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ournal of Business Management & Social Sciences Research (JBM&SSR) ISSN No: 2319‐5614

Volume 2, No.2, February 2013

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www.borjournals.com Blue Ocean Research Journals 57

Provision Of Welfare Under Factories Act & Its Impact

On Employee Satisfaction

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

Nirma University, Ahmedabad, GujaratDr.Ashokkumar M., Professor & Head, Department of Management, Karpagam University, Coimbatore,

Karpagam University, Tamilnadu, India

ABSTARCT This Paper contains the overviews of “ENGINEEIRNG INDUSTRY”. This also contains the different welfare

provisions to be given to the employees under the Factory Act 1948. This paper contains the research on

employee satisfaction towards welfare facilities under the act. This includes the study of 50 employees from

each of the company i.e. Jyoti CNC, Rajoo Engineering, Steel Cast, Atul auto & Amul industries making a total

sample size of 250 employees. In our study we measured the impact of welfare provisions on employee

satisfaction by way of the correlation technique and we also measured that whether any difference in terms of

employee satisfaction towards welfare provision exists by way of using one way Annova test.

Key Terms:

Worker, Washing Facility, First Aid, Canteen, Crèches, Appropriate Government.

1.INTRODUCTIONThe Engineering sector is the largest in the overallindustrial sectors in India. It is a diverse industry

with a number of segments, and can be broadly

categorized into two segments, namely, heavy

engineering and light engineering. The engineering

sector is relatively less fragmented at the top, as thecompetencies required are high, while it is highly

fragmented at the lower end (e.g. unbrandedtransformers for the retail segment) and is

dominated by smaller players.

Gujarat contributes to over 8% of India‘s total

engineering output, and is home to severalindustrial units with operations across the entire

engineering value chain over 300 units in large

sector and over 75,000 units in Small and mediumenterprises (SME) sector (excluding repair and

services). Major production base for sponge iron,

steel pipes and tubes, copper cathode, electrical,

switchgear, transformer and transmission line

towers, heavy fabrication, ship building and autocomponents. 30 out of the 83 product clusters in

the State are dedicated to engineering and autosector.

Major engineering clusters in Gujarat include

foundry, ship breaking, induction furnace industry,

steel re-rolling mills, brass parts, oil engines,fabrication and machine tools, auto components

and SS utensils Hindalco‘s copper smelting andrefining complex at Dahej in Bharuch District is

the world‘s largest copper smelter at a single

location with a capacity of 5,00,000 tones a year.

Engineering industry in Saurashtra region is mainly

concentrated in the areas like Rajkot, Bhavnagar,Jamnagar, some portion of Junagadh & Porbandaretc. Each of these districts has specialties for the

manufacturing of the different engineering

products. The main concentration of engineeringindustry in Saurashtra region is Rajkot & it is very

well supported by other district. Besides Saurashtra

Kutch region is also enriched with the industriesmanufacturing saw pipes, Steel Bars & components

of wind mill.

DISTRICT SPECILAITY MAJOR PLAYERS

Rajkot Auto components, Diesel Engine, CNC

machinery, Casting products

Amul auto, Kadvani forging, Jyoti CNC, Rajoo

engineering, P M Diesels, Forge & Forge, RolexBearing

Bhavnagar Rerolled steel, castings Steel cast, Investment & Precession castings limited

Jamnagar Brass Parts Rajhans Mtal Pvt.ltd, Trupti Brass

2.LITERATURE REVIEWA Sabarirajan, T.Meharajan, B.Arun (2010) in

their study of the Cotton Textile plays a vital role

in human life. Textile industries are one of theimportant industries of India for earning Foreign

Exchange and giving employment to lacks of

workers .Because of being a highly labor intensiveindustry it needs to concentrate more in the area of

employee welfare. In this study we selected Salem

District in Tamil Nadu, India for identifying

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various methods and also to identify theeffectiveness of the methods. The study shows that

15% of the employees are highly satisfied with

their welfare measures. 22 % of the employees are

satisfied with their welfare measures.39% of theemployees is average with their welfare measures.

16% of them are in highly dissatisfied level.Welfare measures plays important role in employeesatisfaction and it results in improved quality of

work life. This study throws light on the impact of

welfare measures on QWL among the employees

of textile mills in Salam district.

B D Singh (Industrial Relations and LabourLaws)Excel (2008) Edition This legislation is

being enforced by technical officers i.e. Inspectors

of Factories, Dy. Chief Inspectors of Factories whowork under the control of the Chief Inspector of

Factories and overall control of the Labour

Commissioner, Government of National CapitalTerritory of Delhi. The Factories Act, is a social

legislation which has been enacted for occupationalsafety, health and welfare of workers at work places. In India the first Factories Act was passed

in 1881. This Act was basically designed to protect

children and to provide few measures for health

and safety of the workers. This law was applicable

to only those factories, which employed 100 or

more workers. On the basis of therecommendations of the Factory Labour

Commission, more comprehensive Law wasintroduced in 1911, which got amended in 1923,

1926 and 1931 With the amendments made by

Royal Commission of Labour (1931),

Comprehensive Factory Act, 1934 was introduced.

Shobha Mishra and Dr Manju Bhagat (2007) intheir article discuss labour welfare activities in an

industrialized society has far reaching impact notonly on the work force but also all the facets of

human resources. Labour welfare includes all such

activities, which not only secures existential

necessities but also ensures improvement in

spiritual and emotional quotient. It comprises ofshort term and long terms goal toward building a

humane society. As labour welfare is a dynamic

concept, changes in its principles activities and therationale supporting them have not been static.

They closely follow the stages of advancement of

the industrialized society – from police Theory to

Functional Theory. Accordingly principles forsuccessful implementation of labour welfare

activities ranges from adequacy of wages to impact

on efficiency as well as transformation of personality in nut shell, it is extension of

democratic values in an industrialized society.

Kwong-leung Tang and Chau-kiu Cheung(2007) studies that employs survey data from1240welfare recipients in Hong Kongto investigate the

effectiveness of various measures for raising the

recipients‘ work motivation and diminishing their

welfare dependency. The measures examinedinclude the Intensive Employment Assistance

Project (IEAP), Community Work (CW) Program

and Disregarded Earnings (DE) arrangements.

Findings reveal the effectiveness of these threemeasures. Particularly, help received from various

services of the IEAP was the principal factor in theeffectiveness of the IEAP and the IEAP waseffective for welfare recipients who were older or

less skilled. The findings thus offer support to thegenerality of the claim about the effectiveness of

welfare-to-work programs.

C. P. John (2004) studied in the paper the largegaps existing between the rich and the poor and the

unorganized workers and the organized workers

have led in several countries to attempts at providing social and economic security to the poor

and to the unorganized sectors. In Kerala, the

introduction of modern techniques of productionand the growth of capitalist production relations

had important implications for the traditional craftsas well as craftsman in Kerala. One of itsimplications has been the breakdown of the

conventional social security set-up. Craftsmen in

Kerala belonged to a specific caste group, namely,

Kammala or Viswakarma. The social security

system among craftsmen was embedded in the craft

and caste traditions and practices. The customs and practices of the craft as well as of caste groups

were eroded in the processes of change thattransformed caste-based occupational traditions

and the social structure itself.

3.RESEARCH METHODOLOGY

3.1 RESEARCH PROBLEM Welfare provisionsof Factories Act 1948 are important as far as the

nature of the work in the engineering industries isconcerned. It may happen that the employees

working in the engineering industry are not

satisfied with the welfare provisions provided

under Factories Act 1948. ―So our study will aim

at studying the satisfaction level of theemployees.

3.2 OBJECTIVES OF RESEARCH

1. To review the welfare provisions extended to theemployees in Jyoti CNC, Rajoo engineering, steel

cast, Atul Auto & Amul industries.

2. To identify whether any relation exists between

welfare provisions & Employee satisfaction.3.3 HYPOTHESIS Hypothesis for studying the relationship

existence between welfare provisions &

Employee satisfaction. Null Hypothesis (Ho): The welfare provision &

employee satisfaction are corelated. Alternate

Hypothesis (Ha): The welfare provisions &

employee satisfaction are unrelated. This

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hypothesis is tested by considering each & everywelfare provisions individually.

Hypothesis for comparing satisfaction level

among all five companies due to welfareprovisions extended to employees. Null Hypothesis (Ho): There is no significance

difference in employee satisfaction among fivecompanies. Alternate Hypothesis (Ha): There issignificance difference in employee satisfaction

among five companies. This hypothesis is tested by

considering each & every welfare provisions

individually.

3.4 RESEARCH DESIGNFor research we select the entire Engineering

industry of Saurashtra region as population of our

study and select five engineering companies i.e.Jyoti CNC, Rajoo Engineering, Steel Cast, Atul

Auto & Amul industries by judgmental sampling.

“From the above five companies we select

sample size of 50 employees from each of the

company i.e. 250 as our total sample size of thestudy by simple random sampling.” The data is

collected using primary data collection toolquestionnaire.

TEST APPLICATION: In our study we useCorrelation & One Way ANNOVA for ourobjective analysis. The test is conducted at 5%

level of significance.

4 DATA ANALYSIS &INTERPRETATIONOn the basis of data collected we got the following

outcome. Data chart of welfare provisions co-relate

with employee satisfaction of five companies as below

.

Chart 2

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Chart 3

Chart 4

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5 HYPOTHESIS TESTINGFor identifying relation between the welfare provisions & employee satisfaction by applying

Correlation Analysis for each welfare provisions.

1. For washing facility.

Null Hypothesis (Ho): The Washing facility &

employee satisfaction are co – related.

Alternate Hypothesis (Ha): The Washing facility &employee satisfaction are un - related

.

Table 1

Washing Facilities Job Satisfaction

Highly satisfied 116 97

Satisfied 80 59Moderate 35 67

Dissatisfied 14 21

Highly Dissatisfied 5 6

TOTAL 250 250

Washing Facilities Job satisfaction

Washing Facilities 1 0.977678273

Job satisfaction 0.977678273 1

From the above table Variable X: washing facility

Variable Y: Job satisfaction

This Correlation table shows there is positive

relationship between washing facility & employee

satisfaction & the inferred value is 0.977.

So the null hypothesis gets accepted & hence

proved that the washing facility & employeesatisfaction are correlated.

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2. Storing & drying Facility Null Hypothesis (Ho): The Washing facility &

employee satisfaction are co – related.

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

Table 2

Storing & Drying Job Satisfaction

Highly satisfied 51 97Satisfied 135 59

Moderate 58 67

Dissatisfied 6 21


250 250

Storing & Drying Job Satisfaction

Storing & Drying 1 0.558238634

Job Satisfaction 0.558238634 1

From the above table Variable X: storing & drying facilityVariable Y: Job satisfaction


relationship between storing & drying facility &employee satisfaction & the inferred value is 0.558.


proved that the storing & drying facility &employee satisfaction are correlated.

3. Sitting Arrangement during work Null Hypothesis (Ho): The sitting arrangementfacility & employee satisfaction are co – related.

Alternate Hypothesis (Ha): The sitting arrangement

facility & employee satisfaction are un - related.

Table 3

Facility for sitting Job Satisfaction


Satisfied 82 59

Moderate 143 67Dissatisfied 6 21


250 250

Facility for sitting Job Satisfaction

Facility for sitting 1 0.423138985


From the above table Variable X: sitting arrangement facility


This Correlation table shows there is positiverelationship between sitting arrangement facility &employee satisfaction & the inferred value is 0.423.


proved that the sitting arrangement facility &

employee satisfaction are correlated.

4.

First Aid facility Null Hypothesis (Ho): The First Aid facility &employee satisfaction are co – related.

Alternate Hypothesis (Ha): The First Aid facility &

employee satisfaction are un - related.

Table 4

First Aid Job Satisfaction


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Satisfied 82 59

Moderate 22 67

Dissatisfied 7 21


250 250

First Aid Job Satisfaction

First Aid 1 0.848305


From the above table Variable X: first aid facility



relationship between first aid facility & employee

satisfaction & the inferred value is 0.848. So thenull hypothesis gets accepted & hence proved that

the first aid facility & employee satisfaction arecorrelated.

5. Canteen facility Null Hypothesis (Ho): The canteen facility &

employee satisfaction are co – related.Alternate Hypothesis (Ha): The canteen facility &

employee satisfaction are un - related.

Table 5

Canteen Job Satisfaction


Satisfied 53 59

Moderate 15 67

Dissatisfied 5 21


250 250

Canteen Job SatisfactionCanteen 1 0.822544


From the above table Variable X: canteen facility



relationship between canteen facility & employeesatisfaction & the inferred value is 0.822. So the

null hypothesis gets accepted & hence proved that

the canteen & employee satisfaction are correlated.

6. Shelters, lunch room, restroomFor comparing the level of the employee

satisfaction among these five companies due to

welfare provisions by applying One Way Annova

test at 5% level of significance. Null Hypothesis (Ho): The shelters, lunchroom,

restroom facility & employee satisfaction are co –

related.Alternate Hypothesis (Ha): The shelters,

lunchroom, restroom facility & employee

satisfaction are un - related.

Table 6

Lunch room,restroom Job Satisfaction


Satisfied 151 59

Moderate 40 67

Dissatisfied 14 21

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250 250

Lunch room,restroom Job Satisfaction

Lunch room,restroom 1 0.403177506Job Satisfaction 0.403177506 1

From the above table Variable X: shelters, lunchroom, and restroom facility



relationship between shelters, lunchroom, restroom

facility & employee satisfaction & the inferredvalue is 0.403. So the null hypothesis gets accepted

& hence proved that the shelters, lunchroom,

restroom & employee satisfaction are correlated.

7. Crèches or baby care facility.

In our study none of the organization gets affected

by this provision given under Factories Ac 1948

because of not having 30 or more than 30 women

employees.

8. Welfare officer Null Hypothesis (Ho): The welfare officer facility

& employee satisfaction are co – related.Alternate Hypothesis (Ha): The welfare officer

facility & employee satisfaction are un - related.

Table 7

Welfare Officer Job Satisfaction


Satisfied 34 59

Moderate 171 67

Dissatisfied 39 21


250 250

Welfare Officer Job Satisfaction

Welfare Officer 1 0.204941685Job Satisfaction 0.204941685 1

From the above table Variable X: welfare officer facility


This Correlation table shows there is positiverelationship between welfare officer facility &

employee satisfaction & the inferred value is 0.204.

So the null hypothesis gets accepted & hence proved that the welfare officer & employee

satisfaction are correlated.

Comparing the level of the employee satisfactionamong Jyoti CNC, Rajoo engineering, Steel cast,

Atul auto & Amul Industires due to welfareprovisions.

1. For washing facility. Null Hypothesis (Ho): There is no significance

difference in the employee satisfaction due towashing facility given by company.

Alternate Hypothesis (Ha): There is significance

difference in the employee satisfaction due to

washing facility given by company.

Table 8

Washing Facilities

Jyoti Rajoo Steel Cast Atul Amul

Highly satisfied 125 135 100 90 130

Satisfied 68 48 80 68 56

Moderate 15 18 24 27 21

Dissatisfied 4 6 4 10 4

Highly Dissatisfied 1 2 0 1 1

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From the above test the calculated value which is

0.0020 is less than tabular value i.e. 2.87 so our

Null hypothesis gets accepted.So there is no

significance difference in the employee satisfaction

due to washing facility given by company.

Storing & drying Facility

Null Hypothesis (Ho): There is no significance

difference in the employee satisfaction due tostoring & drying facility given by company.



storing & drying facility given by company.

Table 9

Storing & Drying



Satisfied 108 76 144 116 96

Moderate 30 39 27 42 36



Source of Variation SS Df MS Fc Ft

Between 16.96 4 4.24 0.0019 F(4,20)= 2.87

Within 43944.56 20 2197.22

Total 43961.52 24



Null hypothesis gets accepted.

So there is no significance difference in the

employee satisfaction due to storing & dryingfacility given by company.

Sitting Arrangement during work



sitting arrangement facility given by company.


difference in the employee satisfaction due tositting arrangement facility given by company.

Table 10

Facility for sitting



Satisfied 60 68 56 64 80

Moderate 96 78 87 90 78



Source of

VariationSS df MS Fc Ft

Between 37.04 4 9.26 0.0020 F(4,20)=2.87

Within 91012.22 20 4550.61

Total 91049.26 24

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Source of Variation SS df MS Fc Ft

Between 17.20 4 4.3 0.0027 F(4,20)= 2.87

Within 31106 20 1555.3

Total 31123.2 24

From the above test the calculated value which is0.0027 is less than tabular value i.e. 2.87 so our


So there is no significance difference in theemployee satisfaction due to sitting arrangement

facility during work given by company.

2. First Aid facility Null Hypothesis (Ho): There is no significance

difference in the employee satisfaction due to first

aid facility given by company.Alternate Hypothesis (Ha): There is significance

difference in the employee satisfaction due to first

aid facility given by company

.

Table 11

First Aid

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

Satisfied 72 60 64 60 72

Moderate 15 12 18 15 6




Between 61.84 4 15.46 0.0045 F(4,20)= 2.87

Within 67536.23 20 3376.81

Total 67598.07 24



Null hypothesis gets accepted.So there is no significance difference in the

employee satisfaction due to first aid facility given

by company.

3. Canteen facility


difference in the employee satisfaction due tocanteen facility given by company.


difference in the employee satisfaction due tocanteen facility given by company.

Table 12

Canteen

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

Satisfied 24 40 68 24 56

Moderate 9 12 12 12 0




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

Within 116659.8 20 5832.99

Total 116674.04 24


0.0006 is less than tabular value i.e. 2.87 so our Null hypothesis gets accepted.


employee satisfaction due to canteen facility given

by company.

4. Shelters, lunch room, restroom


difference in the employee satisfaction due toshelter, restroom & lunchroom facility given by

company.


difference in the employee satisfaction due toshelter, restroom & lunchroom facility given by

company.

Table 13

Lunch room,restroom



Satisfied 144 116 120 120 104

Moderate 18 30 27 18 27




Between 9.2 4 2.3 0.0009 F(4,20)= 2.87

Within 49296 20 2464.8

Total 49305.2 24





employee satisfaction due to shelter, restroom &lunchroom facility given by company

5.

Crèches or baby care facility.In our study none of the organization gets affected

by this provision given under Factories Ac 1948

because of not having 30 or more than 30 women

employees.

6. Welfare officer


difference in the employee satisfaction due towelfare officer facility given by company.

Alternate Hypothesis (Ha): There is significancedifference in the employee satisfaction due to

welfare officer facility given by company.

Table 14

Welfare Officer



Satisfied 20 40 24 12 40

Moderate 108 87 90 129 99



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

Within 37461.27 20 1873.06

Total 37474.47 24

From the above test the calculated value which is0.0017 is less than tabular value i.e. 2.87 so our


So there is no significance difference in theemployee satisfaction due to welfare officer facility

given by company

6. IMPLICATION OF STUDYThis study can be implied in any of the industry asa tool for identifying the employee tendency &

belief towards the welfare provisions. One can

know the requirement of the workers in terms ofdifferent non financial motivational tools by

implying this study. This study can be useful for

identifying the factors which leads to employeesatisfaction so that company can use those factors

as retention tool for retaining employees in the

organization.

7. LIMITATION OF STUDY1. Few of the respondents hesitated to give thecorrect information.

2. Few respondents hesitated to give opinion

against their management.

3. The period of the study was limited.

4. The validity of the study depends up on thereliability of the primary data.

5. Due to the size of the organizations in the

Saurashtra region put curse on some welfare provisions to be implemented which leads to

inconsideration in our study i.e. Having less than

30 no. of women employees leads to deduction of

the organization from following the provision ofgiving Creches facility to women employees.

8.SCOPE OF FUTURE STUDYThis study can be used in future for analyzing thewelfare provisions & its impact on employee

satisfaction in different area as we had done in

engineering industry. This study also can be takenas a reference for studying the other provisions of

the different acts as well as of same act like

provision for safety, health, etc. And can be studiedwith reference to employee satisfaction.

9. FINDINGS & SUGESSTIONSFrom our study of PROVISION OF WELFARE

UNDER FACTORIES ACT & ITS IMPACT ON

EMPLOYEE SATISFACTION we suggest that

the provisions provided to the employees in eachindustry should always be made more beneficiary

for their welfare. So , for this each industry should

appoint the welfare officer who can take better carefor the welfare facility of the employees in an

industry. From our study we have found out that

the employees have positive attitude towards their

industry for the welfare provisions.

10. CONCLUSION Our research study conclude in terms of proving

that the different welfare provisions provided to theemployees working in an organization under

Factories Act 1948 are having positive relation

with the employee satisfaction. In our study afteranalyzing the Correlation between these two

factors gives the result. The reason behind this

result is that these are the factors that lead tosatisfaction & if they are not present can sometimes

lead to dissatisfaction i.e. on basis of Herzberg’s

theory of motivation.

Study also gives the outcome on basis of the One

Way Annova test that the welfare provisions givento employees in five companies i.e. Jyoti CNC,

Rajoo Engineering, Steel Cast, Atul auto & Amul

Industries dose not have significant difference inthe employee satisfaction level.

The reason behind the acceptance of hypothesis &

getting the above result is that the companies underour study follows or provides more or less same

kind of the welfare provisions to their employees.

The companies who are giving the provisions totheir employees vary slightly. E.g. in canteen

provision variation is in terms of the rate at which

they provide food, the quality of food, test etc. In

the same manner the shelter, restroom &

lunchroom facility vary in terms of the location, its

ambiance etc.

REFERENCES[1] Agarwala (2004). From ‗ Work to Welfare:

The State and Informal Workers

‘Organizations in India. American Political

Science Association Annual Meeting, Chicago,

Illinois

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

Labor Legislation on Women‘s Wages and

Welfare: Lessons from Britain and France.

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