Analysis of Labour Welfare Measures and its Impact on Employee’s Commitment

Abstract

Background: During the growing time of technology, the organizations cannot increase their employee’s commitment by providing salaries on time. When the organization offer different welfare measures to their employees, there is an opportunity to increase the commitment of the employee. Objective: The aim of the study is to analyse labour welfare measure and its relationship with employee’s commitment. Materials and Methods: A sample of 76 respondents (84.2% male and 15.8% female) from Jyothy Laboratories Limited were participated in the study and the census method was adopted in the collection of data from individual respondents. Result: The findings of the research indicated that the labour welfare measure especially health insurance, housing facility, hygienic toilet facility, transport facility, rest and lunch room facility, compensation on death and recreational facilities creates a positive approach on employee’s commitment, while the other factors create variables creates a negative approach on employee’s commitment. The factors of labour welfare measures namely statutory welfare measure and non-statutory welfare measure are highly influenced by the employee’s commitment like affective and normative commitment. But in the case of continuance commitment, social security measure alone creates an impact, the remaining variable are not create any impact on continuance commitment. Conclusion: The study concluded that the organization has to take a necessary action against the labour welfare measure which creates a negative approach among the employees, it will definitely raise the employee’s commitment and also increase the organization’s revenue in future.

Keywords: Labour Welfare Measure, Statutory Welfare Measure, Non-statutory Welfare Measure, Social Security Measure, Job Commitment, Employee’s Commitment, Involvement, Engagement

JEL Classification: I30, I31, I38, I39, M51