MBA Study Material

study material on Labour Welfare

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what do you understand by term labour welfare? What is it all about?

classical economics and all micro-economics labour is one of four factors of production, the others being land, capital and enterprise. It is a measure of the work done by human beings. There are macro-economic system theories which have created a concept called human capital (referring to the skills that workers possess, not necessarily their actual work), although there are also counterpoising macro-economic system theories that think human capital is a contradiction in terms.
The term welfare suggests the state of well being and implies wholesomeness of the human being. It is a desirable state of existence involving the mental, physical, moral and emotional factor of a person
Adequate levels of earnings, safe and humane conditions of work and access to some minimum social security benefits are the major qualitative dimensions of employment which enhance quality of life of workers and their productivity. Institutional mechanisms exist for ensuring these to workers in the organized sector of the economy. These are being strengthened or expanded to the extent possible. However, workers in the unorganized sector, who constitute 90 per cent of the total workforce, by and large, do not have access to such benefits. Steps need to be taken on a larger scale than before to improve the quality of working life of the unorganized workers, including women workers.
Labor welfare is the key to smooth employer-employee relations. In order to increase labor welfare, Employers offer extra incentives in the form of labour welfare schemes, and to make it possible to pursued workers to accept mechanization. Sometimes the employers to combat the influence of outside agencies on their employees, use labor welfare as a tool to minimize the effect they may have on the labour. labour welfare measures are also initiated with the view to avoiding payment of tax on surplus and to build up at the same time better relations with employees.

there are some theories which constitutes the conceptual frame framework of the labour welfare, describe these theories

Several theories constituting the conceptual framework of labour  welfare  have so  far been outlined these are
Policy theory
Religious theory
Philanthropic theory
Trusteeship theory
Placating theory
Public relations theory
Functional theory

Policy theory:

This theory is based on the contention that a minimum standard of welfare is necessary for workers. The assumption on which the theory is based is the without compulsion, supervision and fear of punishment, no employer will provide even the barest minimum of welfare facilities for workers this theory is based on the assumption that man is selfish and self –centered, and always tries to achieve his own ends, even at the cost of the welfare of others. According to this theory, owners and managers of industrial undertakings make use of every opportunity to engage in this kind of exploitation. The sate has therefore to step in to prevent exploitation by enacting stiff laws to coerce industrialists into offering a minimum standard of welfare to their workers. Such interference it is felt is in the interests of the progress and welfare of the state as well. Laws are enacted to compel management to provide minimum wages, congenial working conditions and reasonable hours of work and social security.
The policy theory involves several stages of implementation

Enactments
Periodical supervision
Punishment

Religious theory

The theory views were an essentially religious. Religious feelings are what sometimes prompt employers to take up welfare activities in the belief of benefits either in his life or in support after life. Any good work is considered an investment, because both the benefactor and the beneficiary are benefited by the good work done by the benefactor. This theory does not take into consideration that the workers are not beneficiaries but rightful claimants to a part of the gains derived by their labour.

Philanthropic theory

Philanthropy is the inclination to do or practice of doing well to ones fellow men. Man is basically self centered and acts of these kinds stem from personal motivation, when some employers take compassion on their fellowmen, they may undertake labor welfare measures for their workers.

Trusteeship theory

In this theory it is held that the industrialists or employers holds the total industrial estate, properties and profits accruing form them in trust for the workmen, for himself , and for society. It assumes that the workmen are like minors and are not able to look after their own interests that they are ignorant because of lack of education. Employers therefore have the moral responsibility to look after the interests of their wards, who are the workers.

Placating theory

As labour groups are becoming better organized and are becoming demanding and militant, being more conscious of their rights and privileges that even before, their demand for higher wages and better standards increases. The placing theory advocates timely and periodical acts of labour welfare to appease the workers.

Public relations theory

This underlining philosophy behind this theory is an atmosphere of goodwill between management and labour and also between management and the public. Labour welfare programms under this theory, work as assort of an advertisement for companies and helps build up good and healthy public relations. The labour welfare movements may be utilized to improve relations between management and labour. An advertisement or an exhibition of alobour welfare programme may help the management projects a good image of the company.

Functional theory

The concept behind this theory is that a happy and healthy person is a better, more productive worker. Here, welfare is used as a means to secure, preserve and develop the efficiency and productivity of labour. As discussed earlier, the approach to any solutions, especially as that as between the workers and the management should be dialogue and an understanding of one another’s viewpoint. Once agreement has been reached, compliance by both parties can be assured to a vary great extent. This also called the efficiency theory.