Executive summary
To attract, motivate and retain good employees, organizations need to define what employees Want from employment relationship. Employee needs is to consider �Total Reward” which is everything an employee perceives resulting from working for the company. Benefits are core elements of Total Reward system. Benefits include health, welfare plans and retirement plans provided by the organizations to protect and ensure employees financial security. Employee benefits have evolved from basic �Fringe Benefits �to a comprehensive range of benefits that strike a balance between employees’ personal and professional lives.
Many studies contend that benefits are the most useful means to attract, motivate and retain employees. Companies having attractive benefits packages have more buying power in the job market. The available literature about employee welfare benefits suggested that people do not work for just a wage or salary and companies offering more voluntary benefits have better chance of attracting qualified people and retaining them. On the other side retention is key challenge in those firms lacking such benefits and where work tends to get routine and monotonous and there is no opportunity for personal growth and development the result would be high rate of employee turnover. Research reveals various reasons why employees want to leave an organization but the most common ones include monotonous work schedule, stress at workplace, lack of career growth, training and development opportunities and nepotism etc.
The existing study is based on employee welfare benefits in Askari Cement a Pakistani based organization and in order to identify employee welfare benefits problems that reduced overall efficiency and effectiveness of the organization survey was done using questionnaires and interviews and data of respondents was analysed. At the end final concluding remarks were given. The study also provided some suggestions and recommendations to the organization for the improvement of employee welfare problems in order to motivate, retain and improve employee performance at workplace.
Chapter 1
Introduction
Objectives:
The objective of this chapter is to provide readers some basic information about the organization, the business of the organization, problems in the organization, its location and information about the country where the organization exists.
Introduction to the country
At the time of independence in August 1947 only one or two units were producing grey cements in Pakistan. But during 1948-58 the number of units was increased to six. During Ayub khan era the economy became stable and construction activities increased. And during 1958-68 three more units were added. During period of Zulfiqar Ali Bhutto all industrials units including cement industry were nationalized and there was no increase in units during 1971-77. At the arrival of General Zia ul Haq decentralization of industries boosted the investments. Housing and constructions picked up and the demand for cement increased and number of units increased to 23 and finally to 24. Since independence production capacity per annum increased from half a million tonnes to more than 10 million tonnes per annum as a result of new manufacturing facilities and expansion by exiting units. In total 23 units 4 units are in the public sector while 19 units are in the private sector. Two of 4 in public sector had to close its operations because of tough competition and high production costs. Cement units are located in every province of Pakistan. The selected organization which is �Askari Cement” has two units located at Wah (Punjab) and at Nizampur (NWFP) Pakistan.
Background of the company
Profile
Askari Cement Ltd is located in Pakistan. The company has been registered as an ISO 9001-2000 certified organization and has the credit of being the first in cement industry to get ISO 9001. It has two units based at Wah (North Punjab) and at Nizampur (NWFP).Because of highest production capacity at both plants Askari Cement has consistent availability and a big supply chain in the provinces and country as well. Askari cement is used by mega projects of national importance such as Ghazi Brotha Hydro Power Project, Pakistan Housing Authority schemes and Pakistani Railways etc.
History of the company
Askari cement factory is successor of associated cement company. The first cement plant in the area now constituting Pakistan. The first plant was set up by Bombay based company (Associated Cement Company) in 1921 with a capacity of 120 tonnes per day and was enhanced to 300 tonnes per day in 1950. In 1972 the company was nationalized and put under control of state cement corporation of Pakistan in 1974. In the year 1991 its name was changed to WAH Cement Factory. In 1994 during privatization scheme it was acquired by Army Welfare Trust in 1996. After acquisition by Army welfare trust it changed name of the brand to Askari Cement. Askari Cement has the credit of being the first in cement industry to get ISO 9001, and now first to get the ISO-14001 Environmental Friendly standards certification in Pakistan. Another plant was started in 1993 by the Army Welfare Trust in North West Frontier Province at Nizampur which started production in 1996.
Statement of problem
Pakistan is a developing country with barely a budding industrial infrastructure. The industries are facing different sort of external hazards such as political instability, economic instability, energy crises and internal factors such as lack of advanced technologies, skilled workers, training facilities and conducive work environment etc.
One important factor that reduces the efficiency and effectiveness of organizations in Pakistan is high rate of employee turnover. Looking deep in to the problem and linking it with the available literature proposes an implied possibility of lack of employee welfare benefits. Welfare includes everything done for the comfort and improvement of employees apart from wages such as monitoring of working conditions, infrastructure for health insurance, accidental and unemployment benefits for workers and their families, education for children and post retirement benefits.
Most of the organizations in Pakistan rarely provide overall competitive packages to its employees, which results in low productivity, retention and some time high rate of employee turnover. A well defined and comprehensive personal development policy for the employees should be in place in organizations to increase productivity and reduce employee turnover. According to social-exchange theory, the more valuable the activity of another is to a person, the more valuable the approval he gives in return. This view implies that firms offering more voluntary compensation should have a better chance of attracting or retaining good workers to contribute their skills and knowledge. A lot of studies contend that benefits are a useful means to motivate, retain and attract qualified employees. (Tsai & Wang, 2005)
The Research is based on the case study of �Askari Cement” located in Pakistan. In Recent years the company management did not concentrate on employee welfare problems such as lack of competitive packages, poor health and safety at workplace, poor messing and toilets facilities, lack of training and career development opportunities, nepotism in promotions etc lack of such welfare benefits not only de-motivated employees but also resulted in high rate of employee turnover , low workplace productivity and affected the overall efficiency and effectiveness of the organization.
Purpose of the study
The first purpose of this study is to investigate how welfare programs affect employees. Secondly why employers provide employee welfare programs and how they help organizations in retaining staff and increasing workplace productivity. Finally to highlight employee welfare problems in the selected organization and to provide suggestions to improve employees’ job satisfaction, working conditions and health and safety issues at workplace.
Research questions
The existing research would focus on the following questions
1) To investigate and identify employee welfare/benefits provided by the selected organization, to highlight welfare problems and to provide suggestions to improve?
2) employees’ job satisfaction, working conditions and health and safety issues at workplace?
3) Should more emphasis be placed on welfare benefits to improve employees’ performance and increase workplace productivity?
4) Employee retention is a key challenge in organizations. How employee welfare benefits help organizations in retaining and attracting staff?
5) Why do companies provide employee welfare benefits and how they affect employees?
Research Methodology
In this research data has been collected through primary and secondary research. When research is conducted and opposed data is accumulated directly from respondents or research subjects for the purpose of project is called empirical or primary research e.g. personal interviews where informants were interviewed about issues being studied.
Secondary research arises when a project necessitates a summary or appraisal of compilation of data (Saunders et al, 2003). Secondary data can be collected from three mains sources e.g. published data, internal documentation, and feedback provided by industry experts or workers.
Limitations of research
First limitation is that due to time and cost reductions for the purpose of primary research questionnaires and telephonic interview have been used instead of face to face interview. Second limitation is that in qualitative research all acquired data ought to be presented in written format not in figure form (Kumar.2005). The third limitation is research questionnaire might give researcher little information. Fourth limitation is some time respondent do not want to fill out questionnaire and research may get delay. Finally, if a company show its willingness to participate in research may hide some important documents from researcher.