A STUDY ON EMPLOYEE WELFARE MEASURES INDUSTRY PROFILE ABOUT THE INDUSTRY India in 1994 has become the 4th largest producer of cement in the world .This impressive record owes its origin to the progressive policies of the government since late 70’s and enabled on assured 12% post tax return on Net worth (77).The economic reforms of July ’91 gave a further fillip by abolishing the licensing system for setting up cement plants. Since then innumerable technological development took place in cement production enabling cost reduction and mass production. The wet kilns of the late 70’s were replaced by dry kilns which reduced the fuel cost by 30% thermal efficiency was improved by installing pre-heaters, followed by the addition of pre-ealcinators. Optimal usage of fuel and power we achieved through computerization and quality control of raw materials. In a developing country like India the requirement of housing and so the demand elasticity of cement with respect to G.D.P. of 1.6% is also high. By comparing the per capita consumption consumption and consumption density (D) of India with rest of the world, the latent demand for cement can be estimated at 77Kg for India and 240Kg for the rest of the world. The cement sector has recorded an impressive increase in production capacities. The production has grown up by 9.5% over the previous years to 76.22 million tones. The consumption, on The other hand, has logged behind having grown by 7.9% over the previous year to 67.93 million tones. Capacity utilization has been 81% for the large plants. Thus, even at the end 98-99 there was an excess capacity by about 27 million tones. (Comparing total capacity and demand). SREE VIDYANIKETHAN INSTITUTE OF MANAGEMENT 1
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A STUDY ON EMPLOYEE WELFARE MEASURES
INDUSTRY PROFILE
ABOUT THE INDUSTRY
India in 1994 has become the 4th largest producer of cement in the world .This
impressive record owes its origin to the progressive policies of the government since late
70’s and enabled on assured 12% post tax return on Net worth (77).The economic
reforms of July ’91 gave a further fillip by abolishing the licensing system for setting up
cement plants. Since then innumerable technological development took place in cement
production enabling cost reduction and mass production. The wet kilns of the late 70’s
were replaced by dry kilns which reduced the fuel cost by 30% thermal efficiency was
improved by installing pre-heaters, followed by the addition of pre-ealcinators. Optimal
usage of fuel and power we achieved through computerization and quality control of raw
materials.
In a developing country like India the requirement of housing and so the demand
elasticity of cement with respect to G.D.P. of 1.6% is also high.
By comparing the per capita consumption consumption and consumption density
(D) of India with rest of the world, the latent demand for cement can be estimated at
77Kg for India and 240Kg for the rest of the world.
The cement sector has recorded an impressive increase in production capacities.
The production has grown up by 9.5% over the previous years to 76.22 million tones. The
consumption, on The other hand, has logged behind having grown by 7.9% over the
previous year to 67.93 million tones. Capacity utilization has been 81% for the large
plants. Thus, even at the end 98-99 there was an excess capacity by about 27 million
tones. (Comparing total capacity and demand).
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A STUDY ON EMPLOYEE WELFARE MEASURES
The current financial year is expected to add 10 million tones further. Production
for the full year to be expected to be raised by 10-12%. Of this, south is to be the
maximum gainer with around 10% growth.
The cement industry witnessed a contraction. In operating profit margins
nationally. In the year ended March’97 due to a slowdown in demand growth rate, higher
supplies for new commission capacitates and cost increases. Housing sector is yielding a
minimum cement demand growth rate, of 6%.
The Rakesh Mohan committee has forecast the investment outlays on
infrastructure to rise to 4000-4500billion rupees over the next 5 years. Beyond 2003-
2004, these requirements would be in the range of 7500 billion rupees. The industrial
growth rate too is expected to rise from 8 to 8.5% in the past 10-12%.
The per capital consumption is expected to touch 85Kg by 2004 by possibly 13Kg
in 2012. If the present growth trend continues. To achieve even 75% of world average on
investment of 40,000 Crores rupees on plants besides additional investment of same order
on adequate infrastructure will be required over 10-15years. The demand by 2012 is
placed at 140 million -150 million tons in the wake of the industrial and economic growth
unleashed by the liberalization process. The growth prospects of the industry are thus
assured.
India’s Stand in the world
India is the 4th largest cement producer worldwide, following china, Japan and
U.S.A. India’s percaptia consumption is only 78Kg as compared to the world average of
251 Kg by the turn of the century. India’s capacity is expected to crores 100 million
tones. The Industry has 59 companies owning 115 plants. In the matter of exports, the
Government considers cement as an extreme focus area.
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However, Industry experts comment that exports are mainly for keeping a check
on the domestic prices, which get adversely affected due to exam production. In the
global market. India cement is not very competitive due to high power and fuel costs. In
order to improve its position in the International market, technological up gradation is
essential in terms of process, product diversification, cost reduction quality control and
energy savings.
CEMENT INDUSTRY HIGHLIGHTS
The Indian cement industry has high Return on Investment. There exists a large
markers which are not yet been completely tapped. With the existing levels of supply and
growing demand the prices tend to rise. But the industry being a fast growing one, many
players are attracted. Every year new capacities are added raising the supply, price
stability is thus maintained and the high profits are observed by new entrants.
The per capital consumption of manufacture commodities like steel, power and
cement ate indicators of the economic state of a country. Of the total output nearly 95% is
accounted for only 90%, while the Government sector accounts for 10%. The housing
activity accounts for 55% of total consumption. Nearly 47% of the total costs, most of
which are administrated prices are beyond the control of cement units. The cost elements
include limestone, coal, transport freight, power consumption and excise duty.
Production and Consumption Pattern of Cement
In the case of cement production regional imbalances continue. Cement plants are
generally put up where limestone id available. This because, to produce 1 tons of cement
1 ½ tones of limestone is required. Also it is easier to transport cement than limestone.
Cement is mainly produced in the Western and Southern regions. Hence, only half
of the cement produced is consumed within the region. Cement is usually transported
from south to west is the most surplus region. Although, west is a surplus regions, cement
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is transported from southern regions which are close to the consumption and excise duty.
The destination of cement transport is mainly dependent on mode of transport available
and the transportation cost incurred.
CEMENT MANUFACTURING PROCESS
In wet process, limestone is crushed and grounded and mixed with water to form
slurry which is fed in to the kiln. The slurry has a water content of 30-40%. Before the
mineralogical process commence, the water content in the slurry has to be evaporated.
This process consumes high energy and power.
On the other hand, the dry process is more energy efficient. The raw materials are
dried in a combined drying and grinding plant to reduce the moisture content to less than
1%.
Due to regular shifts from wet and semi-dry process nearly 89% of the total
industries kiln capacity is at dry process. Of the remaining, 9% is wet process and 2% is
semi-dry process. The main advantage of shifting to any process is the 50% saving of
coal consumption. The energy costs reduce by 30-40% and the kiln output also increases
for a given size kiln, the output for dry process is 250-300/- as compared to 130-150/- for
semi-dry and 100% for wet process. The capacity utilization is also higher for dry process
plants.
CEMENT BRANDING
Cement has emerged as a commodity product. Brands play important role
especially in metros like Delhi, Mumbai, Calcutta, etc, where the established brands
suppress the success of smaller brands. Companies have tie-ups with real estate agents
and construction companies. Some manufacturers also organize work ships, training and
seminars to educate the consumers on the maximum use of a bag full of cement.
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COMPANY PROFILE
Lanco industries limited (LIL) was promoted by Lanco Group in 1992 in Chittoor
District. A.P LIL setup as a Mini Blast Furnace (MBF) in 1994 with a capacity of 90000
TPA to manufacture and sell Pig Iron to the customers and foundry units across India. In
1998. LIL entered into an agreement to supply Molten Iron and pig Iron to Lanco, Sri
Kalahasthi Castings Limited (LKCL) a company within the same campus engaged in the
business of Iron castings & forging. LKCL later on added high technology Ductile Iron
Pipes (DIP) manufacturing facilities to its portfolio. In March 2002 India’s leading DI
Pipes manufacturer, Electro steel Castings Limited (ECL) entered into a strategic alliance
with LIL and LKCL by acquiring 46.43 and 48.89 percent stake in the companies
respectively. In addition to technological support, ECL also infused fresh fund into LIL
by way of equity participation and re-modeled the financial structure, thus reducing
interest costs.
In 2003 the capacity of MBF was increased from 90,000 TAP to 1, 50,000 TAP
and the capacity of DI Pipes was increased from 60,000 TAP to 90,000 TAP at capital
outlay of approx. Rs. 35 corers. In 2003 LKCL got merged with LIL ( with effect from
1st April 2003) to take advantage of the close synergy in the business model of the two
companies, since a large part of Pig Iron in liquid form is consumed by LKCL for
manufacture of Pipes. In 2004, 1, 50, 000 TAP Coke Oven Plant was setup at capital
outlay of Rs. 45 corers.
QUALITY POLICY
Lanco Industries Limited aims at maximizing the customer satisfaction by
supplying products of consistent quality with collective participation of Management and
Employees.
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TO ACHIEVE THE ABOVE, WE WILL
Manufacture and supply products as per specifications and standards agreed to
with the customers.
Continuously strive to improve the quality of the products and process
Maintain interaction with customers
Train and motivate employees to achieve the company’s goal.
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CHAPTER - 2
INTRODUCTION:
1.1 INTRODUCTION TO THE STUDY
Safety and welfare measures are inevitable to any organization where workers
are involved. An organization‘s responsibility to its employees extends beyond the
payment of wages for their services. The employee’s safety and welfare on and off the
job within the organization is a vital concern of the employer. Providing a safe and
healthy environment is a pre-requisite for any productive effort. This research deals with
the study on the welfare measures provided to the employees at LANCO INDUSTRIES
PVT LTD.
1.1.1 Problem Idenfication
Unlike other industries, the employees of the Lanco are often exposed to
different and new which they may not have been familiar with earlier. The employees
have to deal huge machinery. The unfamiliarity in the nature of materials they handle and
the danger involved I handling them make the employees prone to higher degree of risk.
Satisfying or fulfilling the safety and security needs of the workers,
would give them a better motivation and more time to concentrate on job performance. A
voluntary approach on the part of the management to offer welfare programmes which
are over and above what is laid down by the law would boost the morale of the
employees and motivate them to perform better. A preliminary study conducted by the
researcher with respect to welfare showed that there was scope for improvement in
certain areas. This formed the basis of the research problem.
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1.1.2 Objectives of the study
Primary Objective: To study the level of satisfaction of employees regarding welfare
measures at Lanco Industries pvt ltd.
Secondary Objective: To study the perception of the employees regarding the welfare
measures provided to them.
• To analyze if the level of satisfaction is different among the various
categories of employees and departments.
• To suggest provision of more welfare measures to improve the
performance of the employees.
1.1.3 Scope of the study
This study would give an overview of the welfare measures existing at
Lanco industries. Since safety and welfare are two important elements essential for
improving the productivity of an organization, a study on the existing welfare measures
would help the organization perform better. This study would throw light on the
perception of the employees regarding safety and welfare. Lanco industries can identify
the areas where it can improve so as to improve the performance of the employees. This
study would also help to analyze if there is dependence between
1.1.4 Limitations of the study
• The study was restricted to the class III and class IV non ministerial staff
of Lanco industries.
• Due to time constraints the sample size had to be confirmed to 100.
• The respondents have replied to the queries recalling from their memory.
Therefore recall bias and personal bias are possible.
• Since the data was collected using a schedule, the interviewer’s inability to
understand and record the responses correctly is possible.
• The respondents were unable or unwilling to give a complete and accurate
response to certain questions.
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1.2 REVIEW OF LITERATURE
In 1998 a study was conducted on the welfare measures provided to the
employees of Copt by Ms. N. Sangeetha of Bharathiyar University. This study was
based on the Class I and Class II employees contrary to my project work which focuses
only on the Class III, Class IV non-ministerial staff. This was helpful to me with regard
to the selection of samples and using statistical tools. I have done my research work
independently and both the studies are independent.
Definitions of safety
• The condition of being safe; freedom from danger, risk, or injury.
• The state of being certain that adverse effects will not be caused by some agent
under defined conditions.
• Occupational safety is concerned with risks in areas where people work; offices,
manufacturing plants, farms, construction sites, and commercial and retail
facilities. Public safety is concerned with hazards in the home, in travel and
recreation, and in other situations that do not fall within the scope of occupational
safety.
Definitions of welfare
• Anything done for the intellectual, physical, moral and economic betterment of
the workers, whether by employers, by government or by other agencies, over and
above what is laid down by law or what is normally expected of the contractual
benefits for which workers may have bargained.
• Well-doing or well-being in any respect, the enjoyment of health and the common
blessings of life; exemption from any evil or calamity; prosperity; happiness.
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1.2.1 METHODOLY AND ANALYSIS OF DATA
RESEARCH METHODOLY
Research methodology is a way of systematically solving the research
problem. Research methodology deals with the research design used and methods used to
present the study.
1.2.2 Research Design
A research design is a detailed blue print used to guide a research study toward its
objective. The process of designing a research study involves many interrelated
decisions. The most significant decision is the choice of research approach, because it
determines how the information will be obtained. The choice of the research approach
depends on the nature of the research that one wants to do.
The research design adopted for this study is Descriptive Research. Descriptive
method was adopted because it deals with description of the state of affairs as it exists at
present.
Sampling Techniques
The next step in research study after collecting data is the sampling process. When a
decision is made to use the sample, a number of factors must be taken into consideration.
The various steps involved in the sampling process are:
Identifying target population.
Determining sample frame.
Selecting sampling procedure.
Determine sample size.
Execute sampling.
Obtaining information from respondents.
Generating information for decision making.
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The target population in this study was the Class III and Class IV non-
ministerial staff of Lanco.
The sampling technique had to be selected. There are two types of sampling
techniques:
Probability sampling
Non-probability sampling
Among the probability sampling, the sampling used in this study was Stratified
sampling.
1.2.3 Stratified Sampling
If the population from which a sample is to be drawn does not constitute a
homogeneous group, then stratified technique is applied so as to obtain a representive
sample. In this technique, the population is stratified into number of non-overlapping sub
populations or strata and sample items are selected from each stratum. If the items
selected from each stratum is based on simple random sampling, the entire procedure,
first stratification and then simple random sampling is known as stratified sampling. The
stratified sampling results in a more reliable and detailed information. The researcher
uses simple random sampling for selection of items from each stratum.
Sample size
Among the 4000 staff in the organization a sample of 100 employees was taken
for the study.
Using the method of proportional allocation, the numbers of samples are
selected from each stratum.
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Tools for data collection
There are several ways of colleting the appropriate data. While deciding about
the method of data collection to be used for the study, the researcher should keep in mind,
that there are 2 types of data.
1. Primary data
2. Secondary data
Primary data are those which are collected a fresh and for the first time and thus
happen to be original in character. Primary data can be collected either through
experiment or through survey.
The secondary data on the other hand are those which have already been
collected by someone else and which have already been passed through the statistical
process. In this study, the data was collected from the primary source through interview
schedule.
1.2.4 Statistical Techniques
This phase consists of the data analysis of the data collected based on the
stratified simple random probabilistic sampling technique. The data collected were
analyzed using the following methods.
Percentage analysis
The number of responses of each category is summarized to percentage format
for the convenience to use other statistical tools namely pie chart and bar diagrams.
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Statistical tools
Chi-square test
This test allows us to determine whether two attributes are independent of each
other. In this study chi-square has been used to test if there is an association between
various variables and the overall level of satisfaction of safety and welfare measures.
X2 = Σ {(Oi – Ei) 2 / Ei }
Applying Yates’s correction:
X2 = Σ {(|Oi – Ei |- 0.5) 2 / Ei }
Phi Coefficient
Chi-square test tells us about the significance of relation between variables; it
provides no answer regarding the magnitude of the relation between the two variables.
This can be achieved by computing the Phi coefficient which is a non-parametric
measure of coefficient of correlation. It gives the magnitude of the relation or the degree
of association between the two variables.
= ϕ [ X2 / n ]
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CHAPTER-3
DATA ANALYSIS AND INTERPRETATION
TABLE-1
TABLE SHOWING THE OPINION ABOUT WORK ENVIRONMENT
Grade No. of Respondents Percentage
Satisfied 8 8
Highly Satisfied 28 28
Average 64 64
Dissatisfied 0 0
Highly dissatisfied 0 0
OPINION ABOUT WORK ENVIRONMMENT
828
64
0 00
10
20
30
40
50
60
70
Satisfied HighlySatisfied
Average Dissatisfied HighlyDissatisfied
PARICULARS
INFERENCE:
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A STUDY ON EMPLOYEE WELFARE MEASURES
From the above table it is inferred that 8% of people responded to satisfied,
28% of people responded to highly satisfied, 64% people to average, and 0% of people
responded to dissatisfied and highly dissatisfied.
TABLE-2
TABLE SHOWING THE OPINIONABOUT VENTILATION & LIGHTING AT WORK PLACE
Grade No. of Respondents Percentage
Excellent 12 12
Good 52 52
Average 36 36
Bad 0 0
Very Bad 0 0
OPINION ABOUT VENTILATION&
LIGHTING AT WORK PLACE
12
52
36
0 00
10
20
30
40
50
60
Excellent Good Avearge Bad Very Bad
Axis Title
INFERENCE:
SREE VIDYANIKETHAN INSTITUTE OF MANAGEMENT 15
A STUDY ON EMPLOYEE WELFARE MEASURES
From the above table it is inferred that 12% of people responded to excellent,
52% of people responded to good, 36% people to average, and 0% of people responded
to bad and very bad.
TABLE-3
TABLE SHOWING THE OPINION ABOUT SALARIES/BENEFITS
Grade No. of Respondents Percentage
Satisfied 20 20
Highly Satisfied 62 62
Average 18 18
Dissatisfied 0 0
Highly dissatisfied 0 0
OPINION ABOUT SALARIES/BENEFITS
20
62
18 0 00
10
20
30
40
50
60
70
Satisfed HighlySatisfied
Avearge Dissatisfied HighlyDissatisfied
PARTICULARS
INFERENCE:
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From the above table it is inferred that 20% of people responded to
satisfied, 62% of people responded to highly satisfied, 18% people to average, and 0% of
people responded to dissatisfied and highly dissatisfied.
Table- 4
TABLE SHOWING THE OPINION ABOUT TIMINGS/SCHEDULES
Grade No. of Respondents Percentage
Satisfied 20 20
Highly Satisfied 72 72
Average 8 8
Dissatisfied 0 0
Highly dissatisfied 0 0
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OPINION ABOUT TIMINGS/SCHEDULE
20
72
8 0 00
10
20
30
40
50
60
70
80
Satisfed HighlySatisfied
Avearge Dissatisfied HighlyDissatisfied
PARTICULARS
A STUDY ON EMPLOYEE WELFARE MEASURES
INFERENCE:
From the above table it is inferred that 20% of people responded to satisfied,
72% of people responded to highly satisfied, 8% people to average, and 0% of people
responded to dissatisfied and highly dissatisfied.