A Study on

Employee Welfare Measures

With Reference to Heritage Foods Limited, Visakhapatnam

A project report submitted to JNTU, Kakinada

In partial fulfillment of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

SANAPALA GOVARDHINI

(PIN. NO: 21L61E0035)

UNDER THE GUIDANCE OF

Mrs. M. PADMAJA
M.com ( MBA ) PhD
Asst. Professor

DEPARTMENT OF BUSINESS AND MANAGEMENT STUDIES

CHAITANYA ENGINEERING COLLEGE
KOMMADI, VISAKHAPATNAM-530048

(2021-2023)

1
Mrs. M.PADMAJA Tel: Of office – 2793322
Head Fax: 0891 – 2793666
Department of Business and Chaitanya Engineering College
Management Studies Visakhapatnam – 530048

CERTIFICATE
This is to certify that the project report entitled ―A STUDY ON EMPLOYEE

WELFARE MEASURES with Reference to “HERITAGE FOODS LIMITED,

VISAKHAPATNAM” submitted in partial fulfillment for the award of Master of Business

Administration by SANAPALA GOVARDHINI, PIN No.21L61E0035 during the academic

year 2021-23 under my guidance and supervision. This report has not been submitted previously

for the award of any Degree, Diploma, associate ship, Fellowship or similar title in this

University or in any other University.

M.PADMAJA Mrs. M. PADMAJA

Project Supervisor Head of the Department

2
 DECLARATION

I hereby declare that the exposition ―A STUDY ON EMPLOYEE WELFARE

MEASURES with Reference to “HERITAGE FOODS LIMITED, VISAKHAPATNAM”
submitted by me to JNTU Kakinada in partial fulfillment for the Award of the Degree of
Master`s in Business administration is a original work carried out by me . I completed this work
under the guidance of Mrs. M. PADMAJA, Asst. Professor, Department of Business &
management studies, Chaitanya Engineering College, Visakhapatnam.

I also declare that this dissertation has not been previously formed the basis for the award
of any Degree, Diploma Associate ship, fellowship or similar title in this university or in any
other university.

PLACE: Visakhapatnam
DATE: SANAPALA GOVARDHINI

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 ACKNOWLEDGMENTS
I take this opportunity to express my sincere gratitude to the following eminent
personalities without whose help & guidance, the successful completion of my project work
would have remained a dream.

I extend my sincere thanks to Sri. K. SURESH, Principal of Chaitanya engineering

college giving this opportunity to this project. I also thank to Mrs. M. PADMAJA for his advice
and giving me opportunity to do this project

I express my gratitude to my project work guide Mrs. M.PADMAJA for her valuable
guidance and input throughout the project work and for providing the relevant material needed
for the completion of my project.

I express my gratitude to Sri. N.APPA RAO, H.R.Manager and also I express

my gratitude to General Manager for continuous support and encouragement throughout
my project.

Place:
Date: SANAPALA GOVARDHINI

4
 CONTENTS

Pg.No

1. CHAPTER-I 1-7

 INTRODUCTION

2. CHAPTER-II 8-16

 INDUSTRY PROFILE

3. CHAPTER-III 17-25

 COMPANY PROFILE

4. CHAPTER-IV 26 -52

 THEORITICAL FRAMEWORK OF THE STUDY

5. CHAPTER-V 53-68

 DATA ANALYSIS & INTERPRETATION OF THE STUDY

6. CHAPTER-VI 69-75

 SUMMARY

ANNEXURE

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 CONTENTS
Pg.No
1. CHAPTER-I 1-10

INTRODUCTION
NEED FOR THE STUDY
OBJECTIVES OF THE STUDY
METHODOLOGY
LIMITATIONS OF THE STUDY

2. CHAPTER-II 11-27

INDUSTRY PROFILE
COMPANY PROFILE
3. CHAPTER-III 28-52

THEORITICAL FRAMEWORK OF THE STUDY

4. CHAPTER-IV 53-68
DATA ANALYSIS & INTERPRETATION OF THE STUDY
5. CHAPTER-V 69-78

SUMMARY
FINDINGS
SUGGESTION
CONCLUSION
BIBLIOGRAPHY
ANNEXURE

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 CHAPTER-1
 INTRODUCTION OF THE STUDY
 NEED FOR STUDY
 OBJECTIVES OF STUDY
 METHODOLOGY
 LIMITATIONS OF THE STUDY

7
 INTRODUCTION
Employee has an important role in the industrial production of the country. Human
Resource Management is concerned with the management of people at work. Management is an
art of getting work done by the people. Therefore, it is necessary to seek the cooperation of the
work force to increase the production and to earn higher profits. The cooperation of employees is
possible only when they are fully satisfied with their employer and the working conditions on the
job. Provision of better conditions of work – suitable temperature, adequate lighting and in
general a pleasant atmosphere – is very necessary to make them realize that the management
thinks of their welfare. Such welfare activities benefit not only the employees but also the
management in the form of greater productive efficiency.
The whole field of welfare is said to be one ―in which much can be done to combat the
sense of frustration of the industrial employees, to relieve them of personal and family worries,
to improve their health, to afford them means of self expression, to offer them some sphere in
which they can excel others and to help them to a wider conception of life.‖ It promotes the well
– being of employees in a variety of ways.
Employee welfare implies providing better work conditions such as proper lighting, heat
control, cleanliness, drinking water facilities, canteen and rest rooms, health and safety measures,
reasonable hours of work and holidays, and welfare services, such as housing, education,
recreation, transportation and counseling.

WELFARE MEASURES
The term welfare suggests many ideas, meanings and connotations, such as the state of well-
being, health, happiness, prosperity and the development of human resources. The concept of
welfare can be approached from various angles. Welfare has been described as a total concept. It
is a desirable state of existence involving physical, mental, moral and emotional well-being. All
these four elements together constitute the structure of welfare on which its totality is based. The
social concept of welfare implies the welfare of man, has family and his community.
Labour welfare means the adoption of measures to promote the physical, social,
psychological and general well-being of the working population. Welfare works in any industry
aims, or should aim, at improving the working and living conditions of workers and living
conditions of workers and their families.

8
 The concept of labour welfare, however, is flexible, elastic and differs from time to time,
region to region, industry to industry and country to country, depending upon the value system,
level of education, social customs, degree of industrialization and the general standard of the
socio-economic development of a people. It is also related t o the political situation in a country.
Further, it depends upon the kinds of problems with which society is confronted as well as on the
structure of the industry.
Labour Welfare is moulded according to the age group, sex, socio-cultural background,
marital status, economic status and educational level of the employees in various industries. This
nature of the concept of labour welfare makes it very difficult for us to give a precise, all-
inclusive single definition of the phrases.
DEFINITION
Labour welfare has been defined in various ways, though unfortunately no single
definition has found universal acceptance. The Oxford Dictionary defines labor welfare as
―efforts to make life worth living for worker‖.
Another definition implies that welfare is fundamentally an attitude of mind on the part of
management, influencing the method by which management activities are an undertaken. The
emphasis obviously is on the ―attitude of mind‖.

Yet another definition is ―anything done for the comfort and improvement, intellectual
and social, of the employees over and above the wages paid, which is not a necessity of the
industry.

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 NEED FOR THE STUDY

Employees play a vital role in the existence of any corporation. Employees and their
welfare is a evitable in the organization. Welfare of the employees include loans, free medical
facilities, retirement benefits, other welfare measures for the employee‘s families etc., without
employee activities The employees will not have motivation to work in their job and there will
not have any interest to work. So there is utmost need for the employee welfare. Hindustan
Milk so employee activities at HERITAGE, VISAKHAPATNAM are very important. Hence an
attempt is made to study the topic in the organization
The labor welfare can be interpreted in different ways by different countries with varies
stages of economic development ,political outlook & social philosophy , while expressing its
interpretation regarding the scope of labor definition is mainly concerned with the day to day
problems of the workers & social relationship at the place of work.
Welfare the observed the term, is one that lends itself to significance in a different in
different countries. Sometimes the concept is very wide on & more or less synonymous with
condition of work as a whole. In other case the
The study concentrates on the various welfare measures provided by the corporation to
their employees and opinions of the employees on various aspects. This scope is in the area of
human resource management.

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 OBJECTIVES OF THE STUDY

 To review the profile of Milk Product limited, Visakhapatnam.

 To understand an overview of Milk Products in India.
 To know the theoretic background of employee welfare activities in the organization.
 To study the welfare activities provided by HERITAGE.
 To analyze the employee‘s opinion regarding the Welfare providing to them.
 To interpret the collected data.
 To suggest measures for improving the overall welfare amenities in HERITAGE.

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 METHODOLOGY
The present study is confined to different departments of HERITAGE such as personnel
department, administration department, mechanical department, maintenance department.
Therefore it is hoped that the study in HERITAGE can give effective results and meaningful
conclusions. The study also gives scope for suggestions and improvements if any.
Research is commonly refers to search for knowledge. We can also define research as
scientific search foe pertinent information on specific topic. Research methodology is a way to
systematically solve the research problem.
The report of effectiveness of Welfare activities is based on the data collected through two
ways that is; it involves the used primary data and secondary data.
1. Primary Data:
The primary data is collected by supplying questionnaires to the employees, which
consists of 18 questions and also gathered information by interaction of the Executives
and employees of various departments with the sample size of 105.
Sample selection: random selection
Questionnaire method:
Questionnaire is prepared and pre-tested before using it for data collection. Questionnaire
is circulated to all technicians and non-technicians for data collection. It is a structured
one consisting, which are close and having fixed response pattern with multiple answers.
2. Secondary data
Secondary data is collected from books, manuals, brochures and annual reports of the
company provided by HERITAGE and from HERITAGE old records and company web
sites

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 LIMITATIONS

 The major limiting factor is project duration which is of 45 days during which entire
study can‘t be conducted.

 Past welfare measures are not taken in to consideration

 The foremost thing is that organization secrecy stand on the way to find out the
organization information regarding some aspect of the study.
 The sample size is only 105 and it doesn‘t include all employees of the organization.
 The employees and employers may not reveal the data completely for security reasons.
 Some of the employees were not willing to give detailed information about the
questionnaire.

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CHAPTER-II
INDUSTRY PROFILE

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 INDUSTRY PROFILE

A dairy is a business enterprise established for the harvesting or processing (or both) of
animal milk – mostly from cows or buffaloes, but also from goats, sheep, horses, or camels – for
human consumption. A dairy is typically located on a dedicated dairy farm or in a section of a
multi-purpose farm (mixed farm) that is concerned with the harvesting of milk.

As an attributive, the word dairy refers to milk-based products, derivatives and processes, and
the animals and workers involved in their production: for example dairy cattle, dairy goat. A
dairy farm produces milk and a dairy factory processes it into a variety of dairy products. These
establishments constitute the global dairy industry, part of the food industry.
Sculpture of a cow and calf, Uttar Pradesh, 7th century CE. Collection of the Los Angeles
County Museum of Art. Dairy plays a significant part in numerous aspects of Indian society,
including cuisine, religion, culture, and the economy. India has the world's largest dairy herd
with over 300 million bovines, producing over 187 million tonnes of milk. India is first among
all countries in both production and consumption of milk. Most of the milk is domestically
consumed, though a small fraction is also exported. Indian cuisine, in particular North Indian
cuisine, features a number of dairy products like paneer, while South Indian cuisine uses more
yogurts and milk. Milk and dairy products play a part in Hindu religious practice and legend.

Dairy production in the Indian subcontinent has historical roots that go back 8,000 years to the
domestication of zebu cattle. Dairy products, especially milk, were consumed on the
subcontinent at least from the Vedic period. In the mid- to late 20th century, Operation
Flood transformed the Indian dairy industry into the world's largest. Previously, milk production
in India occurred mainly on household farms.

The economic impact of the dairy industry in India is substantial. Most of the milk produced
comes from buffalo; cow milk is a close second, and goat milk a distant third. A large variety of
dairy products are produced in India. Dairy imports into India are negligible and subject to
tariffs. The domestic industry is regulated by government agencies such as Ministry of Animal
Husbandry, Dairying and Fisheries; National Dairy Development Board; and Food Safety and
Standards Authority of India.
Early period:

15
The history of dairy in the Indian subcontinent goes back roughly 8,000 years to the first
domestication of zebu cattle, which is thought to have originated in India. By the beginning of
the Indus Valley Civilisation (c. 3300 – c. 1300 BCE), zebu cattle had been fully domesticated
and used for their milk. They are abundantly represented in the osteological remains and
ceramics of the time. The water buffalo is also indigenous to South Asia. While wild populations
were present long before domestication, they were domesticated and used for ploughing and milk
by the time of the Indus Valley civilisation. Goats and sheep were also domesticated in the Indus
valley, though it is uncertain if they were milked.

In the Vedic period (c. 1500 – c. 500 BCE), milk was one of the primary elements of the typical
diet. Milk and milk products including clarified butter were consumed. The Vedas refer to milk
in a number of passages and contains over 700 references to cows, which are described with high
regard and referred to as aghnya (not to be killed). Both the Vedas and the Pali canon, which are
rich in descriptions of contemporary culture, contain numerous references to offerings of milk
products and their processing. Milk, generally boiled cow milk, was used for preparing a mixture
with grains, and gruel with parched barley.

Yogurt (curd) was another form in which milk was consumed during the period. The Vedas
describe curdling of milk by mixing a portion of soured milk into it. They also mention curdling
of milk by the addition of plant substances such as the bark of the palash tree and the fruit
of jujube, which may have contained rennet-like enzymes. These are some of the earliest
documented references to enzymatic cheese-making. Indologist Wendy Doniger compares Vedic
peoples to American cowboys, noting that they would often go on raids for the cattle of their
rivals. She further observes that Vedic groups viewed cattle as a form of wealth.

According to the Sutra literature, during the period c. 800 – c. 300 BCE, boiled rice with milk or
curd continued to be a common food item. Cows used to be milked twice a day. The ones which
were pregnant or undergoing their estrous cycle or nursing a calf of another cow were not
milked. The preparation of payasa is also noted. Madhuparka – a mixture of honey with curds or
ghee was used for welcoming guests. The preparation of a sweet with clarified butter as one of
the ingredients is also mentioned. The Buddhist and Jain texts of the period also regard milk and
its products important articles of food, with milk-rice being especially favoured. They mention

16
preparations made from curds, butter and buttermilk. The milk of camels and goats were also in
use, in addition to that of cows and buffaloes.

Milk, curds, and ghee were important elements of food in the Indian subcontinent over the reigns
of rulers from different religious backgrounds. A number of foreign travellers noted the presence
of dairy products in the Indian diet.
Modern period:
A rail car carrying milk, labelled Operation Flood, at Renigunta Junction in Renigunta

Dairy in India was once a largely subsistence-oriented occupation intended to produce milk for
home consumption. In 1919, a dairy animal census was conducted for the first time by British
colonial officials. A report authored in 1937 indicated a sub-optimal rate of milk consumption in
the country. It estimated a per capita intake of 7 ounces (200 g) per day (inclusive of all dairy
products), which was the lowest among all large dairy countries. Low productivity of dairy
animals and widespread poverty were the challenges in increasing dairy production and
consumption. Consumption varied by geographic and economic conditions, but was on the whole
quite low.

In the 1920s, modern milk processing and marketing technologies were introduced in India.
The National Dairy Development Board (NDDB) was founded in 1965. It launched Operation
Flood in 1969–70, a programme aimed at modernising and developing the dairy sector using co-
operatives. During this period, dairy co-operatives emerged as a dominant force, as a result of the
exploitative nature of private milk plants and vendors. Co-operatives were based on the "Anand
model" – a three-tier organisational structure comprising (i) village-level co-operative societies
(the primary producers), (ii) district-level co-operative producers' unions which collected the
milk and operated processing plants, and (iii) state-level federations for marketing. This model
was evolved in Anand, Gujarat, having begun there in 1946, and came to be adopted all over the
country. Operation Flood proceeded in three phases. Phase I (1970–1981) focussed on
developing dairy production in areas surrounding New Delhi, Mumbai, Kolkata,
and Chennai. Phase II (beginning 1986), a larger phase of the project, expanded investment to
147 urban centres across the country. Phase III, which continued to the mid-1990s, expanded
investment still further, to a number of smaller towns. In addition to investments by the

17
government of India, several phases of Operation Flood were funded in part by the World
Bank and European Economic Community.

India has been the world's largest milk producer since 1997, when it surpassed the United States.

Cuisine:

Dairy has been an integral part of Indian cuisine from ancient times to the present. North Indian
cuisines are particularly well known to rely heavily on dairy products. A distinctive feature
of Punjabi cuisine is the use of paneer, a type of cheese. The Punjabi dal makhani is a rich stew
of black lentils, kidney beans, butter and cream. The popular paneer dishes include mattar
paneer, palak paneer, shahi paneer, paneer kofta, and paneer bhurgy. Paneer is also used for
making paneer pakora (a fried snack) and paneer paratha (a layered chapati stuffed with
paneer). Ghee, a form of clarified butter, is commonly used in Indian cuisine. It used with rice
preparations such as biryani and as a spread on unleavened breads (roti). It has a strong flavour
and is also used as cooking oil. Cream is also usually used in dishes in North Indian cuisines to
make the gravy rich and creamy.

Another common use of milk is in tea (chai). Most tea consumed in India is sugared milk
tea. Drinking tea became ingrained in Indian culture over the 20th century, with a per capita
consumption of 0.78 kilograms (1.7 lb) as of 2018.

Production:

India has the highest level of milk production and consumption of all countries. The annual
production was 186 million tonnes as of 2018.

As of 2020, approximately 4.2% of India's gross domestic product was due to dairy
production. In 2019, the Indian dairy sector was reported to be growing at 4.9% yearly. In 2018–
19, the Government of India reported that 187.7 million tonnes of milk had been produced, and
that the per capita availability of milk in India was 394 grams per day.

India has a population of over 300 million bovines as per the 2019 livestock census, including
192.49 million cattle and 109.85 million buffaloes. Nearly half of the milk produced in India
comes from water buffaloes, as opposed to cows; previously, water buffalo produced the
majority of milk in India. As of 2019, buffaloes produced 91.82 million tonnes of milk. Goat
milk is the third-most produced variety of milk, with a contribution of 4% as of 2017–18. The

18
predominant genotype in Indian native breeds of cows and buffaloes is described as A2A2,
meaning they produce A2 milk.

The population of indigenous breeds of cattle has steadily been decreasing, while that of the
more productive exotic and cross-bred breeds has been increasing. Indigenous cows produce
about 3.73 kilograms (8.2 lb) of milk per day, compared to 7.61 kilograms (16.8 lb) per day for
cross-bred cows and 11.48 kilograms (25.3 lb) per day for exotic cows.[39] However, according to
some experts, the milk of indigenous cows has higher nutritional value and thus their declining
population can have long-term health and environmental effects.

Today, India is largely self-sufficient in milk production. Until the country's independence in
1947, dairy production and trade were almost entirely in the household sector. Isolated attempts
at forming milk production co-operatives were made in the 1930s and 1940s, but this was
successful only after independence. Milk production in India increased approximately threefold
between 1968 and 2001, when it reached 80 million metric tonnes per year. As of 2004–05, milk
production was estimated to be of 90.7 million metric tonnes. As of 2010, the dairy industry
accounted for 20% of India's gross agricultural output.

In Maharashtra alone, there are approximately 4 million dairy farmers, although as of

2014 Gujarat had the highest dairy output of the states and union territories of India. The
livestock sector in India is characterised by large numbers but little productivity across species.
As of 1992, the number of cattle, the most populous species, was 204 million. Dairy production
in India comes primarily from small-scale dairy farmers; most of India's 75 million rural dairy
farms consist of 10 cattle or less and are family-owned and operated.

Processing:
Packaged milk:
Amul facility in Gujarat, According to estimates, about 25% of the total milk produced
undergoes commercial processing, of which about 70% is sold as packaged milk while the
remaining 30% is used for preparation of dairy products. Packaged milk is typically pasteurised
milk, and is usually a mixture of cow milk and buffalo milk since most dairies do not have
separate collection systems for them. It is sold in variants on the basis of the fat content:

Variant % fat % solid-not-fat (SNF)

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Full cream milk 6% 9%

Standardised milk 4.5% 8.5%

Toned milk 3.0% 8.5%

Double toned milk 1.5% 9%

Skimmed milk 0.5% 8.7%

Dairy products:

A large variety of dairy products are produced in India through methods that have developed in
complex ways. As far back as the 1630s, the Bengal region was noted for its milk-based desserts,
for which the region is famous even today. According to a 2014 estimate by Euromonitor, the
value of retail sales of packaged dairy products was US$10.2 billion.

Fermentation-based processes are used to produce products such as dahi, shrikhand, mishti
doi, lassi and chaas. About 7–9% of the total milk production is used for making dahi intended
for direct consumption. Dahi is largely made at homes, though it is also industrially produced.
Shrikhand is sweetened and dewatered dahi, very popular in western and parts of southern
India. Mishti doi is another variant of sweetened dahi popular in eastern parts of the country.
While it commonly uses cane sugar as the sweetener, some variants may use palm jaggery.
Shrikhand and mishti doi are usually consumed as desserts or snacks. Lassi is a sweetened
buttermilk, popular in north India. Lassi is industrially produced through ultra-high-temperature
processing.

Additive coagulation processes yield paneer and chhena. Paneer is prepared by adding an acidic
coagulant to heated milk and then pressing and draining the mixture under mechanical
pressure. Paneer was historically produced in homes using high-fat buffalo milk, and is one of
the most used dairy products. An estimated 5% of all milk is turned into paneer. Chhena is
another traditional dairy product, also prepared by adding an organic acid coagulant to hot milk.
It is similar to paneer but softer and hence formless. It is not consumed directly, but used as a
base or filler material for preparation of a variety of Indian sweets such

20
as rasgulla, rasmalai and sandesh. The country's production of chhena was estimated to be
200,000 tonnes annually in 2009.

Consumption:

Milk consumption levels are not uniformly distributed across India. The people of northwest
India are significant consumers; northeasterners consume less. States with higher consumption of
meat and eggs are noted to have lesser consumption of milk, as dairy products are one of the few
sources of protein for vegetarians. Milk has an income elasticity of demand greater than unity:
consumption increases as income levels rise.

Per capita consumption of milk over 30 days was 4.333 litres (1.145 US gal) for rural households
and 5.422 litres (1.432 US gal) for urban households as of 2011–12. The corresponding monthly
expenditure was ₹116.33 for rural and ₹186.47 for urban consumers respectively.

As of 2018, fluid milk consumption was projected at 67.7 million tonnes, and was growing at a
rate of 6–7 million tonnes annually. Ghee is the most consumed among value-added dairy
products. Demand for non-fat dried milk (NFDM) and butter was projected to be 600,000 tonnes
and 5.6 million tonnes respectively. Demand for pasteurised milk produced in the formal
(organised) sector has been increasing, probably due to its perceived safety over the milk
produced in the unorganised sector

21
National Dairy Development Board (NDDB):
The National Dairy Development Board (NDDB) is a statutory body set up by an Act
of Parliament of India. It is under the ownership of Ministry of Fisheries, Animal Husbandry and
Dairying of the Government of India. The main office is in Anand, Gujarat with regional offices
throughout the country. NDDB's subsidiaries include Indian Dairy Machinery Company
Limited, Mother Dairy and Indian Immunologicals Limited, Hyderabad. The Board was created
to finance and support producer-owned and controlled organisations. Its programmes and
activities seek to strengthen farmer cooperatives and support national policies that are favourable
to the growth of such institutions. Cooperative principles and cooperative strategies are
fundamental to the board's efforts.
Meenesh Shah is currently the Chairman of NDDB. It was founded by Dr. Verghese Kurien. The
National Dairy Development Board {NDDB} was created in 1965, fulfilling the desire of the
then prime minister of India — the late Lal Bahadur Shastri to extend the success of the Kaira
Cooperative Milk Producers' Union (Amul) to other parts of India.
In year 2012, under the national dairy plan (NDP) programme, NDDB had initiated plans to
boost dairy farming by targeting 40,000 villages in 14 major milk producing states including
Punjab. The project was aimed at covering about 2.7 million milch animals in these states.
In October 2020, National Dairy Development Board (NDDB) has launched a Manure
Management Initiative at the Mujkuva Dairy Cooperative Society (DCS) in Anand district,
wherein biogas plants are installed by the dairy farmers in their backyard for producing gas to be
used as cooking fuel. In addition to bio-gas, bio slurry produced from these biogas plants will
also be primarily used by the farmers in their own fields and surplus bio slurry can be sold to
other farmers or converted in to organic fertilisers.
In 2000, in accordance of the plans of NDDB to reach out to more states, it has signed an MoU
with the administration of Ladakh to promote dairying and rural livelihoods in the newly formed
union territory

22
Cattle and dairy production:
Illustration from Cow-Keeping in India, a 1900 work on cattle management. The key regulatory
body for dairy production is the Department of Animal Husbandry and Dairying (DAH&D),
which is under the Ministry of Animal Husbandry, Dairying and Fisheries. Prior to 1991, dairy
was managed within a division of the Ministry for Agriculture; a separate department was
established in order to combine dairy-related functions from the Agriculture and Food Processing
Ministries. DAH&D manages livestock and deals with matters concerning the development of
the dairy industry. It is also the managing authority for the National Dairy Development
Board (NDDB), a research institute established by Verghese Kurien to finance and develop the
Indian dairy industry. The NDDB also administers the National Dairy Plan on behalf of the
government of India. Within DAH&D, the Cattle Division focuses on dairy development. Since
2014, the birthday of Verghese Kurien, 26 November, has been commemorated as National Milk
Day.

Certification of cattle health is conducted by the Veterinary Council of India, which is funded by
the DAH&D. The Veterinary Council of India establishes regulations for inspection of dairy
cattle, and for measures to control the spread of disease and strengthening livestock. Livestock in
the dairy industry are also regulated by the Prevention of Cruelty to Animals Act 1960, under
which guidelines are issued regarding milking, artificial insemination, and transport of cattle.
These guidelines are monitored and enforced by the DAH&D. The slaughter of dairy cattle, and
cows in particular, is prohibited in many states in India, and in 2017, the Union Government
issued the Prevention of Cruelty to Animals (Regulation of Livestock Market) Rules 2017 which
prohibited the sale of lactating cattle for slaughter.

Under the Essential Commodities Act 1955, the Government of India can issue orders to control
the regulation, supply and sale of products in India. The Milk and Milk Products Order (MMPO)
issued under this act in 1992 is still in force, and requires any person handling more than 10,000
liters of milk to register with the Central and State Governments.

23
Adulteration and food safety:

"Synthetic milk" – a mixture of urea detergent powder, vegetable oil, fat, and salt, and water –
has been sold openly as milk in the northern Indian states. The mixture has colour and fat content
similar to that of natural milk, but can be produced at a fraction of the price. Adulteration of
ghee, sweets and other dairy products with lard and animal fats is common in India. Rampant
adulteration has been observed during the festive season when the demand for sweets and other
milk products increases. The Supreme Court of India has favoured life imprisonment as the
maximum penalty for milk adulteration, and this has been implemented in Uttar Pradesh, West
Bengal and Odisha.

The regulatory authority for dairy products intended for consumption is the Food Safety and
Standards Authority of India (FSSAI), which operates under the Ministry of Health and Family
Welfare in the Government of India. A survey by the FSSAI in 2019 found that 93% of the milk
samples tested were safe for human consumption, but nearly 41% of the samples fell short of
some safety parameter. Contamination was found to be the more serious problem than
adulteration. Contaminants found included Aflatoxin M1 (in 5.7% of samples)
and antibiotics (1.2%). Adulterants – hydrogen peroxide, urea, detergents and neutralisers – were
found in 12 of the 6,432 samples tested. In May 2020, a report by the Consumer Guidance
Society of India (CGSI) in found that as much as 79% of the milk in Maharashtra is adulterated.

Environmental impact:

In May 2020, the National Green Tribunal directed the Central Pollution Control Board to issue
guidelines that would allow pollution control authorities to monitor the environmental impact of
dairy farming in India, taking particular note of the impact on local waterbodies, the quantity
of methane emissions from dairy farming, and the handling of animal waste. The directions arose
during the hearing of a case concerning environmental norm compliances by dairies in India. The
new guidelines accordingly issued by the Central Pollution Control Board require dairies to be
located at a minimum distance from residential areas and roads, as well as implementing a
licensing regime, regular environmental audits, and checks on water usage by dairy farms

24
CHAPTER-III
COMPANY PROFILE

25
 COMPANY PROFILE
The Heritage Group, founded in the year 1992 by Sri Nara Chandra Babu Naidu, is one
of the fastest growing Private Sector Enterprises in India, with five-business divisions viz.,
Dairy, Retail, Agri, Bakery and Renewable Energy under its flagship Company Heritage
Foods Limited (Formerly known as Heritage Foods (India) Limited). The annual turnover of
Heritage Foods crossed Rs.1606 crores in 2020--21. Presently Heritage‘s milk products have
market presence in Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Maharastra, Odisha and
Delhi and its retail stores across Bangalore, Chennai and Hyderabad. Integrated agri operations
are in Chittoor and Medak Districts and these are backbone to retail operations and the state of
art Bakery division at Hyderabad, and AndhraPrades the year 1994, HFIL went to Public Issue to
raise resources, which was oversubscribed 54 times and its shares are listed under B1 Category
on BSE (Stock Code: 519552) and NSE (Stock Code: HERITGFOOD)

ABOUT THE FOUNDER:

Sri Chandra Babu Naidu is one of the greatest Dynamic, Pragmatic, Progressive and
Visionary Leaders of the 21st Century. With an objective of bringing prosperity in to the rural
families through co-operative efforts, he along with his relatives, friends and associates promoted
Heritage Foods in the year 1992 taking opportunity from the Industrial Policy, 1991 of the
Government of India and he has been successful in his endeavor.

At present, Heritage has market presence in all the states of South India. More than three
thousand villages and five lakh farmers are being benefited in these states. On the other side,
Heritage is serving more than 6 lakh customers needs, employing more than 700 employees and
generating indirectly employment opportunity to more than 5000 people. Beginning with a
humble annual turnover of just Rs.4.38 crores in 1993-94, the sales turnover has reached close to
Rs.300 crores during the financial year 2015-2016.

26
 Sri Naidu held various coveted and honorable positions including Chief Minister of
Andhra Pradesh, Minister for Finance & Revenue, Minister for Archives & Cinematography,
Member of the A.P. Legislative Assembly, Director of A.P. Small Industries Development
Corporation, and Chairman of Karshaka Parishad.Sri Naidu has won numerous awards including
" Member of the World Economic Forum's Dream Cabinet" (Time Asia ), "South Asian of the
Year " (Time Asia ), " Business Person of the Year " (Economic Times), and " IT Indian of the
Millennium " ( India Today).

Sri Naidu was chosen as one of 50 leaders at the forefront of change in the year 2000 by
the Business Week magazine for being an unflinching proponent of technology and for his drive
to transform the State of Andhra Pradesh .

FORWARD LOOKING OUTLETS:

―We have grown, and intended to grow, focusing on harnessing our willingness to
experiment and innovate our ability to transform our drive towards excellence in quality, our
people first attitude and our strategic direction.

MISSION:

Bringing prosperity into rural families of India through co-operative efforts and providing
customers with hygienic, affordable and convenient supply of " Fresh and Healthy " food
product.

VISION:

 To be a progressive billion dollar organization with a pan India foot print by 2020.
 To achieve this by delighting customers with "Fresh and Healthy" food products, those are a
benchmark for quality in the industry.

 We are committed to enhanced prosperity and the empowerment of the farming community
through our unique "Relationship Farming" Model.
 To be a preferred employer by nurturing entrepreneurship, managing career aspirations and
providing innovative avenues for enhanced employee prosperity

27
HERITAGE SLOGAN:

When you are healthy, we are healthy

When you are happy, we are happy

We live for your "HEALTH & HAPPINESS".

QUALITY POLICY OF HFIL:

We are committed to achieve customer satisfaction through hygienically processed and

packed Milk and Milk Products. We strive to continually improve the quality of our products and
services through up gradation of technologies and systems.

Heritage's soul has always been imbibed with an unwritten perpetual commitment to
itself, to always produce and provide quality products with continuous efforts to improve the
process and environment.

Adhering to its moral commitment and its continuous drive to achieve excellence in
quality of Milk, Milk products & Systems, Heritage has always been laying emphasis on not
only reviewing & re-defining quality standards, but also in implementing them successfully. All
activities of Processing, Quality control, Purchase, Stores, Marketing and training have been
documented with detailed quality plans in each of the departments.

Today Heritage feels that the ISO certificate is not only an epitome of achieved targets,
but also a scale to identify & reckon, what is yet to be achieved on a continuous basis. Though, it
is a beginning, Heritage has initiated the process of standardizing and adopting similar quality
systems at most of its other plants.

28
COMMITMENTS:

Milk Producers:

Change in life styles of rural families in terms of:

 Regular high income through co-operative efforts.

 Women participation in income generation .
 Saved from price exploitation by un-organized sector .
 Remunerative prices for milk .
 Increase of milk productivity through input and extension activities
 Shift from risky agriculture to dairy farming
 Heritage
 Financial support for purchase of cattle; insuring cattle
 Establishment of Cattle Health Care Centers
 Supplying high quality Cattle feed
 Organizing "Rythu Sadasu" and Video programmes for educating the farmers in dairy
farming.

Customers:

 Timely Supply of Quality & Healthy Products

 Supply high quality milk and milk products at affordable prices
 Focused on Nutritional Foods
 More than 4 lakh happy customers
 High customer satisfaction
 24 hours help lines ( <10 complaints a day)

29
Employees:

 Enhancing the Technical and Managerial skills of Employees through continuous training
and development.
 Best appraisal systems to motivate employees.
 Incentive, bonus and reward systems to encourage employees.
 Heritage forges ahead with a motto "add value to everything you do".

Service:

 Highest impotence to investor service; no notice from any regulatory authority since
2001 in respect of investor service.
 Very transparent disclosures.

Suppliers:

Technical collaboration in Milk drinks, yogurts drinks and fruit flavored drinks Alfa-
Laval: supplier of high-end machinery and technical support focusing on Tetra pack association
for products package.

Society:

 Potential Employment Generation:

 More than 3500 employees are working with heritage.
 More than 9500 procurement agents got self employment in rural areas.
 More than 5000 sales agents associated with the company.
 Employment for the youth by providing financial and animal husbandry support for
establishing MINI DAIRIES.
 Producing highly health conscious products for the society.

30
QUALITIES OF MANAGEMENT PRINCIPLES:

1. Customer focus to understand and meet the changing needs and expectations of
customers.
2. People involvement to promote team work and tap the potential of people.
3. Leadership to set constancy of purpose and promote quality culture trough out the
organization.
4. Process approach to assess the efficiency and effectiveness of each process.
5. Systems approach to understand the sequence and interaction of process.
6. Factual approach to decision making to ensure its accuracy.
7. Continual improvement processes for improved business results.
8. Development of suppliers to get right product and services in right time at right place.

PRODUCT/MARKET WISE PERFORMANCE:

The total turnover is Rs 341 Crores during the financial year 2006-07 against the turnover
of 292.02 Crores in 2005-06. Today Heritage distributes quality milk & milk products in the
states of A.P, Karnataka, Kerala & Tamilnadu.

During the year 2016-17 liquid milk sales was Rs.28329.79 lakhs against Rs.24525.23
lakhs in the previous year. The sales of milk products including bulk sales of cream, ghee and
butter were recorded Rs 5781.59 lakhs against Rs 4677.21 lakhs.

Milk Sales:

23% growth was recorded in AP 2.38 lakhs litres per day (LLPD) in 2006-07 against 1.93
LLPD in 2016-17. 13% growth was recorded in Tamilnadu-1.53 LLPD in 2006-07 against 1.35
LLPD in 2005-06. Over all growth of 6% was recorded- 5.49 LLPD in 2016-17 against 5.16
LLPD. Flavored milk sales recorded a growth rate of 77% over 2018-19. Butter milk sales have
gone up by 45% over 2015-16.

31
Outlook:

Considering the growth potential in the liquid milk market, the company has drawn
plans to increase its market share in the existing markets and to enter into new markets there
by doubling revenues in dairy business in the next 3 years. To achieve this object, company
is undertaking major expansion in dairy business by inverting over Rs20 crores during 2006 -
07 and over Rs10 crores during the current year to strengthen the milk procurement.

CODE OF CONDUCT AND ETHICS:

FOR DIRECTORS & SENIOR MANAGEMENT
Preface:

This Code of Conduct and Ethics (herein after referred to as the "Code") has been
adopted by the Board of Directors of Heritage Foods (India) Limited (herein after referred to
as "the Company") , to be applicable to all Directors and all members of senior management
i.e., personnel who are a part of the core management team and including all functional heads
of the company (herein after referred to as the 'Members') with effect from December 23,
2020.

This Code helps the Members maintain good standards of business conduct, foster
ethical and moral conduct and promote a culture of honesty and accountability, so as to set
an example to others in the company. The Code is not an all-inclusive comprehensive policy
and cannot anticipate every situation that may arise in the course of the company's business.
The Members are expected to bear in mind the essence and substance of the code in all their
dealings / transactions with the company.
Strict-Compliance:
All Members shall act within the bounds of the authority conferred upon them and undertake
the duty to make and enact informed, judicious and harmonious decisions and policies in the
best interests of the Company and its shareholders / stakeholders. With a view to maintain
the high standards the Company requires, the following rules/ code of conduct to be observed
in all activities. For the purpose of the code, the Company appoints the Company Secretary.

32
Conflict-Of-Interest: The term "Conflict of interest" pertains to situations in which financial
or personal considerations may compromise, or have the appearance of compromising
judgment of professional activities. A conflict of interests exists where the interests or
benefits of one person or entity conflicts with the interests or benefits of the o ther
person/company. All Members should not engage in any business, relationship or activity,
which may be in conflict with the interest of the Company. Conflict may arise in many
situations. It is not possible to cover every possible conflict situation and at times, it will not
be easy to distinguish between the proper and improper activities. Set forth below, are some
of the common circumstances that may lead to conflict of interest, actual or potential.

i. Members should not engage in any activity / employment that interfere with your
performance or responsibility to the Company or otherwise in conflict with or prejudicial
to the interests of the Company.

ii. As a general policy, Members should avoid conducting business with a relative or with a
firm / Company in which a relative / related party is associated in a significant role /
position.

iii. Whenever/ wherever the related party transaction is unavoidable members will fully
disclose their interest in the transaction to the Board or to the CEO of the Company and
due records for such transactions will be maintained as per the statutory requirements.

Honesty & Integrity:

All Members shall conduct their activities, on behalf of the Company and on their
personal behalf, with honesty, integrity and fairness. They will act in good faith, with
responsibility, due care, competence and diligence, allowing independent judgment to their
subordinates. Members shall act in the best interests of the Company and fulfill their
fiduciary obligations.

33
POLICY OF BUSINESS RELATIONSHIP:

The Company will conduct business legally and ethically. The quality of company's
products and the efficiency of its services at the most competitive price is the greatest tool in
conducting the business of the company. Profits do not justify unfair/ unethical practices. All
Members should uphold the highest standards of integrity in all the business relationships.

Intellectual Property Policy:

All Members have utmost obligation to identify and protect the intellectual properties,
trade secrets and confidential information owned by the Company and its clients or
associates as it is critical to the success of the company. "Intellectual Property Rights" (IPR)
means generally patented or potentially patentable inventions, trademarks, copyrightable
subject matters and trade secrets.

Corporate Opportunities:

Members owe a duty to the Company to advance its legitimate interests when the
opportunity to do so arises and are expressly prohibited from improper use of information /
property or taking improper advantage of their position.

Prevention Of Insider Training:

Insider trading is prohibited both by the Law as well as by the company policy . Insider
trading generally involves the act of subscribing to or buying or selling of the Company's
securities, when in possession of any Unpublished Price Sensitive Inform at ion about the
company.
"Price sensitive information” is such information, which relates directly or indirectly
to the company and which if published is likely to materially affect the price of securities of
the Company. It is important to note that both positive and negative information could be
price sensitive.

34
Members shall not derive benefit or assist others to derive benefit or assist them to derive
benefit on their behalf by giving investment advice from the available access to and
possession of information about the company, which is not in public domain and thus
constituting insider information. Members shall comply with the prevention of insider
trading guidelines as issued by Securities Exchange Board of India (SEBI).
Securities Market Policy:

The Company is committed to comply with securities laws in all the markets in which
the Company's securities are listed. The company prohibits fraudulent and unfair trade
practices with regard to the securities of the company by all Members.

Confidentiality Of Information Policy:

The Company's confidential information is a valuable asset. Members shall understand

that protection of all confidential information is essential. Members should undertake and be
committed to protecting business and personal information of confidential nature obtained
from clients, associates, employees.

Any information concerning the Company's business, its customers, suppliers etc
which is not in the public domain and to which the Members have access or possesses such
information, shall be considered confidential and held in confidence, unless authorized to
disclose or such disclosure is required as a matter of law. Members shall not provide any
information either formally or informally, to the press or any other publicity media, unless
specially authorized to do so.

Compliance With Laws, Rules & Regulations:

Members should comply with all applicable laws, rules, and regulations, both in letter
and spirit. In order to assist the Company in promoting the lawful and ethical behavior,
Members have to report any possible violation of law, rules, regulations or the code of
conduct to the Company Secretary.

35
Protection & Proper Use Of Company’s Assets:

All Members have the responsibility to protect the assets of the company, ensure
optimal utilization of assets and to report and record all transactions. Members shall protect
the Company's assets from loss, damages, misuse or theft and assets may only be used for
business purposes and other purposes specifically approved by management and must never
be used for any personal or illegal purposes.

Competition Policy:

The Company shall compete only in an ethical and legitimate manner. It prohibits all
actions that are anti- competitive or otherwise contrary to laws that govern competitive
practices in the market place.
Selecting Suppliers:

The Company's suppliers make significant contribution to its success. The Company's
policy is to purchase / avail supplies based on need, quality, service, price and other
commercial terms and conditions. Suppliers should be selected based on merit, price, quality
and performances. The Company's policy is to select significant suppliers through a
competitive bid process wherever possible. Under no circumstance should the Company or
its employee, agent or contractor attempt to coerce suppliers in any way.

Environment, Health & Safety Policy:

Members shall take environmental consciousness a step further as a company and

contribute to preserving nature as well as safety measures in own respective work areas. All
Members are responsible for conducting safe and environmentally sound operations; this is
in the interest of our own well-being and the quality of life of others. Members shall abide by
this policy.

36
Elimination Of Child Labor:

It is the Company's policy not to support child labor. The Company is committed to
implement the provisions of the Child Labor (Prohibition and Regulation) Act, 1986. To,
promote this the Company encourages its suppliers also to work towards a no child labor
policy in their industries. Members shall strictly observe that no child labor is employed in
the company.

Abolition of Forced Labor:

The Company strictly prohibits forced or compulsory labour. The Company is

committed to ensuring that employees enter into employment and stay on in the Company of
their own free will. Members shall uphold this policy.

Gifts & Donations:

No Member shall receive or offer, directly or indirectly, any gifts, donations,

remuneration, hospitality, illegal payments and comparable benefits which are intended or
perceived to be intended to obtain business (or uncompetitive) favors or decision for the
conduct of the business. Normal gifts of commemorative nature for special events may be
accepted and reported to the Board.
Other Directorships:

The Company feels that serving on the Board of directors of other companies may
raise substantial concerns about potential conflict of interest. Therefore all Directors shall
report / disclose such relationships to the Board on an annual basis. It is felt that service on
the Board of a direct competitor is not in the interest of the Company. Hence all the Directors
are barred in accepting such position without the concurrence of the Board.

37
Accountability:

The Board of Directors (BOD) shall oversee the Company's adherence to ethical and
legal standards. All employees and members of the BOD shall undertake to stop or prevent
actions that could harm customers or reputation of the Company and to report such actions as
soon as they occur to take corrective steps and see that such actions are not repeated.

Compliance With Code Of Conduct:

Each Director and senior management personnel shall adhere to this code of conduct
and affirm compliance with the code on an annual basis as per the Annexure to the Code.
Violation of this Code will lead to appropriate disciplinary action.

Waiver Of The Code:

Any waiver of the applicability of the Code or waiver of application of any provision
of the Code to any Member shall be approved by the Board of Directors and disclosed as
required by Law or SEBI / Stock Exchange regulations.

BRANCHES OF HFIL:

HFIL has 3 wings. They are

1. Dairy
2. Retail
3. Agri Business

1. Dairy:

It is the major wing among all. The dairy products manufactured by HFIL are

 Milk,
 Curd,
 Butter,
 Ghee,
 Flavored Milk,

38
  Paneer,
 Doodhpeda
 Ice Cream.

2. Retail:

In the retail sector HFIL has outlets namely ―Fresh@‖. In those stores the products
sold are vegetables, milk& milk products, grocery, pulses, fruits etc.

In Hyderabad 19 retail shops are there. In Bangalore& Chennai, 3&4 respectively are
there. Totally there are 26 retail shops are there.

Fresh@ is a unique chain of retail stores, designed to meet the needs of the modern
Indian consumer. The store rediscovers the taste of nature every day making grocery
shopping a never before experience. The unique & distinctive feature of Fresh@ is that it
offers the widest range of fresh fruits and vegetables which are directly handpicked from the
farms. Freshness lies in their merchandise and the customers are always welcomed with fresh
fruits and vegetables no matter what time they walk in.

3. Agri Business:

In this business HFIL employees will go to farmers and have a deal with them. Those
farmers will sell their goods like vegetables, pulses to HFIL only. And HFIL will transport
the goods to retail outlets.

The agricultural professors will examine which area is suitable to import vegetables
from and also examine the vegetables, pulses and fruits in the lab. And finally they report to
the Head-Agribusiness. Representatives as per the instructions given by the agri professors
will approach the farmers directly and make a deal with them. It is the process of registering
the farmers.

39
 Heritage Finlease Limited was incorporated under the companies Act 1956 on 23rd
of February 1996 and commenced business from 2nd day of April 1996. The Registered
office is located at 6-3-541/c Punjagutta, Hyderabad-500082.

The following are the directors of the company:

Sri D. Seetharamaiah
Smt. N. .Bhuvaneswari
Sri. M. SivaramaVaraprasad
Sri R.S. Bakkannavar
The Company was registered as Non Banking Financial Institution on 5th Day of
December 1998 by Reserve Bank of India as a Deposit Taking Company under the category
Hire Purchase Company. At Present the company is allowing Dairy Loans to Small Farmers
under Tie up arrangement with Heritage Foods (India) Limited. The Company has been
earning profits from inception and functioning in conformity with the rules and directions of
Reserve Bank of India.

40
 CHAPTER-IV
THEORITICAL FRAMEWORK OF THE STUDY

41
 THEORITICAL FRAMEWORK

WELFARE ACTIVITIES

The term welfare suggests many ideas, meanings and connotations, such as the state of
well-being, health, happiness, prosperity and the development of human resources. The concept
of welfare can be approached from various angles. Welfare has been described as a total concept.
It is a desirable state of existence involving physical, mental, moral and emotional well-being.
All these four elements together constitute the structure of welfare on which its totality is based.
The social concept of welfare implies the welfare of man, has family and his community.

Labour welfare means the adoption of measures to promote the physical, social,
psychological and general well-being of the working population. Welfare works in any industry
aims, or should aim, at improving the working and living conditions of workers and living
conditions of workers and their families.
The concept of labour welfare, however, is flexible, elastic and differs from time to time,
region to region, industry to industry and country to country, depending upon the value system,
level of education, social customs, degree of industrialization and the general standard of the
socio-economic development of a people.
It is also related t o the political situation in a country. Further, it depends upon the kinds
of problems with which society is confronted as well as on the structure of the industry.
Labour Welfare is moulded according to the age group, sex, socio-cultural background,
marital status, economic status and educational level of the employees in various industries. This
nature of the concept of labour welfare makes it very difficult for us to give a precise, all-
inclusive single definition of the phrases.
DEFINITION
Labour welfare has been defined in various ways, though unfortunately no single
definition has found universal acceptance. The Oxford Dictionary defines labor welfare as
―efforts to make life worth living for worker‖.
Another definition implies that welfare is fundamentally an attitude of mind on the part of
management, influencing the method by which management activities are an undertaken. The
emphasis obviously is on the ―attitude of mind‖.

42
 ‗Welfare‘ is a broad concept referring to a state of living of an individual or a group, in a
desirable relationship with the total environment – ecological, economic and social. Welfare
includes both the social and economic contents of welfare. Social welfare is primarily concerned
with the solution of various problems of the weaker sections like development by such means as
social legislation, social reform, social services, social work, social action, etc. The object of
economic welfare is to promote economic development by increasing production and
productivity and through equitable distribution. Employee welfare is a part of social welfare,
conceptually and operationally. It covers a broad field and connotes a state of well-being,
happiness, satisfaction, conservation and development of human resources.

CONCEPT:
Welfare may be viewed as a total concept, as a social concept and as a relative concept. The total
concept is a desirable state of existence involving the physical, mental, moral and emotional
well-being. These four elements together constitute the structure of welfare, on which its totality
is based. The social concept of welfare implies the welfare of man, his family and his
community. All these three aspects are inter-related and work together in a three-dimensional
approach. The relative concept of welfare implies that welfare is relative in time and place. It is a
dynamic and flexible concept.

Welfare implies the setting up of minimum desirable standards and the provision of
facilities like health, food, clothing housing, medical assistance, education, insurance, job
security, recreation, etc. such facilities enable the employee and his family to lead a good work
life, family life and social life. Welfare also operates to neutralize the harmful effects of large-
scale industrialization and urbanization.
DEFINITION:
The Oxford Dictionary defines welfare as ―efforts to make life worth living for
workmen.‖

Chambers Dictionary defines welfare as a state of faring or doing well; freedom form
calamity, enjoyment of health, prosperity, etc.

43
 In the words of R.R.Hopkins, ―Welfare is fundamentally an attitude of mind on the part
of management, influencing the method by which management activities are undertaken.‘
Arthur James Todd defines welfare work as ―anything done for the comfort and
improvement, intellectual and social, of the employees over and above the wages paid, which is
not a necessity of the industry.‖

In the Report 2 of the ILO Asian Regional Conference, it has been stated that employee‘s
welfare may be understood to mean ―such services, facilities and amenities, which may be
established outside or in the vicinity of undertakings, to enable the persons employed therein to
perform their work in healthy and congenial surroundings and to provide them with amenities
conducive to good health and high morale.‖

The Report of the committee on Labor Welfare (1969) includes under it ―such services,
facilities and amenities as adequate canteens, rest and recreation facilities, sanitary and medical
facilities, arrangements for travel to and from work and for the accommodation of workers
employed at a distance from their homes and such other services, amenities and facilities
including social security measures as contribute to improve working conditions under which
workers are employed.‖

According to N.M.Joshi, welfare work ―covers all the efforts which employers make for
the benefit of their employees over and above the minimum standards of working conditions
fixed by the Factories Act and over and above the provisions of the social legislations providing
against accident, old age, unemployment and sickness.‖

SCOPE:
The concept of welfare is a very wide one and is more or less synonymous with
conditions of work as a whole.

 It may include not only the minimum standard of hygiene and safety laid down in general
labor legislation, but also such aspects of working life as such insurance schemes,

44
 measures for the protection of woman and young workers, limitations of hours of work,
paid vacations, etc.

 The definition is much more limited, and welfare, in addition to general physical
conditions, is mainly concerned with the day – to – day problems of the employees and
the social relationships at the place of work.

 Welfare services should include all extra – mural and intra – mural welfare work,
statutory and non – statutory welfare facilities undertaken by the employers, government,
trade unions or voluntary organizations and also social security measures which
contribute to employee‘s welfare.

In order to obtain a clearer understanding of its scope, welfare is broadly divided into two
categories:

a) Statutory welfare – consists of those provisions of welfare work which depend for their
implementation of the coercive power of the government.

b) Non – Statutory welfare – includes all those activities which employers undertake for the
welfare of their employees on a voluntary basis.

ROLE OF INTERNATIONAL LABOUR ORGANIZATION

The ILO was setup in 1919 to bring government employers and trade unions together for
social justice and better living conditions everywhere. It is a tripartite organization with
worker and employers representatives taking part in its work an equal status with those of
government. The number of ILO member countries now stands at 170 in 196, the
organization celebrated its fifteenth anniversary and was awarded the Nobel peace prize. Its
secretariats based Geneva, Switzerland.

In its preamble the ILO proclaim the right of all human beings "to pursue both their
material well being and treys spiritual development in conditions of freedom and dignity of

45
 economic security an equal opportunity. It further states, poverty anywhere constitutes a
danger to prosperity every were".

CONTRIBUTION OF ILO:

ILO conventions cover a wide of social problems including basic human right matters
(such as freedom of association, abolition of forced Labour, and domination of
discrimination of employment), minimum, wages, Labour administrations industrial relations
employment policy working conditions, social security, occupational safety, health and
employment at sea.

Protection:
Occupational safety and health is a key focus of the program and other issues currently
on the agenda include working time arrangements, improved work organization, work related
disorders, stress and workers privacy & quality of treatment for migrant workers and the
protection of working children and abolition of child Labour are given special attention.

ILO'S contribution to Labour:

As enshrined in the Philadelphia declaration (1944) the ILO reaffirmed its commitment to
the field of Labour in the following areas.

Provision Regarding Welfare of Workers

Section 42 to 50 of the Act contains provision regarding the welfare of workers. There
are:
Washing Facilities (Sec. 42)

In every sector, employing 250 workers, adequate & suitable facilities for washing shall
be provided & maintained for the use of workers therein separate & adequately screened
facilities shall be provided for the use of Male and Female workers.

46
In a Facilities for storing & drying clothing (Sec.43)

Factory employing 280 of more workers necessary of arrangements are required

to be made for the storage of clothes not worn during working hours and for the drying of wet
clothing.

Facilities for sittings (Sec.44)

a) In every factory suitable arrangements should be made for silting & maintained for all workers
obliged to work in a standing position in order that they may take advantage of any opportunity
for rest, which may occur in the course of works.
b) If in the opinion of chief inspector workers by a particular room are Able to work efficiently
in a sitting position he may by an used in Writing direct the occupies of the factory to provide
sitting Arrangement before a specified date

First Aid Appliance (Sec. 45):

At least one first aid box containing prescribed medical items should be kept in all
factories. In addition to this, there should be at least one first aid box for 150 workers ordinarily
employed at a time. A first aid register should always be kept along with the box, and all
dispensations should be entered in it.

Ambulance Room:
Every factory employing five hundred of most should maintain ambulance room staffed
by a doctor, a compounded and a nurse, and equipped with at least the minimum prescribed
articles. Such factory shall also have an ambulance van available at call.

Canteen (Sec.46)
These are to be provided in factories employing over 215 workers. The state
Government may make rules providing for
a. The date by which the canteen shall be provided
b. Standards in respect of contraction, accommodation, furniture

47
 and other equipment for the canteen.
c. Foodstuffs to be served and the charges which may be levied
for them
d. The constitution of a Managing Committee for the canteen and
representation of workers in the Management of canteen.

Shelter rest rooms and lunchrooms (Sec.47)

In every factory where more than one hundred and fifty workers are ordinarily employed,
adequate & suitable shelter or rest rooms and a suitable lunch rooms with provision for
drinking water where workers can eat meals brought by them shall be provided and maintained
for the use of workers. Where a lunchroom exists no workers shall eat any food in the works
room.

II) The shelters or restrooms or lunchrooms to be provided shall be sufficiently lighted and
ventilated and shall be maintained in a cool and clean condition.
III) The stale government may prescribe the standards in respect of shelters, restrooms etc.,

Crèches (Sec-48):
In every factory, where more than 30 women workers are ordinarily employed there shall
be provided and maintained a suitable room or rooms for the use of children under the age of 6
years of such women. Such rooms must have adequate accommodation and shall be adequately
lighted and ventilated; Facilities must be provided to mothers to feed their children at necessary
intervals.

The act empowers the state government to make rules:

a) Prescribing the location and the standards of

construction, accommodation, furniture and other equipment
in the rooms to be provided.

48
 b) Requiring the provision of additional facilities for the care of children belonging to
women workers including suitable provision of facilities for washing and changing their
clothing.
c) Requiring the provision of free milk or refreshment or both for these children.
d) Requiring that the facilities shall be given to the mothers of these children to feed them at
necessary intervals
Welfare Officer (Sec – 49)

According to Section 49 (1), in every factory wherein 500 or more workers are ordinarily
employed, the occupier should employ such number of welfare officers as may be prescribed.

Classifications of Welfare Programs:-

1. On the basis of welfare work, they may be classified into

a. Intramural Welfare Programs and
b. Extramural Welfare Programs.

2. Based on law, the welfare programs may be classified into

a. Statutory Welfare Programs and
b. Non-Statutory Welfare Programs.

1. (a) Intramural Welfare Programs:-

According to committed of Experts on Welfare facilities for industrial workers,
constituted by the ILO in 1963, the following are Intramural Labour Welfare facilities.
1. Latrines and urinals
2. Washing and Bathing facilities
3. Crèches
4. Rest Shelters
5. Canteens
6. Arrangement for Drinking Water
7. Arrangement for Prevention of fatigue

49
 8. Health service including occupational safety
9. Administrative arrangement to look – after uniform
10. Protective clothing and
11. Shift allowance etc.

1. (b). Extramural Labour Welfare Programme:-

Welfare programme undertaken outside the organization are extramural Labour welfare
programmes. The following are some of the extramural welfare programmes as per the
classification of the ILO

1. Maternity benefits
2. Social Insurance measures including gratuity, pension provident Fund and
rehabilitations, benevolent funds.
3. Medical facilities including programmes for physical fitness and efficiency.
4. family planning and child welfare
5. education facilities including adult education
6. housing facilities
7. recreational facilities including sports, cultural activities, library and reading rooms,
8. holiday homes and leave travel facilities
9. worker‘s Cooperative Stores and Cooperative Thrift and Credit Societies
10. Vocational training for dependants of workers
11. welfare programmes for welfare of women, youth and children
12. Transport facilities

2. (a) Statutory Welfare Programs:-

Factories act 1948, plantation Labour act 1951, Mines act 1952; Motor/Transport workers
Act etc. include certain provisions for the welfare of workers. The following are the statutory
welfare facilities under the factories act, 1948.
washing facilities (Section 42)

50
 1. facilities for storing and drying of clothes (section 43)
2. facilities for sitting (section – 44)
3. First Aid Appliances (section - 45)
4. canteen (Section – 46 )
5. Shelters, Rest Rooms and Lunch Rooms (Sect – 47)
6. crèche (Section – 48 )
7. welfare officer (Section – 49

Non-Statutory Labour Welfare Programme:-

The facilities provided by the management without legal obligation are non-statutory
welfare facilities.
1. housing facilities
2. educational facilities
3. recreational facilities
4. transport facilities
5. medical facilities
6. Cooperatives
The Committee of Experts on Welfare Facilities for the Industrial Workers constituted by
the ILO in 1963 had divided the welfare services in two groups:

a) Welfare amenities within the precincts of the establishment (intra – mural): crèches, rest
shelters and canteens, arrangements for drinking water, uniforms, washing facilities, etc.

b) Welfare amenities outside the establishment (extra – mural): sports, cultural activities,
library and reading room, consumer‘s cooperative stores, credit societies, transport to and
from the place of work, etc.

In India, welfare is of statutory and the non-statutory kinds. Though statutory welfare ensures a
bare minimum of facilities and reasonably good working conditions, employers are free to
provide, or not to provide non-statutory welfare. However, practically all organizations in India
provide non-statutory measures in varying degrees. Why are such organizations involved in

51
extensive welfare measures? This question can be viewed from the point of view of the workers,
the unions and the employers.
1. Viewpoint of employees – Welfare measures must eliminate risk and insecurity. This is to
ensure personal safety and provide them with the equipment and congenial work
atmosphere. Given the employees‘ economic constraints, probably due to large families,
organizations should provide facilities such as transport, medical aid, crèches, and
subsidized food require by the worker.
2. Viewpoint of unions – The role of unions in welfare stems from the workers‘ need for
welfare services apart from those available to them as citizens and members of the
community. Therefore, unions feel that such services ought to be provided either by the
government or the employers.
3. Viewpoint of employers – They provide amenities to discharge their social responsibility,
raise the employees‘ morale, use the workforce more effectively and reduce turnover and
absenteeism. They feel that welfare benefits not only raise employee morale but also
maker it easier for employers to attract and hire competent personnel. Welfare helps build
a positive image of the organization and facilitates dealings with the union.

Importance of Labour welfare in India

Compared to other countries India has much greater need and importance of Labour
welfare work. Such a condition is caused by certain deficiencies in Indian Labour forces, which
are not found in its counter part in other countries.
Briefly, there is following reasons why Labour welfare in India assumes greater
importance than in other countries.

1. Lack of strong Labour union movement

2. Illiteracy

3. Problems of absenteeism and migration

4. Low level of health and nutrition

5. Extreme poverty

52
 6. Lack of training

7. Lack of healthy recreation

8. Industrial backwardness of India

FACTORIES ACT, 1948:

The welfare amenities provided under the Act are given below:
a) Washing facilities (Section – 42): Adequate and suitable facilities for washing shall be
provided and maintained for use of the employees therein.
b) Facilities for storing and dry cloth (Section – 43): The provision of suitable places for
keeping clothing not worn during working hours and for the drying of wet clothing.
c) Facilities for sitting (Section – 44): Sitting facilities for occasional rest for workers who are
obliged to work standing.
d) First – Aid appliances (Section – 45): First – aid boxes or cupboards – one for every 150
employees and ambulance facilities if there are more than 500 employees.
e) Canteens (Section – 46): Canteen to be provided if employing more than 250 employees.
f) Shelters, rest rooms and lunch rooms (Section – 47): To be provided if employing over
150 employees.
g) Crèche (Section – 48): To be provided if employing more than 30 women.
h) Welfare Officer (Section – 49): A factory shall employ a Welfare Officer if it is employing
more than 500 employees.
WELFARE PROVISIONS:

Canteens: Perhaps no employee benefit has received as much attention in recent years as that of
canteen. Some organizations have statutory obligations to provide such facilities as Section – 46
of the Factories Act, 1948 imposes a statutory obligation to employers to provide canteens in
factories employing more than 250 workers. Others have provided such facilities voluntarily.
Foodstuffs are supplied at subsidized prices in these canteens. Some companies provide
lunchrooms when canteen facilities are not available.

53
Shelters, Rest Rooms and Lunch Rooms: Every organization must provide adequate and
suitable shelters or rest rooms and a lunch room, with provision for drinking water, where
employees can eat meals brought by them. In case a canteen is maintained in accordance with the
provisions if Section – 46, it will be a part of this requirement.

Consumer Societies: Most of the large organizations located far from the towns & which
provide housing facilities near the organizations set-up the consumer stores in the employees‘
colonies & supply all the necessary goods at fair prices.

Credit Societies: The objective of setting up of these societies is to encourage thrift & provide
loan facilities at reasonable terms & conditions, primarily to employees. Some organizations
encourage employees to form cooperative credit societies with a view to fostering self-help
rather than depending upon moneylenders whereas some organizations provide loans to
employees directly.
Housing: Of all requirements of the workers, decent and cheap housing accommodation is of
great significance. The problem of housing is one if the main causes for fatigue and worry
among employers and this comes in the way of discharging their duties effectively. Most of the
organizations are located very far from towns where housing facilities are not available. Hence,
most of the organization s built quarters near factory and provided cheap and decent housing
facilities to their employees, whilst an few organizations provide and/or arrange for housing
loans to employees and encourage them to construct houses.

Medical facilities: The organizations have to provide suitably equipped first – aid centers,
ambulance rooms and even regular hospitals either in the factory premises or inside the
township.

Recreational facilities: Recreation is commonly taken to be the opposite of work. It affords an

employee an opportunity to develop his sense of physical and mental discipline. The process of
industrialization itself has accelerated the need for recreational amenities. The recreational
amenities should be established by the industrial organizations outside the place of work,
preferably in working class localities or in industrial housing colonies.

54
Legal Aid: Organizations also provide assistance or aid regarding legal matters to employees as
and when necessary through company lawyers or other lawyers.

Employee Counseling: Organizations provide counseling service to the employee regarding

their personal problems through professional counselors. Employee counseling reduces
absenteeism, turnover, tardiness, etc.

Welfare Organizations and Welfare Officers: Some large organizations setup welfare
organizations with a view to provide all types of welfare facilities at one center and appointed
welfare officers to provide the welfare benefits continuously an effectively to all employee fairly.

Holiday Homes: As a measure of staff welfare and in pursuance of government‘s policy, a few
large organizations established holiday homes at a number of hill stations, health resorts and
other centers with low charges of accommodation, so as to encourage employee use this facility
for rest and recuperation in pleasant environment.
Educational Facilities: Organizations provide educational facilities not only to the employees
but also to their family members. Educational facilities include reimbursement of fee, setting up
of schools, colleges, and hostels providing grants-in-aid to the other schools where considerable
number of students are from the children of employees. Further, the organizations provide
reading rooms and libraries for the benefit of employees.
Transportation: Companies conveyance facilities to their employees fro the place of their
residence to the place of wok as most of the industries are located outside town and all
employees may not get quarter facility.
Parties and Picnics: Companies provide these facilities with a view to inculcating a sense of
association, belongingness, openness, and freedom among employees. These activities help
employees to understand others better.

Miscellaneous: - Organization provide other benefits like organizing games, sports with awards,
setting up of clubs, community service activities, Christmas gifts, Deewali, Pongal & Pooja gifts,

55
Birthdays & Wedding anniversary greetings, leave travel concession and awards, productivity
/performance awards etc.
Eligibility for maternity benefits:
This facility is given to the company workers and not for contract employees. It is given at
the confinement , mis-carriage; sickness arising out of pre-mature births if the insured
woman dies maternity benefit is given for her children and family.

Accidents:
If any accidents occur deals by welfare department three people visit the place of accidents
and compensation is paid according to the injury of the employee. Minimum two people at
working place accident occur has to sign to get disablement benefits.
Employees pension scheme:
The employee provident fund and family pension fund act 1952. The purpose of this scheme
is to provide life assurance benefits t o the employees.

Employees pension scheme for the purpose of providing for Super annotation pension,
retiring pension, widow pension, children pension are given within three month‘s. Minimum
service should be 9 to 10 years then only the employee gets the pension scheme. The sum
from the employer‘s contribution of 8 1/3 % of the basic wage is paid from time to time in
to the pension from in respect of the employee. And this amount should be credited at the
rate of 12% interest to the amount is also credited.

The minimum qualifying service for being eligible for pension is 10 years. If the employer
dies, then monthly contribution is also considered. Family pension becomes payable from
the day immediately following that on which of the family pension fund dies.

Benefits:

The member of the FPF who has contributed to the FPF for period not less than 3 months
dies during service, a lumpsum of 5000 shall be payable to his family. If he dies before a
period of 3 months the amount of his contribution is credited to the FPF together with interest
at the rate of 5 ½% per annum.

56
Gratuity Act 1972

Gratuity is a kind of retirement benefit like provident fund or pension. It is a payment ,

which is intended to help an employee after his retirement whether the retirement is the result
of the rules of super annotation or of some physical disability.

The payment of gratuity is dependent on fulfillment of certain prescribed in the act. It is to

be calculated at the rate of 15 days salary for every completed year of service subject to
maximum of Rs.25000/- gratuity shall be payable to an employee on termination of his
employment after has rendered continuous service for not less than 5 years.

It is one of the social security schemes to the employee, which is given by the employer to
the employee. For this scheme contribution is not necessary from the employee for the
payment of gratuity. The employee depending up on employee‘s service only gives it. For
the eligibility of gratuity employee has rendered continuous services for not less than 5 years.

On certain cases like disablement due to accident or disease or death of the employee
minimum qualifying service is not necessary for eligibility of the gratuity.

EMPLOYEE’S PROVIDENT FUND

The Schemes of provident fund as a social measure are meant to induce employer to save a
portion from their present earnings for rainy day. This scheme was brought into force from
November 1952, and many amendments have been made up to 1995. The minimum limit for
applicability of this act are 10 or more persons. It not used for manufacturing process it is
limited to 20.

The main object of this act is to provide for the institution of the provident funds for
employees. The principles duty is laid upon the employer to put the employee‘s provident
fund and pension scheme in to operation and to make equal contribution of both employee
and employer share to the funds and to deduct from he wages of the employee. The statutory
rate of 8 1/3% of the basic wage. The employee‘s contribution shall be equal to the
contribution payable by the employer in respect of such employee.

57
 The aggregate amount received as the employers and the employee‘s contribution to the fund
shall be credited at provident fund account at regional commissioner office in the form
number 5-A at the rate of 12% interest on both employees and the employer‘s contribution
(i.e.15.67) shall be credited to the members account.

Employee can withdraw from the fund for repayment of loans in special cases. But the
amount of withdrawal shall not exceed the member‘s basic wage and dearness allowance for
36 months. If he employee resigns, he should withdraw after 60 days only. If in this scheme
there is chance for taking advance from the funds in some cases.

Safety clauses:

24 hours safety clauses are given per month to every department in the learning center. For
better improvement in decision-making, problem solving electricity safety, motivation etc.,
specialized persons conduct all these training programs.

Medical facilities:

First aid:

safety officer visits once in a month to the working place. It contains all specified items. 72
people are trained to give first aid. Out of 150 people 15 are trained. Files are maintained
for safety measures and visits. Safety classes are held once in month to the employees in
training center. Safety equipments are well provided.

SWOT ANALYSIS

The term welfare suggests many ideas, meanings and connotations, such as the state of
well-being, health, happiness, prosperity and the development of human resources. The concept
of welfare can be approached from various angles. Welfare has been described as a total concept.
It is a desirable state of existence involving physical, mental, moral and emotional well-being.

58
All these four elements together constitute the structure of welfare on which its totality is based.
The social concept of welfare implies the welfare of man, has family and his community.
Labour welfare means the adoption of measures to promote the physical, social,
psychological and general well-being of the working population. Welfare works in any industry
aims, or should aim, at improving the working and living conditions of workers and living
conditions of workers and their families.
The concept of labour welfare, however, is flexible, elastic and differs from time to time,
region to region, industry to industry and country to country, depending upon the value system,
level of education, social customs, degree of industrialization and the general standard of the
socio-economic development of a people. It is also related t o the political situation in a country.
Further, it depends upon the kinds of problems with which society is confronted as well as on the
structure of the industry.Labour Welfare is moulded according to the age group, sex, socio-
cultural background, marital status, economic status and educational level of the employees in
various industries. This nature of the concept of labour welfare makes it very difficult for us to
give a precise, all-inclusive single definition of the phrases.

59
CHAPTER-IV
DATA ANALYSIS
AND
INTERPRETATION

60
 DATA ANALYSIS& INTREPRETATION
TABLE 4:1 Response regarding on Welfare Activities

ITEM OF SCALE NO.OF RESPONDENTS PERCENT

Excellent 42 40%
Very Good 31 29.5%
Good 20 19%
Satisfactory 12 11.5%
Total 105 100%

Source: Field Study

NO.OF RESPONDENTS
Excellent Very Good Good Satisfactory

11%
40%
19%

30%

Interpretation
From the above table depicts a clear picture that HERITAGE is giving utmost importance
to welfare activities. 40 percent of the employees felt that the welfare activities are excellent.
29.5 percent felt very good extent. 19 percent of people felt that the welfare activities are good
and 11.5 percent felt that they are in satisfactory level

61
TABLE: 4.2 Response regarding employee expectations on welfare activities

ITEM OF SCALE NO. OF RESPONDENTS PERCENT

Excellent 50 47.5%
Very Good 30 28.5%
Good 20 19%
Satisfactory 5 5%
Total 105 100%
Source: Field Study

NO. OF RESPONDENTS
Excellent Very Good Good Satisfactory

5%

19%
48%

28%

Interpretation:
From the above table depicts a clear picture that 47.5 percent of the
employees felt that HERITAGE met their expectations in introducing the welfare activities at an
excellent level but only 5percent of employees felt that HERITAGE is meeting their expectations
in introducing the welfare activities to a satisfactory level.

62
TABLE: 4.3 Responses Regarding the Safety at Work Place:

ITEM OF SCALE NO. OF RESPONDENTS PERCENT

Excellent 50 47.5%
Very Good 30 28.5%
Good 20 19%
Satisfactory 5 5%
Total 105 100%

Source: Field Study

NO. OF RESPONDENTS
Excellent Very Good Good Satisfactory

5%

19%
48%

28%

Interpretation:
From the above table depicts a clear picture that 47.5 percent of employees
felt that the safety at work place is at a great extent, 28.5 percent of respondents felt at very good
extant. 19% of employees felt that the safety at work place is good extent and 5% are in
satisfactory level.

63
TABLE: 4.4 Responses Regarding Opinion about Health & Safety:

ITEM OF SCALE NO. OF RESPONDENTS PERCENT

Excellent 50 47.5%
Very Good 40 38%
Good 10 9.5%
Satisfactory 5 5%
Total 105 100%

Source: Field Study

NO. OF RESPONDENTS
Excellent Very Good Good Satisfactory

5%
9%
48%

38%

Interpretation:
From the above table depicts a clear picture that 47.5percent employees that in
HERITAGE that the health & safety facilities are provided at an excellent level. 38 percent felt
that it is a very good level 9.5 percent 0f people felt that it is very good and 5 percent are in
satisfactory level.

64
TABLE: 4.5 Response Regarding Respondents opinion on Pension facilities:

ITEM OF SCALE NO. OF RESPONDENTS PERCENT

Excellent 53 50.5%
Very Good 35 33%
Good 12 11.5%
Satisfactory 5 5%
Total 105 100%

Source: Field Study

NO. OF RESPONDENTS
Excellent Very Good Good Satisfactory

5%

11%

51%

33%

Interpretation:
From the above table depicts a clear picture that in HERITAGE that the pension facilities are at
an excellent level. It was given by 50.5 percent 33 percent of employees felt very good extent.
11.5 percent felt that the pension facilities are to a good level and 5 percent of employees felt
that it is at a satisfactory level.

65
TABLE: 4.6 Response Regarding Respondents opinion on Provident fund
opportunity

ITEM OF SCALE NO. OF RESPONDENTS PERCENT

Excellent 60 57%
Very Good 30 28.5%
Good 10 9.5%
Satisfactory 5 5%
Total 105 100%

Source: Field Study

NO. OF RESPONDENTS
Excellent Very Good Good Satisfactory

5%
9%

29% 57%

Interpretation:
From the above table depicts a clear picture that 57 percent of the employees felt that the
provident fund opportunity in HERITAGE is at a great extent and 11.5 percent felt very good
level. But a 9.5 percent of people felt that it is good and 5 percent are in satisfactory.

66
TABLE: 4.7 Response Regarding Employees opinion regarding housing
quarters:

ITEM OF SCALE NO. OF RESPONDENTS PERCENT

Excellent 60 57%
Very Good 25 24%
Good 15 14%
Satisfactory 5 5%
Total 105 100%

Source: Field Study

NO. OF RESPONDENTS
Excellent Very Good Good Satisfactory

5%

14%

24% 57%

Interpretation:
From the above table depicts a clear picture that in HERITAGE that the
Excellent level at a great extent. This statement is given by 57 percent of employees. 24 percent
of employees felt that the housing quarters are provided at a very good extent, 14 percent felt
good 5percent felt satisfactory level.

67
TABLE: 4.8 Response Regarding Respondents opinion on vehicle lone
facilities:

ITEM OF SCALE NO. OF RESPONDENTS PERCENT

Excellent 63 60%
Very Good 22 21%
Good 20 19%
Satisfactory 0 0%
Total 105 100%

Source: Field Study

NO. OF RESPONDENTS
Excellent Very Good Good Satisfactory

0%
19%

21%
60%

Interpretation:
From the above table depicts a clear picture that vehicle loan is given in HERITAGE
to the employees at an excellent level. It was given by 60 percent of employees. 21percent of
employees said that it is very good and 19 percent felt good. But no one said that it is bad or
satisfactory.

68
TABLE: 4.9 Response Regarding Respondents opinion on Education facilities
to the employee’s Children:

ITEM OF SCALE NO. OF RESPONDENTS PERCENT

Excellent 54 51.5%
Very Good 31 29.5%
Good 15 14%
Satisfactory 5 5%
Total 105 100%

Source: Field Study

NO. OF RESPONDENTS
Excellent Very Good Good Satisfactory

5%

14%

51%

30%

Interpretation:
From the above table depicts a clear picture that 51.5 percent of employees that HERITAGE is
providing Education facilities to the employee‘s children at an excellent level. 29.5 percent felt
that it is at a very good level. And 14 percent of employees felt that it is good remaining is in
satisfactory l

69
TABLE: 4.10 Response Regarding Management support regarding the
welfare activities:

ITEM OF SCALE NO. OF RESPONDENTS PERCENT

Excellent 45 43%
Very Good 30 28.5%
Good 20 19%
Satisfactory 10 9.5%
Total 105 100%

Source: Field Study

NO. OF RESPONDENTS
Excellent Very Good Good Satisfactory

9%
19% 43%

29%

Interpretation:
From the above table depicts a clear picture that 43percent of people felt that at an excellent level
management supporting the welfare activities. And 28.5 percent of people felt it is at a very good
extent, 20 percent felt it is good, remaining 9.5 percent people at satisfactory level.

70
TABLE: 4.11 Response Regarding Respondents opinion on Stress/strain:

ITEM OF SCALE NO. OF RESPONDENTS PERCENT

Yes 55 52.5%
No 50 47.5%
Total 105 100%

Source: Field Study

NO. OF RESPONDENTS PERCENT

47%
52%

Interpretation:
From the above table depicts a clear picture that in HERITAGE 52.5 percent of
the employees are not feeling stress and strain in workload. Remaining 47.5 percent of people
felt that a little strain in their workload.

71
TABLE: 4.12 Response Regarding Respondents opinion on Relationship with
your peers, superiors and subordinate:

ITEM OF SCALE NO. OF RESPONDENTS PERCENT

Excellent 55 52.5%
Very Good 40 38%
Good 10 9.5%
Satisfactory 0 0%
Total 105 100%

Source: Field Study

NO. OF RESPONDENTS
Excellent Very Good Good Satisfactory

0%
10%

52%
38%

Interpretation:
From the above table depicts a clear picture that 52.5 percent of people felt an
excellent relationship is maintained with peers, superiors and subordinates. 38 percent of people
at a very good extent and 9.5 percent felt good level.

72
TABLE: 4.13 Response Regarding Freedom from performing your job:

ITEM OF SCALE NO. OF RESPONDENTS PERCENT

Yes 85 81%
No 20 19%
Total 105 100%

Source: Field Study

19%

81%

Interpretation:
From the above table depicts a clear picture that Great number of employees that means 81% of
employees are performing job at freedom. To satisfy remaining 19% some concentration should
need at freedom at job to the management.

73
TABLE: 4.14 Response Regarding Opportunity for improvement of skill:

ITEM OF SCALE NO. OF RESPONDENTS PERCENT

Excellent 44 42%
Very Good 31 29.5%
Good 20 195
Satisfactory 11 9.5%
Total 105 100%

Source: Field Study

NO. OF RESPONDENTS
Excellent Very Good Good Satisfactory

10%
19% 42%

29%

Interpretation:
From the above table depicts a clear picture that 42 percent of employees felt
that the opportunity for improvement of skill is excellent, 29.5 percent felt at very good extent.
19 percent felt that it is good rest of 9.5 percent felt that it is satisfactory.

74
TABLE: 4.15 Response Regarding Grievance Settlement forms:

ITEM OF SCALE NO. OF RESPONDENTS PERCENT

Excellent 55 52%
Very Good 25 24%
Good 20 19%
Satisfactory 5 5%
Total 105 100%

Source: Field Study

NO. OF RESPONDENTS
Excellent Very Good Good Satisfactory

5%

19%

52%

24%

Interpretation:
From the above table depicts a clear picture that the grievance settlement forms are at a great
extent said by 52 percent of employees. 24 percent felt that it is very good 19 percent of people
felt that it is good and remaining 5 percent felt satisfactory level.

75
TABLE: 4.16 Response Regarding Growth prospects such as promotions,
transfer, and increments:

ITEM OF SCALE NO. OF RESPONDENTS PERCENT

Excellent 63 60%
Very Good 22 21%
Good 15 14%
Satisfactory 5 5%
Total 105 100%

Source: Field Study

NO. OF RESPONDENTS
Excellent Very Good Good Satisfactory

5%

14%

21%
60%

Interpretation:
From the above table depicts a clear picture that the growth prospects such as promotions
transfer and increments are at a great extent said by 60 percent of employees, 22 percent of
people felt very well. A little number means19 percent of people felt it is good and 5 percent are
in satisfactory level.

76
TABLE: 4.17 Response Regarding Welfare facilities outside the workplace
such as accommodation, transportation health and medical services:
ITEM OF SCALE NO. OF RESPONDENTS PERCENT
Excellent 45 43%
Very Good 35 33%
Good 20 19%
Satisfactory 5 5%
Total 105 100%

Source: Field Study

NO. OF RESPONDENTS
Excellent Very Good Good Satisfactory

5%

19%
43%

33%

Interpretation:
From the above table depicts a clear picture that the facilities outside the workplace such as
accommodation, transportation, health and medical services etc., are at a great extent and very
good to followed by some to good and satisfactory level

77
TABLE: 4.18(a) Response Regarding Recreation and other facilities like
a) Club

ITEM OF SCALE NO. OF RESPONDENTS PERCENT

Yes 65 62%
No 40 38%
Total 105 100%

Source: Field Study

ITEM OF SCALE Yes No

0%

38%

62%

Interpretation:
From the above tables 18(a) depicts a clear picture that the recreation facilities like club are at a
great extent and a little number to a good extent. Corporate society facilities are also at a great
extent. Sports and games facilities are good to a great extent followed by some to a bad extent.

78
b) Corporate Society

ITEM OF SCALE NO. OF RESPONDENTS PERCENT

Yes 75 71.5%

No 30 28.5%

Total 105 100%

Source: Field Study

No
28%

Yes
72%

Interpretation:
From the above tables 18(b) depicts a clear picture that the recreation facilities like club are at a
great extent and a little number to a good extent. Corporate society facilities are also at a great
extent. Sports and games facilities are good to a great extent followed by some to a bad extent.

79
c) Sports and game

ITEM OF SCALE NO. OF RESPONDENTS PERCENT

Yes 85 81%

No 20 19%

105 100%

Source: Field Study

No
19%

Yes
81%

Interpretation:
From the above tables 18(c) depicts a clear picture that the recreation facilities like club are at a
great extent and a little number to a good extent. Corporate society facilities are also at a great
extent. Sports and games facilities are good to a great extent followed by some to a bad extent.

80
 SUMMARY
Welfare activities plays an important role in employee motivation and performance the welfare
activities provided should reach each and every employee working in the organization with this
view the welfare activities providing in HERITAGE are satisfactory in nature.

Heritage understands that its human resources are essential to achieving organisational
excellence and establishing a distinctive character in the cutthroat international market.
HERITAGE successfully manages its business in the refining, marketing, and distribution of
milk products to both the industrial sector and the domestic sector through its refineries in
Visakhapatnam, depots, and regional offices spread over the entire nation. It provides various
light distillates including milk, curd, and butter through a vast network of retail dealerships and
butter distributorships, as well as auto lubricants, to meet the daily demands of its devoted
clients. These tasks are completed by the company's 10,778 (approximate) personnel who work
as managers, clerical staff, and workers. To improve the abilities of different levels of personnel
in HERITAGE conducts regular Training Programmes at its own Management Training Institute
at NIGDI, Pune apart from engaging external agencies for the purpose. It is found that majority
of the employees are satisfied by the welfare amenities provided to them for performing the job.
Hence we can observe that there is at most job satisfaction. This type of freedom is due to proper
flow of communication and good relationship between employee and employer, better leave
facilities, working conditions, proper coordination and cohesiveness among groups. All these
motivate employees to work freely. It is found that motivation can be achieved when his
expectations are met. Through motivation will overcome dissatisfaction even through he is not
satisfied with some aspects. HERITAGE caters to the needs of each and every individual
employee so their satisfactory level is very high regarding facilities and working conditions
provided by HERITAGE. It is found that loyalty, honesty, humanity are the which every human
should posses and when a person is loyal and honest others can trust him. Strong bond of
relationships develops between each other. So, bond of trust and loyalty among the employees is
very high in this organization.

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 FINDINGS
 It was found that HERITAGE is giving importance to welfare activities. More than half of
the employees felt that the welfare activities are excellent followed by many to a very good
extent. Some felt that the welfare activities are good while some felt that they are satisfactory
 It was found that most of the employees felt that HERITAGE met their expectations in
introducing the welfare activities at an Excellent level followed by some to a great extent and
a little percent felt that HERITAGE is meeting their expectations in introducing the welfare
activities to a satisfactory level.
 It was found that in HERITAGE the safety at work place is at a great extent, followed by
many to a very good level. Some employees felt that the safety at work place is good extent
and a little to a satisfactory level.
 It was found from the employees that in HERITAGE that the health & safety facilities are
provided mostly at an excellent level. Some felt that it is a very good level while a little
people felt that it is very good followed by a little to a satisfactory level.
 It was found that in HERITAGE that the pension facilities are at an excellent level followed
by many to a very good extent. Some felt that the pension facilities are to a good level while
a little number of employees felt that it is at a satisfactory level.
 It was found that from the employees that the provident fund opportunity in HERITAGE is at
a great extent mostly and some at a very good level. But a little percent of people felt that it
is good and satisfactory
 It was found that in HERITAGE that the Excellent level at a great extent. Some felt that the
housing quarters are provided at a satisfactory level, very good and good extent.
 It was found that vehicle loan is given in HERITAGE to the employees at an excellent level.
Some said that it is very good and good. But no one said that it is bad or satisfactory.
 It was found that from the employees that HERITAGE is providing the Educational facilities
to the employee children at an excellent level. Some felt that it is at a very good level. A little
number of employees felt that it is good and satisfactory.
 It was found that the grievance settlement forms are at a great extent. Some felt that it is very
good while a little number of people felt that it is satisfactory.

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 It was found that in HERITAGE more number of employees feels that at an excellent level
management supporting the welfare activities. And some people feel that it is very good,
good and satisfied.
 It was found that in HERITAGE half of the employees are not feeling stress and strain in
workload. Remaining people felt that a little strain in their workload.
 It was found that in HERITAGE that more number of people felt an excellent relationship is
maintained with peers, superiors and subordinates at a very good extent followed by many to
a good level.
 Great number of employees are performing job at freedom
 It is found that from the employees that the opportunity for improvement of skill is excellent
followed by many to a very good extent. Some felt that it is good while rest felt that it is
satisfactory.
 It was found that the growth prospects such as promotions, transfer and increments are at a
great extent and very good. A little number of people felt that it is satisfactory.

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 SUGGESTIONS
 Greater emphasis should be laid on Welfare Activities of the organization to feel
excellent for all employees.
 The company Welfare Activities should be explained to the employees and suggest them
how to utilize these benefits.
 From the study it was found that 80% of respondents feel that the Welfare Activities
provided by the HERITAGE was good. Hence it is suggested that the HERITAGE should
concentrate more on Welfare Activities to satisfy remaining 20% of the employees.
 20% of the employees are not satisfied with the company activities to enhance their
skills. Only 80% of the employees are satisfied to enhance their skill. So I suggest that
they should concentrate more on employees to enhance their skills through proper
training.
 I suggest that they should concentrate on employee‘s facilities outside the work place like
accommodation, health & medical by providing all other facilities to the employees they
perform better so that it is very useful to the organization.

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 CONCLUSION

Welfare activities plays an important role in employee motivation and performance the
welfare activities provided should reach each and every employee working in the organization
with this view the welfare activities providing in HERITAGE are satisfactory in nature.

HERITAGE recognizes its Human Resources as the key to achieve organizational excellence and
a glaring identity in the competitive global arena. HERITAGE, with its Refineries in
Visakhapatnam, Depots and Regional Offices in four corners of the country successfully runs its
business in Refining, Marketing and Distribution of Milk Products to both Industrial Sector as
well as Domestic Sector. It has a wide network of Retail Dealership and butters Distributorships
through which it supplies various light distillates like Milk, Curd, and Butter along with Auto
Lubes to serve the day-to-day needs of its valued customers. These activities are carried out by
its 10,778 employees (approx.) who serves the corporation at Managerial, Clerical and Worker
level. In order to enrich the skills of various levels of employees in fields like IT, Technical,
Safety, Management, Behaviour and Office Administration.

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 BIBLIOGRAPHY

a. Aswathapa – Human resource management

b. Deodhar & Sankaran – Labor welfare, trade unionism and industrial
relations
c. C.D.Mamoria – Personnel management
d. K.K.Ahuja – personnel management
e. Tripati sultan chand & sons – Personnel management and industrial
relations.
f. From old records of the company and statistical data of previous records.
Websites:
www.heritage.co.in ,

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 QUESTIONNAIRE ON WELFARE ACTIVITIES
NAME:
DESIGNATION:
DEPARTMENT:
SERVICE IN HERITAGE:
Your evaluation on the Welfare Activities will help us to assess its value. Kindly answer the
following questions.
1) To what extent Welfare Activities are given importance in your organization?
a) Excellent b) Very good c) Good d) Satisfactory
2) Is HERITAGE meeting their expectations in introducing the Welfare Activities?
a) Excellent b) Very good c) Good d) Satisfactory
3) The safety at work-place is
a) Excellent b) Very good c) Good d) Satisfactory
4) To what extent health and safety facilities are provided?
a) Excellent b) Very good c) Good d) Satisfactory
5) Pension facilities are
a) Excellent b) Very good c) Good d) Satisfactory
6) Provident fund opportunity is
a) Excellent b) Very good c) Good d) Satisfactory
7) To what extent Housing Quarters facilities are provided?
a) Excellent b) Very good c) Good d) Satisfactory
8) To what extent Vehicle loan facilities are given by the organization?
a) Excellent b) Very good c) Good d) Satisfactory
9) To what extent the organization is providing the Education facilities to the employee
children?
a) Excellent b) Very good c) Good d) Satisfactory
10) How much support does the management pertaining to Welfare Facilities give?

a) Excellent b) Very good c) Good d) Satisfactory

11) Stress/Strain due to workload is

a) Excellent b) Very good c) Good d) Satisfactory

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12) Relationship with your peers, superiors and subordinates is

a) Excellent b) Very good c) Good d) Satisfactory

13) Freedom for performing your job is

a) Excellent b) Very good c) Good d) Satisfactory

14) Opportunity for improvement of skills is

a) Excellent b) Very good c) Good d) Satisfactory

15) Grievance Settlement Forums are

a) Excellent b) Very good c) Good d) Satisfactory

16) Growth prospects such as promotions, transfers and increments are

a) Excellent b) Very good c) Good d) Satisfactory

17) Welfare facilities outside the workplace such as accommodation, transportation, health and
medical services etc.

a) Excellent b) Very good c) Good d) Satisfactory

18) Recreation and other facilities like

a) Clubs: i) yes ii) No

b) Corporate Society: i) Yes ii) No
c) Sports and games: i) Yes ii) No

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