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 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.
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.
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 |Creches |48 | 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 • Engineering department is responsible for ventilation and temperature maintenance. • Arrangement of carrier fans with spray nozzles during summer while arrangements of return air along with steam supply during winter. • Exhaust fans are also fitted to carry out the dust and fumes and for circulation of fresh air. ( 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. ( 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 ) 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. ) 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. ( Creches
Under Section 48 of The Factories Act, creches 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 Lunchrooms Under section 47 of the act every factory employing more than 150 workers must provide adequate and suitable shelters, rest rooms and a lunchroom 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. ) 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. ( Toilets And Urinals Section 19 Of The Act makes it obligatory to provide in every factory a) Sufficient toilet 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 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 prescribe 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 9 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. Its % 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 less then 20 persons. |10% of Wages in case less then 20 | | | |persons. | |PENSION |8. 33% of Employee Share. Central Government|NIL | | |to contribute 1. 6% | | |DEPOSIT LINK INSURANCE |1% |NIL | ( 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 or legs |25% of monthly wages paid fortnightly till | | | |recovery | |b) Permanent |Amputation of both hands or legs or loss of |60% of monthly wages or Rs. 90,000 whichever is | | |vision in both eyes |more. | |Partial Disablement | | | |a) Temporary |Fracture in both hands or legs |Upto 3 days nil.
Beyond 3 days 25% of monthly | | | |wages paid fortnightly till recovery | |b) Permanent |Permanent Amputation of both hands or legs or |50% of monthly wages or Rs. 80,000 whichever is | | |loss of vision in both eyes |more. | ( 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 ) 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/ miscarriage/ MTP|Prohibited from work or to work |By employer or woman | |1 Month |Period to 6 weeks before EDD |On arduous work/ continuous |By employer | | | |standing | | |Not. 6 Weeks |Before EDD |Leave with wages |At maternity rate | |Total 12 Weeks |Before and after delivery |Leave with wages |At maternity rate | |6 Weeks |After miscarriage/ MTP |Leave with wages |At maternity rate | |2 Weeks |Tubectomy operation |Leave with wages |At maternity rate | |1 Month |Illness due to pregnancy |Leave with wages subject tap |At maternity rate | |miscarriage/ MTP/ premature |production of certificate | | | |birth/ tubectomy | | | |Two Break In A Day |Nursing |Till child is a 12 month, |Those entitled to maternity | | | |Rs. 250, 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 wants to pay more than he can pay 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 Upton 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
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.
AN OVERVIEW
Close to 14% of the industrial output and 30% of the export market share is contributed directly by the Indian textile industry. Indian textile industry is also the largest industry when it comes to employment that generates jobs not just within but also in various support industries like agriculture. As per a recent survey the textile industry is going to contribute 12million newjobsinIndia by 2010 itself. Indian textile industry is as old as the word textile itself.
This industry holds a significant position in India by providing the most basic need of Indians. Starting from the procurement of raw materials to the final production stage of the actual textile, the Indian textile industry works on an independent basis. Indian textile industry concludes of various segments like: 1. Woolen Textile 2. Cotton Textiles 3. Silk Textiles 4. Readymade Garments 5. Jute And Coir 6. Hand-Crafted Textile Like Carpets 7. Man-MadeTextiles Indian textile industry in a very short span had made a distinct position globally, alluring the globe towards the ‘World of Indian textiles’. This has happened mainly because: • High availability of raw materials Highly skilled economical labor, an added advantage • Largest producer of cotton yarn contributing 25% towards worlds cotton • Availability of all kinds of fibers like silk, cotton, wool and even high quality synthetic fibers • Flexibility of the readymade garment industry in terms of sizes, fabric variety, quantity, quality and cost It’s not just the present that is shinning like a bright start but also the future, as the textile export market of India is expected to reach a high of $50 billion by 2010. This will eventually make a profit by 300%. In order to attain this target Indian textile industry has already started improving their design skills, including a combination of various fibers. Indian textile industry is all set to meet international standards and is planning to invest $5 billion in machineries very soon.
Most of the international brands like Marks & Spencer, JC penny, Gap have started procuring most of their fabrics from India. In fact, Walmart, who had procured textile worth $ 200 million last year, intends to procure $ 3 billion worth of textile this year. The golden phase of the Indian textile industry has just begun where the world is chasing it from all nooks and corners. New innovations in clothing production, manufacture and design came during the Industrial Revolution – these new wheels, looms, and spinning processes changed clothing manufacture forever. The ‘rag trade’, as it is referred to in the UK and Australia is the manufacture, trade and distribution of textiles.
There were various stages – from a historical perspective – where the textile industry evolved from being a domestic small-scale industry, to the status of supremacy it currently holds. The ‘cottage stage’ was the first stage in its history where textiles were produced on a domestic basis. During this period cloth was made from materials including wool, flax and cotton. The material depended on the area where the cloth was being produced, and the time they werebeingmade. In the later half of the medieval period in the northern parts of Europe, cotton came to be regarded as an imported fiber. During the later phases of the 16th century cotton was grown in the warmer climes of America and Asia.
When the Romans ruled, wool, leather and linen were the materials used for making clothing in Europe, while flax was the primary material used in the northern parts of Europe. During this era, the merchants who visited various areas to procure these leftover pieces bought excess cloth. A variety of processes and innovations were implemented for the purpose of making clothing during this time. These processes were dependent on the material being used, but there were three basic steps commonly employed in making clothing. These steps included preparing material fibers for the purpose of spinning, knittingandweaving. During the Industrial Revolution, new machines such as spinning wheels and handlooms came into the picture.
Making clothing material quickly became an organized industry – as compared to the domesticated activity it had been associated with before. A number of new innovations led to the industrialization of the textile industry in Great Britain. Clothing manufactured during the Industrial Revolution formed a big part of the exports made by Great Britain. They accounted for almost 25% of the total exports made at that time, doubling in the period between 1701 and 1770. The center of the cotton industry in Great Britain was Lancashire – and the amount exported from 1701 to 1770 had grown ten times. However, wool was the major export item at this point of time.
In the Industrial Revolution era, a lot of effort was made to increase the speed of the production through inventions such as the flying shuttle in 1733, the flyer-and-bobbin system, and the Roller Spinning machine by John Wyatt and Lewis Paul in 1738. Lewis Paul later came up with the carding machine in 1748 and in 1764 the spinning jenny was also developed. Richard Ark Wright invented the water frame in 1771. Edmund Cartwright invented the power loom in 1784. In the initial phases, textile mills were located in and around the rivers since they were powered by water wheels. After the steam engine was invented, the dependence on the rivers ceased to a great extent.
In the later phases of the 20th century, shuttles that were used in the textile industry were developed and became faster and thus more efficient. This led to the replacement of the older shuttles with the new ones. Today, modern techniques, electronics and innovation have led to a competitive, low-priced textile industry offering almost any type of cloth or design a person could desire. With its low cost labour base, China has come to dominate the global textile industry.
COMPANY PROFILE
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. Sponge Iron 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. 1947 • Grassy Industries Ltd is incorporated. 1950 Grasim launches production of fabrics at Gwalior using imported rayon – a man-made cellulose fibre. 1954 • Grasim begins rayon production at Nagda. 1962 • Grasim starts an engineering division to provide plant and machinery for VSF production. 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. 1968 • Rayon production commences at Mavoor, Kerala. 1972 • A completely indigenous plant based on Grasim’s own engineering and know-how, begins production at Harihar, Karnataka. 1977 • Grasim’s third rayon plant – at Harihar, Karnataka – goes into production. 1985 Vikram Cement – Grasim’s first cement plant – goes on stream at Jawad, Madhya Pradesh. 1987 • Vikram Cement’s second production line is commissioned. 1991 • A third production line is added at Vikram Cement. 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 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 1994 • Second issue of GDRs on June 15, 1994 for US $100 million. Nos: 4,878,048 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). 1996 • The first phase of Grasim’s fourth VSF plant commissioned at Kharach, Gujarat. 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. 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 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. 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 meters per annum. • Divests holding in Birla Technologies to PSI Data Systems. 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. 5 per cent 2003 • Grasim’s Chemical Division receives the SA 8000 (Social Accountability) and OHSAS 18001 certifications. • The board of engineering major Larsen & Toubro Ltd (L) decides to demerge its cement business into a separate cement company (CemCo). Grasim will acquire an 8. 5 per cent equity stake from L and then make an open offer for 30 per cent of the equity of CemCo, to acquire management control of the company. 2004 • Completion of the implementation process to demerge the cement business of L 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. • 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. • Grasim commences production of rayon grade caustic soda – a major raw material for VSF production – at Nagda; another step towards becoming self-reliant
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 & other such evils. 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.
JUSTIFICATION OF THE STUDY
Before carrying out a research study it is mandatory to state research problem in a definite manner. Regarding study, the research problem is to study and understand the topic i. e. employee welfare & social security. .
I have chosen this topic because I wanted to have in depth knowledge of employee welfare because some HR professionals inspired me to opt this topic. Moreover, I had keen interest to study about this topic i. e. employee welfare & social security of the Aditya Birla Group (of which Bhiwani Textile Mills is a subsidiary). My training guide suggested me this topic for research as employee welfare security is the basic activity and essential for each organization to take care of its manpower for its successful functioning. The main purpose of this study is to know how an organization can improve their employee welfare & social security schemes. Therefore I have selected this topic.
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.
FOCUS OF THE STUDY
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
RESEARCH METHODOLOGY
RESEARCH DESIGN
A research design is the specification of methods & procedure for acquiring the information needed. This is overall operation pattern or framework that stipulates information is to be collected from which sources and by what procedure. RESEARCH DESIGN USED: – In my project work I used exploratory research, as it aim to answering question about sale, brand availability, service quality, distribution pattern etc. For conducting this study, Exploratory Research design was used, since: – • It is natural. • It is flexible. It is useful to find out the most likely alternatives. • It is appropriate, when hypothesis have been established. The objective of exploratory research is to find out new ideas, it is important to give respondents to greatest freedom of response have conducted individually or in depth interview, by which respondent asked to project themselves into a particular situation. 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 ata from different levels of the organization, I have made “QUESTIONNAIRE FOR EMPLOYEES” form and “QUESTIONNAIRE FOR 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 management, & 25 from remaining Employees at all levels). Apart from their written choice the form of questionnaire, they have also been interviewed for crosschecking and proving authenticity of their choice. QUESTIONNAIRE The data is collected from 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 & bar graphs. On the basis of these classifications, pie charts & bar graphs 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.
ANALYSIS & INTERPRETATION QUESTIONNAIRE FOR MANAGEMENT
1. To what extent are the Company’s operating philosophy and culture understood by employees? |Sr. No. |Option Chosen |No. f employees |% Employees | |1 |Strongly agree |14 |56 | |2 |Agree |7 |28 | |3 |Strongly disagree |1 |4 | |4 |Disagree |3 |12 | ANALYSIS INTERPRETATION 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? |Sr. No. |Option Chosen |No. f employees |% Employees | |1 |Strongly agree |12 |48 | |2 |Agree |10 |40 | |3 |Strongly disagree |1 |4 | |4 |Disagree |2 |8 | ANALYSIS INTERPRETATION 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 and8% (2) of the employees disagreed. 3. To what extent do the managers in the Company work towards employee’s satisfaction? |Sr. No. |Option Chosen |No. f employees |% Employees | |1 |Strongly agree |12 |48 | |2 |Agree |9 |36 | |3 |Strongly disagree |3 |12 | |4 |Disagree |1 |4 | ANALYSIS INTERPRETATION 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”? |Sr. No. |Option Chosen |No. f employees |% Employees | |3 |Strongly disagree |3 |12 | |1 |Strongly agree |13 |52 | |2 |Agree |8 |32 | |4 |Disagree |1 |4 | ANALYSIS INTERPRETATION 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? |Sr. No. |Option Chosen |No. f employees |% Employees | |1 |Yes |17 |68 | |2 |No |8 |32 | ANALYSIS: INTERPRETATION 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? |Sr. No. |Option Chosen |No. f employees |% Employees | |1 |Yes |18 |72 | |2 |No |7 |28 | ANALYSIS: INTERPRETATION 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? |Sr. No. |Option Chosen |No. f employees |% Employees | |1 |Yes |22 |88 | |2 |No |3 |12 | ANALYSIS: INTERPRETATION This chart depicts, the company have an 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. f employees |% Employees | |1 |Good salary |10 |40 | |2 |Status |4 |16 | |3 |Welfare schemes |8 |32 | |4 |Any other |3 |12 | ANALYSIS INTERPRETATION 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? |Sr. No. |Option Chosen |No.
Of employees |% Employees | |1 |Profitability |7 |28 | |2 |Survival & Growth |9 |36 | |3 |Efficiency |6 |24 | |4 |Any Other |3 |12 | |5 |Total |25 |100 | ANALYSIS INTERPRETATION 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? |Sr. No. |Option Chosen |No. f employees |% employees | |1 |Very satisfied |5 |20 | |2 |Satisfied |12 |48 | |3 |Not so satisfied |6 |24 | |4 |Unsatisfied |2 |8 | ANALYSIS INTERPRETATION 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 1. Mark your satisfaction level with regard to following parameters, which are provided in your organization. (6 is best and 1 is worst) Parameters |6 |5 |4 |3 |2 |1 | |Cleanliness
