steel Plant from the inception till
commissioning and was associated with the expansion and modernization of Bhilai
Steel Plant, Durgapur Steel Plant, IISCO (Burnpur) and also Bhadravati Steel Plant.
With the tapering of construction activities in Steel Plants, the company intensified its
activities in other sectors like Power, Coal, Oil and Gas. Besides this, HSCL
diversified in Infrastructure Sectors like Roads/Highways, Bridges, Dams,
Underground Communication and Transport system and Industrial and Township
Complexes involving high degree of planning, co-ordination and modern
sophisticated techniques.
The company has developed its expertise in the areas of Piling, Soil
investigation, Massive foundation work, High rise structures, Structural fabrication
and Erection, Refractory, Technological structures and Pipelines, Equipment erection,
Instrumentation including testing and commissioning. The company has also
specialized in carrying out Capital repairs and Rebuilding work including hot repairs
of Coke Ovens and Blast Furnaces and other allied areas of Integrated Steel Plants.

(F) MECON LTD.

MECON is one of the leading multi-disciplinary design, engineering,
consultancy and contracting organization in the field of iron & steel, chemicals,
refineries & petrochemicals, power, roads & highways, railways, water management,
ports & harbors, gas & oil, pipelines, nonferrous, mining, general engineering,
environmental engineering and other related/ diversified areas with extensive overseas
experience. MECON, an ISO: 9001- 2000 accredited company, registered with World
Bank (WB), Asian Development Bank (ADB), European Bank for Reconstruction and
Development (EBRD), African Development Bank (AFDB), and United Nations
Industrial Development Organization (UNIDO), has wide exposure and infrastructure
for carrying out engineering, consultancy and project management services for mega
projects encompassing architecture & town planning, civil works, structural works,
electric, air conditioning & refrigeration, instrumentation, utilities, material handling
& storage, computerization etc. MECON has collaboration agreements with leading
27
firms from the USA, Germany, France, Italy, Russia, etc. in various fields. The
authorized share capital of the company is Rs. 10,400 lakh (previous year Rs. 4,100
lakh) against which the paid up capital is Rs. 10,313.84 lakh (previous year Rs.
4,013.84 lakh). All the shares are held by the Government of India.

2. Private Sector
The private sector of the Steel Industry is currently playing an important
and dominant role in production and growth of steel industry in the country. Private
sector steel players have contributed nearly 67% of total steel production of 38.08
million tonnes to the country during the period April-December, 2007. The private
sector units consist of both major steel producers on one hand and relatively smaller
and medium units such as Sponge iron plants, Mini Blast Furnace units, Electric Arc
Furnaces, Induction Furnaces, Rerolling Mills, Coldrolling Mills and Coating units on
the other. They not only play an important role in production of primary and
secondary steel, but also contribute substantial value addition in terms of quality,
innovation and cost effective.

(A)TATA STEEL LTD.

Tata Steel has an integrated steel plant, with an annual crude steel making
capacity of 5 million tonnes located at Jamshedpur, Jharkhand. Tata Steel has
completed the first six months of fiscal 2007-08 with impressive increase in its hot
metal production. The hot metal production at 2.76 million tonnes is 4.6%more
compared to the corresponding period of the previous year. The crude steel
production during the period was 2.43 million tonnes which is marginally lower than
the production of 2.45 million tonnes last year. The saleable steel production was at a
lower level during the period April September, 2007 (2.34 million tonnes) compared
to the corresponding period of last year (2.36 million tonnes).
Tata Steel is continuing with its programme of expansion of steel making
capacity by 1.8 million tonnes to reach a rated capacity of 6.8 million tonnes. The
Project is reported to be moving ahead of schedule and is likely to be commissioned
by May 2008 against the original schedule of June 2008. The Company has planned
to take the capacity to 10 million tonnes by the fiscal year 2010. Tata Steel‘s
Greenfield projects in Orissa and Chattisgarh are progressing on schedule with
placement of equipment order for Kalinganagar Project in Orissa and commencement
28
of the land acquisition process. Jharkhand Project is awaiting announcement of Relief
& Rehabilitation policy of the State Government.

(B)ESSAR STEEL LTD.

Essar Steel Holdings Ltd. (ESHL) is a global producer of steel with a
footprint covering India, Canada, USA, the Middle East and Asia. It is a fully
integrated flat carbon steel manufacturer—from iron ore to ready-to-market products.
ESHL has a current global capacity of 8 million tonnes per annum (MTPA). With its
aggressive expansion plans in India and other parts of Asia and North America, its
capacity is likely to go up to 25 MTPA by 44 2012. Its products find wide acceptance
in highly discerning consumer sectors, such as automotive, white goods, construction,
engineering and shipbuilding. Essar Steel Ltd., the Indian Company of Essar Steel
Holdings Limited, is the largest steel producer in western India, with a current
capacity of 4.6 MTPA at Hazira, Gujarat, and plans to increase this to 8.5 MTPA.
The Indian operations also include an 8 MTPA beneficiation plant at
Bailadilla, Chattisgarh which has world‘s largest slurry pipeline of 267 km to
transport beneficiated Iron Slurry to the pellet plant, and an 8 MTPA pellet complex
at Visakhapatnam. The Essar Steel Complex at Hazira in Gujarat, India, houses the
world‘s largest gas-based single location sponge iron plant, with a capacity of 4.6
MTPA. The complex also houses the steel plant and the 1.4 MTPA cold rolling
complexes. The steel complex has a complete infrastructure setup, including a captive
port, lime plant and oxygen plant. Essar Steel produces highly customized value-
added products catering to a variety of product segments and is India‘s largest
exporter of flat products, selling close to half of its production to the highly
demanding US and European markets, and to the growing markets of South East Asia
and the Middle East. The company‘s products conform to quality specifications of
international quality certification agencies, like ABS, API, TUV Rhine Land and
Lloyd‘s Register.
Essar Steel is the first Indian steel company to receive an ISO 9001 and
ISO 14001 certification for environment management practices. Essar Steel utilizes
Hot Briquetted Iron-Direct Reduced Iron (HBIDRI) technology supplied by Midrex
Technology, USA along with four 150 tonnes DC electric arc furnaces imported from
Clecim, France. The Hazira unit of Essar Steel is equipped with 5.5 million tonnes per
annum (MTPA) hot briquetted iron plant, 4.6 MTPA electric are furnace, 4.6 MTPA
29
continuous caster, 3.6 MTPA hot strip mill and 1.4 MTPA Cold Rolling Mill. During
the year 2007-08, Essar was awarded costs ISO/TS 16949 and OHSAS 18000
certification.

(C) JSW STEEL LTD.

JSW Steel is a 3.8 MTPA integrated steel plant, having a process route
consisting broadly of Iron Ore Beneficiation – Pelletisation – Sintering – Coke
making – Iron making through Blast Furnace as well as Corex process – Steel making
through : BOF- Continuous Casting of slabs – Hot Strip Rolling – Cold Rolling Mills.
JSW Steel has a distinction of being certified for ISO-9001:2000 Quality
Management System, ISO-14001:2004 Environment Management System and
OHSAS 18001:1999 Occupational Health and Safety Management System. The
capacity as on 1.11.2007 stood at 3.8 MTPA and the capacity is likely to rise to 6.8
MTPA by 2008, and further to 9.6 MTPA by 2010.

(D) JINDAL STEEL & POWER LTD.

(JSPL) Jindal Steel & Power Limited is one of the fast growing major steel
units in the country. The Raigarh plant of JSPL has a present capacity of 1.37 million
tonne per annum (MTPA) sponge iron plant, 2.40 MTPA Steel Melting Shop (SMS),
1.0 MTPA plant Mill, 2.30 sinter plant, 0.8 MTPA coke oven and a 330 Mega Watt
captive power plant. During the year 2006-07, the company produced 1.19 million
tonnes of sponge iron, 0.8 million tonnes of various steel products, 0.57 million
tonnes of hot metal and 0.21 million tonnes of rolled products. The performance of
JSPL during AprilOctober 2007-08 was 0.68 million tonnes of sponge iron, 0.72
million tonnes of steel products (slabs/blooms/billets/rounds), 0.68 million tonnes of
hot metal, 0.27 million tonnes of rolled products and 0.11 million tonnes of plates.

( E) ISPAT INDUSTRIES LTD. (IIL)

IIL has set up one of the largest integrated steel plants in the private sector
in India at Dolvi in Raigad District, Maharashtra with a capacity to manufacture 3
million tonnes per annum of hot rolled steel coils (HRC). The Dolvi complex also
boasts of an ultra modern blast furnace (setup by a group company Ispat Metallics
India Ltd.) capable of producing 2.0 million tonnes per annum of Hot Metal/ Pig Iron,
a 2.0 million tonnes capacity Sinter Plant (newly commissioned) and a DRI plant with
30
a capacity of 1.6 million tons per annum. The complex boast of an ultra-modern
captive jetty which meets the plants ‘requirement with regard to import of various raw
material. In the coming years, after augmenting necessary infrastructure facility, it has
planned to export the goods from the captive jetty. Further, the complex envisages
adding a 110 MW captive power plant (which will use the Blast Furnace gas) in near
future.
The integrated steel plant is using the converter-cum-electric arc furnace route
(CONARC process) for producing steel. In this project, IIL have uniquely combined
the usage of hot metal and DRI (sponge iron) in the electric arc furnace for production
of liquid steel for the first time in India. For casting and rolling of liquid steel, IIL has
the state-of-the art technology called compact strip production (CSP) process, which
was installed for the first time in India and produces high quality and specifically very
thin gauges of Hot Rolled Coils.

FACTORS HOLDING BACK THE INDIAN STEEL INDUSTRY

The growth of the Indian steel industry and its share of global crude steel
production could be even higher if they were not being held back by major
deficiencies in fundamental areas. Investment in infrastructure is rising appreciably
but remains well below the target levels set by the government due to financing
problems.

1. Energy supply
Power shortages hamper production at many locations. Since 2001 the Indian
government has been endeavoring to ensure that power is available nationwide by
2012. The deficiencies have prompted many firms with heavier energy demands to
opt for producing electricity with their own industrial generators. India will rely
squarely on nuclear energy for its future power generation requirements. In September
2005 the 15th and largest nuclear reactor to date went on-line. The nuclear share of
the energy mix is likely to rise to roughly 25% by 2050. Overall, India is likely to be
the world‘s fourth largest energy consumer by 2010 after the US, China and Japan.

2. Problems procuring raw material inputs

Since domestic raw material sources are insufficient to supply the Indian steel
industry, a considerable amount of raw materials has to be imported. For example,
31
iron ore deposits are finite and there are problems in mining sufficient amounts of it.
India‘s hard coal deposits are of low quality. For this reason hard coal imports have
increased in the last five years by a total of 40% to nearly 30 million tons. Almost half
of this is coking coal (the remainder is power station coal). India is the world‘s sixth
biggest coal importer. The rising output of electric steel is also leading to a sharp
increase in demand for steel scrap. Some 3.5 million tons of scrap have already been
imported in 2006, compared with just 1 million tons in 2000. In the coming years
imports are likely to continue to increase thanks to capacity increases.

3. Inefficient transport system

In India, insufficient freight capacity and a transport infrastructure that has
long been inadequate are becoming increasingly serious impediments to economic
development. Although the country has one of the world‘s biggest transport networks
– the rail network is twice as extensive as China‘s – its poor quality hinders the
efficient supply of goods. The story is roughly the same for port facilities and airports.
In the coming years a total of USD 150 bn is to be invested in transport infrastructure,
which offers huge potential for the steel industry. In the medium to long term this
capital expenditure will lay the foundations for seamless freight transport.

SUBSIDIES AND ISSUES OF COMPETITIVENESS

Government support to the steel sector has been substantially reduced in India.
A bulk of the state support came in the form of Freight Equalisation Scheme (FRS),
whereby the domestic steel prices were sought to be uniform by a system of cross-
subsidisation of transportation cost. However, FRS was abolished in 1992.
Programmes such as the steel development Fund were also alleged to have conferred
benefits and have been countervailed in countries. India does not provide direct
subsidies for exports, although indirect subsidies on the nature of exemption from tax
and import duty are provided.
The government has established some schemes to reduce or remove the anti
export bias inherent in the system on indirect taxation. Some of the schemes
administered with the above purpose, allow importer to benefit from tariff exemption,
especially on imports. The detail of some of such schemes, and how they are treated
by select countries, are detailed below. The Government of India implements the
Export Promotion of Capital Goods (EPCG) scheme which provides for a reduction or
32
exemption of customs duties and an exemption from excise taxes on imports of
capital goods. Under this programme, producers may equipment at reduced rates of
duty by meeting certain export commitments. The EPCG scheme has been
countervailed in the US, Canada, as well as the EU. Countervailing duty investigating
agencies have also determined the Indian income-tax exemption scheme providing
income-tax exception on profits from export sales as a countervailing subsidy. The
income-tax benefits-related export activities are incorporated in secyions 80HHC,
10A and 10B of the Income Tax Act. Export credit on more favourable terms has
been a long prevailing export-incentive programme in India. The reserve bank of
India has accordingly issued directions to commercial Banks to provide export credit
both at pre- and post-shipment stages. Pre-shipment credit ,also known as packaging
credit, is advanced by commercial banks to exporters for purchase of raw material or
the finished product upon the presentation of confirmed export orders or letters of
credit. In the case of post-shipment credit, the credit is granted to an exporter against
either shipping bills or drawback claims.
India also administers a number of duty drawback schemes that allow for
the remission or drawback of import charges levied on inputs that are consumed in the
production of an exported product. Schemes such as duty Entitlement pass book
Scheme (DEPB) and Duty free Replenishment certificate (DFRC) fall under this
category. The 40 rationale for operating such schemes is to ensure that manufacturers
should not be made to bear the costs of import charges on imported goods that are
never sold within the manufacturer‘s domestic market. These duty drawback schemes
cannot be classified as export subsidies per se. However, the administration of the
schemes in certain cases have been determined or confer export subsidy by various
countervailing duty investigations to the extent they have resulted in a remission or
drawback of import charges in excess of those levied on inputs that are consumed in
the production of the exported product.

33
 1.3 COMPANY PROFILE

Introduction: 
Steel Max Alloys limited, an ISO 9001-2008 Company is one of the leading
TMT bars manufactures, having its manufacturing unit at Manjaloor and Kanjikkode,
Palakkad, the heart of Kerala. Within a short span of operation, the company has
maintained an overall steady growth throughout. Steel Max has created a brand of its
own and is standing as stiff competitor and fine compatriot is widely accepted in the
industry. The market fluctuations and volatility has been successfully managed and
Steel Max is committed to achieve gamer excellence with better utilization of
resources. 
Keeping its finger on the pulse of time and technology, Steel Max is all set to
hit the new horizons in the day ahead. Company hope that they can build on in
graduated manner with serious and responsive mechanism to address the issues
related to acquire and allocated the resources Steel Max Alloys Ltd, all the way so far
has sailed through tough to keep up its momentum on performance on production,
sales and customer satisfaction and reputation. The company has survived in this
competitive environment. Keeping up its efforts to meet par excellence and has
achieved to a normal level of its goal. The company and has intended for some
objectives and a change management process on their way to expansion and
development to meet the challenges. As there is an increased demand of MS-Ingots in
the steel market there are immense opportunities for improvement under Strategic
Flaming, customer and market focus, information analysis and process management
the company is certain to reach a milestone of business excellence. Steel Max adopted
specific guideline to be aware of its quality and performance on regular basis focusing
of areas where significant changes have to be accomplished. Being very particular
about its quality of products, Steel Max is focused on to ensure total satisfaction of its
customers and further the company would endeavor to achieve international standards
of product and services. 
As prime of its plan of action Steel Max have integrated along with the
enthusiastic, efficient and effective entrepreneurship and who have solid scientific and
technological backgrounds in relationships and developments. The bed rock of the
organization is the support and guidance of spirited, brilliant, hardworking, free gal

34
and farsighted group of visionaries and directors. Their hard work and dedication
have surely paid off wll. They are leading the company with enthusiasm and
aspiration.

Vision and Mission: 

The mission of the company is to cam due respect in the Steel industry by
serving with complete integrity and loyalty towards the clients. They are consistently
striving to attain their set goals oriented towards the customer’s expectation. Steel
Max aims at reducing energy cost by adopting innovation in energy conservation area.
They aim at establishing themselves in the steel industry as the ‘Supplier of Choice’
for its clients, thereby to achieve the pinnacle of success in the steel industry.

Policies:
Policies are an integral part of the company. These policies are unique and
important in forming the basic structure of the organization. Since the authenticity and
integrity of a firm can be judged by the set of policies it follows, Steel Max group of
companies, through the ages has built its own definite set of policies, which make it
stand out from the others. They had explored certain policies, via quality
management, health safety and environment management and corporate social
responsibility etc. They have taken a pledge to put their efforts to uplift the
downtrodden, improve the living standards of people in the area of their operation and
to sincerely work towards building a better living place. In 2010 the Steel Max is
committed to initiate renewed measures for environment and public interest and
public interest issues.

Quality Control: 
Steel Max’s quality assurance department is closely monitoring the quality of
products and continuously working towards to achieve the set of standards.
Professional supervision and examination are ensured in every phrase of the
production process and such efforts are appreciated by their clients.
  Steel Max always keep tab on the ongoing developments and
innovations in the steel manufacturing industry and adopting some of them to
maximize the quality products. The group has deployed advanced Microprocessor

35
controlled Desma Rubber Injection Moulding machines of upto 250 Tonnes.
Depending upon the nature of the product, machines are run on fully automated
processes right from compound feeding to product removal from the moulds.

Sales Plan:
Steel Max always have plead strategies to focus retailers are the crucial cog l
pushing the products to the end customers. Besides they plan to launch initiatives for
better wholesaler-retailer-co-ordination in order to gain maximum coverage in the far-
flung areas. They also plan special training sessions on their retailers and distributors
to manage their brand among the rural folk. The other important aspect is the product
mix strategy on quality and cost, which they feel it will improve their quality
management and sales. The rev engineering process will help them to concentrate
more on lean manufacturing thus they can achieve the price attraction too. Steel Max
forecast considerable increase in the sales and boom in retail estate industry will
enhance it further. They are ready to cater a part of it by equipping and price
attraction.

Marketing Strategy: 
Steel Max’s marketing strategy is based on the product concept and they seek
product excellence and emphasis on quality assurance. Their product attributes Steel
Max believe in societal marketing they make marketing decisions considering
consumers desires, the company’s interest, consumer’s long-term interests and
society’s long-term interest. They are alert on societal problems and they try to put
their best efforts on consumer sensitivity and social responsibility. Steel Max is
strongly entrenched in its ethical marketing.

Occupational health and safety:

Occupational health and safety is being viewed with due respect and serious by
the Steel Max and series of snap talks and interactive discussions were carried out in
order to attain the maximum advantage on Occupational health and safety. The
programmer covered the interstate migrant labours, contract labours and the staff on
the organization. The awareness program has stressed an attitudinal restructuring of
the individuals involved in the factory operations as attitude has been identified as

36
main threat for safe operating procedures (SOP). The prejudiced, predetermined and
preconceived ideas about the safety gears and safety procedures have been addressed
during the snap talks and interactive sessions and myths and realities have been
presented before them in each interaction. Individual counseling for the labours were
conducted and importance of safe working habits has been made understand to them.
The special language (SLT) has interacted to the labours in their respective vermicular
language and it seems to be influenced the concerned groups. During the safety
campaign Meeting the Employees program has been introduced and safety managers
almost all the labours in the factory in order to bring the change.

Process:
 TMT stands for Thermo Mechanical Treatmen.t 

 Steel bars are passed through a specially designed water-cooling system.

 Keep them till the outer surface becomes cooler, but tier surface remains hot.

 After cooling the bars are exposed to air. 

 When taken out of the TMT box the inner heat moves towards outer and
results further temperature. 

 The equalizing temperature together with the final rolling temperature is the
most important parameter to achieve the required mechanical properties

 Finally, the bars are discharged in to the cooling beds as fine turned product.

Certifications:

 ISO certified (IS-l786:2008)

 ISO 9001:2008

 National Accreditation Board for Certification Bodies.

37
Future Plans on Production and Sales:

Steel Max Alloys has drawn up challenging plans to ensure that it

continues to create value in the future wherein focusing in areas mentioned
below.

 Transforming vision into reality. 

 Creating value added quality in finished products.

 Strengthening production strategy. 

 Competitive excellence. 

 Augmenting capabilities and competence. 

The company has forced to post its highest ever output and sales. Security
of raw material supply and spirit of employees has always been one of the greatest
strengths and it will surely meet the challenges. 

The main functional departments of Steel Max Alloys: 

Logistics/ Finance department: It is controlled by (inane: manager. He should

maintain all the hooks and accounts regarding purchase and sales. 

Engineering department: It is headed by production manager who have the

responsibility to meet the production requirements its maintenance and avoid break
downs. 

Sales department: Quality and Control manager could access the product to be sold
and analysis the customer grievances regarding the product quality. 

Personnel Department of Steel Max Alloys: 

Labours are inevitable for an organization quality rather than quantity of

38
labours are essential for the success of an organization. In Steel Max Alloys workers
are of different categories. 
Contract basis Labour's: The Company appointed technical people and labours
on contract basis. Most of them are from Bihar and Orissa. Payment to them is done
on ton basis. 
Casual workers: They work for daily wages. 
Salaried Employees: It includes manager‘s office staff. Remuneration paid to these
employees is based on the efficiency and effectiveness of their work. 
Human Resource is the most valuable resource in an organization
because it can function only through people. The success of an organization depends
upon the ability of its human resource. The company appoints technical people and
labours axe on contract basis. The main objective of human resource is to achieve
maximum production, selection of right type of individual for the right job, provision
of training facilities, provision for fair wages, salary and other incentives.

39
 1.4 RESEARCH PROBLEM

Welfare activities will reduce labour turnover and absenteeism and create
permanent settled labour force by making service attractive to the labour. Welfare
activities will go a long way to better the mental and moral health of workers by
reducing the incidences of vices of industrializations.
The main problems that are occurred in Steel Max are less productivity,
absenteeism, employee stress etc., and the reason for that is the employees are not
satisfied with their welfare facilities that are provided by the Steel Max. So, I decided
to do my project under the titled as “A Study on Employee Welfare Measures”. This
research will helpful to know the employee’s expectations and their needs, changes
that are have to be done in their working environment.
So that the management can be able to adapt the changes in the working place
according to employee’s expectations.

40
 1.5 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE
To study the employee perception towards the welfare measures in Steel Max alloys.

SECONDARY OBJECTIVES
 To identify what are the various welfare facilities provided by the company.
 To assess the effectiveness of the welfare facility activities
 To study the working conditions and nature of the job at Steel Max Alloys.

41
 1.6 RESEARCH METHODOLOGY

Research
Research can be defined as a systematic and purposive investigation of the
facts with an object determining cause and effect relationship among such facts.
Research methodology
Research methodology is a way to systematically solve the research problem.
It is the sciences of studying how a research is done.
Research Design
Research design is the arrangement of the conditions for collection and
analysis of data in a manner that aims to combine relevance in research purpose with
economy in procedure.
Descriptive research is designed to describe certain things.

SAMPLING DESIGN
Sampling Method
Units included in the sample are selected according to the convenience of the
investigator. Convenience sampling method was adopted for collecting the data from
the respondents.
Sampling Size
The population of the study is 334 members. The sample size is 120 and
samples are selected on the basis of convenient from every department of the
company

METHOD OF DATA COLLECTION

Data collection
The study made use of both primary data and secondary data.
Primary Data
Primary data was collected from the respondents by using the questionnaire.
The following types of questions are used in the questionnaire
 Closed ended questions
 Open ended questions
 Rating questions

42
Secondary Data
Secondary data was collected from company website, booklets and records of
organization
Period of the study
The study taken for two months.

STATISTICAL TOOLS USED IN THE STUDY

 Simple Percentage Analysis
 Chi-Square Test
 Regression Analysis

PERCENTAGE ANALYSIS
The percentage method is used for comparing certain feature. The collected data
represented in the form of tables and graphs in order to give effective visualization of
comparison made.

Simple percentage =

Here the simple percentage analysis is used for calculating the percentage
of satisfaction level in the total respondents & data’s represented using tables and bar
and pie charts.

CHI-SQUARE
A chi-squared test, also referred to as test (or chi-square test), is any statistical
hypothesis test in which the sampling distribution of the test statistic is a chi-square
distribution when the null hypothesis is true. Chi-square tests are often constructed!
from a sum of squared errors, or through the sample variance. Test statistics that
follow a chi-squared distribution arise from an assumption of independent normally
distributed data, which is valid in many cases due to the central limit theorem. A chi-
squared test can be used to attempt rejection of the null hypothesis that the data are
independent. 

43
 Chi-square test is one of the simple and most commonly used non-parametric
tests in statistical work. Also considered a chi-square test is a test in which this is
asymptotically true, meaning that the sampling distribution (if the null hypothesis
is true) can be made to approximate a chi-square distribution as closely as desired
by making the sample size large enough.
The Chi-squared test is used to determine whether there is a significant
difference between the expected frequencies and the observed frequencies in one or
more categories.
Equation
Formula for Chi-square test 

Chi-square test =X2=  

Where,
0 = Observed frequency 
E = Expected frequency 
Expected frequency = (Row total * column total)/ grand total.
Degree of freedom = (c-1) (r-1) 

Where,
C = No of columns 
r = N o of rows 
The level of significance is 5%.

To test the hypothesis Chi-square test is used and for all the chi-square test the
table value has taken @ 5% level of significance.

CORRELATION COEFFICIENT
A correlation coefficient is a statistical measure of the degree to which changes
to the value of one variable predict change to the value of another. In positively
correlated variables, the value of one increase or decreases in tandem. In negatively
correlated variables, the value of one increase as the value if the other decrease.
Correlation coefficients are expressed as values between +1 and -1. Where the value r

44
= -1 means a perfect positive correlation and the value r = -1 means a perfect negative
correlation. So, for example, you could use this test to find out whether people’s
height and weight are correlated.
Requirements for Pearson’s correlation coefficient:
1. Scale of measurement should be interval or ratio
2. Variables should be approximately normally distributed
3. The association should be linear
4. There should be no outliers in the data

TYPES OF CORRELATION
1. Positive correlation
2. Negative correlation
3. Linear correlation
4. Non-linear correlation
5. Partial and multiple correlation

COEFFICIENT OF CORRELATION EQUATION:

r=

To test the hypothesis Regression is used for all the Regression test the table
value has taken @ 1% level of significance

45
 1.7 SCOPE OF THE STUDY

 The study on the welfare measures provides an attempt to know the extent of
satisfaction of the workers towards those measures offered by Steel Max
Alloys.
 The study would provide an idea about the various expectations of the welfare
measures offered and suggest the necessary changes to be done.
 The study also helps to get the opinion to the management about the various
welfare measures offered to the employees.

46
 1.8 NEED FOR THE STUDY

 Employee welfare measures increase the productivity of organization and

promote healthy industrial relations thereby maintaining industrial peace.

 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.

 If they provide better physical and mental health to workers and thus promote
a healthy work environment.

47
 1.9. LIMITATIONS OF THE STUDY

 The study was conducted only among 120 respondents of the organization. So,
the overall result may vary from the result shown in this study.
 Time consumption for this study is less.
 The study includes only the blue-collar workers.
 There is a possibility for a respondent’s bias in the opinion of the respondents
while filling the questionnaire.

48
 1.10 CHAPTER SCHEMA

The details of the various chapters involve in the present study are as follows:
Chapter 1: It involves introduction, statement of the problem, objectives, need, scope
and limitations of the study
Chapter 2: It involves discussion about industry and company profiles, concepts of
the study and review of literature.
Chapter 3: It involves details of research design, sampling design, methods of data
collection and tools used in the study.
Chapter 4: This chapter involves analysis and interpretation of collected data.
Chapter 5: It involves details of findings of the study, suggestions and conclusions.

49
 REVIEW OF LITERATURE

 According to Dr. Parandikar, “labor welfare work is work for improving the
health, safety and general well being and the industrial efficiency of the
worker beyond the minimum standard laid down by labour legislation”.
Welfare measures may also provide by the government, trade unions and non-
government agencies in addition to the employer. The basic purpose of
welfare is to enrich the life of employee and keep them happy and contended.

 According to Randhir Kumar Singh the welfare measures involve three

major aspects which are - occupational health care, suitable working time and
appropriate salary. It refers to the physical, mental, moral, and emotional well-
being of an individual. The safe work environment provides the basis for the
person to enjoy working. The work should not pose a health hazard for the
person. 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.

 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.

 The oxford dictionary definitions employee welfare as “effort to make life

worth living for workmen”. These efforts have their origin either in some
statue formed by the state or in some local custom or in a collective agreement
or in the employer’s own initiative.

 The international labour organization defined “labour welfare as a term

which is understood to include such service, facilities and amenities as may be
established in or in the vicinity of undertaking to enable the persons employed
in the to perform their work in healthy, congenial surroundings and to provide
them with amenities conductive to good health and high morale”.

50
 According to committee on labour welfare (CLW), welfare services should
mean “such services, facilities, and amenities as adequate canteens, rest and
recreation facilities, sanitary and medical facilities, arrangements for travel to
and from place of work, and for the accommodation of workers employed at s
distance from their homes; and such other services, amenities and facilities,
including social security measures, as contribute to the conditions under which
workers are employed.

 The Encyclopaedia of social sciences has defined labour welfare work as

“The voluntary of the employers to establish, within the existing industrial
system, working and sometimes, living and cultural conditions of the
employees beyond what is required by law, the custom of the country.

 Upadhaya (2006) studied an awareness and implementation of labour welfare

measures in Garment and hosiery industry of Noida depicted a pathetic or
quite deplorable picture of this area.52% respondents belonging to the
unskilled category and they are mobile in nature or contractual and piece rate
workers. There is no general awareness among employees.30% workers were
not being provided paid weekly holidays in case of piece rate worker and
casual workers. Only 10& of the units were providing food facility to its
workers on a subsidized basis. No other non –statutory facility being provided
to workers.

 Anand (2010) stated in his research work that employees of IT sector in

Chennai district are satisfied with the welfare measures provided by the
company. But researcher also suggested some recommendation pertaining to
periodic audit of welfare programs by management, personality & tress
management etc. Modifications are requiring in the field of safety
consciousness, grievance handling& sexual harassment especially for women
employees.

 Okereke (2010) revealed that their complete absence of welfare measures in

patani local govt. council, Delta state Nigeria. There is general awareness
about staff welfare among employees. Staffs were totally neglected by council.

51
 The working environment was poor or path. He informs of office
accommodation & furniture working materials, monetary incentives &
unreliable health of safety facilities etc. Job satisfaction among employees are
very low which leads to poor productivity or performance. Okereke suggested
that significant efforts should be made to improve employee job capabilities
through training, improve working condition & general welfare, which leads
to increase productivity or enhanced moral & performance.

 Sabarirajan (2010) concluded that the employees of textile mills in Salem

district are satisfied with the welfare facilities provided by the organization.
But some modification are required in the field of recreation, safety
equipment’s, over time payments, grievance handling etc. Betterment is
requiring in the work of co-operative societies which runs by the trade union.

 Venugopal (2011) described that employees in industrial cluster at chittoor

district, Kerala are availing statutory & non-statutory welfare facility but
employees are expecting some more welfare facility like gratuity, pension,
welfare fund, so that they may retained employees & their quality of work life.
Researcher also strongly recommended that industry should provide timely
help to the work force when they are in trouble such as conveyance to hospital
when injured, medicines.

 Satyanarayana M. (2012) Revealed that overall satisfaction level of KCP

Ltd. Employees at Macherla, Andhra Pradesh is satisfactory. However,
researcher suggested some measures for further improvement that are
productivity – linked annual bonus subsidized food in canteen, four pairs of
uniforms & increase the quantity of provisions in the co-operative stores. Such
measures will enrich the employee’s standard of living & satisfaction level.
Satyanarayana Stated about employees of sugur factories in east Godavari
district are satisfied with the welfare measures given by the company. Most of
the employees having experience between 5-10 years are highly satisfied with
welfare measures. Researcher recommended some measures improvement in
safety equipment, over time payments, compensatory arrangements on
medical grounds, promotion etc.

52
 Bosibori (2012) suggested that govt. through national police service in Kenya
(KISII central district) should improve the provision of health services,
welfare amenities& social services provided to the police officers so has to
improve service delivery & also recommended that govt. should be well
formulated policies on each areas of welfare services in the national police
service in KISII central district.

 Gurusamy (2012) asserted that there is no significant relationship between

the sex of the respondent& level of satisfaction on washing facilities in textile
industry at Coimbatore district. Also he stated that there is a positive
relationship the income of the respondent& the level of the satisfaction on
canteen facilities.

 Jain (2012) implied by her research work that public sector bank employees
are more satisfied with his jobs rather than private bank employees the main
cause of dissatisfaction among private bank employees are job in security their
jobs are highly competitive. Also welfare facilities and clearly defined &
legally enforced in public sector banks while there is neither well planned nor
well executed welfare facilities in private banks. This is other reason of
dissatisfaction among private bank employees. Employee’s turnover high &
job security low in private bank employees.

 Balaji (2013) explored the influence of rewards & welfare on job satisfaction
& productivity of both public & private sector employees in measure
Industrial cities of Tamilnadu. The working environment was faire in terms of
office accommodation & furniture, working material, health & safety facilities
but on the other side he recommended salary increment, allowances, bonus,
fringe benefit &compensation on regular & specific periods to keep their
moral high & make them productive.

 Bhati p. (2013) identified in her research work that the different provisions
provided to the employees under factories Act 1948 are showing positive
relation with the employee’s satisfaction. Company should know the
requirement of employees in term of different non-financial motivational

53
 tools. This study can be useful for identifying the factories which needs to
employee satisfaction & company can use those factors retention tool for
retaining employees in the organization.

 Chahal(2013) inferred from her research work that some factors like working
environment, performance appraisal techniques , relationship other employees
etc. are contributing towards job satisfaction in bank employees, while job
dissatisfaction caused by working hours(lack of training & development) of
frequent transfers of the employees . He suggested that employee welfare
measures/facilities of job security should be given at most importance so that
the employee turnover may be restricted.

 Gope (2013 ) studied the employee per section on quality of work life in sugar
mills of Uttar Pradesh(UP) found that private sugar mill employees enjoys
better QWL practices in comparison to cooperative sector or employees. On
lighting facilities (LF), safety measure (SF), health facilities (HF), welfare
facility (WF), etc. but cooperative sugar mill employees enjoys better
employee welfare facilities &supervisor interference (SI) to private sugar mill
employees. He suggested that to improve QWL is first to identify & then try to
satisfy employee’s important needs in through their experience in their
working environment.

 Jeyapragash (2013) Studied organizational climate in total 14 banks which

are 10 private sectors, new private sector & public sector banks & 280
respondents. From dindigul district, Tamilnadu the result showed that
organization climate within public sector bank employees were good
compared to the other private banks. They recommended other banks to
improve in the level of organizational climate, performance appraisal, and
image of your bank, training &development, employee grievance handling
procedure etc.

 Kumar (2013) described that 100% employees of Tamilnadu state transport

corporation, Villupuram division were aware of the welfare measures in
Public Sector Transport Corporation. Researcher found that most of the
employees were do not satisfied with welfare measures such as canteen, night

54
 duty, rest rooms & gratuity 89% employees said work load is very high.
Researcher suggested the govt. to take keen interest to fill up the vacancies to
share the work among them as employees are burdened with heavy work load.

 Logasakthi K (2013) inferred that most of the respondents are satisfied with
the facilities provided by the organization. Some of the employees are not
satisfied with medical reimbursement facilities.

 Prabhakar S (2013) found employees of Don bosco college of arts and

science Sogathur, Dharampuri,Tamilnadu,are very satisfied with intramural
facilities but they is a need of further development in the areas of extra mural
facilities like transport, leave facility, maternity benefits, promotion for the
staff in college etc. Researchers recommended fixing pay scale for
experienced staff in tune with the cost of living and have to think high salaries
for those awarded Ph.D.

 Reenu (2013) Described that the retail stores at Udaipur, Rajasthan are
providing intramural & extra mural facilities. Even they are providing several
amenities that may improve health & leaving standards of employees.
Researcher also suggested retail stores should provide transportation facilities,
different sport activities, accommodation facilities or allowances, sponsor for
the higher education to deserving candidate etc

 Regi (2013) stated that Indian overseas bank (IOB) gives more welfare
schemes to their employees such as safety measures, promotion facility,
recreational facility etc. but they are lacking in canteen facility, rest room &
toilet facility, ID card issue but the overall satisfaction level of IOB employees
about welfare measures are satisfactory. Sabarinathan S mentioned the 78 %
of the respondents are satisfied with welfare measures implemented by Erode
district cooperative milk producer’s union ltd. Tamilnadu.Employees are
satisfied with canteen facilities. Researcher suggested that management should
convert level of satisfactory into highly satisfactory.

 Salaria (2013) studied about employee welfare measures in auto sector at

NCR Delhi & asserts that employees in auto sector (NCR Delhi) are highly

55
 satisfied with internal mural welfare measures & few are dissatisfied with
extramural welfare measurer. Perception of the employees on total welfare
measures is satisfied.

 Shelar (2013) identified the effective & welfare provisions on manufacturing

industrial units & service industrial unit in Karad taluka, District Satara,
Maharashtra. She found that employee welfare & social security measures
offered by management of service industries in Karad taluka are not effective
in reducing employee absenteeism of turnover management employees are
satisfied or moderately satisfied with some provisions while service
employees have problem related to employment security to boost the
employee’s morale, both industries units should provide good working
conditions, co-operative societies, canteen, libraries to their employees.

 Shrinivas K T (2013) conducted research work at BOSCH Ltd. Bangalore

division on 100 employees. Researcher concluded that employee welfare
facilities are satisfied such as canteen facilities, transport &parking, uniform &
safety shoes etc. but employees are dissatisfied with medical & first kid due to
improper maintenance of medicine& less no. physicians, rest rooms &
recreational facilities are poor due to lack of maintenance.

 Sinha (2013) revealed by his research work that the overall employees of
KRIBHCO, Surat, Gujarat state. Were satisfied with their organization but the
satisfaction level of employees differs significantly as per the salary.
Researcher also concluded regarding training opportunities & job rotation
between different age groups & gender groups that no significant difference of
satisfaction level.

 Hangarki (2014) revealed the relationship between employee satisfaction

level & welfare measures in selected national bank in Hyderabad Karnataka
region. It is clear that welfare facilitated employment by bank are not equally
satisfactory to all employees. Most of the employees are dissatisfied with the
clarity and transparency in communication, training& development, lunch
rooms & rest rooms, health checkup camp etc. He recommended some
measures but separate lunch room & rest rooms are most important in those

56
 amenities because employees are very inconvenient to have their lunch in
front of the customer.

 Madhesh (2014) instated that employees having 5-10 years’ experience are
highly satisfied welfare measures provided by their companies in SIPCOT
industrial area in Tamilnadu. He suggested some recommendations regarding
welfare inspector, transfer policies &disciplinary rules for betterment of
employees.

 Priyanka (2014) was taken 100 respondents from IT industry at Guntur,

Andhra Pradesh & resulted that companies are very keen in promoting all the
welfare facility provided by the IT industry.

 Tatareddy M (2014) implied by research work that majority of the

respondents of Secundarabad division of railway are satisfied with the welfare
measures which they are provided. Employees are satisfied with both Medical,
canteen, water, washing and bathing, safety measures etc. And extra-mural
e.g. housing, recreational, educational, holiday homes, retirement benefits etc.
Researcher further suggested recommendation in the areas of housing societies
for railway men, better equipped hospitals and clinics, educational facilities in
the technical education etc.

 Bhagat (2015) revealed that cleanliness is the big issue in Nashik MIDC. She
suggested that cleanliness should be improved, clean & adequate latrines
&urinals at the work place improve indirect motivation to employees.

2.1 THEORITICAL FRAMEWORK

The economic development of a country depends upon the production of

commodities and services. The production is the result of five factors of production
viz; land, labour, capital, organization or management and entrepreneurship. Out of
these five factors, the labour is the active factor of production. The productivity of
labour has gained the greatest attention of industrial psychologists and researchers in

57
the field of economics and management. The productivity of labour depends upon its
efficiency. Quality of labour depends primarily upon its health and nutrition, literacy
and social values and customs. Poor diets, unhygienic conditions, inadequate disease
preventive measures and lack of medicines and medical care have an adverse bearing
on their efficiency. The happiness and the efficiency of workers are the mirror of the
prosperity of an industry. This prosperity of an industry is the end result of
productivity.
To neglect the labour class is to neglect the productivity. So labour welfare
measures become crucial because of the reasons like low level of wages, irregular
working hours, inability of trade union to undertake welfare work, to build up a stable
labour force for creating a genuine welfare state, to create good psychological feelings
and to create good moral habits. Under such conditions labour welfare can be only
relief to labouring class. The concept of ‘labour welfare’ is necessarily flexible and
elastic and differs widely with time, region, industry, social values and customs,
degree of industrialization, the general socio-economic development of the people and
the political ideologies prevailing at a particular time. It is also moulded according to
the Estelar age-group, sex socio-cultural background, marital and economic status
technology to re-organize the traditional recruitment and selection process through
proper decision techniques, with that both the effectiveness and the efficiency of the
processes can be increased and the quality of the recruitment and selection decision
improved.
The concept of ‘labour welfare’ is necessarily flexible and elastic and differs
widely with time, region, industry, social values and customs, degree of
industrialization, the general socio-economic development of the people and the
political ideologies prevailing at a particular time. It is also moulded according to the
Estelar age-group, sex socio-cultural background, marital and economic status and
educational level of the workers in various industries. Accordingly, the concept
cannot be very precisely defined. A series of sharply diverse opinions exists on the
motives and merits of labour welfare as well. In its widest sense, it is more or less
synonymous with labour conditions and as a whole, including labour legislation and
social insurance. Another focus of interpretation centres round the voluntary or
statutory nature of welfare for working class. Welfare in Indian industry implies the
provision of medical and educational services, a congenial work atmosphere, etc. The
need for providing such services and facilities arises from the social responsibility of
58
industry, a desire for upholding democratic values and a concern for employees.
Labour welfare implies providing better work conditions, such as proper lighting, heat
control, cleanliness, low noise level, toilet and drinking-water facilities, canteen and
rest rooms, health and safety measures, reasonable hours of work and holidays, and
welfare services, such as housing, education, recreation, transportation and
counseling.

DEFINITION

The International Labour Organization (ILO) report refers to labour

welfare as, “Such services, facilities and amenities as may be established in or in
thevicinity of undertakings to enable the persons employed in them to perform their
work in healthy, congenial surroundings and provided with amenities conducive to
good health and high morale.

The Committee of Exports on Welfare Facilities for Industrial Workers

convened by ILO (in 1963) included the following items under the term ‘labour
welfare.’

(A) Welfare and Amenities within the Precincts of the Establishment:

1. Laterines and urinals
2. Washing and bathing facilities
3. Crenches
4. Rest Shelters and canteens
5. Arrangements for drinking water
6. Health services, including occupational safety
7. Arrangement for prevention of fatigue
8. Administrative arrangements for the welfare of employees
9. Uniform and protective clothings
10. Shifts allowance

(B) Welfare Outside the Establishment:

1. Marernity benefit
2. Social insurance measures (including gratuity, pension, provident fund and
59
rehabilitation)
3. Benevolent funds
4. Medical facilities (including programmes for physical fitness and efficiency,
family planning and child welfare)
5. Education facilities
6. Housing facilities
7. Recreational facilities (including sports, cultural activities, library, reading
rooms)
8. Holidays homes and leave travel facilities
9. Workers’ co-operation, including consumers’ cooperation stores, fair price
shops, and co-operative credit and thrift socities
10. Vocational training for dependents of workers
11. Other programmes for the welfare of women, youth and children
12. Transport to and from the place of work

According to Proud, welfare work refers to “the efforts on the part of

employers to improve within the existing industrial system, the conditions of
employment in their own factors.” Prof. Richardson, on the other hand,
includesunder it, “any arrangement of working conditions, organization of social and
sports club and establishment of funds by a firm, which contribute to the worker’s
health and safety, comfort, efficiency, economic security, education and recreation.”
Dr.Panandikar defines it as, “work for improving the health safety and general
wellbeing and the minimum standard laid down by labour legislation.” The fact of the
matter is that, “Welfare Services are as varied as life itself and are constantlybeing
adopted to new circumstances. They form a fluid and developing pattern
which changes as human needs change, as problems of adjustment to social
environmentarise or with the changes which are perpetually going on in the structure
of society
itself. It is no wonder, therefore, that concepts of industrial welfare vary from
country to country and that within the same country the significance attached to the
term may differ from industry to industry, and even from undertaking to
undertaking.”
After studying the above definitions it may be concluded that the term ‘labour
welfare measures’ has been use in a ‘wide’ as well as ‘narrow’ sense. In the ‘broader
60
sense’, it may include not only the minimum statement of hygienic and safety laid
down in general labour legislation, but also such aspects of working life as social
insurance schemes, measures for the protection of women and young workers
limitation of hours of work, paid vacations, etc. In the ‘narrow sense’ welfare in
addition to general physical working conditions is mainly concerned with the day-
today problems of the workers and the social relationships at the place of work. In
some countries, the use of the welfare activities provided is confined to the workers
employed in the undertakings concerned, while in others, the workers’ families are
allowed to share in many of the benefits which are made available.
On the basis of the above various definitions, the basic characteristics of the
labour welfare measures may be put as under:-

1. Labour welfare is the work which is usually undertaken within the premises or in
the vicinity of the undertakings for the benefit of the employees and the members of
their families.
2. The work generally includes those items of welfare which are over and above what
is provided by statutory provisions or required by the custom of the industry or what
the employees expect as a result of a contract of service from the employees.
3. The objective of providing welfare amenities is to bring about the development of
the whole personality of the worker- his social, psychological, economic,
moral,cultural and intellectual development to make him a good worker, a good
citizen and a good member of the family.
4. These amenities may be provided voluntarily by the progressive and enlightened
entrepreneurs at their own accord out their realization of social responsibility towards
labour, or statutory provisions may compel them to make these facilities available; or
these may be undertaken by the government or trade unions, if they have the
necessary funds for the purpose.
5. ‘Labour Welfare’ is a very broad term, covering social security and such other
activities as medical aid, crenches, canteens, recreation, housing, adult education,
arrangements for the transport of labour to and from the work place.
6. 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 government- for the physical and mental development of a worker, both
as a compensation for wear and tear that he undergoes as a part of the production
61
process and also to enable him to sustain and improve upon the basic capacity of
contribution to the process of production, “which are all the species of the longer
family encompassed by the term ‘labour welfare’.
The progress of an industry to a large extent depends on its committed committed
labour force. In this regard the importance of labour welfare was recognized as early
as 1931, when the Royal Commission on Labour stated 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 “wise investment”
which should and usually does bring profitable return in the form of greater
efficiency. Twenty years later (i.e. in 1951), the Planning Commission realised the
importance of labour welfare, when it observed that “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
themselves 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. Theworker should
also be equipped with necessary technical training and a certain level of general
education.
The Labour Welfare Work aims at providing such service and amenities as
would enable the workers employed in industries/factories to perform their work in
healthy, congenial surroundings conducive to good and high morale.
(1) It is partly humanistic for it enables the workers to enjoy a fuller andricher life.
(2) It is partly economic because it improves the efficiency of the worker,increases its
availability where it is scarce and keeps him contended. It, therefore minimizes the
inducement to form or join unions and to resortto strikes.
(3) The aim is partly civic because it develops a sense of responsibilitiesand dignity
among the workers and thus makes them worthy citizens of the nation.
M.V.Moorthy has assessed the impact of labour welfare measures and hold
that labour welfare has two sides, negative and positive. On the one hand, it
isassociated with the counteracting of the harmful effects of large-
scaleindustrialization on the personal, family and social life of the worker, while on
theother hand, the positive side , it deals with the provisions of opportunities for the
worker and his family for a socially and personally good life. The term ‘labour

62
welfare’ is very comprehensive and includes various types of activities undertaken
for the economic, social, intellectual or moral benefit to the labour community. The
activities are so varied that the concept of labour welfare may vary from country to
country.
Need of labour Welfare Measures
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 in an entirely strange atmosphere, which create problems of
adjustments. L.S Kudchelkar calls these two factors “the long arm of the job,” and
“the social invasion of the factory.”
It is noteworthy that working-environment in industries/mines is such as
adversely affects the workers’, health because of the excessive heat or cold, noise
odours, fumes, dust and lack or inadequacy of sanitation and pure air etc., All these
lead to occupational hazards. 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.”
Hence, the need for provision of welfare services within the premises of the factory,
mine or plantation arises.
When a worker, who is in fact a ruralite, comes to work in a factory, has to
work and live in unhealthy, congested factories and slum areas, with no outdoor
recreation facilities. To escape from the tiring conditions of his tedious and tiresome
job, he absents himself, become irregular and often indisciplined. Hence, the need for
providing welfare services arises. For whatever improvements in the condition of
work and life of the employees, whatever leads to increasing adaptation of the worker
to this job, and whatever make him fully contented lessen his desire or need to the
burden of this social invasion of the factory. There is a social reason also as pointed
out by the Labour Investigation Committee, “the provision of canteens improves
the physic, entertainment reduce the incidence of vices; meical aid and maternity and
child welfare services improve the health of the workers and bring down the rates of
general, maternal and infantile morality.

63
Kinds of Labour Welfare Measures

The labour welfare measures may be studied from different angles, such as:
 The location, where these amenities are provided, within and outside the
industrial undertakings;

 The nature of amenities such as those concerned with “conditions of

employment” and “living conditions of work place.”

 The welfare activities termed as ‘statutory’, ‘voluntary’ and ‘mutual’,

 The agency which provides these amenities.

On the basis of the location of welfare activities, labour welfare work has
been classified by Dr. G.M. Broughton in two specific categories namely, (a)
intramural and (b) extra-murral. It was also supported by the committee of experts on
welfare facilities for industrial workers constituted by ILO in 1963.

(a) Intra mural activities: The labour welfare measures or activities or schemes that
are provided within the premises of the industry are called intra-mural activities.
These include medical facilities, compensation for accidents, provision of safety
measures such as fencing and covering of machines, good lay-out of the machinery
and plant, sufficient lighting, first aid appliances, fire extinguishers, activities relating
to improving conditions of employment, recruitment and discipline and provision of
provident fund, pension and gratuity, maternity benefits etc alongwith latrines,
urinals, rest shelters, arrangements for prevention of fatigue, health service including
occupational safety, administrative arrangements within a plant to look after welfare,
uniforms and protective clothing and shift allowances.
(b) Extra-mural Activities: The labour welfare activities that are provided
outside the premises of the industry are termed as extra-mural activities or measures.
These cover housing accommodation, indoor and outdoor recreation facilities,
amusement and sports, educational facilities for adults and children, provision of
libraries and reading rooms, social insurance measures including cultural activities,
holiday, homes and leave travel facility, workers cooperatives including consumer’
64
cooperative stores, fair price shops and cooperatives, thrift and credit societies,
vocational training for dependents of workers, other programmes for the welfare the
women, youth & children and transport to and from the place of work.

The other classification of labour welfare measures is given as under:

(a) Welfare Activities concerned with Conditions of Employment: In the welfare
activities concerned with conditions for the management of problems arising out of
hours of work, wages, holidays with pay, rest intervals, sanitations and safety,
continuity of employment, control over the recruitment of female and juvenile labour.
(b) Welfare Activities concerned with Conditions of Workers: All such schemes
of benefits as co-operative societies, legal and medical aid, and housing are included
in the category of activities concerned with “Conditions of workers.” Some experts
have classified welfare facilities into three categories given as under:-
(a) Statutory Labour Welfare Measures: It is statutory when such activities have to
be undertaken in furtherance of the legislation enacted by the government. It
comprises those provisions of welfare whose observance is binding on the employers
seen with a view to maintain minimum standards of health and safety etc. of the
worker. The Governments enacts certain rules under various Acts or Ordinances
which have to be followed by the employees.
(b) Voluntary Labour Welfare Measures: It is voluntary when the activities are
undertaken at their own accord by the employers or some philanthropic bodies or
when a labour organization undertakes such activities for the welfare of their
members. This includes all activities which are conducive to the welfare of the
workers. These facilities are provided by the employers of their own free will. The
idea is apparently philanthropic, but when observed separately, it is sound investment
because they not only increase the efficiency of the workers but also reduce the
chances of conflicts.
(c) Mutual Labour Welfare Measures: It is mutual when all parties join hands to
bring about the social and economic uplift of the workers. It is cooperative enterprise
of the workers. The workers and employers sometimes help each other by mutually
agreed manner. For example, activities of trade unions which are conducive to the
welfare of their members are included under this category.

65
The National Commission on Labour (1966) has classified various labour welfare
measures under the following two distinct classes given as under:-
(i) those which have to be provided, irrespective of the size of the establishment or the
number of the persons employed theirin such as facilities relating to washing, storing,
drinking, the clothing, first-aid, drinking water, latrines and urinals; and
(ii) those which are to be provided subject to the employment of specified number of
persons, such as canteen, rest shelter, crèche, ambulance etc.

Encyclopedia of Social Sciences has put in labour welfare measures in the following
three categories:-
(a) Those dealing with immediate working conditions
It includes special provisions for adequate light, heat, ventilation, toilet facilities,
accident and occupational disease prevention, lunch rooms, rest room, maximum
hours, minimum wages etc.’
(b) Those concerned with less immediate working condition and group interests
It includes gymnasiums, club rooms, playgrounds, gardens, dancing, music, house
organs, mutual aid societies, vacation with pay, profit-sharing, stock ownership,
disability and unemployment funds, pensions, savings banks, provisions for
conciliation and arbitration, shop committees and workers’ councils.,
(c) Those designed to improve community conditions
These are housing, retail stores, schools, libraries, kindergartens, lectures on domestic
sciences, day nurseries, dispensary and dental service screening of motion pictures,
arranging athletic contests and picnics and summer camps.

Labour Productivity
A given output is the result of combination of many different factors of inputs,
such as raw materials, machines, power, worker time and entrepreneurship. Since a
unit of input might be on worker, one hour of labour time, one machine, one acre of
land, one ton of raw material or one kilowatt of electric power, it has generally been
considered desirable to choose one yardstick of input which is present in all
production. For this reason the input factors most frequently used in productivity
studies is a man hour of working time popularly known as “labour productivity.”

The International Labour Organisation defines productivity as, “ the ratio

66
between the volume of output as measures by production indices and the
corresponding volume of labour input as measured by employment indices.” This
definition is widely accepted because-
(i) Labour time is more readily measurable than other input factors and it is universal
element common to all plants, processes and industries.
(ii) There is widespread interest in labour saving because such saving can effect costs,
prices, profits and even the level of living.
This definition, though simple and widespread, however, measures
productivity of labour alone and not the productivity of all the combined input factors.
Input of labour is, however only a part of the resources that goes into production. This
ratio has been characterized as misleading because it failed to include the input of
other elements of production like raw materials, capital, fuel and equipment. Labour
productivity is the ratio between the output and the number of man hours worked.
Labour productivity simply indicates the effectiveness with which labour is being
utilized along with other factors of production. Labour productivity is expressed
generally as “labour cost per unit of output” or as “output per man hour.” Labour
productivity depends on three sets of factors, viz;
(i) the ability or competence of the worker,
(ii) the willingness of the worker, and
(iii) (iii) the environments under which he has to work.
The ability or competence of the worker to perform his job more efficiently depends
upon his inherent and acquired skill, general training and experience, aptitude and
capacity and his intelligence and outlook. The worker’s attitude and willingness are
influenced partly by the system of wage payment and provision of other incentives
and partly by his morale, feeling of responsibility, general outlook and trade union
practices and attitude. The working conditions too exercise an important influence on
labour-productivity. Where the working hours are too long, the labour productivity
will tend to decline.
The success of an industrial system depends to a large extent upon increased
productivity which can be achieved through an effective use of the various input
factors. Of all the various measures of productivity, productivity of labour has
received the huge attention of industrial psychologists and researchers in the field of
economics and management. They have made specialized endeavors to explore the
reasons that are responsible for increase in productivity as also the reasons that are
67
responsible for the decline thereof. The enhancing of productivity in industrial
organizations has become one of the important issues for researchers in the field of
management and industrial psychology. Though, every employee in a business
organization works with similar tools, machines and materials, yet individual
differences are often evident in their levels of performance. The level of performance
of an individual on a task is a direct function of his motivation to perform efficiently.
In general, productivity depends upon two major variables- worker’s job
performance and resources utilized. The resources illustrated here are raw materials
and technology. Obviously, improvement in technology- plant and equipment plus
knowledge concerning the process- can make a significant difference in the
productivity of the system. Similarly, changes in raw material(s) to be processed may
also affect efficiency. The relative importance of technology in productivity depends
upon the particular situations. In automated system, the human element is not very
important. However in most organizations the performance of worker is relatively
more important than equipment and raw materials. Even in automated operations,
productivity in strategic and coordinative sub-systems largely depends upon human
performance.
The productivity of an individual depends primarily upon ability and
motivation to perform. Ability depends upon both skill and knowledge. General
economic conditions and his own personal situation at a particular point of time may
have significant impact on the behavior of the workers on the job.

68
TABLE 3.1: SHOWING AGE CLASSIFICATION

Particular Number of respondents Percentage

Below 30 35 29
31-40 40 33
41-50 25 21
51 and above 20 17
Total 120 100

CHART 3.1: SHOWING AGE CLASSIFICATION

120
100
100
80
60
40 29 33
21 17
20
0
Below 30 31-40 41-50 51 and above

INTERPRETATION

The Above table shows that there are 33 % respondent at the age of 31-40,
29% respondent at the age below 30 ,21% of the respondent between 41-50 and 17%
of respondent at the age of above 51, Therefore there are a greater number of
respondents at the age 31-40.

69
TABLE 3.2: SHOWING GENDER WISE CLASSIFICATION

Particular Number of respondents Percentage

Male 50 42
Female 70 58
Total 120 100

CHART 3.2: SHOWING GENDER WISE CLASSIFICATION

42

58

INTERPRETATION

The above table show that there are 58 % of respondent are female and 42 %
respondent are male. Therefore, there are many respondents in female gender.

TABLE 3.3: SHOWING MARTIAL STATUS

70
Particulars Number Of Respondents Percentage
Married 80 67
Unmarried 40 33
Total 120 100

CHART 3.3: CHART SHOWING MARTIAL STATUS

33

67

INTERPRETATION

The above table show that there are 67%of respondents who are married and 33% of
respondents are unmarried. Therefore, a greater number of respondents are married.

TABLE 3.4: SHOWING INCOME WISE CLASSIFICATION

Particulars Number of Respondents Percentage

71
Below Rs2500 12 10
Rs.2501-Rs.5500 20 17
Rs.5501-Rs.7500 65 54
Above Rs.7500 23 19
Total 120 100

CHART 3.4: SHOWING INCOME WISE CLASSIFICATION

60
54

50

40

30

19
20 17

10
10

0
Below Rs2500 Rs.2501-Rs.5500 Rs.5501-Rs.7500 Above Rs.7500

INTERPRETATION
The above table shows that there are 54%respondents income level is between
Rs.5501-Rs.7500, 19%respondents income level is above Rs.7500, 17%respondents
income level is between Rs.2501-5500, and 10% respondent’s income level is below
Rs. 2500.therefore a greater number of respondents’ income is between Rs.5501-
Rs7500.

TABLE 3.5 SHOWING EXPERIENCE WISE CLASSIFICATION

Particulars Number of Respondents Percentage

Below 1year 18 15
1year-3years 36 30
3years-5years 26 22
Above 5years 40 33
Total 120 100
72
CHART 3.5: SHOWING EXPERIENCE WISE CLASSIFICATION

33
35
30
30

25 22

20
15
15

10

0
Below 1year 1year-3years 3years-5years Above 5years

INTERPRETATION

The above table shows that there are 33% respondents experience are above
5years,30% respondents are 1years-3years,22%respondents are 3years-5years,and
15%respondents are below 1years.Therefore are more experienced person fall above
5years.

TABLE 3.6: SHOWING CLEANLINESS IN THE COMPANY

Particulars Number of Respondents Percentage

Yes 115 96
No 5 4
Total 120 100

CHART 3.6: SHOWING CLEANLINESS IN THE COMPANY

73
INTERPRETATION

The above table show that 96% respondents are satisfied with the cleanliness of the
company and 4 % are not satisfied with the cleanliness of the company. Therefore the
cleanliness maintained in the company is up to the satisfaction level and good.

TABLE 3.7: SHOWING INCREMENT SYSTEM

Particulars Number of Respondents Percentage

Increment System Is Good Enough 118 98

Not Enough 2 2
Needs to improve more 0 0
Needs to improve little. 0 0
Total 120 100

74
CHART 3. 7: CHART SHOWING INCREMENT SYSTEM

98
100
90
80
70
60
50
40
30
20
10 2 0 0
0
Increment system Not enough Needs to improve Needs to improve
is good enough more little

INTERPRETATION

The above table shows that 98% of the respondents gave their opinion that the
increment system is good enough in Steelmax alloys ltd, 2 % respondents gave their
opinion that the increment is not enough. Therefore more number of respondents are
satisfied with the increment provided in the company.

TABLE 3.8: SHOWING WHETHER WORKING CONDITION INFLUENCE

MOTIVATION

Particulars Number of Respondents Percentage

YES 119 99
NO 1 1
Total 120 100

CHART 3.8: SHOWING WHETHER WORKING CONDITION INFLUENCE

MOTIVATION

75
 99

INTERPRETATION:

This table shows that 99% of respondents are influenced by the working condition of
the company and 1% of respondents are not influenced by the working condition of
the company. Therefore more number of respondents are influenced by the working
condition of the company.

TABLE 3.9: SHOWING COMFORTABLE WORK SHIFT TIMING

Particulars Number of Respondents Percentage

08.00am to 04.00pm 72 60
04.00pm to 12.00am 20 17
12.00am to 08.00am 28 23
Total 120 100

CHART 3.9: CHART SHOWING COMFORTABLE WORK SHIFT TIMING

76
 23

17 60

INTERPRETATION

The above table shows that 60% of the respondent are comfortable with the working
shift timing between 8.00 am to 4.00 pm, 23% of the respondents are comfortable
with the timing between 12.00 am to 8.00 am and 17% of the respondents are
comfortable with the timing between 4.00am to 12.00 pm. Therefore more number of
respondents are comfortable with the timing between 8.00 am to 4.00pm.

TABLE 3.10: SHOWING LOANS AND ALLOWANCE FOR THE FAMILY

GIVEN BY THE COMPANY

Particulars Number of Respondent Percentage

Housing allowances 15 13
Educational loans 22 18
Medical insurance & allowance 62 52
All the above 21 17
Total 120 100

CHART 3.10: SHOWING LOANS AND ALLOWANCE FOR THE FAMILY

GIVEN BY THE COMPANY

77
INTERPRETATION
The above table shows that 52% of the respondents are provided with medical
insurance and allowance, 18% of the respondents are provided with educational loan,
17% of the respondents are provided with all of the above facilities and 13% of the
respondents are provided with housing allowance. Therefore more number of
respondents are benefited with medical insurance and allowance.

TABLE 3.11: WORKING CONDITION & NATURE OF THE JOB

Particulars SA % A % N % DA % SD % TOTAL
Your work is  73  61 35  29  12  10 0 0 0 0 120
challenging one
I feel I too much  64  53  34  28  20 17 2 2 0 0 120
work to do
Working hours  92  77 15   12 13  11 0 0 0 0 120
are convenient
for me Im happy
with my work
Adequate rest  98  82 12   10 10  8 0 0 0 0 120
intervals are
given
Management  10  88  12  10  3 2 0 0 0 0 120

78
builds and 5
maintains work
relationship
Provided with  10  86  7  6 10  8 0 0 0 0 120
sufficient tools 3
and equipments
needed to do my
work
Im satisfied with  83  69 20  17   12 10 5 4 0 0 120
safety measures
provided by my
company
mentally and  64  53 33   28 23  19 0 0 0 0 120
physically
exhausted at the
end of a day at
work

CHART 3.11: SHOWING WORKING CONDITION AND NATURE OF THE

JOB

88 86
90 82
77
80 69
70 61
60 53 53
50
40 SA
30 17 19
20 10 11 8 8 10 A
10 0 2 0 0 20 0 0 0
0 N
DA
SD

79
INTERPRETATION

This table shows that:

 61% of the respondents said that their work is a challenging one.
 53% of the respondents feel that they have too much of work to do.
 77% of the respondents feel that their working hour is convenient
 82% of the respondents said that adequate rest interval is been provided.
 88% of the respondents said that the management is maintain and building the
work relationship.
 86% of the respondents said that they are provided with adequate tools and
materials that are needed to complete the work.
 69% of the respondents are satisfied with the welfare measures provided by
the company.
 53% of the respondents said that they are totally exhausted at the end of their
work.

TABLE 3.12 SHOWING COMMUNICATION AND MOTIVATION

Particulars SA % A % N % DA % SD % TOT
AL

My supervisor 27 23 44 36 29 24 19 16 1 1 120
motivates to
increase my
efficiency at times
when I’m not
productive

Communication 19 16 36 30 35 29 26 22 4 3 120
seems good within
this organization

Work assignments 18 15 24 20 49 41 23 19 6 5 120

are explained
clearly to me

80
 CHART 3.12: WORKING CONDITION AND NATURE OF THE JOB

45 41
40 36
35 30 29
30 24
23 22 SA
25 20 19
20 16 16 15 A
15 N
10 5
3 DA
5 1
0 SD
My supervisor Communication Work assignments are
motivates me to seems good within explained clearly to
increase my effi ciency this organization me
at times when I’m not
productive

INTERPRETATION

This table shows that:

 36% of the respondents agree about the motivation from the supervisor to
increase the efficiency at times when I’m not productive
 30% of the respondents agree about the Communication seems good within
this organization
 41% of the respondents neutral agree about Work assignments are explained
clearly to me

81
 TABLE 3.13: TRAINING PROGRAM AND PERFORMANCE APPRAISAL
SYSTEM

 
SA % D % SD % TOTAL

Particulars A % N %
I am satisfied wi 120
th the training
31 26 53 44 15 12 12 10 9 8
programs
provided to us
Training is 120
given whenever 37 31 67 56 5 4 8 7 3 2
needed

Training 120
provided is 34 28 7 6 27 23 45 37 7 6
useful
I am satisfied 17 14 29 24 23 19 31 26 20 17 120
with
organization's
techniques for
evaluating my
performance

82
and appraisal
policy improves
the performance
Performance 120
appraisal of the
employee is not
43 36 27 23 16 13 18 15 16 13
affected by
personal
biasness

CHART 3.13: SHOWING TRAINING PROGRAM AND PERFORMANCE

APPRAISAL SYSTEM

83
INTERPRETATION

From the above, 36% of the respondent’s strongly agree that the Performance
appraisal of the employee is not affected by personal biasness and 56% of the
respondent’s agree that the training is given whenever needed. It is concluded that
most of the respondent’s strongly agree that the Performance appraisal of the
employee is not affected by personal biasness

TABLE 3.14: SHOWING PAY AND PROMOTION

Particulars SA % A % N % DA % SD % TOTAL
I feel I’m  82  68 12   10  26 22 0 0 0 0 120
being paid a
fair amount
for my work
I am  95  79 18  15   7 6 0 0 0 0 120
provided
with good
salary
I’m satisfied  103  86  15  12  2 2 0 0 0 0 120
with
allowances
provided by
the

84
organization
I am 3 0 0 0 0 120
satisfied
with
promotion
policies of
the
organization  112  93 5   4 3 
I am 10 2 2 0 0 120
rewarded for
the
innovative
ideas  92  76  14  12  12
CHART 3.14: SHOWING PAY AND PROMOTION

100 93
86
90 79 76
80 68
70
60
50 SA
40
30 22 A
15 12 1210
20 10 N
6 4 3
10 0 0 0 0 2 0 0 0 0 2 0
0 DA
I feel I’m I am I’m satisfied I am I am SD
being paid a provided with satisfied rewarded for
fair amount with good allowances with the
for my work salary provided by promotion innovative
the policies of ideas
organization the
organization

INTERPRETATION

This table shows that:

 68% of the respondents are paid fair amount for their work.
 79% of the respondents are provided with good salary.

85
  86% of the respondents are satisfied with the allowance provided by the
company.
 93% of the respondents are satisfied with the promotional policy provided by
the company.
 76% of the respondents are rewarded for innovative ideas.

TABLE 3.15: SHOWING WELFARE FACILITY

Particulars SA % A % N % DA % SD % TOTAL
The  82  68 12   10  26 22 0 0 0 0 120
organization has
adequate
transport facility
The  99  83 15 12   6 5 0 0 0 0 120
organization has
adequate medical
facilities
I’m satisfied  103  86  15  12  2 2 0 0 0 0 120
with the
refreshment
facilities
We are provided 3 0 0 0 0 120
with the rest and
lunch room and
they are good
enough 105  87 12  10 3 
Parking facilities
provided for our 10 2 2 0 0 120
vehicles are
satisfactory  92  76  14  12  12

86
I’m satisfied 112 93 8 7 0 0 0 0 0 0 120
with the first aid
facilities

CHART 3.15: CHART SHOWING WELFARE FACILITY

100 93
83 86 87
90 76
80 68
70
60
50
40 SA
30 22
20 10 12 12 10 1210 A
5 30 7
10 0 0 20 2 00
0 N
DA
SD

INTERPRETATION

This table shows that:

 68% of the respondents are provided with adequate transport facility.
 83% of the respondents are provided with adequate medical facility.
 86% of the respondents are satisfied with the refreshment provided in the
organization.

87
  87% of the respondents are provided with rest and lunch room.
 76% of the respondents are satisfied with the parking facility provided by the
organization.
 93% of the respondents are satisfied with the first aid facility.

TABLE 3.16: SHOWING JOB SECURITY

Particulars SA % A % N % DA % SD % TOTAL
My  76  63 26 22 11 9 4 3 3 3 120
organization
provides
me job
security
My job  87 72  18 15 10 8 2 2 3 3 120
security is
based on
my
performance
The job  93 77 14 12 8 7 5 4 0 0 120
security is
based on
workers
welfare
principle

88
CHART 3.16: SHOWING JOB SECURITY

77
80 72
70 63

60

50 SA
A
40
N
30 22
DA
20 15
12 SD
9 8 7
10 3 3 2 3 4
0
0
My organization My job security is The job security is
provides me job based on my based on workers
security performance welfare principle

INTERPRETATION

This table shows that:

 63% of the respondents are provided with job security.
 72% of the respondent’s job security is based on their performance.
 77% of the respondent’s job security is based on the workers welfare
principle.

89
TABLE 3.17: SHOWING MANAGEMENT STYLE AND GRIEVANCE
HANDLING
Particulars SA % A % N % DA % SD % TOTAL

Workers are 65 54 23 19 14 12 12 10 6 5 120

given due
recognition in
the
management
decisions
I am satisfied 86 72 16 13 13 11 5 4 0 0 120
with the
decision making
standards and
plans of the
organization
Opinion given 10 90 12 10 0 0 0 0 0 0 120
is due 8
importance in
decision making
and for any
change in
respective
department
The grievance 93 78 17 14 5 4 5 4 0 0 120
handling

90
procedure is
effective
I am able to 7 16 13 8 7 120
freely
communicate my
grievance 76 63 12 10 8

CHART 3.17: SHOWING MANAGEMENT STYLE AND GRIEVANCE

HANDLING

90
90 78
80 72
70 63
54
60
50
40
30 19 SA
1210 1311 10 14 10 7 13 7
20 5 4 0 0 0 0 4 4 0 A
10
0 N
Workers are I am Opinion The I am able to
given due satisfied given is due grievance freely DA
recognition with the importance handling communicate SD
in the decision in decision procedure is my grievance
management making making and effective
decisions standards for any
and plans of change in
the respective
organization department

INTERPRETATION

This table shows that:

 54% of the respondents are given with due recognition in the management
decision.
 72% of the respondents are satisfied with the decision-making standards and
plans of the organization.
 90% of the respondent’s opinion are given importance in decision making and
for any change in respective department.

91
  78% of the respondents said that the grievance handling procedure is effective.
 63% of the respondents feel free to communicate their grievances.

TABLE 3.18: SHOWING JOB FACTORS

Particulars SA % A % N % DA % SD % TOTAL
I love my job 117 97 3 3 0 0 0 0 0 0 120
and to work
in this
organization
My work life 98 81 12 10 7 6 3 3 0 0 120
is meaningful
I consider 93 77 12 10 13 11 2 2 0 0 120
that my work
is valuable in
attaining
organizationa
l goals
I have 10 2 2 6 5 120
adequate
opportunity to
use my ability 79 66 21 17 12
Overall, I’m 7 0 0 0 0 120
satisfied with
my job 97 81 15 12 8

92
CHART 3.18: SHOWING JOB FACTORS

97
100
90 81 81
77
80
66
70
60
50 SA
40 A
30 N
17
20 10 1011 10 12
6 3 7 DA
10 3 0 0 2 2 0
SD
0
I love my job My work life is I consider that I have Overall, I’m
and to work in meaningful my work is adequate satisfied with
this valuable in opportunity to my job
organization attaining use my ability
organizational
goals

INERPRETATION

This table shows that:

 97% of the respondents love their job and love to work in Steelmax alloys ltd.

 81% of the respondents feel that their work life is meaningful.

 77% of the respondents feel that their work is valuable in attaining the
organizational goal.
 66% of the respondents have adequate opportunity to use their ability.

 81% of the respondents are satisfied with the overall job.

93
STATISTICAL TOOLS AND ANALYSIS

CHI- SQUARE TEST I – (ψ2)

Chi-square is the sum of the squared difference observed (o) and the expected (e) data
(or the deviation, d), divided by the expected data in all possible categories.

Null hypothesis (Ho):

There is no relationship between the income and experience.

Alternate hypothesis (H1):

There is a relationship between the income and experience.

TABLE 3.19
INCOME

Below 1 year- 3 year- Above TOTAL

1 year 3 year 5year 5 year

Below 12 0 0 0 12
Rs.2500

Rs.2500 6 14 0 0 20
to
Rs.5500

Rs.5501 0 22 26 17 65
to
Rs.7500

Above Rs. 0 0 0 23 23
7500

94
 TOTAL 18 36 26 40 120

TABLE 3.20 COMPUTATION OF CHI-SQUARE TEST

O E O-E (O-E) ^2 (O-E) ^2/E

12 1.8 10.2 104.04 57.8
0 3.6 -3.6 12.96 3.6
0 2.6 -2.6 6.76 2.6
0 4 -4 16 4
6 3 3 9 3
14 6 8 64 10.66667
0 4.3 -4.3 18.49 4.3
0 6.6 -6.6 43.56 6.6
0 9.75 -9.75 95.0625 9.75
22 19.5 2.5 6.25 0.320513
26 14.08 11.92 142.0864 10.09136
17 21.6 -4.6 21.16 0.97963
0 3.45 -3.45 11.9025 3.45
0 6.9 -6.9 47.61 6.9
0 4.9 -4.9 24.01 4.9
23 7.6 15.4 237.16 31.20526
         
CALCULATED VALUE
 
 
  89.00526

Degree of Freedom= (r-1) * (c-1)

= 3*3=9
Calculated value = 89.00526
Tabulated value = 16.919
Z = Z cal >Z tab
Z= 89.00526>16.919
Hence, the Alternate hypothesis [H1] is accepted

95
 Since the calculated value is greater than the tabulated value, we accept
the alternate hypothesis and hence there is a relationship between the income
and experience.
ANALYSIS USING KARL PEARSON’S CORRELATION

Correlation analysis is the statistical tool used to measure the degree to which two
variables are linearly related to each other. Correlation measures the degree of
association between two variables.
Types of correlation
 Positive correlation
 Negative correlation
 Linear and non-linear correlation
 Partial and multiple correlation

TABLE 3.21 COMPUTATION OF CORRELATION

X Y dx dy dx^2 dy^2 dxy

82 99 58.000 75.000 3364.000 5625.000 4350.000

12 15 -12.000 -9.000 144.000 81.000 108.000
26 6 2.000 -18.000 4.000 324.000 -36.000
0 0 -24.000 -24.000 576.000 576.000 576.000
0 0 -24.000 -24.000 576.000 576.000 576.000
120 120 0 0 4664 7182 5574

r=

r = 5574
5788

r =0.9630

96
 Since r is positive, there is positive relationship between the organization has
adequate transport facility and the organization has adequate medical facilities.

FINDINGS

 67% of the employees are married.

 54% of the employee’s income level is between Rs. 5501-Rs.7500.
 96% of the employees are satisfied with the cleanliness of the company.
 98% of the employees gave their opinion that the increment system is good
enough in the company.
 99% of the employees are influenced the working condition of the company.
 52% of the employees are provided with medical insurance and allowance.
 88% of the employees are satisfied that the management is maintain and
building the work relationship.
 36% of the employees are satisfied about the motivation from the supervisor to
increase the efficiency when they are going through a rough time.
 56% of the employees are satisfied about the training, that is given whenever
is needed.
 93% of the employees are satisfied with the promotional policy provided by
the company.
 93% of the employees are satisfied with the first aid facility provided by the
company.
 86% of the employees are satisfied with the refreshment provided by the
company
 72% of the employees job security is based on the workers performance. .
 90% of the employee’s opinion are given importance in decision making and
for any change in respective departments.
 97% of the employees are satisfied and love their job.

97
 SUGGESTIONS

 The management should welcome the employee’s suggestions regarding

employee welfare activities by providing suggestion box facility in the
organization.
 The company should give the importance to the grievances of the employees
and can provide timely and promptly action in the form of redressal. It helps to
avoid labor turnover and also satisfy the employees.
 The company may ensure that proper training is availed to the employee’s
before installing a new machine, if any. It will help to avoid wastage and
accidents.
 The company should improve the performance appraisal system without any
bias between the employees.
 The communication structure within the organization should improve.

 The company can increase the drinking water facility at various points of the
organization.

98
 CONCLUSION

The term employee welfare is very comprehensive and includes various types of
activities undertaken for the economic, social, intellectual or moral benefit of the
labor community. Labor comprises all human efforts of body and mind, which are
exchanged for consideration of cash or kind or both employee welfare is a broad
concept. It is a condition of well-being, happiness, satisfaction, conservation and
development of human resources.
The study on employee’s welfare measures on Steel Max Alloys Private
Limited is carried out with full co-operation of the employees and management.
Employees are the backbone of the organization growth and progress. From the study,
the most of the employees are satisfied with welfare facilities provided by the
organization. By improving further welfare measures the company can keep all the
employees in high morale, which will create high productivity and profit for the
organization.

99