A STUDY ON THE OPINION AND SATISFACTION OF EMPLOYEES

ON ESI SCHEMES IN SHOE MANUFACTURING COMPANIES AT

PAMAL, CHENNAI

PROJECT REPORT

Submitted to

DRAVIDIAN UNIVERSITY

In the partial fulfillment for the award of

MASTER DEGREE IN BUSINESS ADMINISTRATION

Submitted by

MATHAN RAJ P.K.

REG NO: 22205409010

Under the guidance of

Mrs. IDA SELVARANI MA (Psy), MDPA, PGDBA, LLB, FDP (IIM-A)

OSCAR MANAGEMENT COLLEGE

#A-2, Near Collectorate,Sathuvachari,Vellore – 9.

2009-2011

OSCAR MANAGEMENT COLLEGE

(Approved by DRAVIDIAN UNIVERSITY)

#A-2, Near Collectorate,Sathuvachari,Vellore – 9

BONAFIDE CERTIFICATE

This is to certify that this project entitled “A STUDY ON THE OPINION

AND SATISFACTION OF EMPLOYEES ON ESI SCHEMES IN SHOE

MANUFACTURING COMPANIES AT PAMAL, CHENNAI” submitted by

MATHAN RAJ.P.K (RegNo: 22205409010) in partial fulfillment of the

requirement for the award of Master of Business Administration from

DRAVIDIAN UNIVERSITY, is the original work of the candidate and has not

been submitted for awarding any degree of either this university or any other

university either in full or in part.

Signature of the Guide

(IDA SELVARANI)

OSCAR MANAGEMENT COLLEGE

(Approved by DRAVIDIAN UNIVERSITY)

#A-2, Near Collectorate,Sathuvachari,Vellore – 9

EXTERNAL CERTIFICATE

This is to certify that this project entitled “A STUDY ON THE OPINION

AND SATISFACTION OF EMPLOYEES ON ESI SCHEMES IN SHOE

MANUFACTURING COMPANIES AT PAMAL, CHENNAI” submitted by

MR.MATHAN RAJ. P. K (Reg No: 22205409010) for viva voce Examination

held on ______________ in partial fulfillment of the requirement for the award

of Master of Business Administration from DRAVIDIAN UNIVERSITY.

External Examiner Internal Examiner

Principal

OSCAR MANAGEMENT COLLEGE

(Approved by DRAVIDIAN UNIVERSITY)

#A-2, Near Collectorate,Sathuvachari,Vellore – 9

DECLARATION

I, MathanRaj. P. K. hereby declare that the project entitled “A STUDY ON

THE OPINION AND SATISFACTION OF EMPLOYEES ON ESI

SCHEMES IN SHOE MANUFACTURING COMPANIES AT PAMAL,

CHENNAI” submitted to DRAVIDIAN UNIVERSITY in partial fulfillment of

the degree in Master of Business Administration is a record of original work

done by me. This project work has not previously formed the basis for the

award of any degree, diploma, associateship, fellowship or other similar title.

Place: (MATHAN RAJ.P.K.)

Date: Reg No: 22205409010

ACKNOWLEDGMENT

First and foremost, I thank GOD for the blessings and guidance at all stages in the

completion of this project.

I take this opportunity to express my deep sense of gratitude to

Mr. JAI CHANDRAN, Founder Chairman, of our college for his goodwishes for this

project. I express my immense gratitude to my Principal Prof. P. PETER for his support and

encouragement for the completion of my project.

I take immense pleasure in conveying my thanks and deep sense of gratitude to my

Project Guide and my mentor Mrs. IDA SELVARANI, for her exhilarating supervision,

timely suggestions, motivation and encouragement during all phases of this project work and

without her guidance and support, this project will not be possible.

I also thankful to all other faculty members of the department for the constant co-

operations and encouragement in pursuing my project work.

I also very much thankful to Mr. J. JOHN COLAP PRAVIN, Accounts Manager of

Gadsyl Exports Private Limited who has provided me with the necessary information for the

project and complete support to finish this project without any issue.

I specially thank Dr. R. RAVANAN, Associate Professor of Statistics, Presidency

College, Chennai for his teaching and guidance in the SPSS Package and in different

Statistical tools. Without his guidance it is not easy to complete the data analysis part.

I would like to thank all my friends for their constant encouragement, support and

help to make this project a success.

Finally, I would like to convey my gratitude to my loveable parents and relatives

whose prayers and blessings were always there with me.

MATHAN RAJ.P.K

TABLE OF CONTENTS

CHAPTER NO TITLE PAGE NO

1 INTRODUCTION

1.1 Introduction 1

1.2 Statement of the Problem 3

1.3 Need for the Study 4

1.4 Objectives of the Study 4

1.5 Scope of the Study 4

1.6 Limitations of the Study 5

1.7 Company Profile 5

2 RESEARCH METHODOLOGY

2.1 Field of the Study 7

2.2 Research Design 7

2.3 Sample Design 7

2.4 Source of Data 8

2.5 Tool of Data Collection 8

2.6 Data Analysis 9

3 REVIEW OF LITERATURE

3.1 Theoretical Framework 17

3.2 Research Studies 30

4 DATA ANALYSIS AND INTERPRETATION 32 – 64

5 FINDINGS, SUGGESTIONS AND CONCLUSION

5.1 Findings 65

5.2 Suggestions 69

5.3 Conclusion 70

AnnexureQuestionnaire 71

Bibliography 75

LIST OF TABLES

TABLE NO TABLE NAME PAGE NO

1 Details of Age Group 32

2 Gender of the Respondent 33

3 Marital Status 34

4 Educational Qualification 35

5 Awareness about Deduction 36

6 Treatment Place 37

7 Reason for Going to ESI 38

8 Reason for Not Going to ESI 39

9 Services Availed 40

10 Facilities Availed 41

11 Percentage of ESI Benefits Availed 42

12 Chi-Square Test for Number of Benefits Availed 43

13 Percentage of Opinion about ESI Benefits 44

14 t-Test for Level of Opinion and Physical Performance 45

15 One Sample t-Test for the Opinion on ESI Benefits 46

16 Accidents at Work 47

17 Accident Treated Place 48

18 Medical Problems Faced 49

19 Level of Satisfaction on ESI Facilities 50

20 Company Involvement 51

21 Level of Company Support 52

22 Level of Difficulty in Understanding ESI 53

23 Awareness on new ESI Amendments 54

24 Awareness about the online facility 55

25 Level of Competency 56

26 Overall Opinion 57

27 Correlation between Overall Satisfaction and Opinion 58

28Correlation between the Organization support and the Overall

Satisfaction59

29 Level of Satisfaction on Company Benefits 60

30 ANOVA – Total Satisfaction and Age Group 61

31 Descriptive Statistics for Age Group 61

32 Crosstabs between Age Group and the Satisfaction Level 62

33 Level of Motivation 63

34 ANOVA – Total Satisfaction and Motivation 64

35 Descriptive Statistics for Motivation 64

LIST OF FIGURES

FIGURE NO FIGURE NAME PAGE NO

1 Organization Structure of Gadsyl Exports Private Limited 5

2 Organization Structure of Saga Cuirs 6

CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION

According to World Health Organization, health is defined as a state of complete physical,

mental and social well-being and not merely an absence of diseases. All the activities of man

are influenced by the state of his health. Health is vital to productive life.

Health for all by is, of course, a difficult challenge to the nation in general and the health

providers in particular. As the industrialization takes place rapidly in India, the number of

persons employed in industrial establishments also increases considerable. The industrial

workers health will be increased if better conditions are prevailing in their work place as well

as in their house, including water, sewage, waste disposal, nutrition, education, other

environmental sanitations, etc. The industrial workers do need special measures to maintain

their normal health.

Health insurance is insurance against the risk of incurring medical expenses. By estimating

the overall risk of health care expenses, an insurer can develop a routine finance structure,

such as a monthly premium or payroll tax, to ensure that money is available to pay for the

health care benefits specified in the insurance agreement. The benefit is administered by a

central organization such as a government agency, private business, or not-for-profit entity.

The concept of health insurance was proposed in 1694 by Hugh the Elder Chamberlen from

the Peter Chamberlen family. In the late 19th century, accident insurance began to be

available, which operated much like modern disability insurance. This payment model

continued until the start of the 20th century in some jurisdictions (like California), where all

laws regulating health insurance actually referred to disability insurance.

Hospital and medical expense policies were introduced during the first half of the 20th

century. During the 1920s, individual hospitals began offering services to individuals on a

pre-paid basis, eventually leading to the development of Blue Cross organizations. The

predecessors of today's Health Maintenance Organizations (HMOs) originated beginning in

1929, through the 1930s and on during World War II.

Healthcare in India features a universal health care system run by the constituent states and

territories of India. The Constitution charges every state with "raising of the level of nutrition

and the standard of living of its people and the improvement of public health as among its

primary duties". The National Health Policy was endorsed by the Parliament of India in 1983

and updated in 2002. However, the government sector is understaffed and underfinanced;

poor services at state-run hospitals force many people to visit private medical practitioners.

Social security is primarily a social insurance program providing social protection or

protection against socially recognized conditions, including poverty, old age, disability,

unemployment and others. Employees’ State Insurance scheme was started by the Indian

Government in the year 1948. Employees' State Insurance scheme is a self-financing social

security and health insurance scheme for Indian workers. For all regular employees earning

less than Rs. 15,000 per month salary, the employers and employees contribute a fixed

percentage of the salary. This fund is managed by the ESI Corporation, which oversees the

provision of medical and other benefits to the employees, through its large network of

dispensaries and hospitals throughout India.

ESI was started in India, initially for factory workers. It now provides social security to

employees from all industries, covering 12.5 million employees working with about 400,000

employers. Total beneficiaries as of 2008-09 are above 50 million. The employees registered

under the scheme are entitled to medical treatment for themselves and their dependants,

unemployment cash benefit in certain contingencies, and maternity benefit in case of women

employees. In case of employment-related disablement or death, there is provision for a

disablement benefit and a family pension, respectively.

Outpatient medical facilities are available in 1398 ESI dispensaries, and through 1678

empanelled private medical practitioners. Inpatient care is available in 145 ESI Hospitals and

42 Hospital annexes; a total of 19387 beds. In addition, several state government hospitals

also have beds for exclusive use of ESI Beneficiaries. Cash benefits can be availed in any of

783 ESI centres located throughout India.

1.2 STATEMENT OF THE PROBLEM

Shoemaking is a particularly hazardous occupation for women notably, the exposure to

chemical solvents and dust. Among the materials used in the shoe manufacturing process,

that could be occupational hazards, are the adhesives, especially adhesives solutions based on

organic solvents. Air samples analyses show 20 different organic compounds existing in the

workplaces (Mayan, et. al., 1999)1. Studies show association between exposure to leather dust

and nasal cancer and between exposure to benzene and leukemia in the shoe manufacturing

industry. Some evidence for an excess risk of stomach, bladder and kidney cancer as well as

multiple myeloma and non-Hodgkin’s lymphoma was found among workers in jobs with the

highest exposure to solvent (Hua Fu et. al., 1990)2. The poorer the worker, fewer the choices,

and most workers cannot afford to worry about chemical hazards. Thus ESI scheme provide

health insurance for the industrial workers in India.

The Employees' State Insurance Act passed in 1948 is an important measure of social

security and health insurance to industrial workers in the country. The scheme provides

protection against loss of wages due to inability to work on account of sickness, maternity,

disablement and payment of benefits in the form of pension to dependents of insured persons

who die as a result of employment injury. The scheme also provides medical care to insured

and their family members through ESI hospitals, dispensaries, annexes and other hospitals.

Despite all these comprehensive services, it has been reported that the beneficiaries are not

satisfied with ESI services. This has led to resentment on the part of industrial management to

contribute to ESI scheme. Although some of the problems related to such dissatisfaction are

known, yet, there is a need to understand more details on the reasons for dissatisfaction. This

study, therefore, is designed to analyze the opinion and satisfaction of the employees about

the ESI Scheme.

1.3 NEED FOR THE STUDY

1 Mayan O, Pires A, Neves P, Capela F.,Applied Occupational and Environmental Hygiene. 1999, Nov; 14(11):785-90.

2 Hua Fu, Paul A Demers, Adele Seniori Costantini, Paul Winter, Didier Colin, Shoe manufacturing and solvent

exposure in northern Portugal Occupational and Environmental Medicine, 1990, 53: 394-398

1. The importance of worker’s health to a company is undisputable. ESI is a contributory

welfare scheme provided to workers earning less than Rs.15,000/- per month.

Workers in shoe manufacturing industry being exposed to occupational hazards,

require health services. The researcher was therefore interested to study the opinion of

workers towards the scheme.

2. The ESI hospitals have a very crucial role in helping the industrial workers to

maintain their health as well as the health of the members of their family. However,

several studies conducted earlier in India reported dissatisfaction of beneficiaries with

the service provided with the ESI hospitals. Therefore the researcher was interested to

know how workers were utilizing ESI hospitals.

3. In partial fulfillment of the MBA course this study was undertaken.

1.4 OBJECTIVES OF THE STUDY

The following are the objectives of the study:

1. To assess the belief of the employees about the ESI Schemes

2. To study the satisfaction in the used ESI schemes by an employee

3. To study the organization support in providing the ESI benefits to their employees

4. To analyze the issues faced by employees in getting the ESI benefits

1.5 SCOPE OF THE STUDY

The study is only on the opinion and satisfaction of employees about the ESI Schemes. It is

only among the employees of shoe manufacturing companies. So, the information derived

from the study is only relevant to this type of industry alone.

This study covered only the workers of two selected shoe manufacturing companies in Pamal,

Chennai. So, the information and the conclusion derived from the study are only relevant to

this area alone. Consequently, generalization may be drawn for similar shoe manufacturing

companies.

1.6 LIMITATIONS OF THE STUDY

The duration of the project was one of the primary constraints for the project. It was an

academic effort and limited to cost, time and geographical area. Numbers of respondents

were also restricted due to the time factor. This study is confined only among the workers of

the shoe manufacturing companies in Pamal, Chennai.

1.7 PROFILE OF THE COMPANIES

Gadsyl Exports Private Limited

The company has been in the shoe manufacturing business for the last 5 years. For the past 5

years, the company has been operated in proprietary facilities spanning 3500 square meters,

Fig 1: Organization Structure of Gadsyl Exports Private Limited

with state of the art equipment and the capability to produce 800 to 1000 pairs of shoes

Uppers and 450 to 650 pairs of shoes per day, mainly kids and teenagers, men’s and Ladies

OfficeAssistant

Ms. Sangeetha

AccountantMs. Jamuna

ClosingSection

SupervisorMr. Shankar

StoreIncharge

Mr. Wilson & Ms. Ponny

UpperSection

SupervisorMr. Sivabalan

Cutting Section

SupervisorMr. Chandar

Accounts ManagerMr. John Colap Pravin

Production ManagerMr. SHANMUGAM

GMR.T. DINESH

DIRECTORMRS. AMSA GIRI

MD

leather shoes and uppers. This company generates around Rs 4.45 crores as annual turnover.

It has a subsidiary namely Twin Star Engineering which manufactures engineering tools and

machines. The company export market includes North America, South America, Eastern

Europe, Southeast Asia, Africa, Oceanic, Mid East, Eastern Asia and Western Europe.

Calzados Saga Exports Private Limited

It is a shoe manufacturing and export oriented company situated near Chrompet, Chennai. It

is running as a successful company in the industry for more than five years which is also

known as Saga Cuirs. The Company was founded and owned by Mr. Ganesh. It deals with

Leather Shoe Manufacturing, Leather Bag Manufacturing, Leather Cap Manufacturing,

Apron Leather Manufacturing, Hand Gloves Leather, Leather Apparel and it exports the

products to the foreign nations. It also has a sales unit for local region. It has clients from

Spain, Italy, France, Europe and from other regions of the world. It also has higher

production capacity generating more than Rs. 5 to 6 crores annually.

Fig 2: Organization Structure of Saga Cuirs

CHAPTER 2

OfficeEmployees

Accountant

Accounts ManagerProduction Manager

General Manager

MDMr. GANESH

Sales Manager

Production Unit &

Workers

Local Sales Unit

RESEARCH METHODOLOGY

2.1 FIELD OF THE STUDY

The study was conducted among the employees of two Manufacturing companies in Chennai.

They are Gadsyl Exports Private Limited and Saga Cuirs.

2.2 RESEARCH DESIGN

A Research design is the arrangement of conditions for collection and analysis of data in a

manner that aims to combine relevance to the research purpose with economy in procedure.

A Research design could be defined as the blue print specifying every stage of action in the

course of research. Such a design would indicate whether the course of action planned will

minimize the use of resources and maximize the outcome.

Descriptive Research Design

The Research design used in this study was Descriptive Research Design. Descriptive studies

come under formal research, where the objectives are clearly established. It is concerned with

the research studies with a focus on the portrayal of the characteristics of a group or

individual or a situation. The main objective of this type of study is to acquire knowledge.

2.3 SAMPLE DESIGN

A Sample Design is a definite plan for obtaining a sample from a give population. It refers to

the technique or the procedure the researcher would adopt in selecting items for the sample.

The sampling technique which was used in this research was Simple Random Sampling. It is

one of the Probability Sampling techniques. Probability Sampling is the sampling technique

in which every unit of the population has given equal chance to be included in the study.

Population: N = 110 + 120, Sample Size: n = 40 +40

2.4 SOURCE OF DATA

Primary Data

Primary data is known as the data collected for the first time through field survey. In this

study primary data was collected from Gadsyl Exports Private Limited and

Secondary Data

Secondary data refers to the information or facts already collected. Such data are collected

with the objective of understanding the past status of any variable. In this study, company

records/reports, books, journals, bare acts and internet sources were used as secondary data.

2.5 TOOL OF DATA COLLECTION

The primary tool which was used for data collection was Questionnaire. A Structured

Questionnaire which consisted of a series of questions related to the objective of the study

was designed. In the prepared questionnaire, twenty one closed-end questions with one open-

ended question were designed. The questionnaire was prepared with the help of different

Scaling Techniques and Measurement Scales.

2.6 DATA ANALYSIS

Primary data generated by the study were cleaned to ensure consistency and transcribed in

coded form (pre and post-coded) into the computer using the Statistical Package for Social

Sciences (SPSS). There are five different Statistical tools are used in this project to analyze

the data effectively. It includes the advanced statistical tools also. The Statistical tools used to

analyze are mentioned as follows.

1. T-Test for Single Mean

2. T-Test for difference of two mean

3. ANOVA – One Way ANOVA

4. Chi-Square test for independence of attributes

5. Correlation Coefficient

In the analysis, for all questions which involves the rating scale, the scale value was set least

for higher rating and greater for lower rating. So, the higher mean value is considered while

writing inference for the questionnaires.

T-Test for Single Mean:

The t- test is the most powerful parametric test for calculating the significance of a small

sample mean. A one sample t-test has the following null hypothesis:

Where, the Greek letter μ (mu) represents the population mean and c represents its assumed

(hypothesized) value. In statistics it is usual to employ Greek letters for population

parameters and Roman letters for sample statistics. The t-test is the small sample analog of

the z test which is suitable for large samples. A small sample is generally regarded as one of

size n<30.

A t-test is necessary for small samples because their distributions are not normal. If the

sample is large (n>=30) then statistical theory says that the sample mean is normally

distributed and a z test for a single mean can be used. This is a result of a famous statistical

theorem, the Central limit theorem.

A t-test, however, can still be applied to larger samples and as the sample size n grows larger

and larger, the results of a t-test and z-test become closer and closer. In the limit, with infinite

degrees of freedom, the results of t and z tests become identical.

In order to perform a t-test, one first has to calculate the "degrees of freedom." This quantity

takes into account the sample size and the number of parameters that are being estimated.

Here, the population parameter, mu is being estimated by the sample statistic x-bar, the mean

of the sample data. For a t-test the degrees of freedom of the single mean is n-1. This is

because only one population parameter (the population mean) is being estimated by a sample

statistic (the sample mean).

Formula for calculating the t value:

T-Test for difference of two mean:

The Independent Samples T Test compares the mean scores of two groups on a given

variable. One of the frequently used t-test is a two sample location test of the null hypothesis

that the means of two normally distributed populations are equal. All such tests are usually

called Student's t-tests, though strictly speaking that name should only be used if the

variances of the two populations are also assumed to be equal; the form of the test used when

this assumption is dropped is sometimes called Welch's t-test. These tests are often referred to

as "unpaired" or "independent samples" t-tests, as they are typically applied when the

statistical units underlying the two samples being compared are non-overlapping.

Independent two-sample t-test for Unequal sample size and equal variance

This test is used only when it can be assumed that the two distributions have the same

variance. The t statistic to test whether the means are different can be calculated as follows:

Where,

Note that the formulae above are generalizations for the case where both samples have equal

sizes (substitute n1 and n2 for n).

is an estimator of the common standard deviation of the two samples: it is defined in

this way so that its square is an unbiased estimator of the common variance whether or not

the population means are the same. In these formulae, n = number of participants, 1 = group

one, 2 = group two. n − 1 is the number of degrees of freedom for either group, and the total

sample size minus two (that is, n1 + n2 − 2) is the total number of degrees of freedom, which

is used in significance testing.

ANOVA:

In statistics, one-way analysis of variance (abbreviated one-way ANOVA) is a technique

used to compare means of two or more samples (using the F distribution). This technique can

be used only for numerical data.

The ANOVA tests the null hypothesis that samples in two or more groups are drawn from the

same population. To do this, two estimates are made of the population variance. These

estimates rely on various assumptions. The ANOVA produces an F statistic, the ratio of the

variance calculated among the means to the variance within the samples. If the group means

are drawn from the same population, the variance between the group means should be lower

than the variance of the samples, following central limit theorem. A higher ratio therefore

implies that the samples were drawn from different populations.

The degrees of freedom for the numerator is I-1, where I is the number of groups (means).

The degrees of freedom for the denominator is N - I, where N is the total of all the sample

sizes.

Typically, however, the one-way ANOVA is used to test for differences among at least two

groups, since the two-group case can also be covered by a t-test (Gosset, 1908). When there

are only two means to compare, the t-test and the F-test are equivalent; the relation between

ANOVA and t is given by F = t2.

Grand Mean

The grand mean of a set of samples is the total of all the data values divided by the total

sample size. This requires that you have all of the sample data available to you, which is

usually the case, but not always. It turns out that all that is necessary to find perform a one-

way analysis of variance are the number of samples, the sample means, the sample variances,

and the sample sizes. Another way to find the grand mean is to find the weighted average of

the sample means. The weight applied is the sample size.

Total Variation

The total variation (not variance) is comprised the sum of the squares of the differences of

each mean with the grand mean.

There is the between group variation and the within group variation. The whole idea behind

the analysis of variance is to compare the ratio of between group variance to within group

variance. If the variance caused by the interaction between the samples is much larger when

compared to the variance that appears within each group, then it is because the means aren't

the same.

Between Group Variation

The variation due to the interaction between the samples is denoted SS(B) for Sum of

Squares Between groups. If the sample means are close to each other (and therefore the

Grand Mean) this will be small. There are k samples involved with one data value for each

sample (the sample mean), so there are k-1 degrees of freedom.

The variance due to the interaction between the samples is denoted MS(B) for Mean Square

Between groups. This is the between group variation divided by its degrees of freedom. It is

also denoted by .

Within Group Variation

The variation due to differences within individual samples, denoted SS(W) for Sum of

Squares Within groups. Each sample is considered independently, no interaction between

samples is involved. The degrees of freedom is equal to the sum of the individual degrees of

freedom for each sample. Since each sample has degrees of freedom equal to one less than

their sample sizes, and there are k samples, the total degrees of freedom is k less than the total

sample size: df = N - k.

The variance due to the differences within individual samples is denoted MS(W) for Mean

Square Within groups. This is the within group variation divided by its degrees of freedom. It

is also denoted by . It is the weighted average of the variances (weighted with the degrees

of freedom).

F test statistic

Recall that a F variable is the ratio of two independent chi-square variables divided by their

respective degrees of freedom. Also recall that the F test statistic is the ratio of two sample

variances, well, it turns out that's exactly what we have here. The F test statistic is found by

dividing the between group variance by the within group variance. The degrees of freedom

for the numerator are the degrees of freedom for the between group (k-1) and the degrees of

freedom for the denominator are the degrees of freedom for the within group (N-k).

Chi-Square Test for Independence of Attributes:

The test is applied when you have two categorical variables from a single population. It is

used to determine whether there is a significant association between the two variables.

Suppose N observations are considered and classified according two characteristics say A and

B. We may be interested to test whether the two characteristics are independent. In such a

case, we can use Chi square test for independence of two attributes.

It has to be noted that the Chi square goodness of fit test and test for independence of

attributes depend only on the set of observed and expected frequencies and degrees of

freedom. These two tests do not need any assumption regarding distribution of the parent

population from which the samples are taken.

Since these tests do not involve any population parameters or characteristics, they are also

termed as non-parametric or distribution free tests. An additional important fact on these two

tests is they are sample size independent and can be used for any sample size as long as the

assumption on minimum expected cell frequency is met.

Degrees of freedom: The degrees of freedom (DF) is equal to: DF = (r - 1) * (c - 1)

where r is the number of levels for one categorical variable, and c is the number of

levels for the other categorical variable.

Expected frequencies: The expected frequency counts are computed separately for

each level of one categorical variable at each level of the other categorical variable.

Compute r * c expected frequencies, according to the following formula.

Er,c = (nr * nc) / n

where Er,c is the expected frequency count for level r of Variable A and level c of

Variable B, nr is the total number of sample observations at level r of Variable A, n c is

the total number of sample observations at level c of Variable B, and n is the total

sample size.

Test statistic: The test statistic is a chi-square random variable (Χ2) defined by the

following equation.

Χ2 = Σ [ (Or,c - Er,c)2 / Er,c ]

where Or,c is the observed frequency count at level r of Variable A and level c of

Variable B, and Er,c is the expected frequency count at level r of Variable A and level

c of Variable B.

P-value: The P-value is the probability of observing a sample statistic as extreme as

the test statistic. Since the test statistic is a chi-square, use the Chi-Square Distribution

Calculator to assess the probability associated with the test statistic. Use the degrees

of freedom computed above.

Correlation Coefficient:

Correlation is one of the statistical tools very widely applied as a tool of analysis in every

subject. It is a statistical measure of establishing qualitative relationship between two or more

variables. Through correlation, it is possible to indicate the direction of relationship between

variables. In research, whenever qualitative variables are used, their relationship is studied

through correlation. Correlation is measured applying different methods in statistics. They

are, Graphical method, Scatter diagram method, Karl Pearson’s coefficient of correlation and

Spearman’s Rank correlation. A very important point to note is that correlation value for any

set of values should not exceed +1 or -1.

The formula for Pearson's correlation takes on many forms. A commonly used formula is

shown below.

A simpler looking formula can be used if the numbers are converted into z scores:

where zx is the variable X converted into z scores and zy is the variable Y converted into z

scores.

CHAPTER 3

REVIEW OF LITERATURE

3.1 THEORETICAL FRAMEWORK

ESI Act

The promulgation of Employees’ State Insurance Act, 1948 envisaged an integrated need

based social insurance scheme that would protect the interest of workers in contingencies

such as sickness, maternity, temporary or permanent physical disablement, death due to

employment injury resulting in loss of wages or earning capacity. the Act also guarantees

reasonably good medical care to workers and their immediate dependants.

Following the promulgation of the ESI Act the Central Govt. set up the ESI Corporation to

administer the Scheme. The Scheme, thereafter was first implemented at Kanpur and Delhi

on 24th February 1952. The Act further absolved the employers of their obligations under the

Maternity Benefit Act, 1961 and Workmen’s Compensation Act 1923. The benefit provided

to the employees under the Act are also in conformity with ILO conventions.

Employee Registration    

For registration of employees coverable under the Scheme, the Employer shall submit

Employees Declaration Form (Form 1) in respect of every individual employee separately .

Procedure for Registering Employees

Step 1: The monthly wage limit for coverage would be such as prescribed by the Central

Govt. vide Rule 50 of ESI (Central) Rules 1950. The existing wage ceiling is Rs.15,000/-

p.m. (with effect from 1.05.2010). All those persons employed for wages drawing an amount

within the wage ceiling employed in clerical, manual, skilled, semi-skilled, unskilled without

distinguishing casual, temporary, technical & non-technical are to be covered. In respect of

each of such employees a declaration (Form 1), duly filled in & signed by the employee

concerned and duly countersigned by the authorized signatory of the employer is to be

forwarded to the appropriate Branch Office within 10 days of employment along with two

copies of family photo.

Step 2: Appropriate Branch Office shall allot Insurance Numbers, which are specific in

favour of the individual employee, (Male & Female employees will get separate series of

Insurance Numbers) and forward to the employer, along with the Identity Card / Temporary

Identity Card, Return of declaration forms etc. At the same time the office will also forward

the Medical Record envelops of such Insured Persons to the respective dispensaries.

Step 3: Distribute the Identity cards to individual, employees under due acknowledgement. It

should be ensured that each employee signs on the card in the presence of the employer

before issue of the card. Educate the employee on the benefits available under the Act & how

to claim the Medical Benefits and cash benefits whenever required.

Factory Registration

Registration of a factory/establishment with the Employees' State Insurance Corporation is a

statutory responsibility of the employer under Section 2-A of the Act read with Regulation

10-B. The employer, in respect of a factory/establishment to which the Act applies for the

first time, is liable to furnish Declaration of Registration in Form 01 (Employers' Registration

Form) to the concerned Regional / Sub Regional Office  within 15 days after the Act becomes

applicable.

This is obligatory on the part of the Employer. In addition to this, the employer will have to

indicate, in a separate sheet, the name and address of the factory/establishment, number of

employees, nature of duty and name, designation and address of the Manager, controlling

such persons in respect of any other office(s) situated outside the premises of the Factory/

Establishment.

Procedure for Registration of Factories

Step 1: Ascertain whether your factory / establishment is situated within the area of

implementation by ESIC (Implemented area). Regional Office, Sub Regional Office, Branch

Offices, and Inspectorates Office of ESIC will guide you, on this matter, if contacted.

Step 2: It is statutory responsibility of the employer to get his factory registered under the

ESI as per Section 2A of the Act, read with Regulation 10 B within 15 days of establishing or

15 days after the Act becomes applicable to the area in which the factory is situated. A

declaration of registration in Form 01 (Employer’s Registration form) is to be submitted to

the appropriate office (Regional Office, ESI Corporation, Chennai in your case) for the

purpose.

Step 3: The Sub Regional Office will allot a specific code number in Form C-11, after

examining the aspect of coverage. This number so allotted is very specific for the employer

and the same has to be used in all correspondence with ESIC. The area Branch Office to

which the particular employer attached is the “Appropriate Office” for “Registration of

Employees”. List of Branch Offices and Dispensaries under the Coimbatore Sub Region is

furnished in a separate Booklet.

Sub Code Number: There may be a case where the employer is having the main factory /

establishment at one station and sub-unit, branch office, sales office or registered office at

another station, either within the State or outside the State; In all such cases, on request of the

employer to the Regional Office / Sub Regional Office concerned, Sub-Code number is

allotted to each sub-unit, branch office, sales office and registered office.

Contributions

Contribution is the amount payable to the Corporation by the Principal Employer in respect

of an employee and comprises the amount payable by the employee and the employer.

It is obligatory on the part of the employer to calculate and remit ESI Contribution

comprising of employers' share 4.75% plus employees' share of 1.75% which is payable on or

before 21st of the following month, to the month to which the salary relates. If the employee

is drawing upto Rs.70/- as daily average wage, he is exempt from the payment of his share of

contribution. The employer is however to pay employer's share of 4.75% of the salary

received/receivable by the employee.

Return of Contributions

The RCs should be prepared in quadruplicate and submitted to the appropriate Branch Office

within 42 days of the expiry of the contribution period (12th May or November 11th of each

year).

Return of contribution is required to be submitted separately for the main Code Number and

each sub-code number. It is in the interest of the employer to make compliance in respect of

the sub-unit, branch office, sales office, registered office etc. independent of the compliance

being made in respect of the main unit. 

Where the employer prefers to make compliance from the parent unit, he may submit only

one return in respect of all the branches. The single return in such cases will be accepted at

the concerned Branch Office to which the parent unit is attached. Such employers are also

advised to ensure that names of Branch Offices to which the Return pertains should be

distinctly noted in the return so as to facilitate their expeditious onward transmission to those

Branch Offices and also to avoid undue inconvenience to their Insured Persons.

Such employers also may submit return of contributions in respect of each branch office/sales

office separately along with copies of remittance challans in support of payment of

contributions in respect of the employees of each branch office to the parent Branch Office.

On the other hand, where the employer prefers to make compliance through their Branch

Offices/ Sales Offices separately in the Regions where such offices etc. are located, the RC

may be submitted by the Branch office to the concerned Branch Offices and there will be no

difficulty in subsequent receipt of benefits.

Branch Office while acknowledging the RC for the half year will return one copy of RCs to

the employer. Place this RC in ESI file of the employer & produce the same before the

Inspecting Officer/ Insurance Inspector who comes for Inspection, which is a statutory one.

Recovery of Contributions

In the first instance the Principal Employer is to pay employers' share of contribution in

respect of every employee whether employed directly or through immediate employer. The

employees' share may thereafter, be recovered by making deduction from their wages for the

wage period for which contribution is, however is payable. No such deduction may be made

from any wages other than those relating to the period in respect in which contribution is

payable.

Contribution Period and Benefit Period

There are two contribution periods each of six months duration and two corresponding

benefit periods also of six months duration as under.

Contribution period       Corresponding Cash Benefit period

1st April to 30th Sept.         1st January of the following year to 30th June

1st Oct. to 31st March        1st July to 31st December of the year following

Benefits

The section 46 of the Act envisages following six social security benefits.

(a) Medical Benefit

(b) Sickness Benefit (SB)

Extended sickness Benefit(ESB)

Enhanced Sickness Benefit

(c) Maternity Benefit (MB)

(d) Disablement Benefit

Temporary disablement benefit(TDB)

Permanent disablement benefit(PDB)

(e) Dependants’ Benefit (DB)

(f) Funeral Expenses: An amount of Rs. 5000/- is payable to the dependents or to the person

who performs last rites.

(g) Rajiv Gandhi Shramik Kalyan Yojana: This scheme of Unemployment allowance was

introduced w.e.f. 01-04-2005.  An Insured Person who become unemployed after being

insured three or more years, due to closure of factory/establishment, retrenchment or

permanent invalidity are entitled to

Unemployment Allowance equal to 50% of wage for a maximum period of upto one

year.

Medical care for self and family from ESI Hospitals/Dispensaries during the period IP

receives unemployment allowance.

Vocational Training provided for upgrading skills - Expenditure on fee/travelling

allowance borne by ESIC.

An interesting feature of the ESI Scheme is that the contributions are related to the paying

capacity as a fixed percentage of the workers wages, whereas, they are provided social

security benefits according to individual needs without distinction.

Cash Benefits are disbursed by the Corporation through its Local Offices LOs/ Mini Local

Offices (MLOs)/Sub Local Offices SLOs)/pay offices, subject to certain contributory

conditions.

In addition, the scheme also provides some other need based benefits to insured workers.

These include:

Rehabilitation allowance

Vocational Rehabilitation

Medical Benefits

Type of Medical Benefits Provided

The Employees’ State Insurance Scheme provides full medical care in the form of medical

attendance, treatment, drugs and injections, specialist consultation and hospitalization to

insured persons and also to members of their families where the facility for Specialist

consultation, hospitalization has been extended to the families.

For the families, this benefit has been divided into two categories as under:

Full Medical Care: This consists of hospitalization facilities and includes specialist services,

drugs and dressings and diets as required for in-patients.

Expanded Medical Care: This consists of consultation with the specialists and supply of

special medicines and drugs as may be prescribed by them in addition to the out-patient care.

This also includes facilities for special laboratory tests and X-Ray examinations.

Apart from the curative services provided through hospitals and dispensaries, the Corporation

also provides the following facilities including family welfare services.

Immunization

The Corporation has embarked upon a massive programme of immunization of young

children of insured persons. Under this programme, preventive inoculation and vaccines are

given against diseases like diphtheria, pertusis, polio, tetanus, measles, mumps, rubella,

tuberculosis etc.

Family Welfare Services

Along with the immunization programme, the Corporation has been undertaking provision of

family Welfare Services to the beneficiaries of the Scheme. The Corporation has organized

these services in 180 centres besides reserving 330 beds in hospitals for undertaking

tubectomy operations. So far, 828976 sterilization operation viz. 176197 vasectomies and

652779 tubectomies have been performed upto 31.3.1999. The ESI Corporation has also

extended additional cash incentive to insured persons to promote acceptance of sterilization

method by providing sickness cash benefit equal to full wage for a period of 7 days for

vasectomy and 14 days for tubectomy. The period for which cash benefit is admissible is

extended beyond the above limits in the event of any complications after Family Planning

operations.

Supply of Special Aids

Insured persons and members of their families are provided artificial limbs, hearing aids, and

artificial appliances like spinal supports, cervical collars, walking calipers, crutches, wheel

chairs and cardiac pace makers as a part of medical care under the Scheme.

Sickness Benefits

Sickness Benefit represents periodical cash payments made to an IP during the period of

certified sickness occurring in a benefit period when IP requires medical treatment and

attendance with abstention from work on medical grounds. Prescribed certificates are; Forms

8,9,10,11 & ESIC-Med.13. Sickness benefit is roughly 60% of the average daily wages and is

payable for 91 days during 2 consecutive benefit periods.

Qualifying Conditions

(i) To become eligible to Sickness Benefit, an IP should have paid contribution for

not less than 78 days during the corresponding contribution period.

(ii) A person who has entered into insurable employment for the first time has to wait

for nearly 9 months before becoming eligible to sickness benefit, because his

corresponding benefit period starts only after that interval.

(iii) Sickness Benefit is not payable for the first two days of a spell of sickness except

in case of a spell commencing within 15 days of closure of earlier spell for which

sickness benefit was last paid. This period of 2 days is called "waiting period".

This provision should be clearly understood by IMOs/IMPs as actual experience

shows that such of IPs who want to avail medical leave on flimsy grounds

generally come for First Certificate/First & Final Certificate within 15 days of

earlier spell, usually on unpaid holidays and/or on each weekly off etc, to avoid

loss of benefit for 2 days due to fresh waiting period.

Extended Sickness Benefit (ESB)

IPs suffering from long term diseases were experiencing great hardship on expiry of 91 days

Sickness benefit. Often they, though not fit for duty, pressed for a Final certificate. Hence, a

provision for paying Sickness Benefit for an extended period (Extended Sickness Benefit)of

upto 2 years in a ESB period of 3 years.

An IP suffering from certain long term diseases is entitled to ESB, only after exhausting

Sickness Benefit to which he may be eligible. A common list of these long term diseases for

which ESB is payable, is reviewed by the Corporation from time to time. The list was last

reviewed on 5.12.99 and revised provisions of ESB became effective from 1.1.2000 and at

present this list includes 34 diseases which are grouped in 11 groups as per International

Classification of diseases and theo names of many existing diseases have been changed as

under

I Infectious Diseases

1. Tuberculosis

2. Leprosy

3. Chronic Empyema

4. AIDS

II Neoplasms

5. Malignant Diseases  

III Endocrine, Nutritional and Metabolic Disorders

6. Diabetes Mellitus-with proliferative retinopathy/diabetic foot/nephropathy.

IV Disorders of Nervous System

7. Monoplegia

8. Hemiplegia

9. Paraplegia

10. Hemiparesis

11. Intracranial Space Occupying Lesion

12. Spinal Cord Compression

13. Parkinson’s disease

14. Myasthenia Gravis/Neuromuscular Dystrophies

V Disease of Eye

15. Immature Cataract with vision 6/60 or less

16. Detachment of Retina

17. Glaucoma

VI Diseases of Cardiovascular System

18. Coronary Artery Disease:-

a. Unstable Angina

b. Myocardial infraction with ejection less than 45%  

1. Congestive Heart Failure- Left , Right

2. Cardiac Valvular Diseases with failure/complications

3. Cardiomyopathies

Heart disease with surgical intervention alongwith complications

VII Chest Diseases

Bronchiectasis

Interstitial Lung Disease

Chronic Obstructive Lung Diseases (COPD) with congestive heart failure (Cor Pulmonale)

VIII Diseases of the Digestive System

Cirrhosis of liver with ascities/chronic active hepatitis

IX Orthopaedic Diseases

Dislocation of vertebra/prolapse of intervertebral disc

Non union or delayed union of fracture

Post Traumatic Surgical amputation of lower extremity

Compound fracture with chronic osteomyelitis

X Psychoses

Sub-group under this head are listed for clarification

Schizophrenia

Endogenous depression

Manic Depressive Psychosis (MDP)

Dementia

XI Others

More than 20% burns with infection/complication

Chronic Renal Failure

Reynaud’s disease/Burger’s disease

In addition to the above list, Director General/Medical Commissioner are authorised to

sanction ESB for a maximum period upto 730 in cases of rare but treatable diseases or under

special circumstances, such as, adverse reaction to drugs which have not been included in the

above list, depending on the merits of each case, on the recommendations of RDMC/AMO or

either authorised officers runniong the medical scheme.

To be entitled to the Extended Sickness Benefit an Insured Persons should have been in

continuous employment for 2 years or more at the beginning of a spell of sickness in which

the disease is diagnosed and should also satisfy other contributory conditions.

ESB shall be payable for a period of 124 days initially and may be extended up to 309 days in

chronic suitable cases by Regional Dy. Medical Commissioner/Medical

Referee/Administrative Medical Officer/Chief Executive of the E.S.I. Scheme in the State or

his nominee on the report of the specialist(s).

Enhanced Sickness Benefits

It was introduced w.e.f 1.8.1976 as an incentive to IPs/IWs for undergoing Vasectomy

/Tubectomy. Insured Persons eligible to ordinary sickness benefit are paid enhanced sickness

benefit at double the rate of sickness benefit i.e., about full average daily wage for

undergoing sterilisation operations for family welfare. Duration of enhanced Sickness

Benefits is upto 7 days in the case of Vasectomy and upto 14 days in the case of the

Tubectomy from the date of operation or from the date of admission in the hospital as the

case may be. The period is extendable in case of post operative complications.

Maternity Benefit

Maternity Benefit is payable to an Insured Woman in the following cases subject to

contributory conditions:

Confinement-payable for a period of 12 weeks (84 days) on production of Form 21 and 23.

Miscarriage or Medical Termination of Pregnancy (MTP)-payable for 6 weeks (42 days)

from the date following miscarriage-on the basis of Form 20 and 23.

Sickness arising out of Pregnancy, Confinement, Premature birth-payable for a period not

exceeding one month-on the basis of Forms 8, 10 and 9.

In the event of the death of the Insured Woman during confinement leaving behind a child,

Maternity Benefit is payable to her nominee on production of Form 24 (B).

Maternity benefit rate is double the Standard Benefit Rate, or roughly equal to the average

daily wage.

Disablement Benefit

Temporary Disablement Benefit

TDB is payable to an employee who suffers employment injury (EI) or Occupational Disease

and is certified to be temporarily incapable to work. "Employment Injury" has been defined

under Section 2(8) of the Act, as a personal injury to an employee caused by accident or

occupational disease arising out of and in the course of his employment, being in insurable

employment, whether the accident occurs or the occupational disease is contracted within or

outside the territorial limits of India.

Certificates Required for TDB: Accident Report in form 16, Form 8, 9, 10, 11 and ESIC

Med.13

Eligibility for TDB: The benefit is not subject to any contributory conditions. An IP is

eligible from the day he joins the insurable employment. TDB Rate is 40% over and above

the normal sickness benefit rate. This works out to nearly 85% of the average daily wages.

Duration of TDB: There is no prescribed limit for the duration of TDB. This is payable as

long as temporary disablement lasts and significant improvement by treatment is possible. If

a Temporary Disablement spell lasts for less than 3 days (excluding day of accident), IP will

be paid sickness benefit, if otherwise eligible. A special point for IMOs/IMPs is that some IPs

may resist taking a Final Certificate especially before 3 days for fear of loss of TDB.

Permanent Disablement Benefit

(a) PDB is payable to an IP who suffers permanent residual disablement as a result of EI

(including Occupational Diseases) and results in loss of earning capacity. The proper

authority for assessing loss of earning capacity for injuries is the Medical Board and for

Occupational Diseases, Special Medical Board.

(b) The duration of PDB may be for the period given by Medical Board, if assessment is

provisional or for entire life if assessment is final.

(c) PDB Rate: The PDB rate is calculated as percentage of loss of earning capacity as

assessed by the Medical Board/MAT/EI Court in relation to TDB. List of injuries deemed to

result in permanent total disablement and percentage loss of earning capacity has been

previewed in 2nd Schedule to ESIC Act, 1948. Hence, the maximum rate of PDB can be equal

to the rate of TDB. PDB amount is revised by the ESIC from time to time to adjust for

inflation. The latest enhancement is with effect from 01.08.2002

(d) Commutation of PDB (Regulation 76-B): IP whose PDB has been assessed as final and

who has been awarded the same at the rate not exceeding Rs.1.50 per day may apply for

commutation of periodical payments of PDB into a lump-sum. When an application for

commutation is made within 6 months of the date of communication of Medical Board

decision periodical payments shall be commuted into a lump sum provided the total

commuted value does not exceed Rs.10,000 at the time of commencement of final award.

However, where such an application is made after expiry of 6 months, LO/RO will refer the

case to MR/PTMR to certify whether the IP has an average expectation of life for his age.

Such a certificate is issued by Medical Referee in the relevant place on RO/LO letter.

(e) Age of an IP will have to be proved to the satisfaction of the Corporation in all cases.

Medical Boards assess the age of IPs who are not able to produce satisfactory proof of age

and opinion of Medical Board shall be final in this regard.

Dependants’ Benefit

The Dependants’ benefit is payable to the dependants as per Section 52 of the Act read with

provision of 6(A) of Section 2 in cases where an IP dies as result of EI. The age of

dependants, has to be determined either by production of Documentary evidence as specified

in Regulation 80(2) or Age certified by Medical Officer In charge of Government Hospital or

Dispensary. The minimum rate of DB w.e.f 1.1.90 is Rs.14/- per day and these rates of the

DB are increased from time to time. The latest enhancement is with effect from 01.08.2002.

3.2 RESEARCH STUDIES

Sharma Arvind K (1998), in his article titled, “Factors affecting satisfaction from Employees’

State Insurance Corporation Hospital’s Service” discussed: The study revealed that the overall

satisfaction of beneficiaries with hospital outdoor patient department services was only 44 per

cent while their satisfaction with medical care at hospital outdoor patient department was

high 92 per cent. The overall satisfaction of beneficiaries from hospital indoor services was

80 per cent while it was 70 per cent in case of beneficiaries utilizing casualty services. The

study further revealed that the doctors were not satisfied with various facilities provided by

the hospitals and the administrators did not agree with all the problems stated by the

beneficiaries but they felt that a lot to be done. Considering various suggestions made by the

beneficiaries, doctors and administrators to improve the ESI hospital services, various

recommendations are made in this paper for appropriate action.

Sharma RK and Prasad PVV (1996), in their article titled, “A study on accident and

emergency services of ESI Hospital New Delhi. Health Population: Perspectives &

Issues” discussed: This paper attempts to analyse the changes in the organisational set-up and

management practices in order to improve the operational efficiency of A&E department of

ESI Hospital, New Delhi. There were a number of organisational flaws which need to be

corrected and most of the managerial practices have to be changed drastically to suit the

policies and standards spelt out by different committees from time to time. Both qualitative

and quantitative services can be improved within the available resources if appropriate

changes are brought out.

Latha, K and Anand TR (1988), in their article titled, “Evaluative study of different

contraceptive services rendered at various hospital in Delhi” discussed: Evaluates and

compares the contraceptive services rendered through three different hospitals viz. Lady

Hardinge Hospital, Kapoor Memorial Hospital and ESI Hospital run by different

organisations and catering to various categories of beneficiaries. Scrutinises the various

aspect of organisation and implementation of the programmes, and evaluates the

contraceptive acceptance, within the practical confines of time and manpower. Observes that

all the three hospitals had shortage of space and presents elaborately the qualitative

evaluative and quantitative.

Mathur N and Sharma KKR (1988), in their article titled, “Medico-Economic Implications

of Industrial Hand Injuries in India”, discussed: 625 five consecutive cases of industrial

hand injuries attending the Employee’s State Insurance Hospital, Jaipur, have been studied

from 1983 to October 1986. The incidence of injuries was 361 per 10,000 workers per year.

47% were due to entrapment of the hand in active machines, 25% occurred during lifting and

transportation of heavy objects and 12% while handling tools. The injuries resulted in

residual deficit in 55% of cases and were serious enough to require absence from work of

more than four weeks in 48% of cases. On an average 35 days were lost per injure worker.

The average economic loss per injured worker was Rs. 6900 (approximately £275) for

workers in the wage-range of Rs. 5400 to 19,200 (£216 to £768) per annum.

Ramani KV (2002), in her article titled, “E-governance for ESI Hospitals Costing of

Medical Services at ESI Hospital, Bapunagar” discussed, “The Employees State Insurance

Corporation (ESIC) of India is one of the largest social security organizations providing

medical insurance cover and delivering of medical care to 35 million beneficiaries through

140 hospitals and 1500 dispensaries. The objectives of this study are to understand the

costing of medical care at ESI hospitals and suggest systems for e-governance to facilitate the

coordination between ESIC, ESIS and the beneficiaries. Towards this, we selected a large

ESI hospital, namely, the ESI General Hospital at Bapunagar, Ahmedabad and gained very

useful insights about the systems currently in practice for offering medical benefits to the

insured persons and their beneficiaries. This working paper brings out our detailed analysis of

the working of ESI hospital, Bapunagar in delivering medical care under the ESI scheme.”

Kannan KP and Vijayamohanan Pillai N, in their article titled, “Social Security in India:

The Long Lane Treaded and the Longer Road Ahead towards Universalization”,

discussed: This paper is part of a large study on the Social Protection in Rural India and

China. In this paper, we attempt at a critical appraisal of the historical development and

experience of social security initiatives at the all India level. Based on the findings of the

review, we visualize a road map to a more comprehensive and participatory initiatives in

provision of social security by the state, while stressing the role of the civil society, non-

governmental organizations and mass organizations. It is also attempted to categorize the on-

going social security schemes according to the definitional framework of our study, that is, in

terms of the definitional division of social security into basic and contingent social security.

CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

4.1 AGE

Age factor influence the type of benefits availed and the opinion and satisfaction on the ESI

scheme. Therefore, age of the respondents was studied and analyzed by classifying it into

three groups based on quartile division. Table no. 1 shows the age of the respondents.

TABLE 1

DETAILS OF AGE GROUP

S.No Age (in years) Frequency Percent

1 Below 23 23 28.8

2 23-32 32 40.0

3 Above 32 25 31.3

4 Total 80 100.0

The Table 1 shows that the majority (40%) of the respondents was under 23 – 32 years age

group and the minority (28.8%) was the age of below 23. The obvious implication of this

finding is the dominance of youths in the company.

4.2 GENDER

Gender is another demographic factor which shows the variations and importance given by

the company in selecting their employees. Gender also influences the type of benefits availed

by the respondent. Table 2 shows the Gender of the respondent.

TABLE 2

GENDER OF THE RESPONDENT

S.No Sex Frequency Percent

1 Male 19 23.8

2 Female 61 76.3

3 Total 80 100.0

The Table 2 showed that 76.3% of respondents were Female and 23.8% of respondents were

Male members. It implies that the female has the dominance in the company than the male

member.

4.3 MARITAL STATUS

The Marital Status is an important factor which influences the availing of different type of

ESI benefits. The Marital status of the respondent may determine the availing of Maternity

benefit which is a special benefit given only for married women. The Table 3 shows the

Marital Status of the respondents.

TABLE 3

MARITAL STATUS

S.No Marital Status Frequency Percent

1 Married 25 31.3

2 Unmarried 55 68.8

3 Total 80 100.0

The Table 3 showed that 68.8% of respondents were unmarried and the remaining 31.3% of

respondents were married.

4.4 EDUCATION

Educational Qualification of the respondent has its impact on the opinion and satisfaction

about the ESI Schemes. It may also influence the usage of ESI benefits. The Table 4 shows

the Educational Qualification of the respondents.

TABLE 4

EDUCATIONAL QUALIFICATION

S.No Education Frequency Percent

1 Below 7th 34 42.5

2 7th – 9th 19 23.8

3 Above 9th 27 33.8

4 Total 80 100.0

The above Table 4 shows that the majority (42.5%) of respondents studied only below 7th

standard and the minority (23.8%) of respondents completed their school education between

7th and 9th.

4.5 ESI DEDUCTION

ESI Contribution comprising of employers’ share 4.75% plus employees’ share 1.75% will be

calculated and paid by the employer every month. If the employee is drawing upto Rs. 70 as

daily average wage, he is exempt from the payment of his share of contribution. So, the

awareness about this deduction of amount for the ESI was studied among the respondents and

analyzed descriptively. The Table 5 shows the Awareness of the respondent about the ESI

deduction.

TABLE 5

AWARENESS ABOUT DEDUCTION

S.No Awareness Frequency Percent

1 Aware 71 88.8

2 Unaware 9 11.3

3 Total 80 100.0

The above Table 5 shows that 88.8% of respondents were aware about the percentage of

amount deducted from their pay. The minority of (11.3%) respondents were not aware about

the percentage of amount deducted for the ESI scheme.

4.6 HEALTH CARE

Healthcare is an institution that provides preventive, curative, promotional or rehabilitative

health care services in a systematic way to individuals, families or communities. Hospitals

are distinguished from other types of medical facilities by their ability to admit and care for

inpatients whilst the others often are described as clinics. The different types of Hospitals

include General, District, Specialized, Teaching and Clinics. The general treatment place of

the respondent when they become sick are studied and descriptively analyzed. The Table 6

shows the place of the treatment of the respondent.

TABLE 6

TREATMENT PLACE

S.No Treatment Place Frequency Percent

1 ESI Dispensary/Hospital 13 16.3

2 Government Hospital 22 27.5

3 Private Dispensary 23 28.8

4 Private Hospital 12 15.0

5 Others 10 12.5

6 Total 80 100.0

The Table 6 shows that the majority (28.8%) of respondents visited the Private Dispensary

when they become sick and 12.5% of respondents visited the other places for treatment. It

also shows that only 16.3% of respondents visit the ESI Dispensary/Hospital for treatment.

The 2nd top option for the place of treatment by the respondents is the Government Hospital

with 27.5% frequency.

4.7 ESI DISPENSARY/HOSPITAL

The respondent’s preference to go to the ESI Dispensary/Hospital for treatment and its reason

was studied and analyzed descriptively. The Table 7 shows the reason for going to ESI

Hospital/Dispensary and the Table 8 shows the reason for not going to ESI

Hospital/Dispensary.

TABLE 7

REASON FOR GOING TO ESI

S.No Reason Frequency Percent

1 No Answer 67 83.8

2 Proper Facilities Available 0 0

3 Good Infrastructure 0 0

4 Good Treatment 0 0

5 Free Treatment 13 16.3

6 Total 80 100.0

The Table 7 shows that the majority (16.3%) of respondents are going to ESI

Dispensary/Hospital only for the reason of Free Treatment. No one is going to ESI Hospital

for its facilities, infrastructure and Good Treatment. It also shows that the remaining 83.8%

of respondents do not at all prefer to go to ESI Dispensary/Hospital for treatment.

TABLE 8

REASON FOR NOT GOING TO ESI

S.No Reason Frequency Percent

1 No Answer 13 16.3

2 No Proper Facilities 18 22.5

3 Improper Treatment 30 37.5

4 Poor Infrastructure 9 11.3

5 Bribery Problem 4 5.0

6 Don't know where it is 3 3.8

7 Unaware about this 3 3.8

8 Total 80 100.0

The above Table 8 shows that the majority (37.5%) of respondents are not going to ESI

Dispensary/Hospital because of Improper Treatment. And the other major reasons next to this

are no proper facilities available in the ESI with 22.5% and poor infrastructure with 11.3%.

The minority (3.8%) of respondents don’t know where it is and unaware about the ESI

Dispensary/Hospital. The Table 8 also shows that only 16.3% of respondents are going to ESI

Dispensary/Hospital for treatment.

4.8 SERVICES AVAILED IN ESI

The Hospital services are classified into two categories. They are Outpatient Service and

Inpatient Service. Any type of hospital has these two types of services. Some patients go to a

hospital just for diagnosis, treatment or therapy and then leave ('outpatients') without staying

overnight; while others are 'admitted' and stay overnight or for several days or weeks or

months ('inpatients'). The type of services availed by the respondents in the ESI Hospital and

Other Hospital are studied and analyzed descriptively. The Table 9 shows the services availed

by the respondents.

TABLE 9

SERVICES AVAILED

S.No ServiceOutpatient Service Inpatient Service

Frequency Percent Frequency Percent

1 Not Availed 0 0 35 43.8

2 ESI Dispensary/Hospital 13 16.3 12 15.0

3 Other Hospital 67 83.8 33 41.3

4 Total 80 100.0 80 100.0

The above Table 9 shows that the majority (83.8%) of respondents was going to other

hospitals for availing the Outpatient Service and the minority (16.3%) of respondents was

going to ESI Dispensary/Hospital for availing the Outpatient Service. It also shows that the

majority (43.8%) of respondents never availed the Inpatient Service in any type of hospital

and only 41.3% of respondents availed the Inpatient Service in the other hospital. The

minority (15%) of respondents availed the Inpatient Service in the ESI Hospital.

4.9 FACILITIES OF ESI HOSPITAL

The Hospital facilities are classified into two categories. They are Primary Facilities and

Super Speciality Facilities. Not all hospitals have the Super Speciality Facilities. The type of

facilities availed in the ESI Hospital and Other Hospital are studied and analyzed

descriptively. The Table 10 shows the facilities availed by the respondents.

TABLE 10

FACILITIES AVAILED

S.No FacilitiesPrimary Facilities

Super Speciality Facilities

Frequency Percent Frequency Percent

1 Not Availed 0 0 71 88.8

2 ESI Dispensary/Hospital 13 16.3 2 2.5

3 Other Hospital 67 83.8 7 8.8

4 Total 80 100.0 80 100.0

The above Table 10 shows that the majority (83.8%) of respondents was going to other

hospitals for availing the Primary Facilities and the minority (16.3%) of respondents was

going to ESI Dispensary/Hospital for availing the Primary Facilities. It also shows that the

majority (88.8%) of respondents never availed the Super Speciality Facilities in any type of

hospital and only 8.8% of respondents availed the Super Speciality Facilities in the other

hospital. The minority (2.5%) of respondents availed the Super Speciality Facilities in the

ESI Hospital.

4.10 ESI BENEFITS AVAILED

The ESI Corporation provides six social security benefits, among that the major five ESI

benefits such as Medical Benefit, Sickness Benefit, Disablement Benefit, Dependants’

Benefit and Maternity Benefit are studied and analyzed descriptively. In addition to the six

social security benefits the scheme also provides some other need based benefits to insured

workers. But, that was not discussed in this study. The Table 11 shows the percentage of ESI

benefits availed by the respondents.

TABLE 11

PERCENTAGE OF ESI BENEFITS AVAILED

S.No ESI Benefits Availed Not Availed Total

1 Medical Benefit 14 (17.5%) 66 (82.5%) 80 (100%)

2 Sickness Benefit 69 (86.3%) 11 (13.8%) 80 (100%)

3 Disablement Benefit 0 (0%) 80 (100%) 80 (100%)

4 Dependants Benefit 47 (58.8%) 33 (41.3%) 80 (100%)

5 Maternity Benefit 1 (1.3%) 79 (98.8%) 80 (100%)

6 No Benefits Availed 9 (11.3%) 71 (68.7%) 80 (100%)

The above Table 11 shows that the majority (86.3%) of respondents availed the Sickness

Benefit followed by 58.8% of respondents availed the Dependants Benefit and 17.5% of

respondents availed the Medical Benefit. But only 1.3% of respondents availed the Maternity

Benefit from ESI. The table also shows that no one availed the Disablement Benefit ever in

their ESI membership period.

4.11 CHI-SQUARE TEST FOR GOODNESS OF FIT

To test the distribution of benefits availed by the respondent, Chi-Square test for goodness of

fit was used. The Hypothesis was formulated as follows.

H0: Benefits are equally distributed

H1: Benefits are not equally distributed

The result of Chi-Square Test is given in Table 12.

TABLE 12

CHI-SQUARE TEST FOR NUMBER OF BENEFITS AVAILED

S.No No. of benefits availed

No. of respondents Observed frequency (O)

Expected frequency (E)

p value

1 No Benefit 9 20.0

0.001**

2 One Benefit 25 20.0

3 Two Benefits 32 20.0

4 Three Benefits 14 20.0

5 Total 80Note: ** denotes significance at 1% level

Since p value is less than 0.01 the null hypothesis is rejected at 1% level of significance.

Hence, the number of respondents were not availed the benefits in equally distributed form.

4.12 OPINION ABOUT ESI BENEFITS

The respondent’s belief about the major five ESI Benefits are studied and analyzed

descriptively which is not necessarily based on fact or knowledge. The five benefits analyzed

are Medical Benefit, Sickness Benefit, Disablement Benefit, Dependants’ Benefit and

Maternity Benefit. It was studied in a five scale basis. The Table 13 shows the percentage of

opinion about the ESI Benefits.

TABLE 13

PERCENTAGE OF OPINION ABOUT ESI BENEFITS

S.No Opinion Medical Sickness Maternity Disablement Dependants

1 Poor 0 (0%) 0 (0%) 0 (0%) 1 (1.3%) 1 (1.3%)

2 Fair 5 (6.3%) 7 (8.8%) 15 (18.8%) 18 (22.5%) 15 (18.8%)

3 Good 29 (36.3%) 27 (33.8%) 36 (45.0%) 37 (46.3%) 33 (41.3%)

4 Very Good 35 (43.8%) 35 (43.8%) 21 (26.3%) 19 (23.8%) 25 (31.3%)

5 Excellent 11 (13.8%) 11 (13.8%) 8 (10.0%) 5 (6.3%) 6 (7.5%)

6 Total (100.0%) (100.0%) (100.0%) (100.0%) (100.0%)

The Table 13 shows that the majority (43.8%) of respondent’s opinion were Very Good about

the Medical Benefit and the Sickness Benefit. The majority (45%) of respondent’s opinion

were Good about the Maternity Benefit. The majority (46.3%) of respondent’s opinion was

Good about the Disablement Benefit and the majority (41.3%) of respondents opinion were

Good about the Dependants’ Benefit. The table also shows that the minority (1.3%) of

respondent’s opinion were Poor about the Dependants’ Benefit and Disablement Benefit. And

no one rated the Medical Benefit, Sickness Benefit and Maternity Benefit as poor.

4.13 LEVEL OF OPINION WITH RESPECT TO THE PHYSICAL PERFORMANCE

Young adulthood can be considered the healthiest time of life and young adults are generally

in good health, subject neither to disease nor the problems of senescence. Biological function

and physical performance reach their peak from 20-35 years of age. Flexibility also decreases

with age throughout adulthood. Therefore, based on the physical performance, the

respondent’s age was grouped into two categories. They are Lower Physical Performance for

the age above 35 and Higher Physical Performance for below 35. To test the significant

difference between the physical performances with regard to the level of opinion, t-test for

difference of two mean was applied. The Hypothesis was set as follows.

H0: There is no significant difference between the physical performances with regard

to the level of opinion

H1: There is a significant difference between the physical performances with regard

to the level of opinion

The result of Independent Sample t-Test is given in Table 14

TABLE 14

t - TEST FOR LEVEL OF OPINION AND PHYSICAL PERFORMANCE

S.No Physical Performance N Mean Std. Deviation t value p value

1 Higher 70 19.93 3.987-1.364 .176

2 Lower 10 21.90 6.045

Since p value is greater than 0.05 the null hypothesis is accepted at 5% level of significance

on physical performance. Hence, there is no significant difference between the physical

performances with regard to the level of opinion.

4.14 TEST OF OPINION ABOUT THE ESI BENEFITS

To test the opinion level of the respondents about the ESI benefits, t-Test for Single Mean

was applied. The Hypothesis was formulated as follows.

H0: The opinion level about the ESI benefits is equal to average level

H1: The opinion level about the ESI benefits is not equal to average level

The result of t-Test for the different ESI benefits is given in Table 15

TABLE 15

ONE SAMPLE t-TEST FOR THE OPINION ON ESI BENEFITS

Test value = 3

S.No Test Variable N Mean Std. Deviation t value df p value

1 Medical Benefit 80 3.65 0.797 7.293 79 0.000**

2 Sickness Benefit 80 3.63 0.832 6.715 79 0.000**

3 Maternity Benefit 80 3.28 0.886 2.778 79 0.007**

4 Disablement Benefit 80 3.11 0.871 1.155 79 0.252

5 Dependants’ Benefit 80 3.25 0.893 2.504 79 0.014* Note: ** denotes significance at 1% level, * denotes significance at 5% level

Since p value is less than 0.01 for Medical, Sickness and Maternity Benefit, the null

hypothesis is rejected at 1% level of significance. Hence it is concluded that the opinion level

for the Medical, Sickness and Maternity Benefits are not equal to average level.

Since p value is less than 0.05 for Dependants’ Benefit, the null hypothesis is rejected at 5%

level of significance. Hence it is concluded that the opinion level for the Dependants’ Benefit

is not equal to average level.

Since p value is greater than 0.05 for Disablement Benefit, the null hypothesis is accepted at

5% level of significance. Hence it is concluded that the opinion level for the Disablement

Benefit is equal to average level.

The Table 15 shows that the mean value for the opinion on different benefits was above the

test value 3. It suggests that the respondent’s opinion was better about the ESI benefits

4.15 ACCIDENTS AT WORK

Accidents are common in a manufacturing company. But, the intense and frequency of the

accident at work differs from the type of manufacturing industry and the type of work.

Accidents at work have its impact over the usage of specific social security benefits provided

by the ESIC. The respondents have met with any accidents at work are studied and analyzed

descriptively. The intense of accident is classified into two categories for the study. They are

Minor Accident and Major Accident. The Table 16 shows the intense and the frequency of

the accidents at work.

TABLE 16

ACCIDENTS AT WORK

S.No Accident Often Sometimes Never Total

1 Minor 0 (0%) 22 (27.5%) 58 (72.5%) 80 (100%)

2 Major 0 (0%) 0 (0%) 0 (0%) 0 (0%)

The Table 16 shows that no one met with any accident at work. All the respondents have

sometime or the other met with the minor accident at work.

4.16 ACCIDENT TREATED PLACE

If a respondent met with any accident at work then the accident must be treated immediately.

Depend upon the severity of the accident; the immediate treatment place will be selected by

the employer. So, the place of treatment was studied with five different classifications and

analyzed descriptively. The Table 17 shows the accident treated place.

TABLE 17

ACCIDENT TREATED PLACE

S.No Treatment Place Frequency Percent

1 Accidents Never Occurred 58 72.5

2 ESI Dispensary/Hospital 0 0

3 Government Hospital 0 0

4 Private Hospital 2 2.5

5 Company Referred Hospital 18 22.5

6 Others 2 2.5

7 Total 80 100.0

The above Table 17 shows that the majority (22.5%) of respondents who met with an

accident was treated at the Company Referred Hospital and only 2.5% of respondents were

treated at the Private Hospital and Others. It also shows that no one is treated at ESI

Dispensary/Hospital or Government Hospital for the accident occurred at work. The 72.5%

of respondents were never met with any accident at work.

4.17 MEDICAL PROBLEMS

The ESI Scheme provides full medical care in the form of medical attendance, treatment,

drugs and injections, specialist consultation and hospitalization to insured persons and also to

members of their families where the facility for Specialist consultation, hospitalization has

been extended to the families. The medical problems which become common among the

people of India such as Diabetic, Blood Pressure, and Heart Problem are studied among the

respondents and analyzed descriptively. The Table 18 shows the medical problems faced by

the respondents.

TABLE 18

MEDICAL PROBLEMS FACED

S.No Medical Problem Present Not Present Total

1 Diabetic 10 (12.5%) 70 (87.5%) 80 (100%)

2 Blood Pressure 17 (21.3%) 63 (78.8%) 80 (100%)

3 Heart Problem 9 (11.3%) 71 (88.8%) 80 (100%)

4 Others 16 (20%) 64 (80%) 80 (100%)

5 No Problem 0 (0%) 45 (56.3%) 45 (56.3%)

The Table 18 shows that the majority (21.3%) of respondents is facing the Blood Pressure

problem followed by 20% of respondents are facing the other medical problems, 12.5% of

respondents are facing the Diabetic problem and the minority of 11.3% of respondents are

facing the Heart problem. The above Table 18 shows that the majority (56.3%) of

respondents never have any medical problems.

4.18 SATISFACTION WITH THE ESI FACILITIES

The satisfaction of respondents with the facilities provided by the ESI Dispensaries/Hospitals

are studied and analyzed descriptively. The Table 19 shows the Level of Satisfaction on the

ESI Hospital facilities.

TABLE 19

LEVEL OF SATISFACTION ON ESI FACILITIES

S.No Satisfaction Level Frequency Percent

1 Highly Dissatisfied 12 15.0

2 Dissatisfied 35 43.8

3 Neutral 15 18.8

4 Satisfied 18 22.5

5 Highly Satisfied 0 0

6 Total 80 100.0

The above Table 19 shows that the majority (43.8%) of respondents is dissatisfied with the

ESI Facilities provided by the ESI Dispensaries/Hospitals followed by only 22.5% of

respondents are satisfied with the ESI Facilities, 18.8% of respondents remain Neutral in the

level of satisfaction and 15% of respondents are Highly Dissatisfied with the ESI

Dispensaries/Hospitals. It also shows that no respondent is Highly Satisfied with the ESI

Facilities.

4.19 COMPANY INVOLVEMENT

The involvement of the company management in helping out the respondents to claim the

ESI Benefits are studied and analyzed descriptively. The Table 20 shows the Company

Managements involvement in helping the respondents.

TABLE 20

COMPANY INVOLVEMENT

S.No Company Involvement Frequency Percent

1 Very Involved 5 6.3

2 Involved 37 46.3

3 Somewhat Involved 34 42.5

4 Not Involved 4 5.0

5 Not at all involved 0 0

6 Total 80 100.0

The above Table 20 shows that the majority (46.3%) of respondents consider that the

company is involved in helping out to claim the benefits followed by 42.5% of respondents

consider that the company is somewhat involved, 6.3% of respondents consider that the

company is very much involved and the least 5% of respondents consider that the company is

not involved in claiming the benefits. The table also shows that no one considers that the

company not at all involved in helping out to claim the benefits.

4.20 COMPANY SUPPORT FOR ESI

The Company Managements clear sense of direction to avail the ESI benefits are studied and

analyzed descriptively. The Table 21 shows the Level of Company Support.

TABLE 21

LEVEL OF COMPANY SUPPORT

S.No Company Support Frequency Percent

1 Strongly Disagree 0 0

2 Disagree 7 8.8

3 Neutral 16 20.0

4 Agree 45 56.3

5 Strongly Agree 12 15.0

6 Total 80 100.0

The above Table 21 shows that the majority (56.3%) of respondents agree that the company

provides a clear sense of direction to avail the benefits and the minority 8.8% of respondents

disagree with that. It also shows that the 20% of respondents remain neutral in commenting

about the company support and only 15% of respondents strongly agree the company support.

It shows that no respondent strongly disagrees the company support.

4.21 UNDERSTANDING THE ESI SCHEME

The level of difficulties faced in understanding the ESI benefits programme was studied

among the respondents and analyzed descriptively. The Table 22 shows the respondents

Level of Difficulty in understanding the ESI Scheme.

TABLE 22

LEVEL OF DIFFICULTY IN UNDERSTANDING ESI

S.No Difficulties Frequency Percent

1 Very Easy 0 0

2 Easy 16 20.0

3 Neutral 41 51.3

4 Difficult 23 28.8

5 Very Difficult 0 0

6 Total 80 100.0

The Table 22 shows that the majority (51.3%) of respondents remain neutral about the level

of difficulties they face in understanding the ESI Scheme followed by 28.8% of respondents

felt it was difficult and 20% of respondents felt it was easy to understand the ESI. It also

shows that no respondent felt very easy and very difficult in understanding the ESI benefits

programme.

4.22 NEW AMENDMENTS IN ESI SCHEME

The New Amendments in the ESI Scheme will come into effect periodically and it was

completely managed by the ESIC. Therefore, the Information on the new ESI Amendments

are passed to the respondents by the company are studied and analyzed descriptively. The

Table 23 shows the awareness created by the company about the new ESI Scheme.

TABLE 23

AWARENESS ON NEW ESI AMENDMENTS

S.No ESI Amendments Frequency Percent

1 Informed 16 20.0

2 Not Informed 64 80.0

3 Total 80 100.0

The Table 23 shows that the majority (80%) of respondents was not informed about the new

ESI amendments by the company and the minority (20%) of respondents was informed about

the new ESI amendments.

4.23 AWARENESS ABOUT THE ONLINE FACILITY

The awareness about the online facility of ESI Scheme among the respondents are studied

and analyzed descriptively.

TABLE 24

AWARENESS ABOUT THE ONLINE FACILITY

S.No Awareness Frequency Percent

1 Aware 0 0

2 Not Aware 80 100.0

The Table 24 shows that no respondent is aware about the online facility of the ESI Scheme.

4.24 COMPETENCY TO USE ONLINE FACILITY

The Level of competency to use the online facility among the respondents are studied and

analyzed descriptively. The Table 25 shows the Level of Competency of the respondent to

use the online facility of the ESI Scheme.

TABLE 25

LEVEL OF COMPETENCY

S.No Competency Level Frequency Percent

1 Highly Competent 0 0

2 Not Competent 59 73.8

3 Moderately Competent 21 26.3

4 Total 80 100.0

The Table 25 shows that the majority (73.8%) of respondents was not competent to use the

online facility and the minority (26.3%) of respondents responded that they were moderately

competent to use the online facility. It also shows that no respondent is highly competent to

use the online facility of the ESI Scheme.

4.25 OVERALL OPINION ABOUT THE ESI SCHEME

The overall opinion about the ESI Scheme among the respondents are studied and analyzed

descriptively. The Table 26 shows the respondents overall opinion about the ESI Scheme.

TABLE 26

OVERALL OPINION

S.No Opinion Frequency Percent

1 Excellent 11 13.8

2 Very Good 17 21.3

3 Good 34 42.5

4 Fair 18 22.5

5 Poor 0 0

6 Total 80 100.0

The Table 26 shows that the majority (42.5%) of respondents overall opinion were Good

about the ESI Scheme followed by 22.5% of respondents overall opinion were Fair, 21.3% of

respondents overall opinion were Very Good and the minority (13.8%) of respondents overall

opinion were Excellent about the ESI Scheme. It also shows that no respondent rated the

overall opinion as poor.

4.26 TEST OF SIGNIFICANT RELATIONSHIP BETWEEN THE SATISFACTION

AND THE OPINION OF THE RESPONDENT

To test the relationship between the overall satisfaction and opinion of the respondent with

regard to the ESI Scheme, Correlation test was used. So, the test variables were the overall

satisfaction and the overall opinion. Correlation test was applied to establish the qualitative

relationship between these two variables and thereby it is possible to find the direction of

relationship between the variables.

H0: There is no relationship between the overall satisfaction with regard to the ESI

Scheme and the overall opinion

H1: There is a relationship between the overall satisfaction with regard to the ESI

Scheme and the overall opinion

The result of Correlation Analysis is given in Table 27.

TABLE 27

CORRELATION BETWEEN OVERALL SATISFACTION AND OPINION

S.No Variable Correlation Value (Pearson Correlation) p value

1 Overall Satisfaction0.287** 0.010

2 Overall Opinion ** Correlation is significant at the 0.01 level (2-tailed).

Since p value is 0.01, the null hypothesis is rejected at 1% level of significance. Hence, there

is a relationship between the overall satisfaction with regard to the ESI Scheme and the

overall opinion. The Correlation square between the overall satisfaction with regard to the

ESI Scheme and the overall opinion is 0.287 which indicates 28.7% positive relationship

between them.

Since the relationship is positive, if the Overall Satisfaction of the ESI Scheme increases then

the Opinion about the ESI Scheme also increases.

4.27 TEST OF SIGNIFICANT RELATIONSHIP BETWEEN THE ORGANIZATION

SUPPORT AND THE SATISFACTION OF THE RESPONDENT

To test the relationship between the organization support and the overall satisfaction of the

respondent with regard to the ESI Scheme, Correlation test was used. So, the test variables

were the organization support and overall satisfaction. Correlation test was applied to

establish the qualitative relationship between these two variables and thereby it is possible to

find the direction of relationship between the variables.

H0: There is no relationship between the organization support and the overall

satisfaction with regard to the ESI Scheme

H1: There is a relationship between the organization support and the overall

satisfaction with regard to the ESI Scheme

The result of Correlation Analysis is given in Table 28.

TABLE 28

CORRELATION BETWEEN ORGANIZATION SUPPORT AND THE OVERALL

SATISFACTION

S.No Variable Correlation Value (Pearson Correlation) p value

1 Organization Support0.520** 0.000

2 Overall Satisfaction ** Correlation is significant at the 0.01 level (2-tailed).

Since p value is less than 0.01, the null hypothesis is rejected at 1% level of significance.

Hence, there is a relationship between the organization support and the overall satisfaction

with regard to the ESI Scheme. The Correlation square between the overall satisfaction with

regard to the ESI Scheme and the organization support is 0.520 which indicates 52% positive

relationship between them.

Since the relationship is positive, if the organization support increases then the Overall

Satisfaction about the ESI Scheme also increases.

4.28 SATISFACTION ON COMPANY BENEFITS

The level of satisfaction on the benefits received by the respondent from the company was

studied and analyzed descriptively. The Table 29 shows the Level of Satisfaction on

Company Benefits.

TABLE 29

LEVEL OF SATISFACTION ON COMPANY BENEFITS

S.No Satisfaction Level Frequency Percent

1 Highly Satisfied 13 16.3

2 Satisfied 38 47.5

3 Neutral 20 25.0

4 Dissatisfied 9 11.3

5 Highly Dissatisfied 0 0

6 Total 80 100.0

The Table 29 shows that the majority (47.5%) of respondents are satisfied with the company

benefits followed by 25% of respondents remains neutral, 16.3% of respondents are highly

satisfied and only 11.3% of respondents are dissatisfied with the company benefits. It also

shows that no respondent is highly dissatisfied with the company benefits.

4.29 ONE WAY ANOVA TEST FOR FINDING THE SIGNIFICANT DIFFERENCE

BETWEEN THE SATISFACTION AND AGE GROUP

To test the significant difference between age group with regard to the satisfaction with the

ESI Scheme, one way ANOVA test also known as F test was used.

H0: There is no significant difference between age group with regard to the

satisfaction with the ESI Scheme

H1: There is a significant difference between age group with regard to the satisfaction

with the ESI Scheme

The result of the ANOVA analysis is given in Table 30.

TABLE 30 ANOVA – TOTAL SATISFACTION AND AGE GROUP

S.No Groups Sum of Squares df Mean Square f value p value

1 Between Groups 10.626 2 5.313

3.173 .047*2 Within Groups 128.924 77 1.674

3 Total 139.550 79 Note: * denotes significance at 5% level

Since p value is less than 0.05 the null hypothesis is rejected at 5% level of significance on

age group. Hence, there is a significant difference between age group with regard to the

satisfaction with the ESI Scheme. Hence, descriptive statistics was used to find the

satisfaction of the ESI Scheme best described by the respondents. The Table 31 shows the

Descriptive Statistics.

TABLE 31 DESCRIPTIVE STATISTICS FOR AGE GROUP

S.No Age Group N Mean Std. Deviation

1 Below 23 23 6.13 0.968

2 23 – 32 32 5.81 1.401

3 Above 32 25 6.68 1.406

4 Total 80 6.18 1.329The Table 31 indicates that the variable ’above 32’ has the highest mean value of 6.68. This

suggests that the respondents of age group above 32 are satisfied with the ESI Schemes than

other age group respondents.

4.30 LEVEL OF SATISFACTION WITH RESPECT TO THE AGE GROUP

To test the association between the age group and the level of satisfaction, Chi-Square test

was applied.

H0: There is no significant association between the Age Group and the Level of

Satisfaction

H1: There is a significant association between the Age Group and the Level of

Satisfaction

The result of the Chi-Square Cross tabulation Analysis is given in Table 32

TABLE 32

CROSSTABS BETWEEN AGE GROUP AND SATISFACTION LEVEL

S.No Age Group FrequencyLevel of Satisfaction

TotalChi-Square

Valuep value

Low Moderate High

1 Below 23Observed 5 11 7 23

10.165 0.038*

Expected 7.8 6.0 9.2 23.0

2 23 – 32Observed 15 5 12 32

Expected 10.8 8.4 12.8 32.0

3 Above 32Observed 7 5 13 25

Expected 8.4 6.6 10.0 25.0

4 TotalObserved 27 21 32 80

Expected 27.0 21.0 32.0 80.00 cells (.0%) have expected count less than 5. The minimum expected count is 6.04.

Since p value is lesser than 0.05 the null hypothesis is rejected at 5% level of significance.

Hence, there is a significant association between the Age Group and the Level of Satisfaction.

4.31 PACKAGE AND EMPLOYEE MOTIVATION

The Level of motivation from the benefits package received by the respondent from the

company are studied and analyzed descriptively. The Table 33 shows the level of motivation

gained by the respondent from the benefits package.

TABLE 33

LEVEL OF MOTIVATION

S.No Motivation Level Frequency Percent

1 Not Motivated 16 20.0

2 Moderately Motivated 39 48.8

3 Highly Motivated 25 31.3

4 Total 80 100.0

The Table 33 shows that the majority (48.8%) of respondents is moderately motivated with

the benefits package followed by 31.3% of respondents are highly motivated and the minority

(20%) of respondents are not motivated with the benefits package.

4.32 ONE WAY ANOVA TEST FOR FINDING THE SIGNIFICANT DIFFERENCE

BETWEEN THE SATISFACTION AND MOTIVATION

To test the significant difference between motivation with regard to the satisfaction with the

ESI Scheme, one way ANOVA test also known as F test was used.

H0: There is no significant difference between motivation with regard to the

satisfaction with the ESI Scheme

H1: There is a significant difference between motivation with regard to the

satisfaction with the ESI Scheme

The result of the ANOVA analysis is given in Table 34.

TABLE 34 ANOVA – TOTAL SATISFACTION AND MOTIVATION

S.No Groups Sum of Squares df Mean Square f value p value

1 Between Groups 36.573 2 18.287

13.674 0.000**2 Within Groups 102.977 77 1.337

3 Total 139.550 79 Note: ** denotes significance at 1% level

Since p value is less than 0.01 the null hypothesis is rejected at 1% level of significance on

motivation. Hence, there is a significant difference between motivation with regard to the

satisfaction with the ESI Scheme. Hence, descriptive statistics was used to find the

satisfaction of the ESI Scheme best described by the respondents. The Table 35 shows the

Descriptive Statistics.

TABLE 35 DESCRIPTIVE STATISTICS FOR MOTIVATION

S.No Motivation N Mean Std. Deviation

1 Not Motivated 16 4.88 0.619

2 Moderately Motivated 39 6.33 1.177

3 Highly Motivated 25 6.76 1.363

4 Total 80 6.18 1.329The Table 35 indicates that the variable ’Highly Motivated’ has the highest mean value of

6.76. This suggests that the respondents who are Highly Motivated are satisfied with the ESI

Schemes than other respondents.

CHAPTER 5

FINDINGS, SUGGESTION AND CONCLUSION

5.1 FINDINGS

1. The majority of the respondents (40%) were under 23 – 32 years age group. The

obvious implication of this finding is the dominance of youths in the company.

2. It was found that the 76.3% of respondents were female and 23.8% of respondents

were male members. It implies that the female has the dominance in the company

than the male member.

3. Most of the respondents (68.8%) were unmarried.

4. The majority of respondents (42.5%) studied only below 7th standard.

5. Most of the respondents (88.8%) were aware about the deduction for the ESI scheme.

6. When the respondents become sick, majority of them (28.8%) visited the Private

Dispensary.

7. The majority of respondents (16.3%) were going to ESI Dispensary/Hospital only for

the reason of Free Treatment. It was found that the 83.8% of respondents do not at all

prefer to go to ESI Dispensary/Hospital for treatment.

8. The majority of respondents (37.5%) were not going to ESI Dispensary/Hospital

because of Improper Treatment. And the other major reasons next to this were no

proper facilities available in the ESI (22.5% respondents) and poor infrastructure

(11.3% respondents).

9. The majority of respondents (83.8%) were going to other hospitals for availing the

Outpatient Service and the 43.8% of the respondents never availed the Inpatient

Service in any type of hospital.

10. The majority of respondents (83.8%) were going to other hospitals for availing the

Primary Facilities. It was found that 88.8% of respondents never availed the Super

Speciality Facilities in any type of hospital.

11. Sickness Benefit was availed by 86.3% of respondents, Dependants Benefit was

availed by 58.8% of respondents and Medical Benefit was availed by 17.5% of

respondents. But only 1.3% of respondents availed the Maternity Benefit from ESI. It

was also found that no one availed the Disablement Benefit in their ESI membership

period. The Chi-Square test for goodness of fit it was found that the number of

respondents was not availed the benefits in equally distributed form. (=

12. The majority of respondents stated that the Medical Benefit (43.8 % respondents) and

Sickness Benefit (43.8% respondents) was very good. Others stated that Maternity

Benefit (45% respondents), Disablement Benefit (46.3% respondents) and

Dependants’ Benefit (41.3% respondents) were good.

The Independent sample t-test was conducted based on age groups above 35 years and

below 35 years. It was found that there is no significant difference between the two

groups regarding the level of opinion regarding all the benefits.

One Sample t-test revealed that the opinion level is not equal to average level for the

following benefits: Medical (t=7.293, p=0.000), Sickness (t=6.715, p=0.000),

Maternity Benefits (t=2.778, p= 0.007) and Dependants’ Benefit (t= 2.504, p=0.014)

While the opinion level for the Disablement Benefit (t =1.155, p= 0.252) is equal to

average level, the respondent’s overall opinion was better about the ESI benefits.

13. It was found that no one met with any accident at work. All the respondents have

sometime or the other met with the minor accident at work.

14. The majority of respondents (22.5%) who met with an accident were treated at the

Company Referred Hospital and only 2.5% of respondents were treated at the Private

or other hospitals. It also shows that no one is treated at ESI Dispensary/Hospital or

Government Hospital for the accidents that occurred at work. However, 72.5% of the

respondents were never met with any accident at work.

15. While 21.3% respondents faced Blood Pressure problem, majority of the respondents

(56.3%) never has any medical problems.

16. The majority of respondents (43.8%) were dissatisfied with the ESI Facilities

provided by the ESI Dispensaries/Hospitals while only 22.5% of respondents were

satisfied with the ESI Facilities

17. The majority of respondents (46.3%) considered that the company helped them to

claim the benefits.

18. The majority of respondents (56.3%) agreed that the company provided a clear sense

of direction to avail the benefits.

19. The majority of respondents (51.3%) remained neutral about the level of difficulties

they faced in understanding the ESI Scheme.

20. The majority of respondents (80%) were not informed about the new ESI amendments

by the company.

21. It was found that no respondent was aware about the online facility of the ESI

Scheme.

22. The majority of respondents (73.8%) were not competent to use the online facility.

23. The overall opinion about the ESI Scheme was good according to the majority of

respondents (42.5%).

The Correlation test revealed a positive relationship between the overall perception

and the overall satisfaction with regard to the ESI Scheme at 1 percent level of

significance (R = 0.287, p = 0.010). It also indicates 28.7% positive relationship

between them.

The Correlation test between the organization support and the overall satisfaction with

regard to the ESI Scheme revealed that there is positive correlation at 1 percent level

of significance (R = 0.520, p = 0.000). It also indicates 52% positive relationship

between them.

24. The majority of respondents (47.5%) were satisfied with the company benefits.

From the One Way ANOVA test it was found that there is a significant difference

between age group with regard to the satisfaction with the ESI Scheme at 5 percent

level of significance (F = 3.173, p=0.047). It was also found that the respondents

above 32 years were more satisfied (mean = 6.68) with the ESI Schemes than the

others.

The Chi-Square test revealed that there is a significant association between the Age

Group and the Level of Satisfaction at 5 percent level of significance (chi square =

10.165, p = 0.038).

25. The majority 48.8% of respondents is moderately motivated with the benefits

package.

From the One Way ANOVA test it was found that there is a significant difference

between benefits of ESI package and satisfaction with ESI Scheme at 1 percent level

of significance (F=13.674, p=0.000). It was also found that the respondents who were

Highly Motivated with the package were more satisfied (mean = 6.76) with the ESI

Schemes than other respondents.

5.2 SUGGESTIONS

1. All the activities of a man are influenced by the state of his health. To care for the

health of the industrial workers and their immediate dependants, Government of India

introduced the ESI Scheme and started many ESI Dispensaries and Hospitals to

medically assist them. But, the study revealed that not even 50% of the respondents

were going to ESI Dispensary/Hospital for medical treatment due to improper

treatment, improper facilities and poor infrastructure. So, it is recommended to

improve the quality of the treatment by appointing qualified Doctors and upgrade the

facilities of the ESI Dispensaries/Hospitals. The Contributions made by the employer

and the employee for ESI benefit should be properly used by the ESIC to provide

these improvements.

2. The new ESI Amendments were not known to more than 75% of the respondents of

the study. The Company being one of the partners of the ESI scheme, it is the

responsibility of the company to properly communicate about the new Amendments

of the ESI Scheme to their workers. Since workers of the shoe manufacturing

companies are prone to serious occupational hazards, the role of the company in

promoting health is of paramount importance.

3. The opinion of the people can be influenced by the Public Relations and the media.

The ESI Corporation should use a wide variety of advertising techniques to get their

message out and change the minds of the people. Mass media can help the ESIC to

create a more positive opinion about the ESI Scheme from the contributors.

5.3 CONCLUSION

After the completion of this project, the researcher has gained more experience in conducting

field research. During survey, the researcher met a large number of people with different

opinion and behavior. It was a great opportunity to learn about the ESI Schemes and the

opinion of the beneficiaries. It is concluded from this study that the ESI Dispensaries/

Hospitals were not functioning upto the satisfaction of the insured persons. This study also

reveals the scope to improve its functions and turn into a highly trustful and reliable

Corporation, implementing better services by incorporating the suggestions.

A Study on the Opinion and Satisfaction of employees on ESI Schemes in Shoe manufacturing companies at Pamal, Chennai

CONFIDENTIAL QUESTIONNAIRE FOR STUDY PURPOSE ONLY

Employee Name: Age: Sex:Marital status: Education: Experience a) Within this company – No. of Dependants a) Adult –

b) Outside this company – b) Children –

1. How long are you a member of the ESI scheme? _____________

2. How much amount is deducted for this benefit? _____________

3. Where do you go generally when you are sick?a) ESI Dispensary/Hospital (Specify the Location) b) Government Hospitalc) Private Dispensaryd) Private Hospitale) Others

4. If you don’t go to ESI Dispensary/Hospital, why?a) No Proper Facilitiesb) Improper Treatmentc) Poor Infrastructured) Bribery Probleme) Long Distancef) Don’t know where it isg) Unaware about this

If you go to ESI Dispensary/Hospital, why?a) Proper Facilities availableb) Good Treatmentc) Good Infrastructured) Free Treatment

5. Have you availed? Service ESI Dispensary/Hospital Other HospitalOutpatient ServiceInpatient Service

6. Have you availed?Facilities ESI Dispensary/Hospital Other HospitalPrimary FacilitiesSuper Speciality Facilities

7. What are the ESI benefits you have availed?□ Medical Benefit

□ Sickness Benefit

□ Maternity Benefit (Only for Women)

□ Disablement Benefit

□ Dependants’ Benefit

8. What is your opinion about the ESI benefits?Benefit Excellent Very Good Good Fair Poor

Medical BenefitSickness BenefitMaternity BenefitDisablement BenefitDependants’ Benefit

9 (a) Have you met with any accidents at work?a) Minor – Often / Sometimes / Neverb) Major – (Specify) _______

9 (b) Where were you treated?a) ESI Dispensary/Hospitalb) Government Hospitalc) Private Hospitald) Company Referred Hospitale) Others (Specify)

10. What medical problems do you face?□ Diabetic

□ BP

□ Heart problem

□ Others (specify)

11. Are you satisfied with the facilities provided by the ESI Dispensaries/Hospitals?a) Highly Satisfiedb) Satisfiedc) Neutrald) Dissatisfiede) Highly Dissatisfied

12. How involved do you consider the company in helping out to claim your benefits?a) Very Involvedb) Involvedc) Somewhat Involvedd) Not Involvede) Not at all involved

13. The Company Management provides a clear sense of direction to avail the benefits.a) Strongly Agreeb) Agreec) Neutrald) Disagreee) Strongly Disagree

14. Do you find any difficulties in understanding the ESI benefits programme?a) Highly Difficultb) Difficultc) Neutrald) Easye) Very Easy

15. Are the new ESI amendments informed to you by the company?a) Yesb) No

16. Are you aware about the online facility of ESI Scheme?a) Yesb) No

17. How competent are you to use the online facility?a) Highly competentb) Moderately competentc) Not competent

18. What is your overall opinion about the ESI Scheme?a) Excellentb) Very Goodc) Goodd) Faire) Poor

19. From what you know, the general benefits provided to you by this company are as good as or better than the benefits in other organizations.

a) Strongly Agreeb) Agreec) Neutrald) Disagreee) Strongly Disagree

20. Overall, How do you feel about the benefits you receive from this company?f) Highly Satisfiedg) Satisfiedh) Neutrali) Dissatisfiedj) Highly Dissatisfied

21. Are you motivated because of your benefits package?a) Highly Motivatedb) Moderately Motivated c) Not Motivated

22. Do you have any suggestions for improving or changing the existing ESI Scheme?_________________________________________________________________________________________________________________________________________________________________________________________________________________________________

BIBLIOGRAPHY

BOOKS:

1. Ravilochanan P, “Research Methodology”, Chennai, Margham Publications, 2002,

Page no: 22.1-23.87.

2. ESI Bare Act, 1948.

JOURNALS:

1. Sharma Arvind K, “Factors affecting satisfaction from Employees’ State Insurance

Corporation Hospital’s Service”, 1998.

2. Sharma RK and Prasad PVV, “A study on accident and emergency services of

ESI Hospital New Delhi”, Journal of Health Population: Perspectives and

Issues, Volume 19, Issue 1, January – March 1996, Page no: 50 – 62.

3. Latha K and Anand TR, “Evaulative study of different contraceptive services

rendered at various hospital in Delhi”, 1998.

4. Mathur N and Sharma KKR, “Medido-Economic implications of Industrial

hand injuries in India”, Journal of Hand Surg and Eur, Volume 13, No 3, June

1988, Page no: 325 – 327.

5. Ramani KV, “E-governance for ESI Hospitals Costing of Medical Services at

ESI Hospital, Bapunagar”, Journal of IIMA, 2002.

6. Kannan KP and Vijayamohanan Pillai N, “Social Security in India: The Long

Lane Treaded and The Longer Road Ahead towards Universalization”, MPRA

Paper, No: 9601.

WEBSITES:

1. http://esic.nic.in/

2. http://en.wikipedia.org/wiki/Public_opinion

3. http://en.wikipedia.org/wiki/Employees%27_State_Insurance

4. http://www.esic.in/

5. http://www.esichennai.org/

6. http://en.wikipedia.org/wiki/Young_adult_%28psychology%29

7. http://en.wikipedia.org/wiki/Hospital

8. http://en.wikipedia.org/wiki/Health_insurance

9. http://en.wikipedia.org/wiki/Social_security