A STUDY ON EMPLOYEE WELFARE MEASURES IN AMMAN STEEL AND ALLIED

INDUSTRY AT TRICHY
CHAPTER I
INTRODUCTION OF THE STUDY
MEANING OF WELFARE MEASURES:

Labor Welfare is a term which must necessarily be elastic, bearing a somewhat different
interpretation in one necessary country from another, according to the different social customs,
the degree of industrialization and educational level of the workers. Welfare means faring (or)
doing well. It is a comprehensive term, and refers to the physical, mental, moral and emotional
well-being of an individual.
Trade unions and governmental and non-governmental agencies. It is rather difficult to
define the term labour welfare precisely because of the relatively of the concept. Welfare
includes anything that is done for the comfort and improvement of employees and is provided
over and above the wages. Welfare helps in keeping the morale and motivation of the employees
high so as to retain the employees for longer duration. The welfare measures need not be in
monetary terms only but in any kind/forms,

DEFINITION OF WELFARE MEASURES:

According to the committee on labor welfare, welfare services should mean:

Such services, facilities, and amenities s adequate canteens, rest and recreation facilities,
sanitary and medical facilities, arrangements for travel to and from place of work, and for the
accommodation of workers employed at a distance from their homes;
Such other services amenities and facilities, including social security measures, as
contribute to the conditions under which workers are employed.
MERITS AND DEMERITS OF WELFARE MEASURES:

It is desirable to recollect the service of a typical worker in the context.

His/Her labor helps dig and haul coal from the depth of the earth.
To fetch and refine oil, to build dams and reservoirs, to lay pipes, canals railway
lines and roads.
His/Her actions and interactions within the industrial framework will have a great impact
and influence (or) industrial development.
Welfare facilities tend to make the worker happy, cheerful and confident looking.
Welfare may not directly increase productivity, but it add to general feelings of
satisfaction with the company and cut down labor turnover.

MAIN FEATURES:

It is the work which is usually undertaken within the promises (or) in the vicinity of the
undertakings for the benefit of the employees and the members of their families.
The purpose of providing welfare amenities is to bring about the development of the
whole personality of the worker his social, psychological, economic, cultural and
intellectual development to make him a good works. A good citizen of a good member of
the family.

SCOPE OF WELFARE WORK:

Conditions of work environment

Workers health services
Labor welfare programme
Labor s economic welfare programme
General welfare work
TECHNIQUES OF LABOR WELFARE WORK:

The welfare work is contingent on the efficiency of labor and on the kind of
techniques employed for the purpose.
The employment of techniques his an art and no hard and fast rule can be laid
down for it.
At the outside, it must be stated the, for the purpose of welfare work, the laborer
and his family need to be treated as 1 unit, whiled respective needs of each have
also to be kept in mind.

LABOR WELFARE ACTIVITIES UNDERTTAKEN BY THE ORGANISATIONS.

Certain facilities are provided at the site of work itself, such as subsidized
canteens, crches, medical facilities.
Some facilities relate it the economic needs of workers such as co-operative
credit societies, consumers co-operative stress, staff benefit funds, the
educational assistance to workers children.

TYPES OF WELFARE ACTIVITIES:

Welfare measures inside the work place, and

Welfare measures outside the work place.

WELFARE MEASURES INSIDE THE WORKPLACE:

Conditions of the work environment

Conveniences
Workers health services
Women and child welfare
Workers Recreation
Employment follow-up
 Economic services
Labour management participation
Workers education

WELFARE MEASURES OUTSIDE THE WORKPLACE:

Housing Bachelors quarters. Family residences. according to types and rooms.

Water, Sanitation, waste disposal.
Roads , lighting, parks, recreation playgrounds.
Schools, nursery, primary, secondary and high school.

INTRA - MURAL FACILITIES

EXTRA- MURAL FACILITIES

Welfare facilities by the government

Welfare activities by the trade unions

Welfare work by the voluntary agencies.

THE FACTORIES ACT, 1948:

The welfare amenities provided under the act are given below:
Washing facilities.
Facilities for storing and dry clothing.
Sitting facilities for occasional rest for workers who are obliged to work
standing.
 First- aid boxes (or) clipboards- one for every 150 workers and ambulance
facilitation, it there are more than 500 workers.
Canteens if employing more than 250 workers.
Canteens if employing more than 30 women.

The Mines Act, 1952 The Mines Roles

The Plantations Labour Act, 1951
The Motor Transport Workers Act, 1961
The Contact Labour (Regulation And Abolition)Act, 1970
The Merchant Shipping Act, 1958
Dock Workers (Safety, Health And Welfare) Scheme, 1961
Inter State Migrant Workmen (Regulation Of Employment And Conditions Of
Service)Act,1979

LABOUR DEPARTMENT:

Labour Welfare Sector aim at improving the working conditions, maintenance of better
Industrial relations, strict enforcement of Labour Laws and launching of welfare activities for the
benefit of industrial workers and their families. The Labour department implements about 29
labour legislations with the objective of providing not only monetary benefit like minimum
wages, overtime, bonus etc to the workers but also to ensure their health and safety during the
course employment. The list of the Labour Legislations implemented by this department is as
under:

The Industrial Disputes Act, 1947

The Industrial Employment (SO) Act, 1946
The Factories Act, 1948
The Delhi Shops & Establishment Act, 1954
The Workmen Compensation Act, 1923
The Minimum Wages Act, 1948
The Payment of Wages Act, 1936
 The Motor Transport Workers Act, 1961
The Equal Remuneration Act, 1976
The Payment of Bonus Act, 1965
The Trade Union Act, 1926
The Electricity Act, 2003
The Indian Boilers Act, 1923
The Payment of Gratuity Act, 1972
The Sales Promotion Employees (Conditions of Service) Act. 1976
The working Journalists (Condition) Service & Miscellaneous Provision Act,1955
The Child Labour (Prohibition & Regulation) Act, 1986
The Contract Labour (R & A) Act, 1970
The Punjab Industrial Establishment (Casual, Sick Leave & Festival) Act (as
extended to Delhi)
The Bombay Lift Act, 1939 (as extended to Delhi)
The Maternity Benefit Act, 1961
The Bombay Labour Welfare Fund Act, 1953 (as extended to Delhi)
The Regulation for Licensing and Controlling place of Amusement and
Performance for Public Amusement Act. 1980(other than cinematography)
The Inter State Migrant Workers (RE&CS) Act, 1979
The Bombay Smoke Nuisance Act.
The Labour Laws (Exemption from furnishing returns and maintaining
register by certain establishment) Act, 1988.
The Building and Other Construction Workers (R E & C S) Act, 1996
The Building and Other Construction Workers Welfare Cess Act, 1996
159

There are also some labour laws which are implemented by other departments as follows:

The Bonded Labour (System) Abolition Act, 1976 (by office of Divisional
Commissioner/Deputy Commissioner)
 The Employees State Insurance Act, 1948 (by DHS)
Employees Provident Fund Act, 1952 (by Provident Fund Commissioner)

To handle these Legislations and increased economic activities with ease, responsibilities of the
Labour Department are as follows: Enforcement of Labour Legislation
Conciliation of Industrial Disputes.
Maintenance of Industrial Peace and Harmony.
Measures for safety, health and welfare of labour.
Aims at improving the living standard of the workers, particularly the Industrial
workers. The schemes are included for the improvement of the working conditions of
the workers, better industrial environment, proper enforcement of the labour laws and
welfare programmes.

The Delhi Labour Welfare Board and the Building and Other Construction workers
Welfare Board have been constituted to identify and implement various welfare activities
for the workers engaged in organized as well as unorganized sector.

LABOUR WELFARE PROVISIONS:

Chapter v of the act provides for welfare facilities. Specifically, the act provides for
adequately screened washing facilities for the use of male and female workers.

WELFARE FUNDS:

In order to provide welfare facilities to the workers employed in mica, iron- ore,
manganese ore and beedi rolling, welfare funds have been established to supplement the efforts
of employers and the state governments under respective enactment. The funds have been
credited by levy of less on production, consumption (or) export of mineral, and in the case of
beedi rolling, on the number of sticks rolled. The funds are used to provide medical facilities,
housing, drinking water, schooling, recreative, and to forth.
APPROACHES TO LABOUR WELFARE:

Approaches to employee welfare refer to the beliefs and attitudes held by

agencies which provide welfare facilities. Some agencies provide welfare facilities inspired by
religious faith, others as a philanthropic duty and the like.

ADMINISTRATION OF WELFARE FACILITIES:

1) Welfare policy
2) Organization for welfare
Trend analysis
Opinion survey

The DISBURSED SCOPES, ITEMS AND RATIOS OF EMPLOYEES WELFARE

FUND:

The disbursed scopes, items and ratios of the employees' welfare fund are given in
accordance with Paragraph 1, Article 7 of Employees' Welfare Fund Act as follows:
The disbursed scopes and items:

WELFARE BENEFITS:

Wedding, funeral, bearing benefits for injury and disease, emergency aid and loan,
disaster assistance etc.

EDUCATIONAL GRAINTS:
Subsidies for employees' advanced study and educational fees for their children etc.
RECREATION ACTIVITIES:

Culture and health activities, group activities, tourism and recreation facilities etc.

OTHER WELFARE ITEMS:

Festival grants, interests subsidy for the housing loan, employees' deposit insurance,
purchasing house with employee deposit, child-care and spouse dependants subsidies, retired
employees' benefits and other benefits etc.

NEED OF THE STUDY

To know about the Constitutional provisions in AMMAN STEEL AND ALLIED

INDUSTRY AT TRICHY.
To find whether Labor welfare helps in providing good industrial relations .

To know about the employees satisfaction towards welfare measures.

To find out the facilities entitled by AMMAN STEEL AND ALLIED INDUSTRY AT
TRICHY

IMPORTANCE OF THE STUDY

It helps in improving recruitment.

Employers get stable labor force by providing welfare facilities. Workers take active
interest in their jobs and work with a feeling of involvement and participation.

It improves moral & loyalty of workers.

It reduces labor turnover & absenteeism.

It helps in increasing productivity & efficiency by improving physical & mental health.

It helps in improving industrial relation & industrial peace.

 SCOPE OF THE STUDY

The present study has been undertaken to study find out effectiveness of employee
welfare measures in AMMAN STEEL AND ALLIED INDUSTRY AT TRICHY
To find out the practical difficulties involved in welfare measures that can be
evaluated through this study.
The study can be used to bring out the solution for the problem faced by the
employees availing the welfare measures.
Through the study, company would be able to know the satisfaction level of
employee on welfare measures.

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE:

To study the employees welfare measures in AMMAN STEEL AND ALLIED INDUSTRY
AT TRICHY

SECONDARY OBJECTIVES:

To identify the various welfare measures provided to the employees.

To know their satisfaction towards the welfare measures

To understand how welfare measures improve the motivation of the Employees.

To find out employees preference regarding welfare measures which they like to have in

future.

CHAPTER II
REVIEW OF LITERTAURE
REVIEW OF LITERATURE
1. S.KUMAR (1993). The author concluded the objective of the study is to find out the
welfare facilities provided on the and the employees suggestion and opinion about
welfare measures by using structure questionnaire and by concluding personal simple
random sample for a sample of 100. The study revealed the welfare measure provided by
the company was adequate except for a few systems like housing scheme and pension
scheme.
2. JOHRI C.K AND SHARMA D.I, Financing and administration of labour welfare
SriRam centres for industrial relation 1968, New Delhi. Analysis on the lines of
important aspect tobe much more deficient is considered as a favor by the employer to
employee in terms of providing facilities like having education and recreation.
3. R.NAJEED (1996), labour welfare measure .The main objective of his study is to
identify the worker welfare measure and toanalysis the problem in the implementation of
the welfare measure to identify the need for improved working condition. Labour welfare
may be viewed as total concept, as a social concept and as a relative concept.
4. K.Srikanth July 2004. The productivity of an organization is dependent on
occupational health and employee well being. He concluded the research addressing
occupational health and employee well being concentrates on 4 major areas in
organizational psychology, job insecurity, work hours, control at work and managerial
style. The heightened pressure can impact their behaviour towards employees.
5. S.K.SRIVASTRA (2004) in a study on Impact of labour welfare on employee attitudes
and job satisfaction, found that, if the management goes on working for welfare of
labourers, the labourers feel satisfied with their job and the get the motivation towards
their work. For the study two hundred workers were selected from private and public
sector with the help of incidental sampling method and both the sectors have been taken
from Kanpur city. Further the result of the study indicated that welfare activities/facilities
affect the workers attitude towards management and job satisfaction in both sectors
6. SUMATHI REDDY 2006.Employee health and wellness is a key concern for
employers and employees alike. Intense competition, tendency for a more materialistic
life and intensification of work due to modern production and processing technology are
some of the factors contributing towards an imbalanced life style. Unless conscious
 measures are taken relating to health and wellness, it will lead to loss of productivity and
working days and loss of valuable talent.
7. According to Mr. Robert (2006) Employee welfare in general, these are the benefits
thatan employee must receive from his/her company, like allowances, housing for those
companies who provides, transportation, medical, insurances, food and some other way
where the employee has rights to demand.
8. According to MR. RAVIKUMAR (2003) Welfare includes anything that is done for
the comfort and improvement of employees and is provided over and above the wages.
Welfare helps in keeping the morale and motivation of the employees high so as to retain
the employees for longer duration. 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
relations and insurance against disease, accident and unemployment for the workers and
their families.
9. According to MR. R. PRADEEP (2009) Employee welfare is a comprehensive term
including various services, benefits and facilities offered to employees & by the
employers. Through such generous fringe benefits the employer makes life worth living
for employees.Welfare includes anything that is done for the comfort and improvement
of employees and is provided over and above the wages. Welfare helps in keeping the
morale and motivation of the employees high so as to retain the employees for longer
duration. 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 relations and insurance
against disease, accident and unemployment for the workers and their families.
10. According to WIKIPEDIA Welfare is the provision of a minimal level of wellbeing and
social support for all citizens. In most developed countries, Welfare is largely provided
by the government, in addition to charities, informal social groups, religious groups, and
inter-governmental organizations. In the end, this term replaces "charity" as it was known
for thousands of years, being the voluntary act of providing for those who temporarily or
permanently could not provide for themselves.
11. Conventions and Recommendation of ILO (1949) sets forth a fundamental principle at its
26th conference held in Philadelphia recommended some of the measures in the area of
welfare measures which includes adequate protection for life and health of workers in all
occupations, provision for child welfare and maternity protection, provision of adequate
nutrition, housing and facilities for recreation and culture, the assurance of equality of
educational and vocational opportunity etc.,
12. Report of National Commission on Labour (2002), Government of India, made
recommendations in the area of labour welfare measures which includes social security,
extending the application of the Provident Fund, gratuity and unemployment insurance
etc.
13. Shobha Mishra &ManjuBhagat, in their Principles for Successful Implementation of
Labour Welfare Activities, sated that labour absenteeism in Indian industries can be
reduced to a great extent by providing good housing, health and family care, canteen,
educational and training facilities and provision of welfare activities.
14. The principle for successful implementation of labour welfare activities is nothing but an
extension of democratic values in an industrialized society. P.L.Rao, in his Labour
Legislation in the Making, opines that professional bodies like National Institute of
Personnel Management should constitute a standing committee to monitor the proceeding
in the Parliament regarding the labour welfare measures
15. Binoyjoseph,josephinjodey (2009), studies in the article points out that, the structure of
welfare states rests on a social security fabric. Government, employers, trade unions have
done a lot to promote the betterment of workers conditions.
16. David, A Decenzo (2001) and Stephen P. Robbinsin their book, Personnel / Human
Resource Management explained the various benefits and services provided by the
companies to their employees. According to them, the legally required benefits and
services include social security premiums, unemployment compensation, workers
compensation and state disability programs. They felt that the cost of the voluntary
benefits offered appears to be increasing.
17. Michael (2001) in his book, Human Resource Management and Human Relations said
that the provision of intra-mural and extra-mural welfare facilities help in improving the
 quality of work life of employees thereby good human relations will develop among
different cadres of employees.
18. Punekar, Deodhar and Sankaran (2004) in their book, Labor Welfare, Trade
Unionism and Industrial Relations stated that labor welfare is anything done for the
comfort andimprovement, intellectual and social-well being of the employees over and
above the wages paid which is not a necessity of the industry.
19. Aswathappa (2010) in his book, Human Resource Management discussed the various
types of benefits and services provided to employees in terms of payment for time not
worked, insurance benefits, compensation benefits, pension plans etc. He also discussed
the ways to administer the benefits and services in a better way.

20. Misra (1974 carried out a research aimed at sociological analysis of the labour welfare
problems of sugar industry. The analysis was based on the firsthand data collected from
the sugar factories of Eastern Uttar Pradesh. The study found that the conditions of work
in sugar factories of eastern region of Uttar Pradesh were not very satisfactory
particularly in respect of safety measures, cleanliness, sanitation, latrine facilities,
drinking water, rest rooms, etc. It also points out that the provisions for leaves and
holidays, lighting, housing, medical and education are far from satisfactory.
21. Koshan (1975) pointed out that in spite of statutory provisions and enforcing agencies in
India, the labour welfare facilities were absent and the cement industry was the only one
where provisions were adequately enforced. The study insisted the need for overhauling
and tightening the machinery of inspection. Appointment of welfare inspectors for
different industries, distinguishing the duties of factory inspectors from those of welfare
inspectors to submit annual and quarterly reports and empowering the welfare inspectors
to fine in case of default are some of the steps suggested in this study.
22. Monga (1980) conducted a study on implementation and awareness of labour laws in
Haryana. He focused mainly on the machinery for implementation of labour laws and the
impediments confronting the implementation. He has found that the staff deployed for
enforcement of labour laws are inadequate, inspections are not frequent, the status of
supervision of returns under various laws reveals a dole some picture, procedures are
 frivolous and vexatious, penalties imposed for offending legislation in the state are fine
and the penalty of imprisonment is rarely imposed. He concludes that the absence of
adequate awareness about the laws is the major factor for inadequate enforcement of law.
23. Srivastava (1984) states that work is important in mans life since time immemorial.
Whatever may be the reason for working, one thing is certain that man has continued to
work. The urge to work seems to be deep rooted in most men and work is viewed as
much more than a means of seeking economic gratification. Work seems to serve many
other functions for an individual. An individuals sense of well being, of doing something
worthwhile, of having purpose in life, seems to be associated with work.
24. Deepak Bhatnagar (1985) in his study on Labour Welfare and Social Security
Legislation in India evaluated the effectiveness of the Employees State Insurance
Scheme. He has found that the employees are uncomfortable on the issue of their
contribution towards the scheme. Majority of the employees are not fully aware of
different benefit schemes as admissible under the Act. Medical certificates are easily
available to the insured persons. He suggests that steps should be taken to curb this
tendency of tax certification. Bhatia (1986)6 in his study on the administration of
Workmen Compensation Law has found that the graver the effect of the accident, the
need of help of a trained lower becomes more frequent.
25. There seems to be Srivastava, A.K (1984). an immense need of providing free legal aid
and advice to the claimants under the Workmen Compensation Act. He says that the
quantum of compensation fixed by the law does not appear to have been formulated with
an eye to the future. There is a need for enhancement of compensation in this age of
inflation.
26. Rajwant Singh (1987) states that all the difficulties in the implementation of labour
welfare measures must be overcome, before the dawn of the new century is reached. The
country must find ways of meeting peoples basic needs by giving them access to sources
of income, food, education, housing, health and hygiene.
27. Rawat (1988) has attempted an investigatory and analytical study of the state policy on
the subject of formulation of legislation relating to labour welfare and implementation of
welfare measures and programmes in various industrial sectors in industrial areas in the
country. He concludes that there is a need in the country to establish more welfare funds
 for agricultural, unorganized labour, construction workers, handloom workers, etc., has
been done in the case of coal, mica, iron ore and limestone and dolomite mine workers.
28. Sellers Bob (1990) in his article titled Executive Compensation: Bankers Jump into
Golden Parachutes states that the golden parachute contract giving key financial
institution executives security in the event of a change in control, must be carefully
structured to avoid challenges. The board must approve only those plans which are
consonant with the exercise of fiduciary duties and whose payments are related to the
value of the employees services. Also the parachutes size should relate to the
institutions e.g. at smaller institutions, the benefits level might be half of annual salary,
not two to three times salary. The plan needs to be structured to avoid falling under
ERISAs mandatory funding rules.
29. Dirks H. John and Salow Mary (1990) have stated that most of the firms have been
accounting for post-retirement benefits other than pensions (OPEB) on a cash basis as
benefits are paid to retirees
30. Yakushev (1991) in his paper titled New Approaches to Social Security Provision in
the USSR states that social security plays an important social and economic role in the
USSR. In order to improve social security provisions, it is necessary not only to increase
expenditure substantially, but to ensure better organization not only to raise the level of
minimum social protection for needy persons, but also to overcome leveling effects in the
system.
31. Pond James (1991) in his article titled Exploring Options in Employee Services
reports that with the growing emphasis on keeping employees comfortable and happy,
many firms are providing their workers with more than a traditional benefits package.
One perquisite that is often provided is an on-site food service. Other services include on-
site fitness centers, day-care facilities, and small retail establishments such as stationery
stores. Some firms even provide health care in the home for employees children or
elderly parents. Not every firm will be able to provide its employees with every one of
the services, but those companies that can provide one or more of the amenities will
benefit from higher productivity, lower turnover, and improved morale.
32. Matthes Karen (1992) points out that todays workers switch jobs, and even careers,
several times over the course of their lifetime. As a result, traditional pension plans,
 which use length of service as a primary factor to determine retirement income, do not
hold the same appeal for todays Pond James (1991). Defined contribution plans attempt
to solve this problem by basing retirement income on an employees average career
income. In this way, employees can leave their jobs after only a few years of service and
receive an acceptable sum of money. During the past 3 years, employers have terminated
more than 84000 pension plans, and defined benefit plans have accounted for more than
1/2 of those terminations. A cash balance plan, a hybrid of both defined benefit and
defined contribution plans, provides employees with individual accounts that can grow
over time based on a percentage of pay plus interest credits.
33. Thomas Susan (1992) states that CIGNA Corporations subsidy project was created to
review all subsidized employee amenity programs and recommend an improved program
mix that would be the best value possible for the resources invested in the program. The
first step was to appoint a task force of representatives from employee relations,
corporate staffing, employee services, and the human resources from financial area. In
addition, 13 focus groups of about 10 employees each were conducted across the US.
34. Getubig and Schmidt (1992) have defined social security based on the expansion of the
elements of social security as any kind of collective measures or activities design to
ensure that the members of the society meet their basic needs such as adequate nutrition,
shelter, health care and clean water supply and are protected from contingencies (illness,
disability, death, unemployment and old-age) so that they are able to maintain a standard
of living consistent with social norms. Hence, the definition of social security is extended
to include other aspects of existence, which relate to accessing adequate food, health care
and shelter to vulnerable groups.
35. Cline and Andy (1993) in their paper entitled More Companies Burn Benefits Candle at
Both Ends state that if we need child care, chances are many that the company offers a
benefit to cover expenses, or a referral service, or a stated policy, or at least some form of
time off or flextime. When the baby boomers have reached middle age, they are
beginning Getubig, I and Schmidt, S (1992).
36. Scott Diana and Petrone Kimberley Ryan (1993) in their article entitled What You
Need to Know Now about Accounting for Postemployment Benefits state that SFAS
112, Employers Accounting for Post-employment Benefits, is the culmination of the
 FASBs year project to address employers accounting for pensions and other employee
benefits provided after employment. The purpose of the statement is to ensure greater
uniformity in accounting for these benefits by requiring employers to accrue the expected
cost of benefits likely to be paid.
37. Guhan (1994) in his article entitled Social Security Options for Developing Countries
states that the debate on social security in developing countries emerged largely in the
1980s, prompted by several factors. One factor was the acknowledgement of the glaring
dichotomy in the availability of social security between the industrial and developing
countries. Another factor was the realization that even the portfolio of direct poverty
alleviation measures could not be depended upon to provide adequate, timely, or
guaranteed protection to insure the poor against identifiable forms of deprivation.
38. Huth Stephen (1995) in his article titled How Will You Nip this One at the Source?,
states that in the last few years, various organizations have aggressively begun to solicit
all employee benefit functions. Some have labelled this process as total benefits
outsourcing. Initially, large benefits consulting firms and large employers themselves
began to implement the notion of an employee benefits service center, a separate
organization that could in effect take over the companys day-to-day employee benefits
business. More recently, this trend has spread to other vendors in the benefits business.
With a good deal of electronic dazzle and a hefty dose of employee responsibility, an
outside employee service center can offer a whole new way of doing business.
39. Pawan (1996) has made an attempt to study the human resource management practices in
six different manufacturing industries in Britain. The primary data were collected from
employees. The questionnaire consists of sections which emphasize issues such as the
structure of the human resource Benedict Mary Ellen and Shaw Kathryn (1995).
40. Venkatraman (1997) in his study entitled Human Resource Development: Concept,
Theory and Practice rightly focuses on the practice of human resource development as
far back from the year 1900. He is the first among the foremost industrialists in providing
facilities like health care, education, housing, retirement benefits and canteen facilities to
the employees.
41. Michael E Smith (1998) in his article human resources management team made a
strategic decision to bring the administration of its benefits plans in-house and implement
 a benefits administration software module from the same company that produced its
payroll software. The company was interested in implementing employee self-service
applications to automate certain transactions, as well as provide employees the option to
access trained benefits associate if they Venkatraman, P (1997).
42. Bruce Shutan (2000) in his article entitled Staking a Claim has stated the group health
benefits administration issues. Health care benefits have become significant issues at Fox
Entertainment Group Inc., where the average age is 34, length of service runs about 4 1/2
years and the companys per capita medical cost is $5,400 per employee. Drug benefits
feature a formulary 20% employee co-pay, utilization review and incentives to use
generic brands. Efforts have been taken to improve employee service and analyze data
and build upon the companys hospital, only network, formalize disease management and
require conclusive results for alternative medicine approaches. He has outlined how
employers are reining in health care costs through several strategies, including power
purchasing, portfolio management, and plan engineering.
43. Grover Chris (2003) has explored the aim of new labours welfare reform programme to
reconstitute the reserve army of labour so that it is able to fulfil its role in managing
economic stability. The emphasis is upon ensuring that labour is as cheap as possible for
capital to employ through various direct and indirect wage subsidies and requiring more
benefit dependent groups to compete for paid employment.
44. Michael Kiley (2003) states that unemployment insurance programs balance the benefits
of consumption smoothing against the disincentive effects of unemployment benefits.
This balance is likely sensitive to the cyclical state of the economy, and hence the
generosity of benefits should also respond to the business cycle. The nature of such
responses in an optimal unemployment insurance (UI) program is analyzed in a simple
model.
45. Susanna Loeb, et al. (2003) state that as welfare-to-work reforms increase womens
labour market attachment, the lives of their young children are likely to change. This note
draws on a random assignment experiment in Connecticut to ask whether mothers rising
employment levels and program participation are associated with changes in young
childrens early learning and cognitive growth.
 CHAPTER III
RESEARCH METHODOLOGY

RESEARCH MEANING

Research is an art of scientific investigation. According to Redmen and Mary defines

research as a systematic effort to gain knowledge.

Research methodology is way to systematically solve the research problem. It is a plan of

action for a research project and explains in detail how data are collected and analyzed. This
research study is a descriptive research study.

RESEARCH DESIGN

A research design is a plan that specifies the objectives of the study, method to be
adopted in the data collection, tools in data analysis and hypothesis to be framed.

A research design is an arrangement of condition for collection and analysis of data in a

manner that aims to combine relevance to research purpose with economy in procedure.

NATURE OF DATA

PRIMARY DATA

The primary data are collected from the employees of AMMAN STEEL AND ALLIED
INDUSTRIES AT TRICHY through a direct structured questionnaire.

SECONDARY DATA

Company profiles, websites, magazines, articles were used widely as a support to primary
data.

SAMPLING SIZE AND TECHNIQUE

SIZE OF THE SAMPLE

 It refers to the number of items to be selected from the universe to constitute as a sample.
In these study 100 employees of AMMAN STEEL AND ALLIED INDUSTRIES AT
TRICHY was selected as size of sample.

SAMPLE DESIGN
The sampling technique used in this study is simple random sampling method. This
method is also called as the method of chance selection. Each and every item of population has
equal chance to be included in the sample.

POPULATION DESIGN

The population of this study is the total employee in the company. It is finite
population. There are four production centers for the organization for this study I have taken only
employees in one production centre.

QUESTIONNAIRE

The questions are arranged logical sequence. The questionnaire consists of a variety of
questions presented to the employees for the response. Dichotomous questions, multiple choice
questions, rating scale questions were used in constructing questionnaire.

STATISTICAL TOOLS USED

To analyze and interpret collected data the following statistical tools were used.
1) Percentage method
2) Weighted average method
3) Chi-square analysis
4) Correlation
5) Regression

PERCENTAGE METHOD

The percentage is used for making comparison between two or more series of
data. It is used to classify the opinion of the respondent for different factors. It is calculated as
 No. of respondents favorable
x 100
Percentage of respondent =
Total no of respondents

WEIGHTED AVERAGE METHOD

The weighted average method can be calculated by the following formula. This tool is
used to find the rank given by the respondents to the welfare measures. It can be calculated as

XW = WX / X

Here

XW represents the weighted average

X represents the value of variable
W represents the weight given to the variable.

CHI-SQUARE ANALYSIS

Chi-square analysis in statistics is to test the goodness of fit to verify the distribution of
observed data with assumed theoretical distribution. Therefore it is a measure to study the
divergence of actual and expected frequencies.

The formula for computing chi-square is as follows.

Chi-square = {(O-E)2 / E}

The calculated value of chi-square is compared with the table of chi-square for the given
degrees of freedom at the specified level of significance. If the calculated value is greater than
the tabulated value then the difference between the observed frequency and the expected
frequency are significant. The degrees of freedom is (n-2) where n is number of observed
frequencies and in case of contingency table the degrees of freedom is (C-1) (R-1) where C is
number of columns and R is number of rows.

It is used to find the relation between communication in work place and work
satisfaction. It is used to find the relation between welfare satisfaction and work satisfaction it is
used to find the relation between experience of respondents and work satisfaction

CORRELATION

The correlation analysis deals with association between two or more variables. The
correlation does not necessary imply causation or functional relationship though the existence of
causation always implies correlation. By itself it establishes only co- variance. It is used to find
the degree of relationship between motivation and work satisfaction.

Cov(x, y) = 1/n x y x y
x = 1/n x2 x 2

y = 1/n y2 y 2
Cov(x, y)
r= x X y

Here,
r = co-efficient of correlation

REGRESSION

The Regression analysis deals with the nature of association between two or more
variables. In regression analysis we are concerned with the estimation of one variable for a given
value of another variable on the basis of an average mathematical relationship between the two
variables.

Y= a + bX
LIMITATIONS OF STUDY

Time is the important limitation. Due to time constraints only limited population is taken

for the study.

Findings based on this study cannot be used in other organizations.

There are chances of misrepresentation responses.

The biased view of the respondent is another cause of the limitation

SREE AMMAN STEEL CORPORATION

ABOUT THE INDUSTRY
Shri amman steel and alied industries (sasai) was established as a partnership firm in 1998 by the
family members of MR. SP.MUTHURAMALINGAM, the doyen of the steel industry of south
india and having its registered office at silampudayan patti road, nagamangalam, trichy-12.
Sasai is an iso 9001:2000 certified company and very recently the status of the firm has been
converted into private limited company under part ix of the companies act, 1956.
Mr.M.Somasundarm, managing director is managing the whole affairs of the company.
The company is engaged in the business of manufacturing of bars and rods of various sizes and
specifications according to the needs of the customers up to a capacity of 3000 tonnes per month
on double shift basis. The rolled products are steel rods (ctd / tmt/ crs) from 6mm to 25mm.
These rolled products, namely 6, 8, 10, 12, 16, 20 and 25mm rods are extensively used in
building and other civil construction works.

The rolling mill unit is spread over 6 acres of free hold land with first class construction of about
40,000 sq ft of factory building with adequate infrastructure facilities like power, transport and
communication facilities. Trichy also has an international airport and has good connectivity with
all other parts of the state.

Sasai steadily grows on its core ideals of quality management, constant innovation and
understanding customers needs. Through continuous quality improvements in steel products
sasai were able to strengthen its position as a market leader. The companys products command a
10% premium over the market prices. Now sasai emerging as top one among the reputed rolling
mills in tamilnadu. If all the efforts of managing director and the dealers succeed the amman-try
steel would continue to remain on the top berth in the steel market in the future years also.

FACTSHEET

Basic Information
Nature of Business Exporter
Additional Business Manufacturer

OUR MANAGEMENT
The company is managed by the board of directors and the board of sasai is headed by
sp.Muthuramalingam who is in the field of steel for 4 decades. Mr.M.Somasundarm,
managing director is managing the whole affairs of the company.

ABOUT MR.M.SOMASUNDARM:

Mr.M.Somasundarm, managing director born in 1975, he is mba. He is managing the

whole affairs of the company. In his 1st decade at amman group mr.M.Somasundaram
has seen it all and he went on to implement big plans including two dramatic attempts,
first by putting a steel melting unit at karaikal in 2002 to serve as an ancillary unit to
sasai, supplying quality ingots to sasai and then by starting another rolling mill at trichy
in 2006. The plant ranks among the indias top 25 heavy and advance rolling facilities.
The new rolling mill unit is spread over 10 acres of free hold land with first class
construction of about 50,000 sq ft of factory building with adequate infrastructure
facilities like power, transport and communication facilities.
 SUCCESS OF AN EXTRAORDINARY VISION:

His vision and single mindedness can be gauged by the fact the when he was appointed as
a md in 1999, sasai was a fledging ssi unit with the nominal production facilities and
sasai profit was rs.6.72 lakhs on a revenue of rs.7.37crores. Last year 2007-08, sasai
posted a profit of rs. 182.93 lakhs on sales of over 125 crores. This would not have
happened had mr. M.Somasundaram sat back satisfied at rs. 6.72 lakh, which many
thought was pretty good for an ssi unit. Not mr. M.Somasundaram. Within very short
period of operations of the rolling mill, sasai s products reinforcement of bars used in
the construction industry have established a name in the market and are able to command
a premium in the price over that of other top re-rollers.

There is a trend towards backward integration into steel making by re-rollers. Mr.
M.Somasundaram proposes to encash his immense goodwill, standing reputation and
extension network of contacts commanded by amman group. Accordingly he plans to
invest 60 crores in two phases to set up a new sponge iron and power plant nearer to iron
ore mines at nayudupeta, nellore dt. Andhra pradesh. The new company will start under
the name of amman-try sponge and power (p) ltd. The proposed sponge iron unit is
spread over 100 acres of land with first class construction of factory building with
adequate infrastructure facilities like power, transport and communication facilities.
Sasais growth is being supported by a robust increase of dealers support in the steel
market. Last year, the company achieved sales of 36000 mt of bars and rods, this includes
2nd mill production of bars and this year it is expected to meet or even surpass this
figure,

He expects sasai to be among the top 10 companies of south india in 5 years. Having
achieved his all big plans and premium on sasai products in the tough and competitive
market, this is certainly not a distant dream for him.
 The government of tamilnadu department of industries and commerce ( trichy) has
awarded mr.M.Somasundarm as winner of entrepreneur for the year 2006-07 and we look
forward to him sealing greater heights.

SUPPORT:

Mr.Tamilarasu , technical director had joined in 1999 and he is in the rolling mill field for
more than two decades and he has executed several rolling mill projects in tamilnadu. He
had successfully introduced amman-try crs bars in 2008 which is being well received in
public and construction field. He is behind the scene that plays a vital role by providing
technical support the company. The plant and machinery have been regularly upgraded
and maintained by him to ensure production on efficient lines.

OUR MILESTONES
1998

Amman steel alied industries (sasai) established

1999

Amman-try steel production commenced

2000
Amman-try steel was well received by the public and construction field
2001

Improvement of amman try steels market share in more remunerative sub segments of the steel
market
2002

Establishment of steel melting unit to serve as an ancillary unit to sasai, supplying quality ingots
to sasai
2003
Rolling mill products were certified by iso 9001:2000 by the bvqi, london
Sasai carried out an expansion programme and the capacity was enhanced to 3000 mts on double
shift basis
2004

With the approval of isi & isos recognition the sasai is in a position to claim premium on its
products.
2005

Wind mill power generation started

T.M.T bars introdcued
Expansion of rolling capacity
2006

Started ii-nd rolling mill unit in the name of amman try steels private ltd.
The total capacity of two rolling mills is 8000 mt (on double shift basis) as compared to 3000
tonnes in 2005 recording a growth of over 100%
2007

CRS bars introduced

Dealership net work comprising of 150 dealers established
2008

2nd wind mill generation project implemented

2009

AMMAN- TRY ENTERS THE SPONGE WORLD:

Towards backward integration- proposal to invest 60 crores in two phases to set up a new sponge
iron and power plant nearer to iron ore mines at nayudupeta, nellore dt. Andhra pradesh
OUR GROUP OF COMPANIES
AMMAN STEEL CORPORATION (ASC).
Amman steel corporation is promoted by mr.Sp. Muthuramalingam, in existence since 1978. Asc
is the step stone and back bone of amman group.
The activity of the asc is to supply various kinds of steel scrap to steel making units and
foundries. Asc has been importing steel scrap from various countries and procuring local scrap
which is internally generated by steel companies, engineering industries and public sector units
like railwawys, bhel, neyveli lignite corporation.

Shri amman steel and alied industries (p) ltd., (sasai)

The group's first manufacturing facilities were setup in 1998 for prepare of m.S. Bars & rods out
of m.S. Ingots / m.S. Billets.
The company is engaged in the business of manufacturing of bars and rods of various sizes and
specifications according to the needs of the customers. The company currently has rolling
capacity of 36000 ton/year (on double shift basis).
Over the years, mr. M.Somasundaram., managing director build it up into a premier rolling mill
unit and were certified by iso 9001 : 2000 by bvqi, london
Sasai involved in the production of reinforcement of ctd/thermo mechanically treated / crsbars of
sizes 8 mm, 10mm, 12mm, 16mm, 20mm, 25 mm.

SHRI ULAGANAYAGI AMMAN STEELS (SUAS)

In 2002, amman group acquired a furnance unit for prepare of the steel ingot out of m.S.Scrap.
Shri ulaganayagi amman steels functioned as a feeder unit to shri amman steel and alied
industries., and supplying quality ingots to them. In 2007, the existing 3mt furnace was replaced
by 6 ton induction furnace for aiming stabilizing production and the modern techniques applied
in the new furnace will result in increased production.

AMMAN-TRY STEELS (P) LTD.,

Amman-try brand has been recognized for the best quality and its product commanded a sizable
premium on the market. As the company (sasai) was not able to meet the full demand,
mr.M.Somasundaram had decided to double the existing supply and increase the amman try
share in the market by starting another rolling mill at trichy in 2006. The plant ranks among the
indias top 25 heavy and advance rolling facilities. The new rolling mill unit is spread over 10
acres of free hold land with first class construction of about 50,000 sq ft of factory building with
adequate infrastructure facilities.
Amman-try steel privated ltd also involved in the production of reinforcement of ctd/thermo
mechanically treated / crs bars of sizes 6mm, 8 mm, 10mm, 12mm, 16mm, 20mm, 25 mm and
similarly new rolling mill products are covered by bis - fe 415 and 500 grade.

AMMAN-TRY SPONG POWER PRIVATE LTD.

The increasing trend in the prices of steel scrap and its short supply lead the steel technologists to
find a suitable charge mix in the form of sponge iron. Sponge iron is the better substitute for
scrap for steelmaking through induction furnaces due to homogenous nature and improved
productivity.

RADHA TEXTILES (P) LTD (RTL)

In 1997, mr.Sp. Muthuramalingam acquired a textile unit at manaparai, trichy dt.
Mr.M.Subbaiya, managing director the first son of mr.Sp. Muthuramalingam managing the
affairs of the company. The managing director is being assisted by well trained personnel and
professionals at all levels.
Rtl started with an initial spindle capacity of 6032 spindles and were used polyester staple fiber
as raw material and spin the yarn according to the market requirements in due course, rtl
switched over to preparer of cotton yarn and in a short period, company earned a good name in
the yarn market.
MAJOR MARKET
Shri amman steel and alied industries (p) ltd., is a company that is forever challenging itself to
innovate and beat its own high standard as a market leader in isi bars segment.
The companys products command a 10% premium over the market prices. Now sasai emerging
as top one among the reputed rolling mills in tamilnadu. If all the efforts of the dealers succeed
the amman-try steel would continue to remain on the top berth in the steel market in the future
years also.
We expect sasai to be among the top 10 companies of south india in 5 years. Having achieved
premium on sasai products in the tough and competitive market, this is certainly not a distant
dream.
Improvement of amman try steels market share in more remunerative sub segments of the steel
market
Dealership net work comprising of 150 dealers established

A STUDY ON WELFARE MEASURE IN AMMAN STEEL AND ALLIED INDUSTRY

AT TRICHY

QUESTIONNAIRE

1. Name:
2. Age:
a) Below 20 b) 21-30 c) 31-40 d) 41-50 e) Above 50
3. Category
a) Highly skilled b) Skilled c) Unskilled
4. Department
a) Sales b) Marketing c) Research d) HR e) Finance
5. Gender
a) Male b) Female
6. Marital status
a) Single b)Married
7. Education level
a) 10-12 b) Diploma-UG c) PG
8. Length of service:
a) Below 5years b) 6-10 years c) 11-15 years d) 16-20 years e)Above 20

9. Please provide the following rates:

(1.Highly satisfied, 2.Satisfied, 3. Neutral, 4.Dissatisfied, 5.Highly dissatisfied)
S.No Welfare Highly satisfied neutral dissatisfied Highly
measures satisfied dissatisfied
1 Drinking water
2 Latrines,
urinals&
Spittoons
3 Canteen
4 Crches
5 Uniform
6 Counseling for
staffs
7 Regular medical
checkups
8 Recreation
facilities
9 Shift timings
10 Leave benefits
11 Gratuity
12 Provident fund
13 Suggestion box
14 Staff association
15 Training
&development
programs
16 Housing
17 transportation
18 Pay advance
19 Overtime
allowance
20 Shift
allowance
21 Festival
allowance
22 Health insurance
23 Maternity
benefits
24 Medical benefits
to family
25 Wards education