A Study On Effect of Welfare Measures On Employee Morale

1
A STUDY ON EFFECT OF WELFARE MEASURES

ON EMPLOYEE MORALE IN HIDESIGN,
PUDUCHERRY
SUMMER PROJECT REPORT
Submitted by
V.MAHESWARI
REGISTER NO: 27348322
Under The Guidance Of

Mr. G. BALA SENDHIL KUMAR, B.E., MBA
Faculty, Department Of Management Studies
in partial fulfillment for the award of the degree

of
MASTER OF BUSINESS ADMINISTRATION
DEPARTMENT OF MANAGEMENT STUDIES

SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE
PONDICHERRY UNIVERSITY
PUDUCHERRY
September 2007
2
SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE

MADAGADIPET PUDUCHERRY
DEPARTMENT OF MANAGEMENT STUDIES
BONAFIDE CERTIFICATE
This to certify that the project work entitled “A STUDY ON EFFECT OF

WELFARE MEASURES ON EMPLOYEE MORALE IN HIDESIGN,
PUDUCHERRY” is a bonafide work done by V. MAHESWARI [ REGISTER NO:
27348322] in partial fulfillment of the requirement for the award of Master of Business
Administration by Pondicherry University during the academic year 2007 – 2008.
GUIDE HEAD OF DEPARTMENT
Submitted for Viva-Voce Examination held on
EXTERNAL EXAMINER
1.
2.
3
TABLE OF CONTENT
LIST OF TABLES
LIST OF CHARTS
PAGE
CHAPTER TITLE
NO.
1 INTRODUCTION 1
2 REVIEW OF LITERATURE 8
3 OBJECTIVES OF THE STUDY 16
4 RESEARCH METHODOLOGY 17
5 DATA ANALYSIS AND INTERPRETATION 21
FINDINGS, SUGGESTIONS AND
6 RECOMMENDATIONS OF THE STUDY 42
7 CONCLUSION 44
LIMITATION OF THE STUDY AND SCOPE
8 FOR FURTHER STUDY 45
ANNEXURES
1. QUESTIONNAIRE
2. BIBLIOGRAPHY
4
ACKNOWLEDGEMENT
With the divine blessing of god, I take immense pleasure in stating the
acknowledgement for this project. I express my deep gratitude to Mr. N.KESAVAN,
Chairman, Mr.M.DHANASEKARAN, Managing Director and Mr.S.V.SUGUMARAN,
Vice Chairman, Sri Manakula Vinayagar Engineering College.
My special thanks to our college Mr.V.S.K.VENKATACHALAPATHY for extending

me morel support during the course of this work.
My special thanks to Mr.S.JAYAKUMAR, Head of the Department of Management

studies for his motivation and providing me the permission in doing this project.
I wish to thank my internal guide Mr. G.BALA SENDHIL KUMAR for being so
resource full from the beginning of this project and help to bring this project successfully.
I thank my external guide Mr.LUCAS, Advocate cum Personal Manager of

Hidesign, Puducherry for giving me this opportunity to do this project work in their
organization and for guiding me throughout the project duration
I wish to thank all other faculty members of the department for their co-operation
and encouragement throughout my project work.
I am also thankful to the all employee of Hidesign, Puducherry for providing me the
details about the company for the completion of the project.
Last but not least I thank my parents and friends who were very supportive to me
during this project.
5
ABSTRACT
The welfare measure is “An effort to make life worth living for workmen”. It
motivates employee to a great extent which leads to organizational growth. It is a major
factor which affects the employee morale.
The study on effect of welfare measure on employee morale in NCR, Puducherry

was done to evaluate the level of satisfaction of employees about welfare measures and its
effect on employee morale.
The main objective of the study is to measure the effect of welfare measure on
morale, level of satisfaction of employees regarding working condition and general attitude
of employee towards the organization.
Certain welfare measures provided by the company like medical facility, credit
facility, canteen facility, infrastructure facility, and certain factors of morale like
motivation. Job satisfaction interrelationships are considered in this study. This was a
descriptive research study. Nearly 50 samples were collected using simple random
sampling method. A questionnaire of 23 questions was prepared and data were collected
from the employees of NCR. Appropriate statistical tools were used to analyze the data.
From the study it is inferred that most of the employees were satisfied with the
welfare measures provided by the company. The employee morale was found to be good in
the company. The effect of welfare measure on employee morale was about 25%.
6
LIST OF TABLES
TABLE PAGE
TITLE
NO. NO.
5.1 EXPERIENCE OF RESPONDENT 21
5.2 LEVEL OF SATISFACTION OF SAFETY MEASURES 22
5.3 LEVEL OF SATISFACTION OF MEDICAL FACILITY 23
LEVEL OF SATISFACTION OF WORKING
5.4 ENVIRONMENT 24
LEVEL OF SATISFACTION OF RELATIONSHIP
5.5 BETWEEN SUPERVISOR AND WORKER 25
5.6 BETWEEN WORKERS 26
5.7 LEVEL OF MOTIVATION GIVEN TO EMPLOYEE 27
5.8 LEVEL OF FREEDOM GIVEN TO THE EMPLOYEES 28
STATUS OF GRIEVANCE HANDLING IN THE
5.9 COMPANY 29
5.10 WORK SATISFACTION LEVEL OF THE EMPLOYEE 30
SATISFACTION OF EMPLOYEES ABOUT WELFARE
5.11 MEASURES 31
ANALYSIS OF OPINION OF RESPONDENTS
REGARDING COMMUNICATION IN WORK PLACE
AND WORK SATISFACTION
5.12.1 (USING CHI-SQUARE) –OBSERVED COUNT TABLE 32
5.12.2 EXPECTED COUNT TABLE 32
5.12.3 CHI- SQUARE TABLE 32
REGARDING WELFARE SATISFACTION AND WORK
SATISFACTION (USING CHI-SQUARE) - OBSERVED
5.13.1 COUNT TABLE 34
REGARDING EXPERIENCE OF RESPONDENT AND
WORK SATISFACTION (USING CHI-SQUARE) -
5.14.1 OBSERVED COUNT TABLE 35
7
LIST OF TABLES
PAGE
TABLE TITLE
NO.
NO.

REGARDING MOTIVATION GIVEN TO EMPLOYEE
5.15.1 AND WORK SATISFACTION (USING CORRELATION) 37
5.15.2 CORRELATION TABLE 37

ANALYSIS OF RANKING GIVEN BY RESPONDENTS
REGARDING SATISFACTION OF WELFARE
MEASURES (USING WEIGHTED AVERAGE
5.16.1 METHOD) 39
5.16.2 WEIGHTED AVERAGE TABLE 39

ANALYSIS OF OPINION GIVEN BY RESPONDENTS
REGARDING SATISFACTION OF WELFARE
MEASURES AND EMPLOYEE MORALE (USING
5.17.1 REGRESSION METHOD) 40
5.17.2 REGRESSION TABLE 40

8
LIST OF CHARTS
PAGE
CHART TITLE
NO.
NO.
5.1 EXPERIENCE OF RESPONDENT 21
5.2 LEVEL OF SATISFACTION OF SAFETY MEASURES 22
5.3 LEVEL OF SATISFACTION OF MEDICAL FACILITY 23

LEVEL OF SATISFACTION OF WORKING
5.4 ENVIRONMENT 24
5.5 BETWEEN SUPERVISOR AND WORKER 25
5.6 BETWEEN WORKERS 26
5.7 LEVEL OF MOTIVATION GIVEN TO EMPLOYEE 27
5.8 LEVEL OF FREEDOM GIVEN TO THE EMPLOYEES 28
5.9 STATUS OF GRIEVANCE HANDLING IN THE COMPANY 29
5.10 WORK SATISFACTION LEVELOF THE EMPLOYEE 30

SATISFACTION OF EMPLOYEES ABOUT WELFARE
5.11 MEASURES 31
9
CHAPTER-1
INTRODUCTION
1.1 COMPANY PROFILE

10
1.2 INTRODUCTION TO THE STUDY
The study was conducted in HIDESIGN in othiampet, puducherry to

find the effect of welfare measures on employee morale.
The study intends to see the satisfaction level of the employee on the
facilities provided by the company and how these welfare measures boost the employee
morale.
The study on effect of welfare measure on employee morale gives the

management an indication of the level of satisfaction among the employees regarding the
general working condition and the other facilities provided by the organization. This helps
the management to know the general morale of the employees.
11
CHAPTER -2
REVIEW OF LITERATURE
Human Resource Management is the process of procuring, developing,

maintaining, and controlling human resources for effective achievement of organizational
goals. This project is focused on employee welfare measure and employee morale.
2.1 EMPLOYEE WELFARE – DEFINITION
Employee welfare means “the effort to make life worth living for workmen”.
When all basic facilities are provided and employees obtain satisfaction then the
productivity can be increased and development of the organization will be possible
CONDITIONS OF WORK ENVIRONMENT
1) Working conditions
 Temperature
 Ventilation
 Lighting
 Dust
 Smoke
 Fumes and gases
 Noise
 Humidity
 Posture – simple
 Hazard and safety complex devices
2) Factory Sanitation and Cleanliness:

 Provision of urinals in factories
 Provision of spittoons
 Provision for the disposal of waste and rubbish
 Provision for water disposal (drainage)
 Provision of proper bathing and washing facilities
 Cleanliness, white- washing and repair of buildings and workshops
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 Care and maintenance of open spaces, gardens, roads, etc
3) Welfare Amenities
 Provision and care of drinking water
 Canteen services
 Lunch
 Rest room
 Crèches
 Cloak rooms
 Other amenities
2.1.1 EMPLOYEES’ HEALTH SERVICES
1) Factory health services

 Medical examination of employees
 Factory dispensary and clinic treatment
 First aid and ambulance room
 Treatment of accidents and
 Health education and research
2) Recreation
 Playgrounds for physical recreation (athletics, games, gymnastics, etc)
 Social and cultural recreation (music, singing, dancing, drama, etc)
3) Workers education
 Education to improve skills and earning capacity
 Literacy
 Library, audio visual education, lecture programmes and
 Workers educational scheme and its working
4) Economic Services
 Employees’ co-operative societies
 Grain shops and fair price shops and
 Housing co-operatives
5) Housing for employees and community services

13
6) Study of the working of welfare Acts

 Factories Act
 Employees state insurance act
 Minimum wages act
7) Social Work in industrial Setting

 Family Planning
 Employee counseling
2.1.2 EMPLOYEE SERVICES AND BENEFITS
These are concerned with the process of sustaining and maintaining the work
force in an organization. They include
1) Safety provision inside the workshop
2) Employee counseling
3) The medical services
4) The recreational and other welfare facilities
5) Fringe benefits and supplementary items
2.1.3 EMPLOYEE MORALE - DEFINITION
According to Yoder “morale is a feeling, somewhat related to esprit de corps,

enthusiasm or zeal.Fippo has described morale “As a mental condition or attitude of
individuals and groups which determines their willingness to co-operate. Good morale is
evidenced by employee enthusiasm, voluntary conformance with regulations and orders,
and a willingness to co-operate with others in the accomplishment of an organization’s
objectives.
2.1.4 FACTORS AFFECTING MORALE
According to McFarland, the important factors which have a bearing on morale are
 The attitude of the executives and managers towards their subordinates.

 working conditions, including pay, hours of work, and safety rules
 effective leadership and an intelligent distribution of authority and responsibility in
the organization
 the design of the organization’s structure which facilities the flow of work and
 The size of the organization.
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2.1.5 CRITERIA THAT DETERMINES MORALE
Several criteria seem important in the determination of levels of workers

morale, such as
 The organization itself
 The nature of the work
 The level of satisfaction
 The supervision received
 The perception of the self
 Workers perception of the past awards and future opportunities for rewards
 The employees age
 The employee’s educational level and occupational level.
2.1.6 TYPES OF MORALE
Morale is generally referred to as high morale. According to McFarland, “high

morale exists when employee attitudes are favorable to the total situation of a group and to
the attainment of its objectives low morale exists when attitudes inhibit the willingness and
ability of an organization to attain its objectives
High morale is represented by the use of such term spirit, zest, enthusiasm,
loyalty, dependability and resistance to frustration. Low morale, on the other hand, is
described by such words and phrases as apathy, bickering, jealously, pessimism, fighting,
disloyalty to the organization, disobedience of the orders of the leaders, dislike of, or lack
of interest in, one’s job, and laziness.
2.1.7 MORALE AND PERFORMANCE
It has been pointed that “there is a little evidence in the available literature that
employee attitudes bear any relationship to performance on the job.
First, there are some who assert that high satisfaction leads to high
performance. The “Hawthorne” studies of 1930s seem to support this view, as do findings
of other studies.
15
Second, others take an opposite view. For example, Lyman Porter and Lawler
say that satisfaction results from high performance, because most people experience
satisfaction by accomplishing more tasks, like building a radio, or clinching a sale.
Third, still others claim that there is no consistent relationship between morale
and performance. Vroom found significant relationship between morale and performance
in only 5 out of 22 studies undertaken by him.
2.1.8 WARNING SIGNS OF LOW MORALE
Among the more significant of the warning signals of low morale are
 High rate absenteeism
 Tardiness
 High Labour turnover
 Strike and sabotage
 Lack of pride in work and
 Wastage and spoilage.
2.1.9 IMPROVING MORALE
A three-fold action may be initiated. In the first place, it is essential to change

the policy or to correct it immediately. Employees do not lose their respect for the boss
who admits his mistakes but they cannot respect one who makes too many, and they may
have contempt for one who refuses to admit his mistakes.
Second, misconceptions should be removed, and the correct position should be

explained to the employees.
Third, a reasonable attempt should be made to educate and convince the

employees.
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2.2 REVIEW OF LITERATURE FROM JOURNALS AND ARTICLES
Preserving Employee Morale during Downsizing
Karen E. Mishra, Gretchen M. Spreitzer and Aneil K. Mishra

Topic: Human Resource Management and Industrial Relations
Reprint 3927; winter 1998, Vol. 39, No. 2, pp. 83–95
Mishra propose a four-stage approach to downsizing, gleaned from interviews and
surveys that will retain workers' trust and sense of empowerment. The company should
consider all stakeholders' needs — survivors, laid-off employees, the community, local and
national press, and any affected government agencies. The implementation of all the
above, is the most important. Management should communicate frequently and be open
and honest.
How to Boost Employee Morale

By Betsy Gallup
April 9, 2006
The following are the ways to boost the employee morale.

 Treat employees with respect
 Show interest in your employees' personal lives
 Allow your employees to gain ownership of their jobs by being part of the
decision-making process
 Create a pleasant work environment
 Establish an employee recognition program
 Give clear direction and set priorities.
 Stand behind your employees. Be their greatest advocate.
17
Boost Employee Morale with an Employee Incentive Program

By: Trevor Marshall
Good managers know from their own observations that employee attitude affects
their work and eventually the company’s output.
It is essential that your incentive program will actually inspire and motivate them to
work efficiently and not just be competitive with each other. Healthy competition among
the company’s employees is good but too much of it may also cause the company to
disintegrate.
The company should still be very much hands-on with the whole employee
incentive program to ensure that the outcome of the employee incentive program will be
good.
Employee Welfare
By Regina Barr
Employee Welfare program is based on the management policy which is aimed
shaping perfect employees. Therefore the concept of employee welfare includes to aspects
namely physical and mental welfares
1. Applications of merit system or work performance system as the basis for employee
rewarding.
2. Providing the retired employees with the old age allowance.
3. Employee insurance program to provide the employee with better security.
4. Improvement in health security for the employees and their families so that they can
work confidently and productively.
5. Increase in basic salaries and pension as adjustment to the needs providing all work
units and their officials with vehicles to help support smooth mobility.
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2.3 DIAGRAMATIC REPRESENTATION OF THE STUDY
JOB
CANTEEN MEDICAL SATISFACTION
FACILITY FACILITY MOTIVATION
Effect of
welfare
WELFARE EMPLOYEE
SAFETY MEASURES MORALE
measure on
morale
WORK
INFRA CREDIT INTER ENVIRONMENT
STRUCTURE FACILITY RELATIOSHIP
19
CHAPTER-3
OBJECTIVES OF THE STUDY
 To study and analyze the safety and welfare measures of the employee.
 To evaluate the effect of the welfare measures on employee morale.
 To evaluate the satisfaction level of employee about the work environment.
 To find the level of satisfaction of employee about the facilities given by the
company.
20
CHAPTER -4
RESEARCH METHODOLOGY
4.1 RESEARCH – MEANING
Research is an art of scientific investigation. According to Redmen and Mary

defines research as a “systematic effort to gain knowledge”.
Research methodology is way to systematically solve the research problem. It is a

plan of action for a research project and explains in detail how data are collected and
analyzed. This research study is a descriptive research study.
4.2 RESEARCH DESIGN
A research design is a plan that specifies the objectives of the study, method to be
adopted in the data collection, tools in data analysis and hypothesis to be framed.
“A research design is an arrangement of condition for collection and analysis of

data in a manner that aims to combine relevance to research purpose with economy in
procedure”.
4.3 NATURE OF DATA
4.3.1 Primary data
The primary data are collected from the employees of HIDESIGN through a direct
structured questionnaire.
4.3.2 Secondary data
Company profiles, websites, magazines, articles were used widely as a support to

primary data.
4.4 SAMPLING SIZE AND TECHNIQUE
4.4.1 Size of the sample
It refers to the number of items to be selected from the universe to constitute as a

sample. In this study 50 employees of HIDESIGN in Puducherry was selected as size of
sample.
21
4.4.2 Sample design
The sampling technique used in this study is simple random sampling method.
This method is also called as the method of chance selection. Each and every item of
population has equal chance to be included in the sample.
4.4.3 Population design
The population of this study is the total employee in the company. It is finite
population. There are four production centers for the organization for this study I have
taken only employees in one production centre.
4.4.3 Questionnaire
The questions are arranged logical sequence. The questionnaire consists of a

variety of questions presented to the employees for the response. Dichotomous questions,
multiple choice questions, rating scale questions were used in constructing questionnaire.
4.5 STATISTICAL TOOLS USED
To analyze and interpret collected data the following statistical tools were used.
1) Percentage method
2) Weighted average method
3) Chi-square analysis
4) Correlation
5) Regression
4.5.1 Percentage method
The percentage is used for making comparison between two or more series
of data. It is used to classify the opinion of the respondent for different factors. It is
calculated as
No. of respondents favorable

x 100
Percentage of respondent =
Total no of respondents
22
4.5.2 Weighted average method
The weighted average method can be calculated by the following formula. This tool
is used to find the rank given by the respondents to the welfare measures. It can be
calculated as
XW = ∑ WX / ∑ X
Here
XW represents the weighted average

X represents the value of variable
W represents the weight given to the variable.
4.5.3 Chi-square analysis
Chi-square analysis in statistics is to test the goodness of fit to verify the

distribution of observed data with assumed theoretical distribution. Therefore it is a
measure to study the divergence of actual and expected frequencies.
The formula for computing chi-square is as follows.
Chi-square = ∑ {(O-E)2 / E}
The calculated value of chi-square is compared with the table of chi-square for the
given degrees of freedom at the specified level of significance. If the calculated value is
greater than the tabulated value then the difference between the observed frequency and
the expected frequency are significant. The degrees of freedom is (n-2) where ‘n’ is
number of observed frequencies and in case of contingency table the degrees of freedom is
(C-1) (R-1) where C is number of columns and R is number of rows.
It is used to find the relation between communication in work place and work
satisfaction. It is used to find the relation between welfare satisfaction and work
satisfaction it is used to find the relation between experience of respondents and work
satisfaction
23
4.5.4 Correlation
The correlation analysis deals with association between two or more variables.
The correlation does not necessary imply causation or functional relationship though the
existence of causation always implies correlation. By itself it establishes only co- variance.
It is used to find the degree of relationship between motivation and work satisfaction.
Cov(x, y) = 1/n ∑ x y – x y
x = 1/n  x2 – x 2
y = 1/n  y2 – y 2
Cov(x, y)
r= x X y
Here,
r = co-efficient of correlation
4.5.5 Regression
The Regression analysis deals with the nature of association between two or
more variables. In regression analysis we are concerned with the estimation of one variable
for a given value of another variable on the basis of an average mathematical relationship
between the two variables.
Y= a + bX
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CHAPTER- 5
DATA ANALYSIS AND INTERPRETATION
TABLE 5.1
EXPERIENCE OF RESPONDENT
Experience Frequency Percentage (%)

0-1 2 4.0
2-5 5 10.0
6-10 17 34.0
Above 10 26 52.0
Total 50 100.0
Inference:
From the table it infers that 52% of respondent are experienced above 10
years and 4% are less than one year.
CHART-5.1
EXPERIENCE OF RESPONDENT
60
50
40
Percentage
30
20
10
0
0-1 2-5 6-10 above 10
Experience
25
TABLE 5.2
LEVEL OF SATISFACTION OF SAFETY MEASURES
Opinion Frequency Percentage (%)
Highly satisfied 1 2.0
Satisfied 12 24.0
Neutral 12 24.0
Dissatisfied 19 38.0
Highly dissatisfied 6 12.0
Total 50 100.0
Inference:
From the table it infers that 38%of respondent are dissatisfied with the
safety measures and 24% of respondent are satisfied.
CHART-5.2
LEVEL OF SATISFACTION OF SAFETY MEASURES
26
50
Percentage 40
30
20
10
0
Highly Satisfied neutral Highly dissatisfied
Satisfied Dissatisfied
Safety Measures
27
TABLE 5.3
LEVEL OF SATISFACTION OF MEDICAL FACILITY
Highly satisfied 10 20.0
Satisfied 28 56.0
Neutral 3 6.0
Dissatisfied 6 12.0
Highly dissatisfied 3 6.0
Total 50 100.0
Inference:
From the table it infers that 56%of respondent are satisfied with the medical
facility and 12% of respondent are dissatisfied.
CHART 5.3
LEVEL OF SATISFACTION OF MEDICAL FACILITY
60
50
40
Percentage
30
20
10
0
Highly satisfied Neutral Highly dissatisfied
Medical Facility in the Company

28
TABLE 5.4
LEVEL OF SATISFACTION OF WORKING ENVIRONMENT
Opinion Frequency Percent

Satisfied 40 80.0
Neutral 8 16.0
Dissatisfied 2 4.0
50 100.0
Total
Inference:
From the table it infers that 80%of respondent are satisfied with the
working condition and 4% of respondent are dissatisfied.
CHART 5.4
LEVEL OF SATISFACTION OF WORKING ENVIRONMENT
100
80
60
Percentage
40
20
0
Satisfied Neutral Dissatisfied
Working Environment in the Company

29
TABLE 5.5
LEVEL OF SATISFACTION OF RELATIONSHIP BETWEEN SUPERVISOR AND
WORKER
Cordial 39 78.0
Moderate 10 20.0
Indifference 1 2.0
Total 50 100.0
Inference:
supervisor and 2% of respondent are dissatisfied.
CHART 5.5
LEVEL OF SATISFACTION OF RELATIONSHIP BETWEEN SUPERVISOR AND
WORKER
100
80
60
Percentage
40
20
0
cordial moderate indifference
Relation Between Supervisor and Worker

30
TABLE 5.6
LEVEL OF SATISFACTION OF RELATIONSHIP BETWEEN WORKERS
41 82.0
Cordial
8 16.0
Moderate
1 2.0
Indifference
50 100.0
Total
Inference:
workers and 2% of respondent are dissatisfied.
CHART 5.6
LEVEL OF SATISFACTION OF RELATIONSHIP BETWEEN WORKERS
100
80
60
Percentage
40
20
0
Cordial Moderate Indifference
Relation Between Workers

31
TABLE 5.7
LEVEL OF MOTIVATION GIVEN TO EMPLOYEE

Very high 7 14.0
High 17 34.0
Moderate 12 24.0
Low 10 20.0
Very low 4 8.0
Total 50 100.0
Inference:
From the table it infers that 14%of respondent are highly motivated and 8%
of respondent are not motivated.
CHART 5.7
LEVEL OF MOTIVATION GIVEN TO EMPLOYEE
40
30
Percentage
20
10
0
very high high moderate low very low
Motivation given to Employee

32
TABLE 5.8
LEVEL OF FREEDOM GIVEN TO THE EMPLOYEES

Very High 2 4
High 11 22
Moderate 15 30
Low 18 36
Very Low 4 8
Total 50 100
Inference:
From the table it infers that 22% of the respondent feels that freedom given to them
to express their ideas is high and 36% of the feel as low.
CHART 5.8
LEVEL OF FREEDOM GIVEN TO THE EMPLOYEES
40
30
Percentage
20
10
0
Very high High Moderate Low Very low
Freedom to express thier ideas

33
TABLE 5.9
STATUS OF GRIEVANCE HANDLING IN THE COMPANY
Opinion Frequency Percentage

Always 10 20
Sometimes 20 40
Rarely 13 26
Never 7 14
Total 50 100
Inference:
From the table we infer that 40% of the respondents are satisfied with the
grievance handling and 14% of the respondents are dissatisfied.
CHART 5.9
STATUS OF GRIEVANCE HANDLING IN THE COMPANY
50
40
30
Percentage
20
10
0
alw ays sometimes rarely never
Grievance Handling in the Company

34
TABLE 5.10
WORK SATISFACTION LEVELOF THE EMPLOYEE
Opinion Frequency Percent
Always 23 46.0
Sometimes 23 46.0
Rarely 4 8.0
Total 50 100.0
Inference:
From the table it infers that 46%of respondent are always satisfied with
work and 8% of respondent are rarely satisfied.
CHART 5.10
WORK SATISFACTION LEVEL OF THE EMPLOYEE
60
50
40
Percentage
30
20
10
0
alw ays sometimes rarely
Work Satisfaction of the Employees

35
TABLE 5.11
SATISFACTION OF EMPLOYEES ABOUT WELFARE MEASURES
33 66.0
Yes
17 34.0
No
50 100.0
Total
Inference:
From the table it infers that 33%of respondent are always satisfied with
welfare and 34% of respondent are not satisfied.
CHART 5.11
SATISFACTION OF EMPLOYEES ABOUT WELFARE MEASURES
70
60
50
Percentage
40
30
20
10
0
yes no
Satisfaction about Welfare

36
ANALYSIS OF OPINION OF RESPONDENTS REGARDING COMMUNICATION

IN WORK PLACE AND WORK SATISFACTION
(USING CHI-SQUARE)
Observed count
TABLE 5.12.1
Opinion Always Sometimes Rarely Total

Cordial 9 5 0 14
Moderate 9 6 6 21
Indifference 7 7 1 15
Total 25 18 7 50
Expected count
TABLE 5.12.2
Cordial 7 5 2 14
Moderate 10.5 7.6 2.9 21
Indifference 7.5 5.4 2.1 15
Total 25 18 7 50
Null Hypothesis:
H0: There is no significant difference between communication in work place

and work satisfaction.
CHI-SQUARE TESTS
TABLE 5.12.3
O E (O-E)2 (O-E)2/E
9 7 4 0.57
5 5 0 0
0 2 4 2
9 10.5 2.25 0.21
6 7.6 2.56 0.34
6 2.9 9.61 3.31
7 7.5 0.25 0.03
7 5.4 2.56 0.47
1 2.1 1.21 0.58
37
Calculated value = ∑ (O-E) 2 / E = 7.51

Degrees of Freedom = (R -1) (C-1) = 4
Tabulated value for 4 degrees of freedom at 5% level of significance is
9.48
Inference:
The calculated value is less than the tabulated value. H0 is accepted.

Therefore there is no association between communication in work place and work
satisfaction.
38
ANALYSIS OF OPINION OF RESPONDENTS REGARDING WELFARE

SATISFACTION AND WORK SATISFACTION
(USING CHI-SQUARE)
Observed count:
TABLE 5.13.1
Yes 20 12 1 33
No 7 6 4 17
Total 27 18 5 50
Expected count:
TABLE 5.13.2
Yes 17.8 11.9 3.3 33
No 9.2 6.1 1.7 17
Total 27 18 5 50
Null Hypothesis:
H0: There is no significant difference between welfare satisfaction and work
satisfaction.
CHI-SQUARE TESTS
TABLE 5.13.3
O E (O-E)2 (O-E)2/E
20 17.8 4.84 0.27
12 11.9 0.01 0
1 3.3 5.29 1.60
7 9.2 4.84 0.53
6 6.1 0.01 0
4 1.7 5.29 3.11
Calculated value = ∑ (O-E) 2 / E = 5.51

Tabulated value for 2 degrees of freedom at 5% level of significance is 5.99
Inference:
The calculated value is less than the tabulated value. H0 is accepted. Therefore there
is no association between welfare satisfaction and work satisfaction.
39
ANALYSIS OF OPINION OF RESPONDENTS REGARDING EXPERIENCE OF

RESPONDENT AND WORK SATISFACTION
(USING CHI-SQUARE)
Observed count:
TABLE 5.14.1
0-1 1 1 0 2
2-5 2 2 1 5
6-10 6 10 1 17
Above 10 14 10 2 26
Total 23 23 4 50
Expected count:
TABLE 5.14.2
0-1 0.9 0.9 0.2 2
2-5 2.3 2.3 0.4 5
6-10 7.8 7.8 1.4 17
Above 10 12 12 2.1 26
Total 23 23 4 50
Null Hypothesis:
H0: There is no significant difference between experience of respondent and
work satisfaction.
40
CHI-SQUARE TESTS
TABLE 5.14.3
O E (O-E)2 (O-E)2/E
1 0.9 0.01 0.01
1 0.9 0.01 0.01
0 0.2 0.04 0.2
2 2.3 0.09 0.04
2 2.3 0.09 0.04
1 0.4 0.36 0.9
6 7.8 3.24 0.41
10 7.8 4.8 0.62
1 1.4 0.16 0.11
14 12 4 0.33
10 12 4 0.33
2 2.1 0.01 0.004
Calculated value = ∑ (O-E) 2 / E = 3

Tabulated value for 6 degrees of freedom at 5% level of significance is
12.59
Inference:
The calculated value is less than the tabulated value. H 0 is accepted. Therefore
there is no association between experience of the respondent and work satisfaction
41
ANALYSIS OF OPINION OF RESPONDENTS REGARDING

MOTIVATION GIVEN TO EMPLOYEE AND WORK SATISFACTION (USING
CORRELATION)
Observed Count
TABLE 5.15.1
OPINION
ALWAYS SOMETIMES NEVER TOTAL
FACTORS
MOTIVATION(X) 24 12 14 50
WORK 28 19 3 50
SATISFACTION(Y)
CORRELATION TABLE
TABLE 5.15.2
X Y X2 Y2 XY
24 28 576 784 672
12 19 144 361 228
14 3 196 9 42
Cov(x, y) = 1/n ∑ x y – x y
= 1/3 (942-278)
= 35
x = 1/n  x2 – x 2
= √1/3(916-278)
= 5.14
y = 1/n  y2 – y 2
= √ 1/3(1154-278)
=10.28
42
Cov(x, y)
r= x X y
= 0.66
Inference:
The motivation given to employees and work satisfaction are positively

correlated. The increase in motivation will increase the work satisfaction also.
43
ANALYSIS OF RANKING GIVEN BY RESPONDENTS REGARDING

SATISFACTION OF WELFARE MEASURES
(USING WEIGHTED AVERAGE METHOD)
Observed Count
TABLE 5.16.1
OPINION
SATISFIED NEUTRAL DISSATISFIED TOTAL
FACTORS
MEDICAL 35 4 11 50
FACILITY
INFRA 27 9 14 50
STRUCTURE
CANTEEN 21 9 14 50
FACILITY
CREDIT 26 10 14 50
FACILITY
WEIGHTED AVERAGE TABLE

TABLE 5.16.2
FACTORS
Medical
Infra Canteen Credit
RANK WEIGHTS
Facility
structures Facility Facility
Facility
X W X1 WX1 X2 WX2 X3 WX3 X4 WX4
1 3 35 105 27 81 21 63 26 78
2 2 4 8 9 18 14 28 10 20
3 1 11 14 14 14 15 15 14 14
TOTAL 50 124 50 113 50 106 50 112
CW 2.48 2.26 2.12 2.24
RANK 1 2 4 3
CW (CALCULATED WEIGHT) = ∑ WXn / ∑ Xn
Inference:
From the table it is inferred that employees ranks medical facility followed
by infra structure with the canteen facility as last.
44
ANALYSIS OF OPINION GIVEN BY RESPONDENTS REGARDING

SATISFACTION OF WELFARE MEASURES AND EMPLOYEE MORALE
(USING REGRESSION METHOD)
Let X be the morale of the employee

Let Y be the satisfaction of welfare measures.
Observed Count
TABLE 5.17.1
OPINION
SATISFIED NEUTRAL DISSATISFIED
FACTORS
EMPLOYEE
116 36 48
MORALE(X)
WELFARE 28 19 13
MEASURES(Y)
REGRESSION TABLE
TABLE 5.17.2
(X-X)
2 2
X Y X-X X-X Y-Y Y-Y (Y-Y)
116 28 49 2440 11 130 563
36 9 -31 936 -8 58 233
48 13 -19 346 -4 13 67
Formula
bxy = ∑ ( x-x )( y-y )
∑ ( x-x )2
= 863/201
= 4.29
45
Regression Equation
X-X = bxy (Y-Y)

X = 4.3Y -6.1
Inference:
Excluding the constant, from the above equation we can infer that effect of
welfare measure on morale is measure is found as1:4. Therefore we can conclude that the
effect of welfare measure on employee morale is about 25%.
46
CHAPTER -6
6.1 FINDINGS OF THE STUDY
Most of the employees in the company are female. More than 50% of respondent
are working for more than 10 years. Most of the respondents are highly satisfied with the
medical facility. Most of the respondents are dissatisfied with the safety measure and only
few are satisfied.
Most of the employees are satisfied with the working condition. Most of the
respondents are satisfied with the motivation given by the company. Most of the
respondents are satisfied with the relation between supervisor and workers. Most of the
employees are satisfied with the relation between workers.
Most of the respondents are satisfied with the work. Most of the respondents are
satisfied with the welfare measures. Most of the respondents are satisfied with the canteen
facility. Most of the respondents are satisfied with the credit facility.
The communication in work place has no effect on work satisfaction. The welfare
measure satisfaction has no effect on work satisfaction. The increase in employee
motivation will increase the work satisfaction. The effect of welfare measures is about 25%
on employee morale.
47
6.2 SUGGESIONS AND RECOMMENDATIONS
 Since most of the employees are married the company can concentrate on
crèche facility.
 The company can improve the grievance handling system so that they can
increase the employee satisfaction.
 The company can provide safety equipments to the employees.
 The salary increment for employees will increase the employee satisfaction
and which in turn increase the employee morale.
48
CHAPTER - 7
CONCLUSION
The study on effect of welfare measure on employee morale helps

the management to know the satisfaction level of the employees about the welfare measure
provided by the company. From this study we can infer that the majority of the employees
are satisfied with the welfare measures. The company can concentrate on other facility like
crèche facility, uniform, and safety measures to boost the employee morale. The employee
morale is good in the company. It is found that the effect of welfare measure on employee
morale in this study is about 25%.
49
CHAPTER -8
8.1 LIMITATIONS OF THE STUDY
 The time period of the study is very short, so elaborate study was not made.
 Only certain factors are considered in this study to measure the effect of welfare
measure on employee morale.
 The conclusions and suggestions were formed based on employee’s spot response.
 Some false information may be given by the employee

50
8.2 SCOPE FOR FURTHER STUDY
 The sample size taken for this study is only 50, it can be extended to a larger
sample
 The study can be done by considering some other factors to measure the employee
morale
 This study can be used to measure the satisfaction level of employee.
 This study can also be extended to the other production centers of the company.
51
APPENDICES
ANNEXURE -1
A STUDY ON EFFECT OF WELFARE MEASURES ON EMPLOYEE
MORALE
QUESTIONNAIRE
PERSONAL DATA
1. Name :
2. Age :
(a) 18-25 (b) 26-35 (c) 36-45 (d) Above 45
3. Gender :
(a) Male (b) Female
4. Educational Qualification :
(a) Below Hr Sec (b) Hr Sec (c) UG (d) PG
5. Experience :
(a) 0-1 Yrs (b) 1-5 Yrs (c) 5-10 Yrs (d) Above 10 Yrs
6. Total Salary :
7. Designation :
8. Safety Measures :
8.1. Are you satisfied with the safety appliances in work place?
a) Highly satisfied b) Satisfied c) Neutral d) Dissatisfied
e) Highly Dissatisfied
9. Medical Facility
9.1 Specify the level of satisfaction
a) Highly satisfied b) Satisfied c) Neutral d) Dissatisfied
e) Highly Dissatisfied
9.2 Is there any periodical medical check up given to you
(a) Yes (b) No
10. ESI Benefits :
10.1 Do you have ESI car
(a) Yes (b) No
10.2 Do you get all the ESI benefits?
(a) Yes (b) No
52
11. Canteen facility

Specify the level of satisfaction
Highly Highly
Cleanliness
Hygienic
Serving
Price
12. Credit facility

12.1. Is any Advances and loan given to you are satisfied
(a) Very high b) high c) moderate d) low e) very low
Specify the level of satisfaction of other allowances

Highly Highly
Transport allowance
Attendance allowance
Punctuality allowance
Education allowance
13. Infra-structural facility :

Specify the level of satisfaction
Highly Highly
Rest room
Drinking water
Ventilation
Lighting
Toilets
Working
environment
Transportation
14. Inter-relationship:
14.1. Relationship between co-workers
(a) Cordial (b) Moderate (c) Indifferent
14.2. Relationship between supervisor and workers.
(a) Cordial (b) Moderate (c) Indifferent

53
14.3. Level of communication between supervisor and employee
(a) High (b) Very high (c) Low (d) Very low (e) Moderate
15. Level of motivation given to employee
(a) High b) Very high (c) Low (d) Very low (e) Moderate
16. Are u informed about all the management policies?
(a) Always (b) Sometimes (c) Rarely (d) Never
17. Does the management solve all your grievances?
18. Level of freedom to express your ideas?
(a) High (b) Very high (c) Low (d) Very low (e) Moderate
19. Are you satisfied with the work you do.
20. In general are you satisfied with the welfare and safety measures given by
Management?
(a) Yes (b) No
21. Suggestion for Improvements

54
ANNEXURE-2
BIBLIOGRAPHY
BOOKS
1. Kothari C.R., Research methodology, published by Tata Mc Graw-Hill Publishing

Company Ltd., 13th Edition, 1982.
2. Gupta, S.P., and Gupta, M.P., Business Statistics, Published by Sultan Chand & Sons, 7th
Edition, 1989.
3. Personnel Management by C.B.Mamoria & S.V.Gankar, Published by Himalaya
Publishing House.
WEBSITES
1. www.ncr.com

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1

A STUDY ON EFFECT OF WELFARE MEASURES

Under The Guidance Of

in partial fulfillment for the award of the degree

DEPARTMENT OF MANAGEMENT STUDIES

SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE

DEPARTMENT OF MANAGEMENT STUDIES

This to certify that the project work entitled “A STUDY ON EFFECT OF

GUIDE HEAD OF DEPARTMENT

Submitted for Viva-Voce Examination held on

My special thanks to our college Mr.V.S.K.VENKATACHALAPATHY for extending

My special thanks to Mr.S.JAYAKUMAR, Head of the Department of Management

I thank my external guide Mr.LUCAS, Advocate cum Personal Manager of

The study on effect of welfare measure on employee morale in NCR, Puducherry

5.14.3 CHI- SQUARE TABLE 36

5.15.2 CORRELATION TABLE 37

5.16.2 WEIGHTED AVERAGE TABLE 39

5.17.2 REGRESSION TABLE 40

5.1 EXPERIENCE OF RESPONDENT 21

5.2 LEVEL OF SATISFACTION OF SAFETY MEASURES 22

5.3 LEVEL OF SATISFACTION OF MEDICAL FACILITY 23

5.7 LEVEL OF MOTIVATION GIVEN TO EMPLOYEE 27

5.8 LEVEL OF FREEDOM GIVEN TO THE EMPLOYEES 28

5.9 STATUS OF GRIEVANCE HANDLING IN THE COMPANY 29

5.10 WORK SATISFACTION LEVELOF THE EMPLOYEE 30

1.1 COMPANY PROFILE

1.2 INTRODUCTION TO THE STUDY

The study was conducted in HIDESIGN in othiampet, puducherry to

The study on effect of welfare measure on employee morale gives the

Human Resource Management is the process of procuring, developing,

2.1 EMPLOYEE WELFARE – DEFINITION

CONDITIONS OF WORK ENVIRONMENT

2) Factory Sanitation and Cleanliness:

 Care and maintenance of open spaces, gardens, roads, etc

2.1.1 EMPLOYEES’ HEALTH SERVICES

1) Factory health services

5) Housing for employees and community services

6) Study of the working of welfare Acts

7) Social Work in industrial Setting

2.1.2 EMPLOYEE SERVICES AND BENEFITS

2.1.3 EMPLOYEE MORALE - DEFINITION

According to Yoder “morale is a feeling, somewhat related to esprit de corps,

2.1.4 FACTORS AFFECTING MORALE

 The attitude of the executives and managers towards their subordinates.

2.1.5 CRITERIA THAT DETERMINES MORALE

Several criteria seem important in the determination of levels of workers

2.1.6 TYPES OF MORALE

Morale is generally referred to as high morale. According to McFarland, “high

2.1.7 MORALE AND PERFORMANCE

2.1.8 WARNING SIGNS OF LOW MORALE

2.1.9 IMPROVING MORALE

A three-fold action may be initiated. In the first place, it is essential to change

Second, misconceptions should be removed, and the correct position should be

Third, a reasonable attempt should be made to educate and convince the

2.2 REVIEW OF LITERATURE FROM JOURNALS AND ARTICLES

Preserving Employee Morale during Downsizing

Karen E. Mishra, Gretchen M. Spreitzer and Aneil K. Mishra

How to Boost Employee Morale

The following are the ways to boost the employee morale.

Boost Employee Morale with an Employee Incentive Program

2.3 DIAGRAMATIC REPRESENTATION OF THE STUDY

OBJECTIVES OF THE STUDY

 To evaluate the effect of the welfare measures on employee morale.