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ournal of Business Management & Social Sciences Research (JBM&SSR) ISSN No: 2319 ‐5614 Volume 2, No.2, February 2013 _________________________________________________________________________________

www.borjournals.com Blue Ocean Research Journals 57

Provision Of Welfare Under Factories Act & Its ImpactOn Employee Satisfaction

Parul P Bhati, Research scholar, Karpagam University, Coimbatore, Assistant Professor, MBA (HR), IDS,

Nirma University, Ahmedabad, GujaratDr.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 onemployee satisfaction towards welfare facilities under the act. This includes the study of 50 employees fromeach of the company i.e. Jyoti CNC, Rajoo Engineering, Steel Cast, Atul auto & Amul industries making a totalsample size of 250 employees. In our study we measured the impact of welfare provisions on employeesatisfaction by way of the correlation technique and we also measured that whether any difference in terms ofemployee satisfaction towards welfare provision exists by way of using one way Annova test.

Key Terms:Worker, Washing Facility, First Aid, Canteen, Crèches, Appropriate Government.

1.INTRODUCTIONThe Engineering sector is the largest in the overallindustrial sectors in India. It is a diverse industrywith a number of segments, and can be broadlycategorized into two segments, namely, heavyengineering and light engineering. The engineeringsector is relatively less fragmented at the top, as thecompetencies required are high, while it is highlyfragmented at the lower end (e.g. unbrandedtransformers for the retail segment) and isdominated by smaller players.Gujarat contributes to over 8% of India‘s totalengineering output, and is home to severalindustrial units with operations across the entireengineering value chain over 300 units in largesector and over 75,000 units in Small and mediumenterprises (SME) sector (excluding repair andservices). Major production base for sponge iron,steel pipes and tubes, copper cathode, electrical,switchgear, transformer and transmission linetowers, heavy fabrication, ship building and autocomponents. 30 out of the 83 product clusters in

the State are dedicated to engineering and autosector.Major engineering clusters in Gujarat includefoundry, ship breaking, induction furnace industry,steel re-rolling mills, brass parts, oil engines,fabrication and machine tools, auto componentsand SS utensils Hindalco‘s copper smelting andrefining complex at Dahej in Bharuch District isthe world‘s largest copper smelter at a singlelocation 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 & Porbandaretc. Each of these districts has specialties for themanufacturing of the different engineering products. The main concentration of engineeringindustry in Saurashtra region is Rajkot & it is verywell supported by other district. Besides SaurashtraKutch region is also enriched with the industriesmanufacturing saw pipes, Steel Bars & componentsof wind mill.

DISTRICT SPECILAITY MAJOR PLAYERSRajkot Auto components, Diesel Engine, CNC

machinery, Casting productsAmul auto, Kadvani forging, Jyoti CNC, Rajooengineering, P M Diesels, Forge & Forge, RolexBearing

Bhavnagar Rerolled steel, castings Steel cast, Investment & Precession castings limitedJamnagar Brass Parts Rajhans Mtal Pvt.ltd, Trupti Brass

2.LITERATURE REVIEWA Sabarirajan, T.Meharajan, B.Arun (2010) intheir study of the Cotton Textile plays a vital rolein human life. Textile industries are one of theimportant industries of India for earning Foreign

Exchange and giving employment to lacks ofworkers .Because of being a highly labor intensiveindustry it needs to concentrate more in the area ofemployee welfare. In this study we selected SalemDistrict in Tamil Nadu, India for identifying





various methods and also to identify theeffectiveness of the methods. The study shows that15% of the employees are highly satisfied withtheir welfare measures. 22 % of the employees aresatisfied with their welfare measures.39% of theemployees is average with their welfare measures.16% of them are in highly dissatisfied level.Welfare measures plays important role in employeesatisfaction and it results in improved quality ofwork life. This study throws light on the impact ofwelfare measures on QWL among the employeesof textile mills in Salam district.B D Singh (Industrial Relations and LabourLaws)Excel (2008) Edition This legislation is being enforced by technical officers i.e. Inspectorsof Factories, Dy. Chief Inspectors of Factories whowork under the control of the Chief Inspector ofFactories and overall control of the LabourCommissioner, Government of National CapitalTerritory of Delhi. The Factories Act, is a social

legislation which has been enacted for occupationalsafety, health and welfare of workers at work places. In India the first Factories Act was passedin 1881. This Act was basically designed to protectchildren and to provide few measures for healthand safety of the workers. This law was applicableto only those factories, which employed 100 ormore workers. On the basis of therecommendations of the Factory LabourCommission, more comprehensive Law wasintroduced in 1911, which got amended in 1923,1926 and 1931 With the amendments made byRoyal Commission of Labour (1931),Comprehensive Factory Act, 1934 was introduced.

Shobha Mishra and Dr Manju Bhagat (2007) intheir article discuss labour welfare activities in anindustrialized society has far reaching impact notonly on the work force but also all the facets ofhuman resources. Labour welfare includes all suchactivities, which not only secures existentialnecessities but also ensures improvement inspiritual and emotional quotient. It comprises ofshort term and long terms goal toward building ahumane society. As labour welfare is a dynamicconcept, changes in its principles activities and therationale supporting them have not been static.They closely follow the stages of advancement ofthe industrialized society – from police Theory to

Functional Theory. Accordingly principles forsuccessful implementation of labour welfareactivities ranges from adequacy of wages to impacton efficiency as well as transformation of personality in nut shell, it is extension ofdemocratic values in an industrialized society.Kwong-leung Tang and Chau-kiu Cheung(2007) studies that employs survey data from1240welfare recipients in Hong Kongto investigate theeffectiveness of various measures for raising therecipients‘ work motivation and diminishing their

welfare dependency. The measures examinedinclude the Intensive Employment AssistanceProject (IEAP), Community Work (CW) Programand Disregarded Earnings (DE) arrangements.Findings reveal the effectiveness of these threemeasures. Particularly, help received from variousservices of the IEAP was the principal factor in theeffectiveness of the IEAP and the IEAP waseffective for welfare recipients who were older orless skilled. The findings thus offer support to thegenerality of the claim about the effectiveness ofwelfare-to-work programs.C. P. John (2004) studied in the paper the largegaps existing between the rich and the poor and theunorganized workers and the organized workershave led in several countries to attempts at providing social and economic security to the poorand to the unorganized sectors. In Kerala, theintroduction of modern techniques of productionand the growth of capitalist production relations

had important implications for the traditional craftsas well as craftsman in Kerala. One of itsimplications has been the breakdown of theconventional social security set-up. Craftsmen inKerala belonged to a specific caste group, namely,Kammala or Viswakarma. The social securitysystem among craftsmen was embedded in the craftand caste traditions and practices. The customs and practices of the craft as well as of caste groupswere eroded in the processes of change thattransformed caste-based occupational traditionsand the social structure itself.

3.RESEARCH METHODOLOGY3.1 RESEARCH PROBLEM Welfare provisionsof Factories Act 1948 are important as far as thenature of the work in the engineering industries isconcerned. It may happen that the employeesworking in the engineering industry are notsatisfied with the welfare provisions providedunder Factories Act 1948. ― So our study will aimat studying the satisfaction level of theemployees.3.2 OBJECTIVES OF RESEARCH1. To review the welfare provisions extended to theemployees in Jyoti CNC, Rajoo engineering, steelcast, 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. AlternateHypothesis (Ha): The welfare provisions &employee satisfaction are unrelated. This





hypothesis is tested by considering each & everywelfare provisions individually.Hypothesis for comparing satisfaction levelamong all five companies due to welfareprovisions extended to employees. Null Hypothesis (Ho): There is no significance

difference in employee satisfaction among fivecompanies. Alternate Hypothesis (Ha): There issignificance difference in employee satisfactionamong five companies. This hypothesis is tested byconsidering each & every welfare provisionsindividually.3.4 RESEARCH DESIGNFor research we select the entire Engineeringindustry of Saurashtra region as population of ourstudy and select five engineering companies i.e.Jyoti CNC, Rajoo Engineering, Steel Cast, AtulAuto & Amul industries by judgmental sampling.

“From the above five companies we selectsample size of 50 employees from each of thecompany i.e. 250 as our total sample size of thestudy by simple random sampling.” The data iscollected using primary data collection toolquestionnaire.TEST APPLICATION: In our study we use

Correlation & One Way ANNOVA for ourobjective analysis. The test is conducted at 5%level of significance.4 DATA ANALYSIS &INTERPRETATIONOn the basis of data collected we got the followingoutcome. Data chart of welfare provisions co-relatewith employee satisfaction of five companies as below

.

Chart 2





Chart 3

Chart 4





5 HYPOTHESIS TESTINGFor identifying relation between the welfare provisions & employee satisfaction by applyingCorrelation 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): The Washing facility &employee satisfaction are un - related

.

Table 1

Washing Facilities Job Satisfaction

Highly satisfied 116 97

Satisfied 80 59Moderate 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 1From the above table Variable X: washing facility

Variable Y: Job satisfaction

This Correlation table shows there is positiverelationship between washing facility & employeesatisfaction & the inferred value is 0.977.

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





2. Storing & drying Facility Null Hypothesis (H o): The Washing facility &employee satisfaction are co – related.

Alternate Hypothesis (H a): The Washing facility &employee satisfaction are un - related.

Table 2

Storing & Drying Job Satisfaction

Highly satisfied 51 97Satisfied 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 facilityVariable Y: Job satisfaction

This Correlation table shows there is positiverelationship between storing & drying facility &employee satisfaction & the inferred value is 0.558.So the null hypothesis gets accepted & hence proved that the storing & drying facility &employee satisfaction are correlated.

3. Sitting Arrangement during work Null Hypothesis (H o): The sitting arrangementfacility & employee satisfaction are co – related.Alternate Hypothesis (H a): The sitting arrangementfacility & employee satisfaction are un - related.

Table 3

Facility for sitting Job Satisfaction


Satisfied 82 59

Moderate 143 67Dissatisfied 6 21


250 250

Facility for sitting Job Satisfaction

Facility for sitting 1 0.423138985


From the above table Variable X: sitting arrangement facilityVariable Y: Job satisfaction

This Correlation table shows there is positiverelationship between sitting arrangement facility &employee satisfaction & the inferred value is 0.423.So the null hypothesis gets accepted & hence proved that the sitting arrangement facility &employee satisfaction are correlated.

4. First Aid facility Null Hypothesis (H o): The First Aid facility &employee satisfaction are co – related.Alternate Hypothesis (H a): The First Aid facility &employee satisfaction are un - related.

Table 4

First Aid Job Satisfaction






Satisfied 82 59

Moderate 22 67

Dissatisfied 7 21


250 250

First Aid Job Satisfaction

First Aid 1 0.848305

Job Satisfaction 0.848305 1 From the above table Variable X: first aid facility

Variable Y: Job satisfaction

This Correlation table shows there is positiverelationship between first aid facility & employeesatisfaction & the inferred value is 0.848. So thenull hypothesis gets accepted & hence proved that

the first aid facility & employee satisfaction arecorrelated.

5. Canteen facility Null Hypothesis (H o): The canteen facility &employee satisfaction are co – related.Alternate Hypothesis (H a): The canteen facility &

employee satisfaction are un - related.

Table 5

Canteen Job Satisfaction


Satisfied 53 59

Moderate 15 67

Dissatisfied 5 21


250 250

Canteen Job SatisfactionCanteen 1 0.822544


From the above table Variable X: canteen facilityVariable Y: Job satisfaction

This Correlation table shows there is positiverelationship between canteen facility & employeesatisfaction & the inferred value is 0.822. So thenull hypothesis gets accepted & hence proved thatthe canteen & employee satisfaction are correlated.6. Shelters, lunch room, restroomFor comparing the level of the employeesatisfaction among these five companies due to

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

Table 6

Lunch room,restroom Job Satisfaction


Satisfied 151 59

Moderate 40 67

Dissatisfied 14 21






250 250

Lunch room,restroom Job Satisfaction

Lunch room,restroom 1 0.403177506Job Satisfaction 0.403177506 1

From the above table Variable X: shelters, lunchroom, and restroom facilityVariable Y: Job satisfaction

This Correlation table shows there is positiverelationship between shelters, lunchroom, restroomfacility & employee satisfaction & the inferredvalue is 0.403. So the null hypothesis gets accepted& hence proved that the shelters, lunchroom,restroom & employee satisfaction are correlated.7. Crèches 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 womenemployees.8. Welfare officer Null Hypothesis (H o): The welfare officer facility& employee satisfaction are co – related.Alternate Hypothesis (H a): The welfare officerfacility & 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 0.204941685Job Satisfaction 0.204941685 1

From the above table Variable X: welfare officer facilityVariable Y: Job satisfaction

This Correlation table shows there is positiverelationship between welfare officer facility &employee satisfaction & the inferred value is 0.204.So the null hypothesis gets accepted & hence proved that the welfare officer & employeesatisfaction are correlated.Comparing the level of the employee satisfactionamong Jyoti CNC, Rajoo engineering, Steel cast,

Atul auto & Amul Industires due to welfareprovisions.1. For washing facility. Null Hypothesis (H o): There is no significancedifference in the employee satisfaction due towashing facility given by company.Alternate Hypothesis (H a): There is significancedifference in the employee satisfaction due towashing facility given by company.

Table 8Washing 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





From the above test the calculated value which is0.0020 is less than tabular value i.e. 2.87 so our Null hypothesis gets accepted.So there is no

significance difference in the employee satisfactiondue to washing facility given by company.

Storing & drying Facility

Null Hypothesis (H o): There is no significancedifference in the employee satisfaction due tostoring & drying facility given by company.

Alternate Hypothesis (H a): There is significance

difference in the employee satisfaction due tostoring & 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

From the above test the calculated value which is0.0019 is less than tabular value i.e. 2.87 so our Null hypothesis gets accepted.So there is no significance difference in theemployee satisfaction due to storing & dryingfacility given by company.Sitting Arrangement during work

Null Hypothesis (H o): There is no significancedifference in the employee satisfaction due tositting arrangement facility given by company.Alternate Hypothesis (H a): There is significancedifference in the employee satisfaction due tositting arrangement facility given by company.

Table 10

Facility for sitting



Satisfied 60 68 56 64 80

Moderate 96 78 87 90 78



Source ofVariation 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





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

From the above test the calculated value which is0.0027 is less than tabular value i.e. 2.87 so our Null hypothesis gets accepted.So there is no significance difference in theemployee satisfaction due to sitting arrangementfacility during work given by company.

2. First Aid facility Null Hypothesis (H o): There is no significancedifference in the employee satisfaction due to firstaid facility given by company.Alternate Hypothesis (H a): There is significancedifference in the employee satisfaction due to firstaid facility given by company

.Table 11

First Aid

Jyoti Rajoo Steel Cast Atul AmulHighly satisfied 130 155 115 130 145

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

From the above test the calculated value which is0.0045 is less than tabular value i.e. 2.87 so our Null hypothesis gets accepted.So there is no significance difference in theemployee satisfaction due to first aid facility given by company.

3. Canteen facility Null Hypothesis (H o): There is no significancedifference in the employee satisfaction due tocanteen facility given by company.Alternate Hypothesis (H a): There is significancedifference in the employee satisfaction due tocanteen facility given by company.

Table 12

Canteen

Jyoti Rajoo Steel Cast Atul AmulHighly satisfied 200 180 145 195 165

Satisfied 24 40 68 24 56

Moderate 9 12 12 12 0








Between 14.24 4 3.56 0.0006 F(4,20)= 2.87

Within 116659.8 20 5832.99

Total 116674.04 24

From the above test the calculated value which is0.0006 is less than tabular value i.e. 2.87 so our Null hypothesis gets accepted.So there is no significance difference in theemployee satisfaction due to canteen facility given by company.4. Shelters, lunch room, restroom

Null Hypothesis (H o): There is no significancedifference in the employee satisfaction due toshelter, restroom & lunchroom facility given bycompany.Alternate Hypothesis (H a): There is significancedifference in the employee satisfaction due toshelter, restroom & lunchroom facility given bycompany.

Table 13

Lunch room,restroom


Highly satisfied 25 40 35 50 60Satisfied 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

From the above test the calculated value which is0.0009 is less than tabular value i.e. 2.87 so our Null hypothesis gets accepted.So there is no significance difference in theemployee satisfaction due to shelter, restroom &lunchroom facility given by company5. Crèches 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 womenemployees.6. Welfare officer Null Hypothesis (H o): There is no significancedifference in the employee satisfaction due towelfare officer facility given by company.Alternate Hypothesis (H a): There is significancedifference in the employee satisfaction due towelfare officer facility given by company.

Table 14

Welfare Officer



Satisfied 20 40 24 12 40

Moderate 108 87 90 129 99








Between 13.2 4 3.3 0.0017 F(4,20)= 2.87

Within 37461.27 20 1873.06

Total 37474.47 24

From the above test the calculated value which is0.0017 is less than tabular value i.e. 2.87 so our Null hypothesis gets accepted.So there is no significance difference in theemployee satisfaction due to welfare officer facilitygiven by company

6. IMPLICATION OF STUDYThis study can be implied in any of the industry asa tool for identifying the employee tendency & belief towards the welfare provisions. One canknow the requirement of the workers in terms ofdifferent non financial motivational tools byimplying this study. This study can be useful foridentifying the factors which leads to employeesatisfaction so that company can use those factorsas retention tool for retaining employees in theorganization.

7. LIMITATION OF STUDY1. Few of the respondents hesitated to give thecorrect information.2. Few respondents hesitated to give opinionagainst their management.3. The period of the study was limited.

4. The validity of the study depends up on thereliability 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 toinconsideration in our study i.e. Having less than30 no. of women employees leads to deduction ofthe organization from following the provision ofgiving Creches facility to women employees.

8.SCOPE OF FUTURE STUDYThis study can be used in future for analyzing thewelfare provisions & its impact on employeesatisfaction in different area as we had done inengineering industry. This study also can be takenas a reference for studying the other provisions ofthe different acts as well as of same act like provision for safety, health, etc. And can be studiedwith reference to employee satisfaction.

9. FINDINGS & SUGESSTIONSFrom our study of PROVISION OF WELFAREUNDER FACTORIES ACT & ITS IMPACT ON

EMPLOYEE SATISFACTION we suggest thatthe provisions provided to the employees in eachindustry should always be made more beneficiaryfor their welfare. So , for this each industry shouldappoint the welfare officer who can take better carefor the welfare facility of the employees in anindustry. From our study we have found out thatthe employees have positive attitude towards theirindustry for the welfare provisions.

10. CONCLUSION Our research study conclude in terms of provingthat the different welfare provisions provided to theemployees working in an organization underFactories Act 1948 are having positive relationwith the employee satisfaction. In our study afteranalyzing the Correlation between these twofactors gives the result. The reason behind thisresult is that these are the factors that lead tosatisfaction & if they are not present can sometimeslead to dissatisfaction i.e. on basis of Herzberg’stheory of motivation.Study also gives the outcome on basis of the OneWay Annova test that the welfare provisions givento employees in five companies i.e. Jyoti CNC,Rajoo Engineering, Steel Cast, Atul auto & Amul

Industries dose not have significant difference inthe employee satisfaction level.The reason behind the acceptance of hypothesis &getting the above result is that the companies underour study follows or provides more or less samekind of the welfare provisions to their employees.The companies who are giving the provisions totheir employees vary slightly. E.g. in canteen provision variation is in terms of the rate at whichthey provide food, the quality of food, test etc. Inthe same manner the shelter, restroom &lunchroom facility vary in terms of the location, itsambiance etc.

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The State and Informal Workers‘Organizations in India. American PoliticalScience Association Annual Meeting, Chicago,

Illinois[2] Frieda Fuchs(2005). The Effects of Protective

Labor Legislation on Women‘s Wages andWelfare: Lessons from Britain and France.





Journal of Politics & Society December 2005vol. 33 no. 4 595-636

[3] John (2004). Social Security and LabourWelfare with Special Reference toConstruction Workers in Kerala. Kerala

Research Program on Local Level Development, paper no 65. Kwong-leung Tangand

[4] Chau-kiu Cheung (2007). ProgramEffectiveness in Activating Welfare Recipientsto Work: The Case of Hong Kong. SocialPolicy & Administration ISSN 0144–5596 Vol.41, No. 7

[5] Mishra & Bhagat (2007). Principles forsuccessful implementation of labor welfare

activities from policy theory to functionaltheory.http://www.tesionline.com/intl/indepth.jsp?id=575 Sabarirajan,

[6] Meharajan & Arun (2010). A study on the

various welfare measures and their impact onQWL provided by the Textile Mills withreference to Salem District, Tamil Nadu, India.

Asian journal of management research vol ISSN 2229 _ 3795 Padhi P K. Labour andIndustrial Laws , 4th edition. PHI LearningPrivate Limited New Delhi.

[7] http://www.icgujarat.gov.in

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