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Theories of Labour Welfare

The document discusses various theories of labor welfare. The Police Theory believes compulsion is needed to ensure employers provide minimum welfare. The Religious Theory views welfare as an investment for future benefits. The Philanthropic Theory sees employers having an instinct to help workers. The Trusteeship Theory considers employers as trustees responsible for workers' interests. The Placating Theory views welfare as a way to reduce discontent. The Public Relations Theory argues welfare improves company image. The Functional Theory states welfare improves efficiency. The Development of People Theory aims to help the development of both workers and management. Labor welfare work is classified as statutory, voluntary, or mutual.

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Amithab Sankar
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227 views23 pages

Theories of Labour Welfare

The document discusses various theories of labor welfare. The Police Theory believes compulsion is needed to ensure employers provide minimum welfare. The Religious Theory views welfare as an investment for future benefits. The Philanthropic Theory sees employers having an instinct to help workers. The Trusteeship Theory considers employers as trustees responsible for workers' interests. The Placating Theory views welfare as a way to reduce discontent. The Public Relations Theory argues welfare improves company image. The Functional Theory states welfare improves efficiency. The Development of People Theory aims to help the development of both workers and management. Labor welfare work is classified as statutory, voluntary, or mutual.

Uploaded by

Amithab Sankar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Theories of Labour Welfare

Concept of Labour Welfare


• Desirable state of existence involving physical,
mental, moral and emotional well-being.

• Welfare – dynamic concept – depends largely


on the conscience of the community, the
scientific advancement and the development
of a nation in all fields.
Police Theory / Compulsion Theory
• Man is selfish and always tries to achieve his
objectives, even at the cost of welfare of
others, those are under him.

• This theory believes that without compulsion


and periodical supervision and fear of
punishment employer will not provide even
the minimum welfare facilities to the workers.
Contd…
• 1. Making provision of laws regarding
minimum welfare for workers.
• 2. Supervision and implementation of law
through proper authority.
• 3. Punishment to employers, who disobeys
the laws.
Contd…
• Criticism
– Fear not on the spirit of welfare
– Where there is ignorance of rights,
– no active trade unions,
– laws are essential
The Religious Theory

• Based on the concept that man is essentially ‘a


religious animal’.

• This theory believes that an employer has to take


up welfare activities in the expectation of future
benefit either in this life or in some future life.

• Thus, according to this theory any good work is


considered 'an investment’ to get ‘Moksham’.
Contd…
• Criticism
– Primarily concerned with his own welfare
– Religious basis many not be rational, neither
universal or continuous
– Charity is not good for the beneficiary in long run
The Philanthropic Theory
• In Greek – Philo means loving and anthropes
means man – loving mankind
• Man is believed to have an instinctive urge by
which he strives to remove the suffering of others
and promote their well being.
• The labour welfare movement began in the early
years of the Industrial Revolution with the support
of such philanthropists.
• Employer is the important factor of organization.
He is responsible for the well-being of his
workmen.
Contd..
• Criticism
– Not all employers follow welfare of brotherhood
– Short term benefits
– No continuity
The Trusteeship Theory/ Paternalistic
Theory

• According to PT- ‘industrialist or employer


holds the total industrial estate, properties,
and profits accruing from them in trust’.
• Workers in the organization is like minors,
they are ignorant because of lack of education
and are not able to look after their own
interest.
Contd…

• Employer therefore, have the moral


responsibility to look after the interest of their
wards, who are the workers.

• He uses all properties and estate for himself,


for the benefit of worker and also for the
society.
Contd…
• Criticism
– Since there is no legal sanction, its value is related
to the moral conscience of the industrialist.
– Workers as perpetual minors and industrialist as
guardians
– The self reliant growth of the trade union
movement is ignored.
The Placating Theory
• This theory believes that labour groups are more
conscious of their rights and privileges, their
demands for higher wages and better standards
cannot be ignored.
• Timely and periodical review of labour welfare
measure can create healthy atmosphere in the
organization.
• This approach will increase cooperation of the
worker to achieve the objectives of the
organization.
Contind…
• Criticism
– Sincerity may lack , though discontent can be
brought off.
The Public Relations Theory
• Assumption that the labour welfare
movement may be utilized to improve
relations between the management and
labour.
• Good relations between the labour and the
management helps to raise in the efficiency of
labour and productivity of organization.
Contd…
• Labour welfare programme may help an
industrialist to project to the public good
image of the company.

• His sales, production as well as industrial


relation may improve as a result a two fold
benefit to the company.
Contid

• Criticism
– No Sincerity – a programme loses its
advertisement value, it may be neglected.
– Welfare may tend to become a publicity stunt.
The Functional Theory
• Welfare measures is used as a means to
secure, preserve and develop the efficiency
and productivity of labour.

• It is obvious that if an employer takes good


care of his workers, they will tend to become
more efficient and will thereby step up
production.
Contd…
• Criticism
– Indiscriminate use
– Selfish motive
– No Continuity
The Development of People Theory
• The ultimate object of any business
organization, so that the management should
help for the development the people i.e.
workers those who are working in the
organization.

• Both the labour and the management should


help each other for their own development, it
will definitely lead to development of nation.
Contd..
• Criticism
– National building may not be the objective of
employers.
Contid..
• Human Rights
– No employer has any right to violate the essential
rights of labourers.
Classification of labour welfare work
• Statutory
• Voluntary
• Mutual

S.D Punekar, S.B. Deodhar and Mrs.Saraswathi


Sankaran, Labour Welfare, Trade Unionism
and Industrial Relations, Himalaya Publishing
Co. 2003

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