CHAPTER 1

INTRODUCTION

1.1Importance of the topic selected

After the Industrial revolution in India, the more concentration was given on large scale
production. Most productive technologies used by the producer in India. Any organization
needs to achieve their goals by using resources like machine, money & most important
MANPOWER.

As a curtail part of production function it must require proper care. Human resource is
a very sensitive part in organization.

In Endurance Technologies Ltd. Chakan MIDC. My project was on “Labour Welfare

& Productivity”.

Employees are valuable asset of any organization. That is why provision of Labor
welfare facilities to employees gets more importance. Employee’s safety & welfare activities
affect on productivity of organization.
It has moral dimensions, too. It is unethical part of any management to take advantage
of the helplessness of workers & exploit them. Unemployment compels workers – particularly
illiterate & unskilled – to accept jobs, inhuman working conditions & niggardly wages, not
with standing.
Labor welfare & safety is a specialized function of human resource department.
Employee should feel healthy & safety at working place. One of its objectives is to project
workers interests and to improve their economic conditions. The labour welfare management
is very essential regarding best labour management along with their welfare.

Endurance faces the most critical problem of employee’s unsatisfaction about the labour
welfare facilities provided to the employees by the company which affect productivity.
 According to the survey and analysis of labour welfare and productivity of the Endurance, the
employees are not fully satisfied with the current facilities provided to them and seeking for
more benefits from organization. So to fulfill the employees demand it is necessary to analyses
& to improve labour welfare activities conducted by the organization.

In this project, I had studied the current labour welfare facilities provided to the
employees at the Endurance & analyses the effectiveness of current labour welfare department
to increase productivity.

Researcher tried to improve the satisfaction level of employees by suggesting

various labour welfare facilities .With the help of questionnaire & personnel discussion; with
the sample of employees I also checked the efficiency of new labour welfare facilities after
implementation of reviewed system.

IMPORTANCE OF THE STUDY:

 In industrial sector the implementation of “labor welfare & productivity” scheme program in
HR practice play a vital role such as:-
 In industrial sector the importance of “labor welfare & productivity” program can change or
flexible attitude towards researcher and other members.
 This study can help the future of researcher to get the knowledge of current labor welfare &
productivity program in industrial sector.
 The level of opportunities can able understands.
 It can help to additional innovation of “labor welfare & productivity” program.
 As a researcher it can be important to achieve the personal goal by improving interactive skills.
It will create more attention regarding to labor as asset

1.2 Selection of the Organization

This project report is the partial requirements of Master of Business Administration of Pune
University. The report has been done on study of Labour welfare & Productivity.

The main objective behind the selection of the such an organization particularly a

Company is that here we get a better understanding of the Labour welfare & Productivity.

In this project report, I have tried to highlight all the Labour welfare activities. The report
has following phases:-

1. To study labour welfare activities.

2. Suggestions which could be implemented to increase labour welfare facilities in the
factory.

1.3 OBJECTIVES OF STUDY:

 The primary objective of labor welfare & productivity is to maintain
congenial relations between employees and employer, to increase the production level &
working capacity of employee.

The other objectives are as following, to study various schemes & facilities provided
by the industrial sectors:-

 To study practical information and theoretical aspects of “LABOUR WELFARE &

PRODUCTIVITY” on the employees.
 To provide an opportunity to the workers to participate in the management decision making
 To improve workers strength with a view to solve their problem through mutual negotiation
and consultation with the management.
 To study expectation and impact of welfare and safety program on employees to improve
productivity.
 To provide labour welfare services to reduce absenteeism and promote better relation with their
employees.

SCOPE OF THE STUDY OF LABOR WELFARE &

PRODUCTIVITY:

The concept of welfare is necessarily dynamic, having a different interpretation from

country to country and from time to social institution, degree of industrialization and general
level of social and economic development. Even within the country its content may be
different from region to region.
The study of various report and various works, concludes that the following activities are
generally included under the scope of labor welfare & productivity:
1. Housing, medical, educational facilities.
2. Nutrition (including the provision of canteens).
3. Facilities for rest and recreation.
4. Holiday with pay
5. Social insurance measures undertaken voluntarily by employers alone or jointly with
workers including sickness, maternity benefit scheme, provident fund, gratuities and pension,
etc.

CHAPTER 2

THEROTICAL BACKGROUND

LABOUR WELFARE

INTRODUCTION:

"During the pre-independence period, industrial relations policy of the British

Government was one of laissez faire and also of selective intervention. There were hardly any
labour welfare schemes. After independence, labour legislations have formed the basis for
industrial relations and social security. These legislations have also provided machinery for
bipartite and tripartite consultations for settlement of disputes.

Soon after independence, the government at a tripartite conference in December

1947 adopted the industrial truce resolution. Several legislations, including the following, were
enacted to maintain industrial peace and harmony: Factories Act, 1948, Employees State
Insurance Act, 1948 and Minimum Wages Act, 1948. The payment of bonus act was passed in
1965.

In the early 1990s, the process of economic reforms was set in motion when the
government introduced a series of measures to reduce control on industries, particularly large
industries. The workers have opposed economic liberalization policy for fear of unemployment
while entrepreneurs have welcomed it in the hope of new opportunities to improve Indian
industries. The new economic policy has directly affected industrial relations in the country,
because the government has to play a dual role, one of protecting the interest of the workers,
and second to allow a free interplay of the market forces. Economic reforms, by removing
barriers to entry, have created competitive markets. Fiscal stabilization has resulted in drastic
reduction in budgetary support to the public sector commercial enterprises while exposing
these enterprises to increased competition from private sector.

“Welfare is a broad concept referring to a state of living of an individual or a group,

in a desirable relationship with the total environment – ecological economic and social. Labor
welfare includes both social and economic content of social welfare is primarily concerned
with the solution of various problems of the weaker section of society like prevention of
destitution and poverty. it aims at social development by such means as social legislation,
social reform social service, social work, social action. The object of economics welfare is to
promote economic production and productivity and through development by increasing
equitable distribution. Labor welfare is an area of social welfare conceptually and
operationally. It covers a broad field and denotes a state of wellbeing, happiness, satisfaction,
conservation and development of human resources.
Management is absolutely essential in the present times in all organization,
irrespective of their origin, nature and ownership. Every enterprise, established with a profit
motive or some social, religious or such like other purpose, requires efficient management for
its sustained progress. But, management has been viewed differently by various scholars,
depending upon their beliefs and comprehension. Some regard it as the force that runs a
business and is responsible for its success and failure. Other perceives it as a means for
achievement for desired result through group effort and by utilizing both human and
non-human resources.
Still others deem management to be a process comprising planning, organizing,
staffing, directing and controlling. Also some look on it as an instrument for designing and
maintaining an environment conducive to the performance of individuals who are working
together in a group towards accomplishment of some pre-determined objectives.
Furthermore, some think that management merely implies certain tasks which the managers
are supposed to perform. Thus, there numerous opinions on what ‘management’ actually
involve.
Adequate levels of earnings, safe and humane conditions of work and access to
some minimum social security benefits are the major qualitative dimensions of 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. Labour and Labour
Welfare sub-sector consists of six main programs viz. Labour Administration, Rehabilitation
of bonded labour, Assistance to Labour Cooperatives, Craftsmen training program,
Apprenticeship training program, Employment Services and Sanjay Gandhi Swavalamban
Yojana.

CONCEPT:
Labor welfare may be viewed as a total concept, as a social concept and as a relative
concept. The total concept is a desirable state of existence involving the physical, mental,
moral ad emotional wellbeing. These four elements together constitute the structure of
welfare, on which its totality is based. The social concept of welfare implies the welfare of
men, his family and his community. all these three prospects are interrelated and work
together in a dimensional approach. The relative concept on welfare implies that welfare if
relative in time and place. It is a dynamic and flexible concept and hence its meaning and
concept differ from time to time, region to region, industry to industry, and country to
country depending upon the value system, level degree of education, social customs, and
political system, degree of industrialization and general standard of the socio economic
development of the people.
Labor welfare implies the setting up of minimum desirable standard and the
provision of facilities like health, food, clothing, housing, medical assistance, education,
insurance, job security, recreation, and so on. Such facilities enable the workers and his
family to lead a good work life, family life and social life. Labor welfare also operates to
neutralize the harm full effect of large scale industrialization and urbanization.

DEFINITION:
According to Oxford dictionary defines labor welfare as “Effort to make life worth
living for workmen”.

According to R.R Hopkins “Welfare is fundamentally and attitude of mind on the part of
management, influencing the method by which management activities are undertaken”.

SCOPE OF LABOR WELFARE:

The concept of welfare is necessarily dynamic, having a different interpretation from
country to country and from time to social institution, degree of industrialization and general
level of social and economic development. Even within the country its content may be
different from region to region.
The study of various report and various works, concludes that the following activities are
generally included under the scope of labor welfare:
1. Housing, medical, educational facilities.
2. Nutrition (including the provision of canteens).
3. Facilities for rest and recreation.
4. Cooperative societies.
5. Day nurseries and crèches.
6. Provision of sanitary accommodation.
7. Holiday with pay
8 Social insurance measures undertaken voluntarily by employers alone or jointly with
workers including sickness, maternity benefit scheme, provident fund, gratuities and pension,
etc.

PRINCIPLES OF LABOR WELFARE:

The following are some of the principles to be kept in mind for successful
implementation of any welfare program in an organization
1. The labor welfare activities should pervade the entire hierarchy of an org. Management
should be welfare oriented at every level
2. The employers should not bargain labor welfare as a substitute for wages or monetary
incentive.
3. The employers should look after the welfare of his employees as a matter of social
obligation
4. There should be proper coordination, harmony and integration of all labor welfare services
in an undertaking
5. The labor welfare work of an organisation must be administratively valve and essentially
development oriented.

BENEFITS OF LABOR WELFARE:

Most of time, Indian entrepreneurs brand Indian Labor as lazy, inefficient and least
productive. “One of the major determinants of the productivity is the quality and quality of
labor”. Quality of labor depends primarily upon its health and nutrition, literacy and social
values and customs. Poor diets and because of unsanitary conditions, inadequate disease
prevention and lack of medicines and medical care, they have an adverse bearing on their
efficiency.
According to Labor Investigation Committee, there are three main benefits of labor
welfare activities:

(a) Educational facilities, sports, entertainment, etc. make the worker feel that the employer
is interested in their day-to-day life and therefore, their tendency to grouse and grumble will
gradually disappear.

(b) Housing, canteens, sickness and maternity benefits, provident fund, gratuity, pensions,
etc. make the worker feel that they have a stake in the industry as much as anyone else has.
 (c) Provisions of good and clean food in the canteens improve their health, entertainment
reduces the incidence of vices, medical and maternity benefits free the workers of worries.
Objectives of Labor Welfare:

Improvement in the quality of labor, productivity, skills and working conditions and
provision of welfare and social security measures, especially of those working in the
unorganized sector, are crucial elements of the strategy for quantitative and qualitative
enhancement of employment opportunities.
The programmers in the sector " Labor and Labor Welfare', therefore, lay emphasis on
skill formation and development strengthening and modernization of employment service,
promotion of industrial and mines safety, workers' education, promotion of self-employment,
rehabilitation of bonded labor, enforcement of labor laws especially those relating to
unorganized labor and women and child labor, promotion of a healthy industrial relations
situation and encouragement of workers' participation in management.

LABOUR RESEARCH AND TRAINNING:

V.V. Giri National Labour Institute, a fully funded autonomous body of the Ministry
of Labour, conducts action-oriented research and provides training to grass root level workers
in the trade union movement, both in the urban and rural areas, and also to officers dealing with
industrial relations, personal management, labour welfare, etc.

- Dynamics of Labour Market: Kerala.

- Women and labour Market.

- Labour laws, contractual parameters and conditions of construction workers.

- Adverse sex ratio and female labour force participation.

- Wage determination in rural labour force markets.

- Information on requirements for rural labor.

 INDUSTRIAL HYGIENE PROVISION:
Hygiene working environment plays an importance part in the maintenance of good
health among the workers. The term ‘Hygiene’ includes not only material environment but
also personal hygiene.
There are following hygiene such as;

1. Personal hygiene

2. Eating & drinking

3. Smoking

4. Skin hygiene

5. Working clothes
6. Hygiene education

Occupational Health Services:

The occupational health plays a key role of prevention, treatment of health problem
and adaptation of work to the worker. Its wide range of activities take two main forms:
supervision of worker’s health, including action to maintain health at the highest possible
level, and supervision of the working environment, is including the necessary step to
eliminate source of hazard. The operating conditions of occupational health services and even
the conception of their role have, however, changed considerably over the years the need is
increasingly felt for a multi-disciplinary approach in evaluating and preventing risks.
Specialists such as the safety engineer, industrial hygienist and ergonomics are called upon to
co-operate actively with the occupational health physician.

Occupational Hazard:

1. Heat and cold

2. Light
3. Noise and vibration.
4. Ultra violet radiation and ionizing radiations
5. Silicosis
6. Asbestosis.
7. Bioassays.
8. Coal miner and pneumoconiosis.
9. Telegraphic current.
10. Byssinosis.

INDUSTRIAL HYGIENE DEPARTMENT:

Industrial hygiene department generally deals with those hazards which are likely to
cause an occupational disease. These are
1. Thermal environment which may cause heat exhaustion, heat stroke, heat cramp, or frost
bite
2. High or low atmospheric pressure, such as is encountered by divers, tunnel workers and
astronauts.
3. Mechanical vibrations such as those caused by air hammer
4. Electromagnetic and ionizing radiation.
5. Noise which may cause auditory damage and nervous tension.
6. Skin diseases which are cause by such irritants as acid, solvents, bases, the like

LABOR WELFARE ACT’S:

1. Factory Act, 1948.

2. Mines Act, 1952, and mines rules
Plantation and labor Act 1951.
3. The motor transport workers Act 1961.
4. Contract labor Act 1970.
5. Merchant shipping Act 1958.
6. Dock workers (safety, health and welfare) scheme 1961.
7. Interstate migrant workmen Act 1979

VOLUNTARY WELFARE MEASURE:

There are certain employers especially in the organized sector of industry, who have
promised a wide variety of welfare amenities and services to their employees. A brief account
of such welfare measures as given;

1. Educational facilities
2. Medical facilities
3. Transport facilities
4. Housing facilities
5. Recreational facilities
6. Consumer co-operatives societies
7. Welfare work by worker’s organization

LABOR WELFARE FUNDS:

1. Center wise labor welfare fund
A. Mica mines labor welfare funds
B. Iron ore, manganese ore and chrome ore labor welfare funds
C. Lime store and dolomite mines labor welfare funds
D. Cess rates under labor welfare funds
2. State wise labor welfare funds
A. Bombay labor welfare funds
• Recreation
• Community and social education
• Health provision
• Special programmes
B. Gujarat labor welfare funds
C. Karnataka labor welfare funds
D. Punjab labor welfare funds
E. Assam tea plantation employee welfare funds
F. U.P. industries labor welfare development funds
G. Karla toddy worker welfare funds
PUBLIC ENTERPRISE REFORM:
Public Enterprises embody a major national capability in terms of physical,
financial, institutional and human resources. Their effective utilization can lead to significant
economic growth. In the framework of the new Economic Policy, Public Sector industry has
an important role as an autonomous, competitive and efficient sector, to provide essential
infrastructure goods and services, development of natural resources and areas of strategic
concern. A positive and productive future awaits public sector industry. To reach that goal,
considerable restructuring is involved. The Eighth Plan recognizes this and proposes a major
public sector reform initiative. This initiative will consist of the following integrated
strategies:
i. restructuring involving modernization, rationalization of capacity, product-mix changes,
selective exit and privatization is needed on a massive scale, to make public enterprises
viable, efficient and competitive.
ii. Increase in autonomy and performance accountability of public enterprises is critical to
make them a dynamic force. The system of Memoranda of Understanding between
administrative ministries and central public enteritis’s which has been launched in the
Seventh Plan has these objectives in its design. However, its effectiveness needs to be
improved.
iii. Changes in management practices at specific enterprise level to promote efficiency,
dynamic leadership, resourcefulness and innovation are needed.
iv. State level public enterprises have serious problems. Interference, lack of professionalism
and ad-hoc investment and employment decisions has resulted in chronic sickness of many of
them. A major effort is called for, in collaboration with the State Governments, to promote
reforms in them.
v. In the changing economic environment, technology will be a major tool to improve
competitiveness and efficiency of public enterprises. Their capability to develop import and
use technology effectively or, to integrate technology in their corporate strategies (expansion,
diversification, marketing etc.) is weak now. The new reform initiative needs to address this
through building active linkages among R & D laboratories educational institutions and
public enterprises. This is vital in the emerging inter-dependent and globalizing.
vi. The organization of Government (Ministries and agencies) for public sector has
historically grown in a certain manner. Presently many regulations (price, distribution,
investment and import controls) are being dismantled. This liberalization not only calls for re-
structuring of enterprises but also of the Government in the governance of industrial growth
and management inter-face with the enterprises. A new institutional capability is needed in
Government that is responsive to environmental change, professional and can facilitate
operation of market forces, through orchestri-sation of the efforts of various (R&D,
education, engineering, manufacturing, trade, etc.) organizations towards priority targets in
select areas, by building a consensus and partnership among the different stakeholders.

The above call for a positive public sector reforms, by designed, selective and
targeted interventions. The reform initiative needs to include: creating a knowledge base for
reform, generating an institutional capability and developing a consensus among the
stakeholders about policy goals and implementation strategies.
A network of institutions (academic, government, industry, consulting firms, financial
institutions and international organizations) needs to be organized to design and implement
the reforms. A coordinated strategy through a high powered task force is needed to mobilize
the resources for achieving the objectives * reforms in the Eighth Plan period.
A THEORY OF LABOR WELFARE:
1.The policy theory
This theory assumes that man is selfish by nature. Therefore, an employer will leave no
stone unturned to exploit the labor, if he is not forced to introduce some welfare measures.
This theory thus leads to enactment of various labor welfare laws, periodical supervision to
ascertain that the laws are implemented and punishment to the employers who do not obey
the laws. In this theory the main emphasis is on the fear and not on the spirit of labor welfare
which perhaps is the most important factor.
2. The Religious theory
Here the employer is concerned primarily with his own welfare because he
introduces labor welfare measures either as an investment for attainment of good in his life or
next or as atonement for his sins.
3. The Philanthropic Theory
According to this theory, man’s love for mankind is the guiding factor of labor
welfare.
4. The Trusteeship Theory
This theory has a paternalistic approach. Here employer has a moral responsibility to
look after the interests of their wards who are the workers. Therefore, labor welfare measures
are the outcome of moral responsibility.
5. The Placating Theory
 It is believed that the labor groups are becoming more and more demanding and
aware of their rights. Therefore, their demands cannot be ignored. According to this theory,
timely and periodical acts of labor welfare can appease the workers. These are some kind of
pacifiers which come with a frequent gesture. Sincerity may lack in these programmes though
this content can be bought-off in this manner.
6. The Public Relations Theory
As per this theory, labor welfare programmes work as a sort of advertisement and
help the industrialists to build up good and healthy public relations.
7. The Functional Theory
Here labor welfare is introduced to secure, preserve and develop the efficiency and
productivity of labor. This theory is a reflection of contemporary support for labor welfare.
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 levels of earnings, safe and humane conditions of work and access to some
minimum social security benefits are the major qualitative dimensions of 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.
Labor welfare is the key to smooth employer-employee relations. In order to
increase labor welfare, Employers offer extra incentives in the form of labor welfare
schemes, and to make it possible to pursued workers to accept mechanization. Sometimes the
employers to combat the influence of outside agencies on their employees use labor welfare
as a tool to minimize the effect they may have on the labor. Labour welfare measures are also
initiated with the view to avoiding payment of tax on surplus and to build up at the same time
better relations with employees.

There are some theories which constitutes the conceptual frame framework of the labor
welfare, describe these theories. Several theories constituting the conceptual framework of labor
welfare have so far been outlined these are-
WELFARE:

Washing facilities:

(1) In every factory- (a) Adequate and suitable facilities for washing shall be provided and
maintained for the use of the workers therein; (b) Separate and adequately screened facilities
shall be provided for the use of male and female workers:

(c) Such facilities shall be conveniently accessible and shall be kept clean.

(2)The State Government may, in respect of any factory or class or description of factories or
of any manufacturing process, prescribe standards of adequate and suitable facilities for
washing.

Facilities for storing and drying clothing:

The State Government may, in respect of any factory or class or description of factories,
make rules requiring the provision therein of suitable places for keeping clothing not worn
during working hours and for tile drying of wet clothing.

Facilities for sitting:

In every factory suitable arrangements for sitting shall be provided and maintained
for all workers obliged to work in a standing position, in order that they may take advantage of
any opportunities for rest which may occur in the course of their work. If, in the opinion of the
Chief Inspector, the workers in any factory engaged in a particular manufacturing process or
working in a particular room are able to do their work efficiently in a sitting position, he may,
by order in writing, require the occupier of the factory to provide before a specified date such
setting arrangements as may be practicable for all workers so engaged or working. The State
Government may, by notification in the Official Gazette, declare that the provisions of sub-
section (1) shall not apply to any specified factory or class or description of factories or to any
specified manufacturing process.

First-aid appliances:
There shall in every factory be provided and maintained so as to be readily accessible
 during all working hours first-aid boxes or cupboards equipped with the prescribed contents,
and the number of such boxes or cupboards to be provided and maintained shall not be less
than one for every one hundred and fifty workers ordinarily employed 1[at any one time] in
the factory. Nothing except the prescribed contents shall be kept in a first-aid box or
cupboard. Each first-aid box or cupboard shall be kept in the charge of a separate responsible
person 3[who holds a certificate in first-aid treatment recognized by the State Government]
and who shall always be readily available during the working hours of the factory.]

In every factory wherein more than five hundred workers are 5[ordinarily employed]
there shall be provided and maintained an ambulance room of the prescribed size, containing
the prescribed equipment and in the charge of such medical and nursing staff as may be
prescribed 6[and those facilities shall always be made readily available during the working
hours of the factory].

Canteens:-

The State Government may make rules requiring that in any specified factory
wherein more than two hundred and fifty workers are ordinarily employed, a canteen or
canteens shall be provided and maintained by the occupier for the use of the workers.

Without prejudice to the generality of the foregoing power, such rules may provide for-

 Ins. by Act 25 of 1954, sec. 9.

 Subs. by Act 25 of 1954 sec. 9, for sub-section (2).
 Subs. by Act 94 of 1976, sec. 21, for certain words (w.e.f. 26-10-1976).
 Sub-section (3) re-numbered as sub-section (4) by Act 25 of 1954, sec. 9.
 Subs. by Act 94 of 1976, sec. 21, for "employed" (w.e.f. 26-10-1976)
 Ins. by Act 94 of 1976, sec. 21 (w.e.f. 26-10-1976).

The date by which such canteen shall be provided;

The standards in respect of construction, accommodation, furniture and other equipment of
the canteen:
The foodstuffs to be served therein and the charges which may be made therefore;
The constitution of a managing committee for the canteen and representation of the
workers in the management of the canteen;
The items of expenditure in the running of the canteen which are not to be taken into
account in fixing the cost of foodstuffs and which shall be borne by the employer; The
delegation to the Chief Inspector, subject to such conditions as may be prescribed, of the power
to make rules under clause (C).

Shelters, Rest rooms and Lunch rooms:

In every factory wherein more than one hundred and fifty workers are ordinarily
employed, adequate and suitable shelters or rest rooms and a suitable lunch room, with
provision for drinking water, where workers can eat meals brought by them, shall be provided
and maintained for the use of the workers:

Provided that any canteen maintained in accordance with the provisions of section 46
shall be regarded as part of the requirements of this sub-section:

Provided further that where a lunch room exists no worker shall eat any food in the
work room. The shelters or rest rooms or lunch rooms to be provided under sub-section (1)
shall be sufficiently lighted and ventilated and shall be maintained in a cool and clean condition

The State Government may:

Prescribe the standards in respect of construction, accommodation, furniture and other

equipment of shelters, rest rooms and lunch rooms to be provided under this section: By
notification in the Official Gazette, exempt any factory or class or description of factories from
the requirements of this section.

Creches:

In every factory wherein more than thirty women workers are ordinarily employed there
shall be provided and maintained a suitable room or rooms for the use of children under the
age of six years of such women.

 Ins. by Act 94 of 1976, sec. 22 (w.e.f. 26-10-1976).

  Subs. by Act 94 of 1976, sec. 23, for "fifty women workers" (w.e.f: 26-10-1976).
Such rooms shall provide adequate accommodation, shall be adequately lighted and ventilated,
shall be maintained in a clean and sanitary condition and shall be under the charge of women
trained in the care of children and infants.

The State Government may make rules:

Prescribing the location and the standards in respect of construction, accommodation

furniture and other equipment of rooms to be provided under this section; Requiring the
provision in factories to which this section applies of additional facilities for the care of children
belonging to women workers, including suitable provision of facilities for washing and
changing their clothing;

Requiring the provision in any factory of free milk or refreshment or both for such
children; requiring that facilities shall be given in any factory for the mother of such children
to feed them after every necessary interval.

Welfare officers

In every factory wherein five hundred or more workers are ordinarily employed the
occupier shall employ in the factory such number of welfare officers as may be prescribed. The
State Government may prescribe the duties, qualifications and conditions of service of officers
employed under sub-section (I). Manpower, employment policy and labour welfare in India:
post-independence developments:

Many researches has been done in the following themes, such as

1. Manpower: trends and magnitude.

2. Employment policies and programs

3. Labor welfare: legal framework and initiatives.

4. Women workers: legislations and empowerment.

5. Industrial relations and labour laws.

6. Restructuring of labour laws: the great debate.

7. Labour laws and welfare: India and ILO.

8. Labour reforms: India and WTO. II. India's Five Year Plans at a glance. III. Edited extracts
from India's Five Year Plans on employment and labour related matters (I plan to X plan
including mid-term appraisal of the X Plan).Conclusion and Main Thrust Areas

(i) Modernization of Existing Trades,

(ii) Maximum utilization of Existing Infrastructure,

(iii) Creating facilities for Training of Instructors,

(iv) Creation of Post of Training and Placement Officer to facilitate placement of ITI
pass-outs and to promote better interaction with industries.

(v) Implementation of Government decision to established ITIs at each Taluka and

promotes women’s Participation in C.T.S. training.

(vi) Creation of additional Training facilities in the popular trades under Apprentice
ship Act, 1961.

(vii) Creation of INTERNET facilities to develop better MIS

Power makes rules to supplement this Chapter.

The State Government may make rules- Exempting, subject to compliance with such
alternative arrangements for the welfare of workers as may be prescribed, any factory or class
or description of factories from compliance with any of the provisions of this Chapter;

Requiring in any factory or class or description of factories that representatives of the

workers employed in the factory shall be associated with the management of the welfare
arrangements of the workers.
PRODUCTIVITY:

Definition:

Productivity is about how well an organization converts resource inputs into goods
or services. Workplace productivity is about how firms can utilize labor and skills, innovation,
technology and organizational structure to improve the quantity and quality of their output.
Basically it's about exploring all the ways that can make a working environment more efficient

Why is productivity important?

• Basis for improvements in real incomes and economic well-being.

• Monetary policy (inflationary pressures)

• Fiscal policy (financing of health, education, welfare)

• Slow productivity growth = conflicting demands for distribution of income more likely
 Improving Employee Productivity:
Knowledge Level: Novice, Keywords: employee, productivity.

It is conceivable for you to have more employees than the competition yet your
company produces less and for you to have disgruntled, low-output employees even though
you pay your employees more than the competition pays theirs. Productivity surveys and case
studies indicate that increased worker motivation and satisfaction can increase worker output.
Progressive, innovative managers now achieve productivity gains with human resource
management techniques that go beyond pay incentives.

This Guide discusses how to increase worker output by motivating with quality of work
life concepts and by tailoring benefits to meet the needs of employees. Cost: enlightened
human resource management probably costs no more than employee turnover (hiring and
training new employees), unwarranted pay increases, and low productivity. Benefit: better
productivity; loyal, efficient workers; higher quality work, and increased likelihood of staying
in business.

The essence of employee motivation and effectiveness is the manner in which they are
managed. A direct relationship exists between effective management (i.e., providing a work
environment that simultaneously achieves company goals and employees' goals) and modern
human resource management.

Your management success is judged by your skill and knowledge in recognizing and
assessing issues that concern employees and by your ability to resolve these concerns with
employee help and satisfaction.

 Do your employees know how you judge and measure their performance?
 Do you provide and encourage individual development with training and educational
programs?
 Do you trust your employees and rely upon their knowledge?
 Do you let employees make decisions?

Do you have timely, accurate, open two-way communication with your employees?
 If you answer no to all of these questions, you probably are an unsatisfactory human
resource manager and have (or will have) employee-productivity problems.

Flexible Benefits:
Compensation costs - salaries, wages, and benefits - are a large and
increasing part of operating expenses; yet, productivity can decline among workers who get
more pay and benefits. Workers are productive with fair pay tied to performance. Ironically,
not all employee motivation and productivity problems are solved by pay raises and
promotions. It isn't necessary to make pay adjustments beyond a fair industry-wide (market
place) level.

The tailoring of benefits to satisfy specific needs is part of the quality of work life
technique. It is a way to maximize the amount of labor costs going to the employee and to
maximize your return on these costs without increasing across-the-board expenses. By making
a special effort to satisfy individual employee needs, you reinforce the motivational value of
the flexible benefit.

For example, you can reduce unwanted employee turnover and related recruiting,
hiring, and training costs by shifting these costs from developing new employees to keeping
experienced employees. You can motivate an employee to increase productivity by providing
opportunities for career development (training or schooling).

At the same time you have improved the worker's skills and shown recognition of the
worker's value and aspiration. A tailored benefit can be worth as much to an employee as a
pay raise. Such a benefit is practical because (1) it probably costs no more than worker unrest
and diminished productivity and (2) it is probably less costly than a comparable pay increase.

Age, education, job experience, job fulfillment, marital status, and family size are
considerations that determine the utility and attractiveness of a benefit. Different benefits
appeal to different people. Everyone's needs are different. A younger employee might be
motivated by having use of a company car. An older person may want more status like a title
or a professional association membership. The list of possible employee’s benefits and their
applications is nearly unlimited. To get the maximum value, you've got to tailor the benefit to
the job and your business requirements and financial capability.

Salary Compression:
Ralph is an experienced employee. You think he is good but he is complaining that
his salary is not enough. You're puzzled and angry because you gave him a raise and a cost
of living increase a month ago and the salary is competitive. Ralph seems ungrateful and his
output is down. After talking with Ralph, you learn that he feels he should be paid more than
Ed, a new employee. You hired Ralph two years ago at $62,000, a year. He's now making
$68,500. But Ed was just hired at $66,000. Ralph thinks he should have more to show for his
two years experience compared to Ed, who is younger with no experience.

You realize that starting salaries have gone up at a faster rate than regular pay increases.
Attracting educated employees was competitive. Result: the difference in pay got smaller
between experienced and less experienced employees. This is called salary compression.

Your experienced employees don't like it. They will react negatively, slowing down
and looking for another job, another promotion, or another raise. In this situation you could
recognize Ralph's experience, tenure and value with flexible benefits.
Using quality of work life techniques to motivate and to reward employees can result in
productivity gains. The ultimate goal, of course, is to achieve the maximum result from the
least effort, the greatest profit for the least cost, the largest output from the smallest input.
To work toward this goal you've got to know how productive your company is. Thus, you
must define and measure productivity for comparison from time to time.

Productivity Measurement:
Definitions of and ways to measure productivity vary. A basic way to express
productivity is productivity equals output divided by input i.e., productivity is the ratio of
output to input, or simply output over input. The quantity of output is measured in units
produced, dollars of sales, or any term that suits your need. The quality of output is
measured by workmanship, adherence to standard, and absence of complaints. Input is
measured by labor costs, hours worked, and number of employees. To be useful, measures
must be as simple and as consistent as possible.

A simple and understandable method of productivity measurement is to divide total

sales (output in dollars) by total compensation costs (input). Increases and prices are accounted
for automatically; however, you must adjust for inflation. To compare productivity measures
in different years, pick a base year and give it an index of 100. Then figure your ratio of
compensation to sales and with that number calculates the index and compare the fluctuation
of the indexes.

Using output over input, you can measure any activity and employee. A typist's
productivity can be measured in terms of numbers of pages typed, a salesperson by number of
customer calls or amount of sales. When deciding how and what to measure, consider what a
person does, how well, how much, and how often.

The indexes measure the productivity increases and decreases that indicate changes in
your company's performance. You need these measures so that you can set goals and priorities,
know where you stand, are motivated by objective reasons - by numbers, not subjective
feelings, and have a common basis of communication with employees, bankers and
consultants.

Chancing the Change:

For many, if not most, company’s adoption of quality of work life and flexible benefits
management techniques can dramatically change how things are done. It is difficult and
risky to make these changes; however, such changes may be not only necessary but also the
difference between companies that are competitive and companies that aren't. Experience
shows that with proper consultation, planning, training, and implementation the innovative
human resource management concept is becoming the standard for effective management.

The Work Environment and Employee Productivity:

Creating a work environment in which employees are productive is essential to

increased profits for your organization, corporation or small business. Principles of
management that dictate how, exactly, to maximize employee productivity center around two
major areas of focus: personal motivation and the infrastructure of the work environment.

One of the key factors in leveraging human resources to produce the most is found through
motivational incentives. While the most obvious incentive for increasing employee
productivity is often thought to be based on salary and promotions, this is not always the case.
In fact, recent thought on the true nature of optimal human resource management has
concluded that in a large number of cases, salary has less to do with motivation than do other
important factors.

What are these factors that influence employee productivity?

To begin with, it is important to recognize the truly human element in workplace

relations. Step back and think for a moment—what makes people work harder? Is pay the
strongest motivating force in the workplace?

Many experts have noted that workers while on the job do not produce more simply
because they are being paid more. After all, it is not expected that employees will constantly
calculate the monetary value of every action they perform. Workers, for instance, do not keep
a record of how much they earn every time they send out an email, approve a document or
complete some other task. It’s just not human nature.

How to motivate employees?

What motivates good employees is the ability to see projects through to their
completion. While the actual process of monitoring this flow may be the specific task of one
employee—a project manager—it is important for this employee to, in turn, recognize that
every employee involved in the workflow should be able to see the finished product once it is
complete, and gain an understanding of his or her importance in the project as a whole.

In addition, a motivating work environment must be one in which employees are treated
fairly. No matter what level of input a particular worker has in relation to the business processes
as a whole, it is essential for a manager to give each employee a sense of playing a dynamic,
integral role in something much larger. Indeed, engendering loyalty is a key element of
motivating workers and thereby increasing the overall productivity of operations.
The power of praise
One important tool for motivating employees is praise. Effective project managers
must learn how to cultivate this powerful method of worker motivation. While oftentimes
largely ignored by managers in the workplace, this can be an extremely useful method of
giving an individual worker a sense of worth in relation to the actual work being done. Praise
has, in countless examples, been shown to dramatically increase productivity.

Setting Goals
In addition to praise, another important factor includes setting goals that correspond to
the actual work being done. Realistic objectives are able to ensure that timeliness and work
quality combine, and that the employee can still feel ready for the next project once the
original one has been completed.

Disciplinary guidelines in the workplace

Creating disciplinary guidelines is also instrumental to fostering a work environment
that is productive. After all, motivation doesn’t always have to be positive. If workers are not
faced with consequences for poor performance, then productivity margins can easily shrink at
a devastating rate. While everybody’s worse fear is that they will lose their job, one of a
manager’s worst fears is that he or she will lose valuable talent. Instead of letting employees
go who might potentially turn around and perform well under the right conditions, a manager
must be creative when it comes to finding other ways to penalize workers who bring down
productivity.

Generally, however, the value of consequences is not found in implementing them, but
in establishing them so that the behaviors that would ultimately require their implementation
simply don’t arise. It should also be mentioned that a manager will want to focus his or her
workers primarily on positive reinforcement. Creating a system of tangible rewards is
fundamental to

The office environment

In addition to a healthy level of communication and personal motivation in the
workplace, the actual physical layout of an office is extremely important when it comes to
 maximizing productivity. While many managers and business owners choose to suffice with
a certain minimum level of office accessories, they may be ignoring what can amount to a
major obstacle on the path to increasing employee productivity.

Make sure that quality employees are given a workspace that they can call their own.
Whether it’s an office, cubicle or even a desk in open space, there should be a high level of
importance place on helping workers foster a sense of “place” in your company. Along with
this place, office managers should ensure that equipment is ergonometric and sound.Indeed, it
has been found that a productive work environment requires management that is able to
positively motivate its employees in an infrastructure that is amenable to employees’ needs.

 FOLLOW THESE EFFICIENT WAYS TO IMPROVE YOUR PRODUCTIVITY AT

WORK:

Do you feel short of time to improve your productivity at work? It is quite possible to find
extra time in your day to improve your productivity at work.

This can be simply done just by reorganizing the way, which you consider to complete your
tasks that fall under your responsibility.

Apart from reorganizing the way of fulfilling your tasks, it is very essential for you to
improve certain things to put your best in your job.

There are many areas of your working life where you can make necessary
improvements to put more effort in your work. Here are some of the efficient ways to improve
your productivity at work:

Improve communication skill!

Communication is one of the most efficient tools to achieve success in any kind of
business or job. So, try to concentrate more on your communication skills. When you are
communicating with your staff or clients, ensure that all your instructions and information is
clearly understood by the other person. So, keep clarity as number one objective for your
effective communication and try to work on it.

Prioritize your tasks!

Jumping around from one task to other, without completing anyone can end up with a
feeling that you have accomplished none in your day. So, each morning try to make out the list
of things, which you have to achieve and prioritize them in the order of importance. This will
ensure that you are spending most of your time and energy on those tasks that are extremely
important for you.

Delegate your work!

If you have staff employed to help you, assign some of your routine tasks, which you
can quickly instruct someone else to take the responsibility of those essential tasks.

But, always remember to communicate the instructions effectively and clearly. Ensure
that they understand it clearly, before you leave the responsibility on them.

Take a break!

Too much stress or continuously working on specific task can reduce your productivity
levels. Try to take a break, whenever it is required. You can practice certain quick stretches at
your workplace to get immediate energy or relief from stress.

If you feel overstressed or decreased productivity level at your job, take a day of vacation
which can make your mind fresh and accordingly increase your productivity level.

Improve your time-management skills!

If you feel that you lack effective time management skills, explore different ways to improve
your time management skills and implement those effective ways in your routine life. Time
management plays a vital role in increasing your productivity levels at work. Never try to
ignore them. If you really want to improve your productivity levels at your work and gain
success in your career, implement these effective ways and become a source of inspiration for
your co-workers.
 How to Improve Employee Productivity: Appreciation and Incentives

Here are Some Great Ways to Motivate Employees

By J. Eguchi

In order for businesses to succeed, management must keep a close eye on the bottom line.
One of the many factors that directly affect a firm's profitability is employee productivity, so
it makes sense to try to increase output whenever possible. For some tried-and-true tips that
will help you motivate any staff member to give his best, I recommend you pick up a copy of
Leading the Way.

Here are some ideas to help get your workforce motivated to consistently
perform at high levels.

1. Implement a piecework compensation plan.

One of the best ways to improve employee productivity is to create a direct link between
output and pay by implementing a piecework compensation plan. In a piecework compensation
plan, there are no hourly wages. Instead, employees get paid according to how many parts they
assemble, how many sales they make, how many hours they bill, etc. This won't work for every
industry, but if your employees' productivity can be easily quantified, then you might want to
consider switching over to this kind of plan.

2. Promote from within.

When you show employees that you are committed to promoting from within, you'll be
giving them even more incentive to increase their productivity and improve their overall
performance. This is one of the best ways to increase employee motivation. Nobody likes to
believe that they are stuck in a dead-end job or that their efforts will go unnoticed. If your
employees can see that their hard work might pay off in the form of a promotion, they'll be more
inclined to give it their all day in and day out.
3. Ensure that your employees have good equipment.

In many instances, employee productivity is limited by the equipment they are forced to
use. If your plant is filled with 20-year-old machinery that constantly needs attention from the
maintenance crew, or if your office contains slow, outdated computers, then you're not giving
your employees a fair opportunity to be productive. Giving your workers the best supplies
possible also shows employee appreciation because you're demonstrating that you understand
what is needed for them to get the job done.

4. Consider profit-sharing.

In order to get employees to care about the direction your company is taking, it might
be necessary to give them a personal stake in the outcome. This can be accomplished by
introducing a profit-sharing plan in which employees receive a set percentage of any profits
realized by the firm. The better the company does, the more money employees receive above
and beyond their base salaries.

5. Hand out achievement awards.

In addition to financial incentives, many employees are motivated by the need for social
recognition. That's why giving achievement awards to outstanding employees is an excellent
way to improve productivity. Achievement awards typically take the form of plaques, jackets,
certificates, prizes, or even special parking spaces, and are handed out to employees who meet
certain performance standards. You can also make these employee rewards, such as allowing
the employee who received the award to wear jeans one day or take a longer lunch break.

6. Provide adequate breaks.

As counter-intuitive as it may sound, providing employees with adequate breaks is

essential for improving overall productivity. Break time not only gives employees something
to look forward to, but also gives them a chance to recharge their batteries before diving back
into work. More often than not, they'll come back refreshed and ready to focus for another
couple of hours until the next break.

Now you know how to improve employee productivity. Start thinking about what
employee incentives will work for your office and your workers. And don't worry, there are
 way to motivate employees without spending money, so there should be no excuse why you
can't implement some sort of employee incentive programs.

Productivity Surveys:

Improving productivity sometimes can just be a matter of a company getting out of its
own way. As people strive to receive promotions, there is a natural tendency for new policies
and practices to be established. Sometimes, these new policies and practices improve
productivity and the bottom line; sometimes they are at odds with productivity and profits. A
practice that improves productivity initially can detract from it later on as the business model
and company undergo change. Anything that gets in the way of workers' abilities to produce
quality products and services efficiently must be carefully examined. The barriers to
productivity are many. Examples include:

 Improper training,
 Out-of-date tools/equipment,
 Overemphasis on centralized decision making,
 Politics causing different parts of the organization to pull in different directions,
 Incentives that reward maintenance of the status quo or that reward unproductive e
employees as much as productive ones,
 Excessive risk aversion,
 Improper productivity measurement,
 Ignoring or not soliciting employee input.

Our productivity survey identifies barriers to productivity in place at an organization.

Sometimes these productivity barriers are common throughout a company; sometimes different
barriers are at work in different departments. In any case, we will give you the information and
guidance you need to tactically target the barriers that are impeding your organization from
being more productive.
 CHAPTER 3

Company Profile
ENDURANCE was established in 1985 as Anurang Engineering Co. Ltd.
to manufacture Aluminum Die Casting products at Aurangabad, Maharashtra
(India). The Endurance Group is a global force in Aluminum Casting (including
Alloy Wheel), Suspension, Transmission and Braking products with an annual
of 551 Million (INR 2,978 Crores) from domestic operations and approx. 162
Million (INR 875 Crores) from overseas operations for the year 2012-2013.
Endurance Group has 19 Plant across India, Italy & Germany.

ENDURANCE is a Name that spells strength and the will to perform.

Their core business is focused on becoming the component partner of choice for
leading Automobile Manufacturers. Assisted by a strict quality regime, a
constant interaction with customers and an eye on emerging needs, they have
carved a distinct niche to cater to the world’s leading Automotive Manufactures.

On the strength of their experience and the depth of their Technological

Expertise, they have now geared up to launch themselves on the high growth
global circuit.
Main Product of the Company:

 2-Wheeler, 4-Wheeler machining aluminums parts.

 Suspensions.
 Transmissions.
 Brake Systems.

CASTING

PAINTING

MACHINING

CHEAKING/Q.A

DISPATCH
 ENDURANCE, part of Corporate India’s leading Automotive Business Houses, has
created three entities which have a holistic approach and capabilities that include Designing,
R&D and Manufacturing.

A total of 18 plants at prominent location in India & 8 plants in Europe.

Manufacturing Plants in India:

 9 plants at Aurangabad, Maharashtra.

 5 plants at Pune, Maharashtra.

 1 plant at Manesar, Haryana.

 1 plant at Chennai, Tamil Nadu.

 2 plants at Pantnagar, Uttarakhand.

 1 plant at Sanand, Gujarat.

Manufacturing plants Overseas:

 Italy.

 Germany.

R& D Centers:

 3 R&D Centers at Aurangabad, Maharashtra (for Suspension, Transmission &

Breaking)

 1 R&D Center at Pune, Maharashtra (for Casting)

Objectives & Goals of the Company

In the last 3 decades, the automobile industry has undergone a huge
technological transformation and it has been our endeavor to constantly develop
products, that meet the discerning demands of the constantly evolving market.
 From Aluminum Die Castings to a whole range of proprietary products that
include Suspension, Transmission and Brake Systems, we have expanded our
product portfolio across domestic as well as international markets while
maintaining high quality standards and are constantly innovating and creating
new products that are backed by intense research, stringent quality controlled
processes and continuous after sales follow up with our customers.

Each new product drives us further to make Endurance Technologies one of the
most preferred automotive component partner.

 Mission:
To achieve and maintain leadership with focus on Technology & Product
Reliability, Environment and Safety through a participative work culture of
transparency and ownership.

 Goals:

 To be present in every two-wheeler in the world.

 Philosophy:

To ensure profitable growth. Endurance to be a first-choice supplier to all

its OEMs.

 Vision:

To grow as a complete solution provider of automotive components

and system having a global foot- print in our chosen product
portfolio.

 Purpose:

Contunous value creation for customers, Employees, Investors,

Vendors and all other stakeholders.
 Organization Structure

M.D

PRESIDENT

DGM (OPERATION)

HR& PURCHAS PAINT MACHINE Q.A MAINT. TOOL

ADMIN E SHOP SHOP ROOM

MANAGE ASST. ASST. ASST. D.M MANAGE SR.

R MANAGE MANAGE MANAGE (Q.A) R ENGINEER
R R R

ASST. EXECUTIVE SR. SR. SR. EXECUTIVE

MANAGE ENGINEER ENGINEER ENGINEER
R

EXECUTIVE Officer ENGINEER ENGINEER ENGINEER ENGINEER

Officer O.E G.T.E O.E O.E O.E

Superviso CELL O.E CELL

r MEMBER MEMBER
 Functional Structure of HR for Machining Division

Managing Director

Chairman

Sr. VP (Casting Division)

VP (Operations- SBU Casting Pune)

VP (Strategic HR & Admin)

HR Manager

Executive

Sr. Supervisor

Personal & Administration Policy

Sr.No Category Grade Total
1 President M8
2 Sr. Vice President M7A
3 Vice President M7B 1
4 General Manager M6
5 Deputy General Manager M5A
6 Asst. General Manager M5B 2
7 Senior Manager M4 6
8 Manager M3 4
9 Dy. Manager M2 3
10 Asst. Manager M1 5
11 Executive E 15
12 Sr.Officer/ Engineer O2 21
13 Officer/ Engineer O1 41
14 Operating Engineer OE 47
15 Sr. Supervisor S4 3
16 Jr. Supervisor S3 7
17 Sr. Staff S2 3
18 Jr. Staff S1 9
19 Sub. Staff SS 14
20 Workman/Team Members TM 42
21 Trainees T 89
 Manpower :
For the posts of M1 to M8 there are 21 members. There are 77 employees for
the posts form E to O1. There are 214 employees working for the posts from
OE to T. The total number of employees working in Machining division in
Pune is 312.

 Office Timing:
The office timing is divided in different shifts so as to produce the parts in
given

Time. The shift timing is as follows:

 General Shift: 9.00 am to 5.30 pm.

 First Shift: 7.00 am to 3.30 pm.

 Second Shift 3.30 pm to 11.30 pm.

 Third Shift 11.30 pm to 7.00 am.