Chapter – VI -...

Chapter – VI

LABOUR WELFARE AND ATTITUDE

TOWARDS MANAGEMENT

169

CHAPTER - VI

LABOUR WELFARE AND ATTITUDE

TOWARDS MANAGEMENT

6.1. Introduction

A proper organization and administration of welfare facilities can play a

vital role in promoting better working conditions and living standards for

industrial workers, and also in increasing their productivity. Production

depends upon the labour behavior and performance. The philosophies of labour

welfare as depicted in research studies show a concern for the workers’ well-

being coupled with the assumption that a satisfied worker will be instrumental

in higher production. In the report of the Committee on Labour Welfare 1969,

the scope of labour welfare covered such services, facilities and amenities as

adequate canteens, rest and recreation facilities, sanitary and medical facilities,

arrangements for travel to and from work place, for the accommodation of

workers employed at a distance from their homes, and such other services,

amenities, and facilities, including social security measures, as contributing to

improvement of the conditions under which workers are employed.1

In other cases, the definition is much more limited, and welfare, in

addition to general physical working conditions is mainly concerned with the

day to day problems of the workers and the social relationships at the place of

work. In some countries the use of welfare facilities provided is confined to

the workers employed in the undertaking concerned while in others the

1 L.M. Prasad, 2005, Human Resource Management, Sultan Chand & Sons, p. 538.

170

worker’s families are allowed to share in many of the benefits which are made

available. On the other hand, labour welfare has two sides, negative and

positive. On the one side, it is associated with the counteracting of the harmful

effect of large scale industrialization on the personal, family and social life of

the workers, while, on the other, and positive side, it deals with the provision of

opportunities for the worker and his family for a socially and personally good

life. Social security measures, which contribute to workers welfare, such as

industrial health insurance, provident fund, gratuity, maternity / paternity

benefits, workmen’s compensation, pension, retirement benefits etc. which are

the species of the larger family encompassed by the term labour welfare. After

a study of various reports and various works, we can conclude that all the

above mentioned activities are generally included under the scope of labour

welfare.

The health of the workers is the mirror of the prosperity of a country. If

the industrial worker is sick, the industrial unit will be sick. To neglect the

labour class is to neglect productivity, because, ultimately, country’s welfare

lies in their welfare. In India, labour welfare measures become all the more

important because of the reasons like low level of wages, irregular working

hours, inability of trade union to undertake welfare work, to build up a stable

labour force, to create a committed labour force, for creating a genuine welfare

state, to create good psychological feelings and to create good moral habits.

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If the environment of the organization helps in satisfaction of various

needs of the labourer, he will develop pro or favorable attitude towards job,

organization and finally towards people of management. Otherwise, the

dissatisfied workforce may lead to negative or unfavorable attitude towards

management, work and organization. If the organization fares well, then the

workers develop positive attitude which not only enhances the effectiveness of

an organization, but also is also desirable for their own sake. Thus, if

management goes on working for the welfare of the labourer, the labourers feel

satisfied with their job and they get the motivation for their work.

Simultaneously, the workers develop a pro-management attitude and so labour

welfare facilities affect the labourer behaviour.

In India every employer must implement the provisions of Factory Act.

Undoubtedly, the facilities like education, housing, medical, recreation, safety,

interest free loan, canteen and good working conditions enhance the workers’

capacity to work sincerely. Better facilities always motivate a worker towards

work in a laudable manner. These welfare activities will work as incentives for

the workers. If these facilities are being provided at an organization, the

workers will be satisfied and their attitudes towards management will be pro

and positive. Simultaneously, if the workers are not satisfied, their attitudes

will be anti and negative towards management. Results indicate that better

welfare perceived workers have more favourable attitudes towards

management in comparison to poor welfare perceived workers in private sector

as well as those in public sector.

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6.1.1. Labour Welfare

The Encyclopedia of Social Sciences defines welfare work as, Voluntary

efforts of an employer to establish within the existing industrial system,

working and sometimes living and cultural conditions of his respondents

beyond what is required by law, the customs of industry and condition of the

market’.2

In its resolution of 1947, International Labour Organisation defines

labour welfare as, ‘such services, facilities and amenities as adequate canteens,

rest and recreation facilities, arrangements for travel to and from to work and

for the accommodation of workers employed at a distance from their houses,

and such other services, amenities and facilities and contribute to improve the

conditions under which workers are employed.3

Labour welfare, also termed as ‘Employee Services’, is held to comprise

of basically three types of services; for example Pensions, insurance, health,

and accident services, the recreational and facilities Medical services, housing,

cafeteria, legal and financial counseling education and library services.

A worker’s well-being, inside as well as outside the factory, is mainly an

employer’s concern, because it has a direct bearing on the efficiency of his

work. Unhappiness at home often affects a man’s conduct at work. Maximum

production and raising the standard of living of workers are impossible without

scientific labour welfare activities. It is the right of the worker as a human 2 Encyclopedia of Social Sciences, 1985, Vol. 15, p. 395. 3 Aparna Raj, 2003, “Industrial Relations in India Issues,” Institutions and Outlook, New Delhi,

New Century Publications, India, p. 270-271.

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being to get the minimum amenities which, in turn, contribute to a very large

extent towards production efficiency.

6.1.2. Objectives of Labour Welfare

Improving the efficiency of the workers is another objective of labour

welfare. Efficiency reaps a double reward, one in the form of increased

production and the other in the shape of higher wage. Welfare measures to

improve the working conditions of the workers add their efficiency and

efficiency in turn help the workers to earn more wages. Therefore, it may be

said that welfare in industry is twice blessed. It helps the employer and the

employee.

6.1.3. Labour Welfare and Social Welfare

Labour welfare is a significant aspect of social welfare, an ideal which is

cherished by all civilized countries including India. If ‘labour’ means any

productive activity, and ‘welfare’ means the physical, social, psychological or

mental and general well-being, then the term ‘labour welfare’ is bound to have

wide contours.4 The concept of labour welfare shall necessarily be dynamic,

bearing a different interpretation from country to country, according to its value

systems, social institution, and degree of industrialization and general level of

social and economic development. It is because of this reason that no definition

of labour welfare has found universal acceptance.

4 M.V. Moorthy, 1958, Principles of Labour Welfare, Gupta Bros, Vishakhapatnam, p. 1-9.

174

The concept of labour welfare originated in the desire for a humanitarian

approach5 to ameliorate the sufferings of the workers and their families on

account of large-scale industrialization like undesirable social consequences

and the labour problem which have evolved in the process of transition from

tradition to modernity.

6.1.4. Significance of Labour Welfare

Labour Welfare contributes towards the maintenance of employee

morale. It is one of the major determinates of industrial relations. The whole

field of welfare is one in which much can be done to combat the sense of

frustration of the industrial worker, to relieve him of personal and family

worries to improve his health, to afford him a means of self expression, to offer

him some sphere in which he can excel all others, and to help him to a wider

conception of life. Welfare measures also play a significant role in reducing

absenteeism and labour turnover in industries; they help respondents to adjust

themselves to the industrial environment.

The need for labour welfare in India which has embarked upon a vast

programme of industrialization is all the more important since it creates a

healthy atmosphere in the work place, keeps the labour force stable and

contented, helps in maintaining industrial peace, thereby improving productive

efficiency of the workers.

5 Cyril Curtis Ling, 1979, The Management of personnel Relations, p. 71-73.

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6.1.5. Labour Welfare in ILO

The ILO session held at New Delhi in 1947 defined Labour Welfare as “

such services, facilities and amenities, which may be established in or in the

vicinity of, undertakings to enable persons employed there in to perform their

work in healthy, congenial surroundings and to provide them with amenities

conductive to good health and good morale and that labour welfare covers all

the efforts which employers make for the benefit of their respondents over and

above the minimum standard of working conditions fixed by Factories Act and

over and above the provision of social legislation providing against accident,

old age, unemployment and sickness”.6

6.1.6. Concept of Labour Welfare

The concept of labour welfare is dynamic, flexible and elastic. It has

been, thus, interpreted in different ways from time to time; region to region,

industry to industry depending upon the value system, level of education, social

customs, degree of industrialization and of the socio-economic development of

people and political ideologies prevailing at a particular time. The Oxford

Dictionary defines labour welfare as “efforts to make life worth living for

workers”.7

The Labour Investigation Committee defined labour welfare as:

“Anything done for intellectual, physical, moral and economic betterment of

6 Joshi, N.M., 1927, “Trade Union Movement in India”, Longmans Green & Co., Bombay, p. 26. 7 Hopkin, R.R., 1955, A Handbook of Industrial Welfare, p. 1.

176

the workers, whether by employers, by government or by other agencies, over

and above what is laid down by law or what is normally expected on the part of

the contractual benefits for which workers may have bargained.8

6.1.7. Scope of Labour Welfare

With regard to the scope of labour welfare the International Labour

Orgainsation (ILO) observed, that the term is one which lends itself to various

interpretations, and it has not always the same significance in different

countries. Labour Welfare means “such services, facilities and amenities which

may be established in or in the vicinity or undertakings to enable persons

employed therein to perform their work in healthy and congenial surroundings

and to provide them with amenities conducive to good health and good

morals”.9

The scope of labour welfare is fairly wide and is not limited to any one

country, region, industry or occupation. However, all activities, facilities,

amenities which aim at ameliorating the working and living conditions of the

workers and their families which in turn make their lives more meaningful may

be included in the scope of labour welfare.10

The Study Team, appointed by the Government of India in 1959 to

examine labour welfare activities then existing, divided the entire range of

8 Government of India, 1946, Report of the Labour Investigation Committee, Delhi, p. 336. 9 International Labour Organisation, Report II, Provision of Facilities for the Promotion of Worker’s

Welfare, Asian Region Conference, p.3. 10 Laldas, D.K., 1991, Personnel Management Industrial Relations and Labour Welfare, Y.K.

Publishers, Agra, p. 315.

177

these activities into three groups, viz., Welfare within the precincts of an

establishment: medical aid, crèches, canteens, supply of drinking water, etc.,

Welfare outside the establishment: provision for indoor and outdoor recreation,

housing, adult education, visual instruction, etc. and social security.11

6.1.8. Labour Welfare Inventory

This inventory is developed by Srivastava12 (2004) to measure how

much the labourers are satisfied or dissatisfied with the welfare facilities

provided by the management in the organization. There is a total of 47 items in

this inventory. This inventory measures eight dimensions of Labour Welfare

Activities, which are as follows: Education, Recreation, Medical, Subsidized

loan, Canteen, Housing, Safety and others general well being of workers.

6.2. Common Welfare Programmes in Industry

Industrial welfare has a very wide scope. It embraces multicast of

activities dealing with education, health, medical aid, working conditions,

recreation, housing, safety, general well-being and efficiency of the workers.

The following can be listed as some of the more important employee service

programmes. 1) Good working conditions with regard to temperature,

ventilation, lighting, cleanliness and sanitation. 2) Devices such as rest breaks

and change of work to break monotony and to prevent fatigue. 3) Seating

11 Government of India, “Report of the National Commission on Labour”, 1969, p. 112. 12 Srivastava, S.K., 2004, “Impact of Labour Welfare on Employee Attitudes and Job satisfaction”,

Management & Labour Studies, Vol. 29, February, p. 31 – 41.

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arrangements for workers obliged to work in standing position to take rest

when they get a spell of time. 4) Safety devices and safe education to prevent

industrial accidents. 5) Medical aid and care of respondents and their

dependents. 6) Sports, games and other recreational activities. 7) Housing

facilities for respondents. 8) Social security schemes such as pension, provident

fund, gratuity, accident compensation, etc., 9) Thrift and saving schemes.

10) Co-operative societies and stores. 11) Holiday arrangements with pay.

12) Transport to and from work. 13) Mess rooms. 14) Canteens. 15) Protection

against fire. 16) First aid appliances. 17) Protective clothes and equipments.

18) Lockers. 19) Scholarships for respondents’ children, schools and other

educational facilities. 20) Drinking water. 21) Restrooms. 22) Bathrooms.

23) Latrines. 24) Cloakrooms. 25) Crèches. 26) Leave fare assistance to

encourage respondents to spend annual leave away from the work place and to

enable them to visit other industrial cities or other parts of the country as they

desire. 27) Maternity benefits. 28) Technical and social, educational and

training programmes for workers. 29) Reading room and library. 30) Good

communication methods including a house magazine. Employee services are

good incentives in industry for production efficiency and sound industrial

relations.13

13 Pylee, M.V. Simon George. A, “Industrial Relation and Personal Management”, Vikas Publishing

House Pvt. Ltd., 1996, p. 91-92.

179

6.2.1. Company quarters

Some organizations construct flats for their respondents and provide the

same either free or at a nominal rent. In some cases, cash compensations are

given while in other cases, loans are advanced to the respondents to enable

them to construct or purchase their own houses or flats. It is generally

observed in the units that the company’s quarters are inadequate. In our

personal observation and discussion with the workers, it was observed that the

facility available is an inadequate one.

Table - 6.1

Provision of Company Quarters of Employees

S.

No. Category No. of Respondents Percentage

1. Satisfied 201 57.40

2. Not Satisfied 149 42.60

Total 350 100.00

Source: Primary Data

The Table 6.1 shows that 201(57.40%) respondents are found satisfied

with the provision of company quarters and 149(42.60%) respondents have

been dissatisfied with the provision of company quarters of employees. Hence

we assume that 57 per cent of respondents are satisfied with provision of

company quarters of employees.

180

6.2.2. Location of Industries

The industries are situated in semi urban and rural areas. The workers

are coming from various places. Some of them are staying near the industries

at a walkable distance, some workers are living in town areas and others are

staying in suburban areas. It is generally observed that some workers are late

comers on some days because they are staying in distant places. So the

management should take care about it and provide residence facilities near the

industries.

Table - 6.2

Distance between House and Work Place

S.


1. Walkable distance 98 28.00

2. Within city limit 180 51.40

3. Sub urban 72 20.60

Total 350 100.00


It could be seen from Table 6.2 that 98(28.00%) respondents are staying

in a house which is at a walk able distance, 180(51.40%) respondents are

staying in a house which is within city limit and 72(20.60%) respondents are

staying in a house which is at an urban area.

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6.2.3. Staying of Employees

In our general observation in the units, majority of workers are staying

in rented houses and some workers in their own houses. The discussion held

with the workers and executives regarding the staying of employees reveal that

they expect the management to provide facilities to the employees in future. So

the management should take care of it and provide the facilities to the workers

and thus increase their productivity.

Table – 6.3

Types of Residence

S.


1. Rented House 251 71.71

2. Own House 99 28.29

Total 350 100.00


It could be seen from Table 6.3 that 251(71.71%) respondents have been

staying in a rented house, and 99(28.29%) respondents are staying in their own

house.

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6.2.4. Conveyance

Companies provide conveyance facilities to their respondents from the

place of their residence to the place of work as most of the industries are

located outside town and all respondents may not get quarter facility. As per

the Act, the industries should provide conveyance facilities like van and bus

etc., to their employees. It is generally observed that the Mode of Conveyance

of Employees in the units is an adequate one.

Table – 6.4

Mode of Conveyance of Employees

S.


1. Two wheelers 247 70.60

2. Bus 103 29.40

Total 350 100.00


It could be seen from Table 6.4 that for 247(70.60%) respondents the

mode of conveyance is Two wheeler and 103(29.40%) respondents are using

bus as their mode of conveyance.

6.2.5. Medical benefits

Health is one of the foremost things for the respondents and it is but

natural that there may be some injuries because of accidents while working. So

first-aid facilities must be provided for within the factory premises. In addition,

medical scheme is generally in operation under which reimbursement of

medical expenses actually incurred is allowed. The organization may also

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prescribe doctors from whom the respondents may get services in case of need.

Some of the large organizations provide medical benefits to their retired

respondents and their family members. This benefit creates a feeling of

permanent attachment with the organization to the respondents even while they

are in service. As per the official report of industries, the medical facilities

provided to the employees of the orgainisations are very good. In emergency

case, workers are treated in Cuddalore at Krishna hospital and Kannan

Hospital. If necessary, for further treatment, they are also sent to Appolo

Hospital in Chennai with a grant of one lakh rupees. The discussion held with

the workers and executives regarding Medical Benefits of Employees revealed

that the employees are highly satisfied with the benefits.

Table – 6.5

Medical Benefits of Employees

S.

No. Category

No. of

Respondents Percentage

1. Highly Satisfied 72 20.60


3. Neither satisfied nor dissatisfied 98 28.00

Total 350 100.00


It could be seen from Table 6.5 that 72(20.60%) respondents have stated

that the medical benefits provided are highly satisfied, 180(51.40%)

respondents are satisfied and 98(28%) respondents have stated that the medical

benefits provided are neither satisfied nor dissatisfied. Therefore, 72 percent

respondents are having a favourable mindset about the medical benefits

provided by the organization.

184

6.2.6. Periodical medical checkup

The periodical medical examination is necessary at suitable intervals -

say every two or three years. That would be beneficial both to the worker and

the employer. Many of the enterprises have adopted the scheme of regular

checkup of their respondents after the age of forty. The discussion held with

the workers and executives regarding Medical Checkup of Employees reveal

that they are highly satisfied with the practice. It is generally observed that

Periodical Medical Checkup of Employees in the units is an adequate one.

Table - 6.6

Periodical Medical Checkup of Employees

S.

No. Category

No. of




Total 350 100.00


It could be seen from Table 6.6 that 221(63.10%) respondents’ have

opined that the organizations are conducting a periodical medical check up is

satisfactory and 129(36.90%) respondents’ have opined that the organization is

conducting a periodical medical check up is neither satisfied nor dissatisfied.

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6.2.7. Canteen facility

In factories employing more than 250 workers, provision of canteens is

necessary. To prevent waste of working time at the canteen, food, tea and

snacks can be taken to the workers at their work spots by the canteen staff. As

per the official reports of selected units, the wholesome Canteen Facility being

provided to the workers is a satisfied one. Our personal observation and the

discussions held with the workers revealed that the facility available is found

satisfactory in the units.

Table – 6.7

Opinion about the Canteen Facility

S.

No. Category

No. of




Total 350 100.00


It could be seen from Table 6.7 that 149(42.60%) respondents have

opined that the canteen facility provided by the organization is a satisfied,

201(57.40%) respondents’ opined that the canteen facility provided by

organization is neither satisfied nor dissatisfied.

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6.2.8. Quality of Food Offered in Canteen

It is necessary to supply quality food to employees through canteen in

industries. Quality of food is the most essential to be provided in industrial

orgainisations. There should be adequate arrangements to provide quality of

food to the workmen at their work place. As per the official reports of selected

units, wholesome quality of food facilities is being provided to the workers in

the canteen. The personal observation and the discussions held with the

workers revealed that the quality of food available in canteen is satisfactory in

the units.

6.2.9. Shelters and Restrooms

In factories where more than 150 workers are employed adequate and

suitable rest shelters for taking meals or rest during intervals must be provided.

As per rules, even the canteen shelter may be regarded as rest room. Every

shelter should have a floor area of not less than 14 square meters and it should

be constructed to afford effective protection to the workers from bad weather.

Further it is necessary that adequate supply of cool and wholesome drinking

water should be provided in these rest rooms during the working hours. It is

also necessary that the rest houses are to be kept in a clean and tidy condition.

It is observed that in the units adequate number of rest rooms is provided at all

suitable places. These shelters are maintained with required minimum facilities

like drinking water supply.

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Table - 6.8

Shelters and Restrooms of Employees

S.

No. Category

No. of




Total 350 100.00


The Table 6.8 shows that 201(57.40%) respondents have been satisfied

with shelters and restrooms of employees and 149(42.60%) respondents have

been dissatisfied with shelters and restrooms of employees. It is generally

observed that 57 percent of respondents are satisfied with Shelters and

Restrooms of Employees.

6.2.10. Recreational facilities

The management may provide for indoor games like Table Tennis in the

common room for respondents. In case of big organizations, management may

also arrange for playgrounds for outdoor games and induce the workers to

prepare teams to play matches with other similar teams. Co-operation and

understanding among the respondents will increase. Management may also

provide for reading rooms, libraries, radios, T.V. etc. for the recreation of the

respondents. Our personal observation and the discussions held with the

workers revealed that 91 percent of employees are satisfied with the facilities

available.

188

Table – 6.9

Recreational Facilities of Employees

S.




Total 350 100.00


The Table 6.9 shows that 319(91.10%) respondents are satisfied with the

recreational facilities provided by the organization and 31(8.90%) respondents

are dissatisfied with the recreational facilities provided by the organization.

Hence, we assume that 91 percent of the respondents are satisfied with the

recreational facilities provided by the organization.

189

Table – 6.10

Labour Welfare of employees

S.

No. Category N Mean

Std.

Dev. Rank F Sig.

1. Provision of Company quarters 350 1.00 0.00 8 42.17 4.02

2. Distance 350 0.91 0.28 10 30.55 5.99

3. Staying 350 1.13 0.84 7 35.93 6.56

4. Conveyance 350 1.22 1.26 6 10.89 0.00*

5. Medical benefits 350 2.71 0.46 1 12.72 0.00*

6. Periodical medical checkup 350 1.93 0.69 3 12.17 0.02*

7. Canteen facility 350 2.26 0.97 2 41.51 6.87

8. Dining room 350 1.43 0.50 5 32.71 9.64

9. Shelters and Restrooms of Employees

350 1.02 0.00 9 45.11 3.86

10. Recreational facilities 350 1.78 0.76 4 34.15 2.89

Source: Primary Data *level of significance at 5% level

The Table 6.10 shows the ranking based on mean perception scores of

the respondents. The weights assigned for the collected information in the

level of agreement of the respondent is “5” who strongly agree or satisfied to

“1” who strongly disagrees or dissatisfied. Highest scores imply positive

reaction and favourable attitude of respondents. Therefore, statement in the

highest mean perception score is the most preferred one and statement with the

lowest mean perception score is the least preferred one. An examination of the

table depicts the following: The respondents feel that the welfare measure

given by the company in terms of medical benefit with mean score of 2.71 is

ranked as 1. Canteen facility with mean score of 2.26 is ranked as 2. Periodical

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medical checkup with a mean score of 1.93 is ranked as 3. Recreational

facilities with a mean score of 1.78 are ranked as 4. Standard deviation has

been used to know how the opinions of respondents are fluctuating from their

central tendency (i.e.,) Mean. It has been found that the deviations from the

central tendency (mean) are relatively less fluctuating. This confirms that the

attitude of the respondents towards the significance of welfare measure

improves the quality of the respondent’s lifestyle and it leads to increase in the

performance of respondents. This proves that the respondents are satisfied

towards the welfare measure given by the concern.

Further to test with the ANOVA by formulating a null hypothesis that is

the perception about the labour productivity and welfare measure which does

not differ among the cadre. The analysis of the table shows that the null

hypothesis is rejected to following factors such as conveyance, medical

benefits and periodical medical checkup leading to the acceptance of the

alternative hypothesis that there is significant difference in the perception about

the labour productivity and welfare measure which does not differ among the

cadre.

6.3. General working conditions

Chapter III of the Factories Act, 1948 deals with the provisions

regarding health. It lays emphasis on the conditions inside the factory as an

important factor in the health and safety of the workers

191

6.3.1. Ventilation and Temperature

Ventilation is an important factor for good working conditions. Effects

of deficient ventilation are detrimental to the health of the workers. Work

place must be properly ventilated. Inadequate ventilation affects the health of

the workers. The Management of Industries has taken necessary steps to

provide fresh air and to exhaust polluted air from the work spot. For this

purpose, giant size exhaust fans are installed at every place. To a large extent,

these exhaust fans are able to remove the polluted air and dust from the work

places. It is noticed that the ventilation measures taken by the Industries are

working effectively.

Table – 6.11

Ventilation and Temperature Provided In the Working Place

S.





4. Not at all Satisfied 40 11.40

Total 350 100.00



opined ventilation and temperature provided in the working place are highly

satisfactory, 194(55.40%) respondents have opined as satisfied, 3(0.90%)

respondents have opined as not satisfied and 40(11.40%) respondents have

opined as not at all Satisfied.

192

6.3.2. Drinking water

Drinking water is the most essential facility to be provided in industrial

orgainisations. Supply of drinking water at suitable points accessible to all

workers must be arranged. Such water points must be within twenty feet of

any washing place, urinal or latrine. Water coolers are necessary to supply ice-

cold water during summer. As per the official reports of selected units,

wholesome drinking water facilities are being provided to the worker. Our

personal observation and the discussions held with the workers revealed that

the facility available is 100 percent satisfied in the units.

Table – 6.12

Drinking Water of Employees

S.

No. Category No .of Respondents Percentage



Total 350 100.00



agreed that drinking water supplied is highly satisfactory and 113(32.30%)

respondents have agreed that drinking water supplied is satisfactory.

193

6.3.3. Latrines and Urinals

Provision of sufficient latrines and urinals is compulsory. Separate

enclosed accommodation, adequately lighted and ventilated must be given to

male and female workers. Urinals and latrines must be located at various

points in a factory so that they are easily accessible to the workers. When the

concerned workers were interviewed, they revealed that the units have

maintained with hygienic conditions. It is generally observed in study units that

the toilet facilities are adequate.

Table – 6.13

Latrines and Urinals of Employees

S.




3. Not satisfied 7 02.00

Total 350 100.00


It could be seen from Table 6.13 that 63(18%) respondents have

expressed their opinion that they are highly satisfied with the facility of latrines

and urinals, 280(80%) respondents have expressed their opinion that they are

satisfied with the facility of latrines and urinals and 7(2%) respondents have

expressed their opinion as not satisfied.

194

6.3.4. Lighting

Poor lighting will cause poor workmanship and continuous strain on the

eyesight. For maximum efficiency and production, lighting arrangement

should be at its best. Employers must ensure that lighting is not only sufficient

but that it avoids casting of routings which have a stimulation influence.

Insufficient light may lead to fatigue, headache and accidents. In the study

units, lighting arrangements are adequately made. However the lighting in the

many ways is found to be inadequate in few places. Therefore, the management

has to take necessary steps to provide adequate lighting facilities in the man

ways.

Table – 6.14

Lighting Arrangement in the Units of Employees

S.


1. Highly satisfied 17 04.90



4. Not at all satisfied 92 26.20

Total 350 100.00



expressed that the lighting facility is highly satisfactory; 177(50.60%)

respondents have expressed lighting facility as satisfied; 64(18.30%)

respondents have expressed as not satisfied and 92(26.20%) respondents have

expressed as not at all satisfied.

195

6.3.5. Spittoons

Sufficient number of spittoons must be provided in convenient places,

and they must be maintained in a clean and hygienic condition. Spitting

anywhere except in spittoons is an offence, punishable under the Act.14 It is

generally observed in the industries that the spittoons facilities are inadequate.

Table – 6.15

Perception on Spittoons in the Units

S.

No. Category

No. of






5. Not at all satisfied 42 12.00

Total 350 100.00



positive opinion about provision of spittoons; and 52(14.90%) respondents are

satisfied; 144(41.10%) respondents are not satisfied, 66(18.90%) respondents

are neither satisfied nor dissatisfied about it and 42(12.00%) respondents are

not at all satisfied about the provision of spittoons.

14 Dr. M.V. Pylee, A. Simon George, “Industrial Relation and Personal Management,” Vikas

Publishing House Pvt. Ltd., 1996, p. 91-92.

196

6.3.6. Measures against pollution by way of dust and fume

Noxious fumes and dusts in a factory, unless allowed to escape through

scientific means, will ruin the health of the workers. The work environment has

an important bearing on the efficiency and productivity of the employees. The

Factories Act, 1948 provides for various health provisions in the factories

under sections 11 to 17. As per the official report of industries, sufficient

measure against pollution by the way of dust and fume facilities is being

provided to workers in all the places. But personal observation and the

discussions held with the workers revealed that the facility is available only in

few places.

Table – 6.16

Perception on Pollution Control Measures

S.

No. Category

No. of






Total 350 100.00


It could be seen from Table 6.16 that for 34(9.70%) respondents have

been highly satisfied and 81(23.10%) respondents are satisfied about effective

measures taken to prevent its inhalation and accumulation; 177(50.60%)

respondents feel neither satisfied nor dissatisfied about effective measures

taken to prevent its inhalation and accumulation; 29(8.30%) respondents are

not satisfied.

197

6.3.7. Disposal of Waste and Effluents

Accumulation of dirt and refuse must be removed daily. Adequate and

hygienic arrangements must be made for the disposal of waste and effluents.

As per Act, sufficient disposal of waste and efficient mode of prescribed types

should be provided in the work spot. It is generally observed in the units that

the disposal of waste and effluents are adequate. But personal observation and

the discussions held with the workers revealed that the facility is adequate in

major areas and inadequate in limited areas. So the management should care of

it.

Table – 6.17

Perception on disposal of Waste and Effluents

S.

No. Category

No. of






Total 350 100.00


It could be seen from Table 6.17 that for 47(13.40%) respondents are

highly satisfied with the measures for disposal of waste and effluents;

216(61.70%) respondents feel satisfied with the measure for disposal of waste

and effluents; 17(4.90%) respondents feel neither satisfied nor dissatisfied with

measures for disposal of waste and effluents; 70(20.00%) respondents, are not

satisfied.

198

6.3.8. Maintenance of Humidity

Humidity at work place must be properly controlled. Provision must

also be made for securing and maintaining reasonable temperature in work

rooms. It is easier to work in moderate heat or cold than in extremes. Too high

or too low temperature may cause physical discomfort and impair health and

efficiency. Maintenance of humidity is the most essential facility to be

provided in industrial orgainisations. It is generally observed in the study units

that the maintenance of humidity facilities is adequate.

Table – 6.18

Maintenance of Humidity

S.




Total 350 100.00


It could be seen from Table 6.18 that 67(19.10%) respondents are

satisfied with maintenance of humidity and 283(80.90%) respondents are

satisfied with maintenance of humidity and therefore all the 350(100%)

respondents are either highly satisfied or satisfied with the maintenance of

humidity.

199

6.3.9. Cleanliness

Sanitary and orderly conditions are necessary to conserve the health and

happiness of workers. The management must ensure that the highest possible

standards of cleanliness are laid down and maintained. Clean condition is a

pre-requisite to the health of the workers. Every factory must be kept clean and

free from effluents arising from drain or other nuisance. It is observed that in

the units adequate cleanliness is maintained provided in the all places. The

discussion held with the workers and executives have revealed that, wherever

possible the management has provided clean atmosphere at work place.

Table – 6.19

Cleanliness in the Working Place

S.




Total 350 100.00

Sources: Primary Data


highly satisfied about cleanliness and 223(63.70%) respondents are satisfied

about cleanliness and therefore all the 350(100%) respondents are either highly

satisfied or satisfied with the cleanliness.

200

6.3.10. Working hours

A worker cannot work continuously for more than 8 hours in production

units. In the study units as per the present practice, a worker has to work for 8

hours. In production units, the pervasions take place round the clock in 3 shifts.

The first shift starts early in the morning at 6.00 a.m. and continues up to

2.00 p.m. Second shift starts at 2.00 p.m., and ends at 10.00 p.m.; third shift

starts at 10.00 p.m. and ends at 6.00a.m. Every worker would be rotated in the

shift on a weekly basis. It is observed that though a worker is required to work

for 8 hours in production work, he is effectively working for only 7½ hours in

every shift. The workers take about ½ hour time to change their dress, collect

the material and safety equipments like helmet and other formalities.

Table - 6.20

Perception on Working Hours

S.





Total 350 100.00



highly satisfied about working hours; 229(65.40%) respondents are satisfied

with working hours, and only 20(5.70%) respondents feel not satisfied about

working hours.

201

Table - 6.21

General Working Conditions of employees in the units

S.

No. Category N Mean

Std.

Dev. Rank F Sig.

1. Ventilation and Temperature

350 4.68 0.47 1 17.75 0.07**

2. Drinking water 350 4.16 0.42 5 9.70 0.04*

3. Latrine and Urinals 350 3.34 0.92 8 4.65 0.01*

4. Lighting 350 2.97 1.19 10 6.29 0.00*

5. Spittoons 350 3.10 1.09 9 32.71 9.66

6. Pollution 350 3.54 1.23 7 11.48 0.00*

7. Disposal of waste and effluents

350 3.62 1.23 6 82 6.05

8. Maintenance of Humidity 350 4.19 0.39 4 15.72 2.90

9. Cleanliness 350 4.36 0.48 2 2.24 0.10**

10. Working hours 350 4.23 0.54 3 12.32 6.78




level of agreement of the respondent is “5” who strongly agree or satisfied to



highest mean perception score is the most preferred one and statement with the

lowest mean perception score is the least preferred one.

202

An examination of the table depicts the following: The respondents feel

that the general working conditions given by the company in terms of

ventilation and temperature with mean score of 4.68 is ranked as 1.

Cleanliness as a mean score of 4.36 is ranked as 2. Working condition with a

mean score of 4.23 is ranked as 3. Maintenance of humanity in an organization

with a mean score of 4.19 is ranked as 4. Drinking water with a mean score of

4.16 is ranked as 5. Standard deviation has been used to know how the opinions

of respondents are fluctuating from their central tendency (i.e.) Mean. It has

been found that the deviations from the central tendency (mean) are relatively

less fluctuating. This confirms that the attitude of the respondents towards the

significance of working condition prevailing in an organization leads to

performance of respondents. This proves that the respondents are satisfied

towards the working conditions provided of the study units. Further to test with

the ANOVA by formulating a null hypothesis that is the perception about the

labour productivity and general working conditions which does not differ

among the cadre. The analysis of the table shows that the null hypothesis is

rejected to following factors like perception of pollution, provision of

cleanliness, lighting and drinking water leading to the acceptance of the

alternative hypothesis that there is significant difference in the perception about

the labour productivity and general working conditions which does not differ

among the cadre.

203

6.4. Employees Attitude towards Management

The word attitude has been defined as mental state of readiness,

organized through experience, exerting a directive or dynamic influence upon

individuals, which responds to all objects and situations with which it is

related. Reactions to situations, people or groups are based on attitudes.

Attitude is the way in which a person responds to his environment. Workers

have always an attitude of suspicion, resentment and frustration and these, in

turn, react on their behaviour and morale. A worker’s attitude and morale are

dependent on his domestic life as well as personal and economic difficulties.

Attitude determines opinions and prejudices. In other words, morale is

dependent on “attitude”. Most successful method of fastening correct attitude

is group discussions. A good system of communication in industry helps in

promoting a healthy attitude.

If the employee has continued worry on his mind, whether connected

with his workplace or with home or society, it will eventually affect his work.

He may become dissatisfied with his job or with the firm and may wish to

leave; a chronic absentee, a poor or difficult worker; a person with permanent

grievance against his superiors and fellow worker is always a problem worker.

Fair hearing and square deal on grievances, prospects of satisfactory

future, recognition of and credit for constructive suggestions offered, friendly

and helpful criticism of work and correction of errors, pay increases where

deserved, recognition and praise for unusually good work, selection of the best

employee for promotion where vacancy arises, freedom from unjust reprimand,

204

satisfactory daily working hours, a good vacation policy, all these lead to

satisfactory working conditions and employee services promoting a high

morale in industry. Good industrial relations can be maintained only by

fostering the correct attitude in the respondents and employers and by keeping

up a high morale.

Table - 6.22

Industrial Relations and Labour Productivity

S.

No. Particulars N Mean

Std.

Dev. Rank F SIG

1. Training and Development

350 29.27 2.78 4 3.12 0.045*

2. Wages and Allowances 350 42.82 4.81 2 21.10 0.08**

3. Industrial Disputes 350 6.64 1.13 8 25.10 0.53

4. General Working Conditions

350 43.98 3.56 1 11.84 0.052*

5. Industrial Relations 350 18.30 2.75 6 22.79 0.12

6. Workers Participation 350 6.01 1.09 9 119.58 12.89

7. Level of Satisfaction 350 42.71 3.11 3 14.52 5.99

8. Labour Welfare 350 27.29 1.03 5 37.89 0*

9. Environment Accidents and Safety

350 13.10 1.32 7 0.57 0.57




level of agreement of the respondent is “5” who strongly agree or satisfied and



highest mean perception score is the most preferred one and statement in the

205

lowest mean perception score is the least preferred one. An examination of the

table depicts the following: The respondents feel that the industrial relation and

labour productivity in an organization in terms of present working conditions

with mean score of 43.98is ranked as 1. Wages and allowances with mean

score of 42.82 is ranked as 2. Level of satisfaction with a mean score of 42.71

is ranked as 3. Training and development with a mean score of 29.27 is ranked

as 4. Labour welfare with a mean score of 27.29 is ranked as 5. Standard

deviation has been used to know how the opinions of respondents are

fluctuating from their central tendency i.e. Mean. It has been found that the

deviations from the central tendency (mean) are relatively less fluctuating. This

confirms that the attitude of the respondents towards the significance of

industrial relation and labour productivity improves the quality of the job. This

proves that the respondents are satisfied towards the measure taken by the

concern in terms of labour productivity.

Further to test with the ANOVA by formulating a null hypothesis that is

the perception about the industrial relation and labour productivity which does

not differ among the cadre. The analysis of the table shows that the null

hypothesis is rejected due to following factors like Training and Development,

Wages and Allowances, General Working Conditions and Labour Welfare to

the acceptance of the alternative hypothesis that there is a significant difference

in the perception about the industrial relation and labour productivity which

does not differ among the cadre.

2

06

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207

The above Table 6.23 shows the relationship between Socio- economic

data and Industrial Relation and Labour productivity. Socio- economic

variables such as age, sex and experience and other variables are training and

development, level of satisfaction, working conditions and industrial relation

etc. The relationship found is both positive and negative. Positive correlation

exhibits between age, sex and other variables like wages and allowance,

industrial disputes, general working conditions, training and development, level

of satisfaction and Labour welfare. It indicates that the greater influence of

these factors leads to productivity and Job satisfaction. Industrial relation,

environment and worker participation being negative creates the lesser job

satisfaction.

The table provides a comparison of mean for each level of work against

each other level of work. The first set of rows compares low with each of

medium and high. The second set of rows compares the mean of training and

development by the medium. The first set of rows sees that the difference

between the means when comparing low with medium is –0.165, and in the

second set of rows when comparing medium with low the mean difference is

–0.165. Since this is effectively the same, comparison is looked at the other

way.

The important aspect of this table is the significant column that provides

the exact significance of the difference between the means. Where this is less

than 0.05 next to the value in the mean difference column, indicating a

208

significant difference between the two sample being compared, at the

significant level of 0.05. Industry is a sub-system of the society. It draws its

manpower from the society. Obviously, industry has an obligation or duty

towards its respondents to look after their welfare. According to this principle,

to provide welfare facilities to the respondents is the social responsibility of

industry.

6.5. Labour Productivity

Productivity is doing the right thing and doing it correctly or in a better

way or better way of doing things. A survey on management attitudes to

labour productivity revealed that a clear understanding by managers of what

constitutes productivity was the most important factor to increasing labour

productivity. From the above it will be clear that in labour productivity, the

role of human element has to be acknowledged. Even though all the factors of

performance are adequate, the same worker may achieve different levels of

labour productivity at different times.

6.5.1. Labour Productivity Movement in India

The National Productivity Council was established in 1958. It is an

autonomous body with a maximum of 60 members with equal representation to

Government and private industrialists. In its first meeting, the National

Productivity Council decided on an Eight-Point Programme. It was decided to

make all concerned conscious of the importance of increasing labour

209

productivity, to provide for necessary training facilities, to provide experts to

Regional Productivity Councils, to exchange ideas and promote visits to

developed industrial establishments, to conduct research in productivity, to

promote visits to developed countries to learn from their experience and to

invite from abroad experts to provide necessary guidance.

6.5.2. ILO and labour productivity

International Labour Organization “understanding of the role of

productivity matters in a socio-economic development is that productivity

growth is essential for socio-economic development: labour productivity

growth is a leading factor in raising standard of living of workers: labour

productivity growth must generate additional resources for additional

employment opportunities and it is a common concern for Government,

employers and the union. The ILO conducted a series of workshops and

concluded that any strategy to achieve productivity improvement at the

enterprise level is to give close attention to labour relations together with other

technical and organizational factors. It means the necessity to create a co-

operative atmosphere in the enterprise through regular consultations and

negotiations. Other important requirements are having a consultative

framework, information sharing, system of communications both ways between

management and worker’s grievance procedure and gain-sharing system of

productivity improvement”.15

15 Chalapathi Rao, 1995, “Labour Management Relation’s and Collective Bargaining”, New Delhi,

Anmol Publications Pvt. Ltd., p. 129.

210

6.5.3. Wages and labour Productivity

An interesting development in wage determination has been labour

productivity standard. This is based on the fact that labour productivity increase

is also the result of employee satisfaction and contribution to the organization.

But wage labour productivity linkage does not appear to be so easy since many

problems crop up in respect of the concept and measurement of productivity.

Although the wage is not linked directly to the labour productivity in an

organization, changes in labour productivity have their impact on

remuneration. These criteria received consideration of wage boards, not only

because it constituted a factor in the fixation of ‘fair wage’ but also because it

was directly related to such questions as desirability of extending the system of

payment by result.

6.5.4. Linkage between Pay Structure and Labour Productivity

The economic progress of East Asian countries in the era of

globalization and liberalization has highlighted the issue of the effectiveness of

such a strategy. As a classic example, Japan has experienced a successful

restructuring of the economy by linking pay structure with labour productivity.

The country’s distinct labour practice can be explained by the post war boom in

labour productivity growth (Hashimto, 1990).” In 1960s, pressure was mounted

on the renewal of labour practices aiming to link labour productivity

improvement with the distribution of gain by encouraging co-operation

between labour productivity and management. Countries like Singapore and

211

Hong Kong pay incentive wages above the annual wages highlighting the

importance of wage labour productivity relationships. In an effort to test the

extent of relationship between pay and productivity growth, Fuess (2002)

employs the technique of Geweke (1982, 1984) and arrives at the conclusion

that efficiency wage behaviour is very limited to certain sectors rather labour

productivity gains which have followed increase in contractual pay for some

key manufacturing sectors.16 Mankoottam (2003) investigated labour

productivity linked wage scheme for some public, private and multinational

corporations and concluded that in recent years some Indian companies have

been able to use the process of labour productivity bargaining as an effective

mechanism to bring about successful changes in the workplace,17 utilising

relevant time series econometric technique. In India, the wage- labour

productivity relationship can result in circular self-generating mechanism

where increase in labour productivity leads to an increase in wages and

increase in wages motivates the workers to further increase the labour

productivity (Narayan, 2003).18 In particular it asks whether Indian

manufacturing follows efficiency wage or performance based pay system or the

both. The point of departure is that the paper examines the industry wise tests

for causality between wage and labour productivity. Later the nature of these

industries is investigated on the basis of their labour intensity.

16 Geweke, J., 1984, “Measurement of Linear Dependence and Feedback between Time Series”,

Journal of American Statistical Association, 79 p. 907-15. 17

Mamkoottam, k. 2003, “Labour and change: Essays on Globalization”, Technological Change and Labour in India, Response Books, New Delhi, p. 212.

18 Narayan, L., 2003, Productivity and wages in Indian Industries, New Delhi, Discovery, p. 110.

212

6.5.5. Wages Increase and also Labour Productivity Increase

The relationship between and labour productivity is a well recognized

issue. During the years of liberalization, India’s organized manufacturing

sector witnessed a share and persistent increase in labour productivity of 6.12

per cent per annum. Meanwhile, average real wage has also increased but not

significantly as the growth of labour productivity. On an average during the last

couple of decades, wage rate registered a growth of 3.40 per cent per annum.

Now the question is whether real wage rate and labour productivity represent

an important nexus in the organized manufacturing industries in India. The

technological progress in the form of new products is inevitably linked with an

increase in labour productivity. Producers are concerned with the pressure of

external competition which required them to increase labour productivity and

efficiency to keep speedy output growth. They may provide extra benefits to

the workers in order to raise their productivity. In other words, employers want

to pay their workers more in order to get more out of them. This shifts the

employer to adopt a more capital intensive technology with matching

manpower. The Technical and better qualified hands have progressively

replaced the unskilled workforce. The demand for skilled workers has

continued to rise and has given boost to the wages in this category. Although

rising labour productivity is a source of wage increase, the causality also runs

in the opposite direction.

213

The following table reveals the Labour productivity of the two select

units namely SDCL Ltd and SPIC Ltd.

Table – 6.24

Labour productivity-measurement based on number of employees (SDCL)

S.

No. Year No. of Employees

Output

(Rs. in Crores)

Productivity

(Rs. in Crores)

1. 2005-06 2950 3700.5 1.2544

2. 2006-07 2950 4059.11 1.3759

3. 2007-08 2950 4386.58 1.4869

4. 2008-09 2950 4656.35 1.5784

5. 2009-10 2950 5286.39 1.7919

Source: Secondary data, Company Annual Report.

Table – 6.25

Labour productivity-measurement based on number of employees (SPIC)

S.

No. Year No. of Employees

Output

(Rs. in. Crores)

Productivity

(Rs. in Crores)

1 2005-06 1250 1487.83 1.190

2 2006-07 1250 1900.07 1.520

3 2007-08 1250 2181.61 1.745

4 2008-09 750 1476.73 1.969

5 2009-10 227 477.84 2.105

Source: Secondary data, Company Annual Report.

Labour Productivity = Output in Rupees

No. of Employees

No of employees = As per the record

Output (Sales in Rs.) = Bulk drugs and Intermediates + Sale of

By product + Trade Sales

214

The Labour productivity for workers has been calculated for the year

2005-06 to 2009-10 for the both the units that is SDCL and SPIC. With regard

to SDCL labour productivity in money value has been increased Rs.1.2544

crores to Rs.1.7919 crores. In the same way in SPIC the labour productivity is

found increase from Rs.1.190 crores to Rs.2.105 crores.

SDCL, the welfare facility provided by the industry is sufficient and

hence the labour productivity is higher every year. In our practical observation

in both selected units they provide a better welfare scheme which in turn also

increases high productivity. The forgoing tables reveal that year by year labour

productivity of both units is on the increasing trend. Hence, it is assumed that

the welfare facility, job satisfaction and safety measures has an impact on high

productivity. In this chapter, we have discussed about medical facilities,

provisions of company quarters, nearness of residence, staying of employees,

mode of conveyance, medical benefit, periodical medical checkup, canteen

facilities, time keeping system, recreational facilities, labour productivity and

the attitude of employees towards the management.

In both the selected units the industrial relations and labour productivity

are acceptable. While we compare the units, SDCL is better than SPIC. We

discussed three dimensions such as job satisfaction, safety measure and

between labour welfare. Alone good for satisfaction stands, first safety

measure ranks second and labour welfare stands the third.

In the ensuing chapter, a summary of findings, suggestions and

conclusion are provided.

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