PROJECT REPORT ON

“LABOUR WELFARE SCHEMES & PRODUCTIVITY”

Submitted To-

UNIVERSITY OF PUNE, PUNEIn Partial Fulfilment of Requirements

For the Award of Degree ofMASTERS IN PERSONNEL MANAGEMENT

Submitted by- SNEHA T.BANGRE MPM (2009-2011)

SINHGAD BUSINESS SCHOOL

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DECLARATION

D E C L A R A T I O N

I, the undersigned, hereby declare that

the Project Report entitled “LABOUR WELFARE SCHEMES &

PRODUCTIVITY” written and submitted by me to the University of

Pune, Pune in partial fulfilment of the requirements for the award of

Degree of Masters in personnel management under the guidance of

MRS. RAMESHWARI KHARAT is my original work and the conclusions

drawn therein are based on the material collected by myself.

Place: Pune Name: SNEHA T. BANGRE

Date: 04-03-2010

GUIDE’S CERTIFICATE2

C E R T I F I C A T E

This is to certify that the Project Report entitled

“LABOUR WELFARE SCHEMES & PRODUCTIVITY” which is being

Submitted herewith for the award of the degree of Master in personnel

Management of University of Pune, Pune is the result of the original

Research work completed by MISS SNEHA T. BANGRE under my

Supervision and guidance and to the best of my knowledge and belief the

Work embodied in this Project Report has not formed earlier the basis

For the award of any degree or similar title of this or any other University

or examining body.

Place: Pune Name of the Guide:

Date: 04-03-2010 MRS. RAMESHWARI KHARAT

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CONTENT PAGE

CONTENTS

Page No

Acknowledgement 5Introduction 6-14Purpose 14Objectives 15Research Hypothesis 15Profile of the organisation 15Research Methodology 16-17Data presentation, Analysis, Interpretation 18-34Observation 35Findings 35Suggestions 35Questionnaire 36-46Case- study 44-47Bibliography 48

ACKNOWLEDGEMENT

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I extent my sincere gratitude to Mrs. Madhuwanti Sathe Joint director of SBS, Eranandwane.

I very great fully wish to forward due respect and thanks to my internal faculty guide Mrs. Rameshwari kharat able guide for the project, for the continuous, creative, valuable and informative support extended to me, without which the project would not have been efficiently completed.

I render my whole hearted thanks to all the other respected faculties of the management.

I am extremely indebted to employees of idea cellular who gave me the privilege to carry out my project.

Once again I take this opportunity to convey my sincere thanks to each and every Person who helped me directly and indirectly in the successful completion of this project.

THANKING YOU.

LABOUR WELFARE SCHEMES &

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PRODUCTIVITY

INTRODUCTION:

Labour sector addresses multi-dimensional socio-economic aspects affecting labour welfare, productivity, living standards of labour force and social security. To raise living standards of the work force and achieve higher productivity, skill up gradation through suitable training is of utmost importance. Manpower development to provide adequate labour force of appropriate skills and quality to different sectors is essential for rapid socioeconomic development. Employment generation in all the productive sectors is one of the basic objectives. In this context, efforts are being made for providing the environment for self-employment both in urban and rural areas.

The productivity of labour is an essential condition for the prosperity of enterprises and the well being of the workers and their families. While the production facilities at workplace and the remuneration are important, attitudes towards work, and the value placed by the society on dignity of labour are equally important in influencing the Productivity of labour.

The term welfare suggests the state of well being and implies wholesomeness of the human being.

It is a desirable state of existence involving the mental, physical, moral and emotional factor of a person. Adequate levels of earnings, safe and humane conditions of work and access to some minimum social security benefits are the major qualitative dimensions of employment which enhance quality of life of workers and their productivity. Institutional mechanisms exist for ensuring these to workers in the organized sector of the economy. These are being strengthened or expanded to the extent possible. However, workers in the unorganized sector, who constitute 90 per cent of the total workforce, by and large, do not have access to such benefits. Steps need to be taken on a larger scale than before to improve the quality of working life of the unorganized workers, including women workers.

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Labour welfare is the key to smooth employer-employee relations. In order to increase labour welfare, Employers offer extra incentives in the form of labour welfare schemes, and to make it possible to pursued workers to accept mechanization.

Sometimes the employers to combat the influence of outside agencies on their employees use labour welfare as a tool to minimize the effect they may have on the labour. Labour welfare measures are also initiated with the view to avoiding payment of tax on surplus and to build up at the same time better relations with employees.

Labour Welfare Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. The welfare measures need not be in monetary terms only but in any kind/forms.

Employee welfare includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and their families. Labour welfare entails all those activities of employer, which are directed towards providing the employees with certain facilities and services in addition to wages or salaries.

Labour welfare has the following objectives:

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1. To provide healthy, hygienic & safe working conditions.2. To provide better life and health to the workers.3. To make the workers happy and satisfied.4. To keep the labours worry free.5. To keep the workers comfortable.6. To relieve workers from industrial fatigue and to improve intellectual,

cultural and material conditions of living of the workers.7. To induce labours to give higher Productivity.

The basic features of labour welfare measures are as follows:

1. Labour welfare includes various facilities, services and amenities provided to workers for improving their health, efficiency, economic betterment and social status.

2. Welfare measures are in addition to regular wages and other economic benefits available to workers due to legal provisions and collective bargaining

3. Labour welfare schemes are flexible and ever-changing. New welfare measures are added to the existing ones from time to time.

4. Welfare measures may be introduced by the employers, government, employees or by any social or charitable agency.

5. The purpose of labour welfare is to bring about the development of the whole personality of the workers to make a better workforce. The very logic behind providing welfare schemes is to create efficient, healthy, loyal and satisfied labour force for the organization. The purpose of providing such facilities is to make their work life better and also to raise their standard of living.

The important benefits of welfare measures can be summarized as follows:

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They provide better physical and mental health to workers and thus promote a healthy work environment· Facilities like housing schemes, medical benefits, and education and recreation facilities for workers’ families help in raising their standards of living. This makes workers to pay more attention towards work and thus increases their productivity.·

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

Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace The social evils prevalent among the labours such as substance abuse, etc are reduced to a greater extent by the welfare policies. Organizations provide welfare facilities to their employees to keep their motivation levels high. The employee welfare schemes can be classified into two categories viz. statutory and non-statutory welfare schemes. The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety.

These include provisions provided in industrial acts like Factories Act 1948, Dock Workers Act (safety, health and welfare) 1986, Mines Act 1962.

In real sense, welfare begins where legislation ends.

There are 2 types of labour welfare schemes- Statutory labour welfare schemes. Non statutory labour welfare schemes.

STATUTORY WELFARE SCHEMES

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Statutory labour comprising those provisions of welfare observance is binding on the employer under law.

The statutory welfare schemes include the following provisions:

1. Washing facilities: Adequate & suitable facility for washing shall be prevented & maintained in every factory for use of workers. Adequate washing places such as bathrooms, wash basins with tap and tap on the stand pipe are provided in the port area in the vicinity of the work places.

2. Facility for storing & drying clothing:State Government are empowered to make rules requiring provisions for suitable place for keeping clothing not worn during working hours & for drying of wet clothing’s. 3. Facilities for sitting: In every organization, especially factories, suitable seating arrangements are to be provided.

4. First aid appliances: At least one first aid box shall be maintained for every 150 workers. First aid appliances are to be provided and should be readily assessable so that in case of any minor accident initial medication can be provided to the needed employee.

5. Canteen facilities: Where 250 workers are employeed a canteen shall be maintained for the use of workers. Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees.

6. Shelters, Rest rooms & Lunchrooms:Where 150 workers are employeed Adequate numbers of restrooms, lunch rooms are provided to the workers with provisions of water supply, wash basins, toilets, bathrooms, etc.

7. Crèche:Where 30 or more female workers are employeed a crèche should be maintained for their children below 6 years of age.

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8. Appointment of Welfare Officer:Where 500 or more workers are employeed, prescribed number of welfare officer shall be employeed.

NON STATUTORY SCHEMES Non- Statutory labour comprising those provisions of welfare observance is not binding on the employer under law. The non statutory schemes differ from organization to organization and from industry to industry. Many non statutory welfare schemes may include the following schemes:

1. Housing facility:The biggest worry for any person is accommodation. The basic intention to provide housing facility is to keep the labours worry free. So that their efficiency will increase & ultimately it will result into higher productivity.

2. Transport facility: Transport facility is provided to keep the labour fatigue free.It will increase their efficiency & it will result into higher productivity. To relieve workers from industrial fatigue and to improve intellectual, cultural and material conditions of living of the workers.

3. Medical reimbursement: Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up

4. Personal accident insurance: This facility is provide to keep the labours worry free. So that their efficiency will increase & ultimately it will result into higher productivity.

5. Mediclaim policies for Hospitalization: This facility is also provided with the intension of keeping the labours worry free.

6. Periodical medical check-up: Periodical medical check up is necessary in order to keep the labour physically fit.

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7. Maternity & Adoption Leave: Employees can avail maternity or adoption leaves. Paternity leave policies have also been introduced by various companies.

8. Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy.

9. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization.

10. Holiday homes: A Holiday home is a facility for recreation of the employees.

11. Pension scheme:Pension scheme is necessary for employee to leave satisfactory life after retirement as well.

12. Performance Rewards:Performance rewards are necessary in order to motivate the employees.

13. Sports club: Sports club is necessary to relieve workers from industrial fatigue and to improve intellectual, cultural and material conditions of living of the workers.

14. Cultural and entertainment programmes: This facility is also to relieve workers from industrial fatigue and to improve intellectual, cultural and material conditions of living of the workers.

15. Educational scholarship to children of employees: Non- statutory labour welfare schemes for the education of both employee as well as his children.

16. Festival gifts:

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This facility is also necessary in order to motivate the employees & to make the workers happy and satisfied.

17. Family get together or picnic:This facility is also for recreation of the employees & To relieve workers from industrial fatigue and to improve intellectual, cultural and material conditions of living of the workers.

PRODUCTIVITY-

Some preliminary observations: The role of productivity in increasing national welfare is now universally recognized. In every country, developed or developing, with a market economy or a centrally planned economy, the main source of economic growth is an increase in productivity. Inversely, slackening of growth, stagnation and decline entail a slow-down in productivity improvement.

Both the developed and the developing countries have to deal with two questions simultaneously: to try to use both human and capital resources more effectively. The real problem, in every country, is to find the optimal balance between intensive and extensive methods of economic development. The development of modern equipment and the development of human resources must go hand in hand. Therefore, it is important to note that productivity improvement or the effective use of available resources is the best, indeed the only way, for future development in any kind of society.

Some may think that effective use of resources can mean simply the development of technology and organization, but it is often more important for total productivity improvement to contribute to human development in its broadest sense.

Productivity is the point where human skills and interests, technology, management, and the social and business environment all converge. Even highly efficient and committed managers and workers will not survive if the organization

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cannot adapt to its constantly changing environment. The understanding and management of change have a vital role to play in productivity improvement. The organization must learn how to adjust to change and how to learn during change.

What is productivity?

Productivity is defined as the relationship between the output generated by a production or service system and the input provided to create this output. Thus, productivity is defined as the efficient use of resources – labour, capital, land, materials, energy, information – in the production of various goods and services.

Purpose:

The purpose of this study was to study the impact of labour welfare schemes on productivity. Specifically, the study sought to describe the ranked importance of the following factors:

(a) Job security,(b) Sympathetic help with personal problems,(c) Personal loyalty to employees,(d) Interesting work, (e) Good working conditions,(f) Tactful discipline, (g) Good wages,(h) Promotions and growth in the organization, (i) Feeling of being in on things, and (j) Full appreciation of work done.

OBJECTIVES:1. To study various Labour Welfare Schemes.

2. To study effect of Labour Welfare Schemes on productivity.

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RESEARCH HYPOTHESES:1. According to the assumptions made the non-statutory labour welfare

schemes had greater impact on productivity.

2. To some extent statutory labour welfare schemes also affects productivity.

PROFILE OF THE ORGANISATION: Indian Hume Pipe Company Limited

The Company's principal activities are to manufacture laying and joining of pipelines of various pipe materials. It operates in two segments namely Construction Contracts and Other.

The Construction Contracts segment includes water supply schemes, pipes supply and laying projects. The Other segment includes railway sleepers, air rifles and technical knowhow. It also undertakes infrastructure development programmes on turnkey basis.

The products of the Company includes RCC pipes, steel pipes, prestressed concrete pipes, penstock pipes, bar wrapped steel cylinder pipes, prestressed concrete cylinder pipes and others. RESEARCH DESIGN & METHODOLOGY:A good research design ensures against wasteful expenditure of time, money and energy.

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1. SAMPLING DESIGN:

“CONVENIENT SAMPLING”

If the total area of interest happens to be big one, a convenient way in which a sample can be taken as to divide the area as per our convenience.

2. SOURCES & METHODS OF DATA COLLECTION:

“QUESTIONNAIRE METHOD”

ADVANTAGES:a) Convenientb) Low costc) More reliabled) Free from bias

DISADVANTAGES:

a) It can be used only when respondents are educated & cooperating.b) It is difficult to know whether willing respondents are truly

representative.

3. METHODS OF DATA ANALYSIS

“TABULATION”-

When a mass of data has been assembled, it becomes necessary for the researcher to arrange the same kind of concise and logical order. This procedure is

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referred to as tabulation. Thus, tabulation is the process of summarizing raw data and displaying the same in compact form for further analysis.In broader sense, tabulation is an orderly arrangement of data in columns & rows.

Tabulation is essential because of following reasons:-

It conserves space and reduces explanatory and descriptive statement to a minimum.

It facilitates the process of comparison It facilitates the summarization of items and detection of errors and

omissions. It provides a basis for various statistical computations.

DATA PRESENTATION, ANALYSIS & INTERPRETATION For employer

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1. Do you provide all the labour welfare schemes?

YES 100%

NO 0%

Labour welfare schemes are

provided100%

LABOUR WELFARE SCHEMES

2. Do you provide both statutory & non- statutory labour welfare schemes?

YES 100%

18

NO 0%

Statutory & non-statutory100%

LABOUR WELFARE SCHEMES

3. Statutory labour welfare schemes:

19

Health Safety Both None of these0

10

20

30

40

50

60

70

80

90

100

4. Non- Statutory labour welfare schemes:

S. NO.

SCHEMES RATE

1. Medical Facility 5

2. Education Facility 4

3. Transport Facility 2

4. Housing Facility 3

5. Incentives 1

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5. Are labours satisfied with Labour welfare schemes?

Highly S

atisfied

Satisfied

Neutra

l

Dissati

sfied

Highly D

issati

sfied

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

SATISFACTION LEVELSeries 2Column1

6. Which type of schemes motivates them more?

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statutory Non-statutory Both Neutral0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Column1Series 2TYPES OF SCHEMES

22

7. Do you think as labour welfare schemes increases, Productivity also increases?

Strongly agree

Agree Disagree No opinion0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

RELATIONSHIP WITH PRO-DUCTIVITColumn1Series 3

23

8. Do you think labour welfare schemes are given adequate importance in your company?

strongly agree agree Disagree No opinion0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

FOR EMPLOYEE24

1. Satisfaction level of labours with labour welfare schemes:

Highly satisfies50%

Satisfied50%

SATISFACTION LEVEL

50% employees are satisfied with labour welfare schemes.

50% employees are not satisfied with labour welfare schemes.

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2. % of satisfaction level if employees:

40-60%40%

60-80%50%

80-100%10%

% OF SATISFACTION

50% employees are satisfied upto 60-80%.

40% employees are satisfied upto 40-60%.

10% employees are satisfied upto80-100%.

3. Satisfacton level:

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SALARY

High50%

Moderate50%

SALARY

50% employees are highly satisfied with their salary.

50% employees are moderately satisfied with their salary.

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INCENTIVES

High50%

Moderate50%

INCENTIVES

50% employees are highly satisfied with the incentives provided by the organization.

50% employees are moderately satisfied with the incentives provided by the organization.

ALLOWANCES

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High50%

Moderate40%

Low10%

ALLOWANCES

50% employees are highly satisfied with the allowances given by the organization.

40% employees are moderately satisfied with the allowances given by the organization.

10% employees are dissatisfied with the allowances given by the organization.

HOUSING FACILITY

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Extreme20%

High80%

HOUSING FACILITY

80% employees are highly satisfied with the housing facility given by the organization.

20% employees are highly satisfied with the housing facility given by the organization.

TRANSPORT FACILITY

30

Extreme High Moderate Low Poor0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.5

TRANSPORT FACILITYColumn1Column2

50% employees are highly satisfied with the transport facility given by the organization.

50% employees are moderately satisfied with the transport facility given by the organization.

MEDICAL FACILITY

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Extreme10%

High50%

Moderate40%

MEDICAL FACILITY

50% employees are highly satisfied with the medical facility given by the organization.

40% employees are moderately satisfied with the medical facility given by the organization.

10% employees are extremely satisfied with the medical facility given by the organization.

EDUCATION FACILITY

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High20%

Moderate80%

EDUCATION FACILITY

80% employees are moderately satisfied with the educational facility given by the organization.

20% employees are highly satisfied with the educational facility given by the organization.

HOLIDAY HOMES

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High30%

Moderate60%

Low10%

HOLIDAY HOMES

60% employees are moderately satisfied with the holiday-home facility given by the organization.

30% employees are highlyly satisfied with the holiday-home facility given by the organization.

10% employees are dissatisfied with the holiday-home facility given by the organization.

OBSERVATIONS:

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DURING THE CONVERSATION IT WAS OBSERVED THAT:

Earlier Statutory Welfare Facilities were not provided; at that time productivity was not good.

Later on, when non-statutory welfare facilities like Housing facility, Medical facility, transportation facility started; productivity increases.

FINDINGS:

All Statutory Labour Welfare Schemes are provided & some non- Statutory Labour Welfare Schemes are provided.

More focus is given to non- Statutory Labour Welfare Schemes.

Employees are moderately satisfied with some non- Statutory Labour Welfare Schemes.

SUGGESTIONS:

Irrespective of several attempts made by the employer in the field of introducing non- statutory schemes, the labourers are moderately satisfied. Steps should be taken to ensure one on one is conducted with the labourers to know the area of dissatisfaction.

Non statutory schemes should be increased.

Questionnaire

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Name of the Organization

Respondent Name –

Gender-

Address-

Ph-

Respondent Designation

Date

FOR EMPLOYER

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1. Do you provide all the Labour Welfare Facilities?

Yes No

2. Do you provide both the Statutory & Non-Statutory Labour Welfare schemes?Yes No

3. Statutory Labour Welfare Schemes:

Health Both Safety None of these

4. Non- Statutory Labour Welfare Schemes: Give rating 1 to 5

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S.No Schemes Rate 1. 2. 3.

4.

5.

Medical Facility

Education Facility

Transport Facility

Housing Facility

Incentives

5. Are Labours satisfied with Labour Welfare Schemes? Highly satisfied Satisfied Neutral

Dissatisfied Highly Dissatisfied

6. Which type of schemes motivates them more?

Statutory Non-Statutory Both None

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7. Do you think as Labour Welfare Schemes increases, productivity also increases?

Strongly agree Agree

Disagree No opinion

`

8. Do you think Labour Welfare Schemes are given adequate importance in your company?

Strongly agree Agree

Disagree No opinion

Signature- ___________________

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FOR EMPLOYEES

Name of the Organization

Respondent Name –

Gender-

Address-

Respondent Designation

Date

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1. How far you are satisfied with the Labour Welfare schemes provided by the organization?

Highly satisfied Satisfied Neutral

Dissatisfied Highly Dissatisfied

2. If satisfied, tick the appropriate. 0-20% 20-40% 40-60% 60-80% 80-100%

3. If Not satisfied, Give suggestions?________________________________________________________________________________________________________________________________________________________________________________________________

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Please tick your level of satisfaction for each:Salary Extreme High Moderate Low Poor

Incentives provided by the company Extreme High Moderate Low Poor

Allowances given by the organization Extreme High Moderate Low Poor

The housing facility Extreme High Moderate Low Poor

The transport facility Extreme High Moderate Low Poor

The medical facility Extreme High Moderate Low Poor

Scholarship scheme Extreme High Moderate Low Poor

Housing Loan facility Extreme High Moderate Low Poor

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The educational facility Extreme High Moderate Low Poor

Pension scheme Extreme High Moderate Low Poor

Holiday homes Extreme High Moderate Low Poor

Signature - ________________________

Case-study

Productivity incentive scheme for tea pluckers

Until the 1980s, tea pluckers were paid a fixed daily wage plus a cost-of-living allowance (revised every quarter, based on published index numbers). In return, they had to harvest a minimum quantity of green leaf per day. For any excess

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quantity harvested above the norm, they were paid a plucking incentive. This was a constant amount per kilogram of leaf but, in due course, the system was refined by having two incentive slabs (categories). The general feeling among management was that the incentive scheme was defective in that the minimum quantity was the same in both the high and lean cropping months, and that the rate of incentive was not attractive to the worker.

Accordingly, after collecting monthly data, going back ten years, from over 100 estates, in regard to yields and plucking averages, a scheme was formulated in 1985 by the association of planters and taken up for internal consideration among its members. The initial response from the practising planters was that they were not ready for such a scheme and that it was premature to place it before the trade unions as part of the negotiating package. Over the next three years, the scheme was discussed by management with a view to reaching agreement. Several of them had reservations on the grounds that management who adopted long plucking intervals and were thus able to achieve higher plucking averages, would stand to lose by the scheme. In the light of comments and suggestions, the minimum quantity of leaf to be plucked as well as the incentive slabs and rates were modified, and a compromise was reached within the management camp, it being evident from the calculations that all managements would stand to gain from the proposed incentive system.

The essence of the scheme is that tea estates are classified into four categories depending on the green leaf yield for the month. The base output to be plucked per day and the incentive slabs and rates are different for the four classes. The same scheme is applicable both to hand plucking and to plucking with shears, thereby securing acceptance of the use of tools without payment of a differential wage. The arrangement which took effect from 1 January 1990 had the incentive structure shown in table.

Productivity incentive scheme for tea pluckers, Tamil Nadu, India

Yield of green leaf per hectare per month (kg)

Base output

per day (kg)

Slab (kg) Incentive rate (Indian rupees per kg)

1st 2nd 1st slab 2nd slab

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1-40 12 13-15

16+ 0.26 0.31

401-800 14 15-20

21+ 0.26 0.31

01-1 600 15 16-30

31+ 0.26 0.31

1 600+ 16 17-35

36+ 0.26 0.31

The scheme comprised the following aspects:

(1) The green leaf yield was to be worked out by dividing the field weight of green leaf plucked for the month for the estate by the total area of mature tea; the area would include the pruned/skiffed area as well as the area under "tipping".

(2) Green leaf yield per hectare was to be rounded off to the nearest kilogram.

(3) The base output was not the task as such but only the indicator above which the incentive wage was to be calculated; all pluckers were expected to work normally and diligently for a full day and harvest the maximum output.

(4) On the first working day of each month, the management was to display on the muster notice boards an indication of the probable Base Output applicable for the month, having regard to the yield of the same month in the previous year and the weather conditions, favourable or otherwise. The management could alter the indicated base output at any time during the course of the month or at the close of the month, to take account of changes in the cropping pattern.

(5) For calculating the month's yield, any crop plucked on holidays was to be excluded.

(6) The operation of the scheme was to be reviewed after 12 months for any anomalies in its implementation and working, so that any necessary correction could be made.

(7) A joint implementation committee comprising three representatives each of the employers and workers was to be appointed in all districts to oversee the

45

implementation of the scheme and to examine workers' grievances concerning the correctness of the yield or other parameters.

On renegotiating the scheme three years later, a third incentive slab was incorporated apart and there was an across-the-board improvement in the incentive rates. The revised structure, which took effect from 1 January 1993, is shown in table.

Revised productivity incentive scheme for tea pluckers, Tamil Nadu, India

Yield of green leaf per hectare per

month (kg)

Base output

per day (kg)

Slab (kg) Incentive rate (Indian rupees

per kg)

1st 2nd 3rd 1st slab

2nd slab

3rd slab

1-400 12 13-15

16-30

31+ 0.27 0.35 0.40

401-800 14 15-20

21-40

41+ 0.27 0.35 0.40

801-1 600 15 16-30

31-50

51+ 0.27 0.35 0.40

1 600+ 16 17-35

36-60

61+ 0.27 0.35 0.40

An evaluation of the scheme indicates that it has been implemented with fairness and transparency and, in the process, has gained credibility in the eyes of the trade unions. Both management and workers have gained advantages to a different extent.

It was observed that the adoption of the new incentive system has led to a 36 per cent improvement in the plucking average over the past five years, since the scheme has been in operation.

It is also reported by the same group that, as a consequence, 10 per cent of the total leaf harvested during 1994 came from pluckers in the 50 kg plus slab.

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In terms of incentive earnings, the benefit to pluckers during the five-year period had gone up by 25 per cent.

BIBLIOGRAPHY

BOOKS:

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1. Labour Welfare & Industrial Hygine - 2nd revised edition, Bhooshan B. Agalgatti.

2. Prasad L.M, “Human Resource Management,” second edition (2005), SultanChand & Sons- New Delhi.

3. Kothari C.R “Research Methodology- Methods and Techniques” 2nd revised edition (2007) New Age International Publishers- New Delhi.

WEBSITE:

http://www.allbusiness.com/human-resources/employee-development-employeeproductivity/601547-1.html

www.google.com

http://en.wikipedia.org/wiki/Asbestos.

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