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CHAPTER 1: Introduction and Meaning of Employee Welfare

Employee welfare is a comprehensive term including various services, benefits and facilities offered to employees & by the employers. Through such generous fringe benefits the employer makes life worth living for employees. Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. The welfare measures need not be in monetary terms only but in any kind/forms. Employee welfare includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and their families. Employee welfare entails all those activities of employer which are directed towards providing the employees with certain facilities and services in addition to wages or salaries. 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.

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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.

For example at Bajaj Electricals there are many welfare activities like long service and retirement awards on 14th July every year for employees, to be categorized into 15 years long service and 25 long service. There is also welfare trust which formed by Bajaj Electricals for providing loan to employees for housing needs and also for the reimbursement of medical expenses. They have created social responsibility of business fund to provide scholarship to employees and children for higher education and also there is emergency assistance in the form of financial assistance to the family in case of death of any employee in harness. Employee Welfare is an important facet of industrial relations, the extra dimension, giving satisfaction to the worker in a way which evens a good wage cannot. With the growth of industrialization and mechanization, it has acquired added importance. The workers in industry cannot cope with the pace of modern life with minimum sustenance amenities. He needs an added stimulus to keep body and soul together. Employers have also realized the importance of their role in providing these extra amenities. And yet, they are not always able to fulfill workers demands however reasonable they might be. They are primarily concerned with the viability of the enterprise. Employee welfare, though it has been proved to contribute

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to efficiency in production, is expensive. Each employer depending on his priorities gives varying degrees of importance to labour welfare. It is because the government is not sure that all employers are progressive minded and will provide basic welfare measures that it introduces statutory legislation from time to time to bring about some measures of uniformity in the basic amenities available to industrial workers. After employees have been hired, trained and remunerated, they need to be retained and maintained to serve the organization better. Welfare facilities are designed to take care of the wellbeing of the employees, they do not generally result in any monetary benefit to the employees. No rare these facilities provided by employers alone. Governmental and nongovernmental agencies and trade unions too, contribute towards employee welfare. Employee welfare is a comprehensive term including various services, benefits and facilities offered to employees by the employer. Through such generous fringe benefits the employer makes the life worth living for employees. The welfare amenities are extended in addition to normal wages and other economic rewards available to employees as per the legal provisions. Welfare measures may also be provided by the government, trade unions and nongovernment agencies in addition to the employer. The basic purpose of employee welfare is to enrich the life of the employees and keep them happy and contended. Employee welfare today has become a very controversial topic. It covers a very broad field. To being with, let us briefly discuss the main concepts or, rather, the general, meaning full ideas which have been evolved about it so far.

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The term welfare suggest many ideas, meanings and connotations, such as the state of wellbelling, health, happiness, prosperity and the development of human resources. The concept of welfare can be approached from various angles. Welfare has been described as a total concept. It is a desirable state of existence involving for certain components of welfare, such a health, food, clothing, and housing, medical assistance, insurance, education, recreation, job security, and so on. The word employee means any productivity activity. In a broader sense, therefore, the phrase employee welfare means the adoption of measures to promote the physical, social, psychological and general well-being of the working population. Welfare work in any industry aims, or should aim, at improving the working and living conditions of workers and their families. The concept of employee welfare originates in the desire for a humanitarian approach to the sufferings of the working class. Later, it becomes a utilitarian philosophy which worked as a motivating force for labor and for those who were interested in it. Employee welfare has been defined in various ways, though unfortunately no single definition has found universal acceptance. Efforts to make life worth living for worker The oxford dictionary

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CHAPTER 2: Concept of Employee welfare

The concept of labour welfare is flexible and elastic and differs widely with time, region, industry, social values and customs, degree of industrialization, the general socioeconomic development of the people and the political ideologies prevailing at a particular time . It is also molded according to the age-groups, socio-cultural background, marital and economic status and educational level of the workers in various industries In its broad connotation, the term welfare refers to a state of living of an individual or group in a desirable relationship with total environment ecological, economic, and social. Conceptually as well as operationally, labour welfare is a part of social welfare which, in turn, is closely linked to the concept and the role of the State which is applicable in the plant. The concept of social welfare, in its narrow contours, has been equated with economic welfare. As these goals are not always be realized by individuals through their efforts alone, the government came into the picture and gradually began to take over the responsibility for the free and full development of human personality of its population. Labour welfare is an extension of the term Welfare and its application to labour. During the industrialization process, the stress on labour productivity increased; and brought about changes in the thinking on labour welfare. In its broad connotation, the term welfare refers to a state of living of an individual or group in desirable relationship with total environment ecological, economic, and social. Concept dually as well as operationally, labour welfare is a part of social welfare which, in turn, is closely linked to the concept and the role of the State. The concept of social welfare, in its narrow contours, has been equated with economic welfare. Pigou defined it as that part of general welfare which can be brought directly or indirectly into relations with the measuring rod of money (Pigou, 1962). According to Willensky and Labeaux, social welfare alludes to those formally organized and socially sponsored institutions, agencies and programmes

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which function to maintain or improve the economic conditions, health or interpersonal competence of some parts or all of a population (Willensky and Labeaux, 1918). As these goals may not always be realized by individuals through their efforts alone, the government came into the picture and gradually began to take over the responsibility for the free and full development of human personality of its population. Labour welfare is an extension of the term Welfare and its application to labour. During the industrialization process, the stress on labour productivity increased; and brought about changes in the thinking on labour welfare. An early study under the UN observed as follows in our opinion most underdeveloped countries are in the situation that investment in people is likely to prove as productive, in the purely material sense, as any investment in material resources and in many cases, investment in people would lead to a greater increase of the flow of goods and services than would follow upon any comparable investment in material capital. The theory that welfare expenditure, especially expenditure on health and education, is productive investment has led to the view that workers could work more productively if they were given a fair deal both at the work place and in the community. The concept of labour welfare has received inspiration from the concepts of democracy and welfare state. Democracy does not simply denote a form of government; it is rather a way of life based on certain values such as equal rights and privileges for all. The operation of welfare services, in actual practice, brings to bear on it different reflections representing the broad cultural and social conditions. In short, labour welfare is the voluntary efforts of the employers to establish, within the existing industrial system, working and sometimes living and cultural conditions of the employees beyond what is required by law, the custom of the industry and the conditions of the market The constituents of labour welfare included working hours, working conditions, safety, industrial health insurance, workmens compensation, provident funds, gratuity, pensions, protection against indebtedness, industrial housing, restrooms, canteens, crches, wash

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places, toilet facilities, lunches, cinemas, theatres, music, reading rooms, holiday rooms, workers education, co-operative stores, excursions, playgrounds, and scholarships and other help for education of employees children.

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CHAPTER 3: Significance of Employee Welfare

Employee welfare is in the interest of the employee, the employer and the society as a whole. These measures enable the employee and his family to lead a good life. Welfare facilities like housing, medical and childrens education, recreation, etc. help to improve the family life of employees. Thus, employee welfare provides the following benefits/objectives: It helps to improve recruitment. As the job becomes more attractive, more efficient employees can be recruited. Employee welfare improves the morale and loyalty of workers by making them happy and satisfied. It reduces labor turnover and absenteeism thereby building a stable workforce. It helps to increase employee productivity or efficiency by improving their physical and mental health. Improvement in material, intellectual and cultural conditions of life protects workers from social evils like drinking, gambling, prostitution, etc. Welfare measures helps to improve the goodwill and public image of the enterprise. Voluntary efforts for the welfare of workers of workers reduce the threat of further Government intervention. To attract, motivate and retain good employees, organization need to define what employees want from employment relationship. Employee needs is to consider Total Reward which is everything an employee perceives resulting from working for the company. Benefits are core elements of Total Reward system. Benefits include health, welfare plans and retirement plans provided by the organizations to protect and ensure employees financial security. Employee

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benefits have evolved from basic "Fringe Benefits "to a comprehensive range of benefits that strike a balance between employees' personal and professional lives. Many studies contend that benefits are the most useful mean to attract, motivate and retain employees. Companies offering attractive benefits packages have more buying power in the job market. The available literature on employee welfare benefits suggest that people do not work just for a wage or salary but expect more from employment. Companies offering more voluntary benefits have better chance of attracting qualified people and retaining them. On the other hand retention is key challenge in firms lacking such welfare benefits and where work tends to get routine and there is no opportunity for personal growth and development. The result would be high rate of employee turnover. Research reveals various reasons why employees want to leave an organization. The most common one includes monotonous work schedule, stress at workplace, lack of career growth, training and development opportunities and nepotism etc.

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CHAPTER 4: History
The world of employee benefits is different from before what is not changed is that employees need benefits and employers need employees. Plans that now classified as employee benefits have had a long history in the US. It can be traced back to 1794 when the first recorded profit sharing plan was introduced by Albert Gallatin in his glassworks in Pennsylvania. The first private pension plan was started in the US by the American express company in 1875, and the first group annuity contract was issued in 1921 by the metropolitan life insurance company. In 1910 the Montgomery Ward Company conceived of group life and accident insurance for its employees, and the Company adopted the first group accident and sickness policy underwritten by the London Guarantee and Accident Company. The first group life insurance policy was issued to the Pantasote Leather Company by the Equitable Life Assurance Society of the United States in 1911. (Marsh & kleiner, 2004) According to Jerrell (1997) the Social Security Act of 1935 provided the framework for much of the American social insurance and was a vital event in the development of employee benefits. In 1939 the advisory council on social security recommended the expansion of the Act by extending benefits to employees' dependents and survivors. Recommendations were enacted by congress and established 1940 as year benefits first to be paid. Another employee benefit of unemployment insurance was introduced during 1900-1950 although its forms and functions changed over the period. Today the business, social and economic and climates are much different from that in 1950. (Jerrell.1997). Employees do not work just for a wage or salary and expect something more from employers so employee welfare programs and benefits are vital for the development of corporate industrials relations

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According to Marsh & Kleiner (2004) Employee welfare benefits represent any form of compensation provided: Other than direct wages 2) Paid for in whole or in part by employer, even if provided by a third party (e.g. by the government an insurance company or a health maintenance organization). Such Benefits vary from organization to organization and serve different social and economic needs. They fall into two categories: several benefits are required by law; the first category is employer's contribution to social security, Medicare, unemployment insurance and workers compensation insurance. The other kind is known as voluntary or discretionary benefits and serves different goals. Such benefits include employer's contribution for health coverage, flexitime and child care etc. (marsh & kleiner, 2004) "Employee benefits consist of arrangements made by the employers for their employees which enhance the latter's well being. They are provided in addition to pay and form important part of the total reward package". (Armstrong & Stephens, p.225, 2005) According to Ivancevich (2007) indirect financial compensation is called benefits. It can be defined as employer reward other than wages or salaries arising from legally required social insurance payments, retirement plans, payments for time not worked, extra cash payments other than bonuses based on performance and cost of services like subsidized cafeterias', clothing allowances and so on. Traditional employee welfare benefits such as healthcare programs, insurance and retirement programs are generally provided to all workers within an organization, irrespective of their performance in order to meet their security and safety needs. Employee services comprising childcare services and financial assistance programmes are innovative benefits provided to employee in order to help them manage their work and family life. (Lee et al, 2008)

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Lee (2008) found that Organizations that had onsite child care facilities had more motivated and satisfied employee and also high employee retention level. However firms that were unable to provide such services had high absenteeism problem and intention to quit, low employees performance and more employees with health problems because of care giving stress. Some of the firms provide such benefits because employees who bring personal life problems to work tend to have poor work quality and low productivity because of increase absenteeism. Many firms do not provide such benefits because of high costs. But those that do provide enhance its attractiveness as an employer because when workers perceive that their firm's practices are positive their level of identification with the firm increases. (Lee et al, 2008) "People do not work for just a wage or salary. There is usually a whole compensation package and this should be assembled primarily with motivational intentions."(forsyth.p 81, 2006).The job of the package is has two overriding intentions; first to attract right people to the job and allow successful recruitment and selection to take place. Attracting right people is a competitive process. Certainly good people will be attracted only as a result of weighing up the pros and cons of what you offer alongside other prospective employers. The second intention of the package is to retain people in the job and encourage them to remain with the company. (Forsyth, 2006) Armstrong (1999) there are arguments against the provision of welfare services; welfare is provided by the state services why industrial, commercial or public organizations should provide welfare services. Employees private and out of work activities should be not the concern of employers. The argument for employee welfare services was put by martin (1967) "Staff spends at least half their waking time at work or in getting to it or leaving it. They know they contribute to the organization when they are reasonably free from worry, and they feel, perhaps inarticulately, that when they are in trouble they are due to get something back

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from the organization. People are entitled to be treated as full human beings with personal needs, hopes and anxieties; they are employed as people; they bring themselves to work, not just their hands, and they cannot readily leave their troubles at home."(Armstrong p783785.1999).Welfare may not directly increase productivity but it may increase commitment and help in retention of key employees.

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CHAPTER 5: Features of welfare measures

Giri (2008) Employees' welfare includes services, facilities and amenities provided to employees for improving their efficiency, health, economic condition and social status. These welfare benefits are provided in addition to wages and other benefits available to employees due to legal provisions. Welfare measures are flexible and may be introduced by the employers, governments and employees. The main purpose of employee welfare is to develop the whole personality of the employees to make a better work life. The logic behind welfare benefits is to prepare efficient, healthy, loyal and satisfied work force for the organization. The purpose of such services and facilities is to improve employees' standard of living and make their work life better. The important benefits of welfare measures are to provide a good physical and mental health to employees to create a better working life. Employer gets a strong work force by providing welfare benefits and employees take active part in their jobs and work with a feeling of participation. Employee welfare benefits increase organizations productivity and promote a healthy work environment. Facilities like medical benefits, education for employees families help in improving their standard of living and this makes employees to concentrate more on their jobs. (Giri.2008) 1.) Employee welfare schemes Employee welfare programs serve different objectives. The most important objective is to provide better and healthy life to workers. Secondly welfare benefits are provided in order to make employee happy and satisfied. Other purpose of benefits is to relieve employees from exhaustion and improve cultural and living conditions of the employees. As an employer if you employee anyone (irrespective of time period short or long) you must as reasonably provide adequate welfare facilities for employees while they are at work. Welfare facilities are those necessary for the wellbeing of your employees. Organizations provide welfare

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benefits to their employees to motive them. Employee welfare schemes can be divided into two categories: statutory and non-statutory. Statutory schemes are required by law to be provided to the employees while non-statutory schemes vary from organization to organization. (Giri.2008) 2.) Statutory welfare schemes: Statutory schemes are those required by law and organizations must be provided in order to meet statutory obligations. Employers are required to made provisions for Health and safety, first Aid appliances, drinking water, latrines, canteens, lighting, washing places and changing rooms etc. The most important of such statutory schemes are health and safety and first aid facilities at workplace which are discussed below. 3.) Health and safety at workplace Cushway (2002) Employer has a general responsibility towards the health and safety of its employees. This requirement was given legal force through the health and safety act of 1974. Every employer must take practical steps to provide, safe working environment and safe access to and from working place, a safe system of work, safe tools, equipment and appliances, protection hazards and necessary training for employees. Apart from this if an organizations employee five or more employees it must have written health and safety policy. Employers have a duty towards general public as well and must ensure health and safety of visitors. Employees also have a duty to ensure health and safety at work and must not take steps which can affect others health and safety. The management of health and safety at work regulations act of 1999 require employer to, maintain health and safety and asses any risks to the health and safety of employees and if an organization employee more than five to record any findings, make arrangements for the preventive and protective measures arising from risks assessments, to carry out surveillance of employees regarding health and safety, to

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appoint a competent person to be responsible for the health and safety of the company, and make arrangements for necessary contacts with emergency services, and provide training and information about health and safety to employees and to ensure that temporary employees are also informed of health and safety measures. (Cushway. 2002) 4.) First Aid facilities at workplace As an employer you are required to provide first aid appliances at the work place. These facilities will depend on, the number of staff, type of work, size of the working premises and location of staff and location of working premises. As far as number of staff is concerned it depends on the above factors but generally there should be one first aider for 50 to 100 employees. Where hazards are greater there should be one first aider for every 50 employees. (cushway. 2002) Employers are also required to provide hygienic drinking water, Canteens and cafeteria, sufficient number of latrines; adequate washing places and changing rooms at the workplace. Proper lighting and seating arrangements are also statutory welfare requirement. 5.) Non statutory welfare benefits: According to Armstrong & Mulis (1988) employee welfare benefits are forms of remuneration provided in addition to cash pay. Such benefits provide a quantifiable value for individual employees and may be contingent like a pension scheme, sick pay and insurance cover. Such benefits also include elements which are not strictly remuneration such as annual holidays. The objectives of such employee benefits policies and practice of an organization might be, to increase commitment of the staff to the organizations, to provide for the actual personal needs of the employees such as personal security, financial security, to demonstrate that organization cares for the needs of its employees, to ensure that a competitive

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compensation package is provide in order to attract and retain highly valuable staff and to provide a method of remuneration which reduces tax liabilities. (Armstrong & Mulis.1988) Cushway (2002) employer is not legally bound to provide benefits, above minimum statutory entitlements. But employers provide just because to be competitive in the job markets and encourage staff satisfaction and motivation. Such benefits include pensions, cars, medical insurance, death-in-service benefits, holidays, sick pay, relocation expenses, maternity and paternity leave, sports facilities, loans and child care facilities. (Cushway. 2002)

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CHAPTER 6: Types of Benefits

Principle types of benefits include: Pension schemes: Pension has always been an important and valuable element of remuneration package. The question arises here is why organizations provide pension schemes for its employees and what are the benefits of providing it. According to Armstrong & Mulis (1988) historically employers provided pensions for the following reasons. It an employer perceived moral obligation to provide a standard of post retirement living for employees particularly for those with long service. The logic also extends to providing pensions arrangements for dependents on a current or retired employee's death. Similarly a pension scheme demonstrates that employer has a long interest of employees at heart. Apart from this pension scheme may help organizations in retaining and attracting staff. (Armstrong & Mulis.1988) Employer sponsored funded pensions are the means used by organizations to meet human resource management objectives. Occupational pensions play vital role first in attracting and subsequently retaining staff. According to tailor (2000) pensions scheme play a vital role in limiting employees turnover.

Personal security: According to Armstrong & Mulis (1988) Personal security includes benefits that enhance employees' personal and family life security with regard to illness, health, accidents and redundancy or life insurance. This also include death in service benefits which is provided as a part of pension scheme or as a separate life assurance cover, such benefits include a multiple of salary to be paid to employees dependents if he or she dies before retirement. The

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range of salary payable ranges from one to four times and may be dependent on employees' status. Personal accident cover is another form of personal security which provides compensation if an employee is involved in an accident causing serious injury or death. (Armstrong & Mulis.1988) Permanent health insurance also called long term disability cover provides for a continued income once the provisions of the organizations sick pay scheme are exhausted. It is provided as a security for those struck down with chronic or terminal illness. It is normally paid after six months of sick pay and used to continue till death or retirement or when the employees' pension becomes payable. It is a cheaper than any cover available to individuals. Its costs will vary in relation to any special health risks involved in employment. In order to look after employees health employers need to provide medical facilities and health screening such as X-rays for chest ailments. Although employees are provided statutory sick but most major employers provide extra statutory sick pay for longer than the statutory period. Extra statutory redundancy pay is paid by some organizations that faced redundancy from restructuring or change in business and usually include the following provisions, extra notice compensation, additional payments (service related) and payments given as a loss of office. Policy on redundancy is influenced by what the company can afford but the fact that generosity of treatment may well affect the morale of those whose jobs are safe. (Armstrong & Mulis.1988). Career counselling is one of the benefits offered by some employers to redundant employees is professional help in sorting out what they want to do next.

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Financial Assistance: Another kind of welfare benefits is giving employees some sort of financial assistance. Company loan schemes either provide sums of money to be lent interest free or at favourable interest rates to employees. Small sum to be lent where there is personal hardship. While larger loans are to be lent for defined purposes such as house improvements and purchasing car etc. Repayments are made on regular deductions from salary as agreed by employee and employer. A good employer provides relocation charges to its staff when they moved from one place to another. Companies which offer products and services provide discounts to its employees on such products and services. Another kind of financial assistance is payment of fees for any professional course undertaken by employees. (Armstrong & Mulis.1988)

Personal needs: According to Armstrong & Mulis (1988) in personal needs annual leave entitlements' are a major benefit. Employers are obliged to offer a minimum of 20 days paid holidays per year. Entitlement for holidays begins at the first day at work. Basic holidays are typically five weeks with some organizations offering up to six weeks. Long holidays may also be given in recognition of working unsociable hours or agreeing to flexible working practices. Compassionate leave may also be given to employees if a close relative is ill or die but is subject to formal policy in larger employers. It is a paid leave for short period and unpaid for longer period. The purpose of such leave is to show concern for its employees and to recognize the importance of family life in time of personal hardship. Such leave can do much for employee morale. In today's world women are also active in the workforce and employers need to provide some sort of benefits to them as well such as providing maternity leave till the time their babies are born. All female workers are entitled to 26 weeks maternity leave

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and to return to work on the same terms and conditions irrespective of working hours, service and status of employment. A women employee has statutory right to continue to benefit from all contractual terms and conditions of employment during the period of ordinary maternity leave except for wage or salary. Such contractual benefits consist of annual leave, public holidays missed. Some companies offer more maternity arrangements like offering full salary for longer than six weeks. According to Armstrong one engineering company reported offering 52 weeks full pay in order to attract more female employees. Where organizations employee large number of women and is dependent on their skills and knowledge generosity in the form of maternity leave can help with long term recruitment and retention. (Armstrong & Mulis.1988). Some organizations also provide paternity leave. According to which an employee is eligible for paternity leave if he expects to have the responsibility of upbringing of the baby and is the baby biological father. The parental and maternity leave came into force on 15 Dec1999. Parents of children with children under age of five with more than one year service are entitled for 13 weeks of unpaid parental leave for each child. (Armstrong & Mulis.1988). Apart from what discussed above adoption leave, child care and pr retirement counselling, personal counselling, sports and social facilities are some of the other welfare services provided by the companies.

Opportunities for learning, training and development According to Armstrong (1999) some of major organizations provide opportunities of personal growth and development for its employees. Employees learning means to develop firms' resource based capability. According to Human Resource Management principle it is necessary to invest in employees in order to develop human capital required by firm and to

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increase its stock of knowledge and skills. According to Human capital theory the skills and knowledge that an employee has which comes from learning and training generates a stock of productive capital. So it is very much important for a firm to develop conducive leaning and innovative environment. (Armstrong.1999) Armstrong (1999) further says that organizations also provide training to its employees in order to achieve its objectives by adding value to the people it employs. Organizations invest in people in order to improve their performance and make them use their natural abilities. The purpose of training is to develop the competence of employees and to help employees to grow within the organization. Effective training can: reduce learning costs, improve individual, quality and overall productivity, can attract people by providing training and development opportunities, develop a positive culture in the organization and can increase employees' level of satisfaction. (Armstrong.1999) Minor (1995) further add that some firms also provide coaching for development which is a process of building a working environment which enhances the development of skills and the performance of employees. Development is to identify the activities of to prepare staff for greater scope in their current or future positions. Employee development increases personal growth and job satisfaction of employees. Such development increases staff productivity and performance, increases employees retention, motivate employees and enables staff to respond quickly to change. From employee point of view it is important because it helps employee to grow, keeps skills current, increases employee's involvement in decision making and provide greater visibility and exposure to information. (Minor.1995)

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Counselling at workplace Counselling at work place is another welfare service provided by organizations. According to Highley & Cooper (1996) Counselling at workplace is aimed at helping employees (and sometime their families) to deal more effectively with personal, family and work related problems. The growth of counselling at work place is the result of a number of influences particularly stress as a real phenomenon within organizations. Stress is widely recognized as a major contributor to sickness, absence, lack of mental well being and other problems in the workplace. Stress at work is caused by both personal and work related issues. Workplace counselling programmes in order to be effective must address both personal and work related issues. Highley & Cooper (1996) further says that occupational stress presents a major threat to the financial position and profitability of the firm. So an organization is to consider what it can do to reduce workplace stressors. Counselling programme needs to be positioned in order to increase the value of the benefits in organizational areas and to ensure that it offers support to those involved in change and any other company developments. (Highley & Cooper.1996)

Flexible Working Pattern Papalexandris & Kramar (1997) says that organizations provide flexible working arrangements for a variety of reasons. The most important is economics reasons and in order to improve productivity and competitiveness, other reasons include a change in the composition of the workforce and the use of flexible patterns as way of recruiting and retaining staff. Some time organizations are required to arrange flexible working pattern as a consequence of industrial agreement. Flexible working arrangements have economic and social benefits. Both Papalexandris & Kramar (1997) further says that flexible working pattern not only improves productivity and competitiveness but is also recognized as way of

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reducing unemployment and as an important tool for reconciling work and family life. Working conditions like, flexible hours of work, working schedule and job autonomy affects family and employee satisfaction. Poor health, stress and job satisfaction have found to be the outcomes of heavy job demands. Similarly if an employer is not supportive of an employee child care needs considerable stress at work and home is created. So flexible working arrangements meet the needs of business resulting from economical and technological changes and also provide some way to satisfy the needs of employees by attempting to combine employment and family life. Flexible working arrangements take many forms such as, Flexibility in working time arrangements, flexibility in the number of hours worked and flexibility with regard to place of work. Work and family life policies have a positive effect on employees and on the outcome of organizations. Flexible working arrangements improve employee morale, enhance recruitment and retention, increase productivity and reduce employee absentees. Flexible working patterns in particular can serve a number of organizational purposes such as increasing productivity and competitiveness, fostering organizational change and improving quality of recruitment and retention of employees. Flexible working arrangements can facilitate the reconciliation of work and family needs and allow employees to manage both responsibilities'. (Papalexandris & Kramar.1997)

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CHAPTER 7: Employee Welfares in Tata Group

Introduction Tata Group is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India.[3] It encompasses seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. Tata Group was founded in 1868 by Jamsetji Tata as a trading company. It has operations in more than 80 countries across six continents. Tata Group has over 100 operating companies each of them operates independently out of them 32 are publicly listed. The major Tata companies are Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan Industries, Tata Communications and Taj Hotels. The combined market capitalisation of all the 32 listed Tata companies was $89.88 billion as of March 2012. Tata receives more than 58% of its revenue from outside India. Tata Group remains a family-owned business, as the descendants of the founder (from the Tata family) owns majority stake in the company. The current chairman of the Tata group is Cyrus Pallonji Mistry, who took over from Ratan Tata in 2012. Tata Sons is the promoter of all key Tata companies and holds the bulk of shareholding in these companies. The chairman of Tata Sons has traditionally been the chairman of the Tata group. About 66% of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the Tata family. The Tata Group and its companies & enterprises is perceived to be India's best-known global brand within and outside the country as per an ASSOCHAM survey. The 2009, annual survey by the Reputation Institute ranked Tata Group as the 11th most reputable company in the world. The survey included 600 global companies. The Tata Group has helped establish and finance numerous quality researches, educational and cultural institutes in India. The group

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was awarded the Carnegie Medal of Philanthropy in 2007 in recognition of its long history of philanthropic activities.

History
The Tata Group was founded as a private trading firm in 1868 by entrepreneur and philanthropist Tata. In 1902 the group incorporated the Indian Hotels Company to commission the Taj Mahal Palace & Tower, the first luxury hotel in India, which opened the following year. After Jamsetjis death in 1904, his son Sir Dorab Tata took over as chair of the Tata Group. Under Dorabs leadership the group quickly diversified, venturing into a vast array of new industries, including steel (1907), electricity (1910), education (1911), consumer goods (1917), and aviation (1932).[14] Following Dorabs death in 1932, Sir Nowroji Saklatwala became the groups chair. Six years later Jehangir Ratanji Dadabhoy Tata (J.R.D.) took over the position. His continued expansion of the company into new sectorssuch as chemicals (1939), technology (1945), cosmetics (1952), marketing, engineering, and manufacturing (1954), tea (1962), and software services (1968)earned Tata Group international recognition. In 1945 Tata Group established the Tata Engineering and Locomotive Company (TELCO) to manufacture engineering and locomotive products; it was renamed Tata Motors in 2003. In 1991 J.R.D.s nephew, Indian business mogul Ratan Naval Tata, succeeded him as chairman of the Tata Group. Upon assuming leadership of the conglomerate, Ratan aggressively sought to expand it, and increasingly he focused on globalizing its businesses. In 2000 the group acquired London-based Tetley Tea, and in 2004 it purchased the truck-manufacturing operations of

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South Koreas Daewoo Motors. In 2001 Tata Group partnered with American International Group, Inc. (AIG) to create the insurance company Tata-AIG.

This section lists the Tata companies and details their business: Chemicals Tata Chemicals Rallis India Tata Pigments Limited General Chemical Industrial Products Brunner Mond Advinus Therapeutics Magadi Soda Company

Consumer Products Tata Salt I-shakti Casa Dcor Tata Swach Tata Global Beverages

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Tata Tea Limited is the world's second largest manufacturer of packaged tea and tea

products. Eight O'Clock Coffee Tata Ceramics Infiniti Retail (Crom) Tetley Tata Coffee Tata Industries Titan Industries Trent (Westside) Tata Sky TajAir Tata International Ltd. Tanishq Tata Refractories Westland

Energy Tata Power is one of the largest private sector power companies.

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Tata BP Solar, a joint venture between Tata Power and BP Solar Hooghly Met Coke and Power Company Jamshedpur Utilities and Services Company Tata Power Delhi Distribution Ltd (Formerly Known as North Delhi Power Ltd) Powerlinks Transmission Tata Power Trading Tata Projects

Engineering cars Jaguar Land Rover (Manager of Tata's British brands Jaguar cars and Land Rover Tata Daewoo Commercial Vehicle Tata Projects Tata Consulting Engineers Limited Tata Cummins Telco Construction Equipment TAL Manufacturing Solutions Tata AutoComp Systems Limited (TACO) Hispano Carrocera Tata Motors, manufacturer of commercial vehicles (largest in India) and passenger

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TRF Voltas, consumer electronics company Voltas Global Engineering Centre Tata Advanced Materials Tata Advanced Systems Tata Motors European Technical Centre Tata Petrodyne Tata Precision Industries Telcon Construction Equipment

Information Systems and Communications Computational Research Laboratories INCAT Nelco Nelito Systems Tata Business Support Services Tata Consultancy Services Ltd. (TCS) is Asia's largest software company. Tata Elxsi Neotel Tata Interactive Systems

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Tata Technologies Limited Tata Teleservices Virgin Mobile India Tata Communications CMC Limited VSNL International Canada Tatanet, Managed connectivity and VSAT service provider Tata Teleservices Tata Teleservices (Maharashtra)

Services Tata Sons TKM Global ( Logistics and Supply Chain ) www.tkmglobal.net The Indian Hotels Company Ginger Hotels Roots Corporation Landmark Bookstores Tata Housing Development Company Ltd. (THDC) Tata Limited TATA AIG General Insurance

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TATA AIG Life Insurance Tata AG Tata Asset Management Tata Financial Services Tata Capital Tata International AG Tata Investment Corporation Tata Advanced Systems Limited Drive India Enterprise Solutions Mjunction services Tata Quality Management Services Tata Realty and Infrastructure Limited Tata Interactive Systems Tata Africa Holdings Tata AutoComp Systems Tata Industrial Services Tata NYK Tata Services Tata Strategic Management Group

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Steel

Taj Hotels

Tata Steel Tata Steel Europe Tata Steel KZN Tata Steel Processing and Distribution JAMIPOL NatSteel Holdings Tata BlueScope Steel Tata Metaliks Tata Sponge Iron Tayo Rolls The Tinplate Company of India TM International Logistics

Core Sciences Tata Institute of Fundamental Research Tata Institute of Social Sciences

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CHAPTER 8: Employee Welfares at Tata Steel

Since its inception, Tata Steel has always viewed its people as its greatest asset. Measures taken by the Company became a part of modern Indias laws and a part of the Conventions of the International Labour Organisation. The Company endeavours to be an Employer of Choice by fostering an environment of aspirational goal setting, continuous improvement, in addition to health and safety, and corporate responsibility.

Right to freedom of association and collective bargaining: Tata Steel respects the right of employees to exercise freedom of association and collective bargaining. Trade unions are present and encouraged at all locations. All non-officers (~86% of the total workforce) in India are represented by 26 independent trade unions across the Companys locations. Challenges faced are discussed with the recognised unions at scheduled meetings. Joint Consultations: Established in 1956, the three-tiered Joint Consultation System provides a platform for issues related to production, productivity, quality, safety, welfare, training, (excluding issues of collective bargaining and individual grievances).

Grievance Handling Mechanism: The Company has an informal, online grievance resolution process called Samadhan, and a three-tier formal grievance resolution mechanism. Unresolved grievances are referred to the Central Works Committee. In Financial Year 2011-12, the Committee addressed six grievances, of which two were resolved to the satisfaction of the employees concerned. Equal opportunity employer Tata Steel recognises and values the differences in employee

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backgrounds and skills and promotes equal access to employment and supply opportunities without discrimination. Any alleged violation of the equal opportunity policies is investigated and, if found valid, acted upon.

Promoting a just and fair workplace The level of wages and salaries of all employees except, for instance, the senior managers in Europe, skilled employees of NatSteel and the officers category in India are defined and determined by periodic collective bargaining or wage arrangements. The Company complies strictly with rules and regulations stipulated by local governments on minimum wages paid to employees. Encouraging work-life balance for employees A unique initiative, launched in Financial Year 2010-11, Wellness@Workplace continued to be rolled out across locations in Financial Year 2011-12.

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Some other employee initiatives cover aspects related to housing, medical care, education, culture and counselling. Specific initiatives for female employees include: Additional 15 days leave for those with children below five years. Additional house points that allow them to create a nurturing environment for their children. Relaxation in eligibility clauses for sabbatical on maternity grounds. Promotion of the women empowerment cell of Tata Steel. Caring for the well-being of its employees, including those with special needs Committees comprising representatives of the Union and Management jointly monitor employee benefits.

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The following benefits are provided beyond statutory obligations: Workplace amenities superior to those prescribed by law; highly subsidized and quality canteen facilities; employee health provisions; monetary incentives for higher studies; family benefit scheme; TISCO Employees Pension Scheme, in which the Company and employee make an equal contribution towards the fund; maternity leave provisions; Early Separation Scheme for non-officers of the Company who have been rendered surplus.

Providing a safe, hygienic and humane workplace The Safety Excellence Journey enables the Company to continuously improve Occupational Health and Safety management using internationally recognised standards. The Safety Excellence Journey was launched in Tata Steel Thailand in 2010 with support from Tata Steel India.

Safety Governance Structure The Management is responsible for training and supervising employees on safe procedures and health care, providing information on safety hazards and providing safety appliances. It is also responsible the Companys compliance with statutory provisions on health and safety. The Company constantly strives to achieve its goals of a Zero Fatality rate, and a Lost Time due to Injury Frequency Rate (LTIFR) of 0.4.

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Skill development and creating world-class employees The Tata Steel Management Development Centre (TMDC) creates managerial and functional training opportunities for all officers of Tata Steel India, while the Shavak Nanavati Technical Institute (SNTI) is responsible for technical and functional training of officers and non-officers. In April 2011, the Tata Steel Academy was launched in Europe to enable employees to achieve the highest standards of technical and professional expertise. During Financial Year 2011-12, NatSteel invested a total of 18,432.9 man-hours in training.

Offering a harassment-free workplace to all Tata Steel aims to have a discrimination-free workplace. Guidance on a harassment-free workplace is taken from the Tata Code of Conduct and the Companys Human Resource, Sexual Harassment and Affirmative Action Policies.

Rewarded for Excellence NatSteel has been awarded the Work-Life Excellence Award by the Singapore Ministry of Manpower. It is also a recipient of the Apex Platinum Health Award by the Singapore Health Promotion Board.

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CHAPTER 9: Welfare Measures at the Tata Iron and Steel Company:

The Tata Iron and Steel Company has undertaken various for the betterment of its employees. It has modified the rural Jamshedpur into an advanced urban development. Various developments have taken place in the areas of housing, health, education, recreation and transportation. Housing About 68% of TISCO employees are provided with affordable housing at a cost of 10% of their income or a standardized rent - whichever is lower. The company has built 16, 698 quarters for employees and encourages employees to construct their own homes. Plots are available to employees for rent, and the management assists the cooperative housing society. Medical TISCO runs many medical hospitals within Jamshedpur. Health services are provided free-ofcharge to company employees and their families. Many of the hospitals are well equipped with the latest medical equipment and treatment options. Therefore, the ESI scheme is not applicable to steel plants. Facilities are available in the following areas: Domiciliary treatment. Public health and industrial services. Facilities for special treatment. Family planning clinics and advice. Maternity and children ward.

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Education TISCO has upheld the importance of education within the community. Various educational programs have been developed for people of all ages and backgrounds. All children attend school, and many night schools, technical schools, and adult literary classes have been established for working adults. Furthermore, scholarships are offered to children of employees. These scholarships cover tuition costs, stationary, books, meals, transport, etc. for qualified students.

Recreation Facilities for recreation have been provided for employees. These include health clubs and community centers, running tracks, gyms, etc. Various community entertainment centers have been built in the city. These centers are equipped with stages, halls, libraries, etc. These community centers organize various stage shows, sports, games, social gatherings, picnics, and various courses ranging from shorthand to dance lessons. Furthermore, courses especially aimed at the backward classes have been developed by the community outreach programs.

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CHAPTER 10: Conclusion

The available literature is focused on the concept of employee welfare programs and benefits, why organizations provide welfare benefits to employees and how such welfare benefits increase firm's productivity and help organizations in attracting and retaining qualified people. There are different views about these questions. According to Marsh & Kleiner (2004) employee welfare benefits represents any form of compensation provided other than direct wages, paid in part or in whole by employer, such benefits serve different social and economic needs. According to Forsyth (2006) employees do not work for just a wage or salary. It is usually a whole compensation package and should be provided with the intentions to motivate employees. The purpose of such package is to attract and retain employees by encouraging them to remain with the organization. At the same time some there are arguments against the provision of welfare programs. According to Armstrong (1999) welfare programs are provided by state services why industrial, public or commercial organizations should provide such services. Staff out of work activities should not be the concern of organizations. But still industrial and commercial organizations provide welfare programs for different reasons firstly to motivate and retain employees, Secondly to improve employees' performance, health, social status and economic condition. The logic behind welfare programs is to prepare efficient, loyal, healthy and satisfied workers for the organizations. Services such as medical facilities, education for employees families and help in improving their life living standard and makes employees to concentrate on their job. Productivity is a key issue and a small increase in productivity can result in strong financial returns. So a healthy work environment should always be a first step towards improving firms'

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productivity. Providing welfare programs improve firms' productivity and promote a healthy work environment. According to Berman (2006) Competitive salaries, benefits that meet the needs of employees for economic and non-work needs, opportunity for learning and development and friendly work relationship provide a significant amount of motivation for employees. Retention is key issue in today's competitive business world and organizations should offer something more than wage and salary in order to keep key employees. According to social exchange theory that firm that offers more voluntary compensation have better chance of retaining employees to contribute their knowledge and skills. (Tsai & Wang, 2005)

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Bibliography Worldatwork (2007) Handbook of compensation, benefits and Total rewards Published by John Wiley & sons New Jersey. KUEN HUNG TSAI & JIANN CHYUAN WANG (2005) Journal "Benefits Offers no advantage on firm productivity", pp 393-405, Vol 34, Emerald Group publishing MRS.Y.L.GIRI (2008).Human Resource Management Managing people at Work 1st edition published by Nirali Prakashan, Pune .India SARAH COOK (2008), Guide to employee Management, by Morgan Page, UK MICHAEL ARMSTRONG & TINA STEPHEN (2005), Handbook of Employee Reward Management & Practice by Kogan Page, UK BOB MARSH & BRIAN H.KLEINER (2004) "An overview of trends in employee Benefits Programmes" Management Research News Vol 27 Number 4/5

Kedia Ben L., Debmalya Mukherjee, and Somnath Lahiri (2006), Indian business groups: Evolution and transformation, Asia Pacific Journal of Management, Vol. 23, No. 4: 559 577. Khanna, Tarun (2007), Tata-Corus: Indias New Steel Giant, The Economic Times, 14 February. References: http://www.rahulgladwin.com/noteblog/business/LW/welfare-measures-at-the-tata-iron-andsteel-company.php http://www.un.org/partners/business/gcevent/companies/tatasteel.html