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Employee Welfare Measures in Public and Private Sectors: A

Comparative Analysis

Article · June 2015

DOI: 10.4018/ijssmet.2015010102

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22 International Journal of Service Science, Management, Engineering, and Technology, 6(1), 22-36, January-March 2015

Employee Welfare Measures in

Public and Private Sectors:
A Comparative Analysis
Chandra Sekhar Patro, Gayatri Vidya Parishad College of Engineering (Autonomous),
Visakhapatnam, India

ABSTRACT
Employees’ play a key role in the existence and growth of any organisation, therefore their welfare is essen-
tial. During the past few years, both public sector and private sector organisations have been contributing
towards the employee’s benefits and also increase their efficiency. Employees’welfare facilities include housing
facilities, free medical facilities, retirement benefits, children and adult educational benefits, welfare mea-
sures for the employee’s families, loan facilities, etc. If the organisations do not bother about the employees
benefit, but expect efficient and high performance from them, it is a mere waste. So there is utmost need for
the employee’s welfare in any type of organisation. Organizations have to provide welfare facilities to their
employees to keep their motivation levels high. A comparative study was undertaken to know the satisfaction
level of the employees on the enforceability of various welfare measures in both the public and private sector
organizations. The study also throws light on impact of welfare measures on the employees’ performance.

Keywords: Employees’ Welfare Measures, Organization, Performance, Private Sector, Public Sector

INTRODUCTION salaries or professional fees” (Railkar, 1990).

In a Resolution in 1947, the ILO defined labour
The term welfare suggests the state of well being welfare as “such services, facilities and ameni-
and implies wholesomeness of the human being. ties as adequate canteens, rest and recreation
It is a desirable state of existence involving the facilities, arrangements for travel to and from
mental, physical, moral and emotional factor work, and for the accommodation of workers
of a person. All these four elements together employed at a distance from their houses and
constitute the structure of welfare on which its such other services, amenities and facilities
totality is based. The term welfare is a relative as contribute to improve the conditions under
concept; therefore it varies from time to time, which workers are employed”.
region to region and from country to country. Employee welfare means anything done
According to the traditional economic theory for the comfort and improvement, intellectual
labour can be defined as, “A factor of production or social, of the employees over and above
which consists of manual and mental exertion the wages paid which is not a necessity of the
and receives some return by way of wages, industry. Employee welfare entails all those ac-
tivities of employer which are directed towards

DOI: 10.4018/ijssmet.2015010102

Copyright © 2015, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
International Journal of Service Science, Management, Engineering, and Technology, 6(1), 22-36, January-March 2015 23

providing the employees with certain facilities Public Sector and Private Sector
and services in addition to wages or salaries.
It includes monitoring of working conditions, In general terms, the public sector consists
creation of organizational harmony through in- of governments and its controlled or funded
frastructure for health, general insurance, retire- enterprises. This includes federal, provincial,
ment benefits, housing facilities, and education state, or municipal governments, depending
benefits for employees and their children, and on where the people live. Privacy legislation
so on. Labour welfare implies the setting up of usually calls organizations in the public sector
minimum desirable standards and the provision a public body or a public authority. The private
of facilities like health, food, clothing, housing, sector is usually composed of organizations
medical assistance, education, insurance, job that are privately owned and not a part of the
security, recreation etc. Such facilities enable government. These usually include corpora-
a worker and his family to lead a good work tions, enterprises, companies or business,
life, family life and social life (Sarma, 1996). regardless of size, ownership and structure. It
According to C.P John (1998) the term may cover all sectors of the food, agriculture,
labour welfare in its broad connotation refers forestry and fisheries systems from production
to a state of living of an individual or a group to consumption, including associated services
in a desirable relationship with the total envi- like financing, investment, insurance, market-
ronment - ecological, economic, and social. ing and trade.
Welfare helps in keeping the morale and mo- In the present competitive environment the
tivation of the employees high so as to retain private sector organisations are playing major
the employees for longer duration. The welfare role in the overall development of the economy.
measures need not be in monetary terms only So, it is essential to foucs on the welfare mea-
but in any kind/forms. Employee welfare is the sures which enhances the employees quality
key to smooth employer-employee relations. A of work life and also helpful in increasing the
proper organization and administration of wel- organizations productivity. Generally in public
fare facilities can play a vital role in promoting sector, the funds are organized and provided
better working conditions and living standards either by central or state government. So, they
for industrial workers, and also increase their are able to provide the welfare measures effec-
productivity, especially in developing countries tively to their employees without any hesitation.
(Kohli and Sharma, 1997). In order to increase In private sector, large scale organisations
employee welfare facilities, employers need to can pool more funds and provide the welfare
offer extra incentives in the form of employee facilities as effectively as public sector organi-
welfare schemes, and to make it possible to zations provide to their employees. But, small
pursued employees. The very logic behind scale organizations may have limited funds,
providing welfare schemes is to create efficient, so they may not be able to take care of the
healthy, loyal and satisfied labor force for the welfare facilities effectively, when compared
organization. Welfare measures practiced in any with public sector.
organization, aims or should aim, at improving
the working and living conditions of employees
and their families. OBJECTIVES OF THE STUDY
The present study will present a compara-
The present research starts with the objective
tive analysis on the implementation of various
of studying the various employee welfare mea-
welfare measures and the employee’s satisfac-
sures provided by the private and public sector
tion level in both public and private sector or-
organizations in Visakhapatnam district, Andhra
ganisations. It also focuses on the impact of the
Pradesh, India. The objective of this study is:
welfare schemes on the employees’performance
and overall productivity of the organisation.

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