Amul Welfare

JournalofBusinessManagement&SocialSciencesResearch(JBM&SSR)ISSNNo:23195614
Volume2,No.2,February2013
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www.borjournals.comBlueOceanResearchJournals57

Provision Of Welfare Under Factories Act & Its Impact
On Employee Satisfaction

Parul P Bhati, Research scholar, Karpagam University, Coimbatore, Assistant Professor, MBA (HR), IDS,
Nirma University, Ahmedabad, Gujarat
Dr.Ashokkumar M., Professor & Head, Department of Management, Karpagam University, Coimbatore,
Karpagam University, Tamilnadu, India

ABSTARCT
This Paper contains the overviews of ENGINEEIRNG INDUSTRY. This also contains the different welfare
provisions to be given to the employees under the Factory Act 1948. This paper contains the research on
employee satisfaction towards welfare facilities under the act. This includes the study of 50 employees from
each of the company i.e. Jyoti CNC, Rajoo Engineering, Steel Cast, Atul auto & Amul industries making a total
sample size of 250 employees. In our study we measured the impact of welfare provisions on employee
satisfaction by way of the correlation technique and we also measured that whether any difference in terms of
employee satisfaction towards welfare provision exists by way of using one way Annova test.
Key Terms:
Worker, Washing Facility, First Aid, Canteen, Crches, Appropriate Government.

1.INTRODUCTION
The Engineering sector is the largest in the overall
industrial sectors in India. It is a diverse industry
with a number of segments, and can be broadly
categorized into two segments, namely, heavy
engineering and light engineering. The engineering
sector is relatively less fragmented at the top, as the
competencies required are high, while it is highly
fragmented at the lower end (e.g. unbranded
transformers for the retail segment) and is
dominated by smaller players.
Gujarat contributes to over 8% of Indias total
engineering output, and is home to several
industrial units with operations across the entire
engineering value chain over 300 units in large
sector and over 75,000 units in Small and medium
enterprises (SME) sector (excluding repair and
services). Major production base for sponge iron,
steel pipes and tubes, copper cathode, electrical,
switchgear, transformer and transmission line
towers, heavy fabrication, ship building and auto
components. 30 out of the 83 product clusters in

the State are dedicated to engineering and auto
sector.
Major engineering clusters in Gujarat include
foundry, ship breaking, induction furnace industry,
steel re-rolling mills, brass parts, oil engines,
fabrication and machine tools, auto components
and SS utensils Hindalcos copper smelting and
refining complex at Dahej in Bharuch District is
the worlds largest copper smelter at a single
location with a capacity of 5,00,000 tones a year.
Engineering industry in Saurashtra region is mainly
concentrated in the areas like Rajkot, Bhavnagar,
Jamnagar, some portion of Junagadh & Porbandar
etc. Each of these districts has specialties for the
manufacturing of the different engineering
products. The main concentration of engineering
industry in Saurashtra region is Rajkot & it is very
well supported by other district. Besides Saurashtra
Kutch region is also enriched with the industries
manufacturing saw pipes, Steel Bars & components
of wind mill.

DISTRICT SPECILAITY MAJOR PLAYERS
Rajkot Auto components, Diesel Engine, CNC
machinery, Casting products
Amul auto, Kadvani forging, Jyoti CNC, Rajoo
engineering, P M Diesels, Forge & Forge, Rolex
Bearing
Bhavnagar Rerolled steel, castings Steel cast, Investment & Precession castings limited
Jamnagar Brass Parts Rajhans Mtal Pvt.ltd, Trupti Brass

2.LITERATURE REVIEW
A Sabarirajan, T.Meharajan, B.Arun (2010) in
their study of the Cotton Textile plays a vital role
in human life. Textile industries are one of the
important industries of India for earning Foreign
Exchange and giving employment to lacks of
workers .Because of being a highly labor intensive
industry it needs to concentrate more in the area of
employee welfare. In this study we selected Salem
District in Tamil Nadu, India for identifying
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various methods and also to identify the
effectiveness of the methods. The study shows that
15% of the employees are highly satisfied with
their welfare measures. 22 % of the employees are
satisfied with their welfare measures.39% of the
employees is average with their welfare measures.
16% of them are in highly dissatisfied level.
Welfare measures plays important role in employee
satisfaction and it results in improved quality of
work life. This study throws light on the impact of
welfare measures on QWL among the employees
of textile mills in Salam district.
B D Singh (Industrial Relations and Labour
Laws)Excel (2008) Edition This legislation is
being enforced by technical officers i.e. Inspectors
of Factories, Dy. Chief Inspectors of Factories who
work under the control of the Chief Inspector of
Factories and overall control of the Labour
Commissioner, Government of National Capital
Territory of Delhi. The Factories Act, is a social
legislation which has been enacted for occupational
safety, health and welfare of workers at work
places. In India the first Factories Act was passed
in 1881. This Act was basically designed to protect
children and to provide few measures for health
and safety of the workers. This law was applicable
to only those factories, which employed 100 or
more workers. On the basis of the
recommendations of the Factory Labour
Commission, more comprehensive Law was
introduced in 1911, which got amended in 1923,
1926 and 1931 With the amendments made by
Royal Commission of Labour (1931),
Comprehensive Factory Act, 1934 was introduced.
Shobha Mishra and Dr Manju Bhagat (2007) in
their article discuss labour welfare activities in an
industrialized society has far reaching impact not
only on the work force but also all the facets of
human resources. Labour welfare includes all such
activities, which not only secures existential
necessities but also ensures improvement in
spiritual and emotional quotient. It comprises of
short term and long terms goal toward building a
humane society. As labour welfare is a dynamic
concept, changes in its principles activities and the
rationale supporting them have not been static.
They closely follow the stages of advancement of
the industrialized society from police Theory to
Functional Theory. Accordingly principles for
successful implementation of labour welfare
activities ranges from adequacy of wages to impact
on efficiency as well as transformation of
personality in nut shell, it is extension of
democratic values in an industrialized society.
Kwong-leung Tang and Chau-kiu Cheung
(2007) studies that employs survey data from1240
welfare recipients in Hong Kongto investigate the
effectiveness of various measures for raising the
recipients work motivation and diminishing their
welfare dependency. The measures examined
include the Intensive Employment Assistance
Project (IEAP), Community Work (CW) Program
and Disregarded Earnings (DE) arrangements.
Findings reveal the effectiveness of these three
measures. Particularly, help received from various
services of the IEAP was the principal factor in the
effectiveness of the IEAP and the IEAP was
effective for welfare recipients who were older or
less skilled. The findings thus offer support to the
generality of the claim about the effectiveness of
welfare-to-work programs.
C. P. John (2004) studied in the paper the large
gaps existing between the rich and the poor and the
unorganized workers and the organized workers
have led in several countries to attempts at
providing social and economic security to the poor
and to the unorganized sectors. In Kerala, the
introduction of modern techniques of production
and the growth of capitalist production relations
had important implications for the traditional crafts
as well as craftsman in Kerala. One of its
implications has been the breakdown of the
conventional social security set-up. Craftsmen in
Kerala belonged to a specific caste group, namely,
Kammala or Viswakarma. The social security
system among craftsmen was embedded in the craft
and caste traditions and practices. The customs and
practices of the craft as well as of caste groups
were eroded in the processes of change that
transformed caste-based occupational traditions
and the social structure itself.

3.RESEARCH METHODOLOGY
3.1 RESEARCH PROBLEM Welfare provisions
of Factories Act 1948 are important as far as the
nature of the work in the engineering industries is
concerned. It may happen that the employees
working in the engineering industry are not
satisfied with the welfare provisions provided
under Factories Act 1948. So our study will aim
at studying the satisfaction level of the
employees.
3.2 OBJECTIVES OF RESEARCH
1. To review the welfare provisions extended to the
employees in Jyoti CNC, Rajoo engineering, steel
cast, Atul Auto & Amul industries.
2. To identify whether any relation exists between
welfare provisions & Employee satisfaction.
3.3 HYPOTHESIS
Hypothesis for studying the relationship
existence between welfare provisions &
Employee satisfaction.
Null Hypothesis (Ho): The welfare provision &
employee satisfaction are corelated. Alternate
Hypothesis (Ha): The welfare provisions &
employee satisfaction are unrelated. This
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hypothesis is tested by considering each & every
welfare provisions individually.
Hypothesis for comparing satisfaction level
among all five companies due to welfare
provisions extended to employees.
Null Hypothesis (Ho): There is no significance
difference in employee satisfaction among five
companies. Alternate Hypothesis (Ha): There is
significance difference in employee satisfaction
among five companies. This hypothesis is tested by
considering each & every welfare provisions
individually.
3.4 RESEARCH DESIGN
For research we select the entire Engineering
industry of Saurashtra region as population of our
study and select five engineering companies i.e.
Jyoti CNC, Rajoo Engineering, Steel Cast, Atul
Auto & Amul industries by judgmental sampling.
From the above five companies we select
sample size of 50 employees from each of the
company i.e. 250 as our total sample size of the
study by simple random sampling. The data is
collected using primary data collection tool
questionnaire.
TEST APPLICATION: In our study we use
Correlation & One Way ANNOVA for our
objective analysis. The test is conducted at 5%
level of significance.
4 DATA ANALYSIS &
INTERPRETATION
On the basis of data collected we got the following
outcome. Data chart of welfare provisions co-relate
with employee satisfaction of five companies as
below
.

Chart 2

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Chart 3

Chart 4

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5 HYPOTHESIS TESTING
For identifying relation between the welfare
provisions & employee satisfaction by applying
Correlation Analysis for each welfare provisions.
1. For washing facility.
Null Hypothesis (H
o
): The Washing facility &
employee satisfaction are co related.
Alternate Hypothesis (H
a
employee satisfaction are un - related
.

Table 1
Washing Facilities Job Satisfaction
Highly satisfied 116 97
Satisfied 80 59
Moderate 35 67
Dissatisfied 14 21
Highly Dissatisfied 5 6
TOTAL 250 250

Washing Facilities Job satisfaction
Washing Facilities 1 0.977678273
Job satisfaction 0.977678273 1
From the above table Variable X: washing facility
Variable Y: Job satisfaction

This Correlation table shows there is positive
relationship between washing facility & employee
satisfaction & the inferred value is 0.977.

So the null hypothesis gets accepted & hence
proved that the washing facility & employee
satisfaction are correlated.

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2. Storing & drying Facility
Null Hypothesis (H
o
a
employee satisfaction are un - related.
Table 2
Storing & Drying Job Satisfaction
Satisfied 135 59
Moderate 58 67
Dissatisfied 6 21
250 250

Storing & Drying Job Satisfaction
Storing & Drying 1 0.558238634
Job Satisfaction 0.558238634 1

From the above table Variable X: storing & drying facility

relationship between storing & drying facility &
employee satisfaction & the inferred value is 0.558.
proved that the storing & drying facility &
employee satisfaction are correlated.
3. Sitting Arrangement during work
Null Hypothesis (H
o
): The sitting arrangement
facility & employee satisfaction are co related.
a
): The sitting arrangement
facility & employee satisfaction are un - related.
Table 3
Facility for sitting Job Satisfaction
Satisfied 82 59
Moderate 143 67
Dissatisfied 6 21
250 250

Facility for sitting Job Satisfaction
Facility for sitting 1 0.423138985

From the above table Variable X: sitting arrangement facility

relationship between sitting arrangement facility &
proved that the sitting arrangement facility &
employee satisfaction are correlated.

4. First Aid facility
Null Hypothesis (H
o
): The First Aid facility &
a
): The First Aid facility &
Table 4
First Aid Job Satisfaction
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Satisfied 82 59
Moderate 22 67
Dissatisfied 7 21
250 250

First Aid Job Satisfaction
First Aid 1 0.848305

From the above table Variable X: first aid facility

relationship between first aid facility & employee
satisfaction & the inferred value is 0.848. So the
null hypothesis gets accepted & hence proved that
the first aid facility & employee satisfaction are
correlated.
5. Canteen facility
Null Hypothesis (H
o
): The canteen facility &
a
): The canteen facility &
Table 5
Canteen Job Satisfaction
Satisfied 53 59
Moderate 15 67
Dissatisfied 5 21
250 250

Canteen Job Satisfaction
Canteen 1 0.822544

From the above table Variable X: canteen facility

relationship between canteen facility & employee
satisfaction & the inferred value is 0.822. So the
null hypothesis gets accepted & hence proved that
the canteen & employee satisfaction are correlated.
6. Shelters, lunch room, restroom
For comparing the level of the employee
satisfaction among these five companies due to

welfare provisions by applying One Way Annova
test at 5% level of significance.
Null Hypothesis (H
o
): The shelters, lunchroom,
restroom facility & employee satisfaction are co
related.
a
): The shelters,
lunchroom, restroom facility & employee
satisfaction are un - related.

Table 6
Lunch room,restroom Job Satisfaction
Satisfied 151 59
Moderate 40 67
Dissatisfied 14 21
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250 250

Lunch room,restroom Job Satisfaction
Lunch room,restroom 1 0.403177506

From the above table Variable X: shelters, lunchroom, and restroom facility

relationship between shelters, lunchroom, restroom
facility & employee satisfaction & the inferred
value is 0.403. So the null hypothesis gets accepted
& hence proved that the shelters, lunchroom,
restroom & employee satisfaction are correlated.
7. Crches or baby care facility.
In our study none of the organization gets affected
by this provision given under Factories Ac 1948
because of not having 30 or more than 30 women
employees.
8. Welfare officer
Null Hypothesis (H
o
): The welfare officer facility
& employee satisfaction are co related.
a
): The welfare officer
facility & employee satisfaction are un - related.

Table 7
Welfare Officer Job Satisfaction
Satisfied 34 59
Moderate 171 67
Dissatisfied 39 21
250 250

Welfare Officer Job Satisfaction
Welfare Officer 1 0.204941685

From the above table Variable X: welfare officer facility

relationship between welfare officer facility &
proved that the welfare officer & employee
satisfaction are correlated.
Comparing the level of the employee satisfaction
among Jyoti CNC, Rajoo engineering, Steel cast,
Atul auto & Amul Industires due to welfare
provisions.
1. For washing facility.
Null Hypothesis (H
o
): There is no significance
difference in the employee satisfaction due to
washing facility given by company.
a
): There is significance
washing facility given by company.
Table 8
Washing Facilities
Jyoti Rajoo Steel Cast Atul Amul
Highly satisfied 125 135 100 90 130
Satisfied 68 48 80 68 56
Moderate 15 18 24 27 21
Dissatisfied 4 6 4 10 4
Highly Dissatisfied 1 2 0 1 1
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From the above test the calculated value which is
0.0020 is less than tabular value i.e. 2.87 so our
Null hypothesis gets accepted.So there is no
significance difference in the employee satisfaction
due to washing facility given by company.

Storing & drying Facility
Null Hypothesis (H
o
storing & drying facility given by company.

a
storing & drying facility given by company.

Table 9
Storing & Drying
Satisfied 108 76 144 116 96
Moderate 30 39 27 42 36

Source of Variation SS Df MS Fc Ft
Between 16.96 4 4.24 0.0019 F(4,20)= 2.87
Within 43944.56 20 2197.22
Total 43961.52 24

Null hypothesis gets accepted.
So there is no significance difference in the
employee satisfaction due to storing & drying
facility given by company.
Sitting Arrangement during work
Null Hypothesis (H
o
sitting arrangement facility given by company.
a
sitting arrangement facility given by company.

Table 10
Facility for sitting
Satisfied 60 68 56 64 80
Moderate 96 78 87 90 78

Source of
Variation
SS df MS Fc Ft
Between 37.04 4 9.26 0.0020 F(4,20)=2.87
Within 91012.22 20 4550.61
Total 91049.26 24
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Source of Variation SS df MS Fc Ft
Between 17.20 4 4.3 0.0027 F(4,20)= 2.87
Within 31106 20 1555.3
Total 31123.2 24

employee satisfaction due to sitting arrangement
facility during work given by company.

2. First Aid facility
Null Hypothesis (H
o
difference in the employee satisfaction due to first
aid facility given by company.
a
difference in the employee satisfaction due to first
aid facility given by company
.
Table 11
First Aid
Satisfied 72 60 64 60 72
Moderate 15 12 18 15 6

Between 61.84 4 15.46 0.0045 F(4,20)= 2.87
Within 67536.23 20 3376.81
Total 67598.07 24

employee satisfaction due to first aid facility given
by company.

3. Canteen facility
Null Hypothesis (H
o
canteen facility given by company.
a
canteen facility given by company.

Table 12
Canteen
Satisfied 24 40 68 24 56
Moderate 9 12 12 12 0

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Between 14.24 4 3.56 0.0006 F(4,20)= 2.87
Within 116659.8 20 5832.99
Total 116674.04 24

employee satisfaction due to canteen facility given
by company.
4. Shelters, lunch room, restroom

Null Hypothesis (H
o
shelter, restroom & lunchroom facility given by
company.
a
shelter, restroom & lunchroom facility given by
company.

Table 13
Lunch room,restroom
Satisfied 144 116 120 120 104
Moderate 18 30 27 18 27

Between 9.2 4 2.3 0.0009 F(4,20)= 2.87
Within 49296 20 2464.8
Total 49305.2 24

employee satisfaction due to shelter, restroom &
lunchroom facility given by company
5. Crches or baby care facility.
In our study none of the organization gets affected
by this provision given under Factories Ac 1948

because of not having 30 or more than 30 women
employees.
6. Welfare officer
Null Hypothesis (H
o
welfare officer facility given by company.
a
welfare officer facility given by company.

Table 14
Welfare Officer
Satisfied 20 40 24 12 40
Moderate 108 87 90 129 99

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Between 13.2 4 3.3 0.0017 F(4,20)= 2.87
Within 37461.27 20 1873.06
Total 37474.47 24

employee satisfaction due to welfare officer facility
given by company

6. IMPLICATION OF STUDY
This study can be implied in any of the industry as
a tool for identifying the employee tendency &
belief towards the welfare provisions. One can
know the requirement of the workers in terms of
different non financial motivational tools by
implying this study. This study can be useful for
identifying the factors which leads to employee
satisfaction so that company can use those factors
as retention tool for retaining employees in the
organization.

7. LIMITATION OF STUDY
1. Few of the respondents hesitated to give the
correct information.
2. Few respondents hesitated to give opinion
against their management.
3. The period of the study was limited.
4. The validity of the study depends up on the
reliability of the primary data.
5. Due to the size of the organizations in the
Saurashtra region put curse on some welfare
provisions to be implemented which leads to
inconsideration in our study i.e. Having less than
30 no. of women employees leads to deduction of
the organization from following the provision of
giving Creches facility to women employees.

8.SCOPE OF FUTURE STUDY
This study can be used in future for analyzing the
welfare provisions & its impact on employee
satisfaction in different area as we had done in
engineering industry. This study also can be taken
as a reference for studying the other provisions of
the different acts as well as of same act like
provision for safety, health, etc. And can be studied
with reference to employee satisfaction.

9. FINDINGS & SUGESSTIONS
From our study of PROVISION OF WELFARE
UNDER FACTORIES ACT & ITS IMPACT ON

EMPLOYEE SATISFACTION we suggest that
the provisions provided to the employees in each
industry should always be made more beneficiary
for their welfare. So , for this each industry should
appoint the welfare officer who can take better care
for the welfare facility of the employees in an
industry. From our study we have found out that
the employees have positive attitude towards their
industry for the welfare provisions.

10. CONCLUSION
Our research study conclude in terms of proving
that the different welfare provisions provided to the
employees working in an organization under
Factories Act 1948 are having positive relation
with the employee satisfaction. In our study after
analyzing the Correlation between these two
factors gives the result. The reason behind this
result is that these are the factors that lead to
satisfaction & if they are not present can sometimes
lead to dissatisfaction i.e. on basis of Herzbergs
theory of motivation.
Study also gives the outcome on basis of the One
Way Annova test that the welfare provisions given
to employees in five companies i.e. Jyoti CNC,
Rajoo Engineering, Steel Cast, Atul auto & Amul
Industries dose not have significant difference in
the employee satisfaction level.
The reason behind the acceptance of hypothesis &
getting the above result is that the companies under
our study follows or provides more or less same
kind of the welfare provisions to their employees.
The companies who are giving the provisions to
their employees vary slightly. E.g. in canteen
provision variation is in terms of the rate at which
they provide food, the quality of food, test etc. In
the same manner the shelter, restroom &
lunchroom facility vary in terms of the location, its
ambiance etc.

REFERENCES
[1] Agarwala (2004). From Work to Welfare:
The State and Informal Workers
Organizations in India. American Political
Science Association Annual Meeting, Chicago,
Illinois
[2] Frieda Fuchs(2005). The Effects of Protective
Labor Legislation on Womens Wages and
Welfare: Lessons from Britain and France.
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Journal of Politics & Society December 2005
vol. 33 no. 4 595-636
[3] John (2004). Social Security and Labour
Welfare with Special Reference to
Construction Workers in Kerala. Kerala
Research Program on Local Level
Development, paper no 65. Kwong-leung Tang
and
[4] Chau-kiu Cheung (2007). Program
Effectiveness in Activating Welfare Recipients
to Work: The Case of Hong Kong. Social
Policy & Administration ISSN 01445596 Vol.
41, No. 7
[5] Mishra & Bhagat (2007). Principles for
successful implementation of labor welfare
activities from policy theory to functional
theory.
http://www.tesionline.com/intl/indepth.jsp?id=
575 Sabarirajan,
[6] Meharajan & Arun (2010). A study on the
various welfare measures and their impact on
QWL provided by the Textile Mills with
reference to Salem District, Tamil Nadu, India.
Asian journal of management research vol
ISSN 2229 _ 3795 Padhi P K. Labour and
Industrial Laws , 4th edition. PHI Learning
Private Limited New Delhi.
[7] http://www.icgujarat.gov.in

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