A STUDY OF EMPLOYEE WELFARE PRACTICES IN

INDIAN RARE EARTHS LIMITED, CHAVARA

Submitted in partial fulfillment for the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

M G UNIVERSITY
KOTTAYAM

Submitted by

AMPADY.S
Reg No:10111

Under the guidance of

MRS: SUJITHA ANNIE KURIAN

(Assistant Professor)
Department of Management Studies

Caarmel Engineering
College
Perunad, Pathanamthitta
May 2011
 Caarmel
Engineering
College
Koonamkara P.O, Perunad, Pathanamthitta District, Kerala State Pin 689711

CERTIFICATE

This is to certify that the study report entitled A Study of

Employee Welfare practices in IREL Chavara is a bonafide record of the
work done by Ampady.S under my guidance in partial fulfillment of the
requirement for the award of Masters Degree in Business Administration by
Mahatma University and this work has not been submitted by him for the award
of any other degree, diploma, or title of recognition earlier.

Dr. SELVADAS M.J Mrs. SUJITHA ANNIE KURIAN

Director, Asst. Professor,
Department of Management studies, Department of Management studies,
Caarmel Engineering College, Caarmel Engineering College,
Pathanamthitta Pathanamthitta

VIVA VOCE HELD ON:

 EXTERNAL EXAMINER

LETTER FROM THE ORGANISATION

 ACKNOWLEDGEMENT

First of all I wish to express my deep gratitude and thanks to God who
helped us in completing the organisation study successfully.

I shall remain grateful to Mrs.: Sujitha Annie

Kurian, Faculty, MBA Department, Caarmel Engineering College for his
amble guidance and encouragement for completing the organisation study. I am
also extremely grateful to faculty member for their valuable suggestions and
advice regarding this work.

I also express my profound gratitude to project guide

Mr: A.Jayapalan, Sr. Manager, HRM for his valuable guidance and timely
advice and well wishers for encouragement given to us during the course of the
project.

It is my pleasure to express a deep sense of grateful

to Mr. Ramachandran (Welfare), HR Department without his untiring efforts
and tremendous background information this work would not have materialized.
I express my sincere thanks to all the staff of IREL, Chavara for their co-
operation during my study in the company.

Last but not least we thank my parents and for all their moral support
and help, they had given to me.
 DECLARATION

I declare that the project report entitled A

study on Employee Welfare practices of Indian Rare Earths Limited Submitted
by me for the award of Master of Business Administration of M.G University is
my own work. The report has not been submitted for the award of any other
degree of this university or any university.

Place: Kollam Ampady.S

Date:
 ABSTRACT

Employee Welfare is an important facet

of industrial relations, the extra dimension, giving satisfaction to the worker in a
way which evens a good wage cannot. With the growth of industrialization and
mechanization, it has acquired added importance. The workers in industry
cannot cope with the pace of modern life with minimum sustenance amenities.
He needs an added stimulus to keep body and soul together. Employers have also
realized the importance of their role in providing these extra amenities. And yet,
they are not always able to fulfill workers demands however reasonable they
might be. They are primarily concerned with the viability of the enterprise
.Employee welfare, though it has been proved to contribute to efficiency in
production, is expensive. Each employer depending on his priorities gives
varying degrees of importance to labour welfare. It is because the government is
not sure that all employers are progressive minded and will provide basic
welfare measures that it introduces statutory legislation from time to time to
bring about some measures of uniformity in the basic amenities available to
industrial workers. After employees have been hired, trained and remunerated,
they need to be retained and maintained to serve the organization better. Welfare
facilities are designed to take care of the wellbeing of the employees, they do not
generally result in any monetary benefit to the employees. Nor are these
facilities provided by employers alone. Governmental and non-governmental
agencies and trade unions too, contribute towards employee welfare.

Employee welfare is a comprehensive term including various services, benefits

and facilities offered to employees by the employer. Through such generous
fringe benefits the employer makes the life worth living for employees. The
welfare amenities are extended in addition to normal wages and other economic
rewards available to employees as per the legal provisions. Welfare measures
may also be provided by the government, trade unions and nongovernment
agencies in addition to the employer. The basic purpose of employee welfare is
to enrich the life of the employees and keep them happy and contended.
 LIST OF CONTENTS
Page
Subject
Number

Introduction 2
Statement of the problem 3
Chapter 1 Scope of the study 3
Objective of the study 4
Limitations of the study 4
Industry profile 5
Company Profile 9
Product Profile 14
Chapter 2
Customer Profile 16
Functions of HR Department IREL 19
Welfare activities of IREL 29
Research Methodology 37
Sampling Plan 38
Chapter 3
Literature review 39
Theoretical background of employee welfare 41
Chapter 4 Data analysis and inferences 49
Chapter 5 Findings 81
Recommendations 83
Conclusion 84
Annexure:

Questionnaire 85

88
Organisational Chart
 LIST OF TABLES

Page
Table No Subject
Number
1 Mineral resources in India 7
2 Contribution to the world 7
3 Product profile 14
4 Product and Uses 15
5 Manpower Strength 21
6 Canteen Facility 49
7 Medical and First Aid 51
8 Cleaning and Washing facility 53
9 Transportation facilities 55
10 Housing Loans and Advances 57
11 Educational Allowances 59
12 Retirement Benefit 61
13 Maternity Benefit 63
14 Rest Facility 65
15 Drinking water Facility 67
16 Training Facilities 69
17 Leave Benefits 71
18 Lighting and Ventilation Facilities 73
19 Safety Precautions 75
20 Overall welfare activities 77
21 Relationship between employee & employer 79
 Page
Figure No Subject
Number
1 Corporate Structure 2

2 Department Structure 19

3 Canteen Facility 50

4 Medical and First Aid 52

5 Cleaning and Washing facility 54

6 Transportation facilities 56

7 Housing Loans and Advances 58

8 Educational Allowances 60

9 Retirement Benefit 62

10 Maternity Benefit 64

11 Rest Facility 66

12 Drinking water Facility 68

13 Training Facilities 70

14 Leave Benefits 72

15 Lighting and Ventilation Facilities 74

16 Safety Precautions 76

17 Overall welfare activities 78

18 Relationship between employee & employer 80

LIST OF FIGURES