Introduction of The Topic: Employee Welfare

INTRODUCTION OF THE TOPIC
Employee welfare
Industrial progress of a country depends on its committed Employee force.
The schemes of Employee welfare may be regarded as “a wise investment”
which should and usually does bring a profitable return in the form of
greater efficiency.
Welfare is a broad concept referring to a state of living on an individual or a
getup is a desirable relationship with the total environment – ecological,
economical and social. Employee welfare includes both the social and
economic contents of welfare.
Social security
There is a common proverb called “man is a social animal” and right from
inception he is struggling for his security. Social security is having dynamic
concept in the modern age, which influences the social as well as economic
policy.
Though the social security programs are differ from country to country,
they have these characteristic in common
1) They are established by law.

2) They provide some form of cash payments to individual to compensate at
least a part of the lost income that occurs due to such contingencies as
unemployment, maternity, worker injury, industrial disease, frugal,
widowhood.
SIGNIFICANCE OF THE STUDY
Men instead of money will have to be accepted as the most valuable

resources of any organization. The management has to recognize the
inevitability of developing human assets, knowledge, professional skills,
experiences and creativity of their employees.
To study the Employee welfare scheme for the workers at Bhiwani

Textile Mills.
To gain maximum knowledge about practical work .
To work under an authority in discipline.
To see the employees practical work.
To complete the better project.
To understand the social security schemes, which are, provide to

employees.
To gain some experience about official work.
Bhumika Sharma Page 2

Hindu Institute of Management
OBJECTIVE OF THE STUDY
The objective of the study carried out at “Bhiwani Textile Mills” is to know
how Employee welfare & social security system of the organization
motivates their employees.
The objective is to know the prevailing Employee welfare & social security
system of the organization is efficient and effective and to know, are the
employees satisfied with the system and if not what changes they would like
to prefer.
Welfare may help minimize social evils, such as alcoholism, gambling, drug,
addiction & the like---
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 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.

Keeping in view the above points, I have carried a study on Employee
welfare to know the fact & appraise the Bhiwani Textile Mills about the
situation so that appropriate measure can be taken in time.
REVIEW OF EXISTING LITERATURE

SOURCES OF DATA
R. C. SAXENA, Employee Welfare & Social Security.
Welfare is a broad concept referring to a state of living on an individual or a

getup is a desirable relationship with the total environment – ecological,
economical and social. Employee welfare includes both the social and
economic contents of welfare.
Employee welfare implies the setting up of minimum desirable standards

and the provision of facilities like health, clothing, housing, medical
assistance, education, insurance, job security, recreation etc. to enable the
worker and his facile to bad a good working life, family life and social life.
I have also collected information related to the topic from Internet. Mainly, I
collected data from following Web Sites :-
www.labour.nic.in.
www.wikipedia.org
Artificial Humidification
Under section 15 of The Factory act 1948 provides that in respect of all the
factories in which the humidity of the air is artificially increased.
The State Government may make rules:

Regulating the methods used for artificially increasing the humidity of
the air.
Directing prescribed test for determining the humidity of the air to be
correctly carried out and recorded.
CONCEPTUALIZATION
Employee Welfare
The term Employee welfare may be viewed as a total concept, as a social

concept and as a relative concept. The total concept is a desirable state of
existence involving the physical, mental, moral and emotional well being.
The relative concept of welfare implies that welfare is relative in time and
place. It is dynamic and flexible concept and hence its meaning and content
differ from time to time, region to region, industry to industry, level of
education, social custom, degree of industrialization and general standard of
the socio-economic development of the people.
Employee welfare is an important facet of industrial relations, the extra

dimension, giving satisfaction to the worker in a way, which even a good
wage cannot. With the growth of industrialization and mechanization, it has
acquired added importance. The workers, both in industry and agriculture
cannot cope with the pace of modern life with minimum sustenance
amenities. He needs an added stimulus to keep body and soul together.
Employees have also realized the importance of their role in providing these
extra amenities, and yet, they are not always able to fulfill workers demand,
however reasonable they might be.

Employee Welfare implies the setting up of minimum desirable standard and
the provision of facilities like health, clothing housing, medical, education,
insurance, job security, recreational etc. to enable the worker and to live a
good working life and social life.
Social Security
There is a common proverb called “man is a social animal” and right from
inception he is struggling for his security. Social security is having dynamic
concept in the modern age, which influences the social as well as economic
policy.
At present, the concept of social security is based on recognition of the

fundamental social right guaranteed by law to al human beings who live
from their own Employee and who find themselves unable to work
temporarily or permanently for reasons beyond their control.
It is now widely believed that social security can act as a catalyst for social
transformation and progress. In this respect Mr. Francis Blanchard former
Director general ILO has appropriately said that “Social Security is an
instrument for social transformation and progress and must be
preserved supported and developed” as such . Furthermore far from being
an obstacle to economic progress as is all two often said social security
organized on a firm and sound basis will promote progress since once men
and women benefit from increased security and are free from anxiety for the
morrow. They will become more productive.

The concept of Social Security includes provision for hosing, safe drinking
water, sanitation, health, education and cultural facilities as also a minimum
wages, which can guarantee workers to maintain themselves in a decent life.
FOCUS OF THE STUDY
Employee Welfare
It is somewhat difficult to accurately lay down the scope Employee welfare

work, especially because of the fact the Employee is composed of dynamic
individuals with complex needs. According to the committee on Employee
welfare, welfare services should mean Such services, facilities, amenities as
adequate canteens, rest and recreation facilities sanitary and medical
facilities, arrangements for travel to and from the for the accommodation of
worker employed at a distance from their homes and such other services,
amenities and facilities including social security measures, which contribute
to conditions under which workers are employed.
On the whole basis these services may be basically of three types as given
below:
Economic Services
These provide some additional economic security over and above wages or
salaries, such as pension, life insurance, credit facilities etc.
Recreational Services

The employees are in need of occasional diversion; their attitude improves
when the routine of everyday living is broken occasionally. For this purpose,
management may provide for recreational facilities.
Facilitative Services
These are conveniences facilities, which are the employees ordinarily,

require such as:
Canteen, Rest Room and Lunch Room
Housing Facilities
Medical Facilities etc.
Washing Facilities
Educational Facilities
Leave Travel Concession
Social Security
The need of social security measures arises to help the people when they are
unemployed and exposed to risk such as sickness, maternity, old age etc.
Social security scheme includes
Health Insurance
Maternity Benefits
Compensation for Employment Schemes
Worker’s Pension-Cum-Insurance Schemes
Compulsory And Voluntary Social Insurance

Provident Funds Schemes
Public Health Services
Services are provided in three ways:
a) Social Insurance
It is a mechanism through which benefits are provided to
the contributors necessary for satisfying wants during old age, sickness etc.
b) Social Assistance
It is a program through which the Government attempts to
ameliorate the distress caused by the contingencies of life.
c) Public Service
Such programs are usually financed directly by the
Government from its general revenue in the form of cash payments

INDUSTRIAL PROFILE
Indian textile industry is one of the oldest industries in the largest in the
country; Indian textile industry has undergone many transformations during
its progress from historic periods to the present modern shape.
The textile industry occupies a unique place in our country. One of the
earliest to come into existence in India, it accounts for 14% of the total
Industrial production, contributes to nearly 30% of the total exports and is
the second largest employment generator after agriculture. Textile Industry is
providing one of the most basic needs of people and the holds importance;
maintaining sustained growth for improving quality of life. It has a unique
position as a self-reliant industry, from the production of raw materials to the
delivery of finished products, with substantial value-addition at each stage of
processing.
Although the development of textile sector was earlier taking place in terms
of general policies, in recognition of the importance of this sector, for the
first time a separate Policy Statement was made in 1985 in regard to
development of textile sector. The textile policy of 2000 aims at achieving
the target of textile and apparel exports of US $ 50 billion by 2010 of
which the share of garments will be US $ 25 billion. The main markets

for Indian textiles and apparels are USA, UAE, UK, Germany, France,
Italy, Russia, Canada, Bangladesh and Japan.
Grasim Industries Limited
Aditya Birla Group operates over 40 companies in 12 countries across 4

continents. It is the world’s largest producer of Viscose Rayon Fiber with
about 40% market share. Textile and related products contributes to 15% of
the group turnover. Given below are a brief description of the different
companies under the umbrella of Aditya Birla Group involved in Viscose
Rayon Fiber, Textiles and Garments
Grasim Industries Limited was incorporated in 1948; Grasim is the largest

exporter of Viscose Rayon Fiber in the country, with exports to over 50
countries. This, along with Aditya Birla Nuvo can be considered as the
flagship companies of the AV Birla Group. Indian Rayon rechristened as
Aditya Birla Nuvo Ltd in 2005.
Grasim Industries Limited, a flagship company of the Aditya Birla Group,

ranks among India's largest private sector companies, with consolidated net
revenues of Rs.141 billion (FY2007).Starting as a textiles manufacturer in
1948, today Grasim's businesses comprise Viscose Staple Fibre (VSF),
Cement, Sponge Iron, Chemicals and Textiles — in all of which the
company holds a dominant position.

In July 2004, Grasim acquired a majority stake and management control in
UltraTech Cement Limited, the de-merged cement business of Larsen &
Toubro Limited (L&T). One of the largest of its kind, in the cement sector,
this acquisition catapulted the Aditya Birla Group at the top of the league in
India. The Group's combined capacity stands raised to 31 million tpa, of
which 17.0 million tpa capacity comes from UltraTech and 1.1 million tpa
from Shree Digvijay Cement Co. Ltd, another subsidiary of Grasim.
Between Grasim and its subsidiaries, the Group has 11 composite plants,
seven split grinding units, four bulk terminals — inclusive of one in Sri
lanka and 10 ready-mix concrete plants. Importantly, it gives the Group a
strong national presence, with a leadership position in 17 states.
Viscose staple fibre

The Aditya Birla Group is the world's largest producer of VSF, commanding
a 23 per cent global market share. The company meets India's entire
domestic VSF requirements.
Cement
The Aditya Birla Group is the 11th largest cement producer in the world and
the seventh largest in Asia.
SpongeIron
It is the largest merchant producer of sponge iron in India.
Chemicals
Grasim has India's second largest caustic soda unit.
Textiles
Its premium brands, the Grasim and Graviera range of fabrics, have

distinctively positioned themselves as 'the power of fashion'. All of Grasim's
units have earned ISO 9002 and 14001 certifications.
Product quality, innovation and eco-friendliness are a hallmark of all the

company's divisions.
A BRIEF HISTORY
Grasim was incorporated on August 25, 1947, just 10 days after India
became independent, manufacturing textiles made from imported raw
materials. It is now a global leader in viscose staple fibre (VSF), the
country's largest merchant producer of sponge iron and the second-largest
caustic soda maker in India; and poised to be India's largest cement
manufacturer.
2004
 Completion of the implementation process to demerge the cement
business of L&T and completion of open offer by Grasim, with the
latter acquiring controlling stake in the newly formed company
UltraTech
 Board reconstituted with Mr. Kumar Mangalam Birla taking over as
Chairman
 The Staple Fibre Division and Engineering & Development Division
of Grasim, Nagda receives SA 8000:2001 certification from SAI in
recognition of its social accountability initiatives
2003
 Grasim's Chemical Division receives the SA 8000 (Social
Accountability) and OHSAS 18001 certifications.

 The board of engineering major Larsen & Toubro Ltd (L&T) decides
to demerge its cement business into a separate cement company
(CemCo). Grasim will acquire an 8.5 per cent equity stake from L&T
and then make an open offer for 30 per cent of the equity of CemCo,
to acquire management control of the company.
2002
 VSF Research & Application Centre set up at Kharach in Gujarat
 The Grasim Board approves an open offer for purchase of up to 20 per
cent of the equity shares of Larsen & Toubro Ltd (L&T), in
accordance with the provisions and guidelines issued by the Securities
& Exchange Board of India (SEBI) Regulations, 1997.
 Grasim increases its stake in L&T to 14.15 per cent
 Grasim divests its Gwalior unit to Melodeon Exports Ltd, and
consolidates all textile operations at the Bhiwani unit, which will
manufacture both the 'Grasim' and 'Graviera' brands at a single
location.
2001
 Grasim acquires 10 per cent stake in L&T. Subsequently increases
stake to 15.3 per cent by October 2002
 Four ready-mix concrete plants commissioned, with an aggregate
capacity of one million cubic metres per annum.
 Divests holding in Birla Technologies to PSI Data Systems.
2000
 The Lawson Competency Centre is set up as a division of Birla
Consultancy & Software Services, the software arm of Grasim,
following a tie up with Lawson Software (USA), among Fortune's top
five private software companies.

 Consultancy and software services are spun off as a separate entity,
called Birla Technologies Ltd.
 Merger of Dharani Cements into Grasim.
1999
 Grasim's viscose staple fibre (VSF) and rayon grade pulp units at
Mavoor are closed down owing to lack of raw material.
 Third issue on September 16, 1999 to Indian Rayon's GDRs holders:
Three GDRs in Grasin for every 10 GDRs in Indian Rayon, on
demerger of its Cement business into Grasim. Nos: 1,624,336
1998
 Grasim's first major acquisition overseas – the Atholville Pulp Mill in
Canada.
 Grasim acquires Dharani Cements Ltd.
 Grasim acquires Shree Digvijay Cements Ltd.
 The cement business of group company, Indian Rayon and Industries
Ltd (IRIL), is transferred to Grasim in a corporate restructuring
exercise.
1996
 The first phase of Grasim's fourth VSF plant commissioned at
Kharach, Gujarat.
1995
 Grasim commissions two greenfield cement plants – Grasim Cement
at Raipur (Madhya Pradesh) and Aditya Cement at Shambhupura
(Rajasthan).

 Grasim sets up two new spinning units – Elegant Spinners at Bhiwani
(Haryana) and Vikram Woollens at Malanpur (Madhya Pradesh).
1994
 Second issue of GDRs on June 15, 1994 for US $100 million.
Nos: 4,878,048
1993
 Vikram Ispat, India's third-largest gas-based sponge iron plant, is
commissioned.
 Birla Consultancy & Software Services is set up, to provide IT
consulting services and for software development
1992
 Grasim sets up Birla International Marketing Corporation (BIMC), a
merchant exporter.
 First GDR issue on December 2, 1992 for US$ 90 million.
Nos: 6,933,745
1991
:: A third production line is added at Vikram Cement.
1987
 Vikram Cement's second production line is commissioned.
1985
 Vikram Cement – Grasim's first cement plant – goes on stream at
Jawad, Madhya Pradesh.
1977
 Grasim's third rayon plant – at Harihar, Karnataka – goes into
production.
1972

 A completely indigenous plant based on Grasim's own engineering
and know-how, begins production at Harihar, Karnataka.
 Grasim commences production of rayon grade caustic soda – a major
raw material for VSF production – at Nagda; another step towards
becoming self-reliant

1968
 Rayon production commences at Mavoor, Kerala.
1963
 Grasim sets up its first rayon grade pulp plant at Mavoor, Kerala; the
first to make rayon grade pulp from bamboo and other hardwoods.
 Grasim purchases a composite textile mill at Bhiwani, Haryana.
1962
 Grasim starts an engineering division to provide plant and machinery
for VSF production.
1954
 Grasim begins rayon production at Nagda.
1950
 Grasim launches production of fabrics at Gwalior using imported
rayon – a man-made cellulose fibre.
1947
 Grasim Industries Ltd is incorporated.

RESEARCH METHODOLOGY
STUDY AREA
The study of the topic “Employee Welfare & Social Security” has been
confined to the employees of the Bhiwani Textile Mills. I have chosen both
subjective and objective methodology with sampling, questionnaire and
interview, analysis of data to complete my project study.
For acquisition of data from different levels of the organization, I have made
“QUESTIONNAIRE FOR EMPLOYEES” form and
“QUESTIONNAIRE FOR TOP MANAGEMENT”
For analysis of data statistics methods are used to arrive at the conclusion.
SAMPLE
For the purpose of the study, the field has been divided into category-
management and Employees at all levels. The sample size of 50 employees
is divided into 25 from Top management, & 25 from remaining Employees
at all levels). Apart from their written choice the form of questionnaire, they
have also been interviewed for cross checking and proving authenticity of
their choice.
QUESTIONNAIRE
The data is collected from Top Management and staff workers with the help
of a questionnaire prepared for this purpose. Data was also collected through
personal interaction with all the respondents.
The questionnaire consists of the job profile as well as the recognition

system being practiced in the organization and also the opinion and feeling
of the respondents about the measures. The questionnaire has been
thoroughly discussed with the respondents to clarify doubts, if any,
regarding the information required.
The illiterate and low educated workers found it slightly difficult to

understand the questions in a straightforward manner. Their fear and
suspicions were put to rest when assured that the study is purely an
academic exercise and the information supplied by them would be kept
confidential.
TABULATION OF DATA
The data collected has been classified and put into pie charts. On the basis of
these classifications, pie charts interpretations have been made. Classifying
all the information according to the levels and experience of the respondents
has done.
The respondent’s answers, opinions, suggestions and viewpoints have been

properly examined and utilized in this report. Different charts have been
constructed to supplements the analysis.

DEFINITION OF EMPLOYEE
WELFARE
Employee welfare means anything done for the comfort and improvement,
intellectual or social, of the employees over and above the wages paid
which is not a necessity of the industry
 According To Arthur James Todd
Worker welfare should be understood as a meaning with services, facilities

and amenities which may be established in or in the vicinity of
undertaking to enables the person employed in them to perform their work
in healthy and peaceful surrounding and avail of facilities which improve
their health and bring high moral.
 According To ILO

PROVISION OF FACTORIES ACT
[1948] REGARDING EMPLOYEE
WELFARE
According to Provision Of The Factories Act 1948, Employee welfare
facilities divided into two categories, which are:
 Statutory
 Voluntary
Under the Act the following Welfare Facilities are provided
SN Facilities Description Section

1 Drinking Water 18
2 Latrines and Urinals 19
3 Spittoons 20
4 Washing 42
5 Storing & Drying Cloths 43
6 Sitting 44
7 First Aid Appliances & Ambulance 45
8 Canteen 46
9 Shelters, Rest Rooms and Lunch Room 47
10 Crèches 48
11 Welfare Officer 49
STATUTORY
Statutory welfare facilities comprise of those facilities required to maintain
compulsory standard of health and safety of workers, such as How to work,

Hygienic Atmosphere etc. & which are mandatory for the organization in
accordance with government rules which are to be adhered to.
 Cleanliness
Under section 11 of the Factory act, 1948 provides for the cleanliness of
manufacturing of production department workers are responsible and for the
cleanliness of outside and inside the mill, Four Sweepers are recruited.
Sweeper Timing Area Of Work

2 9 am to 5 PM General Shift, Offices, Canteen,
Outside
1 3 to 11 (1stshift),Side area including staff
Latrines, Urinals
1 11 to 7 (2nd shift),Side area including staff
Latrines, Urinals
 Ventilation & Temperature
Under section 13 of The Factory act provides that suitable provisions shall
be made in every factory for security and maintaining in every workroom.
BTM provides this facility as
o Engineering department is responsible for ventilation and

temperature maintenance.

o Arrangement of carrier fans with spray nozzles during summer
while arrangements of return air along with steam supply
during winter.
o Exhaust fans are also fitted to carry out the dust and fumes and
for circulation of fresh air.
 Artificial Humidfication
Under section 15 of The Factory act 1948 provides that in respect of all the
factories in which the humidity of the air is artificially increased.
The State Government may make rules:
Regulating the methods used for artificially increasing the humidity of

the air.
Directing prescribed test for determining the humidity of the air to be
correctly carried out and recorded.
 Canteen
Under section 46 of The Factories Act, provides that a canteen shall be

provided and maintained by the occupier for the use of the workers in any
factory wherein more than 250 workers are employed. To manage the
canteen “CANTEEN MANAGEMENT COMMITTEE” should be
formed consisting representative of employer and the employees.

Without prejudice in the generality of the foregoing power,
such rules may provide for
a) The date by which such canteen shall be provided
b) The standards in respect of construction, accommodation, furniture and

other equipment of the canteen.
c) The foodstuffs to be served therein and the charges which may be made
therefore.
 Lighting
The lighting arrangement has also its importance. Poor lighting

arrangements increase the inefficiency of the workers.
To protect the eyesight of workers and to prevent glare and formation of
shadows section 17 imposes:
A duty upon the occupier to provide and maintain:-

a) sufficient and suitable lighting
b) such lighting should be natural or artificial or both
All glazed windows and skylights provided for passing of lights
should be kept clean from both side of the surface.
 Washing Facilities
Under section 42 of Factories Act 1948 lay down that every factory has to
provide these facilities:

a) Adequate and suitable facilities for washing shall be provided and
maintained for use of the workers therein
b) Separate and adequate screened facilities shall be provided for the use of
male and female workers
c) Such facilities shall be conveniently accessible and shall be kept clean
 Storing And Drying Clothing Facilities

Under section 43 of Factories Act a state government may make rules for
requiring the provision of suitable place for keeping clothes not worn during
working hours and for the drying of wet clothing.
a) In every factory suitable arrangements for sitting shall be provided and
maintained for all workers obliged to work in a standing position
 First Aid Appliances
According to Factories Act each factory or company should provide

following facilities:
a) The number of such boxes or cupboards to be provided and maintained
shall not be less than one for every one hundred and fifty workers ordinarily
employed in the factory.
b) Each first-aid box or cupboard shall be kept in the charge of separate
responsible person,{who holds a certificate in first-aid treatment recognized
by the State Government}

b) In every factory wherein more than five hundred workers are , there
should be provided and maintained an ambulance room or ambulance
van.
 Crèches
Under Section 48 of The Factories Act, crèches facilities should be

provided in every factory wherein more than 30 women are employed, for
the use of the children under the age of 6 years.
 Shelters, Rest-Rooms And Lunch-Rooms
Under section 47 of the act every factory employing more than 150
workers must provide adequate and suitable shelters, rest rooms and a lunch
room with provision of the drilling water, where workers can eat their meals
at the time of rest interval.
 Drinking Water
Section 18 Of The Factories Act provides these rules
a) Effective arrangements shall be made to provide and maintain at suitable

points conveniently situated for all workers employed therein a sufficient
supply of wholesome drinking water.

b) In every factory where in more than two hundred and fifty workers are
ordinarily employed, provisions shall be made for cooling drinking water
during hot weather by effective means and for distribution thereof.
 Latrines And Urinals
Section 19 Of The Act makes it obligatory to provide in every

factory
a) Sufficient latrine and urinal accommodation, which should be of
prescribed types, should be conveniently situated and accessible to workers

at all time.
b) Such toilets should be enclosed and should be separate for male and
female workers.
c) All such accommodation shall be maintained in a clean and sanitary
conditions at all times.
 Welfare Officer
The officer who doing the work regarding the facilities which are provide to
workers for their welfare, known as Welfare Officer.
The State Government may makes rules under section 49 (1) and (2) of
The Factories Act as

a) In every factory wherein five hundred or more workers are ordinarily
employed the occupies shall employ in the factory such number of welfare
officers as may be prescribed.
b) The government may also prescribed the duties, qualification and
conditions of services of officers employed.
VOLUNTARY/ NON STATUTORY
Voluntary welfare measure includes all those activities which employers

undertake for the welfare of their workers on a voluntary basis to increase
work efficiency.
 Regulation Of Hours Of Work

Section 51 Of The Factories Act provides that no adults shall be allowed or
required to work for more than 48 hours in a week.
 Weekly Holidays : Notices given under sub-section (1) may be canceled

by a notice delivered at the office of the inspector and a notice displayed in
the factory not later than the day before the said day or the holiday to be
cancelled, whichever is earlier.
 Compensatory Holidays
The provisions of section 52, a worker is deprived of any of the weekly
holidays for which provision is made in sub-section (1) that section he shall
be allowed, within the month in which the holidays were due to him.

 Daily Hours
No adult worker shall be required or allowed to work in a factory more than
nine hours in a day.
 Spread-Over
The period of work of an adult worker in a factory shall be so arranged that
inclusive of his intervals for rest under section 55, they shall not spread
over more than ten and half-hours in any day.
 Intervals For Rest

The periods of work of adult workers in a factory each day shall be so fixed
that no period shall exceed five hours and that no worker shall work for
more than five hours before has had an interval for rest of at least half an
hour, so however that the total number of hours worked by a worker without
a interval does not exceed six.
DEFINITION OF SOCIAL
SECURITY
Social Security is that security, society furnishes through appropriate
organization against certain risk to which its member are exposed.
 According To ILO

Social Security is an instrument for social transformation and progress
and must be preserved supported and developed for as such.
 According To Mr. Francis
Blanchard
SOCIAL SECURITY LEGISLATION

IN INDIA
In her drive to provide protection to the needy workers, the Government of
India has made the various enactments from time to time. The important
among them are:
1) The Workmen’s Compensation Act, 1923
2) The Employee’s State Insurance Act, 1948
3) The Employee’s Provident Funds & Miscellaneous Provisions Act, 1952
4) The Family Pension Fund Act, 1995
5) The Employees Deposit Link Insurance Act, 1976
6) The Maternity Benefit Act, 1961
7) The Payment of Gratuity Act, 1972.
8) The Payment of Bonus Act, 1965.
SOCIAL SECURITY MEASURE
In BTM, Bhiwani the social security can be measured by study of

application of following acts in company:

The Employee’s Provident Fund &Miscellaneous
Provisions Act, 1952
Coverage
The Act covers workers employed in a factory or any industry specified in

Schedule-I in which 20 or more workers are employed or which the Central
Government notifies in its officials Gazette. The Act does not apply to co-
operative societies employing less then 50 persons.
Administration
Tripartite Central Board of Trustees represented by Employers, Employees

and the Government administers the Act.
% Of What
Basic Pay + DA + Cash Value Of Any Food Concession

Upto a maximum of Rs. 65,00 only.
Contribution
Description Employees Employers
EPF 12% of Wages 12% of Wages
10% of Wages in case 10% of Wages in case
less then 20 persons. less then 20 persons.
PENSION 8.33% of Employee NIL
Share. Central
Government to
contribute 1.16%
DEPOSIT LINK 1% NIL
INSURANCE
 The Workmen’s Compensation Act, 1923
Coverage
This act covers workers employed in factories, mines, plantations,

mechanically propelled vehicles, construction works, railways, ships, circus
and other hazardous occupation specified in schedule – II of the Act.
Administration
The State Government administers the Act by appointing Commissioners for

this purpose under Section 20.
The Act has categorized the injuries in the following manner and the
calculation of compensation there under
TYPE OF INJURY EXAMPLE COMPENSATION

Total Disablement
a) Temporary Fracture in both hands 25% of monthly wages
or legs paid fortnightly till
recovery

b) Permanent Amputation of both 60% of monthly wages
hands or legs or loss of or Rs. 90,000 whichever
vision in both eyes is more.
Partial Disablement
a) Temporary Fracture in both hands Upto 3 days nil. Beyond

or legs 3 days 25% of monthly
wages paid fortnightly
till recovery
b) Permanent Permanent Amputation 50% of monthly wages
of both hands or legs or or Rs. 80,000 whichever
loss of vision in both is more.
eyes
 The Employee’s State Insurance Act, 1948
Coverage
The Act covers all workers whose income does not exceeds Rs. 7500/- per
month and are employed in factories other than seasonal factories which run
with the aid of power and employing 10 or more than 10 persons and on 20
or more than 20 persons without aid of powers.
Administration
The Employees State Insurance Corporation, an autonomous body,

administrates The Act.

Contribution
Employees Share is 1.75%.

Employers Share is 4.75%.
Benefits
Under this Act an insured is entitled to receive the following types of

benefits:
a) Medical Benefit b) Sickness Benefit
c) Maternity Benefit d) Disablement Benefit
e) Dependents Benefit f) Funeral Benefits
g) Medical Bonus
Role Of ESI Corporation
 To provide for the various benefits listed under the Act.

 To receive contributions from employers and also ensure the
correctness of the contributions through periodic inspections
 The Employees Deposit Link Insurance Act,

1976:-
This Act is fully implemented in BTM Bhiwani and the provision of Deposit
Linked Insurance Scheme is attached with LIC. The LIC is paying minimum

Rs. 6000/- even on one-day employment and maximum Rs. 62,000/- where
as PF Department will pay Rs. 500/- minimum on one year employment and
maximum Rs. 60,000/- according to balance in PF A/c.
 The Family Pension Fund Act, 1995
Coverage
The Act covers workers employed in a factory or any industry specified in
Schedule-I in which 20 or more workers are employed or which the Central
Government notifies in its officials Gazette. The Act does not apply to co-
operative societies employing less then 50 persons.
Administration
Tripartite Central Board of Trustees represented by Employers, Employees

and the Government administers the Act.
Benefits
a) Superannuating Pension b) Reduced Pension

c) Short Service Pension d) Less Than 10 Years
e) Permanent Disablement Pension f) Widow Or Widower’s Pension

g) Monthly Children Pension h) Nominee Pension
Monthly Member’s Pension =
Pensionable Salary * Pensionable Service

70
 The Maternity Benefit Act, 1961
Coverage
The act is applicable to all establishments not covered under the Employees’
State Insurance Act, 1948.
Administration
The Employees’ State Insurance Corporation administers the Act.
Periods Under The Maternity Benefit Act
6 Weeks After delivery/ Prohibited from By employer or

miscarriage/ work or to work woman
MTP

1 Month Period Onto 6arduous By employer
weeks before
work/ continuos
EDD standing
Not . 6 Weeks Before EDD
Leave with At maternity rate
wages
Total 12 Before and after Leave with At maternity rate
Weeks delivery wages
6 Weeks After Leave with At maternity rate
miscarriage/ wages
MTP
2 Weeks Tubectomy Leave with At maternity rate
operation wages
1 Month Illness due to Leave with At maternity rate
pregnancy wages subject tap
miscarriage/ production of
MTP/ premature certificate
birth/ tubectomy
Two Break In Nursing Till child is a 12 Those entitled to
A Day month, Rs.250, maternity
Medical Bonus benefit_Provide
no pre natal or
post natal
 The Payment of Gratuity Act, 1972.

Coverage
The act is applicable to all establishments where 10 or more persons are

working and have completed 5 years of service.
Administration

The Company or Trust administrates The Fund if the Trust is linked with
LIC.
Benefits
Under the Act, an employee is eligible to get Gratuity amount if he renders 5

years continuous service in the organization. The Gratuity amount will be
payable as under.
The equation is:-

(Salary/ 26) * 15 * Year of Service
The maximum limit of gratuity payment is Rs. 3.5 lakes but if the employer
want to pay more than he can paid Upto any limit.
 The Payment of Bonus Act, 1965.

Coverage
The act is applicable to all establishments where 20 or more persons are

working.
Administration
The Company administrates The Fund.

Benefits
Under the Act, an employee whose salary or wages does not exceed more
than Rs.3500/- is eligible to get Bonus up to the salary of Rs. 2500 per
month @ 8.33% if he has completed One-Month Service. If the employer
is interested to pay bonus on higher salary / wages than he can pay bonus
Upto any limit. The rate of Bonus will be increased in case Company earns
more Profit up to 20%.
Every employee who has completed One Month is eligible for the Bonus.
Eligibility
Minimum 30 days working in the year.
Minimum Bonus
8.33% of annual salary or wages.
Maximum Bonus
20% of annual salary or wages

In case salary or wages is more than 2500/- then the Bonus limit would
be calculated as if his wages or salary is Rs. 2500/- only.

Methods of calculation
 Take net profit of the establishment from the P & L A/C.

 Make adjustment as provided in the first or second Schedule.
 The result is “Gross Profit” as defined under the Bonus Act.
 New deducting the following
a) Development rebate / investment all
b) Depreciation
c) Direct taxes liabilities as per section 7
 Available Surplus is the above + difference between taxes on GP of
last year before deducting Bonus and after deducting Bonus
 Allocable Surplus is 60% of Available Surplus
QUESTIONNAIRE FOR MANAGEMENT

1. To what extent are the Company’s operating philosophy and culture
understood by employees?
Sr. No. Option Chosen No. of employees % employees

1 Strongly agree 14 56
2 agree 7 28
3 Strongly disagree 1 4
4 Disagree 3 12
Strongly Agree
12%
Agree
4%
28% 56% Strongly

Disagree
Disagree
Analysis
 56% employees strongly agree that they get welfare facilities from
company.
 28% employees only agree.
 4% employees strongly disagrees that they get welfare facilities from
company.

 12% employees disagree that they get welfare facilities from the
company.
2. Can the Company’s management style be described as participative?

2 agree 10 40
4 Disagree 2 8
8%
Strongly Agree
4%
48% Agree
Strongly Disagree
40%
Disagree
Analysis

 48%( 12) strongly agree that company’s overall management style is
participative.
 40% (10) of the employees only agreed
 4% (1) of the employees strongly disagree about this philosophy.
 8% (2) of the employees disagreed.
3. To what extent do the managers in the Company work towards

employee’s satisfaction?

2 agree 9 36
4 Disagree 1 4
Analysis
 48% (12) employees strongly agree that managers work hard toward
employee’s satisfaction.
 36% (9) employees only agree.
 12% (3) strongly disagree that managers work hard toward
employee’s satisfaction
 4% (1) employees disagree.
4. To what extent do you agree with the following statement “Human

resource planning is well integrated with strategic planning in our
company”.

2 agree 8 32
4 Disagree 1 4
Analysis
 52% (13) employees strongly agreed that human resources planning
are well integrated with strategic planning.
 32% (8) employees only agreed.
 12% (3) employees strongly disagreed about this.
 4% (1) employees disagreed about this.
5. Are the Employee welfare & social security facilities extended to

contract workers too?

1 Yes 17 68
2 No 8 32

Analysis:
This chart depicts, the management gives Employee welfare & social
securities facilities to contract workers
 68% (17) members of management are saying yes regarding these

facilities to contract workers
 32% (8) members of management are saying no regarding these

facilities to contract workers
6. Is there any canteen management committee in your organization ?

1 Yes 18 72
2 No 7 28

Analysis:
This chart depicts, the company have a canteen management committee
 72% (18) of the members of management voted for yes regarding

these facilities.
 28% (7) of the members of management voted for no regarding these

facilities.
7. Is there any Ambulance Room or Ambulance Van in the

organization?

1 Yes 22 88
2 No 3 12
12%
yes
no
88%
Analysis:
This chart depicts, the company have any Ambulance Room or Ambulance
Van.
 88% (22) of the members of management are saying yes regarding

these facilities.
 12% (3) of the members of management are saying no regarding these

facilities.
8. What prompted you to join this organization?
Sr. No. Option Chosen No. of employees % Employees

1 Good salary 10 40
2 Status 4 16
3 Welfare schemes 8 32
4 Any other 3 12
Analysis
 40% (10) strongly say that they joined the organization because of
Good Salary Package offered.
 16% (4) employees said that they joined organization for status.
 32% (8) employees said that they joined the organization because of
welfare schemes.
 12% (3) employees joined the organization because of others reasons.
9. What are the major goals/objectives of your organization?

2 agree 7 28
4 Disagree 3 12

Analysis
 28% (7) employees strongly believed that the objective of
organization is profitability.
 36% (9) said that the survival & growth is main objective of our
organization.
 24% (6) believe strongly that the efficiency in the level of service is
main goal of organization.
 12% (3) believed that the goal of the organization is other than the
specified above.
Q10. Are you satisfied with your current job profile?

1 Very satisfied 5 20
2 Satisfied 12 48

3 Not so satisfied 6 24
4 Unsatisfied 2 8
Analysis
 20% (5) employees are very satisfied with their current job profile.
 48% (12) employees are only satisfied with their current job profile.
 24% (6) employees said that they are not so satisfied with their current
job profile.
 8% (2) employees said that they are unsatisfied with their current job
profile..

QUESTIONNAIRE FOR EMPLOYEES
18Mark your satisfaction level with regard to following parameters,

1.
Cleanliness
16 are provided in your organization. (6 is best and 1 is worst)
which
14
Ventilation &
12 Parameters 6 5 4 Temperature
3 2 1
Cleanliness
10 15 8 2 - - -
Ventilation & Temperature 10 8 4
Spittoons
2 1 -
8
Spittoons 12 6 6 1 - -
Lighting
6 12 8 5 - -
Lighting -
Drinking Water 13 6 4 2 - -
4
2 Drinking
Water
0 Sharma
Bhumika
Page 51
6 5 4 3 2 1
Analysis
2. Mark your satisfaction level with regard to following parameters related
to safety in your department. (6 is best and 1 is worst)
Parameters 6 5 4 3 2 1
Fire Protection 8 4 6 3 2 2
Hoists and Lifts 9 6 3 7 - -
Self-Acting Machine 4 3 4 3 6 5
Analysis
3. Mark your satisfaction level with regard to following parameters

related to welfare in your department. (6 is best and 1 is worst)

Facility for Storing & Drying 12 6 3 4 - -
Clothes
Rest Room 14 8 3 - - -
First Aid/Medical Service 17 4 4 - - -
Canteen 17 5 2 1 - -
Analysis
4 Are you satisfied with the compensation given to you in case you get
injured at the work place?
1 Yes 18 72
2 No 7 28

No
28%
Yes
72%
Analysis:
This chart depicts, the management gives compensations facility to workers
 72% (18) of the members of management are saying yes regarding

these facilities to workers.
 28% (7) of the members of management are saying no regarding these

facilities to workers.
5. Do you get company Housing & Education facility?

1 Yes 16 64
2 No 9 36

No
36% Yes
64%
Analysis:
This chart depicts, the management gives Housing & Education facility to
workers
 64% (16) of the members of management say yes regarding these

 36% (9) of the members of management say no regarding these

Q6. Does your organization provides medical benefits apart ESI?

1 Yes 21 84
2 No 4 16

No
16%
Yes
84%
Analysis:
This chart depicts, the management gives Medical benefits as apart of ESI
facility to workers
 84% (21) members of management are saying yes regarding these

 16% (4) members of management are saying no regarding these

Q7. Are you satisfied with the present job profile?

1 Very satisfied 7 28
2 Satisfied 11 44

3 Not so satisfied 5 20
4 Unsatisfied 2 8
Unsatisfied
8%
Not So Very
Satisfied Satisfied
20% 28%
Satisfied
44%
Analysis
 28% (7) employees are very satisfied with their current job profile.
 44% (11) are only satisfied with their current job profile.
 20% (5) employees said that they are not so satisfied with their current
job profile.
 8% (2) employees said that they are unsatisfied with their current job
profile.
8. Are the methods used to give you welfare schemes are
genuine?

1 Most of the time 12 48
2 Some time 4 16
3 Once in a while 5 20
4 Never 4 16
Analysis
 48% (12) employees said methods of welfare are genuine most of the
times.
 16% (4) employees said methods of welfare are genuine only some
times.
 20% (5) employees said methods of welfare are genuine once in a
while.
 16% (4) employees said methods of welfare are never genuine.

9. How do you rate your organization?

1 Excellent 7 28
2 Very Good 11 44
3 Good 6 24
4 Average 1 4
Analysis
 28% (7) employees ranked their organization as excellent.
 44% (11) employees ranked their organization as very good.
 24% (6) employees ranked their organization as good.
 4% (1) employees ranked their organization as average.
SWOT ANAYLSIS
SWOT Analysis is a powerful technique for understanding the Strengths and

Weaknesses, and for looking at the Opportunities and Threats one might
face.
Used in business context, it helps an organization carve a sustainable niche

in the market. Used in a personal context, it helps one develop his/her career
in a way that takes best advantages of his/her talents, abilities and
opportunities.
Strengths and Weaknesses are internal factor .Opportunities and Threats

relate to external factors. For this reason, the SWOT Analysis is sometimes
also called as Internal-External Analysis.

SWOT Analysis mainly stand for
S = Strength
W = Weakness
O = Opportunities
T = Threats
STRENGTH
Strength describes the positive attributes, tangible and intangible, internal to

the object or topic.
 I was able to get response very quickly, as I didn’t have to face any
Red Tapism, need for higher management approval, etc.
 I was really able to study the actual position of the implementation of

the various legalization which are enforced in the company.
 The Employee Welfare & Social Security Schemes are regulated in

BTM, so I was able to collect information from the employees in true
sense.

 The Employee Welfare & Social Security Schemes motivate
employees and workers to do work with efficiency and effectively.
 The Employee Welfare & Social Security Schemes satisfied

economic and social needs of employees, so Employee Turnover in
BTM is very less.
WEAKNESSESS
It is always very difficult to complete a project with immaculate accuracy.

Likewise my project also had some weaknesses, they are stated below as:
 My study was limited to only one organization ie. BTM.
 Sample size was small as compared to the total work force.
 The scope of the study was limited to the structured questionnaire and
discussion guidelines.
 The scope of the study was limited to the verbal Interviews and
Guidelines.

 Time to conduct the study was less and as a result research could not
be as comprehensive as required.
OPPORTUNITIES
Opportunities assess the external attractive factors that affect the topic.
These opportunities exist in our surroundings.
The opportunities in Human Resource field are huge in terms of

employement.The facilities provided due to provisions under The Employee
Welfare & Social Security Schemes give chances for equality.
The Employee Welfare & Social Security Schemes give opportunities for
long term survival & growth by providing social benefits to its employees
and reduced Employee absenteeism and increased productivity.

THREATS
The threats are also external factors and influenced any object externally.
The threats related to my training topic are:
 The company has not linked Gratuity Act with LIC as, which deprive
them of enjoying benefits of LIC Schemes whereas its competitors
provided this facility to their workers, hence company should think
about it.
 Employees nowadays are very intelligent and ambitious, and they

want more & more, hence to satisfy them, well-defined and regulated
facilities should be provided to them.

 If The Employee Welfare & Social Security Schemes are not
properly provided, Employee turnover may increase and it can
become a threat for the organization’s survival and growth.
FINDINGS
Although the workers were more or less satisfied with various facilities
provided by the company, still there were certain facilities with which the
workers were not satisfied and required improvements. Some of them are
listed below which I encountered during my study on Employee welfare &
social security in BTM , Bhiwani.
 At present canteen is run by a contractor and a contractor is charging

market rate on foodstuffs. The company should increase its subsidy so
that foodstuffs are available on reasonable rates.
 The Organization does not provide Uniform to the workers.

 The Organization does not provide housing and education facility to
the workers.
 The Organization hasn’t increased the amount of emergency loans

provided to the workers since a long time.
 The Organization does not provide Long Service Rewards to its

employees.
SUGGESTIONS
 In my view the company should deduct PF and FPF on full basic
earning so that the employees at the time of retirement may able to get
maximum amount from pension Fund.
 At present Company is paying Gratuity @ 15 days Wages or salary

on one year service to all employees who completed five years
continuous services .In my view the employees who have been
working for more than 15 years should be allowed to get 20 days
salary instead of 15 days because by giving this benefit the employees
are able to compensate their interest on gratuity amount.

 Company should provide Sick leave Facility to those employees who
are not covered under ESI ACT.
 Unemployment resulting from modernization will have to be solved

by properly assessing manpower needs and training redundant
employees in alternate skills. Although this is difficult process and it
may be hurt some people there is no escape.
LIMITATIONS
 As I didn’t have significant knowledge on this topic, I was unable to

draw more information.
 The resources available were very limited and I faced problems

communicating with all the employees, as there was heavy noise
pollution in the plant.
 There was also lack of time and workers also were hesitant in
responding in the working hours.

CONCLUSION
In our country the industrialization started very late but we have rapidly
catching up with the progress achieved elsewhere and the expectation and
aspiration of worker are rising rapidly. They are demanding increasing
power and authority in the design making process. The Govt. is also looking
sympathetically towards the working class.
At BTM, Bhiwani workers are overall satisfied and contended. It is a boom

for the organization because satisfaction is a personal thing and an
organization can’t satisfy its worker only by giving more.
In the end we can conclude that workers are happy with the physical
working conditions inside the factory. Workers are also happy with the

safety parameters provided by the management, facilities of health and
recreation, facilities provided by the ESI, medical benefits provided by the
company & by the loan facility provided by the company.
BTM, Bhiwani is successful in maintaining good relationship with the

workers. The success of the organization is largely due to its workers as it is
an Employee intensive organization.
ANNEXURE
Questionnaire for Management
NAME - ………………………..
DATE - ………………………..
Q1. Do u think Company’s operating philosophy and culture is

beneficial to you?
A Strongly agree Agree
Strongly Disagree Disagree

Q2. Can the Company’s management style be described as
participative?
Q3. Do the managers in the Company work towards employee’s

satisfaction?
Q4. To what extent do you agree with the following statement “Human
resource planning is well integrated with strategic planning in our
company”.
Q5. Are the Employee welfare & social security facilities extended to
contract workers too?
A: YES NO
Q6. Is there any canteen management committee in your organization ?

A: YES NO
Q7. Is there any Ambulance Room or Ambulance Van in the

organization ?
A: YES NO

Q8. What prompted you to join this organization?
A Good Salary status
Q9. What are the major goals/objectives of your organization?
A Profitability Survival & Growth

Efficiency Any Other
Q10. Are you satisfied with your current job profile?
A Satisfied Very Satisfied

Not So Satisfied Dissatisfied
Questionnaire for Employees
Q1. Mark your satisfaction level with regard to following parameters,

which are provided in your organization. (6 is best and 1 is worst)
Cleanliness
Ventilation & Temperature
Spittoons
Lighting
Drinking Water
Q2. Mark your satisfaction level with regard to following parameters

related to safety in your department. (6 is best and 1 is worst)

Fire Protection
Hoists and Lifts
Self-Acting Machine
Q3. Mark your satisfaction level with regard to following parameters

related to welfare in your department. (6 is best and 1 is worst)
Facility for Storing & Drying
Clothes
Rest Room
First Aid/Medical Service
Canteen
Q4 Are you satisfied with the compensation given to you in case you get
injured at the work place?
A: YES NO
Q5. Do you get company Housing & Education facility?

A: YES NO
Q6. Does your organization provides medical benefits apart

ESI?
A: YES NO
Q7. Are you satisfied with the present job profile?

A Satisfied Very Satisfied
Not So Satisfied Dissatisfied

Q8. Are the methods used to implement welfare schemes
genuine?
A Never Sometimes
Many times Most Times
Q9. How do you rate your organization?
A Good Average
Very Good Excellent
BIBLIOGRAPHY
BOOKS AND JOURNALS
 MARKETING MANAGEMENT PHILIP KOTLER ,Tata

McGraw Hill Publication ,12th EDITION
 Human Resource Management in a Business Context by Alan
Price, 3rd edition (April 2007)
 Empowering Employees by Kenneth L. Murrell, Mimi Meredith
 Human Resource Management by Robert L. Mathis, John H.
Jackson,11th edition
MAGAZINES
 BUSINESS INDIA April, 2007

 UDYOG VYPAR PATRIKA. (HALF YEARLY )EDITION

 Employee Power MAGAZINE.JAN 2007
WEB SITE
 www.wikipedia.org
 www.grasimindia.com
 www.google.com
 www.yahoo.com


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INTRODUCTION OF THE TOPIC

1) They are established by law.

Men instead of money will have to be accepted as the most valuable

To study the Employee welfare scheme for the workers at Bhiwani

To gain maximum knowledge about practical work .

To work under an authority in discipline.

To see the employees practical work.

To complete the better project.

To understand the social security schemes, which are, provide to

To gain some experience about official work.

Bhumika Sharma Page 2

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REVIEW OF EXISTING LITERATURE

Welfare is a broad concept referring to a state of living on an individual or a

Employee welfare implies the setting up of minimum desirable standards

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The term Employee welfare may be viewed as a total concept, as a social

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

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At present, the concept of social security is based on recognition of the

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FOCUS OF THE STUDY

It is somewhat difficult to accurately lay down the scope Employee welfare

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These are conveniences facilities, which are the employees ordinarily,

Social security scheme includes

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Services are provided in three ways:

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Grasim Industries Limited

Aditya Birla Group operates over 40 companies in 12 countries across 4

Grasim Industries Limited was incorporated in 1948; Grasim is the largest

Grasim Industries Limited, a flagship company of the Aditya Birla Group,

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Viscose staple fibre

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Product quality, innovation and eco-friendliness are a hallmark of all the

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The questionnaire consists of the job profile as well as the recognition

The illiterate and low educated workers found it slightly difficult to

The respondent’s answers, opinions, suggestions and viewpoints have been

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Worker welfare should be understood as a meaning with services, facilities

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SN Facilities Description Section

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Sweeper Timing Area Of Work

 Ventilation & Temperature

BTM provides this facility as

o Engineering department is responsible for ventilation and

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The State Government may make rules:

Regulating the methods used for artificially increasing the humidity of

Under section 46 of The Factories Act, provides that a canteen shall be

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a) The date by which such canteen shall be provided

b) The standards in respect of construction, accommodation, furniture and

The lighting arrangement has also its importance. Poor lighting