Contents

Chapter No. Topics

CHAPTER -1 INRODUCTION

Executive summary
1.1 Employee Welfare

1.2 Scope of the Study

1.3 Objective of the Study

1.4 Limitation of Study

Chapter -2 LITERATURE REVIEW

2.1 Review of Litreature

Chapter -3 RESEARCH METHODOLOGY

3.1

3.2

3.3
3.4

3.4.1

3.4.2

3.4.3

3.4.4

3.4.5
Chapter 1
Introduction:-

“Welfare is comfortable living and working conditions”. Employee welfare means the efforts to
make life worth living for workman.

“Welfare is comfortable living and working conditions”. People are the most important asset
of an organization, and the accounting profession has to assess and record the value and cost of
people of an organization. Once this is accepted, the need for measuring the value for recording
it in the books of accounts arises. The value of human assets can be increased substantially by
making investment in their training and welfare activities in the same way as the value of repairs/
overhauling, etc.

While the cost on training, development, etc., can be recorded separately and to be within the
eventual, the expenditure on welfare activities can be added to the ‘investment’ and the returns
judged. Unlike other assets which have depreciation value as year’s passes by, value of human
assets appreciates with passing years. The value can depreciate by aging process which is
generally hastened up by worries, unhealthy conditions, etc. once this process is slowed down, or
at least if the employee is made to feel ‘young in spirits’ the value of this asset appreciates
considerably.

Any investment constitutes the assets of a company and therefore, any investment for welfare of
labor would constitute an extra investment in an asset. Industrial progress depends on a satisfied
labor force and the importance of labor welfare measures was stressed as early as1931, when the
Royal Commission on labor stated ‘the benefits which go under this nomenclature, are of great
importance to the worker and which he is unable to secure by himself. The schemes of labor
welfare may be regarded as a “wise investment” which should and usually does bring a
profitable return in the form of greater efficiency.

The basic features of employee welfare measures are as follows:

 1. Employee welfare includes various facilities, services and amenities provided to workers
for improving their health, efficiency, economic betterment and social status.

2. Welfare measures are in addition to regular wages and other economic benefits available
to workers due to legal provisions and collective bargaining

3. Employee welfare schemes are flexible and ever-changing. New welfare measures are
added to the existing ones from time to time.

4. Welfare measures may be introduced by the employers, government, employees or by

any social or charitable agency.

5. The purpose of employee welfare is to bring about the development of the whole
personality of the workers to make a better workforce.

The very logic behind providing welfare schemes is to create efficient, healthy, loyal and
satisfied labor force for the organization. The purpose of providing such facilities is to make their
work life better and also to raise their standard of living. The important benefits of welfare
measures can be summarized as follows:

 They provide better physical and mental health to workers and thus promote a healthy
work environment

 Facilities like housing schemes, medical benefits, and education and recreation facilities
for workers’ families help in raising their standards of living. This makes workers to pay
more attention towards work and thus increases their productivity.

 Employers get stable labor force by providing welfare facilities. Workers take active
interest in their jobs and work with a feeling of involvement and participation.

 Employee welfare measures increase the productivity of organization and promote

healthy industrial relations thereby maintaining industrial peace.

 The social evils prevalent among the labors such as substance abuse, etc are reduced to a
greater extent by the welfare policies.
The concept of ‘labor welfare’ is flexible and elastic and differs widely with times, regions,
industry, country, social values and customs, degree of industrialization, the general socio-
economic development of the people and the political ideologies prevailing at particular
moments. It is also according to the age group, socio-cultural background, marital status,
economic status and educational level of the workers in various industries.

Need of the Study:-

 To know about the Constitutional provisions in MCL.

 To find whether Employees welfare helps in providing good industrial relations.

 To know about the employees satisfaction towards welfare measures.

 To find out the facilities entitled by MCL.

Importance of the Study

 It helps in improving recruitment.

 Employers get stable labor force by providing welfare facilities. Employees take active
interest in their jobs and work with a feeling of involvement and participation.

 It improves moral & loyalty of employees.

 It reduces labor turnover & absenteeism.

 It helps in increasing productivity & efficiency by improving physical & mental health.

 It helps in improving industrial relation & industrial peace.

SCOPE OF THE STUDY

 The present study has been undertaken to study find out effectiveness of employee
welfare measures in MCL.
  To find out the practical difficulties involved in welfare measures that can be evaluated
through this study.
 The study can be used to bring out the solution for the problem faced by the employees
availing the welfare measures.
 Through the study, company would be able to know the satisfaction level of employee on
welfare measures.

OBJECTIVES OF THE STUDY

 PRIMARY OBJECTIVE:

To study the employees welfare measures in Mahanadi Coalfields Limited(MCL).

 SECONDARY OBJECTIVES:

 To identify the various welfare measures provided to the employees.

 To know their satisfaction towards the welfare measures

 To understand how welfare measures improve the motivation of the

Employees.

 To find out employees preference regarding welfare measures which they like to have in

future.

LIMIATION OF THE STUDY-

1. First of all, the short of 6 weeks time is not sufficient enough to conduct a

study of employee welfare a vast area.

2. Secondly, limitations with regards to availability & accessibility of various

sources of the secondary data.

3. Thirdly, instead of consumer or complete enumeration, due sampling was

adopted for data collection purposes with adequate care for the accuracy of

the data.

4. Insufficient support from employees of the company because of their busy

schedule. Some of the workers denied having a conversation with due to

their work.

5. It is very much uncomfortable and stranger on the part of trainees to interact

with the workers initially because they are unknown to us by nature; it took

few days to get acquainted with them.

6. To overcome above stated limitations, due care was taken in sampling and

presenting of the questionnaire used & editing the primary data, checking

their legibility, & completeness & consistency.

Chapter 2
LITREATURE REVIWE-

The term welfare suggests the state of well being and implies

wholesomeness of the human being. It is a desirable state of existence

involving the mental, physical, moral and emotional factor of a person.

Adequate level of earnings, safe and human conditions of work and access to

some minimum social security benefits are the major qualitative dimensions

employment which enhance quality of life of workers and their productivity.

Institutional mechanisms exist for ensuring these to workers in the organized

sector of the economy. These are being strengthened or expanded to the

extent possible. However, workers in the unorganized sector, who constitute

90 per cent of the total workforce, by and large, do not have access to such

benefits. Steps need to be taken on a larger scale than before to improve the

quality of working life of the unorganized workers, including women

workers. Classical economics and all microeconomics labour is one of four

factors of production, the others being land, capital and enterprise. It is

measure of the work done by human beings. There is a macroeconomics

system theory which have created a concept called human capital (referring

to the skills that workers possess, not necessarily their actual work),
 although there are also counterpoising macroeconomic system theories that

think human capital is a contradiction in terms. Labour Review of Literature

2.1 REVIEW OF LITERATURE -

In the view of [Link], in his Human Resurces: A Relook to the

workplace, states that HR policies are being made flexible. From leaves to

compensations, perks to office facilities, many companies are willing to

customize polices to suit different employee segments. The older employees

want social security benefits, younger employees want cash in hand because

they can not think of sticking to a company for many years and retire from

the same company. Therefore „one jacket fits all will not be right to

motivate the talents and retain them. Conventions and Recommendation of

ILO (1949) sets forth a fundamental principle at its 26th conference held in

Philadelphia recommended some of the measures in the area of welfare

measures which includes adequate protection for life and health of workers

in all occupations, provision for child welfare and maternity protection,

provision of adequate nutrition, housing and facilities for recreation and

culture, the assurance of equality of educational and vocational opportunity

etc. Report of National Commission on Labour (2002), Government of

India, made recommendations in the area of labour welfare measures which

includes social security, extending the application of the Provident Fund,

gratuity and unemployment insurance etc. Shobha Mishra Manju Bhagat, in

their “Principles for Successful Implementation of Labour Welfare

Activities”, sated that labour absenteeism in Indian industries can be reduced

to a great extent by providing good housing, health and family care, canteen,

educational and training facilities and provision of welfare activities. The

principle for successful implementation of labour welfare activities is

nothing but an extension of democratic values in an industrialized society.

[Link], in his “Labour Legislation in the Making”, opines that professional

bodies like National Institute of Personnel Management should constitute a

standing committee to monitor the proceeding in the Parliament regarding

the labour welfare measures. In this context, a study conducted by

(Saiyaddin) for examined the purpose and cost of non-statutory welfare

activities for the organizations. Five public and six private sector

organizations were selected for the study. The study brought out an

important conclusion that the most predominant theme in the minds of

organizations when they think of the voluntary welfare measures was not

only the output and efficiency but also increasing. In respect of cost, the

study revealed, that the public sector organizations spend more on welfare

activities, as compared to private sector. While public sector spends more on

transportation and recreation, private sector was found to be spending more

on housing according to the study. The research work of aimed at

sociological analysis of the labour welfare problems of steel industry. The

analysis was based on the first hand data collected from the steel factories of

Eastern Uttar Pradesh. The study concluded that the conditions of work in

steel factories of eastern region of Uttar Pradesh were not very satisfactory

particularly in the respect of safety measures, cleanliness, sanitation, latrine

facilities, drinking water, rest rooms, etc. It also pointed out that the

provisions for leaves and holidays, lighting, housing, medical, education, are

far from satisfactory. The study of (Zacharaiah) based on a sample survey of

manufacturing undertakings in Bombay, covered welfare services and

working conditions while surveying the factors affecting industrial relations.

It was observed that better working conditions and adequate provision of

welfare services would contribute to harmonious industrial relations. Also

study conducted by (Koshan) pointed out that inspite of statutory provisions

and enforcing agencies in India, the welfare facilities were absent and the

cement industry was the only one where provisions were adequately

enforced. The study suggested that need for overhauling and tightening the

machinery of inspection. Appointment of welfare inspectors for different

industries, distinguishing the duties of factory inspectors from those of

welfare inspectors to submit annual and quarterly reports and empowering

the welfare inspectors to fine in case of default, were some of the steps

suggested in this study. In addition to the above discussion, others also

defined on about welfare measure of employees like; Welfare includes such

activities as private advice on any type of personal problem; assistance with

problems of heath or sickness; special responsibilities for young people and

elderly and retired staff and the provision of sports and social facilities. An

organization is concerned with these matters since the reputation for their

showing concern helps to improve the local image of the firm as a good

employer and thus assists in recruitment (Armstrong 1992 p.775). Welfare

may not directly increase productivity but may add to general feelings of

satisfaction with the firm and cut down labour turnover. Also, According to

Beach (1980) personal services should be provided when a welfare need is

established and a welfare need exists where it is clear that help is required

and that it cannot be given more effectively from another source, and that

the individual is likely to benefit from the services that can be offered. In an

organizational setting, an essential element in personnel services is

confidential. There is no point in offering help or advice to people if they

think that their personal problems are going to be revealed to others,

possibly to the detriment of their future careers. Armstrong (1992) says that
 this is the argument for having specialized welfare officers in organizations

large enough to be able to afford them.

Chapter - 3
RESEARCH METHODOLOGY

3.1 MEANING OF RESEARCH -

Research in common parlance refers to a search for knowledge. Once can

also define research as a scientific and systematic search for pertinent

information on a specific topic. In fact, research is an art of scientific

investigation. The Advanced Learner’s Dictionary of Current English lays

down the meaning of research as “a careful investigation or inquiry specially

through search for new facts in any branch of knowledge.”1 Redman and

Mory define research as a “systematized effort to gain new knowledge.”2

Some people consider research as a movement, a movement from the known

to the unknown.

3.2 Objective of Research Methodology

The purpose of research is to discover answers to questions through the

application of scientific procedures. The main aim of research is to find out

the truth which is hidden and which has not been discovered as yet. Though
 each research study has its own specific purpose, we may think of research

objectives as falling into a number of following broad groupings:

1. To gain familiarity with a phenomenon or to achieve new insights into it

(studies with this object in view are termed as exploratory or formulative

research studies);

2. To portray accurately the characteristics of a particular individual,

situation or a group (studies with this object in view are known as

descriptive research studies);

3. To determine the frequency with which something occurs or with which it

is associated with something else (studies with this object in view are known as

diagnostic research studies);

4. To test a hypothesis of a causal relationship between variables (such studies are

known as hypothesis-testing research studies).

3.3 MOTIVATION-

What makes people to undertake research? This is a question of fundamental

importance. The possible motives for doing research may be either one or more of

the following:

1. Desire to get a research degree along with its consequential benefits;

2. Desire to face the challenge in solving the unsolved problems, i.e., concern over

practical problems initiates research;

3. Desire to get intellectual joy of doing some creative work;

4. Desire to be of service to society;

5. Desire to get respectability.

However, this is not an exhaustive list of factors motivating people to undertake

research studies. Many more factors such as directives of government, employment

conditions, curiosity about new things, desire to understand causal relationships,

social thinking and awakening, and the like may as well motivate (or at times

compel) people to perform research operations.

3.4 SAMPLING

A process used in statistical analysis in which a predetermined number of

observations will be taken from a larger population. The methodology used to

sample from a larger population will depend on the type of analysis being

performed, but will include simple random sampling, systematic sampling and

observational sampling. The sample should be a representation of the general

population.

3.4.1 SAMPLE SIZE

Sample size is the number of observations used for calculating estimates of a given

population. For example, if we interviewed 30 random students at a given high

school to see if they liked a certain music artist, 30 students would be our sample

size.
3.4.2 PURPOSE

Sample sizes reduce expenses and time by allowing researchers to estimate

information about a whole population without having to survey each member of

the population.

3.4.3 SAMPLE SIZE CALCULATION

There are several methods used to calculate the sample size depending on the type

of data or study design. The combined term “Measures of Central Tendency”

means the methods of finding out the central value or average value of a statistical

series, or any series of quantitative information. The data collected through

questionnaire has been coded and cleaning the data for further analysis and use

simple statistics to represent tabulated and graphical form like bar, pie and others.

In addition to the above i have also used the factor analysis for finding and

suggestion of the study.

3.4.4 SAMPLE FRAME

A set of information used to identify a sample population for statistical

treatment. A sampling frame includes a numerical identifier for each

individual, plus other identifying information about characteristics of the

individuals, to aid in analysis and allow for division into further frames for

more in-depth analysis.

3.4.5 SAMPLING DESIGN

Sampling is a method of selecting experimental units from a population so

that we can make decision about the population. Sampling design is a

design, or a working plan, that specifies the population frame, sample size,

sample selection, and estimation method in detail. Objective of the sampling

design is to know the characteristic of the population. A sample design is

made up of two elements.

 Sampling method. Sampling method refers to the rules and procedures by

which some elements of the population are included in the sample. Some

common sampling methods are simple random sampling , stratified

sampling , and cluster sampling .

 Estimator. The estimation process for calculating sample statistics is

called the estimator. Different sampling methods may use different

estimators. For example, the formula for computing a mean score with a

simple random sample is different from the formula for computing a mean

score with a stratified sample. Similarly, the formula for the standard error

may vary from one sampling method to the next.

3.5 DATA COLLECTION

Data collection is the process of gathering and measuring information on

variables of interest, in an established systematic fashion that enables one to

answer stated research questions, test hypotheses, and evaluate outcomes.

The data collection component of research is common to all fields of study

including physical and social sciences, humanities, business, etc. While

methods vary by discipline, the emphasis on ensuring accurate and honest

collection remains the same. The goal for all data collection is to capture

quality evidence that then translates to rich data analysis and allows the

building of a convincing and credible answer to questions that have been

posed.

3.5.1 COLLECTION OF PRIMARY DATA

We collect primary data during the course of doing experiments in an

experimental research but in case we do research of the descriptive type and

perform surveys, whether sample surveys or census surveys, then we can

obtain primary data either through observation or through direct

communication with respondents in one form or another or through personal

interviews. In other words, means that there are several methods of

collecting primary data, particularly in surveys and descriptive researches.

Important ones are:

(i) observation method,

(ii) interview method,

(iii) through questionnaires,

(iv) through schedules, and

(v) other methods which include :

(a) warranty cards;

(b) distributor audits;

(c) pantry audits;

(d) consumer panels;

(e) using mechanical devices;

(f) through projective techniques;

(g) depth interviews, and

(h) content analysis.

Questionnaire Questionnaires may be used to collect regular or infrequent

routine data, and data for specialised studies. While the information in this

section applies to questionnaires for all these uses, examples will concern

only routine data, whether regular or infrequent. Some of the data often

obtained through questionnaires include demographic characteristics, fishing

practices, opinions of stakeholders on fisheries issues or management,

general information on fishers and household food budgets. A questionnaire

requires respondents to fill out the form themselves, and so requires a high

level of literacy. Where multiple languages are common, questionnaires

should be prepared using the major languages of the target group. Special

care needs to be taken in these cases to ensure accurate translations.

Interview In interviews information is obtained through inquiry and recorded

by enumerators. Structured interviews are performed by using survey forms,

whereas open interviews are notes taken while talking with respondents. The

notes are subsequently structured (interpreted) for further analysis. Open-

ended interviews, which need to be interpreted and analysed even during the

interview, have to be carried out by well-trained observers and/or

enumerators. As in preparing a questionnaire, it is important to pilot test

forms designed for the interviews. The best attempt to clarify and focus by

the designer cannot anticipate all possible respondent interpretations. A

small-scale test prior to actual use for data collection will assure better data

and avoid wasting time and money. Open-ended interviews Open-ended

interviews cover a variety of data-gathering activities, including a number of

social science research methods. Focus groups are small (5-15 individuals)

and composed of representative members of a group whose beliefs, practises

or opinions are sought. By asking initial questions and structuring the

 subsequent discussion, the facilitator/interviewer can obtain, for example,

information on common gear use practices, responses to management

regulations or opinions about fishing.

3.5.2 COLLECTION OF SECONDARY DATA

Secondary data means data that are already available i.e., they refer to the

data which have already been collected and analysed by someone else.

• When the researcher utilises secondary data, then he has to look into

various sources from where he can obtain them.

• In this case he is certainly not confronted with the problems that are

usually associated with the collection of original data.

• Secondary data may either be published data or unpublished data.

• Usually published data are available in: a. various publications of the

central, state are local governments; b. books, magazines and newspapers; c.

reports and publications of various associations connected with business and

industry, banks, stock exchanges, etc. The reports prepared by research

scholars, universities, economists, etc. in different fields; and e. public

records and statistics, historical documents, and other sources of published

information. The sources of unpublished data are many; they may be found

in diaries, letters, unpublished biographies and autobiographies and also may

be available with scholars and research workers, trade associations, labour

bureaus and other public/ private individuals and organisations. By way of

caution, the researcher, before using secondary data, must see that they

possess following characteristics:

1. Reliability of data: The reliability can be tested by finding out such things

about the said data:

(a) Who collected the data?

(b) What were the sources of data?

(c) Were they collected by using proper methods

(d) At what time were they collected?

(e) Was there any bias of the compiler?

(f) What level of accuracy was desired? Was it achieved ?

[Link] of data: The data that are suitable for one enquiry may not

necessarily be found suitable in another enquiry. Hence, if the available data

are found to be unsuitable, they should not be used by the researcher. In this

context, the researcher must very carefully scrutinise the definition of

various terms and units of collection used at the time of collecting the data

from the primary source originally. Similarly, the object, scope and nature of

the original enquiry must also be studied. If the researcher finds differences

in these, the data will remain unsuitable for the present enquiry and should

not be used.
3. Adequacy of data: If the level of accuracy achieved in data is found

inadequate for the purpose of the present enquiry, they will be considered as

inadequate and should not be used by the researcher. The data will also be

considered inadequate, if they are related to an area which may be either

narrower or wider than the area of the present enquiry.