Industrial Relations
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Chapter-II
Theoretical Frame Work on
Employee Welfare Programmes
Industrial Relations
Employee Welfare Programmes
Introduction
Concepts
Objectives
Benefits
Need for extending welfare programmes
International and Indian perspectives
Types of social security and welfare schemes
Non monetary rewards
Stock option scheme
Industrial relations
Introduction
Concepts
Scope
Industrial Relations Policy
Trade Unionism in India
Causes of Industrial Disputes
Importance
Causes of poor industrial relations
Effects of poor industrial relations
Code of industrial relations
Dunlops contribution
Perspectives of industrial relations
Measures to improve industrial relations
Factories Act & Industrial Relations
Employee Welfare Programmes
Introduction
The wages provided to the employees, particularly of the lower level may not be sufficient to meet their needs like medical, children education, maternity needs of women employees and employees wives etc. Therefore, governments of various countries insist the employers to provide security and welfare measures to their employees against the social evils. In addition, governments also provide social security measures to the people. The labor welfare and social security measures are also known as hidden pay roll, employee service programmes or fringe benefits.
After basic pay and incentives the third major component of organizational reward systems is welfare and security benefits some of which are mandated by law and some are voluntary.
Concepts
Definition and meaning:
According to lord beveridge, social security, “is an attack on five giants, viz., want, disease, ignorance, squalor and idleness.” This concept is equal to social justice and equality.
ILO defines social security as, “the security that society furnishes, through appropriate organization against certain risks to which its members are exposedsocial security is designed to prevent and cure disease, to support when people are unable to earn and restore gainful employment.”
The oxford dictionary defines labor welfare programmes as “efforts to make life worth living for workmen.”
Evolution: There are two main aspects in labor welfare, viz., social assistance and social insurance. ILO defines social assistance as, “a service or scheme which provides benefits to persons of small means as of right in amount sufficient to meet minimum standards of need and financed from taxation.” Thus social assistance is the obligation of the community or the government.
Beveridge defines social insurance as, “the giving in return for the contribution, benefits up to subsistence level, as of right and without mean tests, so that an individual may build freely upon it. Thus, social insurance implies that it is compulsory.”
Objectives of Social security and Welfare programmes
The important benefits of fringe benefits are:
To create and improve sound industrial relations
To boost up employee morale
To motivate the employees by identifying and satisfying their unsatisfied needs
To provide qualitative work environment and work life
To provide security to the employees against social risks like old age benefits and maternity benefits
To protect the health of the employees and to provide safety to the employees against accidents
To promote employees welfare by providing welfare measures like recreation facilities
To create a sense of belongingness among employees and to retain them. Hence, fringe benefits are called golden hand -cuffs
To meet requirements of various legislations relating to fringe benefits
Benefits
The employee welfare programmes benefit the employer in several ways ,many of which are not subject to the qualification .
Among these benefits some of them are:
More effective recruitment (because these benefits add to job appeal)
Improved morale and loyalty
Lower employee turnover and absenteeism
Good industrial relations
Reduced influence of trade unions
Reduced threat of further govt intervention
Enhanced public image and goodwill
Need for extending welfare programmes
Most of the organizations have been extending the fringe benefits to their employees, year after year, for the following reasons:
Employee demands
Trade union demands
Employers preference
As a social security
To improve human relations
International