Employee Welfare

Welfare Measures of an
Employee in
BHEL
1
A Project Report
On
EMPLOYEE WELFARE MEASURES
At
Bharat Heavy Electricals Limited (BHEL)
Ramachandrapuram
Hyderabad-32.
In
Partial fulfillment of Award of the degree of
MASTER OF HUMAN RESOURCE MANAGEMENT
SUBMITED
BY
Harika.Viswanatham
Under the guidance of

Mrs. K.Sujana
Manager (HR),
BHEL, Hyderabad
Padmasri Dr.B.V.Raju Institute of Technology

2
Narsapur
ACKNOWLEDGEMENT
I express my gratitude to the management of Bharat Heavy

Electricals Limited (BHEL), Hyderabad for kindly allowing me to do
this project on “Welfare Measures of an Employee in BHEL,
Hyderabad”.
I express my gratitude to the department of the management
studies of Padmasri Dr.B.V.Raju Institute of Techonology,Narsapur for
allowing me to take this project work in BHEL,Hyderabad as a part of my
curriculum. My training during the project work in BHEL,Hyderabad was
very good experience as I learn lot of new things.
I am very thankful to Ms. K.Sujana, Manager, HR (WELFARE
DEPEREMENT), BHEL, Hyderabad who has guided me during the entire
period of training. She provided me with lost of data, materials and
information related to the topic, which help me to complete this project. I am
also thankful to all the concerned persons who helped me during the training
and provided information to complete this project.
3
DECLARATION
I Harika.Viswanatham, student of Padmasri Dr.B.V.Raju Institute of

Techonlogy,Narspur. Here by declare that the project report titled “Welfare
Measures of an Employee in BHEL, Hyderabad” submitted by me to the
Human Resource development department is my own original work and it
has not been submitted to any other organization or published any where
previously.
Date: Signature
Place: Harika.Viswanatham
4
INDEX
S.no Title Page no
Chapter-1
1 Introduction
2 Importance of welfare
3 Features of labour welfare
4 Need of labour welfare
5 Types of welfare Activities
6 Functions of labour welfare
7 Objectivities of labour welfare
8 Theories of labour welfare
9 Employee Protection and welfare
Chapter-2
1 Research design
2 Statement of the problem
3 Objectives of the study
4 Scope of the study
Chapter-3
1 BHEL profile
2 BHEL Ramachandrapuram, Hyderabad
Chapter-4
1 Review of literature
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2 Methodology
3 Data analysis and interpretation
Chapter-5
1 Findings
2 Conclusion
3 Recommendation
4 Bibliography
Annexure:
1 Questionnaire
6
Chapter-1
Introduction
Employee Welfare is an important facet of industrial relations, the extra

dimension, giving satisfaction to the worker in a way which evens a good wage
cannot. With the growth of industrialization and mechanization, it has acquired
added importance. The workers in industry cannot cope with the pace of modern
life with minimum sustenance amenities. He needs an added stimulus to keep body
and soul together. Employers have also realized the importance of their role in
providing these extra amenities. And yet, they are not always able to fulfill workers
demands however reasonable they might be. They are primarily concerned with the
viability of the enterprise .Employee welfare, though it has been proved to
contribute to efficiency in production, is expensive. Each employer depending on
his priorities gives varying degrees of importance to labour welfare.
It is because the government is not sure that all employers are
progressive minded and will provide basic welfare measures that it introduces
statutory legislation from time to time to bring about some measures of uniformity
in the basic amenities available to industrial workers.
After employees have been hired, trained and remunerated,
they need to be retained and maintained to serve the organization better. Welfare
facilities are designed to take care of the wellbeing of the employees, they do not
generally result in any monetary benefit to the employees. Nor are these facilities
provided by employers alone. Governmental and non-governmental agencies and
trade unions too, contribute towards employee welfare.
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Employee welfare is a comprehensive term including various
services, benefits and facilities offered to employees by the employer. Through
such generous fringe benefits the employer makes the life worth living for
employees. The welfare amenities are extended in addition to normal wages and
other economic rewards available to employees as per the legal provisions. Welfare
measures may also be provided by the government, trade unions and non-
government agencies in addition to the employer. The basic purpose of employee
welfare is to enrich the life of the employees and keep them happy and contended.
MEANING AND DEFINITION

Welfare means faring or doing well. It refers to the physical, mental,
moral and emotional well-being of an individual. Further, the term welfare is a
relative concept, relative in time and space. It, therefore, varies from time to time,
from region to region and from country to country.
Employee welfare, also referred to as betterment work for employees,
relates to taking care of the well-being of workers by employers, trade unions and
government and non-governmental agencies. It is rather difficult to define the term
labour welfare precisely because of the relatively of the concept.
The Oxford dictionary defines employee welfare as “efforts to make life
worth living for workmen”. It is however, difficult to precisely define the scope of
these efforts. Different writers have defined it in different ways. Some writers say
that only voluntary efforts on the part of employers to improve the conditions of
employment in their factories from the scope of employee welfare efforts. Some
others say that it includes not only voluntary efforts of the employer but also the
minimum standards of hygiene and safely laid down in general legislation. Here are
some of the definitions given by some of the experts.
8
The labour Investigation Committee preferred
to include under ‘Labour Welfare’:
“Anything done for the intellectual, physical, moral and economic
betterment of the workers, employers, by government or by other agencies
over and about what is laid down by law or what is normally expected of the
contractual benefits for which workers may have bargained.”
According to the committee and labour welfare

services should me:
“Such services, facilities, and amenities as adequate canteen, rest and
recreation facilities, sanitary and medical facilities, arrangements foe travel
to and from place of work, and for the accommodation of workers employed
at a distance from they homes; and such other services, amities and facilities,
including social security measures, as contribute to the conditions under
which workers are employed “
The ILO report refers to labour welfare as:

“Such services, facilities, and amenities as may be established in or in
the vicinity of under takings to enable the persons employed in them to
perform their work in health, congenial surroundings and provided with
amenities conductive to good health and high morale.”
The encyclopedia of social sciences has

defined labour welfare work as:
9
The voluntary efforts of the employers to established, with in the
exiting industrial system, working and some times, living and cultural
condition of the employees beyond what is required by law, the custom of
the country and the conditions of the market”
IMPORTANCE:
Industrial progress of a country depends on its committed labour

force. In this regard the importance of labour welfare was recognized as
early as 1931, when the royal commission on labour started 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 “a wise investment” which should and usually does bring
profitable return in the form of greater efficiency. 20 years later, the
planning commission realized the importance of labour welfare, when it
observed “in order to get the best out of a worker in the matter of production,
working conditions require to be improved to a large extent. The workers
should at least have the means and facilities to keep him in a state of health
and efficiency. This is primarily a question of adequate nutrition and suitable
housing conditions.
The working condition should be such as to safeguard his health and

protect him against occupational hazards. The work place should provide
reasonable amenities for his essential needs. The worker should also be
equipped with the necessary technical training and a certain level of general
education.”
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BASIC FEATURES OF LABOUR WELFARE:
On the basis of the various definitions, the basic charters tics of labour
welfare work may be noted thus:
a) It is the work, which is usually undertaken with in the premises or

in the vicinity of the undertakings for the benefits employees and
the members of their families.
b) The work generally includes those items of welfare which are over
and above what is provided by statutory provisions are required by
the custom of the industry or the employees expect as a results of a
contract of services from the employers.
c) The purpose of providing welfare amenities is to bring about the
development of the whole personality of the worker-his social,
psychological, economic, moral, and cultural and intelectuaval
development to make him a good worker, a good citizen and a
good member of the family.
d) These facilities may be provided voluntarily by progressive and
enlightened entrepreneurs at their own accord out of their
realization of social responsibility towards labour statutory
provisions may compel them to make these facilities available: or
these may be under taken by the government or trade unions, if
they have the necessary funds for the purpose.
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e) Labour welfare is a very broad term, covering social securities and
such other activities as medical aid, crèches, canteens, recreations,
housing, adult education, arrangements for the transports of labour
to and from the work place.
f) 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 worker, both as a
compensation for wear and tear the undergoes as part of the
production process and also to enable him to sustain and improve
upon the basic capacity of contribution on the processes of
production, “which are all the species of the longer family
encompassed by the term ‘Labour Welfare’”
NEED FOR LABOUR WELFARE:
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 on an entirely
strange atmosphere, which create problems of adjustement. One author calls
these two factors “the long arm of the job”, and “the social invasion of the
factory”.
The working environment in a factory /mine adversely affects the

workers ‘health because of the excessive heat or cold, noise, odours, fumes,
dust and lack of sanitation and pure air etc., lead to occupational hazards.
12
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 work”. Hence the need for provision of welfare services
within the premises of the factory, mine or plantation arises.
There is a social reason also as pointed out by the labour Investigation

Committee,” the provision of the canteens improves the physique,
entertainment reduce the incidence of vices; medical aid and maternity and
child welfare services improve the health of the workers and bring down the
rates of general, maternal and infantile morality; And educational facilities
increase their mental efficiency and economic productivity.
AIMS OF LABOUR WELFARE WORK:
The labour welfare work aims at providing such service facilities and
amenities as would enable the workers employed in industries /factories to
perform their work in healthy, congenial surroundings conducive to good
health and high morale.
• It is partly humanistic, for it enables the workers to enjoy a

fuller and richer life.
• It is partly economic because it improves the efficiency of the

worker, increases its availability where it is scarce and keeps
13
him contented .it, therefore, minimizes the inducement to form
or join unions and to resort to strikes.
• The aim is partly civic because it develops a sense of

responsibilities and dignity among the workers and thus makes
them worthy citizens of nation.
Employee welfare has 2 aspects—negative and positive.

On the negative side, employee welfare is concerned with counteracting
the baneful effects of the large-scale industrial system of production especially
capitalistic, so far as India is concerned on the personal/family, and social life of the
worker. On its positive side, it deals with the provision of opportunities for the
worker and his/her family for a good life as understood in its most comprehensive
sense.
Employee welfare operates to neutralize the harmful effects of large scale
industrialization and urbanization. Provision of welfare amenities enables
the workers to live a richer and more satisfactory life and contributes to their
efficiency and productivity. It helps in maintaining industrial peace.
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TYPES OF WELFARE ACTIVITIES:
The meaning of labour welfare may be clearer by listing the activities

and facilities, which are referred to as welfare measures.
A comprehensive list of welfare activities on labour welfare into two

broad groups, namely:
1. Welfare measures inside the work place; and

2. Welfare measures outside the work place.
1. Welfare Measures inside the Work Place
a) Conditions of the work Environment
• Safety and cleanliness: attention to approaches.

• Housekeeping
• Workshop sanitation and cleanliness.
• Control of effluents
• Convenience and comfort during work
• Distribution of work hours
• Workmen’s safety measures
• Supply of necessary beverages
• Notice Boards
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b) Conveniences
• Provision of drinking water

• Urinals and bathrooms
• Provision for spittoons
• Canteen services
• Rest rooms and reading rooms
C) Worker’s Health Services
• Factory health center

• Dispensary
• Ambulance
• Emergency aid
• Health education
d) Women and Child Welfare
• Services Crèche and child care

• Separate services for woman workers
• Family planning
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e) Workers’ recreation
• Indoor games; strenuous games to be avoided during

intervals of work
f) Economic services
• Co operatives, loans, financial grants
• Thrift and savings schemes

• Un employment insurance
• Profit sharing and bonus schemes
• Gratuity and pension
g) Labour management participation
• Formation and working of various committees

• Workmen’s arbitration council
• Research bureau
h) Workers education
• Reading room
• Library
• Adults education
• Daily news review
• Factory news bulletin
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2. Welfare Measures outside the Work Place
a) Water, sanitation, waste disposal.

b) Roads, lighting, parks, recreation, playgrounds.
c) Schools: nursery, primary, secondary and high school.
d) Markets, co operatives, consumer and credit societies.
e) Bank
f) Transport
g) Communication: post, telegraph and telephone.
h) Health and medical services: dispensary, emergency
ward, outpatient and in-patient care, family visiting,
family planning
i) Recreation: games; clubs; craft centers; cultural
programmes
j) Watch and ward; security.
k) Administration of community services and problems.
Welfare facilities may also be categorized as (a) intra- mural and (b) extra-
mural
Intra-mural facilities
Intra-mural activities consist of facilities provided with in the
factories and include medical facilities, compensation for accidents,
provision of crèches and canteens, supply of drinking water, washing and
bathing facilities, provision of safety measures, activities relating to
improving conditions of employment, and the like.
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Extra-mural facilities
Extra-mural activities cover the services and facilities provided out
side the factory such as housing accommodation, indoor and out door
recreational facilities, amusement and sports, educational facilities for adults
and children, and the like.
It may be started that the welfare activities may be provided by the

employer, the government, non-government organization and the trade
unions, while, what employees provide will be started later; the activities
undertaken by other agencies are mentioned here.
LABOUR WELFARE – LEGAL SIDE
Statutory and non-statutory activities:

Welfare activities may also be classified into
1) Statutory provisions
2) Non-statutory provisions
Statutory provisions
The factories act, 1948; the mines act, 1952; the plantation labour act,
1951; and some other acts mandate these. Of all these, the factories act is
more significant and hence is covered in detail here.
The factories act:

The act was first conceived in 1881 where legislation was enacted to
protect children and to provide health and safety measures.
20
Later, hours of work were sought to be regulated and were, therefore,
incorporated in the act in 1911. The act was amended and enlarged in 1934
following the recommendations of the royal commission of the labour. A
more comprehensive legislation to regulate working conditions replaced the
act in 1948.
The welfare amenities provided under the act are given below:
a) Washing facilities (S. 42)
b) Facilities for storing and dry clothing (S. 43)
c) Sitting facilities for occasional rest for workers who are obliged to
work standing (S. 44)
d) First aid boxes or cupboards- one for every 150 workers and
ambulance facilities, if there are more than 500 workers (S. 45)
e) Canteens, if employing more than 250 workers (S. 46)
f) Shelters, rest rooms and lunchrooms, if employing over 150
workers (S.47)
g) Crèche, if employing more than 30 women(S. 48)
h) Welfare officer, if employing 500 or more workers (S.49)
Non-statutory provisions
Non-statutory benefits, also called voluntary benefits, include loans
for house building, education of children; leave travel concession, fair price
shops, loans for purchasing personnel conveyance and a host of other
facilities
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FUNCTIONS AND DUTIES LABOUR WELFARE
OFFICER:
Schedule 49 of the act provides that in every factory where in 500 or

more workers are ordinarily employed, the employers shall appoint at least
one welfare officer. The officer is expected to act as an advisor, counselor,
mediator and liaisoning officer between the management and the labour.
Specifically, his/her duties include the following
1. Supervision of (i) safety, health and welfare programs like housing,

recreation, and sanitation services (ii) working of joint committees;
(iii) grant of leave with wages; and (iv) redressal of workers.
2. Counseling workers in (i) personal and family problems; (ii)
adjustment to their work environment; and (iii) understanding their
rights and privileges.
3. Advising management in matters of (i) formulating welfare
policies; (ii) apprenticeship training programs; (iii) complying with
statutory obligations to workers; (iv) developing fringe benefits;
and (v) workers education.
4. Laisoning with workers so that they may (i) appreciate the need for
harmonious industrial relations in the plant; (ii) resolved disputes,
if any; (iii) understanding the limitations under which they operate;
and (iv) interpret company policies correctly.
5. Laisoning with the management so as to appraise the latter about

workers view points on organization matters
Objectives
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The basic features of labor welfare measures are as follows:
• Labor welfare includes various facilities, services and amenities

provided to workers for improving their health, efficiency,
economic betterment and social status.
• Welfare measures are in addition to regular wages and other
economic benefits available to workers due to legal provisions
and collective bargaining
• Labor welfare schemes are flexible and ever-changing. New
welfare measures are added to the existing ones from time to
time.
• Welfare measures may be introduced by the employers,
government, employees or by any social or charitable agency.
• The purpose of labor welfare is to bring about the development
of the whole personality of the workers to make a better
workforce.
• Enabling workers to live richer and more satisfactory lives;
• Contributing to the productivity of labour and efficiency of the
enterprise;
• Enhancing the standard of living of workers by indirectly
reducing the burden on their work they purse;
• Enabling workers to live in tune and harmony with services for
workers obtaining in the neighborhood community where
similar enterprises are situated;
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• Based on an intelligent prediction of the future needs of the
industrial workers, designing policies to cushion off and absorb
the shocks of industrialization and urbanization to workers;
• Fostering administratively viable and essentially developmental
outlook among the workforce; and Discharging social
responsibilities
The important benefits of welfare measures can be summarized as follows:
• They provide better physical and mental health to workers and thus
promote a healthy work environment
• 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.
• Employee welfare measures increase the productivity of organization
and promote healthy industrial relations thereby maintaining industrial
peace.
• The social evils prevalent among the labors such as substance abuse,
etc are reduced to a greater extent by the welfare policies.
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THEORIES OF LABOUR WELFARE
The form of labor welfare activities is flexible, elastic and differs from time to
time, region to region, industry to industry and country to country depending
upon the value system, level of education, social customs, and degree of
industrialization and general standard of the socio-economic development of the
nation. Seven theories constituting the conceptual frame work of labour welfare
activities are the following:-
The Police Theory: This is based on the contention that a minimum standard
of welfare is necessary for labourers. Here the assumption is that without
policing, that is, without compulsion, employers do not provide even the
minimum facilities for workers. Apparently, this theory assumes that man is
selfish and self centered and always tries to achieve his own ends, even at the
cost of the welfare of others.
According to this theory, owners and managers of industrial undertakings get
many opportunities for exploitation of labour. Hence, the state has to intervene
to provide minimum standard of welfare to the working class.
The Religious Theory: This is based on the concept that man is essentially "a
religious animal." Even today, many acts of man are related to religious
sentiments and beliefs. These religious feelings sometimes prompt an
employer to take up welfare activities in the expectation of future
emancipation either in this life or after it.
The Philanthropic Theory: This theory is based on man's love for mankind.
Philanthropy means "Loving mankind." Man is believed to have an instinctive
urge by which he strives to remove the suffering of others and promote their
25
well-being. In fact, the labour welfare movement began in the early years of
the industrial revolution with the support of philanthropists.
The Trusteeship Theory: This is also called the Paternalistic Theory of

Labour Welfare. According to this the industrialist or employer holds the total
industrial estate, properties, and profits accruing from them in a trust. In other
words, the employer should hold the industrial assets for himself, for the
benefit of his workers, and also for society. The main emphasis of this theory
is that employers should provide funds on an ongoing basis for the well-being
of their employees.
The Placating Theory: This theory is based on the fact that the labour groups
are becoming demanding and militant and are more conscious of their rights
and privileges than ever before. Their demand for higher wages and better
standards of living cannot be ignored. According to this theory, timely and
periodical acts of labour welfare can appease the workers. They are some kind
of pacifiers which come with a friendly gesture.
The Public Relation Theory: This theory provides the basis for an
atmosphere of goodwill between labour and management, and also between
management and the public, labour welfare programmes under this theory,
work as a sort of an advertisement and help an organization to project its
good image and build up and promote good and healthy public relations.
The Functional Theory: This is also called the Efficiency Theory. Here,
welfare work is used as a means to secure, preserve and develop the
efficiency and productivity of labour, It is obvious that if an employer takes
good care of his workers, they will tend to become more efficient and will
26
thereby step up production. This theory is a reflection of contemporary
support for labour welfare. It can work well if both the parties have an
identical aim in view; that is, higher production through better welfare. And
this will encourage labour's partcipation in welfare programmes.
PRINCIPLES FOR SUCCESSFUL IMPLEMENTATION OF

WELFARE ACTIVITIES
The success of welfare activities depends on the approach which has been
taken into account in providing such activities to the employees. Welfare
policy should be guided by idealistic morale and human value. Every effort
should be made to give workers/ employees some voice in the choice of
welfare activities so long as it does not amount to dictation from workers.
There are employers who consider all labour welfare activities as distasteful
legal liability. There are workers who look upon welfare activities in terms of
their inherent right. Both parties have to accept welfare as activities of mutual
concern. Constructive and lasting Progress in the matter of social justice can
be achieved only if welfare activities are accepted as essential factors in the
progress of the business organization Labour welfare is dependent on certain
basic principles. The following are the principles on which successful
implementation of welfare programmes depends :
Adequacy of Wages: Labour welfare measures cannot be a substitute for

wages. Workers have a right to adequate wages. But high wage rates alone
cannot create healthy atmosphere, nor bring about a sense of commitment on
the part of workers. A combination of social welfare, emotional welfare and
economic welfare together would achieve good results.
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Social Liability of Industry: Industry, according to this principle, has an
obligation or duty towards its employees to look after their welfare. The
constitution of India also emphasizes this aspect of labour welfare.
Impact on Efficiency: This plays an important role in welfare services, and

is based on the relationship between welfare and efficiency, though it is
difficult to measure this relationship. Programmes for housing, education
and training, the provision of balanced diet and family planning measures
are some of the important programmes of labour welfare which increases the
efficiency of the workers, especially in underdeveloped or developing
countries.
Increase in Personality: The development of the human personality is given

here as the goal of industrial welfare which, according to this principle,
should counteract the baneful effects of the industrial system. Therefore, it is
necessary to implement labour welfare services. Both inside and outside the
factory, that is, provide intra-mural and extra-mural labour welfare services.
Totality of Welfare: This emphasizes that the concept of labour welfare

must spread throughout the hierarchy of an organization. Employees at all
levels must accept this total concept of labour welfare programme will never
really get off the ground.
Co-ordination or Integration: This plays an important role in the success

of welfare services. From this angle, a co-ordinate approach will promote a
healthy development of the worker in his work, home and community. This
is essential for the sake of harmony and continuity in labour welfare
services.
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Democratic Values: The co-operation of the worker is the basis of this
principle. Consultation with, and the agreement of workers in, the
formulation and implementation of labour welfare services are very
necessary for their success. This principle is based on the assumption that
the worker is "a mature and rational individual." Industrial democracy is the
driving force here. Workers also develop a sense of pride when they are
made to feel that labour welfare programmes are created by them and for
them.
Responsibility: This recognizes the fact that both employers and workers
are responsible for labour welfare. Trade unions, too, are involved in these
programmes in healthy manner, for basically labour welfare belongs to the
domain of trade union activity. Further, when responsibility is shared by
different groups, labour welfare work becomes simpler and easier.
Accountability: This may also be called the Principle of Evaluation. Here,

one responsible person gives an assessment or evaluation of existing welfare
services on a periodical basis to a higher authority. This is very necessary,
for then one can judge and analyze the success of labour welfare
programmes.
Timely: The timeliness of any service helps in its success. To identify the
labour problem and to discover what kind of help is necessary to solve it and
when to provide this help are all very necessary in planning labour welfare
programmes. Timely action in the proper direction is essential in any kind of
social work.
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EMPLOYEE PROTECTION AND WELFARE
STATUTORY WELFARE MEASURES:
The preamble to our Indian Constitution promises justice - social, economic

and political. It also stresses Equality of status and of opportunity. Article 23
of the Constitution prohibits traffic in human beings and forced labour.
Article 24 prohibits employment of children in factories. The article 38 and
39 spelt under Directive Principles of State Policy are now enforceable as
per the dictums laid by our Supreme Court.
Constitution of India, Article 38: State to secure a social order

for the promotion of welfare of the people:
• 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.
• The State shall, in particular, strive to minimize the inequalities in
income, and endeavor to eliminate inequalities in status, facilities and
opportunities, not only amongst individuals but also amongst groups of
people residing in different areas or engaged in different vocations.
Constitution of India, Article 39: Certain principles of policy to

be followed by the State. -
The State shall, in particular, direct its policy towards securing -
• That the citizens, men and women equally, have the right to an
adequate means to livelihood;
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• That the ownership and control of the material resources of the
community are so distributed as best to sub serve the common good;
• That the operation of the economic system does not result in the
concentration of wealth and means of production to the common
detriment ;
• That there is equal pay for equal work for both men and women;
• That the health and strength of workers, men and women, and the
tender age of children are not abused and that citizens are not forced by
economic necessity to enter avocations unsuited to their age or strength
• Those children are given opportunities and facilities to develop in a
healthy manner and in conditions of freedom and dignity and that
childhood and youth are protected against exploitation and against moral
and material abandonment.
Through social security and social justice are spelt in our Constitution, they
are never put into practice thanks to our Executives who only pretend to
implement the programmes of the State. Some of the important Statutory
Welfare measures given by the government are as follows:
(i) The Factories Act of 1948
(ii) The Employees State Insurance Act 1948
(iii) The payment of Wages Act 1936
(iv) The Workmen's Compensation Act 1923
(v) The Employees' Provident Funds and Miscellaneous Provisions Act
1952.
(vi) The Payment of Gratuity Act, 1962
(vii) The Maternity Benefit Act, 1961
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FACTORIES ACT OF 1948
Purpose of this Act: An act to consolidate and amend the law regulating
labour in factories.The Factories Act is meant to provide protection to the
workers from being exploited by the greedy business employments and
provides for the improvement of working conditions within the factory
premises. The main function of this act is to look after the welfare of the
workers, to protect the workers from exploitations and unhygienic working
conditions, to provide safety measurers and to ensure social justice.
Sections 11 to 20 of the Factories Act deal about Health.
HEALTH
Section 11: Cleanliness
Section 12: Disposal of wastes and effluents
Section 13: Providing proper ventilation and maintaining proper temperature
Section 14: Removal of Dust and fume
Section 15: Providing artificial humidification
Section 16: No Overcrowding
Section 17: Proper Lighting
Section 18: Providing pure Drinking water
Section 19: Providing Latrines and urinals
Section 20: Providing Spittoons
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SAFETY
Section 21: Proper Fencing of machinery
Section 22: Precautions - Work on or near machinery in motion
Section 23: No Employment of young persons on dangerous machines
Section 24: Providing Striking gear and devices for cutting off power
Section 25: Precautions near Self-acting machines
Section 26: Casing of new machinery
Section 27: Prohibition of employment of women and children near cotton
openers
Section 28: Providing Hoists and lifts
Section 29: Provision for Lifting machines, chains, ropes and lifting tackles
Section 30: Protection near revolving machinery
Section 31: Protection near Pressure plant
Section 32: Provision for Floors, stairs and means of access
Section 33: Providing and precautions near Pits, sumps openings in floors,
etc.
Section 34: No Excessive weights
Section 35: Protection of eyes
Section 36: Precautions against dangerous fumes, gases, etc
Section 36A: Precautions regarding the use of portable electric light
Section 37: Explosive or inflammable dust, gas etc.
Section 38: Precautions in case of fire
Section 39: Power to require specifications of defective parts or tests of
stability
Section 40: Safety of buildings and machinery.
Section 40A: Maintenance of buildings
Section 40B: Appointment of Safety Officers
33
WELFARE
Section 42: Providing Washing facilities
Section 43: Providing Facilities for storing and drying clothing
Section 44: Providing Facilities for sitting
Section 45: First-aid appliances to be kept.
Section 46: Canteens at subsidized rates.
Section 47: Shelters, rest rooms and lunch rooms for workmen.
Section 48: Crèches for babies of working women.
Section 49: Appointment of Welfare officers.
It is the duty of the Chief Inspector of Factories to ensure enforcement of all
the above provisions of the Factories Act in respect of safety, health and
welfare of employees.
THE WORKMEN'S COMPENSATION ACT 1923

Purpose of the Act: An Act to provide for the payment of certain classes of
employers to their workmen of compensation for injury by accident. The
workmen's compensation Act 1923 is one of the earliest pieces of labour
legislation. This act encompasses all cases of accidents arising out of and in
course of employment. The rate of Compensation to be paid in a lumpsum is
determined by a schedule provided in the act proportionate to the extent of
injury and the loss of earning capacity. The younger the age of he worker
and higher the wage the greater is the compensation. The Act provides the
formula for calculating the compensation. The injured person can claim
compensation and in the case of death, the compensation is claimed by
dependents of the deceased. This law applies to the organized as well as
unorganized sectors that are not covered by the E.S.I. scheme. The following
34
definitions and the sections of law are presented for the students to take note
of them.
Administration: The act is administered by the State Governments which
appoint Commissioners for this purpose under Sec.20 of the Act.
Benefits: Under the Act, compensation is payable by the employer to
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. If the workman dies, the compensation is to be paid to his dependants.
The Act distinguishes among three types of injuries: permanent total
disablement, permanent partial disablement and temporary disablement.
The amount of compensation to be paid on the death or disablement of
workman is given in Fourth Schedule of the Act and varies according to his
wages, the type of injury and age. It is an obligation upon the employer to
make the payment of compensation within one month from the date on
which it falls due.
Sources of Funds: All compensation under the act is payable by the
employer.
THE PAYMENT OF WAGES ACT:

The Payment of Wages Act was enacted as early as 1936 during the colonial
rule. The purpose of this act is to regulate payment of wages. This insists on
the payment of wages by the seventh day or the tenth day of the succeeding
month and in case of weekly payment the last day of the week.
Section 3: Responsibility for payment of wages. - Every employer shall be
responsible for the payment to person employed by him of all wages
required to be paid under this Act. Provided that, in the case of persons
employed (otherwise than by a contractor) -
35
• In factories, if a person has been named as the manager of the factory
under clause of sub-section (1) of section 7 of the Factories Act, 1948 (63
of 1948)
• In industrial or other establishments, if there is a person responsible
to the employer for the supervision and control of the industrial or other
establishments
• upon railways (otherwise that in factories), if the employer is the
railway administration and the railway administration has nominated a
person in this behalf for the local area concerned, the person so named,
the person so responsible to the employer, or the person so nominated, as
the case may be (shall also be responsible) for such payment.
Section 4: Fixation of wage-periods:
• Every person responsible for the payment of wages under section 3
shall fix periods (in this Act referred to as wage-periods) in respect of
which such wages shall be payable.
• No wage-period shall exceed one month.
Section 5: Time of payment of wages. –
The wages of every person employed upon or in
• Any railway, factory or {industrial or other establishment} upon or in
which less than one thousand persons are employed, shall be paid before
the expiry of the seventh day.
• Any other railway, factory or {industrial or other establishment},
shall be paid before the expiry of the tenth day, after the last day of the
wage-period in respect of which the wages are payable:
(2) Where the employment of any person is terminated by or on behalf of
the employer, the wages,earned by him shall be paid before the expiry of the
second working day from the day on which his employment is terminated.
36
(3) The State Government may, by general or special order, exempt, to such
extent and subject to such conditions as may be specified in the order, the
person responsible for the payment of wages to persons employed upon any
railway (otherwise than in a factory) from the operation of this section in
respect of the wages of any such persons or class of such persons.
(4) Save as otherwise provided in sub-section (2), all payments of wages
shall be made on a working day.
THE EMPLOYEES’ PROVIDENT FUND ACT 1952

The purpose of this Act: An Act to provide for the institution of Provident
Funds, pension funds and deposit linked fund for employees in factories and
other establishments. Contributions of 10% of the wages are paid by the
employer and another 10% by the employees. This amount is deposited with
the government which pays an interest. This Act also now has provisions for
pension scheme.
Administration: The employees Provident Funds, Pension and Insurance
Schemes framed under the Act are administered by a tripartite Central Board
of trustee, consisting of representatives of employers and employees and
persons nominated by the Central and State Governments.
Benefits: The act has made schemes for 3 types of benefits, provident fund,
family pension and deposit linked insurance. Family pension is payable to
the widow or widower up to the date of death or re-marriage whichever is
earlier. In the absence of the widow or the widower it is payable to the eldest
surviving unmarried daughter until she attains the age of 21 years or marries
whichever is earlier. The dependents of the employee also receive an
additional amount known as the deposit linked insurance which is equivalent
to the average balance lying to the credit of the employee on his provident
37
fund during the preceding 3 years, subject to a maximum of Rs 10000
provided that such employee has kept a minimum average balance of Rs.
1000 in the provident fund.
Source of Funds: Here both the employer and the employee are required to
contribute the provident fund every month at 8.33% of the basic wages,
dearness allowance and retaining allowance. An employee can make a larger
contribution up to 10% but there is no compulsion for the employer to make
a matching contribution.
THE PAYMENT OF GRATUITY ACT, 1972
Purpose of the Act: An act to provide for scheme for the payment of
gratuity to employees engaged in factories, mines, oil fields, plantations,
ports, railway companies, shops or other establishments and matters
connected therewith or incidental thereto. Gratuity shall be payable to an
employee on
the termination of his employment after he has rendered continuous service
for not less than five years.
(a) On his superannuation
(b) On his retirement or resignation
(c) On his death or disablement
For every completed year of service or part thereof in excess of six months
the employer shall pay gratuity to an employee at the rate of 15 days’ wages
based on the rate of wages last drawn by the employee concerned.
Section 4: Payment of gratuity. –
38
(1) Gratuity shall be payable to an employee on the termination of his
employment after he has rendered continuous service for not less than five
years:
(a) On his superannuation, or
(b) On his retirement or resignation, or
(c) On his death or disablement due to accident or disease;
Provided that the completion of continuous service of five years shall not be
necessary where the termination of the employment of any employee is due
to death or disablement; provided further that in the case of death of the
employee, gratuity payable to him shall be paid to his nominee or, if no
nomination has been made, to his heirs, and where any such nominees or
heirs is a minor, the share of such minor, shall be deposited with the
controlling authority who shall invest the same for the benefit of such minor
in such bank or other financial institution, as may be prescribed, until such
minor attains majority.
(2) For every completed year of service or part thereof in excess of six
months, the employer shall pay gratuity to an employee at the rate of fifteen
days' wages based on the rate of wages last drawn by the employee
concerned; provided that in the case of a piece-rated employee, daily wages
shall be computed on the average of the total wages received by him for a
period of three months immediately preceding the termination of his
employment, and, for the purpose, the wages paid for any overtime work
shall not be taken into account; provided further that that in the case of {an
employee who is employed in a seasonal establishment and who is not so
employed throughout the year} the employer shall pay the gratuity at the rate
of seven days' wages for each season.
39
(3) The amount of gratuity payable to an employee shall not exceed {three
lakhs and fifty thousand} rupees.
(4) For he purpose of computing the gratuity payable to an employee who is
employed, after his disablement, on reduced wages, his wages for the period
preceding his disablement shall be taken to be the wages received by him
during that period, and his wages for the period subsequent to his
disablement shall be taken to be the wages as so reduced.
(5) Nothing in this section shall affect the right of an employee to receive
better terms of gratuity under any award or agreement or contract with the
employer.
(6) Notwithstanding anything contained in sub-section
(a) The gratuity of an employee, whose services have been terminated for
any act, willful omission or negligence causing any damage or loss to, or
destruction of, property belonging to the employer' shall be forfeited to the
extent of the damage or loss so caused.
(b) The gratuity payable to an employee {may be wholly or partially
forfeited} -
(i) If the services of such employee have been terminated for his riotous or
disorderly conduct or any other act of violence on his part, or
(ii) If the services of such employee have been terminated for any act which
constitutes an offence involving moral turpitude, provided that such offence
is committed by him in the course of his employment.
THE MATERNITY BENEFIT ACT, 1961

Purpose of the Act: An Act to regulate the employment of women in
certain establishments for certain period before and after child-birth and to
provide for maternity benefit and certain other benefits.
40
Section 4: Employment of or work by, women, prohibited during certain
periods
(1) No employer shall knowingly employ a woman in any establishment
during the six weeks immediately following the day of her delivery,
(miscarriage or medical termination of pregnancy).
(2) No women shall work in any establishment during the six weeks
immediately following the day of her delivery (miscarriage or medical
termination of pregnancy).
(3) Without prejudice to the provisions of section 6, no pregnant women
hall, on a request being made by her in his behalf, is required by her
employer to do during the period specified in subsection
(4) Any work which is of an arduous nature or which involves long hours of
standing, or which in any way is likely to interfere with her pregnancy or the
normal development of the foetus, or is likely to cause her miscarriage or
otherwise to adversely after her health.
(4) The period referred to in sub-section (3) shall be -
(a) The period of one month immediately proceeding the period of six
weeks, before the date of her expected delivery;
(b) Any period during the said period of six weeks for which the pregnant
woman does not avail of leave of absence under section 6.
Section 5: Right to payment of maternity benefits:
(1) Subject to the provisions of this Act, every woman shall be entitled to,
and her employer shall be liable for, the payment of maternity benefit at the
rate of the average daily wage for the period of her actual absence, that is to
say, the period immediately preceding the day of her delivery, the actual day
of her delivery and any period immediately following that day.
41
(2) No woman shall be entitled to maternity benefit unless she has actually
worked in an establishment of the employer from whom she claims
maternity benefit, for a period of not less than {eighty days} in the twelve
months immediately preceding the date of her expected delivery. Provided
that the qualifying period of {eighty days} aforesaid shall not apply to a
woman who has immigrated into the State of Assam and was pregnant at the
time of the immigration.
(3) The maximum period for which any woman shall be entitled to maternity
benefit shall be twelve weeks of which not more than six weeks shall
precede the date of her expected delivery. Provided that where a woman dies
during this period, the maternity benefit shall be payable only for the days up
to and including the day of her death ; Provided further that where a woman,
having been delivered of a child, dies during her delivery or during the
period immediately following the date of her delivery for which she is
entitled for the maternity benefit, leaving behind in either case the child, the
employer shall be liable for the maternity benefit for that entire period but if
the child also dies during the said period, then, for the days up to and
including the date of the death of the child.
EMPLOYEES STATE INSURANCE ACT 1948

Purpose of the Act: This Act covers all workers whose wages do not
exceed Rs 1600 per month and who are working in factories, other than
seasonal factories, run with power and employing 20 or more workers. The
coverage can be extended by the State Government with the approval of the
Central Government.
42
Administration: The Act is administered by the E.S.I Corporation, an
autonomous body consisting of representatives of the Central and State
Governments, employers, employees, medical profession and Parliament.
Benefits: The Act, which provides for a system of compulsory insurance, is
a landmark in the history of social security legislation in India. An insured
person is entitled to receive the following types of benefits:
 Medical Benefit
 Sickness Benefit
 Maternity Benefit
 Disablement benefit
 Dependant’s Benefit
 Funeral benefit
Sources of Funds: the Act provides for the setting up of the Employees
State Insurance fund from the contributors received from employers and
employees and various grants, donations and gifts received from Central or
State Governments, local authorities and individuals. The rate of employer’s
contribution is 5% of the wage bill and that of the employee’s contribution is
2.25%.
43
VOLUNTARY WELFARE MEASURES:
These are some of the voluntary welfare measures given by the employer to
the employees.
They are as follows:
 Housing facilities
 Transportation facilities
 Medical facilities
 Cultural facilities
 Recreation facilities
 Consumers co-operative society
 Loans and various advances
 Leave travel concession
 Workers education
 Schools for the employee’s children
 Gifts to the employees holiday games
 Labour welfare fund
 Vehicle stand for parking
 Libraries
 Gym and health club
 Cafeterias
44
CHAPTER 2
RESEARCH DESIGN
INTRODUCTION
Welfare of the employee is the welfare of the industry. They rise or sink
together; the country’s progress is bound up with the progress of industry
and of employee. A worker’s wellbeing inside as well as outside the factory
is mainly out of employer’s concern, because it has a direct bearing on the
efficiency of his work and job satisfaction. It is the right of the worker as a
human being to get the minimum amenities, which in turn contributes to a
very large extent towards production efficiency.
Employee Welfare is a comprehensive term including various services,
benefits and facilities offered to employees by the employer. Welfare
measures may also be provided by the government, trade unions and non-
government agencies in addition to the employer. The welfare amenities are
extended in addition to normal wages and other economic rewards available
to employees as per the legal provisions. The basic purpose of employee
welfare is to enrich the life of employees and keep them happy and
contented. A study of employee welfare would benefit an organisation to
improve its productivity.
They are also the best kind of investment for employees as they promote
industrial efficiency and provide the workers facilities and amenities, which
enable the workers employed to perform their work in healthy and congenial
climate.
STATEMENT OF THE PROBLEM

45
The liberalization, privatization and globalization of Indian economy in the
last few years have presented unprecedented challenges to the decision
makers in government, industry and service sectors to compete in the global
market with competitive edge necessitates the industry to improve its
productivity and quality of products.
This objective cannot be achieved unless and until the workers are highly
satisfied with the working environment and welfare facilities, which have an
important impact in industrial relations.
BHEL is very eager to find out whether the present welfare facilities given
to the employee is satisfactory and is it affecting their performance in the
organization.
The study will help them to find out if they are fulfilling the needs of
employees and if they are following the legal provisions.
Hence, this project is undertaken to know the present welfare facilities at
BHEL and an assessment on their performance with reference to the welfare
measures adopted and to suggest suitable measures to further enhance them.
Unfortunately workers needs are high but employer’s will and capabilities
are low. There should be a balance between the two.
In this aspect, not only the statutory provision should be compiled with but
the employers must also strive to provide certain voluntary and mutual
welfare measures to ensure employee satisfaction. Therefore a study of the
statutory, non-statutory and mutual measures provided by the organization
and the satisfaction level of employees towards these welfare measures and
its impact on job satisfaction, but also to draw suggestions and conclusions
which would enable the organization to make improvements in its welfare
measure if necessary
OBJECTIVES OF THE STUDY
46
In this study an attempt has been made to examine the welfare measures
offered by BHEL to its employees and its impact on job satisfaction. The
specific objectives of the study are:
1. To assess the welfare measures adopted by BHEL
2. To analyze the effect of welfare on employee performance
3. To assess the employee satisfaction with regard to welfare facilities
4. To make suitable suggestions and recommendations with a view to
improve the existing welfare measures.
SCOPE OF THE STUDY

The scope of the study is to understand the present welfare measures adopted
in the organization and how BHEL can enhance the performance of
employees by adopting better welfare measures. The study is extended only
to the respondents working in the BHEL, Ramachandrapuram, and
Hyderabad. It does not cover all the employees working in BHEL. The study
covers only some of the levels in the organization. The welfare measures
studied includes both statutory, non-statutory measures and mutual welfare
measures. This study also helps the organization to make necessary changes
in their welfare programs
CHAPTER 3
47
Company Profile
THE COMPANY PROFILE
Established in the mid fifties, Bharat Heavy Electricals Limited-BHEL has

today emerged as the largest engineering and manufacturing enterprise of its
kind in India and ranks amongst the top ten power generation equipment
manufacturers in the world.
BHEL has diversified its product base over the years and today caters to the
needs of almost all the key sectors of the economy. In addition to the power
generation equipment , BHEL products cater to a wide spectrum of
customers encompassing various fields of operation, like Fertilizers &
Petrochemicals,Refineries,Oil Exploration and production, steel and metals,
cement ,sugar and paper plants, transportation and non-conventional energy
sources etc.
With a massive network of 14 manufacturing Units located at various

important centers all over India, BHEL manufactures almost all critical high
technology products required for power sector like Gas Turbines, Steam
Turbines, Turbogenerators, Boilers, Pumps and Heat exchangers, Pulverisers
and electrical switch gears.
With strategic alliances and technological collaborations with world leaders

for its products, BHEL's technological strength is today on par with the best
in the world
48
BHEL -Hyderabad (Ramachandrapuram) Unit:
As a member of the prestigious 'BHEL family', BHEL-Hyderabad has
earned a reputation as one of its most important manufacturing units,
contributing its lion's share in BHEL Corporation's overall business
operations.
The Hyderabad unit was set up in 1963 and started its operations with
manufacture of Turbo-generator sets and auxiliaries for 60 and 110 MW
thermal utility sets.
Over the years it has increased its capacity range and diversified its
operations to many other areas. To day, a wide range of products are
manufactured in this unit, catering to the needs of variety of industries like
Fertilizers & Chemicals, Petrochemicals & Refineries , Paper, sugar, steel ,
etc.
Major products of our unit’s manufacture include the following.
• Gas turbines
• Steam turbines
• Compressors
• Turbo generators
• Heat Exchangers
• Pumps
• Pulverisers
• Switch Gears
• Gear Boxes & Oil Rigs
49
What it Manufactures?
BHEL manufactures over 180 products under 30 major product groups and
caters to design, engineering, manufacture, erection and commissioning of
boilers, core sectors of the Indian Economy viz., Power Generation &
Transmission, Industry, Transportation, Telecommunication, Renewable
Energy, etc.
The wide network of BHEL's 14 manufacturing divisions, four Power Sector

regional centers, over 100 project sites, eight service centers and 18 regional
offices, enables the Company to promptly serve its customers and provide
them with suitable products, systems and services -- efficiently and at
competitive prices.
The high level of quality & reliability of its products is due to the emphasis
on design, engineering and manufacturing to international standards by
acquiring and adapting some of the best technologies from leading
companies in the world, together with technologies developed in its own
R&D centers.
As an engineering conglomerate, BHEL offers over a wide spectrum of

products and services for core sectors including power generation,
transmission and distribution; transportation; and oil and gas as well as the
supply of non- conventional energy systems.
BHEL provides customers worldwide with complete Custom- designed

Boiler Island Solutions for power and process steam generation covering
boiler house auxiliaries and all associated systems and sub-system
50
VISION
A World-class Engineering Enterprise Committed to enhancing
Stakeholder Value.
MISSION
To be an Indian Multinational Engineering Enterprise providing Total

Business Solutions through Quality Products, Systems and Services in the
fields of Energy, Industry, Transportation, Infrastructure and other potential
areas.
VALUES
1. Zeal to Excel and Zest for Change
2. Integrity and Fairness in all Matters
3. Respect for Dignity and Potential of Individuals
4. Strict Adherence to Commitments
5. Ensure Speed of Response
6. Foster Learning, Creativity and Team-work
7. Loyalty and Pride in the Company
51
INDUSTRY PROFILE OF BHEL
Power
B.H.E.L. manufacture a wide range of product and systems for thermal,

nuclear, gas and hydro based power paints to meet customer requirement for
power generation, transmission, and utilization. B.H.E.L built power
generation sets aiready account for nearly two, third of the overall installed
capacity in India.
Transportation
BHEL manufactures a vast range of transmission equipment such as

transformers, rectors, switcher and control and relay panel, insulators,
capacitors and instruments transformer sets.
Most of the trains operated by Indian Railways, including the metro in

Calcutta, are equipped with BHEL’s traction electrics and traction control
equipment.
The Company supplies electric locomotives to Indian Railways and diesel

shunting locomotives to various industries. 5000/4600 hp AC/DC
locomotives developed and manufactured by BHEL have been supplied to
Indian Railways. Battery-powered road vehicles are also manufactured by
the Company. BHEL also supplies traction electrics and traction control
equipment for electric locos, diesel-electric locos, and EMUs/DEMUs to the
Railways
52
Industries
BHEL is a major contributor of equipment & systems to industries; cement,
sugar, fertilizers, refineries, petrochemicals, steel, paper, etc. The range of
systems & equipment supplied includes : captive power plants, DG power
plants, high-speed industrial drive turbines, industrial boilers and auxiliaries,
waste heat recovery boilers, gas turbines, heat exchangers and pressure
vessels, centrifugal compressors, electrical machines, pumps, valves,
seamless steel tubes and process controls. The Company is a major producer
of large-size thirstier devices.
It also supplies digital distributed control systems for process industries, and
control & instrumentation systems for power plant and industrial
applications.
BHEL is the only company in India with the capability to make simulators
for power plants, defense and other applications.
The Company has commenced manufacture of large desalination plants to

help augment the supply of drinking water to people
Transmission
BHEL also supplies a wide range of transmission products and systems of up

to 400 kV class. These include high-voltage power & instrument
transformers, dry-type transformers, shunt & series reactors, 33 kV gas-
insulated sub-station, insulators. For economic transmission of bulk power
over long distances, High Voltage Direct Current (HVDC) systems are
supplied. Series and shunt compensation systems, to minimize transmission
53
losses, have also been supplied. Thermal sets with super critical parameters
up to 1000 MW unit rating and gas turbine-generator sets of up to 250 MW
units rating. Cogeneration & combined-cycles plants have been introduced
to achieve higher plant efficiencies. To make efficient use of the high-ash-
content coal available in India,
BHEL supplies circulating fluidized bed combustion boilers to both thermal

and combined-cycle power plants.
The Company manufactures 235/250 MW nuclear turbine generator sets,

and has commenced production of 500 MW nuclear turbine generator sets.
In all, Orders for more than 700 utility sets of thermal, hydro, gas and
nuclear have been placed on the Company as on date. The power plant
equipment manufactured by BHEL is based on contemporary technology
comparable to the best in the world, and is also internationally competitive.
The Company has proven expertise in Plant performance Improvement

through renovation, modernization and updating of a variety of power plant
equipment, besides specialized know-how of residual life assessment, health
diagnostics and life extension of plants.
Oil and gas

BHEL is making significance contribution towards development oil &gas
industries in the country in the both for one shore.
54
REVIEW OF LITREATURE
I. Using employee volunteering programs to develop leadership skills

Author(s): Christine Bell
Journal: Development and Learning in Organizations
The purpose of the paper was to examine the use of employee volunteering
programs to develop leadership skills.
During the study it was found that employee volunteering programs provide
a potentially rich source of learning for team leaders and other volunteers.
Such a strategy can encourage employees to recognize learning opportunities
for their own leadership skills.
II. Moving towards a “learning-based organization”

The purpose of the paper was to explore employee perceptions of the
development of a learning culture in a medium-sized manufacturing
company aspiring to become a learning organization.
The company was using learning to develop its competitive edge, and
employees were at various stages of understanding and accepting the need
for learning and competence development on the job to sustain and develop
the company. During the study a tension was detected between the
company's objectives and the aspirations of some employees, but the
majority appeared to accept the overt learning policy as good for them and
the company. This study contributes towards a better understanding of the
perceptions of employees in the development of a learning organization,
rather than from the organizational or management perspectives that tend to
dominate the literature.
55
III. The impact of downsizing on employees' affective commitment
Author(s): Jaewon Lee, J. Martin Corbett
Journal: Journal of Managerial Psychology
To examine the mechanisms through which downsizing affects employees'
affective commitment to the organization
The results show that the more severe the extent of downsizing,
the lower employees' affective commitment to the organization. Moreover,
downsizing has an impact on employees' affective commitment to the
organization through several of the daily work experiences of employees.
Thus, downsizing affects employees' affective commitment to the
organization both directly and indirectly. However, its indirect impact is
much stronger.
Sympathetic management of downsizing can minimize the negative impact
on the affective commitment of surviving employees.
IV. How employers can ease pain of job losses

The purpose of this paper is to examine how employers can ease the job loss
situation for employees.
The paper finds that job counseling and training programs
may influence different levels in the labor market. At the macro level, such
programs can be vehicles shifting human resources to where they are needed
in the labor market. On the organizational level, they can enhance human
resource utilization, decrease perception of psychological contract breach,
and minimize internal strains and organizational conflict. On the individual
level, they appear to be an efficient way for dealing with the dismissed or
remaining workers and helping them in their quest for a new job or
56
retraining. Consequently, many of the psychological, familial, and social
disturbances brought on by the dismissals, or the organizational crisis, may
be avoided.
Methodology
a) Database:
This study is based on both primary and secondary data. A structured
interview schedule would be used to collect the primary data from the
employees of BHEL. The secondary data for the study would be collected
from annual reports and records of BHEL including published material on
the topic.
b) Sample design:
Stratified random sampling procedure would be followed to select the
respondents. A required data would be collected through a schedule. The
sample size is 50 and the schedules had been given to the employees in
BHEL ramachandrapuram branch.
c) Data Analysis:
Appropriate but simple analytical methods like cross tabulation, pie-charts,
bar charts, chi-square tests, etc would be employed to analyze and interpret
the data collected.
Limitations
The limitations in this study are:
1. The research cannot be generalized because findings are relevant to
BHEL.
2. Details regarding monetary remuneration by the respondents may not be
accurate.
3. The respondents were not very interested in filling the schedules
57
Expectations from the study
 To study and learn more about the welfare measures and how they are
utilized in the organization
 To know and understand to what level the performance is affected by the
welfare measures
 To gain an insight into the legal provisions for welfare measures and how
well they have been followed by BHEL.
Data collection:
Primary data:
Collected through responses of employee related to the topic with the help of
the structured questionnaire.
Secondary data:
Collected through brochures and web site
Sampling:
Population-Employees of BHEL, Hyderabad
Sample size-50
58
Data Analysis & Inference
1) How would you rate your satisfaction level with regard to the
following welfare measures?
a) ‘Rest room facilities given to the respondent’
Satisfaction level Number of Percentage
respondents
Highly Satisfactory 2 4%
Satisfactory 16 32%
Not aware 0 0
Not satisfactory 27 54%
Highly not satisfactory 5 10%
Total 50 100
Source —Primary data
Analysis:
The table shows that 54% of the respondents are not satisfied
with the rest room facility given to them. And only 4% is highly
satisfied with the rest room facility.
60
50
40
30 No of respondent
percentage
20
10
0
HS S NA NS HNS
HS-highly satisfied S- satisfied NA- not aware NS-not satisfied

HNS- highly not satisfied
Inference:
The analysis shows that the respondents are not at all satisfied
with the rest room facility provided to them. As rest room is one of the
main and important facilities in an organization.
59
b) ‘Opinion about the drinking water facility’

respondents
Satisfactory 48 96%
Not aware -- --
Not satisfactory -- --
Total 50 100%
Analysis:
The table shows that 96% of the respondents are very much
satisfied with the drinking water facility provided to the respondents.
100
80
60
no of respondent
40 percentage
20
0
HS S NA NS HNS

Inference:
Drinking water facility provided by BHEL is mostly satisfied by

the respondents.
60
c) ‘Opinion about Medical and first aid facilities provided to the
respondents’

respondents
Highly Satisfactory -- --
Satisfactory 46 92%
Not aware -- --
Highly not satisfactory -- --
Total 50 100%
Analysis:
The table shows that 92% if the respondents are satisfied with
the medical and first aid facilities provided by the company but there
are 8 % of the respondents who are not satisfied with the medical
facilities given to them.
100
80
60
no o respondent
40 percentage
20
0
HS S NA NS HNS

Inference:
The analysis shows that most of the respondents are satisfied

with the medical facilities provided by the company but the company
also has to verify why the other 8% of the respondents are not satisfied
and verify them.
61
D) ‘The opinion regarding the canteen facilities provided to the
respondents’

respondents
Satisfactory 25 50%
Not aware -- --
Total 50 100%
Analysis:
The table shows that 50% of the respondents are satisfied about
the canteen facility in the organization and 30% of the respondents are
not satisfied with the canteen facility.
50
40
30
No of respondent
20 percentage
10
0
HS S NA NS HNS

Inference:
As I have been a part of the organization for a month during the
project I found out that the canteen in the organization provides good
services and good quality food.
62
e) ‘Opinion about the crèche facility provided to the
respondents’

respondents
Satisfactory -- --
Not aware 44 88%
Total 50 100%
Analysis:
The table shows that 88% of the respondents are not aware of the
crèche facility and 10% of the respondents are not satisfied with the
facility.
90
80
70
60
50
No of respondent
40
percentage
30
20
10
0
HA S NA NS HNS

Inference:
BHEL do not provide crèche facility to the respondents and if

they provide it would be of great help to the female employees in the
organization.
63
f) ‘Opinion about the occupational safety provided to the
respondent’

respondents
Satisfactory 46 92%
Not aware -- --
Total 50 100%
Analysis:
The table shows that 92% of the respondents are satisfied with
the occupational safety provided by BHEL. Only 4 respondents are not
satisfied with the occupational safety.
100
90
80
70
60
50 no of respondent
40 percentage
30
20
10
0
HS S NA S HNS

Inference:
In the analysis it is shown that most of the employees except a few are
satisfied with the occupational safety. So it means most of the
64
employees are very secure about their job and very comfortable with
that.
2) How would you rate your satisfaction level with regard to

the following welfare measures?
a) ‘Opinion about earned leave given to respondents’

respondents
Satisfactory 39 78%
Not aware -- --
Total 50 100%
Analysis:
The table shows that 78% of the respondents are satisfied with the
earned leave provided to them and 22% of the respondents are highly
satisfied with the earned leave.
80
70
60
50
40 No of respondent
30 percentage
20
10
0
HS S NA NS HNS

Inference:
65
There are no respondent who is not satisfied with the earned
leave. Every employee is very much satisfied with the earned leave
provided to them.
66
b) ‘Opinion about Sick leave given to the respondents’

respondents
Satisfactory 44 88%
Not aware -- --
Total 50 100%
Analysis:
the sick leave provided by the company. And none of the respondents
are not satisfied with the facility. It shows that most of the respondents
are satisfied with the sick leave.
90
80
70
60
50
No of respondent
40
percentage
30
20
10
0
HS S NA NS HNS

Inference:
Most of the respondents are satisfied with the sick leave, so it

shows that BHEL is very liberal in giving the sick leaves and they just
have to inform the company with the leave notice.
67
c) ‘Opinion about the paternity leave provided to the male
respondents’

respondents
Satisfactory 13 26%
Not aware 35 70%
Total 50 100%
Analysis:
the paternity leave provided by the company. And 70% of the
respondents are unaware about this facility.
70
60
50
40
no of respondent
30 percentage
20
10
0
HS S NA NS HNS
. HS-highly satisfied S- satisfied NA- not aware NS-not satisfied

Inference:
The male respondents are not satisfied with the paternity leave
provided to them.
68
d) ‘Opinion about the casual leave provided to the
respondents’

respondents
Satisfactory 44 88%
Not aware -- --
Total 50 100%
Analysis :
In the table it shows that 88%of respondent are satisfied with the
casual leave provided to them and 12 % of respondent are highly
satisfied with the casual leave provided to them.
90
80
70
60
50
no of respondent
40
percentage
30
20
10
0
HS S NA NS HNS

Inference:
None of the respondents are dissatisfied with the casual leave;

this is a great achievement to the organization.
69
70
e) ‘Opinion about the medical benefits given to the
respondents’

respondents
Satisfactory 38 76%
Not aware -- --
Total 50 100%
Analysis:
In the table 76% of the respondents are satisfied with the
medical benefits provided to them. And 6% of the respondents are not
satisfied with the medical benefits given to them.
80
70
60
50
40 no of respondents
30 percentage
20
10
0
HS S NA NS HNS

Inference:
As medical benefits are very important to any employee in the
organization, the employer has to give any medical benefits, which is
required to be given to them. The company has to just verify the
dissatisfied employees with the medical benefits.
71
f) ‘Opinion about leave travel allowance provided to the
respondents’

respondents
Satisfactory 28 56%
Not aware 3 6%
Total 50 100%
Analysis:
In the table it is shown that 56% of the respondents are satisfied
with the leave travel allowance provided to them, but 36% of the
respondents are not satisfied with the allowance provided to them and
6% of the respondents are not aware of this allowance.
60
50
40
30 No of respondent
percentage
20
10
0
HS S NA NS HNA

Inference:
The analysis shows that most of the respondents are really

satisfied with the allowance and this is a very good allowance and it
motivates the employees to go out of station and take a break from
the work pressure and can work better in the future.
72
g) ‘The opinion regarding the facilities provided to the
physically handicapped respondent’

respondents
Satisfactory 1 2%
Not aware 49 98%
Total 50 100%
Analysis:
In the table it is shown that 98% of the respondents are not
aware of the facilities provided to physically handicapped, only 2% of
the respondents are satisfied with the facilities given to them.
Inference:
As there is only one person who has agreed that they are satisfied,
may be they are physically handicapped and they are satisfied with the
facilities provided to them.
There are no charts shown for this data as it is understood from the
above table.
h) ‘Opinion about the personal accident scheme’

respondents
Satisfactory 37 74%
Not aware 1 2%
Total 50 100%
73
Analysis:
In the table it is shown that 74% of the respondents are satisfied
with the accident scheme given to them and 10% of the respondents
are not satisfied with the scheme provided to them.
80
70
60
50
40 No of respondents
30 percentage
20
10
0
HS S NA NS HNS

Inference:
As the analysis shows that nearly 88% of the respondents are

very much satisfied with the personal accident scheme, which is really
good to the organization as it helps the employees during their bad
times.

the following extra-mural facilities provided by BHEL?
a) ‘opinion regarding the social insurance’

respondents
Satisfactory 38 76%
Not aware -- --
Total 50 100%
74
Analysis:
In the table, it shows that 76% of the respondents are
satisfied with the social insurance provided to the employees and 10%
of the respondents are not satisfied with the social insurance given to
them.
80
70
60
50
30 percentage
20
10
0
HS S NA NS HNS

Inference:
The analysis shows that more than 80% of the workers are
satisfied with the social insurance provided to them.
b) ‘Opinion regarding the recreation facilities’

respondents
Satisfactory 34 64%
Not aware 9 18%
Total 50 100%
75
Analysis:
In the table, it shows that 68% of the respondents are

satisfied with the recreation facility provided to the employees and
12% of the respondents are not satisfied with the recreation facility
given to them.
70
60
50
40
No of respondents
30 percentage
20
10
0
HS S NA NS HNS

Inference:
The analysis shows that more than 80% of the workers are
satisfied with the recreation facility provided to them.

the following non-statutory welfare measures provided by
BHEL?
a) ‘Opinion regarding the education facilities provided to the

respondents’

respondents
Satisfactory 40 80%
Not aware -- --
Total 50 100%
76
77
Analysis
In the table it shows 80% of the respondents are satisfied with
the education facilities to the respondent’s children.
80
70
60
50
40 No of respondents
30 percentage
20
10
0
HS S NA NS HNS

Inference:
From the analysis it shows that most of the employees are
satisfied with the education facilities provided to the respondents. It
will be of great help for the respondents but the company will give only
the standard allowance for education facilities that is the reason 12%
of the employees are not satisfied.
b) ) ‘Opinion regarding the vehicle benifts provided to the

respondents’

respondents
Satisfactory 35 70%
Not aware -- --
Total 50 100%
Analysis
the vehicle benefits provided by the organization.
78
70
60
50
40
No of respondents
30 percentage
20
10
0
HS S NA NS HNS

Inference:
satisfied with the vehicle benefits provided to the respondents
c) ) ‘Opinion regarding the house building advance provided to

the respondents’

respondents
Satisfactory 38 76%
Not aware -- --
Total 50 100%
Analysis

the house building allowance provided by the organization.
79
80
70
60
50
30 percentage
20
10
0
HS S NA NS HNS

Inference:

satisfied with the house building advance provided to the respondents.
5) How would you rate the overall employee welfare measures

and benefits provided by the company?

respondents
Satisfactory 48 96%
Not aware -- --
Total 50 100%
Analysis:
In the table it is shown that 96% of the respondents are

satisfied with the over all employee welfare in the company.
80
100
80
60
No of respondents
40 percentage
20
0
HS S NA NS HNS

Inference:
Out of 50 respondents only 2 respondents are not completely

satisfied with welfare measures provided to them.
6) How would you rate the relationship with the supervisor and
to the other workers?

respondents
Satisfactory 30 60%
Not aware -- --
Total 50 100%
Analysis:
The table shows that 60% of the respondents are satisfied

with the relationship between their employees and supervisors, and
40% of the respondents are highly satisfied.
81
60
50
40
30 no of respondent
percentage
20
10
0
HS S NA NS HNS

Inference:
This analysis shows that all the employees in the organization

are satisfied with their employees as well as their supervisors.
82
FINDINGS, CONCLUSIONS AND RECOMMENDATION
The study was conducted at BHEL to make the analysis of the statutory and
non-statutory employee welfare measures provided by the company. A
schedule was administered to the respondents comprising of 50 employees
of the company. The data collected was tabulated and analyzed. On
evaluation of the primary data collected from the respondents the following
findings, conclusion and recommendation are recorded.
FINDINGS
• BHEL has a vast infrastructure to support all needs.

• BHEL is one of the dynamic manufacturing industries.
• Most of the employees are rewarded or promoted only according to
their performance and very few are promoted through seniority based
rewards.
• Nearly 50% of the respondents are not at all satisfied with the rest
room facilities provided to them. The company has to provide a better
rest room facility.
• Most of the respondents are satisfied with the drinking water facility
provided by the company.
• The medical and first aid facility provided should also be improved in
a great extent.
• The respondents are very well satisfied with the casual leave, sick
leave and earned leave provided by the organization.
83
• Majority of the respondents are satisfied with working environment
health, security, safety, welfare measures and leave and holidays
facilities.
• Workers are satisfied with the vehicle benefits and it should be
improved a little.
• Most of the respondents are satisfied with the leave travel allowance
but there are some employees who are not satisfied.
• Most of the respondents are satisfied with the personal accident
scheme provided to them.
• Most of the employees are satisfied with the over all employee
welfare provided to them. Though they are not satisfied with some of
the facilities provided to them but mainly they are looking for job
security which they are provided
• All the employees are satisfied with the relationship between the
employees and their supervisors
84
CONCLUSION
Employee welfare refers to taking care of the well-

being of the workers by employers, trade unions and by the
governmental and non-governmental agencies. Recognizing
the unique place of the worker in the society and doing good
for him/her retaining and motivating employees, minimizing
social evils, and building up the local reputation of the
company are the arguments in favor of employee welfare.
The project was basically done to find out the present
satisfaction level of the employees regarding the welfare
measures provided to them, with this also to make the
company aware about the employee’s dissatisfaction with
certain welfare measures and give them appropriate
suggestions to it.
The feedback on the subject matter when evaluated
threw light on the level of satisfaction of the company is
more then average and maintained according to the
industrial specifications.
Doing my project with BHEL has been a great
experience as I got to learn the new welfare measures which
are in the corporate field and also the way the government
firm works
Finally I would like to conclude hoping BHEL to excel
in the years to come and to reach greater heights and to
have an entrenched presence in the global market.
85
86
RECOMMENDATION
• Management should reduce the work load of the employees. .

• It will be more effective if the management take the steps to introduce
suggestion scheme system for the employees.
• The training and instructions provided to the employees on
occupational health and safety aspects should be enhanced.
• The quality of education should be improved and better educational
amenities are to be provided.
• To enhance the provision for the rest rooms and lunch rooms with
clean ambience.
• Some employees are not satisfied with the promotion policy. They
complained against the diplomatic behavior of their seniors. Thus they
suggest that promotions should be given only in genuine and fair cases
and not on the basis of references of the respective heads or on the
basis of liking towards any specific employee.
• Plant safety inspection is essentially needed for the safety of
employees.
87
BIBLIOGRAPHY
1. Human resource and Personnel Management

By K. Aswathappa
Published by Tata McGraw-Hill Publishing Company

limited (2005)
2. Human Resource Management

By V S P Rao
Published by Excel Books (2000)
3. Personnel Management & Industrial Relations

By Prof. P. C Tripathi
Published by Sultan Chand & Sons (1991)
Websites:
I. www.bhel.com
II. www.hrm.com
III. www.google.com
IV. www.citehr.com
88
ANNEXURE
Analysis of Employee Welfare in BHEL
Dear sir/madam
I harika.viswanatham, pursuing my MBA in Padmasri.
Dr.B.V.Raju Institute of Technology. I am conducting a study on the
analysis of employee welfare at BHEL.
Can u please spare few min to answer the following

questions?

a. Highly Satisfied [HS] b. Satisfied [S] c. Not Aware [NA]

d. Not Satisfied [NS] e. Highly Not Satisfied [HNS]
HS S NA NS HNS
• Rest rooms [ ] [ ] [ ]
[ ] [ ]
• Drinking water facility [ ] [ ]
[ ] [ ] [ ]
• Opinion regarding Medical
and First aid facilities [ ] [ ] [ ]
[ ] [ ]
• Opinion regarding food and other
services provided by canteen [ ] [ ] [ ]
[ ] [ ]
• Crèche [ ] [ ] [ ]
[ ] [ ]
• Occupational Safety [ ] [ ] [ ]
[ ] [ ]

89
a. Highly Satisfied [HS] b. Satisfied [S] c. Not Aware
[NA]
HS S
NA NS HNS
 Earned leave [] []
[] [] []
 Sick leave [] []
[] [] []
 Paternity leave [] []
[] [] []
 Casual leave [] []
[] [] []
 Medical benefits [] []
[] [] []
 Leave travel allowance [] []
[] [] []
 Physically handicapped [] [] [
] [] []
 Personal accident scheme [] [] [
] [] []

the following extra-mural facilities provided by BHEL?

[NA]
HS S
NA NS HNS
• Social Insurance
(Gratuity, Pension, PF etc) [] []
[] [] []
• Recreation facilities [] []
[] [] []

the following non-statutory welfare measures provided by
BHEL?
90
[NA]
HS S NA
NS HNS
 Vehicle benefits [] [] []
[] []
 House building advance [] [] []
[] []
 Education allowance [] [] []
[] []
5) How would you rate the overall employee welfare measures

and benefits provided by the company?
I. Highly Satisfactory [ ] II. Satisfactory [ ] III Not
Aware [ ]
IV. Not Satisfactory [ ] V. Highly Not Satisfactory [ ]
6) How would you rate the relationship with the supervisor and
to the other workers?
I. Highly Satisfied [ ] II. Satisfied [ ] III. Not

Aware [ ]
IV. Not Satisfied [ ] V. Highly Not Satisfied [ ]
91

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Welfare Measures of an

Under the guidance of

Padmasri Dr.B.V.Raju Institute of Technology

I express my gratitude to the management of Bharat Heavy

I Harika.Viswanatham, student of Padmasri Dr.B.V.Raju Institute of

Employee Welfare is an important facet of industrial relations, the extra

MEANING AND DEFINITION

According to the committee and labour welfare

The ILO report refers to labour welfare as:

The encyclopedia of social sciences has

Industrial progress of a country depends on its committed labour

The working condition should be such as to safeguard his health and

a) It is the work, which is usually undertaken with in the premises or

NEED FOR LABOUR WELFARE:

The working environment in a factory /mine adversely affects the

There is a social reason also as pointed out by the labour Investigation

AIMS OF LABOUR WELFARE WORK:

• It is partly humanistic, for it enables the workers to enjoy a

• It is partly economic because it improves the efficiency of the

• The aim is partly civic because it develops a sense of

Employee welfare has 2 aspects—negative and positive.

The meaning of labour welfare may be clearer by listing the activities

A comprehensive list of welfare activities on labour welfare into two

1. Welfare measures inside the work place; and

1. Welfare Measures inside the Work Place

a) Conditions of the work Environment

• Safety and cleanliness: attention to approaches.

• Provision of drinking water

C) Worker’s Health Services

• Factory health center

d) Women and Child Welfare

• Services Crèche and child care

• Indoor games; strenuous games to be avoided during

• Co operatives, loans, financial grants

• Thrift and savings schemes

g) Labour management participation

• Formation and working of various committees

a) Water, sanitation, waste disposal.

It may be started that the welfare activities may be provided by the

LABOUR WELFARE – LEGAL SIDE

Statutory and non-statutory activities:

The factories act:

Schedule 49 of the act provides that in every factory where in 500 or

1. Supervision of (i) safety, health and welfare programs like housing,

5. Laisoning with the management so as to appraise the latter about

• Labor welfare includes various facilities, services and amenities

The important benefits of welfare measures can be summarized as follows:

The Trusteeship Theory: This is also called the Paternalistic Theory of

PRINCIPLES FOR SUCCESSFUL IMPLEMENTATION OF

Adequacy of Wages: Labour welfare measures cannot be a substitute for

Impact on Efficiency: This plays an important role in welfare services, and

Increase in Personality: The development of the human personality is given

Totality of Welfare: This emphasizes that the concept of labour welfare

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

Accountability: This may also be called the Principle of Evaluation. Here,

STATUTORY WELFARE MEASURES:

The preamble to our Indian Constitution promises justice - social, economic

Constitution of India, Article 38: State to secure a social order

Constitution of India, Article 39: Certain principles of policy to

THE WORKMEN'S COMPENSATION ACT 1923

THE PAYMENT OF WAGES ACT:

THE EMPLOYEES’ PROVIDENT FUND ACT 1952