Review of Literature
Review of Literature
Review of Literature
REVIEW OF LITERATURE
2.1 INTRODUCTION
researches. It is useful to understand what has happened in the topic during the
past period. In every research, there are certain preliminary works and the review
MEASURES
Sailesh Sindhu (2012) felt that, employee welfare measures increase the
employees to keep their motivation levels high. Business houses provide many
such statutory and non-statutory things and policies to maintain satisfactory level
of their employee.
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Mishra & Manju Bhagat (2010) in their Principles for Successful
housing, health and family care, canteen, educational and training facilities
P.KPadhi (2007)stated that, the term welfare suggests the state of wellbeing and
involving the mental, physical, moral and emotional factor of a person. Adequate
levels of earnings, safe and humane conditions of work and access to some
Ramesh M. (2012) pointed out that the main thrust of labour policy and labour
law is to change in line with the global changes that is from welfare and
government intervention.
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Torjman (2004) demonstrated that welfare facilities and recreation accounts for
quotient.
S. Poongavanam (2011) felt that the welfare measure will improve the
in turn will improve their efficiency and productivity. From the study on
labour welfare facilities in AFT, the researcher concluded that, the various
welfare facilities such as health, safety, canteen, uniform, education and gift
facilities in AFT, enables workers to live a rich and more satisfactory life.
efficiency of the worker and raises their standard of living. Thus the labour
K. Jayanthi, P. Ashok Kumar and V. Manju, (2012) stated that labour sector
productivity, living standards of labour force and social security. To raise living
standards of the work force and achieve higher productivity, skill upgradation
generation in all the productive sectors is one of the basic objectives. Based on
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the findings the Industry may consider the suggestion to maintain a good Labour
Welfare Measures and providing of the necessary support measures for sorting
Morris Altman (2000) says that standard neo-classical theory argues that an
assumed that economic agents are always x-efficient; performing at the height of
efficiency. However, a behavioral model of the firm suggests that more rights
and power, with its positive impact on labor standards, need not produce the
organizations should not assess the impact of enhanced labor power and control
Various theories of labour welfare reflect the attitude and belief of the
6) The public relation theory, 7) The functional theory and 8) The quid pro
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2.3 EMPIRICAL STUDIES ON STATUTORY LABOUR WELFARE
MEASURES
Joshi (1927) felt that labour welfare covers all the efforts which employers make
for the benefit of their employees over and above the minimum standard of
working conditions fixed by the Factories Act, and over and above the
Earlier studies of employment stability among welfare recipients and other low-
wage workers, as well as its effects on their wages over time, have relied heavily
on data from the National Longitudinal Survey of Youth (NLSY) from the 1980s
and early 1990s. Studies of employment retention for recipients include Hershey
and Pavetti (1997), while Holzer and Lalonde (2000) focus on less-skilled
young women and men more broadly. Both the studies find somewhat high
turnover rates and relatively short job spells among unskilled workers with little
weeks (or 9 months) for recipients, while Holzer and Lalonde finds average
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weekly turnover rates of about 2 percent (and therefore median job durations of
about 6 months).
questioned during the 1980s owing to high unemployment and the rise of liberal
economic thinking. This led many countries to dilute minimum wage protection
by freezing the rates or altering the coverage. However, close examination of the
relevant research reveals that empirical support for the criticisms of minimum
wages is fairly weak and fragmented. At the end of the 1980s and beginning of
the 1990s, many countries, Great Britain being a notable exception, pursued a
more active minimum wage policy. Conclusions reveal that with a re-
examination of the goals and form of minimum wage legislation in the light of
recent history.
labour welfare activities, then divided the whole range of these existing activities
aid, crches, supply of drinking water etc., (II) welfare outside the establishment
provision for indoor and outdoor recreation, housing, adult education, visual
Shyam (1999) states in his article that major reforms to promote health
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practices, hygiene in homes and eateries, preventing early marriages, health,
forming factors (alcohol and tobacco) safety in work place and agricultural
Western society than people are aware of. On the basis of a study
five. If the figure is correct, suicide due to harassment is a far more frequent
successfully filed against work harassment. This may explain the great interest
mentioned in the chapter V of the Factories Act, 1948 are basic and can be
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and administrative. Its implementation is joint responsibility of the four active
of implementation brought out some area like canteen, sitting facilities and
facilities for storing and drying clothing shall be improved by the companies.
This will indicate to what extent we should take the same for other companies
Ewan Clague noted that the larger plant tends to have lower injury
(Grimaldi and Simonds, 1996). The same of welfare facilities as health, safety
and welfare have combined impact on the overall wellbeing and health of
resulting the bulk of the workforce does not get a reasonable level of
protection. Such tendencies get accentuated when market forces motivate the
minimization of the cost of labour input. This is the reason that anyone to assess
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Social Security manifests the natural desire of communities for protection
measures- against the economic and social distress that otherwise would
age and death; the provision of medical care; and the provision of
MEASURES
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
opportunity etc.
Devina Upadhyay and Anu Gupta (2012) felt that the HR managers focuses
the labor tribunal but also provide certain other amenities like medical check
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up ,bonus ,birthday and anniversary gift, library ,sports facilities, recreation
mention just a few .Provision of these welfare measures today act as one
of non-statutory welfare activities for the organizations. Five public and six
private sector organizations were selected for the study. The study brought out
organizations when they think of the voluntary welfare measures was not only
the output and efficiency but also increasing loyalty and morale. In respect of
cost, the study revealed, that the public sector organizations spend more on
Jayadevadas (1980) based on his study of coir workers, suggested that the
model before the trade unions in Kerala was that of modern industrial
argued that given the multiplicity of sectors, and employment and socio-
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economic patterns in each State, as well as of grassroots organisations and
Kazutaka Kogi and Tsuyoshi Kawakami (1997) give several examples from
Asia-Pacific region. These examples are chosen primarily to illustrate the large
popularity during the period when the free market mechanism already
established its preeminence. The free market mechanism of the west together
political institutions led to the emergence of the welfare state. The reason why
the welfare state gained popularity during the period when the industrialized
world was enjoying economic prosperity was because of the growing need for
protecting the rights of citizens from any unforeseen events regardless of their
P.Swpana (2011) stated that the Company to start a new scheme i.e., FTAR
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company. For this the company need not pay any amount in the form of
investment because the company can collect money every month from their
salary like provident fund till their retirement and can be used after retirement.
terms of proving that the different welfare provisions provided to the employees
working in an organization under the Factories Act 1948 are having positive
Jon - Chao Hong, Sung-De Yang, Li-Jung Wang, En-Fu Chiou, Fan-Yin Su,
sui - Lan Huang (2006) says everyone works in expectation of some rewards,
of the significant results of this study are: employee benefit programmes have
programmes are most highly valued by both executives and workers; there is a
education levels and positions perceive different employee benefit impacts; and
performance.
evidence such as Kahneman, Knetsch and Thaler (1986) shows that people
so-called ultimatum games (Guth et al, 1982, Bolton, 1991, and Smith, 1994)
suggests that individuals will throw away real income to obtain a fairer division
of a smaller pie. It seems likely that decisions about fairness rest on some sort of
covering the years 1969 and 1973, and estimates job satisfaction equations. This
seems to be the earliest article of its kind in the economics literature. Although
Hamermesh's focus is upon occupational choice and the effects of training, and
he does not discuss - at least in any detail - ideas of relative deprivation, his
regression, which is akin to finding that y-y*, in the earlier notation, affects
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utility. More recently, Lvy-Garboua and Montmarquette (1994) and Sloane
and Williams (1994), using Canadian and British data respectively, have
provides some more welfare facilities to the employees so that they may
retain the employees and their quality of work life. By the result of
improved quality of work life among the employees and their involvement
Factories in East Godavari District are satisfied with the welfare measures
Ramesh Kumar Bhardwaj (2012) point out that Government has enacted a
plethora of labour welfare legislations from time to time. Workers have been
letter and spirit. Welfare amenities have not been properly provided to the
officers are not being appointed as per the prescribed qualification. In spite
of this, it is true that the inspection and supervision of the Labour welfare
K.K. Chaudhuri, states that HR policies are being made flexible. From leaves
want social security benefits, younger employees want cash in hand because they
cant think of sticking to a company for many years and retire from the same
company. Therefore one jacket fits all will not be right to motivate the talents
and retaining skilled personnel depends upon the competitive and compensation
packages are luring the personnel. Thus, organization needs to provide more
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the people. In the present competitive business environment, the management is
planning to reduce.
Abdus Sattar Abbasi, et. al (2010) stated that welfare and protection of all
reputation. Every member should have the right to question anything she/he
thinks is not good for the welfare and protection of all stakeholders of an
organization.
welfare services, terms and conditions of service, poor morale, poor performance
the prevailing situation, the paper attempts to assess the role of employee welfare
M. V. Pyle and Simon George (2010) has pointed out that "Even one
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an entire organization with the germ of discontent which, in turn, will result in
Terry Sullivan (1978) says Industrial relations can be said to be concerned with
who makes the rules relating to employment matters, what rules will exist and
how any adjustments to such rules will be made. In a large number of industrial
industrial relations commentators and practitioners would accept that the scope
the practicalities and dynamics of this adjustment process are such that decisions
situation where at the moment of decision, given the quantity and quality of
information that is held, that decision seems rational and acceptable. However,
innate imperfections in information and its flow eventually show the decision to
be something less than satisfactory. Further, many writers believe that collective
outcome that temporarily satisfies the welfare of the parties but can rarely
maximize it. However, we should note that while the parties may reach a jointly
satisfactory outcome, that outcome could be less than optimal for society as a
that redefines the relation between individuals and the state. This law was used
inequalities undermine political participation, however, the law must insure the
bases of its own legitimacy through welfare. Welfare law is thus vital to a
nations legal system as a whole. Seen from this perspective, the current
legitimacy.
indirect method, which measures trends of efficiency, turnover and social evil
welfare provisions. The later is most effective and real time method based
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welfare provision. Hence, the second method is adopted for assessment of
Labour welfare is an extension of the term Welfare and its application to labour.
and brought about changes in the thinking on labour welfare. An early study
and in many cases, investment in people would lead to a greater increase of the
flow of goods and services than would follow upon any comparable investment
in material capital (UN, 1951). The theory states that welfare expenditure,
to the view that workers could work more productively if they were given a fair
Robert M. Feinberg (1978) says that the job search theory, as developed since
factors used in search theory, and these implications have never been tested. This
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paper will present a number of hypotheses regarding LFP and then test these
generally confirm the hypotheses and the view that the variables of the job
Lawrence A. Leger (1993) says both labour groups and the national press
life, with a devastating effect on welfare. To justify this claim in the context of a
preferences, but a plausible case can be made. It presents a model based on the
Steven J. Haider, et. al (2003) says nationally, the welfare caseload declined by
more than 50% between 1994 and 2000. Considerable research has been devoted
these changes has modeled the total caseload (the stock) directly. Klerman and
Haider (forthcoming) model shows the underlying flows and show analytically
and empirically that previous methods are likely to be biased because they
ignore important dynamics. However, due to their focus on the bias of the stock
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models, they present only limited results concerning the robustness of their
unemployment rate. The author examines the robustness of the basic stock-flow
but richer measures of the economy do. While a model that only includes the
between 1995 and 1998 to the economy, models that incorporate richer measures
of the economy attribute more than 90% of the decline to the economy.
This is not the first use of panel data to study subjective welfare. The two closest
(1998). The former paper used panel data in modeling a money metric of
dependent variable, Van de Stadt et al., do not allow for latent individual
effects. They do, however, allow for dynamics, by including the lagged
subjective welfare measure as a regressor (though they cannot reject the null that
its coefficient is unity). The authors focus on the narrow concept in the
expectation that it will offer sharper results on the welfare effects of economic
variables; They also use a better income measure, built up from a detailed
survey.
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One can also expect the income measurement error to be correlated with other
variables of interest. For example, it is often conjectured that the rich tend to
survey. (This is not implausible in Russia in the mid 1990s.) They are also less
real welfare effect beyond the loss of income. Similarly, if the time period over
because respondents naturally worry about future income too. That does not of
course mean that leisure is undesirable, or that there are no adverse incentive
well reflect this structure of income measurement error, whereby the income
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The likely endogeneity of income to subjective welfare also clouds past efforts
to test for the claim that it is income relative to some reference group not
absolute income that matters to wellbeing. Stadt et al., (1985) and Clark
and Oswald (1996) regress a subjective welfare indicator on both own income
have a significant negative coefficient with own income entering positively; the
authors conclude that it is relative income that matters to welfare. However, the
welfare via the effects of higher job satisfaction on labor turnover and disputes
(as discussed in, for example Frank, 1985, and indeed Clark and Oswald,
The inability of the standard trade theoretic models to explain widening wage
inequality calls for explanations. Although all the empirical studies acknowledge
be made of papers by Feenstra and Hanson (1995) and Marjit, Broll and
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Sengupta (2000) who have explained the increasing wage inequality in
The paper of Feenstra and Hanson (1995) is based on the famous Dornbusch-
labour. On the other hand, Marjit, Broll and Sengupta (2000) have examined
informal sectors. They have shown that the impact of trade on skilled-unskilled
wage gap crucially hinges on the nature of capital mobility between the formal
INDIA
provisions and enforcing agencies in India, the welfare facilities were absent
and the cement industry was the only one where provisions were
adequately enforced. The study suggested that need for overhauling and
empowering the welfare inspectors to fine in case of default, were some of the
Jetli, K. Narindar et. al (2006) examines the whole gamut of labour related
provisions, legal framework, and institutions pertaining to labour and its welfare,
current labour policy issues, labour laws pertaining to women and their
He also includes glimpses of Indias Five Year Plans from First Five Years Plan
the labour welfare, as "such services, facilities and amenities like adequate
canteens, rest and recreation facilities, arrangements for travel to and from work
and such other services amenities and facilities which contribute to improve
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The study team appointed by the Government of India in 1959 to examine
labour welfare activities, then divided the whole range of these existing activities
aid, crches, supply of drinking water etc., (II) welfare outside the establishment
provision for indoor and outdoor recreation, housing, adult education, visual
A Sabarirajan, et. al (2010) in their study of the Cotton Textile plays a vital
role in human life. Textile industries are one of the important industries of India
Tamil Nadu, India for identifying various methods and also to identify the
effectiveness 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 the employees is average with their welfare
measures. 16% of them are in highly dissatisfied level. Welfare measures plays
work life. This study throws light on the impact of welfare measures on QWL
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C. P. John (2004) studied in the paper the large gaps existing between the rich
and the poor and the unorganized workers and the organized workers have led in
One of its implications has been the breakdown of the conventional social
2.9 CONCLUSION
The previous researches on labour welfare have focused from different views.
Many of them are from labour and their unions point of view. Some studies are
individual case studies, concentrating on particular firms. At the same time, the
Government has also made surveys. The findings confirm that the labour welfare
measures have to be improved to maximum extent. And the part researcher has
found out the welfare measures are implemented as mere legal formalities. The
present study takes the BHEL, Tiruchirappalli to study the labour welfare
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