{"id":460,"date":"2018-10-16T06:58:31","date_gmt":"2018-10-16T06:58:31","guid":{"rendered":"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/?post_type=chapter&#038;p=460"},"modified":"2019-01-03T06:16:39","modified_gmt":"2019-01-03T06:16:39","slug":"meaning-definition-types-significance-administration-future-of-employee-benefits-services","status":"publish","type":"chapter","link":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/chapter\/meaning-definition-types-significance-administration-future-of-employee-benefits-services\/","title":{"rendered":"Meaning, definition, types, significance, administration &amp; future of employee benefits &amp; services"},"content":{"raw":"<div><span style=\"float: right\"><a href=\"https:\/\/youtu.be\/K90Zmwi9jgU\" target=\"_blank\" rel=\"noopener\"><img src=\"http:\/\/epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/2018\/11\/download.png\" alt=\"epgp books\" width=\"75px\" height=\"75px;\" \/><\/a>\r\n<\/span><\/div>\r\n<div>\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n<strong>Learning Outcomes:<\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">An organisation designs &amp; establishes a benefit and service programme to achieve the following:<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">(a)\u00a0\u00a0 To keep in line with the prevailling practices of offering benefits &amp; services which are given by similar concerns.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">(b)\u00a0 To recruits &amp; retain the best personnel<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">(c)\u00a0\u00a0 To provide for the needs of the employees &amp; protect them against certain hazards of life, particular those which an individual cannot himself provide for;<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">(d)\u00a0 To increase &amp; improve employee morale &amp; create a helpful &amp; positive attitude on the part of workers towards their employers,<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">(e)\u00a0\u00a0 To make the organisation a dominant influence in the lives of its employees with a view to gaining their loyalty &amp; co-operation, encouraging them to greater productive efforts.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">(f)\u00a0 To improve &amp; furnish the organisational image in the eyes of the public with a view to improving its market position &amp; bringing about product acceptance by it.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">(g)\u00a0 To recognise the official trade unions bargaining strength, for a strong trade union generally constrains an employer to adopt a sound benefits and services programmes for his employees.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">26.1. Introduction:<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Management is concerned with attracting &amp; keeping employees, whose performance meets <\/span>atleast<span style=\"text-align: initial;font-size: 1em\"> minimum levels of acceptability; &amp;\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">at keeping \u2018absenteeism\u2019 &amp; \u2018turnover\u2019 to tolerable levels. The provision of \u2018benefits\u2019 &amp; \u2018services\u2019 can be &amp; are important in maintaining the employees &amp; reducing or keeping turnover &amp; absenteeism <\/span>low.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">\u2018Financial\u2019 incentives are paid to specific employees whose work is above standard. \u2018Employee benefits &amp; services\u2019 on the other hand, are available to all employees based on their membership in the <\/span>organisation<span style=\"text-align: initial;font-size: 1em\">. The purpose of such benefits &amp; services is to retain people in the <\/span>organisation<span style=\"text-align: initial;font-size: 1em\"> &amp; not to stimulate them to greater effort\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">&amp;\u00a0\u00a0 higher performance. They faster loyalty &amp; act as a <\/span>security<span style=\"text-align: initial;font-size: 1em\"> base for the worker.<\/span><\/p>\r\n&nbsp;\r\n\r\n<img class=\"aligncenter wp-image-463\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-26.png\" alt=\"\" width=\"381\" height=\"231\" \/>\r\n\r\n<\/div>\r\n<div>\r\n<p style=\"text-align: center\"><a href=\"http:\/\/www.ecohome.net\/guide\/green-building-financial-incentives\">http:\/\/www.ecohome.net\/guide\/green-building-financial-incentives<\/a><\/p>\r\n&nbsp;\r\n\r\n<strong>26.2. Meaning &amp; Definition:<\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">Employee benefits &amp; services include any benefits that the employee receives in addition to direct remuneration. A formal definition is:<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">\u201cFringes embraces a broad range of benefits &amp; services that employees receives as part of their total compensation package, pay or direct compensation, is based on critical job factors &amp; performance. Benefits &amp; services, however are indirect compensation because they are usually extended as a condition of employment &amp; are not directly related to performance.\u201d<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">Employee benefits &amp; services are alternatively known as fringes, service programmes, employee benefits &amp; hidden payroll.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">Similarly, the term benefits &amp; services are often used interchangeably by some writers. But some maintain distinction between the two. For these people, the term benefit applies to those items for which a direct monetary value to the individual employee can be ascertained, as in the case of pension, medical insurance\u00a0or holiday pay. The word service applies to such items as a company newspaper, company or purchasing services, for which a direct money value for the individual employee cannot be readily established. However, the two terms used interchangeably.<\/p>\r\n\r\n<\/div>\r\n<img class=\"aligncenter wp-image-464\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-27.png\" alt=\"\" width=\"413\" height=\"387\" \/>\r\n<div>\r\n<p style=\"text-align: center\"><a href=\"http:\/\/ffs.nm.com\/Employee-Benefits.3.htm\">http:\/\/ffs.nm.com\/Employee-Benefits.3.htm<\/a><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">On the contrary; different terms have been used for these benefits such as \u201cFringe benefits\u201d, \u201cWelfare Expenses\u201d, \u201cWage Supplements\u201d, \u201cSubwages\u201d, or \u201csocial charges\u201d, \u201cPerquisites other than wages\u201d or \u201cTranspecunary Incentives\u201d. The other terms used are: \u201cExtra Wages\u201d, \u201cHidden payroll\u201d, \u201cNon-Wage Labour Costs\u201d or \u201cSelected supplementary Compensation Practices\u201d.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">The Glossary of current Industrial Relations &amp; Wage Terms has defined fringe benefits as \u201csupplements to wages received by workers at a cost to employers. The term encompasses a number of benefits \u2013paid vacation, pension, health insurance plans etc which usually add up to something more than a \u201cfringe\u201d, and is sometimes applied to a practice that may constitute a dubious benefit for workers\u201d.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The International Labour Organisation has defined \u201cfringe benefits\u201d as under:<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">\u201cWages are often augmented by special cash benefits, by the provision of medical &amp; other services, or by payments in kind that form part of the wages for expenditure on the goods &amp; services. In addition, workers commonly <\/span>receives<span style=\"text-align: initial;font-size: 1em\"> such benefits as <\/span>holiday<span style=\"text-align: initial;font-size: 1em\"> with pay, <\/span>low cost<span style=\"text-align: initial;font-size: 1em\"> meals, low rent housing etc. such addition to the wage proper are sometimes referred to as \u2018fringe benefits\u2019. Benefits that have no relation to employment or wage should not be regarded as fringe benefits even though they may constitute a significant part of the worker\u2019s total income. This is fairly obvious in the case of public parks, sanitation services, public &amp; fire protection\u201d.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The United States Chamber of Commerce includes five categories of services &amp; benefits under the term fringe benefits. These are:<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(i)\u00a0 Legally required payments, i.e. old age pension, survivor benefits, disability pension, health insurance, unemployment insurance, separation pay &amp; payments made under Workmen\u2019s Compensation Act:<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ii)\u00a0 Pension &amp; group insurance &amp; welfare payments<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iii)\u00a0 Paid rest periods, waste up time, lunch periods;<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iv)\u00a0 Payments for time not worked i.e. vacation &amp; holidays.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(v)\u00a0 Christmas bonus.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Belcher defines these benefits as \u201cany wage cost not directly connected with the employees, productive effort, performance, services &amp; sacrifice.\u201d<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">According to the Employer\u2019s Federation of India, \u201cfringe benefits include payments for non-working time, profits &amp; bonus, legally sanctioned payments on social security schemes, workmen\u2019s compensation, welfare cess &amp; the contributions made by employers under such voluntary schemes as cater for the post-retirement, medical, educational, cultural &amp; recreational needs of workmen. The term also <\/span>include<span style=\"text-align: initial;font-size: 1em\"> the monetary equivalent for workers &amp; subsidized housing &amp; related services.\u201d<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Cockman views employee benefits as \u201cthose benefits which are supplied by an employer to or for the benefits of an employee, &amp; which are not in the form of wages, salaries &amp; time-rated payments.\u201d<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Thus, we can define fringe benefits as it is a benefit which supplements the employee\u2019s ordinary wages &amp; which is of value to them &amp; their families in so far as it materially increases their retirement benefits.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Fringe benefits help build up a good corporate image. Schemes like housing, educational institutional &amp; recreational activities bring benefits to <\/span>the society<span style=\"text-align: initial;font-size: 1em\"> at large. An <\/span>organisation\u00a0<span style=\"text-align: initial;font-size: 1em\">with the introduction of fringes seeks to enhance employee morale, remain <\/span>cost effective<span style=\"text-align: initial;font-size: 1em\"> &amp; introduce changes without much resistance.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">26.3. Difference between \u2018wages\u2019 &amp; \u2018Fringe Benefits\u2019<\/strong><\/p>\r\n\r\n<\/div>\r\n<img class=\"aligncenter size-full wp-image-465\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-28.png\" alt=\"\" width=\"224\" height=\"110\" \/>\r\n<div>\r\n\r\n<a href=\"http:\/\/www.alamy.com\/stock-photo-male-union-workers-on-strike-on-construction-project-for-better-wages-1893199.html\"><strong>www.alamy.com\/stock-photo-male-union-workers-on-strike-on-construction-<\/strong><\/a><a href=\"http:\/\/www.alamy.com\/stock-photo-male-union-workers-on-strike-on-construction-project-for-better-wages-1893199.html\"><strong>project-for-better-wages-1893199.html<\/strong><\/a>\r\n\r\n&nbsp;\r\n\r\n<\/div>\r\n<img class=\"aligncenter size-full wp-image-466\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-29.png\" alt=\"\" width=\"927\" height=\"129\" \/>\r\n\r\n<img class=\"aligncenter wp-image-467\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-30.png\" alt=\"\" width=\"823\" height=\"485\" \/>\r\n\r\n&nbsp;\r\n\r\n<strong style=\"text-align: initial;font-size: 1em\"><em>26.4.1. Social Goals:-<\/em><\/strong>\r\n\r\n&nbsp;\r\n\r\nFringe benefits satisfy 3 goals i.e;\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Human resource is the most precious of all resources. In the words of Philadelphia Charter 1944; \u201cLabour is not a commodity. It is entitled to a fair deal as an active participant in any programme of economic development &amp; social reconstruction.\u201d<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Article 43 of the Constitution of India provides:<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">\u201cAll workers should be given a living wage, conditions of work ensuring <\/span>decent<span style=\"text-align: initial;font-size: 1em\"> standard of life &amp; fuller enjoyment to ensure social &amp; cultural opportunities.\u201d<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">The\u00a0 fringe\u00a0 benefits act\u00a0 as\u00a0 a<span style=\"text-align: initial;font-size: 1em\">\u00a0 <\/span>social\u00a0 lever\u00a0 in\u00a0\u00a0 helping<span style=\"text-align: initial;font-size: 1em\"> conservation of this precious resource, by guarding against its unnatural erosion &amp; providing the climate for its development in a working environment.<\/span><\/p>\r\n\r\n<div>\r\n\r\n<img class=\"aligncenter wp-image-468\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-31.png\" alt=\"\" width=\"343\" height=\"324\" \/>\r\n\r\n&nbsp;\r\n\r\n<strong><em>26.4.2. Human Relations Goal:<\/em><\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">The management, through motivation tries to develop &amp; maintain \u201chuman relations\u201d i.e; mutual interest, individual differences, motivation &amp; human dignity. The management provides with an environment which will reasonably meet the economic, social &amp; psychological needs of the employees so that their co-operation could be obtained &amp; productivity of the organisation enhanced.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.4.3. Macro Economic Goal:<\/em><\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">For maintaining the growth &amp; stability in the economy of a country, ideal utilization of the non-human &amp; human resources is imperative. Fringe benefits do provide protection during periods of contingencies of life, for training &amp; development of the employees, &amp; for good working conditions &amp; assistance to supplement their main income, opportunities for social interaction through cultural recreational facilities etc.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">26.5. Types of Employee Benefits &amp; Services:<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Employee benefits &amp; services include a motley crowd of fringes starting from accident compensation plans to paid holidays. To hold that a benefit is a fringe, 3 criteria need to be fulfilled:<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(i)\u00a0 It should be computable in terms of money<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ii)\u00a0 The amount of benefit is not generally predetermined<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iii)\u00a0 No contract, indicating when the sum is payable, should exist<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Going by the three criteria, many items are included\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">in the category of fringes.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong><span style=\"text-align: initial;font-size: 1em\">26.5.1. Legally required payments:<\/span><\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(i) Old age, survivors, disability, and health insurance (commonly known as social security)<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ii) Worker\u2019s Compensation<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iii) Unemployment Compensation<\/span><\/p>\r\n&nbsp;\r\n\r\n<img class=\"aligncenter size-full wp-image-469\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-32.png\" alt=\"\" width=\"503\" height=\"317\" \/>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong><span style=\"text-align: initial;font-size: 1em\">26.5.2. Contingent &amp; deferred benefits:<\/span><\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(i) Pension plans<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ii) Group life insurance<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iii) Group health insurance<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(a) Medial expenses(hospitalisation &amp; surgical)<\/span><\/p>\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(b) Disability income(short term &amp; long term)<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iv) Guaranteed annual wage<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(v) Prepaid legal plans<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(vi) Military leave and pay<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(vii)\u00a0 Jury duty &amp; bereavement paid leave<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(viii)\u00a0 Maternity leave<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ix)\u00a0 Child care leave<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(x)\u00a0 Sick leave<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(xi)\u00a0 Dental benefits<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(xii)\u00a0 Suggestion awards<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(xiii)\u00a0 <\/span>Tution<span style=\"text-align: initial;font-size: 1em\"> aid benefits<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(xiv)\u00a0 Service awards<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(xv)\u00a0 Severance pay<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.5.3. Payments for time not worked:<\/em><\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(i)\u00a0 Vaccination<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ii)\u00a0 Holidays<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iii)\u00a0 Voting pay allowances<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.5.4. Other Benefits:<\/em><\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(i)\u00a0 Travel allowances<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ii)\u00a0 Company car &amp; subsidies<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iii)\u00a0 Moving expenses<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iv)\u00a0 Uniform &amp; tool expenses<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(v)\u00a0 Employee meal allowances<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(vi)\u00a0 Discounts on employer\u2019s goods &amp; services<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(vii)\u00a0 <\/span>Child care<span style=\"text-align: initial;font-size: 1em\"> facilities<\/span><\/p>\r\n\r\n<\/div>\r\n<img class=\"aligncenter size-full wp-image-470\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-33.png\" alt=\"\" width=\"225\" height=\"487\" \/>\r\n<div>\r\n\r\n&nbsp;\r\n\r\n<strong>26.6. Significance of Benefit &amp; Service Programme:<\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong><em>26.6.1. Payment for Time not worked:<\/em><\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Companies provide payment for time not worked, both on-the-job &amp; off-the-job. On the <\/span>job<span style=\"text-align: initial;font-size: 1em\"> free time includes lunch periods, rest periods, coffee breaks, wash-up times &amp; get-ready times. Off the <\/span>job<span style=\"text-align: initial;font-size: 1em\"> time includes vacations, sick leaves, public holidays &amp; personal or casual leaves.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.6.2. Insurance benefits:<\/em><\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">Organisation<span style=\"text-align: initial;font-size: 1em\"> offer life &amp; health insurance programme to their employees. Most <\/span>organisation<span style=\"text-align: initial;font-size: 1em\"> offer insurance at a cost for below what individuals would have to pay to buy insurance by themselves<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.6.3. Compensation Benefits:<\/em><\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Disability &amp; worker\u2019s compensation benefits are also offered to employees. Employees contribute funds to assist workers who are ill or injured &amp; cannot work owing to occupational injury or ailment. These benefits are regulated by the Workmen\u2019s Compensation Act.<\/span><\/p>\r\n\r\n<\/div>\r\n<div>\r\n\r\n<img class=\"aligncenter size-full wp-image-471\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-34.png\" alt=\"\" width=\"462\" height=\"304\" \/>\r\n\r\n<strong><em>26.6.4. Pension Plans:<\/em><\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Most <\/span>organisation<span style=\"text-align: initial;font-size: 1em\"> offer plans to provide supplementary income to employees after they retire. These are either company-paid or joint employee-and- company-paid programme meant to supplement social security.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Along with pensions, <\/span>organisations<span style=\"text-align: initial;font-size: 1em\"> pay gratuity to employees attaining super <\/span>amuation<span style=\"text-align: initial;font-size: 1em\">. There is <\/span>however<span style=\"text-align: initial;font-size: 1em\">, a ceiling on gratuity which may not be justified. If an employee has served an <\/span>organisation<span style=\"text-align: initial;font-size: 1em\"> for a long time, there is no reason why he or she should be denied the benefit of higher gratuity. A company\u2019s social security &amp; worker\u2019s compensation contributions are set by the law. But how much to contribute for other kinds of benefits is <\/span>upto<span style=\"text-align: initial;font-size: 1em\"> each company to decide.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Some <\/span>organisations<span style=\"text-align: initial;font-size: 1em\"> contribute more to the cost of these benefits than others do. Some others pay the entire cost, others pay a percentage of the cost of certain benefits, such as health &amp; insurance &amp; bear the entire cost of others.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">26.7. Administration of Employee Benefit &amp; Services:<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">Organisations<span style=\"text-align: initial;font-size: 1em\"> fumble while administering employee benefits &amp; services. <\/span>Organisations<span style=\"text-align: initial;font-size: 1em\"> have seldom established objectives, systematic plans &amp; standards to determine the viability of the programmes. The main problem is the lack of employee participation. Managers, too, take little interest in the benefits programmes and trade unions are almost hostile to the schemes. Managers are not even aware of the <\/span>organisation\u2019s<span style=\"text-align: initial;font-size: 1em\"> policy towards benefits &amp; their contribution to the quality of corporate life. Trade unions entertain a feeling of alleviation as the benefits are likely to erode their base. These problems can be avoided if steps are taken:<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(i)\u00a0 To establish benefit objectives;<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ii)\u00a0 To assess environmental factors;<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iii)\u00a0 To assess competitiveness<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iv)\u00a0 To communicate benefit information<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(v)\u00a0 To control benefit costs &amp; evaluation<\/span><\/p>\r\n\r\n<\/div>\r\n<img class=\"aligncenter size-full wp-image-472\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-35.png\" alt=\"\" width=\"366\" height=\"488\" \/>\r\n<div>\r\n<p style=\"text-align: center\">Fig. 26.1. Administration of Fringe Benefits<\/p>\r\n&nbsp;\r\n\r\n<strong><em>26.7.1 Establishing Benefit objectives:<\/em><\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">It is essential for the management to establish objectives for its benefit programme. In establishing objectives, the management may consider several factors. One such consideration is employee preference for benefits. Personnel\/ HR outcomes-attendance, length of service, &amp; performance-should also receive due attention in the objective \u2013setting process.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">Typically, benefits accomplish four objectives: (i) fostering external competitiveness (ii) increasing cost effectiveness, (iii) meeting individual employee\u2019s needs &amp; preferences, and (iv) complying with legal compulsions.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong><em>26.7.2. Assessing Environment:<\/em><\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">External as well as internal factor influence a company\u2019s indirect remuneration programmes. Among the external factors are included such aspects as government policies &amp; regulation, unions &amp; economic factors. The major government policies which influence employee benefits &amp; services are wage regulation, tax policies &amp; specific benefit laws. In addition to government policies, unions are a dominant force to improve benefits &amp; services. when labour union &amp; management sit for negotiation it figure prominently in their discussion &amp; the settlement reached invariably covers indirect remuneration to the advantage of the employees. Economic factors influence benefit decisions in conflicting ways. Struggling to achieve competitive price for their product &amp; services, managers look to reduce, or at least curtail increase in labour costs. A indirect remuneration constitutes a major chunk of labour costs, benefits &amp; services receive top priority in the cost- reduction drive. On the other hand, competition in the labour market to attract &amp; retain production employees, creates pressure to match the benefits offered by others.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.7.3. Assessing Competitiveness:<\/em><\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">More often than not, <\/span>organisation<span style=\"text-align: initial;font-size: 1em\"> offer benefits to match or outstrip those offered by competitors. How to ascertain the competitor\u2019s <\/span>benefit<span style=\"text-align: initial;font-size: 1em\"> package? These are assessed through market surveys conducted by professional associations &amp; consultants. These surveys provide data on the various benefits offered, their coverage, eligibility &amp; costs. The data allow employers to assess the competitiveness of their benefits &amp; costs, with those offered by others.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.7.4. Communicating the Benefits:<\/em><\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Benefit programmes must be communicated to employees through booklets, brochures, slide presentation\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">&amp;\u00a0\u00a0 regular employee meetings. An effective technique is to use employee calendars which communicate the total remuneration components. Each month of the calendar shows a company employee receiving a benefit.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Communication helps remove <\/span>ignorance<span style=\"text-align: initial;font-size: 1em\"> of employees (and of employers too) about indirect remuneration. Further, employers might be able to increase the productivity &amp; the advantages of good employee benefits by making employees aware of what the company does for them, that does not appear on their payslips.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.7.5. Evaluation &amp; Control:<\/em><\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">One way of assessing the usefulness of fringes is to ascertain how far the advantages claimed in <\/span>favour<span style=\"text-align: initial;font-size: 1em\"> of indirect monetary schemes have really benefited the employees. The questions relevant in this context are: (i) Have the earnings of employees improved? (ii) Have the benefits been able to attract &amp; retain competent people? (iii) Has the morale of employees gone up? (iv) Have industrial relations improved?<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Cost of fringe benefits is a reliable test of their effectiveness. Employee benefit costs can be computed on the following lines:<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(i)\u00a0 Total Cost of benefits annually for all employees<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ii)\u00a0 Cost per employee per year<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iii)\u00a0 Percentage to annual payroll.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iv)\u00a0 Cost per employee per hour.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">26.8. Problems raised by Benefit Programmes:<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Many problems arise when these programmes are adopted &amp; administered. These are:<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.8.1. Charge of Paternalism:<\/em><\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">When too many benefits &amp; services are offered to employees, a feeling develops that employers are playing the role of parents &amp; the workers are looked upon as their children. Moreover, the latter sometimes develop the feeling that these benefits &amp; services are their \u201cright\u201d- which is not really so.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.8.2. Excessive Expenditure:<\/em><\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The administration of these benefits &amp; services is a fairly costly affair, involving large outlays of direct &amp; indirect financial expenditure &amp; often involves a great deal of <\/span>paper work<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.8.3. Fads become Fashionable:<\/em><\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">With the introduction of these benefits &amp; services in one company, other concerns vie with one another to introduce them as well. Credit unions &amp; severance pay are <\/span>example<span style=\"text-align: initial;font-size: 1em\"> of benefits which were once considered to be novel but are now <\/span>common place<span style=\"text-align: initial;font-size: 1em\"> in <\/span>industry<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.8.4. Maintenance of the Least Productive Workers:<\/em><\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">With an increase in benefits &amp; services, employees, particularly when they are not very productive tend to slick to their jobs &amp; are not interested in changing them.<\/span><\/p>\r\n&nbsp;\r\n\r\n<\/div>\r\n<div><img class=\"aligncenter size-full wp-image-473\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-36.png\" alt=\"\" width=\"404\" height=\"242\" \/><\/div>\r\n<div>\r\n\r\n&nbsp;\r\n\r\n<strong><em>26.8.5. Neglect of Other Personnel Functions:<\/em><\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">When a management becomes more concerned about the provision &amp; administration of benefits &amp; services, it often pays very little attention to other aspects of personnel programmes. Over emphasis on these benefits &amp; services may often develop a concern among the employees for their future security rather than for their present productivity.<\/p>\r\n&nbsp;\r\n\r\n<strong>26.9. Future of Employee Benefit:<\/strong>\r\n\r\n&nbsp;\r\n\r\n<img class=\"aligncenter size-full wp-image-474\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-37.png\" alt=\"\" width=\"757\" height=\"92\" \/>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">Current benefit package have evolved over the years from plans that addressed the basic needs of the workers &amp; provided minimum benefits to the individuals. Today, we see a much more complex pattern of plans with enhanced flexibility, tailored to meet the needs of individuals &amp; costing public sector &amp; private sector organisation dearly in terms of rupees.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">Employees in general are more educated, more sophisticated &amp; more demanding of remuneration including fringe benefit. Employers are, therefore required to devise newer benefit plans to attract &amp; retain competent personnel, keeping a watch on the benefit costs.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">Certain guidelines to make benefit programmes more effective are given here:<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">(i) Fringe benefit programmes should be looked at as a worthwhile corporate instrument in HRM.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">(ii) Future policy planning in this area will have to keep in view some fresh reference points. Non-unionisation &amp; skills shortage are no more relevant for policy consideration<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">(iii) Any meaningful package of benefits must reflect some perspective planning. Inflexibility brings stagnation.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iv) Separate programmes directly beneficial to workers from those that are directed towards community welfare. Clubbing them together adds to their cost. This may not be liked by workers.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"font-size: 1em\">(v) It is advisable not to have a facility rather than neglecting it in its administration.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"font-size: 1em\">(vi) Poor internal communication hurts the programme in at least three ways: (1) more money is spent for officer\u2019s welfare; (2) excess money spent on corporate image building at the cost of more bonus; (3) priority to officer\u2019s children in admissions to schools. Therefore, make the internal communicated system effective.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"font-size: 1em\">(vii) Devise new ways to involve workers &amp; their representatives at all levels of planning and implementation.<\/span><\/p>\r\n\r\n<\/div>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td><strong>you can view video on Meaning, definition, types, significance, administration &amp; future of employee benefits &amp; services<\/strong><\/td>\r\n<td><a href=\"https:\/\/youtu.be\/K90Zmwi9jgU\" target=\"_blank\" rel=\"noopener\"><img class=\"alignnone wp-image-120\" src=\"http:\/\/epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/2018\/11\/download.png\" alt=\"\" width=\"36\" height=\"36\" \/><\/a><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>","rendered":"<div><span style=\"float: right\"><a href=\"https:\/\/youtu.be\/K90Zmwi9jgU\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"http:\/\/epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/2018\/11\/download.png\" alt=\"epgp books\" width=\"75px\" height=\"75px;\" \/><\/a><br \/>\n<\/span><\/div>\n<div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Learning Outcomes:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">An organisation designs &amp; establishes a benefit and service programme to achieve the following:<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">(a)\u00a0\u00a0 To keep in line with the prevailling practices of offering benefits &amp; services which are given by similar concerns.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">(b)\u00a0 To recruits &amp; retain the best personnel<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">(c)\u00a0\u00a0 To provide for the needs of the employees &amp; protect them against certain hazards of life, particular those which an individual cannot himself provide for;<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">(d)\u00a0 To increase &amp; improve employee morale &amp; create a helpful &amp; positive attitude on the part of workers towards their employers,<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">(e)\u00a0\u00a0 To make the organisation a dominant influence in the lives of its employees with a view to gaining their loyalty &amp; co-operation, encouraging them to greater productive efforts.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">(f)\u00a0 To improve &amp; furnish the organisational image in the eyes of the public with a view to improving its market position &amp; bringing about product acceptance by it.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">(g)\u00a0 To recognise the official trade unions bargaining strength, for a strong trade union generally constrains an employer to adopt a sound benefits and services programmes for his employees.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">26.1. Introduction:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Management is concerned with attracting &amp; keeping employees, whose performance meets <\/span>atleast<span style=\"text-align: initial;font-size: 1em\"> minimum levels of acceptability; &amp;\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">at keeping \u2018absenteeism\u2019 &amp; \u2018turnover\u2019 to tolerable levels. The provision of \u2018benefits\u2019 &amp; \u2018services\u2019 can be &amp; are important in maintaining the employees &amp; reducing or keeping turnover &amp; absenteeism <\/span>low.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">\u2018Financial\u2019 incentives are paid to specific employees whose work is above standard. \u2018Employee benefits &amp; services\u2019 on the other hand, are available to all employees based on their membership in the <\/span>organisation<span style=\"text-align: initial;font-size: 1em\">. The purpose of such benefits &amp; services is to retain people in the <\/span>organisation<span style=\"text-align: initial;font-size: 1em\"> &amp; not to stimulate them to greater effort\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">&amp;\u00a0\u00a0 higher performance. They faster loyalty &amp; act as a <\/span>security<span style=\"text-align: initial;font-size: 1em\"> base for the worker.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-463\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-26.png\" alt=\"\" width=\"381\" height=\"231\" \/><\/p>\n<\/div>\n<div>\n<p style=\"text-align: center\"><a href=\"http:\/\/www.ecohome.net\/guide\/green-building-financial-incentives\">http:\/\/www.ecohome.net\/guide\/green-building-financial-incentives<\/a><\/p>\n<p>&nbsp;<\/p>\n<p><strong>26.2. Meaning &amp; Definition:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Employee benefits &amp; services include any benefits that the employee receives in addition to direct remuneration. A formal definition is:<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">\u201cFringes embraces a broad range of benefits &amp; services that employees receives as part of their total compensation package, pay or direct compensation, is based on critical job factors &amp; performance. Benefits &amp; services, however are indirect compensation because they are usually extended as a condition of employment &amp; are not directly related to performance.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Employee benefits &amp; services are alternatively known as fringes, service programmes, employee benefits &amp; hidden payroll.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Similarly, the term benefits &amp; services are often used interchangeably by some writers. But some maintain distinction between the two. For these people, the term benefit applies to those items for which a direct monetary value to the individual employee can be ascertained, as in the case of pension, medical insurance\u00a0or holiday pay. The word service applies to such items as a company newspaper, company or purchasing services, for which a direct money value for the individual employee cannot be readily established. However, the two terms used interchangeably.<\/p>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-464\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-27.png\" alt=\"\" width=\"413\" height=\"387\" \/><\/p>\n<div>\n<p style=\"text-align: center\"><a href=\"http:\/\/ffs.nm.com\/Employee-Benefits.3.htm\">http:\/\/ffs.nm.com\/Employee-Benefits.3.htm<\/a><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">On the contrary; different terms have been used for these benefits such as \u201cFringe benefits\u201d, \u201cWelfare Expenses\u201d, \u201cWage Supplements\u201d, \u201cSubwages\u201d, or \u201csocial charges\u201d, \u201cPerquisites other than wages\u201d or \u201cTranspecunary Incentives\u201d. The other terms used are: \u201cExtra Wages\u201d, \u201cHidden payroll\u201d, \u201cNon-Wage Labour Costs\u201d or \u201cSelected supplementary Compensation Practices\u201d.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">The Glossary of current Industrial Relations &amp; Wage Terms has defined fringe benefits as \u201csupplements to wages received by workers at a cost to employers. The term encompasses a number of benefits \u2013paid vacation, pension, health insurance plans etc which usually add up to something more than a \u201cfringe\u201d, and is sometimes applied to a practice that may constitute a dubious benefit for workers\u201d.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The International Labour Organisation has defined \u201cfringe benefits\u201d as under:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">\u201cWages are often augmented by special cash benefits, by the provision of medical &amp; other services, or by payments in kind that form part of the wages for expenditure on the goods &amp; services. In addition, workers commonly <\/span>receives<span style=\"text-align: initial;font-size: 1em\"> such benefits as <\/span>holiday<span style=\"text-align: initial;font-size: 1em\"> with pay, <\/span>low cost<span style=\"text-align: initial;font-size: 1em\"> meals, low rent housing etc. such addition to the wage proper are sometimes referred to as \u2018fringe benefits\u2019. Benefits that have no relation to employment or wage should not be regarded as fringe benefits even though they may constitute a significant part of the worker\u2019s total income. This is fairly obvious in the case of public parks, sanitation services, public &amp; fire protection\u201d.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The United States Chamber of Commerce includes five categories of services &amp; benefits under the term fringe benefits. These are:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(i)\u00a0 Legally required payments, i.e. old age pension, survivor benefits, disability pension, health insurance, unemployment insurance, separation pay &amp; payments made under Workmen\u2019s Compensation Act:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ii)\u00a0 Pension &amp; group insurance &amp; welfare payments<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iii)\u00a0 Paid rest periods, waste up time, lunch periods;<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iv)\u00a0 Payments for time not worked i.e. vacation &amp; holidays.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(v)\u00a0 Christmas bonus.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Belcher defines these benefits as \u201cany wage cost not directly connected with the employees, productive effort, performance, services &amp; sacrifice.\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">According to the Employer\u2019s Federation of India, \u201cfringe benefits include payments for non-working time, profits &amp; bonus, legally sanctioned payments on social security schemes, workmen\u2019s compensation, welfare cess &amp; the contributions made by employers under such voluntary schemes as cater for the post-retirement, medical, educational, cultural &amp; recreational needs of workmen. The term also <\/span>include<span style=\"text-align: initial;font-size: 1em\"> the monetary equivalent for workers &amp; subsidized housing &amp; related services.\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Cockman views employee benefits as \u201cthose benefits which are supplied by an employer to or for the benefits of an employee, &amp; which are not in the form of wages, salaries &amp; time-rated payments.\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Thus, we can define fringe benefits as it is a benefit which supplements the employee\u2019s ordinary wages &amp; which is of value to them &amp; their families in so far as it materially increases their retirement benefits.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Fringe benefits help build up a good corporate image. Schemes like housing, educational institutional &amp; recreational activities bring benefits to <\/span>the society<span style=\"text-align: initial;font-size: 1em\"> at large. An <\/span>organisation\u00a0<span style=\"text-align: initial;font-size: 1em\">with the introduction of fringes seeks to enhance employee morale, remain <\/span>cost effective<span style=\"text-align: initial;font-size: 1em\"> &amp; introduce changes without much resistance.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">26.3. Difference between \u2018wages\u2019 &amp; \u2018Fringe Benefits\u2019<\/strong><\/p>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-465\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-28.png\" alt=\"\" width=\"224\" height=\"110\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-28.png 224w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-28-65x32.png 65w\" sizes=\"auto, (max-width: 224px) 100vw, 224px\" \/><\/p>\n<div>\n<p><a href=\"http:\/\/www.alamy.com\/stock-photo-male-union-workers-on-strike-on-construction-project-for-better-wages-1893199.html\"><strong>www.alamy.com\/stock-photo-male-union-workers-on-strike-on-construction-<\/strong><\/a><a href=\"http:\/\/www.alamy.com\/stock-photo-male-union-workers-on-strike-on-construction-project-for-better-wages-1893199.html\"><strong>project-for-better-wages-1893199.html<\/strong><\/a><\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-466\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-29.png\" alt=\"\" width=\"927\" height=\"129\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-29.png 927w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-29-300x42.png 300w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-29-768x107.png 768w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-29-65x9.png 65w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-29-225x31.png 225w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-29-350x49.png 350w\" sizes=\"auto, (max-width: 927px) 100vw, 927px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-467\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-30.png\" alt=\"\" width=\"823\" height=\"485\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-30.png 925w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-30-300x177.png 300w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-30-768x452.png 768w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-30-65x38.png 65w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-30-225x133.png 225w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-30-350x206.png 350w\" sizes=\"auto, (max-width: 823px) 100vw, 823px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><strong style=\"text-align: initial;font-size: 1em\"><em>26.4.1. Social Goals:-<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>Fringe benefits satisfy 3 goals i.e;<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Human resource is the most precious of all resources. In the words of Philadelphia Charter 1944; \u201cLabour is not a commodity. It is entitled to a fair deal as an active participant in any programme of economic development &amp; social reconstruction.\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Article 43 of the Constitution of India provides:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">\u201cAll workers should be given a living wage, conditions of work ensuring <\/span>decent<span style=\"text-align: initial;font-size: 1em\"> standard of life &amp; fuller enjoyment to ensure social &amp; cultural opportunities.\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">The\u00a0 fringe\u00a0 benefits act\u00a0 as\u00a0 a<span style=\"text-align: initial;font-size: 1em\">\u00a0 <\/span>social\u00a0 lever\u00a0 in\u00a0\u00a0 helping<span style=\"text-align: initial;font-size: 1em\"> conservation of this precious resource, by guarding against its unnatural erosion &amp; providing the climate for its development in a working environment.<\/span><\/p>\n<div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-468\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-31.png\" alt=\"\" width=\"343\" height=\"324\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><strong><em>26.4.2. Human Relations Goal:<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">The management, through motivation tries to develop &amp; maintain \u201chuman relations\u201d i.e; mutual interest, individual differences, motivation &amp; human dignity. The management provides with an environment which will reasonably meet the economic, social &amp; psychological needs of the employees so that their co-operation could be obtained &amp; productivity of the organisation enhanced.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.4.3. Macro Economic Goal:<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">For maintaining the growth &amp; stability in the economy of a country, ideal utilization of the non-human &amp; human resources is imperative. Fringe benefits do provide protection during periods of contingencies of life, for training &amp; development of the employees, &amp; for good working conditions &amp; assistance to supplement their main income, opportunities for social interaction through cultural recreational facilities etc.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">26.5. Types of Employee Benefits &amp; Services:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Employee benefits &amp; services include a motley crowd of fringes starting from accident compensation plans to paid holidays. To hold that a benefit is a fringe, 3 criteria need to be fulfilled:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(i)\u00a0 It should be computable in terms of money<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ii)\u00a0 The amount of benefit is not generally predetermined<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iii)\u00a0 No contract, indicating when the sum is payable, should exist<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Going by the three criteria, many items are included\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">in the category of fringes.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong><span style=\"text-align: initial;font-size: 1em\">26.5.1. Legally required payments:<\/span><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(i) Old age, survivors, disability, and health insurance (commonly known as social security)<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ii) Worker\u2019s Compensation<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iii) Unemployment Compensation<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-469\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-32.png\" alt=\"\" width=\"503\" height=\"317\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-32.png 503w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-32-300x189.png 300w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-32-65x41.png 65w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-32-225x142.png 225w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-32-350x221.png 350w\" sizes=\"auto, (max-width: 503px) 100vw, 503px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong><span style=\"text-align: initial;font-size: 1em\">26.5.2. Contingent &amp; deferred benefits:<\/span><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(i) Pension plans<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ii) Group life insurance<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iii) Group health insurance<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(a) Medial expenses(hospitalisation &amp; surgical)<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(b) Disability income(short term &amp; long term)<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iv) Guaranteed annual wage<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(v) Prepaid legal plans<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(vi) Military leave and pay<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(vii)\u00a0 Jury duty &amp; bereavement paid leave<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(viii)\u00a0 Maternity leave<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ix)\u00a0 Child care leave<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(x)\u00a0 Sick leave<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(xi)\u00a0 Dental benefits<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(xii)\u00a0 Suggestion awards<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(xiii)\u00a0 <\/span>Tution<span style=\"text-align: initial;font-size: 1em\"> aid benefits<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(xiv)\u00a0 Service awards<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(xv)\u00a0 Severance pay<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.5.3. Payments for time not worked:<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(i)\u00a0 Vaccination<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ii)\u00a0 Holidays<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iii)\u00a0 Voting pay allowances<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.5.4. Other Benefits:<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(i)\u00a0 Travel allowances<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ii)\u00a0 Company car &amp; subsidies<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iii)\u00a0 Moving expenses<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iv)\u00a0 Uniform &amp; tool expenses<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(v)\u00a0 Employee meal allowances<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(vi)\u00a0 Discounts on employer\u2019s goods &amp; services<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(vii)\u00a0 <\/span>Child care<span style=\"text-align: initial;font-size: 1em\"> facilities<\/span><\/p>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-470\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-33.png\" alt=\"\" width=\"225\" height=\"487\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-33.png 225w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-33-139x300.png 139w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-33-65x141.png 65w\" sizes=\"auto, (max-width: 225px) 100vw, 225px\" \/><\/p>\n<div>\n<p>&nbsp;<\/p>\n<p><strong>26.6. Significance of Benefit &amp; Service Programme:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong><em>26.6.1. Payment for Time not worked:<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Companies provide payment for time not worked, both on-the-job &amp; off-the-job. On the <\/span>job<span style=\"text-align: initial;font-size: 1em\"> free time includes lunch periods, rest periods, coffee breaks, wash-up times &amp; get-ready times. Off the <\/span>job<span style=\"text-align: initial;font-size: 1em\"> time includes vacations, sick leaves, public holidays &amp; personal or casual leaves.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.6.2. Insurance benefits:<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Organisation<span style=\"text-align: initial;font-size: 1em\"> offer life &amp; health insurance programme to their employees. Most <\/span>organisation<span style=\"text-align: initial;font-size: 1em\"> offer insurance at a cost for below what individuals would have to pay to buy insurance by themselves<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.6.3. Compensation Benefits:<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Disability &amp; worker\u2019s compensation benefits are also offered to employees. Employees contribute funds to assist workers who are ill or injured &amp; cannot work owing to occupational injury or ailment. These benefits are regulated by the Workmen\u2019s Compensation Act.<\/span><\/p>\n<\/div>\n<div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-471\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-34.png\" alt=\"\" width=\"462\" height=\"304\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-34.png 462w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-34-300x197.png 300w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-34-65x43.png 65w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-34-225x148.png 225w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-34-350x230.png 350w\" sizes=\"auto, (max-width: 462px) 100vw, 462px\" \/><\/p>\n<p><strong><em>26.6.4. Pension Plans:<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Most <\/span>organisation<span style=\"text-align: initial;font-size: 1em\"> offer plans to provide supplementary income to employees after they retire. These are either company-paid or joint employee-and- company-paid programme meant to supplement social security.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Along with pensions, <\/span>organisations<span style=\"text-align: initial;font-size: 1em\"> pay gratuity to employees attaining super <\/span>amuation<span style=\"text-align: initial;font-size: 1em\">. There is <\/span>however<span style=\"text-align: initial;font-size: 1em\">, a ceiling on gratuity which may not be justified. If an employee has served an <\/span>organisation<span style=\"text-align: initial;font-size: 1em\"> for a long time, there is no reason why he or she should be denied the benefit of higher gratuity. A company\u2019s social security &amp; worker\u2019s compensation contributions are set by the law. But how much to contribute for other kinds of benefits is <\/span>upto<span style=\"text-align: initial;font-size: 1em\"> each company to decide.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Some <\/span>organisations<span style=\"text-align: initial;font-size: 1em\"> contribute more to the cost of these benefits than others do. Some others pay the entire cost, others pay a percentage of the cost of certain benefits, such as health &amp; insurance &amp; bear the entire cost of others.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">26.7. Administration of Employee Benefit &amp; Services:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Organisations<span style=\"text-align: initial;font-size: 1em\"> fumble while administering employee benefits &amp; services. <\/span>Organisations<span style=\"text-align: initial;font-size: 1em\"> have seldom established objectives, systematic plans &amp; standards to determine the viability of the programmes. The main problem is the lack of employee participation. Managers, too, take little interest in the benefits programmes and trade unions are almost hostile to the schemes. Managers are not even aware of the <\/span>organisation\u2019s<span style=\"text-align: initial;font-size: 1em\"> policy towards benefits &amp; their contribution to the quality of corporate life. Trade unions entertain a feeling of alleviation as the benefits are likely to erode their base. These problems can be avoided if steps are taken:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(i)\u00a0 To establish benefit objectives;<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ii)\u00a0 To assess environmental factors;<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iii)\u00a0 To assess competitiveness<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iv)\u00a0 To communicate benefit information<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(v)\u00a0 To control benefit costs &amp; evaluation<\/span><\/p>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-472\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-35.png\" alt=\"\" width=\"366\" height=\"488\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-35.png 366w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-35-225x300.png 225w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-35-65x87.png 65w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-35-350x467.png 350w\" sizes=\"auto, (max-width: 366px) 100vw, 366px\" \/><\/p>\n<div>\n<p style=\"text-align: center\">Fig. 26.1. Administration of Fringe Benefits<\/p>\n<p>&nbsp;<\/p>\n<p><strong><em>26.7.1 Establishing Benefit objectives:<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">It is essential for the management to establish objectives for its benefit programme. In establishing objectives, the management may consider several factors. One such consideration is employee preference for benefits. Personnel\/ HR outcomes-attendance, length of service, &amp; performance-should also receive due attention in the objective \u2013setting process.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Typically, benefits accomplish four objectives: (i) fostering external competitiveness (ii) increasing cost effectiveness, (iii) meeting individual employee\u2019s needs &amp; preferences, and (iv) complying with legal compulsions.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong><em>26.7.2. Assessing Environment:<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">External as well as internal factor influence a company\u2019s indirect remuneration programmes. Among the external factors are included such aspects as government policies &amp; regulation, unions &amp; economic factors. The major government policies which influence employee benefits &amp; services are wage regulation, tax policies &amp; specific benefit laws. In addition to government policies, unions are a dominant force to improve benefits &amp; services. when labour union &amp; management sit for negotiation it figure prominently in their discussion &amp; the settlement reached invariably covers indirect remuneration to the advantage of the employees. Economic factors influence benefit decisions in conflicting ways. Struggling to achieve competitive price for their product &amp; services, managers look to reduce, or at least curtail increase in labour costs. A indirect remuneration constitutes a major chunk of labour costs, benefits &amp; services receive top priority in the cost- reduction drive. On the other hand, competition in the labour market to attract &amp; retain production employees, creates pressure to match the benefits offered by others.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.7.3. Assessing Competitiveness:<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">More often than not, <\/span>organisation<span style=\"text-align: initial;font-size: 1em\"> offer benefits to match or outstrip those offered by competitors. How to ascertain the competitor\u2019s <\/span>benefit<span style=\"text-align: initial;font-size: 1em\"> package? These are assessed through market surveys conducted by professional associations &amp; consultants. These surveys provide data on the various benefits offered, their coverage, eligibility &amp; costs. The data allow employers to assess the competitiveness of their benefits &amp; costs, with those offered by others.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.7.4. Communicating the Benefits:<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Benefit programmes must be communicated to employees through booklets, brochures, slide presentation\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">&amp;\u00a0\u00a0 regular employee meetings. An effective technique is to use employee calendars which communicate the total remuneration components. Each month of the calendar shows a company employee receiving a benefit.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Communication helps remove <\/span>ignorance<span style=\"text-align: initial;font-size: 1em\"> of employees (and of employers too) about indirect remuneration. Further, employers might be able to increase the productivity &amp; the advantages of good employee benefits by making employees aware of what the company does for them, that does not appear on their payslips.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.7.5. Evaluation &amp; Control:<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">One way of assessing the usefulness of fringes is to ascertain how far the advantages claimed in <\/span>favour<span style=\"text-align: initial;font-size: 1em\"> of indirect monetary schemes have really benefited the employees. The questions relevant in this context are: (i) Have the earnings of employees improved? (ii) Have the benefits been able to attract &amp; retain competent people? (iii) Has the morale of employees gone up? (iv) Have industrial relations improved?<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Cost of fringe benefits is a reliable test of their effectiveness. Employee benefit costs can be computed on the following lines:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(i)\u00a0 Total Cost of benefits annually for all employees<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ii)\u00a0 Cost per employee per year<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iii)\u00a0 Percentage to annual payroll.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iv)\u00a0 Cost per employee per hour.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">26.8. Problems raised by Benefit Programmes:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Many problems arise when these programmes are adopted &amp; administered. These are:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.8.1. Charge of Paternalism:<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">When too many benefits &amp; services are offered to employees, a feeling develops that employers are playing the role of parents &amp; the workers are looked upon as their children. Moreover, the latter sometimes develop the feeling that these benefits &amp; services are their \u201cright\u201d- which is not really so.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.8.2. Excessive Expenditure:<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The administration of these benefits &amp; services is a fairly costly affair, involving large outlays of direct &amp; indirect financial expenditure &amp; often involves a great deal of <\/span>paper work<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.8.3. Fads become Fashionable:<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">With the introduction of these benefits &amp; services in one company, other concerns vie with one another to introduce them as well. Credit unions &amp; severance pay are <\/span>example<span style=\"text-align: initial;font-size: 1em\"> of benefits which were once considered to be novel but are now <\/span>common place<span style=\"text-align: initial;font-size: 1em\"> in <\/span>industry<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\"><em>26.8.4. Maintenance of the Least Productive Workers:<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">With an increase in benefits &amp; services, employees, particularly when they are not very productive tend to slick to their jobs &amp; are not interested in changing them.<\/span><\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<div><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-473\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-36.png\" alt=\"\" width=\"404\" height=\"242\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-36.png 404w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-36-300x180.png 300w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-36-65x39.png 65w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-36-225x135.png 225w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-36-350x210.png 350w\" sizes=\"auto, (max-width: 404px) 100vw, 404px\" \/><\/div>\n<div>\n<p>&nbsp;<\/p>\n<p><strong><em>26.8.5. Neglect of Other Personnel Functions:<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">When a management becomes more concerned about the provision &amp; administration of benefits &amp; services, it often pays very little attention to other aspects of personnel programmes. Over emphasis on these benefits &amp; services may often develop a concern among the employees for their future security rather than for their present productivity.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>26.9. Future of Employee Benefit:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-474\" src=\"http:\/\/mgmtp01.epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-37.png\" alt=\"\" width=\"757\" height=\"92\" srcset=\"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-37.png 757w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-37-300x36.png 300w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-37-65x8.png 65w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-37-225x27.png 225w, https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-content\/uploads\/sites\/66\/2018\/10\/Untitled-37-350x43.png 350w\" sizes=\"auto, (max-width: 757px) 100vw, 757px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Current benefit package have evolved over the years from plans that addressed the basic needs of the workers &amp; provided minimum benefits to the individuals. Today, we see a much more complex pattern of plans with enhanced flexibility, tailored to meet the needs of individuals &amp; costing public sector &amp; private sector organisation dearly in terms of rupees.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Employees in general are more educated, more sophisticated &amp; more demanding of remuneration including fringe benefit. Employers are, therefore required to devise newer benefit plans to attract &amp; retain competent personnel, keeping a watch on the benefit costs.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Certain guidelines to make benefit programmes more effective are given here:<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">(i) Fringe benefit programmes should be looked at as a worthwhile corporate instrument in HRM.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">(ii) Future policy planning in this area will have to keep in view some fresh reference points. Non-unionisation &amp; skills shortage are no more relevant for policy consideration<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">(iii) Any meaningful package of benefits must reflect some perspective planning. Inflexibility brings stagnation.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iv) Separate programmes directly beneficial to workers from those that are directed towards community welfare. Clubbing them together adds to their cost. This may not be liked by workers.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"font-size: 1em\">(v) It is advisable not to have a facility rather than neglecting it in its administration.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"font-size: 1em\">(vi) Poor internal communication hurts the programme in at least three ways: (1) more money is spent for officer\u2019s welfare; (2) excess money spent on corporate image building at the cost of more bonus; (3) priority to officer\u2019s children in admissions to schools. Therefore, make the internal communicated system effective.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"font-size: 1em\">(vii) Devise new ways to involve workers &amp; their representatives at all levels of planning and implementation.<\/span><\/p>\n<\/div>\n<table>\n<tbody>\n<tr>\n<td><strong>you can view video on Meaning, definition, types, significance, administration &amp; future of employee benefits &amp; services<\/strong><\/td>\n<td><a href=\"https:\/\/youtu.be\/K90Zmwi9jgU\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-120\" src=\"http:\/\/epgpbooks.inflibnet.ac.in\/wp-content\/uploads\/2018\/11\/download.png\" alt=\"\" width=\"36\" height=\"36\" \/><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"author":3,"menu_order":26,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":["prof-dr-rajeev-jain"],"pb_section_license":""},"chapter-type":[],"contributor":[60],"license":[],"class_list":["post-460","chapter","type-chapter","status-publish","hentry","contributor-prof-dr-rajeev-jain"],"part":3,"_links":{"self":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-json\/pressbooks\/v2\/chapters\/460","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":6,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-json\/pressbooks\/v2\/chapters\/460\/revisions"}],"predecessor-version":[{"id":816,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-json\/pressbooks\/v2\/chapters\/460\/revisions\/816"}],"part":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-json\/pressbooks\/v2\/parts\/3"}],"metadata":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-json\/pressbooks\/v2\/chapters\/460\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-json\/wp\/v2\/media?parent=460"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-json\/pressbooks\/v2\/chapter-type?post=460"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-json\/wp\/v2\/contributor?post=460"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp01\/wp-json\/wp\/v2\/license?post=460"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}