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,
Department of Management studies,
Caarmel Engineering College,
Pathanamthitta

Asst. Professor,
Department of Management studies,
Caarmel Engineering College,
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 cooperation 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
Date:

Ampady.S

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
Number

Subject
Introduction

Statement of the problem

Scope of the study

Objective of the study

Limitations of the study

Industry profile

Company Profile

Product Profile

14

Customer Profile

16

Functions of HR Department IREL

19

Welfare activities of IREL

29

Research Methodology

37

Sampling Plan

38

Literature review

39

Theoretical background of employee welfare

41

Chapter 4

Data analysis and inferences

49

Chapter 5

Findings

81

Recommendations

83

Conclusion

84

Chapter 1

Chapter 2

Chapter 3

Annexure:
Questionnaire
Organisational Chart

85
88

LIST OF TABLES

Table No

Subject

Page
Number

Mineral resources in India

Contribution to the world

Product profile

14

Product and Uses

15

Manpower Strength

21

Canteen Facility

49

Medical and First Aid

51

Cleaning and Washing facility

53

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

Figure No

Subject

Page
Number

Corporate Structure

Department Structure

19

Canteen Facility

50

Medical and First Aid

52

Cleaning and Washing facility

54

Transportation facilities

56

Housing Loans and Advances

58

Educational Allowances

60

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