Geethu HR Project

1.
1 THEORETICAL BACKGROUND OF THE TOPIC
Employee welfare is a comprehensive term including various services,

benefits and facilities offered to employees by the employers. Welfare includes
anything that is done for the comfort and improvement of employees and is
provided over and above the wages. The welfare measures need not be in monetary
terms only but in any kind/forms. Employee welfare includes monitoring of
working conditions, creation of industrial harmony through infrastructure for
health, industrial relation, insurance against disease, accident and unemployment
for the workers and their families.
Initially, humanitarianism or social awareness motivated labour welfare

activities. Driven by the desire for greater efficiency and output and with a view to
attract better workers, employers offer extra incentives in the form of labour
welfare schemes. The objectives that lie behind labour welfare schemes are often
complex for human nature and varies from person to person. Labour welfare
measures are undertaken with a view to avoid payment of tax on surplus and
building up better relations with employees.
Social justice and human dignity are the prime concerns of International
Labour Organization which was set up on April 19, 1919 to look at ways and
means to improve labour conditions. This objective is enshrined in the ILO
constitution. It reaffirms that the war against want requires to be carried out
withvigour within each nation and by continuous and concerted international effort
in which the representatives of the workers and employees enjoying equal status
with those of governments join with them in free discussion and democratic
decisions with a view to the promotion of the common welfare.
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Objectives of Welfare
To promote economic development by increasing production and

productivity.
Improving the efficiency of labour
To secure the labour with proper human conditions of work and living
To provide some of lifes basic amenities, besides the basic pay packet, such
as overture of caring which help in building sense of loyalty on the part of
the employee towards the organization
The humanitarianism approach has given way to a more practical utilitarian
approach. The utilitarian approach views investment in welfare through an
economic framework where the possible cost benefit to the organization gains
greater concern through improved or quicker services from the employees.
The welfare package by taking care of the basis of living, frees the worker to
devote his time and attention to the organizations task and thus enhance efficiency
and output. An attractive package, which provides benefits throughout the course
of an employees career, serves to attract and retain the better workers and
simultaneously enhance their moral. The organization is also eligible to certain tax
concession by spending on welfare.
Why Welfare?
In India, welfare is of statutory and non-statutory nature. Though statutory
welfare ensures a bare minimum of facilities and reasonably good working
condition, employers are free to provide, non statutory welfare. However,
practically all organizations in India provide non-statutory measures in varying
degree.
From the view point of workers, welfare measures must eliminate risk and
insecurity. This is to ensure their personnel safety and provide them with the
equipment and atmosphere needed to draw a fair days wage without any feeling of
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guilt. By taking care the workers economic constraints, probably due to large
families, organizations should provide facilities such as transport, medical aid,
crches, and subsidized food required by the worker.
The role of unions in welfare has also been influenced by the socio-political
and legal environment and the economy. Their role in labour welfare stems from
the workers need for welfare services apart from those available to them as
citizens and membersof the community. Therefore unions feel that such services
ought to be providing either by the Government or employers. However much
depends on the initiative of the unions, their bargaining strength and the priority
given by them to the rights of the workers. In organizations where unions have
been assertive, welfare activities have been considerable, while in organized sector
workers have been able to derive sufficient benefits from their employers.
Employers provide amenities to discharge their social responsibility raise the
employeesmoral, which help in increasing the effectiveness of the work force,
andreduce turnover and absenteeism. Employee welfare benefits not only raise
employee morale but make it easier for employees to attract and hire competent
personnel. Welfare helps in building a positive image about the organization.
Classification of Labour Welfare
Statutory Welfare Measures
Non Statutory Welfare Measures
Statutory welfare amenities

It includes all activities undertaken under the provisions of law, passed by
central and state government for general welfare of workers, which are compulsory
provisions relating to the living condition, minimum wages, sanitary conditions,
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hours of work, lighting etc. The employees are legally bound to adapt welfare
measures under different employee legislation.
Employee Welfare Amenities: Intra-Mural

Welfare Measures
The act also obligates the organization to provide certain amenities,
described in 9 sections of the Act, for example, facilities for washing, drying and
storing of cloths; sitting facilities for employees working in a standing position;
first aid boxes and trained medical practitioner for every 15-workers; a canteen
where there are more than 250 workers; crches if there are more than 30 women
workers and sufficiently lighted and ventilated shelters if there are 150 or more
workers (sections 42 and 28). The statutory welfare measures are:
1. Washing facilities (Section 42)
In every factory,
a) Adequate and suitable facilities shall be provided and maintained for the use of
the workers.
b) Such facilities can be conveniently accessible and shall be kept clean.
2. Facilities for storing and drying cloths (section 43)

The state government may make rules requiring the provision of suitable
places for keeping clothing of workers not worn during working hours and for the
drying of the wet clothing in respect of any factory or class of factory.
3. Facilities for sitting (Section44)
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In every factory, suitable arrangements for sitting shall be provided and
maintained for all workers who are obliged to take advantage ofany opportunity for
rest, which may occur in the course of their work.
4.First-aid appliances (Section44)
Every factory should providefirst-aid boxes,which is readily accessible
during all working hour. First-aid boxes or cupboard equipped with the prescribed
contents, and the number of boxes or cupboards to be provided and maintained
shall not be less than one for every one hundred and fifty workers ordinarily
employed at any one time in the factory.
5.Canteen (Section 46)
The state government has specified that, in any specified factory where in
more than 250 workers are ordinarily employed; a canteen shall be provided and
maintained by the occupier for the use of the workers.
6.Shelters, rest room and lunch rooms (section 47)

In every factory where in more than one hundred and fifty workers are
ordinarily employed, adequate and suitable shelters and a rest room 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.
7.Crches (Section 48)

In every factory specific number of women is ordinarily employed, they
shall be provided and maintained a suitable room or rooms for the use of children
under the age of six years. Such room shall be adequately lightened and ventilated,
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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.
8. Welfare Officers (Section 48)

In every factory where in 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 Governmentmay also prescribe the duties,
qualifications and conditions of service of officers employed.
Working Hours for Adults

The Act stipulates that no adult worker should be allowed to work for more
than 48 hours per week. Daily working hours should not exceed nine and the total
number of hours spent in a factory not more than 10/12 hours inclusive of rest
pauses (Sections 51,54 and 56). Rest intervals of half an hour should be provided
between five hours of work (Section 55).
Employment of Women and Young Persons

Women workers are not to be employed during the night shift. However,
rules can be made providing exemption to this rule (Section 66).
No child below 14 is to be employed in any factory (section 67). A child
who has completed 14 year has to be certified fit for work by a surgeon.
Annual Leave with Wages

A worker who works for 240 days is allowed an annual leave with wages at
the rate of one day for every 20 days of work. Annual leaves can be accumulated
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up to 30 days for adults and 40 days for children (Section 79 (5). The annual leave
pay is to be paid at the rate average to the daily wage immediately preceding the
leave. This will include basic and other allowances except bonus and overtime
(section 80).
Non Statutory/Voluntary Welfare Measures
Voluntary employee welfare measures include those activities undertaken by
the employers voluntarily without any pressure from the government. This is
intended for increasing the efficiency of workers. Non statutory employee welfare
includes all the additional activities undertaken by the employers for their workers
welfare.
Employee Welfare Amenities: Extra Mural

1. Educational Facilities
Educational facilities for the children of the workers are very important and
therefore it must be provided to them.
2. Medical Facilities
Employers, whether in private or in public sectors have been providing medical
facilities for their workers and their families. Besides general medical treatment
and health care, separate arrangements for special treatments for diseases such as
TB, cancer, leprosy and mental diseases.
3. Transport facilities
Transportation facilities to workers residing at far off distances are essential to
relieve them from the strain and anxiety. Such facilities also provide a greater
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opportunity for relaxation and recreation and also help in reducing the rate of
absenteeism.
4. Housing
Recommendation 115 of the ILO states that housing should be a matter of
national policy. Both the Indian Industrial Communication (1913) and Royal
Communication realized the importance and necessity of improving housing
condition of industrial workers and suggested various measures. In 1944, the
Labour Investigation committee reviewed housing conditions in principal urban
areas and found industrial housing far from satisfactory. The subsidized housing
scheme for industrial workers was extended to the working section of the
community also. It also applied to workers under section 2 (1) of the Factories Act,
whose wages: did not exceed Rs.300 per month.
5. Recreation Facilities
Though there is no statutory provision in the sphere, a good example has
been set by many progressive employers both in the public and private sectors like
the Tatas, Hindustan Lever, TELCO, Mill Owners Association (Bombay),
Hindustan Steel, Air India, BHEL, LIC, the Railway and the Defence services to
name a few. This is in contrast to the situation 25 years ago, when the provision of
facilities for recreation, sports and cultural activities was made reluctantly. Today,
employers take pride in the extra-curricular achievements of their workers and it is
often a prestige issue. The facilities provided for recreation, broadly speaking, are
determined by the resources available for this purpose in the enterprise and the
importance accorded to it by the employer. However, the recreational facilities
available to industrial workers are much better organized than that to the disposal
of an average citizen. This facility is sometimes provided at the workplace or on a
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community basis. However, they are obligatory in plantations. Excursions can also
be organized with the expenses shared by the state and employers, youth clubs are
formed for the encouragement of deserving sportsmen, writers and artists among
the workers.
Allied Welfare Measures:

Co-operative and Saving Facilities
Co-operative consumer stores are important to industrial workers as they are
the only way in which workers can try and safeguard to some extent, the real
purchasing power of their money and prevent the erosion of their wages. The co-
operative and credit movement also helps the workers to save unforeseen domestic
crisis. A committee was set up by the national co-operative Development and
Warehousing Board to suggest measures for the development of the co-operative
movement. The Committee recommended a pattern of organization and structure
and made suggestions with regard to finance, techniques and management of co-
operation. It felt that it should be made obligatory for employers and industrial
undertaking to introduce consumer co-operative stores in all industrial
establishments including plantations and mines employing 300 or more workers.
The employer was to give assistance in the form of share capital, working capital
loan, free accommodation and other amenities.
Some of the Acts in India
The factories Act, 1948
Workmens Compensation Act, 1947
The industrial Disputes Act, 1947
The employees State Insurance Act, 1948
Employees Provident Fund Act, 1952
Employees Family pension Schemes, 1971
Payment of Gratuity Act, 1972
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Central Government Health Scheme, 1954
The Factories Act, 1948

The factories act, 1948, was conceived in 1881 when legislation was enacted
to protect children and to provide health and safety measures. In 1911, the working
hours were regulated and incorporated in the Act. In 1934, following the
recommendations of the Royal Commission of Labour, the act was amended. A
more comprehensive legislation to regulate working conditions replaced the Act in
1948.
Workmens Compensation Act, 1923
This was the first social security legislation; passed in 1923, to provide
employment injury compensation related to the extent of the injury or death, which
states that the employer is not responsible if a workman sustains his injuries under
the influence of drugs, drinks and so on.
Maternity Benefit Act, 1961
Coal Mines Provident Fund & Bonus Scheme Act, 1948
The Seamans Provident Fund Act,1966
The Plantation Labour Act, 1952
The Industrial Disputes Act, 1947

It is the only measure which provides relief to the workers in case of
unemployment and it is applied to all workers employed in any industry.
Compensation for lay off and retrenchment are paid by the employer in any
industrial undertaking if they have worked for a year or more. A worker is entitled
to compensation at the rate of 15 days of average earnings. Compensation in the
case of closure is payable at the same rate, but it is due to circumstances beyond
the employers control, compensation is limited to a maximum of 3 months average
earnings.
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The EmployeesState Insurance Act 1948
The scheme is a pioneering attempt by the government to provide medical
facilities and unemployment insurance during illness of industrial workers. The
scheme is administrated by the ESI Corporation, a tripartite body of government,
employees and employers.
Employees Provident Fund Act, 1952
The EPF scheme framed under the Act is administrated by a tripartite
central board, consisting of representatives of employers, employees, central and
state governments. It applies to all factories and other establishment falling under
any notified industry and employing20 or more workers. The PF is refunded with
interest in the event of death, permanent disability, superannuation, retrenchment,
migration or on living services. On retirement or after 15 years of service, a worker
receives his own share and the employers contribution. All PF accumulations are
invested in government and other guaranteed securities, according to the pattern
specified by the central government. Depending on the earnings of these
investments, interest is allowed to the workers annually, on the amounts of their
credits.
Employees Family Pension Scheme, 1971
As per the family pension scheme some monetary relief must be provided to
the family members of employees, who die in service that is before
superannuation, In the event of an employees death, his family gets pension on a
graded scale depending on the employees last salary grade.
Payment of Gratuity Act 1972
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The Act envisages providing a retirement benefit to the workmen who have
rendered a long and unblemished service to the employer and have thus
contributed to the prosperity of the employer.
1.2 INDUSTRY PROFILE
Global Scenario
Metal industries are the indispensable part of an economy, they form the
backbone of industrial development of any country. Metal industry has been at the
very epicenter of global economic movements over the last several years.
The position of the metal industry within the world economy
When measured by its share of GDP worldwide, the metal industry is an
important component of the world economy. In sub-branches such as for
example metal production,non-electrical machinery, electrical machinery and
transport equipment, it employs some 70million worldwide, who account for
nearly half of the goods produced in the manufacturing sector and more than half
of all merchandise exported worldwide (in terms of value).Consequently, the metal
industry is both a driving force of the world economy and is influenced
to a large extent by the overall world economic climate.
The importance of the metal industry
In 1996, companies in the metal industry produced 49% of global added value in
Manufacturing industry, which corresponded to 11% of GDP worldwide?The
Importance of the metal industry within the framework of the manufacturing
industry is extraordinarily large in all countries and parts of the world. However,
there are differences that depend on the level of development, i.e. the level of
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industrialisation and income levels in the countries. In the industrialised countries,
the share of added value in the manufacturing industry is slightly above average. In
North America and Japan, the metal industry accounts for over 50% of total
production by the manufacturing industry. In the developing countries,
the corresponding figure is considerably lower (36%)
Worldwide, some 70 million people are employed in the metal industry. In the
industrialised countries, this represents some 47% of total employment in the
Manufacturing industry and 18% of those gainfully employed overall. The
corresponding figure for Germany, i.e. 57%, is well above half of those employed
in the manufacturing industry. When we look at the metal industrys share of
employment and added value of total manufacturing and economy in the individual
regions, we see clearly that productivity in the metal industry, in comparison to
the manufacturing industry overall, is slightly higher than average but much lower
than in the economy as a whole. This is due on the whole to very high productivity
rates in the mining, energy supply and financial sectors.
Indian Scenario
Agriculture constitutes the backbone of Indian economy and in spite of

industrialization during the last four decades agriculture still occupies a significant
place. Agriculture accelerates the economic development for a very large
proportion of population, and creates capital for its own development. The surplus
can be used for investment in other productive sectors.
made available to the farmer.
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Implements in use
It is well known that agricultural production is the combined effect of a variety of

inputs like agricultural implements, fertilizers, irrigation, farm machinery, high
yielding varieties of seeds, etc. All these inputs, in one way or other, contribute to
increasing the productivity in agriculture. But these inputs become more effective
and their potential is better utilized if appropriate energy and power sources are
In India people generally use rude and imperfect implements in agricultural

operations. Most of these implements are simple in nature and are worked by
hand/animal power. They are in use in various part of India and are of different
shapes and sizes. The plough is the first and the most important equipment in
agriculture. It is used for ploughing and turning up the soil before the sowing is
performed.
In addition to this a number of hand-tools are being used for carrying out the
several farm operations and related works. One feature of the hand- tools is that
almost all of them need sufficient degree of human-power in their use.
It is to be noted that the nature of the soil has great influence in determining the
implements and hand-tools used by agriculturists. Different climate and soil
conditions in different regions necessitate the employment, of different
agricultural techniques and implements.
In other words, the features and power of implements must be suited to the
particular soil and climate. Thus implements differ from place to place. Though
effective for the purpose for which they are intended, they are simple clumsy and
inexpensive.
Among the hand-tools used the most popular are spade, Pick-axe, Hammer, Axe,
Felling knife, Sickles etc. Of all these implements, the spade is the most, popular
hand tool in use. It is locally called a Kaikot. It is used for digging operations in
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paddy fields. Beds are raised with the help of these implements. It is also used for
making basins for coconut, areca nut, and other garden plants. It is also used for
shaping the borders of paddy fields. The pick-axe supplements the spade in
digging operations. It is mainly used in hard soil. It is an essential tool for
construction works and road works. Hammer is mainly used for hitting harder for
breaking rocks, stones etc. Mainly quarry workers use this implement.
Felling knife and axe are used for clearing the land and for splitting the woods, or
felling trees. Sickles are mainly intended for harvesting. It is essential for reaping
grains, cropping or for grain cutting. Some of them may be saw-edged.
Improved Implements
Marginal changes in the design of different implements have been introduced in

India at various stages of development. Though India is backward in the use
ofmachines for agricultural operations, the past few years, have seen an increase in
the use of modern implements. Some of these implements have been adopted from
design obtained from advanced countries and adopted to local needs.
It has been mentioned that Indian village implements are few, simple in
design, and indigenous in pattern and locally manufactured. The design of each
implement varies in detail from region to region to suit local needs and conditions.
Not all the implements are used in all regions. The use of some is restricted to a
few regions. Since the commencement of third plan and during the period of green
revolution a number of steps have been taken to develop improved agricultural
implements. While some success was achieved, parts of the program continue to
suffer from a variety of shortcomings such as lack of suitable design, high cost of
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manufacture and lack of adequate facilities for sale and repairs. These problems
will receive attention through research in agricultural engineering and
improvement of arrangements for fabrication and distribution of implements.
Kerala Scenario
The manufacturing of agricultural implements and estate tools plays a dominant

role in the small-scale industrial sector of Kerala economy. This industry generally
included in the agro-based category of small-scale units is associated with the
main occupation of the inhabitants of the state namely, agriculture. The
government has reserved agricultural implements and hand tools manufacturing
exclusively to the small-scale sector.
There are, nearly 100 small-scale agricultural implements/tools manufacturing
units in Kerala. The main concentration of these units is in Shornur of Palakkad
District. This concentration may be attributed to the availability of skilled
laborers, that is, blacksmiths and sufficient raw materials.
Palakkad being an agricultural dominated area with a large number of scattered
agricultural laborers offers tremendous potential for this industry. Of the total units
in the state, 70% are located in Shornur itself. The remaining units are spread over
various parts of the state especially in rural areas. This industry provides
employment to nearly 3000 people. The annual turnover of these units is more
than 20 crores and the main items of manufacture include spade, pick axe,
hammer, axe, sickles etc.
It shall be noted that various aspects like process of manufacturing, raw materials,
machinery and equipment, investment, labor etc. are required for small-scale units
to manufacture the different types of agricultural tools. The industry has been
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included in the small-scale sector because it requires less investment when
compared to other large-scale industries and also less technological background
for manufacturing process. The system of marketing agricultural implements is
through agents appointed in various part of the country on commission basis. The
products are sold both in and outside Kerala.
1.3 COMPANY PROFILE
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The South India Metal Company(SIMCO) was established in 1936 as a private
company with initial investment of Rs..80,000. Initial finance was by Mr. ABDUL
SAMAD under technical advice of Mr. C.K MENON .The business was taken over
by Mr. DIVAKARAN NAMBOOTHIRIPPAD and his three brothers on March
1947. He was the Managing Partner till his death on 1 January 1999. In 1947, the
company becomes an ownership firm.
SIMCO mainly concentrates on the production of agricultural implements and it is

also engaged in the production of horticulture implements, garden tools, estate
tools etc... Now SIMCO is a famous firm in the production of above items in India.
High quality implements are produced here.
The company has received various awards including a first prize in the world
agricultural fair at New Delhi 1961 for SECATURES and a second prize in the
national quality award for agricultural implement in 1986.
The firm has about 8 acres of land situated at kulappully 2km from shornur town.
shornur is an important railway junction in Kerala and it is a sales centre of
scrapped rail. For this reason so many metal industries are located here. Both road
and railway facility are enjoyable by the firm easily in addition to this, there are
large number of agents for supply of raw materials. Almost all transport companies
like
SOUTH ROAD WAYS
KTC
VRL etc are operating here.
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There are large numbers of nationalized and scheduled banks operating
nearby shornur. Most of the dealings of the company are done through the Punjab
national bank.
Rails are the main raw material of SIMCO. Rails are received from open market
through agencies which collects this rail from Indian rail through auction; this
place is famous for small scale industries especially in metal industries.
All other industrial facilities are available in this locality, facilities like electricity,
communication, banking etc are readily available, and electricity is easily available
because an electric substation is situated near the firm.
SIMCO is one of the leading firms in the production of agricultural implements.

Enjoys good demand in the market because most of the people in India are
engaged in an agricultural implements, besides these the firm enjoys a good market
inside and outside Kerala. SIMCO has markets in
Kerala
Tamilnadu
Andhra Pradesh
Karnataka
Orissa etc
GOALS AND OBJECTIVES OF THE COMPANY
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To increase SIMCOs role in the supply of agricultural implement and
emerge as leading manufacturing company.
To improve quality of the equipments
To increase SIMCOs role in the supply of implement and goods and service
to the domestic market.
To increase profit
To satisfy customers.
MISSION
To produce quality iron and steel products as per world standard to meet the needs
of domestic and international markets and to achieve total customer satisfaction
through professional systems and practices in every field giving due weight age to
the organization and to set up an integrated steel plant with latest technology
establish leadership in the field and contribute to national wealth and ultimately to
become one of the best integrated.
WORKING TIME
Office staff
8.00am to 12.00pm
12.00pm to 1.00pm (lunch break)
1.00pm to 5.00pm
Other workers
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08.00am to 12.00pm
12.00pm to 1.00pm (lunch break)
1.00pm to 5.00pm
MEETING
Daily meeting with supervisors and charge men are held. It is in their meeting
that the plans are taken regarding in the production and sales. For solving the
problems faced by the workers a meeting is held between the management and
trade union leaders in every month. This gives the worker a chance for redressal of
grievances and demands. Important decision regarding the development of the
company is taken in the meeting held between the partners of the company. They
will take decision in respect of capital investment, adoption of new machinery
replacement of old assets etc...
PRESENT POSITION OF THE FIRM
SIMCO is currently under the owner of PURAYANNUR industries, a

registered partnership firm. The total capital of the firm touched the figure of Rs
500000. So it comes under the category of small scale industrial unit. It also
focuses on the production of horticultural implements.
MILESTONES OF THE COMPANY
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First prize in the world agricultural fair at New Delhi in 1961 for
SECATEURS
Second prize in the National Quality Award for agricultural implements in

1986
CAPITAL STRUCTURE
The capital of the firm is Rs 500000
Contributing partners:
First partner - P. DivakaranRs 200000
Second partner - P .ValsalaRs 300000
Profit sharing ratio - 2:3
COMPANY DETAILS
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Registered office - Purayannur Industries
Shornur 679122
Register no - OTP \ 09 \ 7 \88

SSI registers no - 09 \ 07 \ 00380 \ PMT
Auditors - V. K. S.Narayanan&co
Chartered accounts
Partners - P.Divakaran
P. Valsala
Bankers - 1. Punjab National Bank
2. State Bank of India
3. CanaraBank
Trade name - SIMCO
Brand symbol - LION
Workers - 171
Website - www.simcoindia.com
STRUCTURE OF THE FIRM

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According to the partnership deed, the firm consists of two partners
PURAYANNUR DIVAKARAN and PURAYANNURR VALSALA.
The capital of the firm is RS 500000 and contributed as under PURAYANNUR

DIVAKARAN RS 200000
PURAYANNUR VALSALA (sleeping partner) RS 300000
The managing partner of the firm is responsible for the overall and effective
management of the staff and whole establishment of SIMCO.
WORKING CAPITAL OF SIMCO
The company invites deposits in the form as unsecured loans from the
partners for its day to day activities. It also invites deposits from outsides. These
deposits are used for meeting the companys working capital requirements. It has
uses banking facilities such as overdrafts.
LAY OUT
The layout of the firm comprises of factory buildings, office, canteen and rest
room for employees, security office and employees quarters well designed to
accommodate within the available area even providing space for future expansion.
QUALITY CONTROL
SIMCO ranked first in its quality of products is targeted towards user

satisfaction. The firm has received various awards including a first price in the
WORLD AGRICULTURAL FAIR at NEW DELHI in 1961 for SECATURES and
second price in the NATIONAL QUALITY AWARD FOR AGRICULTURAL
IMPLEMENTS in 1986.
PRODUCT PROFILE
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SIMCO is specialized in the manufacturing of agricultural implements. These
implements are used by farmers, quarry workers, industry workers etc... The
company is mainly manufacturing spade, hammer, and pick axe.
PRODUCTS OF SIMCO
AGRICULTURL IMPLEMENTS
MAMMATTY
PICK AXE
GRUBBING MUTTOCK
HORTICULTURAL IMPLEMENTS
KODALI FORK
DIGGING FORK
MAMMATTY FORK
GARDEN TOOLS
GARDEN SHEARS
TRENCHING HOE
HAND FORK
ESTATE TOOL
RUBBER TAPPING KNIFE
PRUNING SAW
PRUNING KNIFE
HAND TOOLS
TIN CUTTER
ALAVANGOE
FELLING KNIFE
HAMMERS
AXE
SICKLE
PERSONNELDEPARTMENT
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The main purpose of Personnel department is to establish and maintain
sound personnel relations at all levels of the organisation and effective use of
personnel by ensuring good conditions for employment. Personnel department is
under the charge of a PersonnelManager.
Functions of Personnel Management
1. Development of human resources and motivating them to perform well

through incentives and the like.
2. Wage & Salary administration and Wage & Salary Surveys.
3. To provide benefits and service of insurance, health, hospitalization, medical
care etc.
Types of Workers
There are three types of workers in the company.
1. Piece rate workers in the production department.

2. Administrative staff.
3. Security staff.
SIMCO consists of 171 workers. Among them 140 are piece rate workers. There
are also has 28 office and 3 security staff.
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RECRUITMENT AND SELECTION
Like any other company, SIMCO also needs different kinds of personnel like
metal workers, supervisors, clerks and so on. The company has clearly specified
the skills and experience required for these works. SIMCO sources its human
resource requirements through various methods like advertisements. SIMCO also
sometimes gets unsolicited applications.
INDUSTRIAL RELATION
Trade unions are powerful instruments to promote and safe guard the
interests of the workers and to achieve the economical, physiological and social
goal of workers. Trade unions of the company are as follows:
CITU
INTUC
B.M.S
SIMCO Staff Association (staff union)
WELFARE
Labour comprises of all human efforts of body and mind, which is
exchanged for a consideration in terms of cash or kind or both. Friendly existence,
psychological balance, pollution free environment, proper sanitation, solid welfare
activities, establishment of equity and fairness, and ensuring safety of all personnel
in the organization are some of the tasks of the welfare department. The office of
economic welfare at the same time also promotes economic development of
society by increasing production, productivity and quality of products and services.
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WAGE AND SALARY ADMINISTRATION
There are different rules for determining the wages of workers and salary of
office staff. Office staff and watch man receives fixed salary. But the workers
receive wages under piece rate system. The firm pays the wages as per the
minimum wage Act of 1948.
BENEFITS GIVEN TO EMPLOYEES
This organization provides following retirement benefits to the employees,

i.e. Gratuity, provident fund and pension etc.
FAMILY PENSION
Family pension is paid to employees who died before superannuating.

Graded pension is provided. Those who retire get a lump sum amount and the
minimum eligibility condition for pension is 10 years experience.
PROVIDENT FUND
Provident fund is given to the employees by way of equal contributions done

by the employer and the employee.
GRATUITY
Gratuity is calculated by using the following Formula
Gratuity = basic pay + Dearness allowance x 15/26 x Years of service
BONUS
28
SIMCO provides certain percentage of profit as a bonus during the festival
season.
SCHOLARSHIP
Scholarship are provided for the children of SIMCO employees for their studies
(From 10th grade to degree)
EMPLOYEE STATE INSURANCE
Both employees and employers contribute a fixed sum to ESI.
LOANS
The concern provides loan facility to its employees in times of festival,

marriage and other needs.
CANTEEN FACILITY
The canteen facilities are also provided to the employees. For availing this
facility the employees should take canteen token from the office and then the token
should be given to canteen instead of cash.
TYPES OF LEAVE AVAILABLE
29
Following are the important types of leave available to the employees of
SOUTH INDIA METAL COMPANY.
LEAVE
Mainly two forms of leaves are prevailing in this organization. They are as
follows:
a. Casual leave: Employees are permitted to take casual leave for a maximum
of three days at a time. During the casual leave, the holidays and weekly off
will not be taken into consideration and it cannot be combined with any
other type of casual leave. Usually, any unavailing casual leave will lapse
automatically at the close of the calendar year.
b. Sick leave: This area is not covered by the ESI; hence the company has
introduced a 7 days sick leave in a calendar year to its employees. When an
employee avails sick leave for more than 3 days, he has to submit a medical
certificate from the registered medical practitioner along with the leave
application.
SAFETY MEASURES
When compared to other type of industries, metal industries use more

dangerous machines. The possibilities for the occurrence of accidents are more
because most of the machines are power driven. The chances for explosion are
high in these types of machines. The workers have to work in hot and noisy
30
environment that adversely affects their health. In order to prevent all these,
SIMCO has taken the following precautions.
Sufficient fire extinguishers are kept in the premises. The workers are provided
with spectacles, screens, and welding glass to protect their eyes. The company also
provides gloves, shoes, apron etcto its workers. These will protect them, when they
are employed near the machines.
This will help to reduce the heat. The factory building is designed as per the
Factory Act. Sufficient ventilation is there and it helps to exhaust the hot air. A first
aid box kept inside the factory contains a number of necessary medicines and
equipments. Besides all these only experienced male workers are allowed to
operate the machines.
OTHER ADMINISTRATIVE ACTIVITIES
PERFOMANCE APPRAISAL
The performance of each employee is evaluated by the respective supervisor

and the evaluation report is submitted to the top level executives by the supervisor.
According to this workers may be rewarded at the monthly meeting.
ABSENTEEISM
There are two types of absentees. They are habitual absentees and non
habitual absentees. Habitual absentees will take leave frequently without any
reason or if they are somewhere engaged with work other than their work in the
31
company. Non-habitual absentees are those who take leave very rarely. SIMCO
permits 10% absenteeism in a year.
GRIEVANCE HANDLING
If there is any grievance among employees, it will be reported to the top

level managers and a meeting will be called immediately. In this the workers and
top level management reveal their problems and complaints. According to this
proper action will be taken.
TIME OFFICE
For recording the attendance of workers ,attendance card method is followed. It is

placed in the time office. The attendance card contains the name of the worker,
ticket number, name of the department in which the employee works,working
hours etc.At the time of arrival worker should submit his attendance card.The
charge man also records the attendance in a particular book that include the name
of worker,ticket number,time of arrival etc.The book is thensubmitted to
thePersonnelManager who makes note on the attendance card and this is the base
for preparing the wage sheet
1.4 STATEMENT OF THE PROBLEM
32
Welfare measures are vital to improve employee efficiency and commitment.The
project entitled A study on the Effectiveness of Employee Welfare Measures
in SIMCO LTD,Shornur is done to understand the effectiveness of employee
welfare measures implemented in the organization. South India Metal Company
isone of the major companies in Kerala which manufacture agricultural
implements . As far as an organization is concerned, employees are valuable assets
of the organization and hence proper welfare measures have to be provided for
their betterment. This is essential to retain employees in the organization. The
study helps to understand the effectiveness of various welfare measures
implemented in the organization and its relationship with factors like employee
productivity and employee retention etc.
1.5 SCOPE OF THE STUDY
Labour welfare has become essential because of the industrial system. The
approach to this problem or movement differs from country to country, according
to the degree of development in a particular country. However the need for labour
welfare in some way or the other is realized all over the world because of the socio
economic conditions and problems which the industrial society has thrown up.
In a world of changing values, where ideologies are rapidly undergoing

transformation, rigid statements about the field of labour welfare need to be
revised. Labour welfare work is increasing with changing opportunities and need
to meet varying situations. It also is increasing with the growing knowledge and
experience of techniques. An able welfare officer would, therefore, include in his
welfare programme, the activities that would be conclusive to the well being of the
worker and his family.
33
The present study has been undertaken to find out the effectiveness of
employee welfare measures in SIMCO Ltd. The practical difficulties involved in
employee welfare measures can be evaluated through this study. The study,
conducted for a period of two months can be used to bring out solutions for the
problems faced by employees availing the welfare measures.
1.6 REVIEW OF LITERATURE
34
The ILO (International Labour Organisation) defined, Welfare as a term which is
understood to include such services, facilities and amenities as may be established
in or the vicinity of undertaking to perform their work in healthy and congenial
surroundings and to provide them with amenities conductive to good health and
high morale.
According to Arthur James Todd, Labour 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.
Coventry and Barker (1988) assert that Staff welfare includes providing social
club and sports facilities as appropriate, supervising staff and works canteens,
dealing with superannuation, pension funds and leave grants, making loans on
hardship cases, arranging legal aid and giving advice on personal problems,
making long service agents, providing assistance to staff transferred to another area
and providing fringe benefits (such as payment during sickness, luncheon vouchers
and other indirect advantages).
Welfare is a corporate attitude or commitment reflected in the expressed care for

employees at all levels, underpinning their work and the environment in which it is
performed (Cowling and Mailer, 1992).
In the words of Bharat Wakhlu (1994), a management which takes interest in the
welfare of its employees has already won their royalty. Arranging family picnics,
meals and festivals, facilitate interaction among the management and employees
and thus create a rapport among them. Planning for worker satisfaction begins with
provision of sound basic facilities. Employees want a peaceful and tranquil
environment so that they can give their best to the well being of the organisation.
35
Stevenson (2002) notes that compensation is a significant issue for the design of
work systems and that it is important for organisations to develop suitable
compensation plans for their employees in order to attract and hold competent
employees. However, if they are too high, the increased costs may result in lower
profits or force the organisation to increase prices which might adversely affect the
demand for the organisations services.
Armstrong (2006) argues that medical services aim to provide help to employees
who get absent from work for long periods because of illness related issues. They
should aim to speed the return of employee to work. Visits should be made by the
managers or specialised full or part time sick visitor with the aim of showing
employees that their firm and colleagues are concerned about their welfare and
also to alleviate any loneliness they may feel.
Welfare activities may also be divided into statutory and voluntary measure
services which comprise the legal provision in various pieces of labour legislation
and activities which are undertaken by employees for their workers voluntarily.
(Ankita, 2010)Human Resource Management- Robert L.Mathis, Jackson, John H
Jackson :The success of the employee welfare activity depends on the approach
which has been taken into account in providing such activities to the employees
and welfare activities should be guided by idealistic morale and human value and
such services include the provision of medical facilities, sanitary and the
accommodation of workers employed, amenities and industrial social security
measures, training and education facilities, HIV and AIDS risk reduction and
counselling service (Harika, 2010).
Manzini and Gwandure,(2011) argues that, welfare service can be used to secure
the labour force by providing proper human conditions of work and living through
36
minimizing the hazardous effect on the life of the workers and their family
members.
Historically employee welfare services were meant to reduce absenteeism and time
off due to illness. However, today they have taken a broader scope and they
include almost all aspects that relate to an employees wellness and personal
development in the work place (Manzini and Gwandure, 2011)
Shoba Mishra &ManjuBhagat, in their Principles For Successful Implementation

Of Labour Welfare Activities, stated that labour absenteeism in Indian industries
can be reduced to a great extend by provision of good housing, health and family
care, canteen, educational and training facilities and provision on welfare activities
is nothing but an extension of democratic values in an industrialized society.
The international Labour Organisation(ILO) broadly classifies welfare services

into two; intra-mural activities which are provided within the establishment such as
latrines and urinals, drinking water, washing and bathing facilities, crches, rest
shelters and canteen, occupational safety, uniform and protective clothing and shift
allowance. Extra-mural activities which are undertaken outside the establishment
such as maternity benefits, social insurance measures like gratuity pension,
provident fund and rehabilitation, physical fitness and efficiency, family planning
and child welfare, education facilities, housing facilities, recreational facilities
including sports, cultural activities, transport to and from the place of work(Manju
and Mishra, 2007).
Mwiti(2007) points out that welfare services may not directly relate to an
employees job but the presence or absence of the service is notable through
employee performance, attitude, high or low employee turnover.
37
Welfare services may be provided for matters concerning employees in terms of
supplementing the income of the workers by providing services such as housing,
medical assistance, canteens and recreation facilities (Mishra and Manju, 2007)
Employee welfare may be viewed as a total concept, as a social concept and as a

relative concept. The total concept is the desirable state of existence involving the
physical, mental, moral and emotional well-being. These four elements together
constitute the structure of welfare, on which its totally is based, the social concept
of welfare implies the welfare of man, his family and his community. All those
aspects are inter related and worked together is a three dimensional approach. The
relative concept of welfare implies that welfare is 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 of education social customs and degree of
industrialization and general standard of the social economic development of the
people.
Employee welfare implies the setting of the minimum desirable standards and
provisions of facilities like health, food, housing, medical assistance, education,
job security, recreation such facilities enable the workers and his family to lead
good work social life. Employee welfare also operates to neutralize the harmful of
large scale industrialization.
Meaning
The word labour means any productive activity. In a broader sense, therefore the
phrase labour welfare means the adoption of measures to promote the physical,
38
social, psychological and general well-being of the working population. Welfare
work in any industry aims at improving the working and living conditions of
workers.
Definition:
Employee welfare isEfforts to make life worth living for workers.
In the words of R.Rhopkins welfare is fundamentally anAttitude of the mind on
the part of management activities is under taken.
Aim of welfare:
The main aim of providing the welfare measures is to bring the development in the
personality of the worker his social, psychological, moral, cultural and intellectual
development to make him a good worker a good citizen and a good member of the
family.
Welfare and working conditions

Labour welfare is an important fact of industrial relations. With the growth
of industrialization and mechanization, it has acquired an added importance. The
worker, both in industry and agriculture, cannot cope with the pace of modern life
with minimum sustenance amenities. He needs an added stimulus to keep body and
soul together, Labour welfare, though it has been proved to contribute to efficiency
in production, it is expensive. Each employer depending on his priorities gives
varying degrees of importance to labour welfare. It is because the Government is
not sure that all employees are progressive minded and basic welfare measures
that it introduces statutory registration from time to time to bring about some
measure of uniformity in the basic amenities available to industrial workers.
39
Royal Communication reported labour welfare as A term which must
necessarily be elastic, bearing a somewhat different interpretation in one country
from another, according to the different social customs, the degree of
industrialization and educational level of the workers.
Today, welfare has been generally accepted by employees. The state only
intervenes to widen the area of applicability. It is now accepted as a social right,
it as an Expression of the assumption by industry of its responsibility for its
employers. Though industrial workers are generally better paid there conditions at
work and often poorer living conditions necessitate more than minimum amenities,
and hence most statutory legislation applies to them.
In a resolution in 1947, the ILO defined labour welfare as such services,
facilities and amenities as adequate canteens, rest and recreation facilities,
arrangements for travel to and from work, and the accommodation of workers
employed at a distance from their house, and such other services, amenities and
facilitates as contribute to improve the conditions under which workers are
employed.
Welfare in the Indian industry implies the provision of medical and
educational services, a congenial work atmosphere, and so on. The need for
providing such services and facilities arises from the social responsibility of
industry, a desire for upholding democratic values and a concern for employees.
The Encyclopaedia of social science defines labour welfare a The voluntary
efforts of the employers to establish within the existing industrial system, working
and sometimes living and cultural conditions of the employees beyond that which
is required by law, the custom of the industry and the condition of the employees
beyond that which is required by law, the custom of the industry and the conditions
of the market.
40
The report or the Committee on Labour Welfare set up by the Government
of India in 1969 refers to welfare as a broad concept, a condition of well-being. It
speaks of the measures which promote the Physical, psychological and general
well-being of the working population.
Labour welfare implies providing better worker condition, such as
proper lighting, heat control, low noise level, toilet and drinking water facilities,
canteen and restrooms, health and safety measures, reasonable hours of work and
holidays, and welfare services, such as housing, education, recreation,
transportation, and counselling.
Labour welfare has two aspects negative and positive. One the negative side,
labour welfare is concerned with countering the baneful effect of the large scale
industrial system of production, especially, capitalistic, so far as India is concerned
on the personal/family, and social life of the worker, On the positive side, it deals
with the provision of opportunities for the worker and his/her family for a good life
as understood in its most comprehensive sense.
Conceptual aspects of labour welfare

The term welfare suggests many ideas, meaning and connotations, such as
the state of well being, health happiness, prosperity and the development of human
resources. The concept of welfare can be approached from different angles.
Welfare has been described has a total concept. It is a desirable state of existence;
physical, mental, moral and emotional well being. All these four elements together
constitute the structure of welfare on which its totality is based.
The social concept of welfare implies the welfare of man, his family and his
community. There is interconnection of these three aspects, in the sense that all the
41
three work together or individually supplement one another, in a three dimensional
approach, each serving as ends and means.
Welfare is called a relative concept, for it is related to time and space. As
welfare is growing and dynamic, the welfare under goes potential changes, as a
result of which its content keeps on varying and has to keep pace with the
changing times. Also the characteristics of welfare vary, for it depends largely on
the conscience of the community, the scientific advancement and the development
of nation in all fields. Its meaning and components, therefore, differ from country
to country and from place to place.
Welfare is also a positive concept. In order to establish a minimum level of
welfare, it demands certain minimum acceptable condition of existence,
biologically and socially. This positive nature call for the setting up of the
minimum desirable standard necessary for certain components of welfare, such as
health, food, clothing, housing, medical assistance, insurances, education,
recreation, job security, and so on. Thus it has to specify the starting point for
building levels of welfare.
The word labour means any productive activity, in a broader sense;
therefore, the phrase labour welfare means the adoption of measures to promote the
physical, social, psychological and general well being of the working population.
Welfare works in any industry aims or should aim at improving the working and
living conditions of workers and their families.
The concept of labour welfare, however, is flexible, elastic and differs from
time to time, region, industry to industry a country to country, depending up on the
value system, level of education social customers, degree of industrialization and
the general standard of the socio economic development of the people, It is also
related to a political situation in a country. Further, it depends upon the kind of a
42
problem with which the society is confronted as well as on the structure of the
industry. It is moulded according to the age group, sex, socio culture back ground,
marital status, economic status and educational level of the employees in various
industries.
The concept of labour welfare originated from a desire for a humanitarian
approach to the suffering of the working class. Later, it became a utilization
philosophy which worked as a motivational force for the labours and for those who
were interested in it.
43
1.7 OBJECTIVES OF THE STUDY
Primary Objective
To study the effectiveness of employee welfare measures in SIMCO Ltd.
Secondary Objectives
To understand the various statutory and non statutory welfare measures

implemented in SIMCO Ltd
To study whether the employee welfare measures improve the level of
productivity of the employees.
To study whether the employee welfare measures aid in employee retention
To propose suitable suggestions, if any, so as to improve the existing
employee welfare measures.
1.8 HYPOTHESIS TO BE TESTED
1. Relationship between employee welfare measures and level of

productivity of the employees
H0: There is no significant relationship between employee welfare measures
and level of productivity of the employees.
44
H1: There is a significant relationship between employee welfare measures
and level of productivity of the employees.
2. Relationship between employee welfare measures and employee

retention.

and employee retention.
2.1 RESEARCH METHODOLOGY
Research methodology can be defined as the procedures used in making

systematic observations or otherwise obtaining data, evidence or information as
part of a research project or study
45
Research Methodology is a way to systematically solve the research
problem. It may be understood as a science of studying how research is done
scientifically. In it, we study the various steps that are generally adopted by a
researcher in studying his research problem along with the logic behind them.
2.2 RESEARCHDESIGN
A research design is an arrangement of conditions for collection and analysis

of data in a manner that aims to combine relevance to the research purpose with
economy in procedure. It is the conceptual structure within which research is
conducted. It constitutes the blueprint for the collection, measurement and analysis
of data.
The study is descriptive in nature. Descriptive research includes surveys and

fact finding enquiries of different kinds. The major purpose of descriptive research
is the description of the state of affairs as it exists at present.
2.3 SAMPLING DESIGN
A sample design is a definite plan for obtaining a sample from a given

population. It refers to the technique or the procedure the researcher would adopt
in selecting items for the sample. Sample design may as well lay down the number
of items to be included in the sample i.e., the size of the sample. The type of survey
adopted is sample survey i.e., from the total population, a few items are selected
which represents the whole population.
UNIVERSE/POPULATION
Universe refers to the total of the items or units in any field of inquiry where as
population refers to the total items about which information is desired. Quite often
there may not be any difference between population and universe, and as such the
46
two terms are taken as interchangeable. The universe as well as the population of
the study comprised of the total employees working at South India Metal Company
Ltd, shornur.
TYPE OF SAMPLING
Sampling method used in the study is convenience sampling. Convenience

sampling is a non-probability sampling technique where subjects are selected
because of their convenient accessibility and proximity to the researcher.
SAMPLE SIZE
Sample refers to those respondents selected which are representative of the total
population that gives a miniature cross-section. Algebraically, from the total
population of N, if a part of it is selected, n(which is<N), according to some
rule for studying some characteristic of the population, the group consisting of
these n units is known as sample. Sample size refers to the number of items to
be selected from the universe to constitute a sample. The sample size for this
study is 85.
2.4 DATA COLLECTION
SOURCES OF DATA
a) Primary Data
47
The primary data are those which are collected afresh and for the first
time, and thus happen to be original in character. In this study, structured
questionnaire is used for collecting the primary data.
b) Secondary Data
The secondary data are those which have already been collected by
someone else and which have already been passed through the statistical
process. In this study, secondary data is collected from company records,
internet, books, company manuals etc.
DATA COLLECTION INSTRUMENT
In this study, a structured questionnaire is used for collecting data. A
structured questionnaire is a questionnaire in which there are definite,
concrete and pre-determined questions. The questions should be stated in
advance and not constructed during questioning. Structured questionnaires
also have fixed alternative questions in which responses of the informants
are limited to the stated alternatives. Thus a highly structured questionnaire
is one in which all questions and answers are specified and comments in the
respondents own words are held to the minimum.
2.5 TOOLS USED FOR DATA ANALYSIS
SIMPLE PERCENTAGE ANALYSIS

In this method, percentage is calculated based on the responses given by the
respondents. This method is used to describe relationship.
Percentage = No. of responses
Total No. of respondents
100
48
CHI SQUARE TEST
Chi Square test is a statistical tool used in the context of sampling analysis
for comparing a variance to a theoretical variance. Chi Square test is
applicable in large number of problems. The test is a technique through the
use of which it is possible for all researchers to (i) test the goodness of fit;
(ii) test the significance of association between two attributes, and (iii) test
the homogeneity or the significance of population variance. In this study Chi
Square test is used to test the significance of association between two
attributes.
Chi Square Formula:
n
( OiEi ) 2
2
= Ei
i=0
d.f = (c-1)(r-1)
where,
O = Observed frequency
E = Expected Frequency
r = No. of Rows
c = No. of Columns
2.6 LIMITATIONS OF THE STUDY
It is assumed that the answers given by the employees are true and adequate;
therefore the study is representative of the employees opinion.
Biased view of the respondent may form another cause of limitation.
The unwillingness of some respondents to give the actual information was a
major obstacle.
Findings from the study are applicable only to this organisation.
49
3.1
Responses No. of Respondents Percentage
Less than 5 Years 4 4.70
5-10 years 19 22.35
10-15 years 21 24.70
15 years and above 41 48.23
Total 85 100
SIMPLE PERCENTAGE ANALYSIS
Table3.1: Table showing the length of employees service with SIMCO Ltd
(Source: Primary Data)
Fig3.1: Chart showing the length of employees service with SIMCO Ltd
50
50
45
40
35
30
48.23
25
20
15 22.35 24.7
10
5 4.7
0
Less than 5 years 5 - 10 years 10 - 15 years 15 years and above
Interpretation
The above table shows that almost half of the employees (48.23%) have an
experience of 15 years and above, 24.70% of employees have 10-15 years of
experience, 22.35% of employees have 5-10 years of experience and 4.70% of
employees have an experience of less than 5 years at SIMCO Ltd. Therefore
majority (48.23%) of the employees have an experience of more than 15 years at
SIMCO Ltd.
51
Table 3.2: Table showing the level of satisfaction of employees regarding the
Employee welfare measures in the organisation
Responses No: of Respondents Percentage

Highly satisfied 10 11.76
Satisfied 63 74.11
Neutral 8 9.41
Dissatisfied 4 4.70
Highly Dissatisfied 0 0
Total 85 100
52
Fig 3.2: Chart showingthe level of satisfaction of employees regarding the
employee welfare measures in the organisation
80
70
60
50
40 74.11
30
20
10 11.76 9.41 4.7 0
0
al
d
d
fe
fe
fe
fe
tr
eu
tis
is
tis
tis
at
N
Sa
Sa
sa
s
is
is
y
D
hl
y
ig
hl
H
ig
H
Interpretation
The above table shows that majority (74.11%) of the employees are satisfied with
the employee welfare measures in the organisation, 9.41% of the employees
remain neutral, 11.76% of the employees are highly satisfied and 4.70% of the
employees are dissatisfied with the employee welfare measures in the organization.
Therefore majority (74.11%) of the employees are satisfied with the employee
welfare measures in the organisation.
53
working environment in the organisation

Highly satisfied 12 14.11
Satisfied 42 49.41
Neutral 21 24.70
Dissatisfied 8 9.41
Highly Dissatisfied 2 2.35
Total 85 100
54
Fig 3.3: Chart showing the level of satisfaction of employees regarding the
working environment in the organisation
60
50
40
30
49.41
20
24.7
10
14.11
9.41
0 2.35
al
d
d
fe
fe
fe
fe
tr
eu
is
tis
tis
is
at
at
N
Sa
Sa
s
is
is
y
D
hl
y
ig
hl
H
ig
H
Interpretation
The above table, shows that half (49.41%) of the employees are satisfied with the
working environment in the organisation, 24.70% of the employee remains
neutral,14.11% of the employees are highly satisfied,9.41% of the employees are
dissatisfied and 2.35% of the employees are highly dissatisfied with the employee
welfare measures in the organisation. Therefore half (49.41%) of the employees are
satisfied with the working environment in the organisation.
55
Table 3.4: Table showing the extent to which the welfare measures helps in
improving their productivity
Responses No: of respondents Percentage

To a large extent 40 47.05
To a moderate extent 23 27.05
Neutral 7 8.23
To small extent 6 7.05
To very small extent 9 10.58
Total 85 100
((Source: Primary Data)
56
Fig 3.4: Chart showing the extent to which the welfare measures helpsin
improving their productivity
50 47.05
45
40
35
30 27.05
25
20
15 10.58
10 8.23 7.05 Series 1
5
0
l
nt
nt
nt
t
ra
en
te
te
te
ut
xt
ex
ex
ex
ne
le
l
e
al
al
rg
at
sm
sm
la
er
od
a
ry
to
to
ve
m
a
to
to
Interpretation
The above table shows that about half (47.05%) of the employees agree that the
welfare measures improve their productivity to a large extent, 27.05% of the
employee says that the welfare measures improve their productivity to a moderate
extent, 8.23% says that the welfare measure has no impact on productivity, 7.05%
says that welfare measures improve their productivity to small extent and 10.58%
says that welfare measures improve their productivity to very small extent.
Therefore most (47.05%) of the employees agree that the welfare measures
improve their productivity to a large extent.
57
Table 3.5: Table showing the employee rating about the educational
assistanceprovided for the employees children
Responses No: of respondents Percentage

Excellent 10 11.76
Good 50 58.82
Average 15 17.64
Poor 9 10.58
Very poor 1 1.17
58
Total 85 100
(Source :Primary Data)
Fig 3.5: Chart showing the employee rating about the educational assistance
provided for the employees children
10.58 1.17 11.76

excellent
17.64 good
average
poor
very poor
58.82
Interpretation
The above table shows that, more than half(58.82%) of the employees rate the
educational assistance provided for the employees children as good, 11.76 % as
excellent and17.64% as average,10.58% as poor and 1.17% as very poor.
Therefore majority (58.82%) of the employees rate the educational assistance
provided for employees children as good.
59
Table 3.6: Table showing the employee rating about the quality of food supplied in
the canteen

Excellent 34 40
Good 38 44.70
Average 7 8.23
Poor 6 7.05
60
Very Poor 0 0
Total 85 100
Fig 3.6: Chart showing the employee rating about the quality of food supplied
in the canteen
50
45
40
35
30
25
44.7
20 40
15
10
5 8.23 7.05
0 0
Excellent Good Average Poor Highly Dissatisfed
Interpretation
From the above table, 44.07% of the employeeshad a goodopinion about the
quality of food supplied in the canteen. 40% considered the food as excellent,
8.23% find the food average and 7.05% have a pooropinion.Therefore majority
(44.07%) of the employees have a good opinion about the quality of food supplied
in the canteen.
61
Table 3.7: Table showing the employee rating about the monthly production bonus
provided by the company

Excellent 15 17.64
Good 45 52.94
Average 18 21.17
Poor 7 8.23
Very Poor 0 0
62
Total 85 100
Fig 3.7: Chart showing the employee rating about the monthly production bonus
8.23 17.64
21.17
excellent
good
average
poor
52.94
very poor
Interpretation
The above table shows that, more than half (52.94%) of the employees havea good
opinion about the monthly production bonus provided by the company, 17.64%
have excellent opinion, 21.17% have average opinion,8.23% have poor opinion.
Therefore majority (52.94%) of the employees have a good opinion about the
monthly production bonus provided by the company.
63
Table 3.8: Table showing whether the employees are satisfied with the bonus and
incentives provided by the company

Highly Satisfied 15 17.64
Satisfied 47 55.29
Neutral 14 16.47
Dissatisfied 7 8.23
64
Total 85 100
Fig 3.8: Chart showing whether employees are satisfied with the bonus and
incentives provided by the company
8.23 2.35 17.64
Highly Satisfed
16.47
Satisfed
Neutral
Dissatisfed
Highly Dissatisfed
55.29
Interpretation
The above table shows that more than half (55.29%) of the employees are satisfied
with the bonus and incentives provided by the company. 16.47% of the employees
remains neutral, 17.64% of the employees are highly satisfied, 8.23% shows
dissatisfaction and 2.35% are highly dissatisfied. Therefore majority (55.29%) of
the employees are satisfied with the Bonus and incentives provided by the
company.
65
Table3.9: Table showing the employee ratingabout the appreciation and recognition
given to the employees for their excellence

Excellent 17 20
Good 40 47.05
Average 20 23.52
Poor 8 9.41
66
Very Poor 0 0
Total 85 100
Fig 3.9: Chart showing the employee ratingabout the appreciation and recognition
given to employees for their excellence
9.41
20
excellent
23.52 good
average
poor
very poor
47.05
Interpretation
The above table shows that, half(47.05%) of the employees have a good opinion
about the appreciation and recognition given to employees for their excellence,
20% of the employees have excellent opinion, 23.52% have an average
opinion,9.41% have poor opinion.Therefore majority (47.05%) of the employees
have good opinion about the appreciation and recognition given to employees.
67
Table 3.10: Table showing the response whether the bonus and incentives provided
by the company help in employee retention

Strongly agree 35 41.17
Agree 25 29.41
Neutral 8 9.41
68
Disagree 7 8.23
Strongly Disagree 10 11.76
Total 85 100
Fig 3.10: chart showing the response whether the bonus and incentives provided by
the company help in employee retention
11.76
8.23
strongly agree
41.17 agree
9.41 neutral
disagree
strongly disagree
29.41
Interpretation
From the above table, 29.41% of the employees agree that bonus and incentives
provided by the company help in employee retention.41.17% of the employees
strongly agree, 9.41% of the employee remains neutral and 8.23% of the
69
employees disagree to the statement and 11.76% of the employees strongly
disagree to the statement. Therefore majority (41.17%) of the employees strongly
agree that bonus and incentives provided by the company help in employee
retention
Table 3.11: Table showing the level of satisfaction of employees towards the shift
scheme provided by the company

70
Satisfied 56 65.88
Neutral 8 9.41
Dissatisfied 10 11.76
Total 85 100
Fig 3.11: Chart showing the level of satisfaction of employees towards shift
70
60
50
40 65.88
30
20
10 10.58 9.41 11.76

2.35
0
al
d
d
fe
fe
fe
fe
tr
eu
tis
is
tis
tis
at
N
Sa
Sa
sa
s
is
is
y
D
hl
y
ig
hl
H
ig
H
Interpretation
The above table shows that, more than half (65.88%) of the employees are
satisfied with the shift scheme provided by the company. 11.76% of the employees
are dissatisfied with the shift scheme, 9.41% of the employees remains neutral,
10.58% of the employees are highly satisfied and 2.35% of the employees are
71
highly dissatisfied with the shift scheme provided by the company. Therefore
majority (65.88%) of the employees are satisfied with the shift scheme provided by
the company.
attendance bonus offered by the company

72
Satisfied 47 55.29
Neutral 10 11.76
Dissatisfied 7 8.23
Total 85 100
Fig 3.12: Chart showing the level of satisfaction of employees regarding the
attendance bonus offered by the company
60 55.29
50
40
30
22.35
20
11.76 Series 1
10 8.23
2.35
0
l
d
d
d
ra
fe
fe
fe
fe
ut
is
is
tis
tis
ne
at
at
Sa
sa
s
is
is
y
D
hl
y
ig
hl
H
ig
H
Interpretation
From the above table, 35.29% of the employees are satisfied with the attendance
bonus offered by the company, 22.35% of the employees are highly satisfied,
73
23.52% of the employees remains neutral, 10.58% of the employees are
dissatisfied and 8.23% of the employees are highly dissatisfied with the attendance
bonus offered by the company. Therefore majority (55.29%) of the employees are
satisfied with the attendance bonus offered by the company
Table 3.13: Table showing the satisfaction of employees towards the basic
amenities offered by the company to the employees (Drinking water, Lighting,
Ventilation etc)
74
Satisfied 60 70.58
Neutral 8 9.41
Dissatisfied 3 3.52
Total 85 100
Fig 3.13: Chart showing the satisfaction of employees towards the basic amenities
offered by the company to the employees (Drinking water, Lighting, Ventilation
etc)
80
70
60
50
40 70.58
30
20
10 15.29 9.41 3.52 1.17
0
al
d
d
d
fe
fe
fe
fe
tr
eu
is
tis
tis
is
at
at
N
Sa
Sa
s
is
is
y
D
hl
y
ig
hl
H
ig
H
Interpretation
The above table shows, more than half (70.58%) of the employees are satisfied
with the basic amenities offered by the company, 15.29% of the employees are
highly satisfied, 9.41% remains neutral, 3.52% are dissatisfied and 1.17% of the
75
employees are highly dissatisfied. Therefore more than half (70.58%) of the
employees are satisfied with the basic amenities offered by the company.
Table 3.14: Table showing the employee rating about the rest room facilities

Excellent 23 27.05
76
Good 34 40
Average 17 20
Poor 11 12.94
Very Poor 0 0
Total 85 100
Fig 3.14: Chart showing the employee rating about the rest room facilities provided
by the company
45
40
40
35
30 27.05
25
20
20 Series 1
15 12.94
10
0
excellent good average poor very0poor
Interpretation
The above table shows that, 40% of the employees havea good opinion about the
rest room facilities provided by the company, 27.05% have excellent opinion, 20%
have average opinion,12.94% have a poor opinion.Therefore majority (40%) of the
77
employees have a good opinion about the rest room facilities provided by the
company.
Table 3.15: Table showing the employee ratingabout the training programs
conducted by the company

Excellent 15 17.64
78
Good 30 35.29
Average 35 41.17
Poor 5 5.88
Very Poor 0 0
Total 85 100
Fig 3.15: Chart showing the opinion of the employees about the training programs
conducted by the company
45 41.17
40 35.29
35
30
25
17.64
20
15
10 5.88
0
excellent good average poor 0
very poor
Interpretation
The above table shows that, 35.29% of the employees havea good opinion about
the training programs conducted by the company, 17.64% have an excellent
opinion, 41.17% have an average opinion and 5.88% ,poor opinion.Therefore
79
majority (41.17%) of the employees have an average opinion about the training
programs conducted by the company.
leave facilities offered by the company

80
Satisfied 63 74.11
Neutral 8 9.41
Dissatisfied 4 4.70
Total 85 100
Fig 3.16: Chart showing the level of satisfaction of employees regarding the leave
facilities offered by the company
80
70
60
50
74.11
40
30
20
10 11.76 9.41 4.7 0
0
al
d
d
fe
fe
fe
fe
tr
eu
tis
tis
is
is
at
at
N
Sa
Sa
s
is
is
y
D
hl
y
ig
hl
H
ig
H
Interpretation
The above table shows that more than half( 74.11%) of the employees are satisfied
with the leave facilities provided by the company. 9.41% of the employees remain
neutral, 11.76% of the employees are highly satisfied and 4.70% of the employees
81
are dissatisfied with this statement. Therefore majority (74.11%) of the employees
are satisfied with the leave facilities offered by the company.
Table 3.17: Table showing the employee rating about the housing facility provided
by the company

Excellent 10 11.76
82
Good 45 52.94
Average 25 29.41
Poor 5 5.88
Very Poor 0 0
Total 85 100
Fig 3.17: Chart showing the employee rating about the housing facility provided by
the company
5.88 11.76
29.41 excellent
good
average
52.94 poor
very poor
Interpretation
The above table shows that, more than half (52.94%) of the employees havea good
opinion about the housing facilities provided by the company. 11.76% have an
83
excellent opinion, 29.41% havean average opinion and 5.88% have a poor
opinion.Therefore majority (52.94%) of the employees have a good opinion about
the housing facilities provided by the company.
Table 3.18: Table showing the employee rating about the festival allowances

Excellent 12 14.11
84
Good 45 52.94
Average 17 20
Poor 11 12.94
Very Poor 0 0
Total 85 100
Fig 3.18: Chart showing the employee rating about the festival allowances
12.94 14.11
excellent
good
20
average
poor
very poor
52.94
Interpretation
The above table shows that more than half( 52.94%) of the employees have a good
opinion about the festival allowance provided by the company, 14.11% have an
excellent opinion, 20% havean average opinion,12.94% have a poor
85
the festival allowance provided by the company.
Table 3.19: Table showing the employee opinion about the grievance handling
procedure followed by the company
86
Excellent 25 29.41
Good 40 47.05
Average 15 17.64
Poor 5 5.88
Very Poor 0 0
Total 85 100
Fig 3.19: Table showing the employee opinion about the grievance handling
procedure followed by the company
5.88
17.64 29.41
excellent
good
average
poor
47.05
very poor
Interpretation
87
The above table shows that,half(47.05%) of the employees have a good opinion
about the grievance handling procedure followed by the company, 29.41% have an
excellent opinion,17.64% havean average opinion,5.88% have a poor
the grievance handling procedure followed by the company.
88
Table 3.20: Table showing the response whether the employee welfare measures
increases the productivity of the employees

Agree 30 35.29
Neutral 20 23.52
Disagree 9 10.58
Strongly disagree 7 8.23
Total 85 100
Fig 3.20: Chart showing the response whether the employee welfare measures
increases the productivity of the employees
40
35.29
35
30
25 22.35 23.52
20
15
10.58 Column3
10 8.23
0
l
e
ee
e
ee
ra
re
re
gr
gr
ut
ag
ag
sa
sa
ne
ly
di
di
ng
ly
ro
ng
st
ro
st
89
Interpretation
From the above table, 35.29% of the employees agree that welfare measures
increase their productivity.22.35% of the employees strongly agree, 23.52% of the
employee remains neutral and 10.58% of the employees disagree to the statement,
and 8.23% of the employees strongly disagree. Therefore majority (35.29%) of the
employees agree that welfare measures increase the productivity.
90
Table 3.21: Table showing the level of agreement towards safety and security
measures at workplace helps in employee retention

Agree 53 62.35
Neutral 7 8.23
Disagree 6 7.05
Strongly disagree 7 8.23
Total 85 100
Fig 3.21: Chart showing the level of agreement towards safety and security
measures at workplace helps in employee retention
70
62.35
60
50
40
30
20 Column1
14.11
8.23 7.05 8.23
10
0
al
e
ee
re
re
re
tr
gr
ag
Ag
ag
eu
sa
is
N
ly
di
D
ng
ly
ro
ng
St
ro
st
91
Interpretation
The above table shows that, majority (62.35%) of the employees agree that
adequate safety and security measures provided by the company helps in employee
retention. 14.11% strongly agree, 7.05% disagrees, 8.23% of the employee remains
neutral and the remaining 8.23% of the employees strongly disagree. Therefore
almost (62.35%) all the employees agree that adequate safety and security
provided by the company helps in employee retention.
92
Table 3.22: Table showing the level of satisfaction of employees about the
retirement benefits offered by the company

Satisfied 41 48.23
Neutral 16 18.82
Dissatisfied 8 9.41
Total 85 100
Fig 3.22: Chart showing the level of satisfaction of employees about the retirement
benefits offered by the company
60
50 48.23
40
30
23.52
18.82
20
9.41
10
0
highly satisfed satisfed neutral 0
Dissatisfed Highly dissatisfed
(Source: Primary data)
93
Interpretation
The above table shows thatabout half (48.23%) of the employees are satisfied with
the retirement benefits offered by the company. 23.52% of the employees are
highly satisfied, 18.82% of the employees remain neutral and 9.41% of the
employees are dissatisfied with the retirement benefits. Therefore majority
(48.23%) of the employees are satisfied with the retirement benefits offered by the
company.
94
Table 3.23: Table showing the level of satisfaction of employees towards the
insurance schemes offered by the company

Satisfied 47 55.29
Neutral 16 18.82
Dissatisfied 9 10.58
Total 85 100
Fig 3.23: Chart showing the level of satisfaction of employees towards the
insurance schemes offered by the company
60
55.29
50
40
30
18.82
20
10.58
10 8.23 7.05
0
Highly satisfed satisfed neutral Dissatisfed Highly Dissatisfed
(Sourc
e: Primary Data)
95
Interpretation
From the above table, more than half(55.29%) of the employees are satisfied with
the insurance schemes provided by the company. 18.82% of the employee remains
neutral, 10.58% says that they are dissatisfied with the insurance scheme, 8.23%
are highly satisfied and 7.05% says that they are highly dissatisfied with the
insurance scheme provided by the company. Therefore more than half (55.29%) of
the employees are satisfied with the insurance scheme provided by the company.
96
Table 3.24: Table showing the agreement of employees about the trade unions role
in negotiating problems and enhancing welfare facilities

Strongly agree
0 0
Agree
8 9.41
Neutral
12 14.11
Disagree
42 49.41
Strongly disagree
23 27.05
Total 85 100
Fig 3.24: Chart showing the agreement of employees about the trade unions role
in negotiating problems and enhancing welfare facilities
50
45
40
35
30
49.41
25
20
15 27.05
10 14.11
9.41
5
0
0
Strongly agree Agree Neutral Disagree Strongly disagree
97
Interpretation
From the above table, about half(49.41%) of the employees disagree that the trade
unions play a vital role in negotiating problems and enhancing welfare activities,
27.05% of the employees strongly disagree, 14.11% of the employee remains
neutral and 9.41% of the employees agree to the statement. Therefore majority
(49.41%) of the employees disagree that the trade unions play a vital role in
negotiating problems and enhancing welfare activities.
98
Table 3.25: Table showing the level of satisfaction of employees towards the loan
schemes offered by the company

Satisfied 73 85.88
Neutral 5 5.88
Dissatisfied 3 3.52
Total 85 100
Fig 3.25: Chart showing the level of satisfaction of employees towards the loan
schemes offered by the company
100
90
80
70
60
50
85.88
40
30
20
10
2.35 5.88 3.52 2.35
0
Highly Satisfed Satisfed Neutral Dissatisfed Highly Dissatisfed
(Source: Primary data)
99
Interpretation
The above table shows that,majority(85.88%) of the employees are satisfied with
the loan schemes offered by the company, 5.88% of the employee remains neutral,
2.33% of the employees are highly satisfied, 2.35% of the employees are highly
dissatisfied and rest 3.52% of the employees are dissatisfied with this statement.
Therefore majority (85.88%) of the employees are satisfied with the loan schemes
offered by the company.
100
3.2 CHI-SQUARE ANALYSIS
1) Relationship between employee welfare measures and productivity of the

employees.

and productivity of the employees.

and productivity of the employees.
Response
19 30 20 9 7 85
40 23 7 6 9 85
59 53 27 15 16 170
Table 3.26:Table showing Expected frequencies of hypothesis 1
101
O E (O-E)2 (O-E)2/E
19 29.5 110.3 3.7
30 26.5 12.3 0.5
20 13.5 42.3 3.1
9 7.5 2.3 0.3
7 8 1 0.1
40 29.5 110.3 3.7
23 26.5 12.3 0.5
7 13.5 42.3 3.1
6 7.5 2.3 0.3
9 8 1 0.1
15.4
(O-E)2/E=15.4
Degree of Freedom = (R-1) * (C-1)
= (2-1) * (5-1)
= 1* 4
= 4
Level of Significance = 5%
2 = (O-E)2/E
= 15.4
Tabled value = 9.488
Calculated value = 15.4
102
Interpretation
The calculated value (15.4) is more than tabled value (9.488), thus the null
hypothesis is rejected. Therefore there is a significant relationship between the
welfare measures provided and productivity of the employees in the organisation.
2. Relationship between employee welfare measures and employee

retention.
103

Response
12 53 7 6 7 85
35 25 8 7 10 85
47 78 15 13 17 170
Table 3.27: Table showing Expected Frequencies of hypothesis 2
O E (O-E)2 (O-E)2/E
104
12 23.5 132.25 5.62
53 39 196.00 5.02
7 7.5 0.25 0.03
6 6.5 0.25 0.03
7 8.5 2.25 0.26
35 23.5 132.25 5.62
25 39 196.00 5.02
8 7.5 0,25 0.03
7 6.5 0.25 0.03
10 8.5 2.25 0.26
21.92
(O-E)2/E=21.92
Degree of Freedom = (R-1) * (C-1)
= (2-1) * (5-1)
= 1* 4
= 4
Level of Significance = 5%
2 = (O-E)2/E
= 21.92
Tabled value = 9.488
Calculated value = 21.92
Interpretation
105
The calculated value (21.92) is more than tabled value (9.488), thus the null
hypothesis is rejected. Therefore there is a significant relationship between
employee welfare measures provided and employee retention.
FINDINGS
106
1.Majority (48.23%) of the employees have an experience of more than 15 years at
SIMCO ltd
2. Majority (74.11%) of the employees are satisfied with the employees welfare
measures in the organisation
3. Half (49.41%) of the employees are satisfied with the working environment in
the organisation
4. Most (47.05%) of the employees agree that the welfare measures improve their
productivity to a large extent
5. Majority (58.82%) of the employees rate the educational assistance provided for
employees children as good
6. Majority (44.07%) of the employees have a good opinion about the quality of
food supplied in the canteen
7. Majority (52.94%) of the employees have a good opinion about the monthly
production bonus provided by the company
8. Majority (55.29%) of the employees are satisfied with the Bonus and incentives
9.Majority (47.05%) of the employees havea good opinion about the appreciation
and recognition given to employees
10. Majority (41.17%) of the employees strongly agree that bonus and incentives
provided by the company help in employee retention
11. Majority (65.88%) of the employees are satisfied with the shift scheme
12. Majority (55.29%) of the employees are satisfied with the attendance bonus
offered by the company
13. More than half (70.58%) of the employees are satisfied with the basic
amenities offered by the company
14. Majority (40%) of the employees have good opinion about the rest room
facilities provided by the company
107
15. Majority (41.17%) of the employees have an average opinion about the training
programs conducted by the company
16. Majority (74.11%) of the employees are satisfied with leave facilities offered
by the company
17. Majority (52.94%) of the employees have a good opinion about the housing
facilities provided by the company
18. Majority (52.94%) of the employees havea good opinion about the festival
allowance provided by the company
19. Majority (47.05%) of the employees havea good opinion about the grievance
handling procedure followed by the company
20. Majority (35.29%) of the employees agree that welfare measures increases the
productivity
21. Almost (62.35%) all the employees agree that the adequate safety and security
provided by the company help in employee retention
22. Majority (48.23%) of the employees are satisfied with retirement benefits
offered by the company
23. More than half (55.29%) of the employees are satisfied with the insurance
24. Majority (49.41%) of the employees disagree that the trade unions play a vital
role in negotiating problems and enhancing welfare activities
25. Majority (85.88%) of the employees are satisfied with the loan schemes offered
by the company
SUGGESTIONS
Annual Health check ups for employees and their family may be conducted
108
The company may provide some form of recreation activities like sports and
cultural activities so that the employees can get relief from the regular work
pressure.
The company may introduce employee participation programmes so that the
employees will have a feeling that they are the part of the company. This
will reduce stress and increases the efficiencies of the employees.
The organisation may introduce Employee Assistance programmes(EAPs)
EAP includes counselling the employees who seek assistance on how to deal
with alcohol and drug abuse, managing personal finance, handling conflicts
at the work place, dealing with marital related and other family problems
Organisation may increase the number of training programmes for
increasing the productivity of the employees
CONCLUSION
109
The project report titled A study on the effectiveness of employee welfare
measures implemented in SIMCO Ltd, Shornur gave a greater insight about the
organisations welfare measures provided to its employees and its effectiveness
level.
Employee welfare is very important in an organization, because the success

of the organization is determined by the employees services. If the welfare
measures are not properly implemented, the productivity of the employees will
decrease and the employee retention will be affected. . Thus from the study, it can
be concluded that the employee welfare measures implemented in SIMCO Ltd is
effective.
110
BIBLIOGRAPHY
Books
K. ASHWATHAPPA Human Resource Management, Sixth edition,
Tata Mc Graw - Hill Education Pvt. Ltd, New Delhi
C. R. Kothari Research Methodology: Methods & Techniques, Second

Edition, New Age International Publishers, 1990
Websiteshttp://www.simcoindia.com
www.platts.com/commodity/metals
Company Manuals
APPENDIX
QUESTIONNAIRE
111
Sir/Madam,
I, Geethu Suresh,Final year MBA student of Albertian Institute of Management,

Ernakulam,isdoing project on The Effectiveness of Employee Welfare
Measures Implemented in SIMCO Ltd, Shornur. I sincerely request you to
spend your valuable time to fill this questionnaire and I assure you that the
information collected will be used for academic purpose only.
Geethu Suresh
PERSONAL INFORMATION
Name :
Age :
Gender :
Educational Qualification :
Designation :
Salary: a) Below 5,000 b) 5,000-10,000 c) 10,000-20,000
d) 20,000- 30,000
1. How long have you been associated with SIMCO?
a) Less than 5 years b) 5-10yrs c) 10-15 yrs
d) 15 yrs and above
2. Are you satisfied with the employee welfare measures in the organisation?
a) Highly Satisfied b) Satisfied c) Neutral
112
d) Dissatisfied e) Highly Dissatisfied
3.Are you satisfied with the working environment of the company?
4. To what extent the employee welfare schemes help to improve your

productivity?
a) To a large extent b) To a moderate extent
c) Neutral d) To small extent
e) To very small extent
5. How would you rate the educational assistance provided for the education of
employees children ?
a) Excellent b) Good c) Average
d)Poor e) Very poor
6. How would you rate the quality of the food supplied in the canteen?
d) Poore) Very poor
7. What is your opinion about the monthly production bonus provided by the
company?
d) Poor e) Very poor
8. Are you satisfied with the bonus and incentives provided by the company?
113
9. How would you rate the appreciation and recognition given to the employees for
their excellence?
10. Do you agree that the bonus and incentives provided by the company help in
employee retention?
a) Strongly agree b) Agree c) Neutral
d) Disagree e) Strongly disagree
11. Are you satisfied with the shift scheme provided by the company?
12. Are you satisfied with the attendance bonus given by the Company?
a) Highly Satisfiedb) Satisfied c) Neutral
d)Dissatisfied e) Highly Dissatisfied
13. How far are you satisfied with the basic amenities offered by the company to
the employees (Drinking water, Lighting, Ventilation)?
14. What is your opinion about the rest room facilities provided by the company?
114
15. What is your opinion about the training programs conducted by the company?
16. Are you satisfied with the leave facilities provided by the company?
17. What is your opinion about the housing facility provided by the company?
18. How would you rate the festival allowances provided by the company?
d) Poor e)Very poor
19. What is your opinion about the grievance handling procedure followed by the
company?
d) Poor e)Very poor
20. Do you agree that employee welfare measures help in increasing the levelof
productivity of the employees?
21. Do you agree that adequate safety and security measures at workplace helps in
employee retention?
115
22. How far are you satisfied with the retirement benefits offered by the company
(PF, Gratuity and Pension)?
23. How far are you satisfied with insurance schemes in SIMCO Ltd?
24.Do you agree that the trade union plays a pivotal role in negotiating problems
and for enhancing welfare facilities?
a)Strongly agree b)Agree c)Neutral
d) Disagree e)Strongly disagree
25. How far are you satisfied with the loan schemes provided by the company?
a) Highly Satisfied b) Satisfied c)Neutral
d) Dissatisfied e)Highly Dissatisfied
116
117

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1.

1 THEORETICAL BACKGROUND OF THE TOPIC

Employee welfare is a comprehensive term including various services,

Initially, humanitarianism or social awareness motivated labour welfare

To promote economic development by increasing production and

Statutory welfare amenities

Employee Welfare Amenities: Intra-Mural

2. Facilities for storing and drying cloths (section 43)

3. Facilities for sitting (Section44)

6.Shelters, rest room and lunch rooms (section 47)

7.Crches (Section 48)

8. Welfare Officers (Section 48)

Working Hours for Adults

Employment of Women and Young Persons

Annual Leave with Wages

Employee Welfare Amenities: Extra Mural

Allied Welfare Measures:

The Factories Act, 1948

The Industrial Disputes Act, 1947

Payment of Gratuity Act 1972

1.2 INDUSTRY PROFILE

The importance of the metal industry

Agriculture constitutes the backbone of Indian economy and in spite of

made available to the farmer.

It is well known that agricultural production is the combined effect of a variety of

In India people generally use rude and imperfect implements in agricultural

Marginal changes in the design of different implements have been introduced in

The manufacturing of agricultural implements and estate tools plays a dominant

1.3 COMPANY PROFILE

SIMCO mainly concentrates on the production of agricultural implements and it is

SOUTH ROAD WAYS

VRL etc are operating here.

SIMCO is one of the leading firms in the production of agricultural implements.

GOALS AND OBJECTIVES OF THE COMPANY

To improve quality of the equipments

12.00pm to 1.00pm (lunch break)

12.00pm to 1.00pm (lunch break)

PRESENT POSITION OF THE FIRM

SIMCO is currently under the owner of PURAYANNUR industries, a

MILESTONES OF THE COMPANY

Second prize in the National Quality Award for agricultural implements in

The capital of the firm is Rs 500000

First partner - P. DivakaranRs 200000

Second partner - P .ValsalaRs 300000

Profit sharing ratio - 2:3

Register no - OTP \ 09 \ 7 \88

STRUCTURE OF THE FIRM

The capital of the firm is RS 500000 and contributed as under PURAYANNUR

PURAYANNUR VALSALA (sleeping partner) RS 300000

WORKING CAPITAL OF SIMCO

SIMCO ranked first in its quality of products is targeted towards user

Functions of Personnel Management

1. Development of human resources and motivating them to perform well

There are three types of workers in the company.

1. Piece rate workers in the production department.

BENEFITS GIVEN TO EMPLOYEES

This organization provides following retirement benefits to the employees,

Family pension is paid to employees who died before superannuating.

Provident fund is given to the employees by way of equal contributions done

Gratuity is calculated by using the following Formula

Gratuity = basic pay + Dearness allowance x 15/26 x Years of service

EMPLOYEE STATE INSURANCE