ANNA UNIVERSITY - HRM

1. Welfare and Social
Security Measures
UNIT-5,TOPIC-7
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Unit - V HRM/R.Banu rekha, AP/MBA/Welfare and Social

2. Meaning & definition of Employee
Welfare
Employee welfare means “the efforts t
o
make life worth living for workmen.
According toTodd
“employee welfare means anything done
for the comfort and improvement,
intellectual or social, of the employees
over and above the wages paid
which is not a necessity of the industry.
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Unit - V HRM/R.Banu rekha, AP/MBA/Welfare and Social

3. Features of Employee Welfare
 Employee welfare is a comprehensive term
including various services, facilities and
amenities provided to employees for their
betterment.
 The basic purpose in to improve the
standard of working class.
 Employee welfare is a dynamic concept.
 Employee welfare measures are also
known as fringe benefits and services.
 Welfare measures may be both
voluntary and statutory
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Unit - V HRM/R.Banu rekha, AP/MBA/Welfare and Social

4. Objectives of Employee Welfare
Employee welfare is in the interest of the
employee,the employer and the society as a
whole.The objectives of employee welfare are:
* It improves the loyalty and morale of the
employees.
* It reduces labor turnover and absenteeism.
* Welfare measures help to improve the
goodwill and public image of the
enterprise.
* It helps to improve industrial relations and
industrial peace.
*It helps to improve employee productivity
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Unit - V HRM/R.Banu rekha, AP/MBA/Welfare and Social

5. Agencies of Employee Welfare
 1. Central government: -The central government has made elaborate
provisions for the health,safety and welfare under
Factories Act 1948, and MinesAct 1952.These acts provide
for canteens, crèches, rest rooms, shelters etc.
 2. State government: - Government in different states and Union
Territories provide welfare facilities to workers.State government
prescribes rules for the welfare of the workers and ensures
compliance with the provisions under various labor laws.
 3. Employers: - Employers in India in general looked upon welfare
work as fruitless and barren though some of them indeed had done
pioneering work.
 4.Trade unions: - In India,trade unions have done little for the
 welfare of workers. But few sound and strong unions have been the
pioneering in this respect.E.g. the Ahmedabad textiles labor
association and the Mazdoor sabha,Kanpur.
 5. Other agencies:- Some philanthropic, charitable d social service
organizations like: - Seva Sadan society,Y.M.C.A., etc
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Unit - V HRM/R.Banu rekha, AP/MBA/Welfare and Social

6. Types of Employee Welfare
 * Intramural: - These are provided within the
organization like: -
1. Canteen,
2. Rest rooms,
3. Crèches,
4. Uniform etc.
 * Extramural: - These are provided outside the
 organization, like: -
 1. Housing,
 2. Education,
3. Child welfare,
4. Leave travel facilities,
5. Interest free loans,
6. Workers cooperative stores,
7. Vocational guidance etc.
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Unit - V HRM/R.Banu rekha, AP/MBA/Welfare and Social

7. Types of Employee Welfare
 1.Statutory welfare work - comprising the legal
provisions in various pieces of labor legislation.
 2.Voluntary welfare work - includes those activities
which are
undertaken by employers for their voluntary work.
Different ways of Social Security Provision in India
 3. Social Insurance- common fund is established with periodical
contribution from workers out of which all benefits in terms of
cash or kind are paid.The employers & state prove major portion of
finances.Benefits such as PF, Group Insurance etc are offered.
 4. Social Assistance- Benefits are offered to persons of means
by govt out of its general revenues. Eg- Old age pension
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Unit - V HRM/R.Banu rekha, AP/MBA/Welfare and Social

8.  5.Social Security Employee Welfare
-Medical care
- Sickness benefit in cash
- Old age pension or retirement benefit
- Invalidity pension
- Maternity benefit
- Accident benefit
- Survivor’s benefit
 Art 41 0f Indian constitution says that “ the state shall
within the limits of its economic capacity &
develepment, make
 effective provision for security ,
 the right to work,
 to education & to public assistance in cases of
unemployment,
 oldage, sickness & disablement
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9. Role of Management in Employee Welfare
 Organizations provide welfare facilities to their employees
to keep their motivation levels high.The employee
welfare schemes can be classified into two categories viz.
statutory and non-statutory welfare schemes.
 The statutory schemes are those schemes that are
compulsory to provide by an organization as compliance
to the laws governing employee health and safety.These
include provisions provided in industrial acts like
Factories Act 1948, Dock Workers Act
(safety,health and welfare) 1986, Mines Act 1962.
 The non statutory schemes differ from
organization and from organisation to
organisation industry to industry
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Unit - V HRM/R.Banu rekha, AP/MBA/Welfare and Social

10. Employee Welfare
 STATUTORYWELFARE SCHEMES
 The statutory welfare schemes include the following provisions:
 DrinkingWater
 Facilities for sitting
 First aid appliances
 Canteen facilities
 Spittoons
 Lighting
 NON STATUTORY SCHEMES
Personal Health Care (Regular medical check-ups):Some of the
companies provide the facility for extensive health check-up
 Flexi-time: The main objective of the flextime policy is to provide
opportunity to employees to work with flexible working schedules
 Employee Assistance Programs:Various assistant programs are
arranged like external counseling service so that employees or
members of their immediate family can get counseling on various
matters.
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Unit - V HRM/R.Banu rekha, AP/MBA/Welfare and Social

11. Impact of Welfare on Productivity
 The welfare measures aim at integrating the socio-
psychological needs of employees, the unique requirements of
a particular technology, the structure and processes of the
organization and the existing socio- cultural environment.
 It creates a culture of work commitment in organizations and
society which ensure higher productivity and greater job
satisfaction to the employees.
 Due to the welfare measures, the employees feel that the
management is interested in taking care of the employees that
result in the sincerity, commitment and loyalty of the
employees towards the organization.
 The employees work with full enthusiasm and energetic
behavior which results in the increase in production and ultimately
the increased profit.
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Unit - V HRM/R.Banu rekha, AP/MBA/Welfare and Social

12. I L O’s Employee Welfare
 ILO has suggested welfare funds on a collective basis
to finance activities in small undertakings.
 It has adopted a number of convections &
recommendations regarding industrial accidents &
occupational health.
 New dimension to welfare activities has been provided by
ILO’s contribution to family welfare & population
education prog among industrial workers in organised
sector in India
 It has rendered exemplary service to all 3 elements
composing it
– govt, employees & workers.
 It has greatly influenced labour legislation, labour welfare ,
trade unionism & Industrial Relations in India
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