We are living in industrial world. Its history is both glorious and heinous. Some industrialists used to treat labors as their slaves and some treated nicely and cared for their future as well. Many revolutions on the earth was based on the discrimination against labors by capitalists in the world. Industrialization was started back in 18th century originated in Europe then. One side, by industrialization, some became richer and were successful in creating fortune while others lived deprived lives.
Nowadays we can see progressive management of labor welfare in companies/industries. But before the progressive management age, labors had to face the exploitation by the capitalists/industrialists. Indeed, some of those capitalists were also good who treated well for their labors, but others did not do the same. To prevent the exploitation governments had to intervene in between the management/capitalists/industrialists and labors. There are some theories that industrialists/employers used to approach to the labors.
(Since then industrialists used to use labors for their mean, theories may seem contradicting to those names)
Below are the list of Labour Welfare Theories -
1. The Police Theory
2. The Religious Theory
3. The Philanthropic Theory
4. The Trusteeship Theory
5. The Placating Theory
6. The Public Relations Theory
7. The Functional Theory
So, let's now discuss about these theories in details. By reading these different types of theories, you will be able to understand the mindset of industrialist and exploitation done by them in that time.
1. The Police Theory - The police theory is based on the contention that a minimum standard of welfare is necessary for laborers. Apparently, this theory assumes that man is selfish and self-centered and always tries to achieve his on ends, even at the cost of the welfare of others. If wealth or authority are both help him to be in an advantageous position, he uses it for his on advantage exploiting, those who are under him. According to this theory, owners and managers of industrial undertakings get many opportunities for this kind of exploitation. The welfare state has to prevent this kind of exploitation and coerce the industrialists to offer a minimum standard of welfare to their workers.
2. The Religious Theory - This theory is based on the concept that man is essential "a religious animal". Even today, many acts of men are related to religious sentiments and beliefs. These religious feelings, sometimes, prompt an employer to take up welfare activities in the expectation of future benefit, either in this life or in some future life. According to this theory, any good work is considered as "Investment". In this case, both benefactor and the beneficiary are rewarded. Many trusts and charitable institutions in India function on the basis of this belief.
Another aspect of religious theory is the atonement aspect. Some people take up welfare work in a spirit of atonement for their sins. Thus, the benevolent acts of welfare are treated either as an investment or an atonement. According to this theory, man is primarily concerned with his own welfare and only secondarily with the welfare of others. The religious basis of welfare, however, cannot be rational.
3. Philanthropic Theory - This theory is based on man's love for mankind. In Greek, 'philo' means love of and 'anthropes' means man. So philanthropic means loving mankind. Man is believed to have an instinctive urge by which he strives to remove the sufferings of others and promote their well-being. This drive may be rather powerful one and may impel him to perform noble sacrifices. When some employers have compassion for their fellowmen, they may undertake labour welfare measures for the benefit of their workers.
4. Trusteeship Theory - This is also called the paternalistic theory of labour welfare, according to which "the industrialist or employer holds the total industrial estate, properties and profits". These properties and profits, he uses for himself, for the benefit of his workers and also for society. Workers are like minors. They are ignorant because of lack of education and are not able to look after their own interests.
5. Placating Theory - This theory is based on the fact that labour groups are becoming more militant and are conscious of their rights and privileges than ever before. Their demand for higher wages and better standards cannot be ignored. According to this theory, timely and periodical acts of labour welfare can appease the workers. They are some kind of pacifiers by way of friendly gestures. Sincerity may be lacking in these programs. Psychologically this theory is unsound, though it has often been acted upon to secure the worker's cooperation.
6. Public Relations Theory - This theory provides the basis for an atmosphere of goodwill between labour and management and also between management and the public. Labour welfare programs, under this theory, work as a sort of an advertisement and help an industrialist to build up good and healthy public relations. This theory is based on the assumption that the labour welfare movement may be utilized to improve relations between management and labours.
7. Functional Theory - This is also called Efficiency Theory. Here, welfare work is used as a mean 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 thereby they step up production. But all this will depend on a healthy collaboration, between union and management and their mutual concern for the growth and development of the organization.
8. Conclusion - Labour welfare and job satisfaction are two dimensions that are important to ensure industrial peace, excellent industrial relations and progress of the nation. Labour welfare facilities provided by employers are based on diverse approached and connected to various theories. Job satisfaction is influenced by different factors, which determine the level of satisfaction employees will experience at the workplace. job satisfaction also rests on certain theories and is influenced by different schools of thought.
The job is satisfying when there is a match between the characteristics of the job and the needs of the individual. Labour welfare facilities can bring about the fulfillment of employees' expectations and thus promote job satisfaction.
Hope this article is useful for you. These theories are important for you in every step of life whether you are preparing for exams life UPSC EPFO and other similar examinations or if you are working in any organization or you are an employer, you will be able to evaluate your interest at that position.
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