A STUDY ON THE OPINION AND SATISFACTION OF EMPLOYEES

ON ESI SCHEMES IN SHOE MANUFACTURING COMPANIES AT

PAMAL, CHENNAI

PROJECT REPORT

Submitted to
DRAVIDIAN UNIVERSITY

In the partial fulfillment for the award of

MASTER DEGREE IN BUSINESS ADMINISTRATION

Submitted by
MATHAN RAJ P.K.
REG NO: 22205409010

Under the guidance of

Mrs. IDA SELVARANI
MA (Psy), MDPA, PGDBA, LLB, FDP (IIM-A)

OSCAR MANAGEMENT COLLEGE

#A-2, Near Collectorate,
Sathuvachari,Vellore – 9.

2009-2011
 OSCAR MANAGEMENT COLLEGE
(Approved by DRAVIDIAN UNIVERSITY)
#A-2, Near Collectorate,
Sathuvachari,Vellore – 9

BONAFIDE CERTIFICATE

This is to certify that this project entitled “A STUDY ON THE OPINION

AND SATISFACTION OF EMPLOYEES ON ESI SCHEMES IN SHOE
MANUFACTURING COMPANIES AT PAMAL, CHENNAI” submitted by
MATHAN RAJ.P.K (RegNo: 22205409010) in partial fulfillment of the
requirement for the award of Master of Business Administration from
DRAVIDIAN UNIVERSITY, is the original work of the candidate and has not
been submitted for awarding any degree of either this university or any other
university either in full or in part.

Signature of the Guide

(IDA SELVARANI)
 OSCAR MANAGEMENT COLLEGE
(Approved by DRAVIDIAN UNIVERSITY)
#A-2, Near Collectorate,
Sathuvachari,Vellore – 9

EXTERNAL CERTIFICATE

This is to certify that this project entitled “A STUDY ON THE OPINION

AND SATISFACTION OF EMPLOYEES ON ESI SCHEMES IN SHOE
MANUFACTURING COMPANIES AT PAMAL, CHENNAI” submitted by
MR.MATHAN RAJ. P. K (Reg No: 22205409010) for viva voce Examination
held on ______________ in partial fulfillment of the requirement for the award
of Master of Business Administration from DRAVIDIAN UNIVERSITY.

External Examiner Internal

Examiner

Principal
 OSCAR MANAGEMENT COLLEGE
(Approved by DRAVIDIAN UNIVERSITY)
#A-2, Near Collectorate,
Sathuvachari,Vellore – 9

DECLARATION

I, MathanRaj. P. K. hereby declare that the project entitled “A STUDY ON

THE OPINION AND SATISFACTION OF EMPLOYEES ON ESI
SCHEMES IN SHOE MANUFACTURING COMPANIES AT PAMAL,
CHENNAI” submitted to DRAVIDIAN UNIVERSITY in partial fulfillment of
the degree in Master of Business Administration is a record of original work
done by me. This project work has not previously formed the basis for the
award of any degree, diploma, associateship, fellowship or other similar title.

Place: (MATHAN RAJ.P.K.)

Date: Reg No:
22205409010
ACKNOWLEDGMENT

First and foremost, I thank GOD for the blessings and guidance at all stages in the
completion of this project.

I take this opportunity to express my deep sense of gratitude to

Mr. JAI CHANDRAN, Founder Chairman, of our college for his goodwishes for this
project. I express my immense gratitude to my Principal Prof. P. PETER for his support and
encouragement for the completion of my project.

I take immense pleasure in conveying my thanks and deep sense of gratitude to my

Project Guide and my mentor Mrs. IDA SELVARANI, for her exhilarating supervision,
timely suggestions, motivation and encouragement during all phases of this project work and
without her guidance and support, this project will not be possible.

I also thankful to all other faculty members of the department for the constant co-
operations and encouragement in pursuing my project work.

I also very much thankful to Mr. J. JOHN COLAP PRAVIN, Accounts Manager of
Gadsyl Exports Private Limited who has provided me with the necessary information for the
project and complete support to finish this project without any issue.

I specially thank Dr. R. RAVANAN, Associate Professor of Statistics, Presidency

College, Chennai for his teaching and guidance in the SPSS Package and in different
Statistical tools. Without his guidance it is not easy to complete the data analysis part.

I would like to thank all my friends for their constant encouragement, support and
help to make this project a success.
 Finally, I would like to convey my gratitude to my loveable parents and relatives
whose prayers and blessings were always there with me.
MATHAN RAJ.P.K

TABLE OF CONTENTS

CHAPTER NO TITLE PAGE NO

1 INTRODUCTION
1.1 Introduction 1
1.2 Statement of the Problem 3
1.3 Need for the Study 4
1.4 Objectives of the Study 4
1.5 Scope of the Study 4
1.6 Limitations of the Study 5
1.7 Company Profile 5
2 RESEARCH METHODOLOGY
2.1 Field of the Study 7
2.2 Research Design 7
2.3 Sample Design 7
2.4 Source of Data 8
2.5 Tool of Data Collection 8
2.6 Data Analysis 9
3 REVIEW OF LITERATURE
3.1 Theoretical Framework 17
3.2 Research Studies 30
4 DATA ANALYSIS AND INTERPRETATION 32 – 64
5 FINDINGS, SUGGESTIONS AND CONCLUSION
5.1 Findings 65
5.2 Suggestions 69
5.3 Conclusion 70
Questionnaire 71
Annexure
Bibliography 75

LIST OF TABLES

TABLE NO TABLE NAME PAGE NO

1 Details of Age Group 32
2 Gender of the Respondent 33
3 Marital Status 34
 4 Educational Qualification 35
5 Awareness about Deduction 36
6 Treatment Place 37
7 Reason for Going to ESI 38
8 Reason for Not Going to ESI 39
9 Services Availed 40
10 Facilities Availed 41
11 Percentage of ESI Benefits Availed 42
12 Chi-Square Test for Number of Benefits Availed 43
13 Percentage of Opinion about ESI Benefits 44
14 t-Test for Level of Opinion and Physical Performance 45
15 One Sample t-Test for the Opinion on ESI Benefits 46
16 Accidents at Work 47
17 Accident Treated Place 48
18 Medical Problems Faced 49
19 Level of Satisfaction on ESI Facilities 50
20 Company Involvement 51
21 Level of Company Support 52
22 Level of Difficulty in Understanding ESI 53
23 Awareness on new ESI Amendments 54
24 Awareness about the online facility 55
25 Level of Competency 56
26 Overall Opinion 57
27 Correlation between Overall Satisfaction and Opinion 58
Correlation between the Organization support and the Overall
28 59
Satisfaction
29 Level of Satisfaction on Company Benefits 60
30 ANOVA – Total Satisfaction and Age Group 61
31 Descriptive Statistics for Age Group 61
32 Crosstabs between Age Group and the Satisfaction Level 62
33 Level of Motivation 63
34 ANOVA – Total Satisfaction and Motivation 64
35 Descriptive Statistics for Motivation 64

LIST OF FIGURES

FIGURE NO FIGURE NAME PAGE NO

1 Organization Structure of Gadsyl Exports Private Limited 5
2 Organization Structure of Saga Cuirs 6
 CHAPTER 1
INTRODUCTION

1.1 INTRODUCTION

According to World Health Organization, health is defined as a state of complete physical,

mental and social well-being and not merely an absence of diseases. All the activities of man
are influenced by the state of his health. Health is vital to productive life.

Health for all by is, of course, a difficult challenge to the nation in general and the health
providers in particular. As the industrialization takes place rapidly in India, the number of
persons employed in industrial establishments also increases considerable. The industrial
workers health will be increased if better conditions are prevailing in their work place as well
as in their house, including water, sewage, waste disposal, nutrition, education, other
environmental sanitations, etc. The industrial workers do need special measures to maintain
their normal health.
Health insurance is insurance against the risk of incurring medical expenses. By estimating
the overall risk of health care expenses, an insurer can develop a routine finance structure,
such as a monthly premium or payroll tax, to ensure that money is available to pay for the
health care benefits specified in the insurance agreement. The benefit is administered by a
central organization such as a government agency, private business, or not-for-profit entity.

The concept of health insurance was proposed in 1694 by Hugh the Elder Chamberlen from
the Peter Chamberlen family. In the late 19th century, accident insurance began to be
available, which operated much like modern disability insurance. This payment model
continued until the start of the 20th century in some jurisdictions (like California), where all
laws regulating health insurance actually referred to disability insurance.

Hospital and medical expense policies were introduced during the first half of the 20th
century. During the 1920s, individual hospitals began offering services to individuals on a
pre-paid basis, eventually leading to the development of Blue Cross organizations. The
predecessors of today's Health Maintenance Organizations (HMOs) originated beginning in
1929, through the 1930s and on during World War II.

Healthcare in India features a universal health care system run by the constituent states and
territories of India. The Constitution charges every state with "raising of the level of nutrition
and the standard of living of its people and the improvement of public health as among its
primary duties". The National Health Policy was endorsed by the Parliament of India in 1983
and updated in 2002. However, the government sector is understaffed and underfinanced;
poor services at state-run hospitals force many people to visit private medical practitioners.

Social security is primarily a social insurance program providing social protection or

protection against socially recognized conditions, including poverty, old age, disability,
unemployment and others. Employees’ State Insurance scheme was started by the Indian
Government in the year 1948. Employees' State Insurance scheme is a self-financing social
security and health insurance scheme for Indian workers. For all regular employees earning
less than Rs. 15,000 per month salary, the employers and employees contribute a fixed
percentage of the salary. This fund is managed by the ESI Corporation, which oversees the
provision of medical and other benefits to the employees, through its large network of
dispensaries and hospitals throughout India.
ESI was started in India, initially for factory workers. It now provides social security to
employees from all industries, covering 12.5 million employees working with about 400,000
employers. Total beneficiaries as of 2008-09 are above 50 million. The employees registered
under the scheme are entitled to medical treatment for themselves and their dependants,
unemployment cash benefit in certain contingencies, and maternity benefit in case of women
employees. In case of employment-related disablement or death, there is provision for a
disablement benefit and a family pension, respectively.

Outpatient medical facilities are available in 1398 ESI dispensaries, and through 1678
empanelled private medical practitioners. Inpatient care is available in 145 ESI Hospitals and
42 Hospital annexes; a total of 19387 beds. In addition, several state government hospitals
also have beds for exclusive use of ESI Beneficiaries. Cash benefits can be availed in any of
783 ESI centres located throughout India.

1.2 STATEMENT OF THE PROBLEM

Shoemaking is a particularly hazardous occupation for women notably, the exposure to

chemical solvents and dust. Among the materials used in the shoe manufacturing process,
that could be occupational hazards, are the adhesives, especially adhesives solutions based on
organic solvents. Air samples analyses show 20 different organic compounds existing in the
workplaces (Mayan, et. al., 1999)1. Studies show association between exposure to leather dust
and nasal cancer and between exposure to benzene and leukemia in the shoe manufacturing
industry. Some evidence for an excess risk of stomach, bladder and kidney cancer as well as
multiple myeloma and non-Hodgkin’s lymphoma was found among workers in jobs with the
highest exposure to solvent (Hua Fu et. al., 1990) 2. The poorer the worker, fewer the choices,
and most workers cannot afford to worry about chemical hazards. Thus ESI scheme provide
health insurance for the industrial workers in India.

1
Mayan O, Pires A, Neves P, Capela F.,Applied Occupational and Environmental Hygiene. 1999, Nov;
14(11):785-90.

2
Hua Fu, Paul A Demers, Adele Seniori Costantini, Paul Winter, Didier Colin, Shoe manufacturing and solvent
exposure in northern Portugal Occupational and Environmental Medicine, 1990, 53: 394-398
The Employees' State Insurance Act passed in 1948 is an important measure of social
security and health insurance to industrial workers in the country. The scheme provides
protection against loss of wages due to inability to work on account of sickness, maternity,
disablement and payment of benefits in the form of pension to dependents of insured persons
who die as a result of employment injury. The scheme also provides medical care to insured
and their family members through ESI hospitals, dispensaries, annexes and other hospitals.

Despite all these comprehensive services, it has been reported that the beneficiaries are not
satisfied with ESI services. This has led to resentment on the part of industrial management to
contribute to ESI scheme. Although some of the problems related to such dissatisfaction are
known, yet, there is a need to understand more details on the reasons for dissatisfaction. This
study, therefore, is designed to analyze the opinion and satisfaction of the employees about
the ESI Scheme.

1.3 NEED FOR THE STUDY

1. The importance of worker’s health to a company is undisputable. ESI is a contributory

welfare scheme provided to workers earning less than Rs.15,000/- per month.
Workers in shoe manufacturing industry being exposed to occupational hazards,
require health services. The researcher was therefore interested to study the opinion of
workers towards the scheme.

2. The ESI hospitals have a very crucial role in helping the industrial workers to
maintain their health as well as the health of the members of their family. However,
several studies conducted earlier in India reported dissatisfaction of beneficiaries with
the service provided with the ESI hospitals. Therefore the researcher was interested to
know how workers were utilizing ESI hospitals.

3. In partial fulfillment of the MBA course this study was undertaken.

1.4 OBJECTIVES OF THE STUDY

The following are the objectives of the study:

1. To assess the belief of the employees about the ESI Schemes

2. To study the satisfaction in the used ESI schemes by an employee
3. To study the organization support in providing the ESI benefits to their employees
4. To analyze the issues faced by employees in getting the ESI benefits

1.5 SCOPE OF THE STUDY

The study is only on the opinion and satisfaction of employees about the ESI Schemes. It is
only among the employees of shoe manufacturing companies. So, the information derived
from the study is only relevant to this type of industry alone.

This study covered only the workers of two selected shoe manufacturing companies in Pamal,
Chennai. So, the information and the conclusion derived from the study are only relevant to
this area alone. Consequently, generalization may be drawn for similar shoe manufacturing
companies.

1.6 LIMITATIONS OF THE STUDY

The duration of the project was one of the primary constraints for the project. It was an
academic effort and limited to cost, time and geographical area. Numbers of respondents
were also restricted due to the time factor. This study is confined only among the workers of
the shoe manufacturing companies in Pamal, Chennai.

1.7 PROFILE OF THE COMPANIES

Gadsyl Exports Private Limited

The company has been in the shoe manufacturing business for the last 5 years. For the past 5
years, the company has been operated in proprietary facilities spanning 3500 square meters,

MD

DIRECTOR
MRS. AMSA GIRI
 GM
R.T. DINESH

Production Manager Accounts Manager

Mr. SHANMUGAM Mr. John Colap Pravin

Cutting Upper Closing Store

Office
Section Section Section Incharge Accountant
Assistant
Supervisor Supervisor Supervisor Mr. Wilson & Ms. Jamuna
Ms. Sangeetha
Mr. Chandar Mr. Sivabalan Mr. Shankar Ms. Ponny

Fig 1: Organization Structure of Gadsyl Exports Private Limited

with state of the art equipment and the capability to produce 800 to 1000 pairs of shoes
Uppers and 450 to 650 pairs of shoes per day, mainly kids and teenagers, men’s and Ladies
leather shoes and uppers. This company generates around Rs 4.45 crores as annual turnover.
It has a subsidiary namely Twin Star Engineering which manufactures engineering tools and
machines. The company export market includes North America, South America, Eastern
Europe, Southeast Asia, Africa, Oceanic, Mid East, Eastern Asia and Western Europe.

Calzados Saga Exports Private Limited

It is a shoe manufacturing and export oriented company situated near Chrompet, Chennai. It
is running as a successful company in the industry for more than five years which is also
known as Saga Cuirs. The Company was founded and owned by Mr. Ganesh. It deals with
Leather Shoe Manufacturing, Leather Bag Manufacturing, Leather Cap Manufacturing,
Apron Leather Manufacturing, Hand Gloves Leather, Leather Apparel and it exports the
products to the foreign nations. It also has a sales unit for local region. It has clients from
Spain, Italy, France, Europe and from other regions of the world. It also has higher
production capacity generating more than Rs. 5 to 6 crores annually.

MD
Mr. GANESH

General
Manager
 Production Manager Accounts Manager

Office
Accountant
Employees

Sales Manager

Production
Local Sales
Unit &
Unit
Workers

Fig 2: Organization Structure of Saga Cuirs

CHAPTER 2
RESEARCH METHODOLOGY

2.1 FIELD OF THE STUDY

The study was conducted among the employees of two Manufacturing companies in Chennai.
They are Gadsyl Exports Private Limited and Saga Cuirs.

2.2 RESEARCH DESIGN

A Research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
A Research design could be defined as the blue print specifying every stage of action in the
course of research. Such a design would indicate whether the course of action planned will
minimize the use of resources and maximize the outcome.

Descriptive Research Design

The Research design used in this study was Descriptive Research Design. Descriptive studies
come under formal research, where the objectives are clearly established. It is concerned with
the research studies with a focus on the portrayal of the characteristics of a group or
individual or a situation. The main objective of this type of study is to acquire knowledge.

2.3 SAMPLE DESIGN

A Sample Design is a definite plan for obtaining a sample from a give population. It refers to
the technique or the procedure the researcher would adopt in selecting items for the sample.

The sampling technique which was used in this research was Simple Random Sampling. It is
one of the Probability Sampling techniques. Probability Sampling is the sampling technique
in which every unit of the population has given equal chance to be included in the study.

Population: N = 110 + 120, Sample Size: n = 40 +40

2.4 SOURCE OF DATA

Primary Data
Primary data is known as the data collected for the first time through field survey. In this
study primary data was collected from Gadsyl Exports Private Limited and

Secondary Data
Secondary data refers to the information or facts already collected. Such data are collected
with the objective of understanding the past status of any variable. In this study, company
records/reports, books, journals, bare acts and internet sources were used as secondary data.

2.5 TOOL OF DATA COLLECTION

The primary tool which was used for data collection was Questionnaire. A Structured
Questionnaire which consisted of a series of questions related to the objective of the study
was designed. In the prepared questionnaire, twenty one closed-end questions with one open-
ended question were designed. The questionnaire was prepared with the help of different
Scaling Techniques and Measurement Scales.
2.6 DATA ANALYSIS

Primary data generated by the study were cleaned to ensure consistency and transcribed in
coded form (pre and post-coded) into the computer using the Statistical Package for Social
Sciences (SPSS). There are five different Statistical tools are used in this project to analyze
the data effectively. It includes the advanced statistical tools also. The Statistical tools used to
analyze are mentioned as follows.
1. T-Test for Single Mean
2. T-Test for difference of two mean
3. ANOVA – One Way ANOVA
4. Chi-Square test for independence of attributes
5. Correlation Coefficient

In the analysis, for all questions which involves the rating scale, the scale value was set least
for higher rating and greater for lower rating. So, the higher mean value is considered while
writing inference for the questionnaires.
T-Test for Single Mean:

The t- test is the most powerful parametric test for calculating the significance of a small
sample mean. A one sample t-test has the following null hypothesis:

Where, the Greek letter μ (mu) represents the population mean and c represents its assumed
(hypothesized) value. In statistics it is usual to employ Greek letters for population
parameters and Roman letters for sample statistics. The t-test is the small sample analog of
the z test which is suitable for large samples. A small sample is generally regarded as one of
size n<30.

A t-test is necessary for small samples because their distributions are not normal. If the
sample is large (n>=30) then statistical theory says that the sample mean is normally
distributed and a z test for a single mean can be used. This is a result of a famous statistical
theorem, the Central limit theorem.
A t-test, however, can still be applied to larger samples and as the sample size n grows larger
and larger, the results of a t-test and z-test become closer and closer. In the limit, with infinite
degrees of freedom, the results of t and z tests become identical.

In order to perform a t-test, one first has to calculate the "degrees of freedom." This quantity
takes into account the sample size and the number of parameters that are being estimated.
Here, the population parameter, mu is being estimated by the sample statistic x-bar, the mean
of the sample data. For a t-test the degrees of freedom of the single mean is n-1. This is
because only one population parameter (the population mean) is being estimated by a sample
statistic (the sample mean).

Formula for calculating the t value:

T-Test for difference of two mean:

The Independent Samples T Test compares the mean scores of two groups on a given
variable. One of the frequently used t-test is a two sample location test of the null hypothesis
that the means of two normally distributed populations are equal. All such tests are usually
called Student's t-tests, though strictly speaking that name should only be used if the
variances of the two populations are also assumed to be equal; the form of the test used when
this assumption is dropped is sometimes called Welch's t-test. These tests are often referred to
as "unpaired" or "independent samples" t-tests, as they are typically applied when the
statistical units underlying the two samples being compared are non-overlapping.

Independent two-sample t-test for Unequal sample size and equal variance

This test is used only when it can be assumed that the two distributions have the same
variance. The t statistic to test whether the means are different can be calculated as follows:
Where,

Note that the formulae above are generalizations for the case where both samples have equal
sizes (substitute n1 and n2 for n).

is an estimator of the common standard deviation of the two samples: it is defined in

this way so that its square is an unbiased estimator of the common variance whether or not
the population means are the same. In these formulae, n = number of participants, 1 = group
one, 2 = group two. n − 1 is the number of degrees of freedom for either group, and the total
sample size minus two (that is, n1 + n2 − 2) is the total number of degrees of freedom, which
is used in significance testing.

ANOVA:

In statistics, one-way analysis of variance (abbreviated one-way ANOVA) is a technique

used to compare means of two or more samples (using the F distribution). This technique can
be used only for numerical data.

The ANOVA tests the null hypothesis that samples in two or more groups are drawn from the
same population. To do this, two estimates are made of the population variance. These
estimates rely on various assumptions. The ANOVA produces an F statistic, the ratio of the
variance calculated among the means to the variance within the samples. If the group means
are drawn from the same population, the variance between the group means should be lower
than the variance of the samples, following central limit theorem. A higher ratio therefore
implies that the samples were drawn from different populations.
The degrees of freedom for the numerator is I-1, where I is the number of groups (means).
The degrees of freedom for the denominator is N - I, where N is the total of all the sample
sizes.

Typically, however, the one-way ANOVA is used to test for differences among at least two
groups, since the two-group case can also be covered by a t-test (Gosset, 1908). When there
are only two means to compare, the t-test and the F-test are equivalent; the relation between
ANOVA and t is given by F = t2.

Grand Mean

The grand mean of a set of samples is the total of all the data values divided by the total
sample size. This requires that you have all of the sample data available to you, which is
usually the case, but not always. It turns out that all that is necessary to find perform a one-
way analysis of variance are the number of samples, the sample means, the sample variances,
and the sample sizes. Another way to find the grand mean is to find the weighted average of
the sample means. The weight applied is the sample size.

Total Variation

The total variation (not variance) is comprised the sum of the squares of the differences of
each mean with the grand mean.

There is the between group variation and the within group variation. The whole idea behind
the analysis of variance is to compare the ratio of between group variance to within group
variance. If the variance caused by the interaction between the samples is much larger when
compared to the variance that appears within each group, then it is because the means aren't
the same.
Between Group Variation

The variation due to the interaction between the samples is denoted SS(B) for Sum of
Squares Between groups. If the sample means are close to each other (and therefore the
Grand Mean) this will be small. There are k samples involved with one data value for each
sample (the sample mean), so there are k-1 degrees of freedom.

The variance due to the interaction between the samples is denoted MS(B) for Mean Square
Between groups. This is the between group variation divided by its degrees of freedom. It is

also denoted by .

Within Group Variation

The variation due to differences within individual samples, denoted SS(W) for Sum of
Squares Within groups. Each sample is considered independently, no interaction between
samples is involved. The degrees of freedom is equal to the sum of the individual degrees of
freedom for each sample. Since each sample has degrees of freedom equal to one less than
their sample sizes, and there are k samples, the total degrees of freedom is k less than the total
sample size: df = N - k.

The variance due to the differences within individual samples is denoted MS(W) for Mean
Square Within groups. This is the within group variation divided by its degrees of freedom. It

is also denoted by . It is the weighted average of the variances (weighted with the degrees
of freedom).

F test statistic

Recall that a F variable is the ratio of two independent chi-square variables divided by their
respective degrees of freedom. Also recall that the F test statistic is the ratio of two sample
variances, well, it turns out that's exactly what we have here. The F test statistic is found by
dividing the between group variance by the within group variance. The degrees of freedom
for the numerator are the degrees of freedom for the between group (k-1) and the degrees of
freedom for the denominator are the degrees of freedom for the within group (N-k).

Chi-Square Test for Independence of Attributes:

The test is applied when you have two categorical variables from a single population. It is
used to determine whether there is a significant association between the two variables.
Suppose N observations are considered and classified according two characteristics say A and
B. We may be interested to test whether the two characteristics are independent. In such a
case, we can use Chi square test for independence of two attributes.

It has to be noted that the Chi square goodness of fit test and test for independence of
attributes depend only on the set of observed and expected frequencies and degrees of
freedom. These two tests do not need any assumption regarding distribution of the parent
population from which the samples are taken.

Since these tests do not involve any population parameters or characteristics, they are also
termed as non-parametric or distribution free tests. An additional important fact on these two
tests is they are sample size independent and can be used for any sample size as long as the
assumption on minimum expected cell frequency is met.

 Degrees of freedom: The degrees of freedom (DF) is equal to: DF = (r - 1) * (c - 1)

where r is the number of levels for one categorical variable, and c is the number of
levels for the other categorical variable.

 Expected frequencies: The expected frequency counts are computed separately for
each level of one categorical variable at each level of the other categorical variable.
Compute r * c expected frequencies, according to the following formula.

Er,c = (nr * nc) / n

 where Er,c is the expected frequency count for level r of Variable A and level c of
Variable B, nr is the total number of sample observations at level r of Variable A, n c is
the total number of sample observations at level c of Variable B, and n is the total
sample size.

 Test statistic: The test statistic is a chi-square random variable (Χ2) defined by the
following equation.

Χ2 = Σ [ (Or,c - Er,c)2 / Er,c ]

where Or,c is the observed frequency count at level r of Variable A and level c of
Variable B, and Er,c is the expected frequency count at level r of Variable A and level
c of Variable B.

 P-value: The P-value is the probability of observing a sample statistic as extreme as

the test statistic. Since the test statistic is a chi-square, use the Chi-Square Distribution
Calculator to assess the probability associated with the test statistic. Use the degrees
of freedom computed above.

Correlation Coefficient:

Correlation is one of the statistical tools very widely applied as a tool of analysis in every
subject. It is a statistical measure of establishing qualitative relationship between two or more
variables. Through correlation, it is possible to indicate the direction of relationship between
variables. In research, whenever qualitative variables are used, their relationship is studied
through correlation. Correlation is measured applying different methods in statistics. They
are, Graphical method, Scatter diagram method, Karl Pearson’s coefficient of correlation and
Spearman’s Rank correlation. A very important point to note is that correlation value for any
set of values should not exceed +1 or -1.

The formula for Pearson's correlation takes on many forms. A commonly used formula is
shown below.
A simpler looking formula can be used if the numbers are converted into z scores:

where zx is the variable X converted into z scores and zy is the variable Y converted into z
scores.

CHAPTER 3
REVIEW OF LITERATURE

3.1 THEORETICAL FRAMEWORK

ESI Act

The promulgation of Employees’ State Insurance Act, 1948 envisaged an integrated need
based social insurance scheme that would protect the interest of workers in contingencies
such as sickness, maternity, temporary or permanent physical disablement, death due to
employment injury resulting in loss of wages or earning capacity. the Act also guarantees
reasonably good medical care to workers and their immediate dependants.
Following the promulgation of the ESI Act the Central Govt. set up the ESI Corporation to
administer the Scheme. The Scheme, thereafter was first implemented at Kanpur and Delhi
on 24th February 1952. The Act further absolved the employers of their obligations under the
Maternity Benefit Act, 1961 and Workmen’s Compensation Act 1923. The benefit provided
to the employees under the Act are also in conformity with ILO conventions.

Employee Registration    

For registration of employees coverable under the Scheme, the Employer shall submit
Employees Declaration Form (Form 1) in respect of every individual employee separately .
Procedure for Registering Employees

Step 1: The monthly wage limit for coverage would be such as prescribed by the Central
Govt. vide Rule 50 of ESI (Central) Rules 1950. The existing wage ceiling is Rs.15,000/-
p.m. (with effect from 1.05.2010). All those persons employed for wages drawing an amount
within the wage ceiling employed in clerical, manual, skilled, semi-skilled, unskilled without
distinguishing casual, temporary, technical & non-technical are to be covered. In respect of
each of such employees a declaration (Form 1), duly filled in & signed by the employee
concerned and duly countersigned by the authorized signatory of the employer is to be
forwarded to the appropriate Branch Office within 10 days of employment along with two
copies of family photo.
Step 2: Appropriate Branch Office shall allot Insurance Numbers, which are specific in
favour of the individual employee, (Male & Female employees will get separate series of
Insurance Numbers) and forward to the employer, along with the Identity Card / Temporary
Identity Card, Return of declaration forms etc. At the same time the office will also forward
the Medical Record envelops of such Insured Persons to the respective dispensaries.

Step 3: Distribute the Identity cards to individual, employees under due acknowledgement. It
should be ensured that each employee signs on the card in the presence of the employer
before issue of the card. Educate the employee on the benefits available under the Act & how
to claim the Medical Benefits and cash benefits whenever required.

Factory Registration
Registration of a factory/establishment with the Employees' State Insurance Corporation is a
statutory responsibility of the employer under Section 2-A of the Act read with Regulation
10-B. The employer, in respect of a factory/establishment to which the Act applies for the
first time, is liable to furnish Declaration of Registration in Form 01 (Employers' Registration
Form) to the concerned Regional / Sub Regional Office  within 15 days after the Act becomes
applicable.

This is obligatory on the part of the Employer. In addition to this, the employer will have to
indicate, in a separate sheet, the name and address of the factory/establishment, number of
employees, nature of duty and name, designation and address of the Manager, controlling
such persons in respect of any other office(s) situated outside the premises of the Factory/
Establishment.

Procedure for Registration of Factories

Step 1: Ascertain whether your factory / establishment is situated within the area of
implementation by ESIC (Implemented area). Regional Office, Sub Regional Office, Branch
Offices, and Inspectorates Office of ESIC will guide you, on this matter, if contacted.

Step 2: It is statutory responsibility of the employer to get his factory registered under the
ESI as per Section 2A of the Act, read with Regulation 10 B within 15 days of establishing or
15 days after the Act becomes applicable to the area in which the factory is situated. A
declaration of registration in Form 01 (Employer’s Registration form) is to be submitted to
the appropriate office (Regional Office, ESI Corporation, Chennai in your case) for the
purpose.

Step 3: The Sub Regional Office will allot a specific code number in Form C-11, after
examining the aspect of coverage. This number so allotted is very specific for the employer
and the same has to be used in all correspondence with ESIC. The area Branch Office to
which the particular employer attached is the “Appropriate Office” for “Registration of
Employees”. List of Branch Offices and Dispensaries under the Coimbatore Sub Region is
furnished in a separate Booklet.
Sub Code Number: There may be a case where the employer is having the main factory /
establishment at one station and sub-unit, branch office, sales office or registered office at
another station, either within the State or outside the State; In all such cases, on request of the
employer to the Regional Office / Sub Regional Office concerned, Sub-Code number is
allotted to each sub-unit, branch office, sales office and registered office.

Contributions

Contribution is the amount payable to the Corporation by the Principal Employer in respect
of an employee and comprises the amount payable by the employee and the employer.
It is obligatory on the part of the employer to calculate and remit ESI Contribution
comprising of employers' share 4.75% plus employees' share of 1.75% which is payable on or
before 21st of the following month, to the month to which the salary relates. If the employee
is drawing upto Rs.70/- as daily average wage, he is exempt from the payment of his share of
contribution. The employer is however to pay employer's share of 4.75% of the salary
received/receivable by the employee.

Return of Contributions

The RCs should be prepared in quadruplicate and submitted to the appropriate Branch Office
within 42 days of the expiry of the contribution period (12th May or November 11th of each
year).

Return of contribution is required to be submitted separately for the main Code Number and
each sub-code number. It is in the interest of the employer to make compliance in respect of
the sub-unit, branch office, sales office, registered office etc. independent of the compliance
being made in respect of the main unit. 

Where the employer prefers to make compliance from the parent unit, he may submit only
one return in respect of all the branches. The single return in such cases will be accepted at
the concerned Branch Office to which the parent unit is attached. Such employers are also
advised to ensure that names of Branch Offices to which the Return pertains should be
distinctly noted in the return so as to facilitate their expeditious onward transmission to those
Branch Offices and also to avoid undue inconvenience to their Insured Persons.

Such employers also may submit return of contributions in respect of each branch office/sales
office separately along with copies of remittance challans in support of payment of
contributions in respect of the employees of each branch office to the parent Branch Office.

On the other hand, where the employer prefers to make compliance through their Branch
Offices/ Sales Offices separately in the Regions where such offices etc. are located, the RC
may be submitted by the Branch office to the concerned Branch Offices and there will be no
difficulty in subsequent receipt of benefits.

Branch Office while acknowledging the RC for the half year will return one copy of RCs to
the employer. Place this RC in ESI file of the employer & produce the same before the
Inspecting Officer/ Insurance Inspector who comes for Inspection, which is a statutory one.

Recovery of Contributions

In the first instance the Principal Employer is to pay employers' share of contribution in
respect of every employee whether employed directly or through immediate employer. The
employees' share may thereafter, be recovered by making deduction from their wages for the
wage period for which contribution is, however is payable. No such deduction may be made
from any wages other than those relating to the period in respect in which contribution is
payable.
Contribution Period and Benefit Period

There are two contribution periods each of six months duration and two corresponding
benefit periods also of six months duration as under.
Contribution period       Corresponding Cash Benefit period
1st April to 30th Sept.         1st January of the following year to 30th June
1st Oct. to 31st March        1st July to 31st December of the year following

Benefits

The section 46 of the Act envisages following six social security benefits.
(a) Medical Benefit
(b) Sickness Benefit (SB)
 Extended sickness Benefit(ESB)
 Enhanced Sickness Benefit
(c) Maternity Benefit (MB)
(d) Disablement Benefit
 Temporary disablement benefit(TDB)
 Permanent disablement benefit(PDB)
(e) Dependants’ Benefit (DB)
(f) Funeral Expenses: An amount of Rs. 5000/- is payable to the dependents or to the person
who performs last rites.

(g) Rajiv Gandhi Shramik Kalyan Yojana: This scheme of Unemployment allowance was
introduced w.e.f. 01-04-2005.  An Insured Person who become unemployed after being
insured three or more years, due to closure of factory/establishment, retrenchment or
permanent invalidity are entitled to
 Unemployment Allowance equal to 50% of wage for a maximum period of upto one
year.
 Medical care for self and family from ESI Hospitals/Dispensaries during the period IP
receives unemployment allowance.
 Vocational Training provided for upgrading skills - Expenditure on fee/travelling
allowance borne by ESIC.
An interesting feature of the ESI Scheme is that the contributions are related to the paying
capacity as a fixed percentage of the workers wages, whereas, they are provided social
security benefits according to individual needs without distinction.
Cash Benefits are disbursed by the Corporation through its Local Offices LOs/ Mini Local
Offices (MLOs)/Sub Local Offices SLOs)/pay offices, subject to certain contributory
conditions.

In addition, the scheme also provides some other need based benefits to insured workers.
These include:
 Rehabilitation allowance
 Vocational Rehabilitation

Medical Benefits

Type of Medical Benefits Provided

The Employees’ State Insurance Scheme provides full medical care in the form of medical
attendance, treatment, drugs and injections, specialist consultation and hospitalization to
insured persons and also to members of their families where the facility for Specialist
consultation, hospitalization has been extended to the families.

For the families, this benefit has been divided into two categories as under:
Full Medical Care: This consists of hospitalization facilities and includes specialist services,
drugs and dressings and diets as required for in-patients.
Expanded Medical Care: This consists of consultation with the specialists and supply of
special medicines and drugs as may be prescribed by them in addition to the out-patient care.
This also includes facilities for special laboratory tests and X-Ray examinations.
Apart from the curative services provided through hospitals and dispensaries, the Corporation
also provides the following facilities including family welfare services.

Immunization
The Corporation has embarked upon a massive programme of immunization of young
children of insured persons. Under this programme, preventive inoculation and vaccines are
given against diseases like diphtheria, pertusis, polio, tetanus, measles, mumps, rubella,
tuberculosis etc.

Family Welfare Services

Along with the immunization programme, the Corporation has been undertaking provision of
family Welfare Services to the beneficiaries of the Scheme. The Corporation has organized
these services in 180 centres besides reserving 330 beds in hospitals for undertaking
tubectomy operations. So far, 828976 sterilization operation viz. 176197 vasectomies and
652779 tubectomies have been performed upto 31.3.1999. The ESI Corporation has also
extended additional cash incentive to insured persons to promote acceptance of sterilization
method by providing sickness cash benefit equal to full wage for a period of 7 days for
vasectomy and 14 days for tubectomy. The period for which cash benefit is admissible is
extended beyond the above limits in the event of any complications after Family Planning
operations.

Supply of Special Aids

Insured persons and members of their families are provided artificial limbs, hearing aids, and
artificial appliances like spinal supports, cervical collars, walking calipers, crutches, wheel
chairs and cardiac pace makers as a part of medical care under the Scheme.

Sickness Benefits

Sickness Benefit represents periodical cash payments made to an IP during the period of
certified sickness occurring in a benefit period when IP requires medical treatment and
attendance with abstention from work on medical grounds. Prescribed certificates are; Forms
8,9,10,11 & ESIC-Med.13. Sickness benefit is roughly 60% of the average daily wages and is
payable for 91 days during 2 consecutive benefit periods.

Qualifying Conditions
(i) To become eligible to Sickness Benefit, an IP should have paid contribution for
not less than 78 days during the corresponding contribution period.
 (ii) A person who has entered into insurable employment for the first time has to wait
for nearly 9 months before becoming eligible to sickness benefit, because his
corresponding benefit period starts only after that interval.
(iii) Sickness Benefit is not payable for the first two days of a spell of sickness except
in case of a spell commencing within 15 days of closure of earlier spell for which
sickness benefit was last paid. This period of 2 days is called "waiting period".
This provision should be clearly understood by IMOs/IMPs as actual experience
shows that such of IPs who want to avail medical leave on flimsy grounds
generally come for First Certificate/First & Final Certificate within 15 days of
earlier spell, usually on unpaid holidays and/or on each weekly off etc, to avoid
loss of benefit for 2 days due to fresh waiting period.

Extended Sickness Benefit (ESB)

IPs suffering from long term diseases were experiencing great hardship on expiry of 91 days
Sickness benefit. Often they, though not fit for duty, pressed for a Final certificate. Hence, a
provision for paying Sickness Benefit for an extended period (Extended Sickness Benefit)of
upto 2 years in a ESB period of 3 years.

An IP suffering from certain long term diseases is entitled to ESB, only after exhausting
Sickness Benefit to which he may be eligible. A common list of these long term diseases for
which ESB is payable, is reviewed by the Corporation from time to time. The list was last
reviewed on 5.12.99 and revised provisions of ESB became effective from 1.1.2000 and at
present this list includes 34 diseases which are grouped in 11 groups as per International
Classification of diseases and theo names of many existing diseases have been changed as
under

I Infectious Diseases
1. Tuberculosis
2. Leprosy
 3. Chronic Empyema
4. AIDS
II Neoplasms
5. Malignant Diseases  
III Endocrine, Nutritional and Metabolic Disorders
6. Diabetes Mellitus-with proliferative retinopathy/diabetic foot/nephropathy.
IV Disorders of Nervous System
7. Monoplegia
8. Hemiplegia
9. Paraplegia
10. Hemiparesis
11. Intracranial Space Occupying Lesion
12. Spinal Cord Compression
13. Parkinson’s disease
14. Myasthenia Gravis/Neuromuscular Dystrophies
V Disease of Eye
15. Immature Cataract with vision 6/60 or less
16. Detachment of Retina
17. Glaucoma
VI Diseases of Cardiovascular System
18. Coronary Artery Disease:-
a. Unstable Angina
b. Myocardial infraction with ejection less than 45%  
1. Congestive Heart Failure- Left , Right
2. Cardiac Valvular Diseases with failure/complications
3. Cardiomyopathies
Heart disease with surgical intervention alongwith complications
VII Chest Diseases
Bronchiectasis
Interstitial Lung Disease
Chronic Obstructive Lung Diseases (COPD) with congestive heart failure (Cor Pulmonale)
VIII Diseases of the Digestive System
Cirrhosis of liver with ascities/chronic active hepatitis
IX Orthopaedic Diseases
Dislocation of vertebra/prolapse of intervertebral disc
Non union or delayed union of fracture
Post Traumatic Surgical amputation of lower extremity
Compound fracture with chronic osteomyelitis
X Psychoses
Sub-group under this head are listed for clarification
Schizophrenia
Endogenous depression
Manic Depressive Psychosis (MDP)
Dementia
XI Others
More than 20% burns with infection/complication
Chronic Renal Failure
Reynaud’s disease/Burger’s disease

In addition to the above list, Director General/Medical Commissioner are authorised to

sanction ESB for a maximum period upto 730 in cases of rare but treatable diseases or under
special circumstances, such as, adverse reaction to drugs which have not been included in the
above list, depending on the merits of each case, on the recommendations of RDMC/AMO or
either authorised officers runniong the medical scheme.

To be entitled to the Extended Sickness Benefit an Insured Persons should have been in
continuous employment for 2 years or more at the beginning of a spell of sickness in which
the disease is diagnosed and should also satisfy other contributory conditions.

ESB shall be payable for a period of 124 days initially and may be extended up to 309 days in
chronic suitable cases by Regional Dy. Medical Commissioner/Medical
Referee/Administrative Medical Officer/Chief Executive of the E.S.I. Scheme in the State or
his nominee on the report of the specialist(s).

Enhanced Sickness Benefits

It was introduced w.e.f 1.8.1976 as an incentive to IPs/IWs for undergoing Vasectomy

/Tubectomy. Insured Persons eligible to ordinary sickness benefit are paid enhanced sickness
benefit at double the rate of sickness benefit i.e., about full average daily wage for
undergoing sterilisation operations for family welfare. Duration of enhanced Sickness
Benefits is upto 7 days in the case of Vasectomy and upto 14 days in the case of the
Tubectomy from the date of operation or from the date of admission in the hospital as the
case may be. The period is extendable in case of post operative complications.

Maternity Benefit

Maternity Benefit is payable to an Insured Woman in the following cases subject to

contributory conditions:
Confinement-payable for a period of 12 weeks (84 days) on production of Form 21 and 23.
Miscarriage or Medical Termination of Pregnancy (MTP)-payable for 6 weeks (42 days)
from the date following miscarriage-on the basis of Form 20 and 23.
Sickness arising out of Pregnancy, Confinement, Premature birth-payable for a period not
exceeding one month-on the basis of Forms 8, 10 and 9.
In the event of the death of the Insured Woman during confinement leaving behind a child,
Maternity Benefit is payable to her nominee on production of Form 24 (B).
Maternity benefit rate is double the Standard Benefit Rate, or roughly equal to the average
daily wage.

Disablement Benefit

Temporary Disablement Benefit

TDB is payable to an employee who suffers employment injury (EI) or Occupational Disease
and is certified to be temporarily incapable to work. "Employment Injury" has been defined
under Section 2(8) of the Act, as a personal injury to an employee caused by accident or
occupational disease arising out of and in the course of his employment, being in insurable
employment, whether the accident occurs or the occupational disease is contracted within or
outside the territorial limits of India.
Certificates Required for TDB: Accident Report in form 16, Form 8, 9, 10, 11 and ESIC
Med.13
Eligibility for TDB: The benefit is not subject to any contributory conditions. An IP is
eligible from the day he joins the insurable employment. TDB Rate is 40% over and above
the normal sickness benefit rate. This works out to nearly 85% of the average daily wages.
Duration of TDB: There is no prescribed limit for the duration of TDB. This is payable as
long as temporary disablement lasts and significant improvement by treatment is possible. If
a Temporary Disablement spell lasts for less than 3 days (excluding day of accident), IP will
be paid sickness benefit, if otherwise eligible. A special point for IMOs/IMPs is that some IPs
may resist taking a Final Certificate especially before 3 days for fear of loss of TDB.

Permanent Disablement Benefit

(a) PDB is payable to an IP who suffers permanent residual disablement as a result of EI

(including Occupational Diseases) and results in loss of earning capacity. The proper
authority for assessing loss of earning capacity for injuries is the Medical Board and for
Occupational Diseases, Special Medical Board.
(b) The duration of PDB may be for the period given by Medical Board, if assessment is
provisional or for entire life if assessment is final.
(c) PDB Rate: The PDB rate is calculated as percentage of loss of earning capacity as
assessed by the Medical Board/MAT/EI Court in relation to TDB. List of injuries deemed to
result in permanent total disablement and percentage loss of earning capacity has been
previewed in 2nd Schedule to ESIC Act, 1948. Hence, the maximum rate of PDB can be equal
to the rate of TDB. PDB amount is revised by the ESIC from time to time to adjust for
inflation. The latest enhancement is with effect from 01.08.2002
(d) Commutation of PDB (Regulation 76-B): IP whose PDB has been assessed as final and
who has been awarded the same at the rate not exceeding Rs.1.50 per day may apply for
commutation of periodical payments of PDB into a lump-sum. When an application for
commutation is made within 6 months of the date of communication of Medical Board
decision periodical payments shall be commuted into a lump sum provided the total
commuted value does not exceed Rs.10,000 at the time of commencement of final award.
However, where such an application is made after expiry of 6 months, LO/RO will refer the
case to MR/PTMR to certify whether the IP has an average expectation of life for his age.
Such a certificate is issued by Medical Referee in the relevant place on RO/LO letter.
(e) Age of an IP will have to be proved to the satisfaction of the Corporation in all cases.
Medical Boards assess the age of IPs who are not able to produce satisfactory proof of age
and opinion of Medical Board shall be final in this regard.

Dependants’ Benefit

The Dependants’ benefit is payable to the dependants as per Section 52 of the Act read with
provision of 6(A) of Section 2 in cases where an IP dies as result of EI. The age of
dependants, has to be determined either by production of Documentary evidence as specified
in Regulation 80(2) or Age certified by Medical Officer In charge of Government Hospital or
Dispensary. The minimum rate of DB w.e.f 1.1.90 is Rs.14/- per day and these rates of the
DB are increased from time to time. The latest enhancement is with effect from 01.08.2002.

3.2 RESEARCH STUDIES

Sharma Arvind K (1998), in his article titled, “Factors affecting satisfaction from Employees’
State Insurance Corporation Hospital’s Service” discussed: The study revealed that the overall
satisfaction of beneficiaries with hospital outdoor patient department services was only 44 per
cent while their satisfaction with medical care at hospital outdoor patient department was
high 92 per cent. The overall satisfaction of beneficiaries from hospital indoor services was
80 per cent while it was 70 per cent in case of beneficiaries utilizing casualty services. The
study further revealed that the doctors were not satisfied with various facilities provided by
the hospitals and the administrators did not agree with all the problems stated by the
beneficiaries but they felt that a lot to be done. Considering various suggestions made by the
beneficiaries, doctors and administrators to improve the ESI hospital services, various
recommendations are made in this paper for appropriate action.

Sharma RK and Prasad PVV (1996), in their article titled, “A study on accident and
emergency services of ESI Hospital New Delhi. Health Population: Perspectives &
Issues” discussed: This paper attempts to analyse the changes in the organisational set-up and
management practices in order to improve the operational efficiency of A&E department of
ESI Hospital, New Delhi. There were a number of organisational flaws which need to be
corrected and most of the managerial practices have to be changed drastically to suit the
policies and standards spelt out by different committees from time to time. Both qualitative
and quantitative services can be improved within the available resources if appropriate
changes are brought out.

Latha, K and Anand TR (1988), in their article titled, “Evaluative study of different
contraceptive services rendered at various hospital in Delhi” discussed: Evaluates and
compares the contraceptive services rendered through three different hospitals viz. Lady
Hardinge Hospital, Kapoor Memorial Hospital and ESI Hospital run by different
organisations and catering to various categories of beneficiaries. Scrutinises the various
aspect of organisation and implementation of the programmes, and evaluates the
contraceptive acceptance, within the practical confines of time and manpower. Observes that
all the three hospitals had shortage of space and presents elaborately the qualitative
evaluative and quantitative.

Mathur N and Sharma KKR (1988), in their article titled, “Medico-Economic Implications
of Industrial Hand Injuries in India”, discussed: 625 five consecutive cases of industrial
hand injuries attending the Employee’s State Insurance Hospital, Jaipur, have been studied
from 1983 to October 1986. The incidence of injuries was 361 per 10,000 workers per year.
47% were due to entrapment of the hand in active machines, 25% occurred during lifting and
transportation of heavy objects and 12% while handling tools. The injuries resulted in
residual deficit in 55% of cases and were serious enough to require absence from work of
more than four weeks in 48% of cases. On an average 35 days were lost per injure worker.
The average economic loss per injured worker was Rs. 6900 (approximately £275) for
workers in the wage-range of Rs. 5400 to 19,200 (£216 to £768) per annum.
Ramani KV (2002), in her article titled, “E-governance for ESI Hospitals Costing of
Medical Services at ESI Hospital, Bapunagar” discussed, “The Employees State Insurance
Corporation (ESIC) of India is one of the largest social security organizations providing
medical insurance cover and delivering of medical care to 35 million beneficiaries through
140 hospitals and 1500 dispensaries. The objectives of this study are to understand the
costing of medical care at ESI hospitals and suggest systems for e-governance to facilitate the
coordination between ESIC, ESIS and the beneficiaries. Towards this, we selected a large
ESI hospital, namely, the ESI General Hospital at Bapunagar, Ahmedabad and gained very
useful insights about the systems currently in practice for offering medical benefits to the
insured persons and their beneficiaries. This working paper brings out our detailed analysis of
the working of ESI hospital, Bapunagar in delivering medical care under the ESI scheme.”

Kannan KP and Vijayamohanan Pillai N, in their article titled, “Social Security in India:
The Long Lane Treaded and the Longer Road Ahead towards Universalization”,
discussed: This paper is part of a large study on the Social Protection in Rural India and
China. In this paper, we attempt at a critical appraisal of the historical development and
experience of social security initiatives at the all India level. Based on the findings of the
review, we visualize a road map to a more comprehensive and participatory initiatives in
provision of social security by the state, while stressing the role of the civil society, non-
governmental organizations and mass organizations. It is also attempted to categorize the on-
going social security schemes according to the definitional framework of our study, that is, in
terms of the definitional division of social security into basic and contingent social security.
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

4.1 AGE

Age factor influence the type of benefits availed and the opinion and satisfaction on the ESI
scheme. Therefore, age of the respondents was studied and analyzed by classifying it into
three groups based on quartile division. Table no. 1 shows the age of the respondents.

TABLE 1
 DETAILS OF AGE GROUP

S.No Age (in years) Frequency Percent

1 Below 23 23 28.8
2 23-32 32 40.0
3 Above 32 25 31.3
4 Total 80 100.0

The Table 1 shows that the majority (40%) of the respondents was under 23 – 32 years age
group and the minority (28.8%) was the age of below 23. The obvious implication of this
finding is the dominance of youths in the company.

4.2 GENDER

Gender is another demographic factor which shows the variations and importance given by
the company in selecting their employees. Gender also influences the type of benefits availed
by the respondent. Table 2 shows the Gender of the respondent.

TABLE 2

GENDER OF THE RESPONDENT

 S.No Sex Frequency Percent
1 Male 19 23.8
2 Female 61 76.3
3 Total 80 100.0

The Table 2 showed that 76.3% of respondents were Female and 23.8% of respondents were
Male members. It implies that the female has the dominance in the company than the male
member.

4.3 MARITAL STATUS

The Marital Status is an important factor which influences the availing of different type of
ESI benefits. The Marital status of the respondent may determine the availing of Maternity
benefit which is a special benefit given only for married women. The Table 3 shows the
Marital Status of the respondents.

TABLE 3

MARITAL STATUS
 S.No Marital Status Frequency Percent
1 Married 25 31.3
2 Unmarried 55 68.8
3 Total 80 100.0

The Table 3 showed that 68.8% of respondents were unmarried and the remaining 31.3% of
respondents were married.

4.4 EDUCATION

Educational Qualification of the respondent has its impact on the opinion and satisfaction
about the ESI Schemes. It may also influence the usage of ESI benefits. The Table 4 shows
the Educational Qualification of the respondents.

TABLE 4

EDUCATIONAL QUALIFICATION
 S.No Education Frequency Percent
1 Below 7th 34 42.5
2 7th – 9th 19 23.8
3 Above 9th 27 33.8
4 Total 80 100.0

The above Table 4 shows that the majority (42.5%) of respondents studied only below 7th
standard and the minority (23.8%) of respondents completed their school education between
7th and 9th.

4.5 ESI DEDUCTION

ESI Contribution comprising of employers’ share 4.75% plus employees’ share 1.75% will be
calculated and paid by the employer every month. If the employee is drawing upto Rs. 70 as
daily average wage, he is exempt from the payment of his share of contribution. So, the
awareness about this deduction of amount for the ESI was studied among the respondents and
analyzed descriptively. The Table 5 shows the Awareness of the respondent about the ESI
deduction.

TABLE 5
 AWARENESS ABOUT DEDUCTION

S.No Awareness Frequency Percent

1 Aware 71 88.8
2 Unaware 9 11.3
3 Total 80 100.0

The above Table 5 shows that 88.8% of respondents were aware about the percentage of
amount deducted from their pay. The minority of (11.3%) respondents were not aware about
the percentage of amount deducted for the ESI scheme.

4.6 HEALTH CARE

Healthcare is an institution that provides preventive, curative, promotional or rehabilitative

health care services in a systematic way to individuals, families or communities. Hospitals
are distinguished from other types of medical facilities by their ability to admit and care for
inpatients whilst the others often are described as clinics. The different types of Hospitals
include General, District, Specialized, Teaching and Clinics. The general treatment place of
the respondent when they become sick are studied and descriptively analyzed. The Table 6
shows the place of the treatment of the respondent.

TABLE 6
 TREATMENT PLACE

S.No Treatment Place Frequency Percent

1 ESI Dispensary/Hospital 13 16.3
2 Government Hospital 22 27.5
3 Private Dispensary 23 28.8
4 Private Hospital 12 15.0
5 Others 10 12.5
6 Total 80 100.0

The Table 6 shows that the majority (28.8%) of respondents visited the Private Dispensary
when they become sick and 12.5% of respondents visited the other places for treatment. It
also shows that only 16.3% of respondents visit the ESI Dispensary/Hospital for treatment.
The 2nd top option for the place of treatment by the respondents is the Government Hospital
with 27.5% frequency.

4.7 ESI DISPENSARY/HOSPITAL

The respondent’s preference to go to the ESI Dispensary/Hospital for treatment and its reason
was studied and analyzed descriptively. The Table 7 shows the reason for going to ESI
Hospital/Dispensary and the Table 8 shows the reason for not going to ESI
Hospital/Dispensary.

TABLE 7

REASON FOR GOING TO ESI

 S.No Reason Frequency Percent
1 No Answer 67 83.8
2 Proper Facilities Available 0 0
3 Good Infrastructure 0 0
4 Good Treatment 0 0
5 Free Treatment 13 16.3
6 Total 80 100.0

The Table 7 shows that the majority (16.3%) of respondents are going to ESI
Dispensary/Hospital only for the reason of Free Treatment. No one is going to ESI Hospital
for its facilities, infrastructure and Good Treatment. It also shows that the remaining 83.8%
of respondents do not at all prefer to go to ESI Dispensary/Hospital for treatment.

TABLE 8

REASON FOR NOT GOING TO ESI

 S.No Reason Frequency Percent
1 No Answer 13 16.3
2 No Proper Facilities 18 22.5
3 Improper Treatment 30 37.5
4 Poor Infrastructure 9 11.3
5 Bribery Problem 4 5.0
6 Don't know where it is 3 3.8
7 Unaware about this 3 3.8
8 Total 80 100.0

The above Table 8 shows that the majority (37.5%) of respondents are not going to ESI
Dispensary/Hospital because of Improper Treatment. And the other major reasons next to this
are no proper facilities available in the ESI with 22.5% and poor infrastructure with 11.3%.
The minority (3.8%) of respondents don’t know where it is and unaware about the ESI
Dispensary/Hospital. The Table 8 also shows that only 16.3% of respondents are going to ESI
Dispensary/Hospital for treatment.

4.8 SERVICES AVAILED IN ESI

The Hospital services are classified into two categories. They are Outpatient Service and
Inpatient Service. Any type of hospital has these two types of services. Some patients go to a
hospital just for diagnosis, treatment or therapy and then leave ('outpatients') without staying
overnight; while others are 'admitted' and stay overnight or for several days or weeks or
months ('inpatients'). The type of services availed by the respondents in the ESI Hospital and
Other Hospital are studied and analyzed descriptively. The Table 9 shows the services availed
by the respondents.

TABLE 9

SERVICES AVAILED

Outpatient Service Inpatient Service

S.No Service
Frequency Percent Frequency Percent
1 Not Availed 0 0 35 43.8
2 ESI Dispensary/Hospital 13 16.3 12 15.0
3 Other Hospital 67 83.8 33 41.3
4 Total 80 100.0 80 100.0

The above Table 9 shows that the majority (83.8%) of respondents was going to other
hospitals for availing the Outpatient Service and the minority (16.3%) of respondents was
going to ESI Dispensary/Hospital for availing the Outpatient Service. It also shows that the
majority (43.8%) of respondents never availed the Inpatient Service in any type of hospital
and only 41.3% of respondents availed the Inpatient Service in the other hospital. The
minority (15%) of respondents availed the Inpatient Service in the ESI Hospital.

4.9 FACILITIES OF ESI HOSPITAL

The Hospital facilities are classified into two categories. They are Primary Facilities and
Super Speciality Facilities. Not all hospitals have the Super Speciality Facilities. The type of
facilities availed in the ESI Hospital and Other Hospital are studied and analyzed
descriptively. The Table 10 shows the facilities availed by the respondents.
 TABLE 10

FACILITIES AVAILED

Super Speciality
Primary Facilities
S.No Facilities Facilities
Frequency Percent Frequency Percent
1 Not Availed 0 0 71 88.8
2 ESI Dispensary/Hospital 13 16.3 2 2.5
3 Other Hospital 67 83.8 7 8.8
4 Total 80 100.0 80 100.0

The above Table 10 shows that the majority (83.8%) of respondents was going to other
hospitals for availing the Primary Facilities and the minority (16.3%) of respondents was
going to ESI Dispensary/Hospital for availing the Primary Facilities. It also shows that the
majority (88.8%) of respondents never availed the Super Speciality Facilities in any type of
hospital and only 8.8% of respondents availed the Super Speciality Facilities in the other
hospital. The minority (2.5%) of respondents availed the Super Speciality Facilities in the
ESI Hospital.

4.10 ESI BENEFITS AVAILED

The ESI Corporation provides six social security benefits, among that the major five ESI
benefits such as Medical Benefit, Sickness Benefit, Disablement Benefit, Dependants’
Benefit and Maternity Benefit are studied and analyzed descriptively. In addition to the six
social security benefits the scheme also provides some other need based benefits to insured
workers. But, that was not discussed in this study. The Table 11 shows the percentage of ESI
benefits availed by the respondents.

TABLE 11

PERCENTAGE OF ESI BENEFITS AVAILED

S.No ESI Benefits Availed Not Availed Total

1 Medical Benefit 14 (17.5%) 66 (82.5%) 80 (100%)
2 Sickness Benefit 69 (86.3%) 11 (13.8%) 80 (100%)
3 Disablement Benefit 0 (0%) 80 (100%) 80 (100%)
4 Dependants Benefit 47 (58.8%) 33 (41.3%) 80 (100%)
5 Maternity Benefit 1 (1.3%) 79 (98.8%) 80 (100%)
6 No Benefits Availed 9 (11.3%) 71 (68.7%) 80 (100%)

The above Table 11 shows that the majority (86.3%) of respondents availed the Sickness
Benefit followed by 58.8% of respondents availed the Dependants Benefit and 17.5% of
respondents availed the Medical Benefit. But only 1.3% of respondents availed the Maternity
Benefit from ESI. The table also shows that no one availed the Disablement Benefit ever in
their ESI membership period.

4.11 CHI-SQUARE TEST FOR GOODNESS OF FIT

To test the distribution of benefits availed by the respondent, Chi-Square test for goodness of
fit was used. The Hypothesis was formulated as follows.

H0: Benefits are equally distributed

H1: Benefits are not equally distributed
The result of Chi-Square Test is given in Table 12.

TABLE 12

CHI-SQUARE TEST FOR NUMBER OF BENEFITS AVAILED

S.No No. of benefits No. of respondents Observed Expected

p value
availed frequency (O) frequency (E)
1 No Benefit 9 20.0
2 One Benefit 25 20.0
3 Two Benefits 32 20.0 0.001**
4 Three Benefits 14 20.0
5 Total 80
Note: ** denotes significance at 1% level

Since p value is less than 0.01 the null hypothesis is rejected at 1% level of significance.
Hence, the number of respondents were not availed the benefits in equally distributed form.

4.12 OPINION ABOUT ESI BENEFITS

The respondent’s belief about the major five ESI Benefits are studied and analyzed
descriptively which is not necessarily based on fact or knowledge. The five benefits analyzed
are Medical Benefit, Sickness Benefit, Disablement Benefit, Dependants’ Benefit and
Maternity Benefit. It was studied in a five scale basis. The Table 13 shows the percentage of
opinion about the ESI Benefits.
 TABLE 13

PERCENTAGE OF OPINION ABOUT ESI BENEFITS

S.No Opinion Medical Sickness Maternity Disablement Dependants

1 Poor 0 (0%) 0 (0%) 0 (0%) 1 (1.3%) 1 (1.3%)
2 Fair 5 (6.3%) 7 (8.8%) 15 (18.8%) 18 (22.5%) 15 (18.8%)
3 Good 29 (36.3%) 27 (33.8%) 36 (45.0%) 37 (46.3%) 33 (41.3%)
4 Very Good 35 (43.8%) 35 (43.8%) 21 (26.3%) 19 (23.8%) 25 (31.3%)
5 Excellent 11 (13.8%) 11 (13.8%) 8 (10.0%) 5 (6.3%) 6 (7.5%)
6 Total (100.0%) (100.0%) (100.0%) (100.0%) (100.0%)

The Table 13 shows that the majority (43.8%) of respondent’s opinion were Very Good about
the Medical Benefit and the Sickness Benefit. The majority (45%) of respondent’s opinion
were Good about the Maternity Benefit. The majority (46.3%) of respondent’s opinion was
Good about the Disablement Benefit and the majority (41.3%) of respondents opinion were
Good about the Dependants’ Benefit. The table also shows that the minority (1.3%) of
respondent’s opinion were Poor about the Dependants’ Benefit and Disablement Benefit. And
no one rated the Medical Benefit, Sickness Benefit and Maternity Benefit as poor.

4.13 LEVEL OF OPINION WITH RESPECT TO THE PHYSICAL PERFORMANCE

Young adulthood can be considered the healthiest time of life and young adults are generally
in good health, subject neither to disease nor the problems of senescence. Biological function
and physical performance reach their peak from 20-35 years of age. Flexibility also decreases
with age throughout adulthood. Therefore, based on the physical performance, the
respondent’s age was grouped into two categories. They are Lower Physical Performance for
the age above 35 and Higher Physical Performance for below 35. To test the significant
difference between the physical performances with regard to the level of opinion, t-test for
difference of two mean was applied. The Hypothesis was set as follows.

H0: There is no significant difference between the physical performances with regard
to the level of opinion
H1: There is a significant difference between the physical performances with regard
to the level of opinion

The result of Independent Sample t-Test is given in Table 14

TABLE 14

t - TEST FOR LEVEL OF OPINION AND PHYSICAL PERFORMANCE

S.No Physical Performance N Mean Std. Deviation t value p value

1 Higher 70 19.93 3.987
-1.364 .176
2 Lower 10 21.90 6.045

Since p value is greater than 0.05 the null hypothesis is accepted at 5% level of significance
on physical performance. Hence, there is no significant difference between the physical
performances with regard to the level of opinion.

4.14 TEST OF OPINION ABOUT THE ESI BENEFITS

To test the opinion level of the respondents about the ESI benefits, t-Test for Single Mean
was applied. The Hypothesis was formulated as follows.

H0: The opinion level about the ESI benefits is equal to average level
H1: The opinion level about the ESI benefits is not equal to average level
The result of t-Test for the different ESI benefits is given in Table 15

TABLE 15
ONE SAMPLE t-TEST FOR THE OPINION ON ESI BENEFITS

Test value = 3
S.No Test Variable N Mean Std. Deviation t value df p value
1 Medical Benefit 80 3.65 0.797 7.293 79 0.000**
2 Sickness Benefit 80 3.63 0.832 6.715 79 0.000**
3 Maternity Benefit 80 3.28 0.886 2.778 79 0.007**
4 Disablement Benefit 80 3.11 0.871 1.155 79 0.252
5 Dependants’ Benefit 80 3.25 0.893 2.504 79 0.014*
Note: ** denotes significance at 1% level, * denotes significance at 5% level

Since p value is less than 0.01 for Medical, Sickness and Maternity Benefit, the null
hypothesis is rejected at 1% level of significance. Hence it is concluded that the opinion level
for the Medical, Sickness and Maternity Benefits are not equal to average level.
Since p value is less than 0.05 for Dependants’ Benefit, the null hypothesis is rejected at 5%
level of significance. Hence it is concluded that the opinion level for the Dependants’ Benefit
is not equal to average level.
Since p value is greater than 0.05 for Disablement Benefit, the null hypothesis is accepted at
5% level of significance. Hence it is concluded that the opinion level for the Disablement
Benefit is equal to average level.
The Table 15 shows that the mean value for the opinion on different benefits was above the
test value 3. It suggests that the respondent’s opinion was better about the ESI benefits

4.15 ACCIDENTS AT WORK

Accidents are common in a manufacturing company. But, the intense and frequency of the
accident at work differs from the type of manufacturing industry and the type of work.
Accidents at work have its impact over the usage of specific social security benefits provided
by the ESIC. The respondents have met with any accidents at work are studied and analyzed
descriptively. The intense of accident is classified into two categories for the study. They are
Minor Accident and Major Accident. The Table 16 shows the intense and the frequency of
the accidents at work.

TABLE 16

ACCIDENTS AT WORK

S.No Accident Often Sometimes Never Total

1 Minor 0 (0%) 22 (27.5%) 58 (72.5%) 80 (100%)
2 Major 0 (0%) 0 (0%) 0 (0%) 0 (0%)

The Table 16 shows that no one met with any accident at work. All the respondents have
sometime or the other met with the minor accident at work.

4.16 ACCIDENT TREATED PLACE

If a respondent met with any accident at work then the accident must be treated immediately.
Depend upon the severity of the accident; the immediate treatment place will be selected by
the employer. So, the place of treatment was studied with five different classifications and
analyzed descriptively. The Table 17 shows the accident treated place.
 TABLE 17

ACCIDENT TREATED PLACE

S.No Treatment Place Frequency Percent

1 Accidents Never Occurred 58 72.5
2 ESI Dispensary/Hospital 0 0
3 Government Hospital 0 0
4 Private Hospital 2 2.5
5 Company Referred Hospital 18 22.5
6 Others 2 2.5
7 Total 80 100.0

The above Table 17 shows that the majority (22.5%) of respondents who met with an
accident was treated at the Company Referred Hospital and only 2.5% of respondents were
treated at the Private Hospital and Others. It also shows that no one is treated at ESI
Dispensary/Hospital or Government Hospital for the accident occurred at work. The 72.5%
of respondents were never met with any accident at work.

4.17 MEDICAL PROBLEMS

The ESI Scheme provides full medical care in the form of medical attendance, treatment,
drugs and injections, specialist consultation and hospitalization to insured persons and also to
members of their families where the facility for Specialist consultation, hospitalization has
been extended to the families. The medical problems which become common among the
people of India such as Diabetic, Blood Pressure, and Heart Problem are studied among the
respondents and analyzed descriptively. The Table 18 shows the medical problems faced by
the respondents.

TABLE 18

MEDICAL PROBLEMS FACED

S.No Medical Problem Present Not Present Total

1 Diabetic 10 (12.5%) 70 (87.5%) 80 (100%)
2 Blood Pressure 17 (21.3%) 63 (78.8%) 80 (100%)
3 Heart Problem 9 (11.3%) 71 (88.8%) 80 (100%)
4 Others 16 (20%) 64 (80%) 80 (100%)
5 No Problem 0 (0%) 45 (56.3%) 45 (56.3%)

The Table 18 shows that the majority (21.3%) of respondents is facing the Blood Pressure
problem followed by 20% of respondents are facing the other medical problems, 12.5% of
respondents are facing the Diabetic problem and the minority of 11.3% of respondents are
facing the Heart problem. The above Table 18 shows that the majority (56.3%) of
respondents never have any medical problems.

4.18 SATISFACTION WITH THE ESI FACILITIES

The satisfaction of respondents with the facilities provided by the ESI Dispensaries/Hospitals
are studied and analyzed descriptively. The Table 19 shows the Level of Satisfaction on the
ESI Hospital facilities.

TABLE 19
 LEVEL OF SATISFACTION ON ESI FACILITIES

S.No Satisfaction Level Frequency Percent

1 Highly Dissatisfied 12 15.0
2 Dissatisfied 35 43.8
3 Neutral 15 18.8
4 Satisfied 18 22.5
5 Highly Satisfied 0 0
6 Total 80 100.0

The above Table 19 shows that the majority (43.8%) of respondents is dissatisfied with the
ESI Facilities provided by the ESI Dispensaries/Hospitals followed by only 22.5% of
respondents are satisfied with the ESI Facilities, 18.8% of respondents remain Neutral in the
level of satisfaction and 15% of respondents are Highly Dissatisfied with the ESI
Dispensaries/Hospitals. It also shows that no respondent is Highly Satisfied with the ESI
Facilities.

4.19 COMPANY INVOLVEMENT

The involvement of the company management in helping out the respondents to claim the
ESI Benefits are studied and analyzed descriptively. The Table 20 shows the Company
Managements involvement in helping the respondents.

TABLE 20
 COMPANY INVOLVEMENT

S.No Company Involvement Frequency Percent

1 Very Involved 5 6.3
2 Involved 37 46.3
3 Somewhat Involved 34 42.5
4 Not Involved 4 5.0
5 Not at all involved 0 0
6 Total 80 100.0

The above Table 20 shows that the majority (46.3%) of respondents consider that the
company is involved in helping out to claim the benefits followed by 42.5% of respondents
consider that the company is somewhat involved, 6.3% of respondents consider that the
company is very much involved and the least 5% of respondents consider that the company is
not involved in claiming the benefits. The table also shows that no one considers that the
company not at all involved in helping out to claim the benefits.

4.20 COMPANY SUPPORT FOR ESI

The Company Managements clear sense of direction to avail the ESI benefits are studied and
analyzed descriptively. The Table 21 shows the Level of Company Support.

TABLE 21
 LEVEL OF COMPANY SUPPORT

S.No Company Support Frequency Percent

1 Strongly Disagree 0 0
2 Disagree 7 8.8
3 Neutral 16 20.0
4 Agree 45 56.3
5 Strongly Agree 12 15.0
6 Total 80 100.0

The above Table 21 shows that the majority (56.3%) of respondents agree that the company
provides a clear sense of direction to avail the benefits and the minority 8.8% of respondents
disagree with that. It also shows that the 20% of respondents remain neutral in commenting
about the company support and only 15% of respondents strongly agree the company support.
It shows that no respondent strongly disagrees the company support.

4.21 UNDERSTANDING THE ESI SCHEME

The level of difficulties faced in understanding the ESI benefits programme was studied
among the respondents and analyzed descriptively. The Table 22 shows the respondents
Level of Difficulty in understanding the ESI Scheme.
 TABLE 22

LEVEL OF DIFFICULTY IN UNDERSTANDING ESI

S.No Difficulties Frequency Percent

1 Very Easy 0 0
2 Easy 16 20.0
3 Neutral 41 51.3
4 Difficult 23 28.8
5 Very Difficult 0 0
6 Total 80 100.0

The Table 22 shows that the majority (51.3%) of respondents remain neutral about the level
of difficulties they face in understanding the ESI Scheme followed by 28.8% of respondents
felt it was difficult and 20% of respondents felt it was easy to understand the ESI. It also
shows that no respondent felt very easy and very difficult in understanding the ESI benefits
programme.

4.22 NEW AMENDMENTS IN ESI SCHEME

The New Amendments in the ESI Scheme will come into effect periodically and it was
completely managed by the ESIC. Therefore, the Information on the new ESI Amendments
are passed to the respondents by the company are studied and analyzed descriptively. The
Table 23 shows the awareness created by the company about the new ESI Scheme.
 TABLE 23

AWARENESS ON NEW ESI AMENDMENTS

S.No ESI Amendments Frequency Percent

1 Informed 16 20.0
2 Not Informed 64 80.0
3 Total 80 100.0

The Table 23 shows that the majority (80%) of respondents was not informed about the new
ESI amendments by the company and the minority (20%) of respondents was informed about
the new ESI amendments.

4.23 AWARENESS ABOUT THE ONLINE FACILITY

The awareness about the online facility of ESI Scheme among the respondents are studied
and analyzed descriptively.

TABLE 24
 AWARENESS ABOUT THE ONLINE FACILITY

S.No Awareness Frequency Percent

1 Aware 0 0
2 Not Aware 80 100.0

The Table 24 shows that no respondent is aware about the online facility of the ESI Scheme.

4.24 COMPETENCY TO USE ONLINE FACILITY

The Level of competency to use the online facility among the respondents are studied and
analyzed descriptively. The Table 25 shows the Level of Competency of the respondent to
use the online facility of the ESI Scheme.
 TABLE 25

LEVEL OF COMPETENCY

S.No Competency Level Frequency Percent

1 Highly Competent 0 0
2 Not Competent 59 73.8
3 Moderately Competent 21 26.3
4 Total 80 100.0

The Table 25 shows that the majority (73.8%) of respondents was not competent to use the
online facility and the minority (26.3%) of respondents responded that they were moderately
competent to use the online facility. It also shows that no respondent is highly competent to
use the online facility of the ESI Scheme.

4.25 OVERALL OPINION ABOUT THE ESI SCHEME

The overall opinion about the ESI Scheme among the respondents are studied and analyzed
descriptively. The Table 26 shows the respondents overall opinion about the ESI Scheme.

TABLE 26
 OVERALL OPINION

S.No Opinion Frequency Percent

1 Excellent 11 13.8
2 Very Good 17 21.3
3 Good 34 42.5
4 Fair 18 22.5
5 Poor 0 0
6 Total 80 100.0

The Table 26 shows that the majority (42.5%) of respondents overall opinion were Good
about the ESI Scheme followed by 22.5% of respondents overall opinion were Fair, 21.3% of
respondents overall opinion were Very Good and the minority (13.8%) of respondents overall
opinion were Excellent about the ESI Scheme. It also shows that no respondent rated the
overall opinion as poor.

4.26 TEST OF SIGNIFICANT RELATIONSHIP BETWEEN THE SATISFACTION

AND THE OPINION OF THE RESPONDENT

To test the relationship between the overall satisfaction and opinion of the respondent with
regard to the ESI Scheme, Correlation test was used. So, the test variables were the overall
satisfaction and the overall opinion. Correlation test was applied to establish the qualitative
relationship between these two variables and thereby it is possible to find the direction of
relationship between the variables.

H0: There is no relationship between the overall satisfaction with regard to the ESI
 Scheme and the overall opinion
H1: There is a relationship between the overall satisfaction with regard to the ESI
Scheme and the overall opinion

The result of Correlation Analysis is given in Table 27.

TABLE 27
CORRELATION BETWEEN OVERALL SATISFACTION AND OPINION

S.No Variable Correlation Value (Pearson Correlation) p value

1 Overall Satisfaction
0.287** 0.010
2 Overall Opinion
** Correlation is significant at the 0.01 level (2-tailed).

Since p value is 0.01, the null hypothesis is rejected at 1% level of significance. Hence, there
is a relationship between the overall satisfaction with regard to the ESI Scheme and the
overall opinion. The Correlation square between the overall satisfaction with regard to the
ESI Scheme and the overall opinion is 0.287 which indicates 28.7% positive relationship
between them.

Since the relationship is positive, if the Overall Satisfaction of the ESI Scheme increases then
the Opinion about the ESI Scheme also increases.

4.27 TEST OF SIGNIFICANT RELATIONSHIP BETWEEN THE ORGANIZATION

SUPPORT AND THE SATISFACTION OF THE RESPONDENT

To test the relationship between the organization support and the overall satisfaction of the
respondent with regard to the ESI Scheme, Correlation test was used. So, the test variables
were the organization support and overall satisfaction. Correlation test was applied to
establish the qualitative relationship between these two variables and thereby it is possible to
find the direction of relationship between the variables.

H0: There is no relationship between the organization support and the overall
 satisfaction with regard to the ESI Scheme
H1: There is a relationship between the organization support and the overall
satisfaction with regard to the ESI Scheme

The result of Correlation Analysis is given in Table 28.

TABLE 28
CORRELATION BETWEEN ORGANIZATION SUPPORT AND THE OVERALL
SATISFACTION

S.No Variable Correlation Value (Pearson Correlation) p value

1 Organization Support
0.520** 0.000
2 Overall Satisfaction
** Correlation is significant at the 0.01 level (2-tailed).

Since p value is less than 0.01, the null hypothesis is rejected at 1% level of significance.
Hence, there is a relationship between the organization support and the overall satisfaction
with regard to the ESI Scheme. The Correlation square between the overall satisfaction with
regard to the ESI Scheme and the organization support is 0.520 which indicates 52% positive
relationship between them.

Since the relationship is positive, if the organization support increases then the Overall
Satisfaction about the ESI Scheme also increases.

4.28 SATISFACTION ON COMPANY BENEFITS

The level of satisfaction on the benefits received by the respondent from the company was
studied and analyzed descriptively. The Table 29 shows the Level of Satisfaction on
Company Benefits.

TABLE 29
 LEVEL OF SATISFACTION ON COMPANY BENEFITS

S.No Satisfaction Level Frequency Percent

1 Highly Satisfied 13 16.3
2 Satisfied 38 47.5
3 Neutral 20 25.0
4 Dissatisfied 9 11.3
5 Highly Dissatisfied 0 0
6 Total 80 100.0

The Table 29 shows that the majority (47.5%) of respondents are satisfied with the company
benefits followed by 25% of respondents remains neutral, 16.3% of respondents are highly
satisfied and only 11.3% of respondents are dissatisfied with the company benefits. It also
shows that no respondent is highly dissatisfied with the company benefits.

4.29 ONE WAY ANOVA TEST FOR FINDING THE SIGNIFICANT DIFFERENCE
BETWEEN THE SATISFACTION AND AGE GROUP

To test the significant difference between age group with regard to the satisfaction with the
ESI Scheme, one way ANOVA test also known as F test was used.

H0: There is no significant difference between age group with regard to the
satisfaction with the ESI Scheme
H1: There is a significant difference between age group with regard to the satisfaction
with the ESI Scheme
The result of the ANOVA analysis is given in Table 30.
 TABLE 30 ANOVA – TOTAL SATISFACTION AND AGE GROUP
S.No Groups Sum of Squares df Mean Square f value p value
1 Between Groups 10.626 2 5.313
2 Within Groups 128.924 77 1.674 3.173 .047*
3 Total 139.550 79
Note: * denotes significance at 5% level

Since p value is less than 0.05 the null hypothesis is rejected at 5% level of significance on
age group. Hence, there is a significant difference between age group with regard to the
satisfaction with the ESI Scheme. Hence, descriptive statistics was used to find the
satisfaction of the ESI Scheme best described by the respondents. The Table 31 shows the
Descriptive Statistics.
TABLE 31 DESCRIPTIVE STATISTICS FOR AGE GROUP

S.No Age Group N Mean Std. Deviation

1 Below 23 23 6.13 0.968

2 23 – 32 32 5.81 1.401
3 Above 32 25 6.68 1.406
4 Total 80 6.18 1.329
The Table 31 indicates that the variable ’above 32’ has the highest mean value of 6.68. This
suggests that the respondents of age group above 32 are satisfied with the ESI Schemes than
other age group respondents.

4.30 LEVEL OF SATISFACTION WITH RESPECT TO THE AGE GROUP

To test the association between the age group and the level of satisfaction, Chi-Square test
was applied.

H0: There is no significant association between the Age Group and the Level of
Satisfaction
H1: There is a significant association between the Age Group and the Level of
Satisfaction

The result of the Chi-Square Cross tabulation Analysis is given in Table 32

 TABLE 32
CROSSTABS BETWEEN AGE GROUP AND SATISFACTION LEVEL

Chi-Square
Level of Satisfaction Total p value
S.No Age Group Frequency Value
Low Moderate High
Observed 5 11 7 23
1 Below 23
Expected 7.8 6.0 9.2 23.0
Observed 15 5 12 32
2 23 – 32
Expected 10.8 8.4 12.8 32.0
10.165 0.038*
Observed 7 5 13 25
3 Above 32
Expected 8.4 6.6 10.0 25.0
Observed 27 21 32 80
4 Total
Expected 27.0 21.0 32.0 80.0
0 cells (.0%) have expected count less than 5. The minimum expected count is 6.04.

Since p value is lesser than 0.05 the null hypothesis is rejected at 5% level of significance.
Hence, there is a significant association between the Age Group and the Level of Satisfaction.

4.31 PACKAGE AND EMPLOYEE MOTIVATION

The Level of motivation from the benefits package received by the respondent from the
company are studied and analyzed descriptively. The Table 33 shows the level of motivation
gained by the respondent from the benefits package.

TABLE 33

LEVEL OF MOTIVATION
 S.No Motivation Level Frequency Percent
1 Not Motivated 16 20.0
2 Moderately Motivated 39 48.8
3 Highly Motivated 25 31.3
4 Total 80 100.0

The Table 33 shows that the majority (48.8%) of respondents is moderately motivated with
the benefits package followed by 31.3% of respondents are highly motivated and the minority
(20%) of respondents are not motivated with the benefits package.

4.32 ONE WAY ANOVA TEST FOR FINDING THE SIGNIFICANT DIFFERENCE
BETWEEN THE SATISFACTION AND MOTIVATION

To test the significant difference between motivation with regard to the satisfaction with the
ESI Scheme, one way ANOVA test also known as F test was used.

H0: There is no significant difference between motivation with regard to the

satisfaction with the ESI Scheme
H1: There is a significant difference between motivation with regard to the
satisfaction with the ESI Scheme
The result of the ANOVA analysis is given in Table 34.
TABLE 34 ANOVA – TOTAL SATISFACTION AND MOTIVATION
S.No Groups Sum of Squares df Mean Square f value p value
1 Between Groups 36.573 2 18.287
2 Within Groups 102.977 77 1.337 13.674 0.000**
3 Total 139.550 79
Note: ** denotes significance at 1% level

Since p value is less than 0.01 the null hypothesis is rejected at 1% level of significance on
motivation. Hence, there is a significant difference between motivation with regard to the
satisfaction with the ESI Scheme. Hence, descriptive statistics was used to find the
satisfaction of the ESI Scheme best described by the respondents. The Table 35 shows the
Descriptive Statistics.
TABLE 35 DESCRIPTIVE STATISTICS FOR MOTIVATION

S.No Motivation N Mean Std. Deviation

1 Not Motivated 16 4.88 0.619
2 Moderately Motivated 39 6.33 1.177
3 Highly Motivated 25 6.76 1.363
4 Total 80 6.18 1.329
The Table 35 indicates that the variable ’Highly Motivated’ has the highest mean value of
6.76. This suggests that the respondents who are Highly Motivated are satisfied with the ESI
Schemes than other respondents.

CHAPTER 5
FINDINGS, SUGGESTION AND CONCLUSION

5.1 FINDINGS

1. The majority of the respondents (40%) were under 23 – 32 years age group. The

obvious implication of this finding is the dominance of youths in the company.

2. It was found that the 76.3% of respondents were female and 23.8% of respondents

were male members. It implies that the female has the dominance in the company

than the male member.

3. Most of the respondents (68.8%) were unmarried.

4. The majority of respondents (42.5%) studied only below 7th standard.

5. Most of the respondents (88.8%) were aware about the deduction for the ESI scheme.

6. When the respondents become sick, majority of them (28.8%) visited the Private

Dispensary.

7. The majority of respondents (16.3%) were going to ESI Dispensary/Hospital only for

the reason of Free Treatment. It was found that the 83.8% of respondents do not at all

prefer to go to ESI Dispensary/Hospital for treatment.

8. The majority of respondents (37.5%) were not going to ESI Dispensary/Hospital

because of Improper Treatment. And the other major reasons next to this were no

proper facilities available in the ESI (22.5% respondents) and poor infrastructure

(11.3% respondents).

9. The majority of respondents (83.8%) were going to other hospitals for availing the

Outpatient Service and the 43.8% of the respondents never availed the Inpatient

Service in any type of hospital.

10. The majority of respondents (83.8%) were going to other hospitals for availing the

Primary Facilities. It was found that 88.8% of respondents never availed the Super

Speciality Facilities in any type of hospital.

11. Sickness Benefit was availed by 86.3% of respondents, Dependants Benefit was

availed by 58.8% of respondents and Medical Benefit was availed by 17.5% of

respondents. But only 1.3% of respondents availed the Maternity Benefit from ESI. It

was also found that no one availed the Disablement Benefit in their ESI membership

period. The Chi-Square test for goodness of fit it was found that the number of

respondents was not availed the benefits in equally distributed form. (=

12. The majority of respondents stated that the Medical Benefit (43.8 % respondents) and

Sickness Benefit (43.8% respondents) was very good. Others stated that Maternity

Benefit (45% respondents), Disablement Benefit (46.3% respondents) and

Dependants’ Benefit (41.3% respondents) were good.

The Independent sample t-test was conducted based on age groups above 35 years and

below 35 years. It was found that there is no significant difference between the two

groups regarding the level of opinion regarding all the benefits.

One Sample t-test revealed that the opinion level is not equal to average level for the

following benefits: Medical (t=7.293, p=0.000), Sickness (t=6.715, p=0.000),

Maternity Benefits (t=2.778, p= 0.007) and Dependants’ Benefit (t= 2.504, p=0.014)

While the opinion level for the Disablement Benefit (t =1.155, p= 0.252) is equal to

average level, the respondent’s overall opinion was better about the ESI benefits.

13. It was found that no one met with any accident at work. All the respondents have

sometime or the other met with the minor accident at work.

14. The majority of respondents (22.5%) who met with an accident were treated at the

Company Referred Hospital and only 2.5% of respondents were treated at the Private

or other hospitals. It also shows that no one is treated at ESI Dispensary/Hospital or

Government Hospital for the accidents that occurred at work. However, 72.5% of the

respondents were never met with any accident at work.

15. While 21.3% respondents faced Blood Pressure problem, majority of the respondents

(56.3%) never has any medical problems.

16. The majority of respondents (43.8%) were dissatisfied with the ESI Facilities

provided by the ESI Dispensaries/Hospitals while only 22.5% of respondents were

satisfied with the ESI Facilities

17. The majority of respondents (46.3%) considered that the company helped them to
 claim the benefits.

18. The majority of respondents (56.3%) agreed that the company provided a clear sense

of direction to avail the benefits.

19. The majority of respondents (51.3%) remained neutral about the level of difficulties

they faced in understanding the ESI Scheme.

20. The majority of respondents (80%) were not informed about the new ESI amendments

by the company.

21. It was found that no respondent was aware about the online facility of the ESI

Scheme.

22. The majority of respondents (73.8%) were not competent to use the online facility.

23. The overall opinion about the ESI Scheme was good according to the majority of

respondents (42.5%).

The Correlation test revealed a positive relationship between the overall perception

and the overall satisfaction with regard to the ESI Scheme at 1 percent level of

significance (R = 0.287, p = 0.010). It also indicates 28.7% positive relationship

between them.

The Correlation test between the organization support and the overall satisfaction with

regard to the ESI Scheme revealed that there is positive correlation at 1 percent level

of significance (R = 0.520, p = 0.000). It also indicates 52% positive relationship

between them.

24. The majority of respondents (47.5%) were satisfied with the company benefits.

From the One Way ANOVA test it was found that there is a significant difference

between age group with regard to the satisfaction with the ESI Scheme at 5 percent

level of significance (F = 3.173, p=0.047). It was also found that the respondents

above 32 years were more satisfied (mean = 6.68) with the ESI Schemes than the
 others.

The Chi-Square test revealed that there is a significant association between the Age

Group and the Level of Satisfaction at 5 percent level of significance (chi square =

10.165, p = 0.038).

25. The majority 48.8% of respondents is moderately motivated with the benefits

package.

From the One Way ANOVA test it was found that there is a significant difference

between benefits of ESI package and satisfaction with ESI Scheme at 1 percent level

of significance (F=13.674, p=0.000). It was also found that the respondents who were

Highly Motivated with the package were more satisfied (mean = 6.76) with the ESI

Schemes than other respondents.

5.2 SUGGESTIONS

1. All the activities of a man are influenced by the state of his health. To care for the
health of the industrial workers and their immediate dependants, Government of India
introduced the ESI Scheme and started many ESI Dispensaries and Hospitals to
medically assist them. But, the study revealed that not even 50% of the respondents
were going to ESI Dispensary/Hospital for medical treatment due to improper
treatment, improper facilities and poor infrastructure. So, it is recommended to
improve the quality of the treatment by appointing qualified Doctors and upgrade the
facilities of the ESI Dispensaries/Hospitals. The Contributions made by the employer
and the employee for ESI benefit should be properly used by the ESIC to provide
these improvements.
 2. The new ESI Amendments were not known to more than 75% of the respondents of
the study. The Company being one of the partners of the ESI scheme, it is the
responsibility of the company to properly communicate about the new Amendments
of the ESI Scheme to their workers. Since workers of the shoe manufacturing
companies are prone to serious occupational hazards, the role of the company in
promoting health is of paramount importance.

3. The opinion of the people can be influenced by the Public Relations and the media.
The ESI Corporation should use a wide variety of advertising techniques to get their
message out and change the minds of the people. Mass media can help the ESIC to
create a more positive opinion about the ESI Scheme from the contributors.

5.3 CONCLUSION

After the completion of this project, the researcher has gained more experience in conducting
field research. During survey, the researcher met a large number of people with different
opinion and behavior. It was a great opportunity to learn about the ESI Schemes and the
opinion of the beneficiaries. It is concluded from this study that the ESI Dispensaries/
Hospitals were not functioning upto the satisfaction of the insured persons. This study also
reveals the scope to improve its functions and turn into a highly trustful and reliable
Corporation, implementing better services by incorporating the suggestions.
 A Study on the Opinion and Satisfaction of employees on ESI Schemes in
Shoe manufacturing companies at Pamal, Chennai

CONFIDENTIAL QUESTIONNAIRE FOR STUDY PURPOSE ONLY

Employee Name: Age: Sex:

Marital status: Education:
Experience a) Within this company – No. of Dependants a) Adult –
b) Outside this company – b) Children –

1. How long are you a member of the ESI scheme? _____________

2. How much amount is deducted for this benefit? _____________

3. Where do you go generally when you are sick?
a) ESI Dispensary/Hospital (Specify the Location)
b) Government Hospital
c) Private Dispensary
d) Private Hospital
e) Others

4. If you don’t go to ESI Dispensary/Hospital, why?

a) No Proper Facilities
b) Improper Treatment
c) Poor Infrastructure
d) Bribery Problem
e) Long Distance
f) Don’t know where it is
g) Unaware about this

If you go to ESI Dispensary/Hospital, why?

a) Proper Facilities available
b) Good Treatment
c) Good Infrastructure
d) Free Treatment

5. Have you availed?

Service ESI Dispensary/Hospital Other Hospital
Outpatient Service
Inpatient Service

6. Have you availed?

Facilities ESI Dispensary/Hospital Other Hospital
Primary Facilities
Super Speciality Facilities

7. What are the ESI benefits you have availed?

□ Medical Benefit
□ Sickness Benefit
□ Maternity Benefit (Only for Women)
□ Disablement Benefit
□ Dependants’ Benefit

8. What is your opinion about the ESI benefits?

Benefit Excellent Very Good Good Fair Poor
Medical Benefit
Sickness Benefit
Maternity Benefit
Disablement Benefit
Dependants’ Benefit

9 (a) Have you met with any accidents at work?

a) Minor – Often / Sometimes / Never
b) Major – (Specify) _______

9 (b) Where were you treated?

a) ESI Dispensary/Hospital
b) Government Hospital
c) Private Hospital
d) Company Referred Hospital
e) Others (Specify)

10. What medical problems do you face?

□ Diabetic
□ BP
□ Heart problem
□ Others (specify)

11. Are you satisfied with the facilities provided by the ESI Dispensaries/Hospitals?
a) Highly Satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
e) Highly Dissatisfied

12. How involved do you consider the company in helping out to claim your benefits?
a) Very Involved
b) Involved
c) Somewhat Involved
d) Not Involved
e) Not at all involved

13. The Company Management provides a clear sense of direction to avail the benefits.
a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree

14. Do you find any difficulties in understanding the ESI benefits programme?
 a) Highly Difficult
b) Difficult
c) Neutral
d) Easy
e) Very Easy

15. Are the new ESI amendments informed to you by the company?
a) Yes
b) No

16. Are you aware about the online facility of ESI Scheme?
a) Yes
b) No

17. How competent are you to use the online facility?

a) Highly competent
b) Moderately competent
c) Not competent

18. What is your overall opinion about the ESI Scheme?

a) Excellent
b) Very Good
c) Good
d) Fair
e) Poor

19. From what you know, the general benefits provided to you by this company are as good
as or better than the benefits in other organizations.
a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree

20. Overall, How do you feel about the benefits you receive from this company?
f) Highly Satisfied
g) Satisfied
h) Neutral
i) Dissatisfied
j) Highly Dissatisfied

21. Are you motivated because of your benefits package?

 a) Highly Motivated
b) Moderately Motivated
c) Not Motivated

22. Do you have any suggestions for improving or changing the existing ESI Scheme?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

BIBLIOGRAPHY

BOOKS:

1. Ravilochanan P, “Research Methodology”, Chennai, Margham Publications, 2002,

Page no: 22.1-23.87.
2. ESI Bare Act, 1948.

JOURNALS:
1. Sharma Arvind K, “Factors affecting satisfaction from Employees’ State Insurance
Corporation Hospital’s Service”, 1998.
2. Sharma RK and Prasad PVV, “A study on accident and emergency services of
ESI Hospital New Delhi”, Journal of Health Population: Perspectives and
Issues, Volume 19, Issue 1, January – March 1996, Page no: 50 – 62.
 3. Latha K and Anand TR, “Evaulative study of different contraceptive services
rendered at various hospital in Delhi”, 1998.
4. Mathur N and Sharma KKR, “Medido-Economic implications of Industrial
hand injuries in India”, Journal of Hand Surg and Eur, Volume 13, No 3, June
1988, Page no: 325 – 327.
5. Ramani KV, “E-governance for ESI Hospitals Costing of Medical Services at
ESI Hospital, Bapunagar”, Journal of IIMA, 2002.
6. Kannan KP and Vijayamohanan Pillai N, “Social Security in India: The Long
Lane Treaded and The Longer Road Ahead towards Universalization”, MPRA
Paper, No: 9601.

WEBSITES:

1. http://esic.nic.in/
2. http://en.wikipedia.org/wiki/Public_opinion
3. http://en.wikipedia.org/wiki/Employees%27_State_Insurance
4. http://www.esic.in/
5. http://www.esichennai.org/
6. http://en.wikipedia.org/wiki/Young_adult_%28psychology%29
7. http://en.wikipedia.org/wiki/Hospital
8. http://en.wikipedia.org/wiki/Health_insurance
9. http://en.wikipedia.org/wiki/Social_security