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1.1.1 INTRODUCTION TO THE STUDY

The study was conducted in FENNER INDIA in Sriperumpudur,

Chennai to find the effect of welfare measures on employee morale.

The study intends to see the satisfaction level of the employee on the

facilities provided by the company and how these welfare measures boost the employee

morale.

The study on effect of welfare measure on employee morale gives the

management an indication of the level of satisfaction among the employees regarding the

general working condition and the other facilities provided by the organization. This

helps the management to know the general morale of the employees.

NEED FOR THE STUDY

Government has passed many acts to provide facilities to the workers in

factories. This study evaluates the extend of welfare facilities available in Fenner India

Ltd

SIGNFICANCE OF THE STUDY

In the present industrial scenario, the basic aim of every organization is to

achieve optimum production of high quality and earn adequate profits to survive in the

field, in this context various welfare measures are undertaken so as to promote good

industrial relations and create congenial atmosphere. The employers have to satisfy all the

needs of employees to make better profits. Besides giving good wages, the welfare

facilities given to them play a vital role in achieving their objectives. By providing good

welfare facilities, the workers feel a better working condition.

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DIAGRAMATIC REPRESENTATION OF THE STUDY

1.1.2 SCOPE OF THE STUDY

The various components of welfare facilities are washing storing, drying

and clothing, sitting first aid appliances, canteen, shelters, restroom, lunch room, crèches,

welfare offers, ventilation & temperature, drinking water, latrines & urinals, spittoons

1and lighting.

The study is confined into the workers in different categories such as

drivers, supervisor, permanent and temporary workers.

1.1.3 PROBLEM DEFENITION

Human Resource Management is the process of procuring, developing,

maintaining, and controlling human resources for effective achievement of organizational

goals. This project is focused on employee welfare measure and employee morale.

EMPLOYEE MORALE

WELFARE MEASURES

MEDICAL FACILITY

CANTEEN FACILITY

INFRASTRUCTURE

CREDIT FACILITY

SAFETY

MOTIVATION

JOB SATISFACTION

INTER RELATIOSHIP

WORK ENVIRONMENT

Effect of welfare

measure on morale

2

EMPLOYEE WELFARE – DEFINITION

Employee welfare means “the effort to make life worth living for

workmen”.When all basic facilities are provided and employees obtain satisfaction then

the productivity can be increased and development of the organization will be possible

CONDITIONS OF WORK ENVIRONMENT

1) Working conditions

Temperature

Ventilation

Lighting

Dust

Smoke

Fumes and gases

Noise

Humidity

Posture – simple

Hazard and safety complex devices

2) Factory Sanitation and Cleanliness:

Provision of urinals in factories

Provision of spittoons

Provision for the disposal of waste and rubbish

Provision for water disposal (drainage)

Provision of proper bathing and washing facilities

Cleanliness, white- washing and repair of buildings and workshops

Care and maintenance of open spaces, gardens, roads, etc

3) Welfare Amenities

Provision and care of drinking water

Canteen services

Lunch

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Rest room

Crèches

Cloak rooms

Other amenities

EMPLOYEES’ HEALTH SERVICES

1) Factory health services

Medical examination of employees

Factory dispensary and clinic treatment

First aid and ambulance room

Treatment of accidents and

Health education and research

2) Recreation

Playgrounds for physical recreation (athletics, games, gymnastics, etc)

Social and cultural recreation (music, singing, dancing, drama, etc)

3) Workers education

Education to improve skills and earning capacity

Literacy

Library, audio visual education, lecture programmes and

Workers educational scheme and its working

4) Economic Services

Employees’ co-operative societies

Grain shops and fair price shops

5) Study of the working of welfare Acts

Factories Act

Employees state insurance act

Minimum wages act

6) Social Work in industrial Setting

4

Family Planning

Employee counseling

EMPLOYEE SERVICES AND BENEFITS

These are concerned with the process of sustaining and maintaining the

work force in an organization. They include

1) Safety provision inside the workshop

2) Employee counseling

3) The medical services

4) The recreational and other welfare facilities

5) Fringe benefits and supplementary items

EMPLOYEE MORALE - DEFINITION

According to Yoder “morale is a feeling, somewhat related to esprit de

corps, enthusiasm or zeal. Fippo has described morale “As a mental condition or attitude

of individuals and groups which determines their willingness to co-operate. Good morale

is evidenced by employee enthusiasm, voluntary conformance with regulations and

orders, and a willingness to co-operate with others in the accomplishment of an

organization’s objectives.

FACTORS AFFECTING MORALE

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According to McFarland, the important factors, which have a bearing on

morale, are

The attitude of the executives and managers towards their subordinates.

working conditions, including pay, hours of work, and safety rules

effective leadership and an intelligent distribution of authority and responsibility

in the organization

the design of the organization’s structure which facilities the flow of work and

The size of the organization.

CRITERIA THAT DETERMINES MORALE

The organization itself

The nature of the work

The level of satisfaction

The supervision received

The perception of the self

Workers perception of the past awards and future opportunities for rewards

The employees age

The employee’s educational level and occupational level.

TYPES OF MORALE

Morale is generally referred to as high morale. According to McFarland,

“high morale exists when employee attitudes are favorable to the total situation of a

group and to the attainment of its objectives low morale exists when attitudes inhibit the

willingness and ability of an organization to attain its objectives

High morale is represented by the use of such term spirit, zest,

enthusiasm, loyalty, dependability and resistance to frustration. Low morale, on the other

hand, is described by such words and phrases as apathy, bickering, jealously, pessimism,

fighting, disloyalty to the organization, disobedience of the orders of the leaders, dislike

of, or lack of interest in, one’s job, and laziness.

MORALE AND PERFORMANCE

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It has been pointed that “there is a little evidence in the available

literature that employee attitudes bear any relationship to performance on the job.

First, there are some who assert that high satisfaction leads to high

performance. The “Hawthorne” studies of 1930s seem to support this view, as do

findings of other studies.

Second, others take an opposite view. For example, Lyman Porter and

Lawler say that satisfaction results from high performance, because most people

experience satisfaction by accomplishing more tasks, like building a radio, or clinching a

sale.

Third, still others claim that there is no consistent relationship between

morale and performance. Vroom found significant relationship between morale and

performance in only 5 out of 22 studies undertaken by him.

WARNING SIGNS OF LOW MORALE

Among the more significant of the warning signals of low morale are

High rate absenteeism

Tardiness

High Labour turnover

Strike and sabotage

Lack of pride in work and

Wastage and spoilage.

IMPROVING MORALE

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A three-fold action may be initiated. In the first place, it is essential to

change the policy or to correct it immediately. Employees do not lose their respect for the

boss who admits his mistakes but they cannot respect one who makes too many, and they

may have contempt for one who refuses to admit his mistakes.

Second, misconceptions should be removed, and the correct position

should be explained to the employees.

Third, a reasonable attempt should be made to educate and convince the

employees.

1.1.4 OBJECTIVES OF THE STUDY

Primary objective

To study and analyze the safety and welfare measures of the employee.

To evaluate the effect of the welfare measures on employee morale.

Secondary objective

To evaluate the satisfaction level of employee about the work environment.

To find the level of satisfaction of employee about the facilities given by the

company.

1.1.5 RESEARCH METHODOLOGY

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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”.

1.1.5.1 SOURCES OF DATA

Primary data

The primary data are collected from the employees of FENNER through

a direct structured questionnaire.

Secondary data

Company profiles, websites, magazines, articles were used widely as a

support to primary data.

1.1.5.2 SAMPLING SIZE AND TECHNIQUE

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Size of the sample

It refers to the number of items to be selected from the universe to

constitute as a sample. In this study 50 employees of FENNER in Chennai 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.

1.1.5.3 STATISTICAL TOOLS USED

To analyze and interpret collected data the following statistical tool were used.

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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

Here

XW represents the weighted average

X represents the value of variable

W represents the weight given to the variable.

Chi-square analysis

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XW = ∑ WX / ∑ X

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.

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

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Chi-square = ∑ {(O-E)2 / E}

r =

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)

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.

1.1.6 LIMITATIONS OF THE STUDY

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Y= a + bX

Cov(x, y) = 1/n ∑ x y – x y

x = 1/n x2 – x 2

y = 1/n y2 – y 2

The time period of the study is very short, so elaborate study was not made.

Only certain factors are considered in this study to measure the effect of welfare

measure on employee morale.

The conclusions and suggestions were formed based on employee’s spot

response.

Some false information may be given by the employee

1.1.7 CHAPTERISATION

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CHAPTER I

1.1 Introduction

1.1.1 Introduction To The Study

o Need For The Study

O Significance Of The Study

O Diagrammatic Representation Of The Study

o Morale And Performance

o Warning Signs Of Low Moraleo Improving Morale

1.1.4 Objectives Of The Study

o Primary Objective

o Secondary Objective

1.1.5 Research Methodology

o Research – Meaningo Research Design

1.1.5.1 Sources Of Data

o Primary Data

o Secondary Data

1.1.5.2 Sampling Size And Technique

o Size Of The Sample

o Sample Design

o Population Design

o Questionnaire

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1.1.5.3 Statistical Tools Used

o Percentage Method

o Weighted Average Method

o Chi-Square Analysis

o Correlation

o Regression

1.1.6 Limitations Of The Study

1.1.7 Chapterisation

1.2 Company Profile

o Vision

o Manufacturing And Quality Systems

o Best Manufacturing Practices Followed By Fenner India

o Technologyo Products

For The Indian Market

For The Foreign Market

o Textiles

o Products o Marketso Fenner Schemes

1.3 Product Profile

Ancient Rubber

Vulcanized Rubber

Modern Rubber

o Technology And Innovation

o Change Drivers

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CHAPTER II

2.1 REVIEW OF LITERATURE FROM JOURNALS AND ARTICLES

o Preserving Employee Morale during Downsizing

o How to Boost Employee Morale

o Boost Employee Morale with an Employee Incentive Program

o Employee Welfare

NATIONAL COMMISSION (1969) NATIONAL COMMISSION (1972)

o EMPLOYEE WELFARE IN INDIA

CHAPTER III

DATA ANALYSIS AND INTERPRETATION

3.1.1 EXPERIENCE OF RESPONDENT

3.1.2 LEVEL OF SATISFACTION OF SAFETY MEASURES

3.1.3 LEVEL OF SATISFACTION OF MEDICAL FACILITY

3.1.4 LEVEL OF SATISFACTION OF WORKING ENVIRONMENT

3.1.5 LEVEL OF SATISFACTION OF RELATIONSHIP BETWEEN SUPERVISOR AND WORKER

3.1.6 LEVEL OF SATISFACTION OF RELATIONSHIP BETWEEN WORKERS

3.1.7 LEVEL OF MOTIVATION GIVEN TO EMPLOYEE

3.1.8 LEVEL OF FREEDOM GIVEN TO THE EMPLOYEES

3.1.9 STATUS OF GRIEVANCE HANDLING IN THE COMPANY 3.1.10 WORK SATISFACTION LEVELOF THE EMPLOYEE

3.1.11 SATISFACTION OF EMPLOYEES ABOUT WELFARE MEASURES

3.2.1 ANALYSIS OF OPINION OF RESPONDENTS REGARDING

COMMUNICATION IN WORK PLACE AND WORK SATISFACTION

(USING CHI-SQUARE)

3.2.2 ANALYSIS OF OPINION OF RESPONDENTS REGARDING WELFARE

SATISFACTION AND WORK SATISFACTION

(USING CHI-SQUARE)

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3.2.3 ANALYSIS OF OPINION OF RESPONDENTS REGARDING EXPERIENCE

OF RESPONDENT AND WORK SATISFACTION

(USING CHI-SQUARE)


MOTIVATION GIVEN TO EMPLOYEE AND WORK SATISFACTION

(USING CORRELATION)

3.2.5 ANALYSIS OF RANKING GIVEN BY RESPONDENTS REGARDING

SATISFACTION OF WELFARE MEASURES

(USING WEIGHTED AVERAGE METHOD)

3.2.6 ANALYSIS OF OPINION GIVEN BY RESPONDENTS REGARDING

SATISFACTION OF WELFARE MEASURES AND EMPLOYEE MORALE

(USING REGRESSION METHOD)

CHAPTER IV

4.1 FINDINGS OF THE STUDY

4.2 SUGGESIONS AND RECOMMENDATIONS

4.3 CONCLUSION

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1.2 COMPANY PROFILE:

Fenner India Limited, established in 1929, is a member of the JK

Organization, one of India’s top Industrial houses with diversified interests and assets

exceeding US$ 1.6 billion

Fenner India’s product lines include Industrial and Automotive Belts,

Oil Seals, Power Transmission Accessories for the OE and Replacement Markets and

Textile Yarn.

Fenner (India) Limited is the largest manufacturer of Industrial and

Automotive V-Belts, Oil seals and Power Transmission Accessories in India. With a

large Sales and Distribution network across the country and a strong brand image, Fenner

is undoubtedly the market leader in India.

Fenner India's emphasis on quality and customer satisfaction has earned

respect and endorsement from major OEMs. The company is a pioneer and has been a

market leader both in terms of new product development and market reach. Fenner India

has regularly introduced state-of-the-art latest products both for domestic and

international markets. Today eight out of ten automobiles in India have at least one

Fenner Belt or Oil Seal in it.

Apart from being the domestic market leader, Fenner India is also one of

the big exporters of V-Belts and Auto Belts in the country with products being exported

to over 40 countries, including North and South America, Europe, Australia and South

Africa.

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http://www.fennerindia.com/html/textile.asp

http://www.jkorg.in/

http://www.jkorg.in/

VISION

To Position Fenner (India) Limited as a globally competitive player in

Belts and Oil seals.

We have 3 state-of-art Manufacturing facilities and a sophisticated R&D

center.

Our Distribution network is the largest in India in the Industry and we export to

over 50 countries.

We work on SAP R/3 platform. Employee profile- Professionally managed, 3000

strong employees. Our well-experienced team is young with an average age of 36

years, dedicated to Customer

MANUFACTURING AND QUALITY SYSTEMS:

Fenner India has 3 state-of-art manufacturing facilities at Madurai,

Chennai and Hyderabad. The first manufacturing facility was established in 1955 in the

'Temple City' Madurai, southern India, which is the largest facility today.

In-process Quality control, careful choice of raw materials,

technological up gradation has ensured complete product reliability and high levels of

customer satisfaction.

Best Manufacturing Practices followed by Fenner India:

Lean Manufacturing

TQM

Poke Yoke (Error Proof)

5S

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Fenner India has been awarded the following Quality Certifications:

ISO 9001:2000 for Design and Manufacturing of V Belts for Industrial

Applications.

ISO/TS 16949: 2002 for Design and Manufacture of V Belts, Timing Belts, Oil

Seals and Moulded Rubber Parts for Automotive applications.

API- American Petroleum Institute accredited License No: 1B-0009 - the only

Company in Asia to have the coveted accreditation.

ISO 14001:1996 Environmental Management System Standard.

TECHNOLOGY:

Technology Center employs state-of-the-art techniques, starting from

simulation studies using Finite Element Analysis, all the way to validation through

rigorous indoor testing. The Center has the best in class testing facilities for Raw

Materials, In-Process components and Finished Products like Industrial and Automotive

Wrapped Belts, Raw Edge Cogged Belts, Poly-V belts, Timing Belts and various types of

Oil Seals.

Apart from product development, our experts also work closely with

OEMs for Continuous Upgradation of belt drive system and provide sealing solutions.

Our technological efforts have made it possible for us to remain fully

competitive in the global market by continuous development of a large range of new

products such as Poly F Plus belts, Heavy Duty belts, Kevlar Cord belts, EPDM belts and

many others.

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PRODUCTS:

FOR THE INDIAN MARKET

Industrial Power Transmission Products

Belts

Power Transmission Accessories

Automotive Products

OEM

Replacement Market

Automotive Belts

Oil seals

FOR THE FOREIGN MARKET

Industrial Power Transmission Products

Belts

Power Transmission Accessories

Agricultural Products

Belts

Automotive Products

Belts

Oilseals

INDIAN BRANDS FOREIGN BRANDS

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http://fennerindia.com/html/international/automotiveoil.asp

http://fennerindia.com/html/international/automotive.asp

http://fennerindia.com/html/international/agriculture.asp

http://fennerindia.com/html/international/ptastar.asp

http://fennerindia.com/html/international/industrial.asp

http://fennerindia.com/html/international/industrial.asp

http://fennerindia.com/html/replace-wrap-auto.asp

http://fennerindia.com/html/replace-wrap1.asp

http://fennerindia.com/html/automotiveOilseal.asp

http://fennerindia.com/html/automotivedomestic.asp

http://fennerindia.com/html/powertran.asp

http://fennerindia.com/html/industrial.asp

http://fennerindia.com/html/industrial.asp

Power flexes F&F

Pioneer,fenner Top drive.

fenner Top drive endurance plus

Multi pull Top drive cog power

Power Tran

Eco drive

Polv-f plus

TEXTILES

Fenner India diversified into the manufacture of Cotton Textiles Yarn in

the year 1992. Fenner India has two Textile manufacturing units with the following

facilities:

Manavasai, Karur : 12000 spindles

Pattukonampalli, Salem : 23000 spindles and 768 rotors

Keeping in line with its tradition and with clear conviction on customer

satisfaction, Fenner Textiles has over the years reoriented its capabilities both

quantitatively and qualitatively by furthering its state-of-the-art ISO 9002 certified

manufacturing facilities

Today, Fenner India's Textile division manufactures a wide variety of

hosiery yarn, warp yarn and sewing threads used in high fashion cotton knit woven

garments. The range includes superior combed and carded yarn for knitting and weaving

-2ply and 3plyYarn.

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Products :

Cotton Yarn : 18 TPD carded and combed ring spurn, hosiery, warp yarn

and 5 TPD OE yarn. Specialty Textiles : Knit Fabrics : Grey/White for ready use in

garment manufacturing Woven Fabrics: Industrial fabrics for belt and abrasive

manufacturers

Markets:

Apart from catering to the domestic market, Fenner India textiles

division exports to the Middle East, Asia Pacific, and Europe.

Fenner Schemes

Scratch Card Scheme for Maruti, Tata, Moped, Poly-V and Ecodrive Cogged

belts.

Monsoon Hungama Scheme was launched for sub-dealers in the industrial belts

segment.

Fenner Celebrations Scheme was launched for retailers in the Replacement

market.

Flights of Fantasy scheme was introduced for Dealers in.

1.3 PRODUCT PROFILE

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Rubber is product that is known for its elastic property. Rubber is an

established industry in India. Rubber is a frequently used material today. It is known for

its elastic properties. Rubber can be of two types; natural and synthetic. Rubber is

naturally produced by rubber plants that can be obtained and it can also be produced

synthetically. Rubber industry in India was introduced by the British for commercial

cultivation but the govt. of India has improved the scope of rubber production

considerably. Today rubber and rubber related products are established industries in

India.

ANCIENT RUBBER

Until recently modern thinkers believed rubber originated in 19th

century Europe. According to a Tech Talk article published by Massachusetts Institute of

Technology on Wednesday, July 14, 1999, Professor Dorothy Hosler, Assistant Professor

Sandra Burkett and an undergraduate named Michael Tarkanian learned that the Mayan

people in ancient Mesoamerica made and used rubber as long ago as 1600 BCE.

The ancient Mayan people used latex to make rubber balls, hollow

human figures, and as bindings used to secure axe heads to their handles and other

functions. Latex is the sap of various plants, most notably the rubber tree. When it is

exposed to the air it hardens into a springy mass. The Mayans learned to mix the rubber

sap with the juice from morning glory vines so that it became more durable and elastic,

and didn't get quite as brittle. Both the rubber tree and the morning glory were important

plants to the Mayan people- the latter being a hallucinogen as well as a healing herb.

They two plants tended to grow close together. Combining their juices, a black substance

about the texture of a gum-type pencil eraser was formed.

The rubber balls were about the size of a beach ball and weighed over 15

pounds (7 kilograms). These were used in an important ritual game called Tlachtlic. The

game was a cross between football and basketball, but had religious significance as

recorded in the Popul Vuh, a Mayan religious document. Spanish invaders in the

sixteenth century reported that the game also involved gambling for various possessions

25

including land and slaves. It is believed that the game ended in a human sacrifice at least

some of the time. Versions of the game were played in the middle American region

ranging from southern Arizona to northern South America. Native peoples in the region

still make rubber in the same way.

VULCANIZED RUBBER

In 1736 several rolled sheets of rubber were sent to France where it

fascinated those who saw it. In 1791, an Englishman named Samuel Peal discovered a

means of waterproofing cloth by mixing rubber with turpentine. English inventor and

scientist, Joseph Priestly, got his hands on some rubber and realized it could be used to

erase pencil marks on sheets of paper.

Charles Goodyear, an American whose name graces the tires under

millions of automobiles, is credited with the modern form of rubber. Before 1839, rubber

was subject to the conditions of the weather. If the weather was hot and sticky, so was the

rubber. In cold weather it became brittle and hard. Goodyear's recipe, a process known as

vulcanization, was discovered when a mixture of rubber, lead and sulfur were

accidentally dropped onto a hot stove. The result was a substance that wasn't affected by

weather, and which would snap back to its original form if stretched. The process was

refined and the uses for rubber materials increased as well. This new rubber was resistant

to water and chemical interactions and did not conduct electricity, so it was suited for a

variety of products. The process of making the rubber product improved as time went by,

and now various chemicals are added before the mix is poured into molds, heated and

cured under pressure.

An Englishman named Sir Henry Wickham collected about seventy

thousand rubber tree seeds in Brazil in 1876 and took them to the East Indies where he

started rubber plantations. In 1877 an American named Chapman Mitchell learned to

recycle used rubber into new products.

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MODERN RUBBER

Today about three quarters of the rubber in production is a synthetic

product made from crude oil. World War II cut the United States off from rubber supplies

worldwide, and they stepped up production of synthetic rubber for use in the war effort.

There are about 20 grades of synthetic rubber and the intended end use determines

selection. In general, to make synthetic rubber, byproducts of petroleum refining called

butadiene and styrene are combined in a reactor containing soap suds. A milky looking

liquid latex results. The latex is coagulated from the liquid and results in rubber "crumbs"

that are purchased by manufacturersand melted into numerous products.

There is only one kind of natural rubber. Because the rubber plant only

thrives in hot, damp regions near the equator, so 90% of true rubber production today

occurs in the Southeast Asian countries of Malaysia and Thailand and in Indonesia.

Indonesia's production has dropped in recent years and new plantations were started in

Africa to take up the slack.

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The Rubber Products industry is classified under the following categories:

SIC 15 – Rubber Products Industry Establishments primarily engaged in

manufacturing tires and tubes; rubber hose and belting; mechanical rubber goods;

weather stripping (rubber and plastic); Pressure sensitive tape; rubber boot and shoe

findings; tire re-treading materials, etc.

NAICS 3262 – Rubber Product Manufacturing This industry group comprises

establishments primarily engaged in processing natural, synthetic or reclaimed rubber

materials into intermediate or final products using such processes as vulcanising,

cementing, moulding, extruding and lathe-cutting.

Concordance between the SIC and NAICS classification systems is not exact. SIC 15

includes the following NAICS codes:

NAICS 313320 – Fabric coating (Fabric, Rubberising)

NAICS 322220 – Paper bag and coated & treated paper manufacturing

(Cellophane adhesive tape, Manufacturing)

NAICS 332910 – Metal valve manufacturing (Hose and tube

assemblies, Manufacturing)

NAICS 339990 – All other miscellaneous manufacturing (Rubber

gaskets and gasket material manufacturing)

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Technology and Innovation

The manufacture of tires has made significant technical advances over

the years. For example, different compounding techniques made possible the

development of the all season radial tire. This, in turn, has reduced the number of brands

and types of tires, enabling longer production runs.

Technology-driven product differentiation will remain a strong force in

the tire division. An anticipated technological advance is the development of run-flat

tires. The development of the first all-steel reinforced passenger tire to replace polyester

and rayon tire cord was recently announced. This ultratensile steel is the world’s

strongest tire reinforcement material and is expected to be used worldwide to produce

conventional as well as run-flat tires.

The Canadian rubber products industry is characterised by very low

research and development (R&D) expenditures. As a result, this industry is dependent

upon external source for technical know-how and innovation.

Developments in thermoplastic elastomer technology offer the potential

for significant improvements in productivity and product quality. Thermoplastic

elastomers exhibit the elasticity associated with rubber but, under appropriate conditions,

are permanently deformable like plastics. This characteristic permits the use of plastic-

processing technology to produce elastomeric products, offering significant cost and

efficiency advantages over traditional rubber-processing methods.

The use of thermoplastic elastomers is expected to grow much faster than the market for

industrial rubber products overall. Applications for which thermoplastic elastomers are

replacing thermoset rubbers include seals, gaskets, hoses, flexible tubing, coated fabrics,

weather stripping, sheeting, conveyor belting, boots on steering columns and air ducts in

automobiles.

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CHANGE DRIVERS

Economic/Market

The domestic and international rubber tire and tube market has

increasingly become a global one. This has led to a drive for greater efficiency and cost

containment, which in turn has been responsible for greater integration of domestic

producers with international markets.

Petrochemical feedstock price has a direct impact on the cost of rubber

products manufacturing. Increasing energy costs result in significant pressure on profit

margins.

On a global basis, the market is being continually rationalised and

consolidated through mergers and acquisitions. In North America, the most lucrative tire

market, the number of major tire producers has fallen from 11 in the 1950s to just three in

the 1990s.

The rubber hose and belting division is subject to many of the same

influences as the Tire and Tube division (although to a lesser degree). Globalisation has

led to a drive for greater efficiency and cost containment. Accompanying this has been

consolidation and integration of Canadian producers into a North American market.

The elimination of tariffs on rubber products under North American Free

Trade Agreement (NAFTA) has shifted the Canadian rubber products industry from a

domestic focus to a North American market orientation. The elimination of tariffs has

forced the Canadian rubber products industry to become highly competitive.

The FTA and NAFTA provided a strong incentive for Canadian-owned

companies to improve efficiency and competitiveness. This has been accomplished either

through the establishment of commercial alliances with U.S. based firms, or through

focussing production on a narrower product range aimed at the entire North American

market.

30

Developments in the rubber hose and belting division are largely

dictated by changes in the automotive industry. Over several decades, the number of belts

and tubes in a typical vehicle engine has declined. At the same time, the remaining belts

in the engine are more sophisticated, requiring changes in the manufacturing process.

Increasingly, multinational companies are rationalising their North

American operations so plants manufacture greater volumes in a narrower range of

products. Market rationalisation also means Canadian suppliers will focus on nearby

Canadian and U.S. markets. The increased marketing and capital costs needed to improve

competitiveness favour larger companies. The development of new partnerships and joint

ventures with other companies may be essential for their continued participation in the

marketplace.

31

CHAPTER II

2.1 REVIEW OF LITERATURE FROM JOURNALS AND ARTICLES

Preserving Employee Morale during Downsizing

Karen E. Mishra, Gretchen M. Spreitzer and Aneil K. Mishra

Topic: Human Resource Management and Industrial Relations

Reprint 3927; winter 1998, Vol. 39, No. 2, pp. 83–95

Mishra propose a four-stage approach to downsizing, gleaned from

interviews and surveys that will retain workers' trust and sense of empowerment. The

company should consider all stakeholders' needs — survivors, laid-off employees, the

community, local and national press, and any affected government agencies. The

implementation of all the above, is the most important. Management should communicate

frequently and be open and honest.

How to Boost Employee Morale

By Betsy Gallup

April 9, 2006

The following are the ways to boost the employee morale.

Treat employees with respect

Show interest in your employees' personal lives

Allow your employees to gain ownership of their jobs by being part of the

decision-making process

Create a pleasant work environment

Establish an employee recognition program

Give clear direction and set priorities.

Stand behind your employees. Be their greatest advocate.

32

Boost Employee Morale with an Employee Incentive Program

By: Trevor Marshall

Good managers know from their own observations that employee

attitude affects their work and eventually the company’s output.

It is essential that your incentive program will actually inspire and

motivate them to work efficiently and not just be competitive with each other. Healthy

competition among the company’s employees is good but too much of it may also cause

the company to disintegrate.

The company should still be very much hands-on with the whole

employee incentive program to ensure that the outcome of the employee incentive

program will be good.

Employee Welfare

By Regina Barr

Employee Welfare program is based on the management policy which is

aimed shaping perfect employees. Therefore the concept of employee welfare includes to

aspects namely physical and mental welfares

1. Applications of merit system or work performance system as the basis for

employee rewarding.

2. Providing the retired employees with the old age allowance.

3. Employee insurance program to provide the employee with better security.

4. Improvement in health security for the employees and their families so that

they can work confidently and productively.

5. Increase in basic salaries and pension as adjustment to the needs providing all

work units and their officials with vehicles to help support smooth mobility.

33

A series of study carried out by the labor bureau of India in a variety of

Industries showed a large of women working in Manes did not have separate

arrangements, latrines and rest rooms shelters and crèches were in neglected condition

(1979).

NATIONAL COMMISSION (1969) The report of this commission was appointed in

1966 had reviewed many aspects of labor welfare in India such as existing conditions of

their interest level of workers earnings, standard of living and various welfare facilities,

canteens, crèches, housing, transportation, recreational facilities, provisions.

. NATIONAL COMMISSION (1972) In conjunction with the passage of 1970 of the

occupational Safety and Health Act Congress established a National Commission

undertake a compensation laws in order to determine if such provide an adequate,

prompt, equitable system of compensation.

EMPLOYEE WELFARE IN INDIA :

The chapter on the directive principles of state policy first our constitution expresses the

need for labour welfare thus :

Article 38. The state shall strive to promote the welfare of the people by securing and

protecting as effectively as it may a social order in which, Justice, social, economic and

political shall inform all the institution ofthe national life.

Article 39. The state shall, in particular, direct its policy towards security.

a). That the citizen, men and women equally, have the rights to an adequate means of

livelihood.

b). That the ownership and control of the material resource are so distributed so as to sub

serve the common good.

34

c). That the operation of the economic system does not result in the concentration of

wealth and means of protection to the common determine.

d). That there is equal work for both men and women, and Article 42. The State shall

make provision for securing just and human condition for work and for maternity relief.

35

CHAPTER III

DATA ANALYSIS AND INTERPRETATION


Inference:

From the table it infers that 52% of respondent are experienced above

10 years and 4% are less than one year.


Experience Frequency Percentage (%)

0-1 2 4.0

2-5 5 10.0

6-10 17 34.0

Above 10 26 52.0

Total 50 100.0

36


Inference:

From the table it infers that 38%of respondent are dissatisfied with the

safety measures and 24% of respondent are satisfied.


Opinion Frequency Percentage (%)

Highly satisfied 1 2.0

Satisfied 12 24.0

Neutral 12 24.0

Dissatisfied 19 38.0

Highly dissatisfied 6 12.0

Total 50 100.0

37



Highly satisfied 10 20.0

Satisfied 28 56.0

Neutral 3 6.0

Dissatisfied 6 12.0

Highly dissatisfied 3 6.0

Total 50 100.0

Inference:

From the table it infers that 56%of respondent are satisfied with

the medical facility and 12% of respondent are dissatisfied.

38



Inference:

From the table it infers that 80%of respondent are satisfied with the

working condition and 4% of respondent are dissatisfied.


Opinion Frequency Percent

Satisfied 40 80.0

Neutral 8 16.0

Dissatisfied 2 4.0

Total 50 100.0

39

3.1.9 LEVEL OF SATISFACTION OF RELATIONSHIP BETWEEN

SUPERVISOR AND WORKER


Cordial 39 78.0

Moderate 10 20.0

Indifference 1 2.0

Total 50 100.0

Inference:


supervisor and 2% of respondent are dissatisfied.

3.1.10 LEVEL OF SATISFACTION OF RELATIONSHIP BETWEEN

SUPERVISOR AND WORKER

40


Inference:


workers and 2% of respondent are dissatisfied.



Cordial 41 82.0

Moderate 8 16.0

Indifference 1 2.0

Total 50 100.0

41


Inference:

From the table it infers that 14%of respondent are highly motivated and

8% of respondent are not motivated.



Very high 7 14.0

High 17 34.0

Moderate 12 24.0

Low 10 20.0

Very low 4 8.0

Total 50 100.0

42

3.1.15 LEVEL OF FREEDOM GIVEN TO THE EMPLOYEES


Very High 2 4

High 11 22

Moderate 15 30

Low 18 36

Very Low 4 8

Total 50 100

Inference:

From the table it infers that 22% of the respondent feels that freedom

given to them to express their ideas is high and 36% of the feel as low.

3.1.16LEVEL OF FREEDOM GIVEN TO THE EMPLOYEES

43

3.1.17 STATUS OF GRIEVANCE HANDLING IN THE COMPANY

Opinion Frequency Percentage

Always 10 20

Sometimes 20 40

Rarely 13 26

Never 7 14

Total 50 100

Inference:

From the table we infer that 40% of the respondents are satisfied with

the grievance handling and 14% of the respondents are dissatisfied.

3.1.18 STATUS OF GRIEVANCE HANDLING IN THE COMPANY

44

3.1.19 WORK SATISFACTION LEVELOF THE EMPLOYEE

Opinion Frequency Percent

Always 23 46.0

Sometimes 23 46.0

Rarely 4 8.0

Total 50 100.0

Inference:

From the table it infers that 46%of respondent are always satisfied with

work and 8% of respondent are rarely satisfied.

3.1.20 WORK SATISFACTION LEVEL OF THE EMPLOYEE

45



Yes 33 66.0

No 17 34.0

Total 50 100.0

Inference:

From the table it infers that 33%of respondent are always satisfied with

welfare and 34% of respondent are not satisfied.


46


COMMUNICATION IN WORK PLACE AND WORK SATISFACTION

(USING CHI-SQUARE)

Observed count

Opinion Always Sometimes Rarely Total

Cordial 9 5 0 14

Moderate 9 6 6 21

Indifference 7 7 1 15

Total 25 18 7 50

Expected count

47


Cordial 7 5 2 14

Moderate 10.5 7.6 2.9 21

Indifference 7.5 5.4 2.1 15

Total 25 18 7 50

Null Hypothesis:

H0: There is no significant difference between communication in work place

and work satisfaction.

CHI-SQUARE TESTS

O E (O-E)2 (O-E)2/E

9 7 4 0.57

5 5 0 0

0 2 4 2

9 10.5 2.25 0.21

6 7.6 2.56 0.34

6 2.9 9.61 3.31

7 7.5 0.25 0.03

7 5.4 2.56 0.47

1 2.1 1.21 0.58

Calculated value = ∑ (O-E) 2 / E = 7.51

Degrees of Freedom = (R -1) (C-1) = 4

48

Tabulated value for 4 degrees of freedom at 5% level of significance is

9.48

Inference:

The calculated value is less than the tabulated value. H0 is accepted.

Therefore there is no association between communication in work place and work

satisfaction.

3.2.2 ANALYSIS OF OPINION OF RESPONDENTS REGARDING WELFARE

SATISFACTION AND WORK SATISFACTION

(USING CHI-SQUARE)

Observed count:


Yes 20 12 1 33

No 7 6 4 17

Total 27 18 5 50

Expected count:

Always Sometimes Rarely Total

49

Opinion

Yes 17.8 11.9 3.3 33

No 9.2 6.1 1.7 17

Total 27 18 5 50

Null Hypothesis:

H0: There is no significant difference between welfare satisfaction and work

satisfaction.

CHI-SQUARE TESTS

Calculated value = ∑ (O-E) 2 / E = 5.51



5.99

O E (O-E)2 (O-E)2/E

20 17.8 4.84 0.27

12 11.9 0.01 0

1 3.3 5.29 1.60

7 9.2 4.84 0.53

6 6.1 0.01 0

4 1.7 5.29 3.11

50

Inference:

The calculated value is less than the tabulated value. H0 is accepted.

Therefore there is no association between welfare satisfaction and work satisfaction.


EXPERIENCE OF RESPONDENT AND WORK SATISFACTION

(USING CHI-SQUARE)

Observed count:


0-1 1 1 0 2

2-5 2 2 1 5

6-10 6 10 1 17

Above 10 14 10 2 26

Total 23 23 4 50

51

Expected count:


0-1 0.9 0.9 0.2 2

2-5 2.3 2.3 0.4 5

6-10 7.8 7.8 1.4 17

Above 10 12 12 2.1 26

Total 23 23 4 50

Null Hypothesis:

H0: There is no significant difference between experience of respondent and

work satisfaction.

CHI-SQUARE TESTS

O E (O-E)2 (O-E)2/E

1 0.9 0.01 0.01

1 0.9 0.01 0.01

0 0.2 0.04 0.2

2 2.3 0.09 0.04

2 2.3 0.09 0.04

1 0.4 0.36 0.9

6 7.8 3.24 0.41

10 7.8 4.8 0.62

1 1.4 0.16 0.11

14 12 4 0.33

10 12 4 0.33

2 2.1 0.01 0.004

52

Calculated value = ∑ (O-E) 2 / E = 3



12.59

Inference:

The calculated value is less than the tabulated value. H0 is accepted. Therefore

there is no association between experience of the respondent and work satisfaction


MOTIVATION GIVEN TO EMPLOYEE AND WORK SATISFACTION

(USING CORRELATION)

Observed Count

53

OPINION

FACTORS

ALWAYS SOMETIMES NEVER TOTAL

MOTIVATION(X) 24 12 14 50

WORK

SATISFACTION(Y)

28 19 3 50

CORRELATION TABLE

X Y X2 Y2 XY

24 28 576 784 672

12 19 144 361 228

14 3 196 9 42

Cov(x, y) = 1/n ∑ x y – x y

= 1/3 (942-278)

= 35

x = 1/n x2 – x 2

= √1/3(916-278)

= 5.14

y = 1/n y2 – y 2

= √ 1/3(1154-278)

=10.28

54

r =

Cov(x, y)

x X y

= 0.66

Inference:

The motivation given to employees and work satisfaction are positively

correlated. The increase in motivation will increase the work satisfaction also.

3.2.5 ANALYSIS OF RANKING GIVEN BY RESPONDENTS REGARDING

SATISFACTION OF WELFARE MEASURES

(USING WEIGHTED AVERAGE METHOD)

Observed Count

55

OPINION

FACTORS

SATISFIED NEUTRAL DISSATISFIED TOTAL

MEDICAL

FACILITY

35 4 11 50

INFRA

STRUCTURE

27 9 14 50

CANTEEN

FACILITY

21 9 14 50

CREDIT

FACILITY

26 10 14 50

WEIGHTED AVERAGE TABLE

RANK WEIGHTS

FACTORS

Medical

Facility

Infra

structures

Facility

Canteen

Facility

Credit

Facility

X W X1 WX1 X2 WX2 X3 WX3 X4 WX4

1 3 35 105 27 81 21 63 26 78

56

RANK WEIGHTSFACTORS

2 2 4 8 9 18 14 28 10 20

3 1 11 14 14 14 15 15 14 14

TOTAL 50 124 50 113 50 106 50 112

CW 2.48 2.26 2.12 2.24

RANK 1 2 4 3

CW (CALCULATED WEIGHT) = ∑ WXn / ∑ Xn

Inference:

From the table it is inferred that employees ranks medical facility

followed by infra structure with the canteen facility as last.

3.2.6 ANALYSIS OF OPINION GIVEN BY RESPONDENTS REGARDING

SATISFACTION OF WELFARE MEASURES AND EMPLOYEE MORALE

(USING REGRESSION METHOD)

Let X be the morale of the employee

Let Y be the satisfaction of welfare measures.

57

Observed Count

OPINION

FACTORS

SATISFIED NEUTRAL DISSATISFIED

EMPLOYEE

MORALE(X)116 36 48

WELFARE

MEASURES(Y)

28 19 13

REGRESSION TABLE

X Y X-X X-X2 Y-Y Y-Y2

(X-X)

(Y-Y)

116 28 49 2440 11 130 563

36 9 -31 936 -8 58 233

48 13 -19 346 -4 13 67

58

Formula

bxy = ∑ ( x-x )( y-y )

∑ ( x-x )2

= 863/201

= 4.29

Regression Equation

X-X = bxy (Y-Y)

X = 4.3Y -6.1

Inference:

Excluding the constant, from the above equation we can infer that effect

of welfare measure on morale is measure is found as1:4. Therefore we can conclude that

the effect of welfare measure on employee morale is about 25%.

59

CHAPTER IV

4.1 FINDINGS OF THE STUDY

Most of the employees in the company are female. More than 50% of

respondent are working for more than 10 years. Most of the respondents are highly

satisfied with the medical facility. Most of the respondents are dissatisfied with the safety

measure and only few are satisfied.

Most of the employees are satisfied with the working condition. Most of

the respondents are satisfied with the motivation given by the company. Most of the

respondents are satisfied with the relation between supervisor and workers. Most of the

employees are satisfied with the relation between workers.

Most of the respondents are satisfied with the work. Most of the

respondents are satisfied with the welfare measures. Most of the respondents are satisfied

with the canteen facility. Most of the respondents are satisfied with the credit facility.

The communication in work place has no effect on work satisfaction.

The welfare measure satisfaction has no effect on work satisfaction. The increase in

employee motivation will increase the work satisfaction. The effect of welfare measures

is about 25% on employee morale.

4.2 SUGGESIONS AND RECOMMENDATIONS

Since most of the employees are married the company can concentrate on

crèche facility.

The company can improve the grievance handling system so that they can

increase the employee satisfaction.

The company can provide safety equipments to the employees.

The salary increment for employees will increase the employee

satisfaction and which in turn increase the employee morale.

60

4.3 CONCLUSION

The study on effect of welfare measure on employee morale helps the

management to know the satisfaction level of the employees about the welfare measure

provided by the company. From this study we can infer that the majority of the

employees are satisfied with the welfare measures. The company can concentrate on

other facility like crèche facility, uniform, and safety measures to boost the employee

morale. The employee morale is good in the company. It is found that the effect of

welfare measure on employee morale in this study is about 25%.

APPENDICES

61

A STUDY ON EFFECT OF WELFARE MEASURES ON EMPLOYEE MORALE

QUESTIONNAIRE

PERSONAL DATA

1. Name :

2. Age :

(a) 18-25 (b) 26-35 (c) 36-45 (d) Above 45

3. Gender :

(a) Male (b) Female

4. Educational Qualification :

(a) Below Hr Sec (b) Hr Sec (c) UG (d) PG

5. Experience :

(a) 0-1 Yrs (b) 1-5 Yrs (c) 5-10 Yrs (d) Above 10 Yrs

6. Total Salary :

7. Designation :

8. Safety Measures :

8.1. Are you satisfied with the safety appliances in work place?

a) Highly satisfied b) Satisfied c) Neutral d) Dissatisfied

e) Highly Dissatisfied

9. Medical Facility

9.1 Specify the level of satisfaction

a) Highly satisfied b) Satisfied c) Neutral d) Dissatisfied

e) Highly Dissatisfied

9.2 Is there any periodical medical check up given to you

(a) Yes (b) No

10. ESI Benefits :

10.1 Do you have ESI car

(a) Yes (b) No

10.2 Do you get all the ESI benefits?

(a) Yes (b) No

62

11. Canteen facility

Specify the level of satisfaction

Highly

SatisfiedSatisfied Neutral Dissatisfied

Highly

Dissatisfied

Cleanliness

Hygienic

Serving

Price

12. Credit facility

12.1. Is any Advances and loan given to you are satisfied

(a) Very high b) high c) moderate d) low e) very low

Specify the level of satisfaction of other allowances

Highly


Highly

Dissatisfied

Transport allowance

Attendance allowance

Punctuality allowance

Education allowance

13. Infra-structural facility :

63

Specify the level of satisfaction

Highly


Highly

Dissatisfied

Rest room

Drinking water

Ventilation

Lighting

Toilets

Working

environment

Transportation

14. Inter-relationship:

14.1. Relationship between co-workers

(a) Cordial (b) Moderate (c) Indifferent

14.2. Relationship between supervisor and workers.

(a) Cordial (b) Moderate (c) Indifferent

14.3. Level of communication between supervisor and employee

(a) High (b) Very high (c) Low (d) Very low (e)Moderate

15. Level of motivation given to employee

(a) High b) Very high (c) Low (d) Very low (e) Moderate

16. Are u informed about all the management policies?

(a) Always (b) Sometimes (c) Rarely (d) Never

17. Does the management solve all your grievances?


64

18. Level of freedom to express your ideas?

(a) High (b) Very high (c) Low (d) Very low (e) Moderate

19. Are you satisfied with the work you do.


20. In general are you satisfied with the welfare and safety measures given by

Management?

(a) Yes (b) No

21. Suggestion for Improvements

BIBLIOGRAPHY

65

BOOKS

1. Kothari C.R., Research methodology, published by Tata Mc Graw-Hill Publishing

Company Ltd., 13th Edition, 1982.

2. Gupta, S.P., and Gupta, M.P., Business Statistics, Published by Sultan Chand & Sons,

7th Edition, 1989.

3. Personnel Management by C.B.Mamoria & S.V.Gankar, Published by Himalaya

Publishing House.

WEBSITES

1. www.ncr.com

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