Concept of employee grievances

Employee grievances are a matter of important concern for human resource management. Grievances are employees perception of unfair treatment on the job. It leads to the feeling of dissatisfaction or discontent. They mainly results from difference in employee expectations and managerial practices relating to conditions of employment. According employment relationship. to Keith Davis: Grievance is any real or imagined feeling of personal injustice that an employee has about the

Types of Grievances: 1. Factual: Based on facts, Arise from faulty implementation of HRP. 2. Imaginary: Based on expectations of employees, Arise from ambiguities in service condition. 3. Disguised: Arise from hidden reasons which are ignored by organizations. Consequences of grievances can be:
1. 2. 3. 4. 5. 6. Decrease in productivity and employee morale. low motivation. Absenteeism. Indifference to work Conflicts, indiscipline. Worry, tension, frustration, discontent in employees. Unhealthy labor-management relations. etc.

Causes of grievances:
1. 2. Interpretation Difference: Terms and conditions of employment contract interpreted Management Practices: differently. - Faulty implementation of HRP. - Rigidity of rules. - Inconsistency in application of rules and decisions by supervisors etc. 3. 4. 5. 6. Labor Union Practices: Labor unions may encourage employees to unnecessarily report Personality Traits: Some find fault with every little matter. They are habituated in voicing Organizational Culture: Poor organizational culture creates friction and misunderstanding Working condition: Poor working condition causes grievances. grievances. grievances. among employees.

Handling Employees Grievances:

Approaches To Grievances Handling: 1. Open Door Policy: The employees are invited to walk-in any time and express their grievances to higher level of management. Problem is solved in mutually satisfying way. Some may adopt counseling procedures. 2. 3. Legal Compliance: Management take a legalistic view in handling grievances. it strictly follows Grievances Procedures: Formal organizational mechanism for dealing with contractual disputes the contract with unions and employees. it ignores situational grievances. arising out of a collective-bargaining agreement. it consists of several steps.

Pros of Grievance procedure:

1.
communication from employee to management is facilitated. 2. 3. 4. Managers become aware of employee grievances. Grivences are attended promptly. Possibility are arbitrary actions by supervisors is reduced.

Upward

Cons of Grievance Procedure:

1. 2. 3. It can be time consuming and costly. Human relations skills may be lacking to deal with the grievances at successive steps. Procedures may varies from organization to organization. Reprisals by management against

grievant employees can happen. Thus, in this way we can solve the grievances by going through it and having it as a part of management rather than ignoring it.

92 Human Resources UNIT 10 EMPLOYEE GRIEVANCE AND DISCIPLINE Structure 10.0 Objectives 10.1 Introduction 10.2 Grievance 10.3 Grievance Handling Procedure 10.3.1 Model Grievance Procedure 10.3.2 Essentials of a Sound Grievance Procedure 10.4 Discipline 10.5 Principles and Procedure for Disciplinary Action 10.6 Employee Exit 10.7 Let Us Sum Up 10.8 Key Words 10.9 Answers to Check Your Progress 10.10 Terminal Questions 10.0 OBJECTIVES After studying this unit, you should be able to: define the term grievance discuss the grievance handling procedure identify the essentials of a sound grievance procedure make distinction between discipline and indiscipline

 describe the disciplinary action procedure explain the term employee exit and exit interview 10.1 INTRODUCTION Every employee of any Organization will certainly have some expectations from the Organization in which he/she is working. When the Organizations fail to fulfill the expectations, the employee develops a feeling of discontent and dissatisfaction. When an employee feels that something is unfair in the Organization, he/ he is said to have a grievance. When grievances are not addressed by the Management, it leads to indiscipline which ultimately affects the efficiency of the employees and productivity of the Organization. Disciplinary and grievance procedures provide a clear and transparent framework to deal with difficulties which may arise as part of working relationship from either the employers or employees perspective. In this unit, you will learn about grievance handling procedure and disciplinary action procedure. You will further learn about the concept of employee exit and exit interview.93 Employee Grievance 10.2 GRIEVANCE and Discipline In every Organization, employees do get dissatisfied with various aspects of working which may be with the attitude of the manager, policy of the Company, working conditions, or behaviour of colleagues. Employers try to ignore or suppress grievances. It may not be possible to suppress grievances for long. Grievance is any dissatisfaction or feeling of injustice in connection with ones employment situation that is brought to the attention of management. It is any discontent or dissatisfaction

whether expressed or not, whether valid or not, arising out of anything connected with the Company that an employee thinks, believes or even feels, is unfair, unjust or inequitable. Grievance becomes a complaint if not resolved or attended to. Majority of complaints are due to unresolved Grievances. Hence Grievance handling is more important part of HRM to minimize, if not completely eradicate the complaints. The National Commission on Labour Observed that Complaints affecting one or more individual workers in respect of their wage payments, over time, leave, transfer promotion, seniority, and work assignment and discharges constitute Grievances. Causes of Grievance In order to handle the grievances efficiently, it is necessary to find and analyse the grievances of the subordinates. If a grievance is found to be genuine or real, corrective action should be taken immediately. Before dealing with the grievances, their causes must be diagnosed. The manager may realize the existence of grievances because of high turnover, high rate of absenteeism and poor quality of work. These problems will go on multiplying if the causes of grievances are not corrected. The causes of grievances may be broadly classified into the following categories: (1) Grievances resulting from working conditions (i) Improper matching of the worker with the job. (ii) Changes in schedules or procedures. (iii) Non-availability of proper tools, machines and equipment for doing the job. (iv) Unreasonably high performance standards. (v) Poor working conditions. (vi) Bad employer employee relationship, etc. (2) Grievances resulting from management policy (i) Wage payment and job rates.

(ii) Leave. (iii) Overtime. (iv) Seniority and Promotion. (v) Transfer. (vi) Disciplinary action. (3) Grievances resulting from personal reasons (i) Over ambition. (ii) Excessive self-esteem. (iii) Impractical attitude to life etc.94 Human Resources 10.3 GRIEVANCE HANDLING PROCEDURE Maintaining quality of work life for its employees is an important concern for any Organization. The grievance handling procedure can affect the harmonious environment of the Organization. Managers must be educated about the importance of the grievance process and their role in maintaining favorable relations with the employees Union. Effective grievance handling is an essential part of cultivating good employee relations and maintaining a fair, successful, and productive work environment. The procedure should be flexible enough to meet the requirements of the Organization. It should be simple so that an average employee is able to understand it. Though such a procedure will vary in different Organizations, yet the following principles should be observed while laying down a procedure: i) A grievance should be dealt with in the first instance at the lowest level: Dealing a grievance in the first instance at the lowest level is possible when an employee raises grievance with the immediate superior. It will help to settle the grievance on the spot and that will be the end of it. ii) It must be made clear to the employee what line of appeal is available: If

the aggrieved employee is not satisfied with reasons of the immediate superior, the employee should know the next higher authority to which the grievance can be reported. iii) Grievance should be resolved speedily: Since delay causes frustration, it is essential to deal with the grievances as speedily as possible. iv) The grievance procedure should be set up with the participation of the employees: In the finalization of grievance procedure, employees participation needs to be ensured. The grievance procedure so finalized should be applicable to all in the Organization. The policies and rules regarding grievances should be laid down after taking inputs from the employees. Steps in Grievance Handling Procedure are i) identify the grievance and acknowledge the same, ii) listen carefully to the complainant, iii) define the grievance clearly, iv) gather the complete information with facts and figures, v) analyze and search for multiple solutions to the grievance and finally select the best feasible and possible solution and implement the same, vi) ensure that there is follow-up at each stage for successful grievance procedure 10.3.1 Model Grievance Procedure The code of the Discipline adopted by the Indian Labour Conference in 1957 laid down that the management and unions should establish, upon a mutually agreed basis, grievance procedure which would ensure a speedy and full investigation leading to a settlement. At present the Model grievance procedure in India provides for five successive time bound steps, each leading to the next in case the aggrieved employee prefers an appeal. These steps are:

1) An arrived employee shall first present his grievance verbally in person to the officer designated by the management for this purpose. The response shall be given by the officer within 48 hours of the presentation of the complaint. If the worker is not satisfied with the decision of the officer or fails to receive the answer within 48 hours, he will either in person or accompanied by departmental head, present his grievance to the head of the department. ii) The head of the department shall give his answer within 3 days or if action cannot be taken within this period, the reason for delay should be95 Employee Grievance and Discipline recorded. If the worker is dissatisfied with the decision of the department all head, he may request that his grievance be forwarded to the Grievance Committee. iii) The Grievance Committee shall make its recommendation to the manager within 7 days if the workers request. If decision cannot be given within this period, reason should be recorded. Unanimous decision of the committee shall be implemented by the management. If there are differences of opinion among the members of the committee, the matter shall be referred to the manager along with the views of the members and the relevant papers for final decision. (iv) In either case, the final decision of the manger shall be communicated to the employee within three days from the receipt of the Grievance Committees recommendations. (v) If the worker is not satisfied even with the final decision of the manager, he may have the right to appeal to the manager for revision. In making this appeal he may take a union official with him to facilitate discussion with

the management. The management will communicate the decision within 7 days of workmans revision petition. (vi) If worker is still not satisfied, the mater may be referred to voluntary arbitration. (vii) Where a worker has taken a grievance for redressal under the grievance procedure the formal conciliation machinery shall not interview till all steps in the procedure have exhausted. A grievance shall be presumed to assume the form of a dispute only when the final decision of top management is turned down by the worker. The Grievance Committee shall consist of 4 to 6 members. 10.3.2 Essentials of a Sound Grievance Procedure A sound grievance procedure should incorporate the following features: 1. Legal Sanctity: The procedure should be designed in conformity with the existing statutory provisions. Where practicable the procedure can make use of such machinery as the law might have already provided for. 2. Acceptability: The grievance procedure must be acceptable to all and should, therefore, be developed with mutual consultation among management, workers and union. In order to be generally acceptable, the procedure must ensure a sense of fair play and justice to workers and reasonable participation of the union. 3. Simplicity: Simplicity in the procedure should be ensured. For that purpose the following issues should be taken care of: The procedure should be simple enough to be understood by every employee. Channels for handling grievances should be carefully developed. Employees must know the authorities to be contacted at various levels.

 Information about the procedure should be communicated to all employees. 4. Promptness: The grievance procedure must aim at speedy redressal of grievances. This can be ensured by incorporating the following feature in the procedure:96 Human Resources as far as possible, grievances should be settled at the lowest level normally there should be only one appeal. different types of grievances may be referred to appropriate authorities. time limit should be prescribed at each step and it should be rigidly followed at each level. 5. Training: In order to ensure effective working of the grievance procedure, it is necessary that supervisors and the union representatives should be given training in grievance handling. All the policies should be conveyed to the concerned parties. 6. Follow-up: The personnel department should review the working of the grievance procedure periodically and necessary changes should be introduced to make it more effective. A regular follow up of the system increases the faith of the people in the system. Check Your Progress A 1. What is meant by grievance? .................................................................................................................. .................................................................................................................. .................................................................................................................. 2. Mention any three causes of grievance. .................................................................................................................. ..................................................................................................................

.................................................................................................................. 3. List out the three essentials of a sound grievance procedure. .................................................................................................................. .................................................................................................................. .................................................................................................................. 4. What do you mean by Model Grievance Procedure? .................................................................................................................. .................................................................................................................. .................................................................................................................. 5. Identify the steps in Grievance handling procedure. .................................................................................................................. .................................................................................................................. .................................................................................................................. 10.4 DISCIPLINE So far we have discussed about the definition of grievance, its causes, grievance handling procedure and essentials of sound grievance procedure. Let us now discuss the other aspects of this unit which includes- Discipline, Indiscipline and disciplinary action procedure which bears equal significance to the human resource management.97 Employee Grievance and Discipline Discipline is the regulation and modulation of human activities to produce a controlled performance. It is the orderly conduct of affairs by the members of an Organisation who adhere to its necessary regulations because they desire to cooperate harmoniously. It is to encourage employees to confirm to establish standards of job

performance and to behave sensibly and safely at work place. According to Richard D. Calhoon, Discipline is the force that prompts individuals or groups to observe rules, regulations, standards and procedures deemed necessary for an Organization. Therefore discipline means securing consistent behaviour in accordance with the accepted norms of behaviour. The main objective of discipline is to gain willing acceptance of the rules, regulations, standards and procedures of the Organization from the employees and to develop a sense of tolerance and respect of human dignity. Discipline is broadly of two types: Negative Discipline: It is the traditional aspect of discipline and is identified with ensuring that subordinates adhere strictly to rules and regulation. The objective is to ensure that employees do not violate the rules and regulation. It involves fines, demotion, disciplinary action, layoff and transfer, etc. Positive Discipline: In this type of discipline subordinates comply with the rules. Positive discipline can be achieved through rewards and effective leadership. The emphasis here is on cooperative efforts to secure compliance to Organizational norms. This approach to discipline will help the employees to achieve both their individual needs and Organizational goals. It reduces the need for personal supervision required to maintain standards. It would, therefore, motivate subordinates to work with zeal and fulfill their needs. Indiscipline: Indiscipline refers to the absence of discipline. Indiscipline, therefore, means nonconformity to formal and informal rules and regulations. We cannot afford indiscipline as it affects the morale, involvement and motivation of subordinates in the Organisation. Indiscipline often leads to chaos, confusion, and reduces the efficiency

of the Organisation. It often leads to strikes, go-slows, and absenteeism, resulting in loss of production, profits and wages. The common causes of indiscipline are: wage discrimination, non-compliance with promotional policies and transfer policies, discrimination in allotment of work, defective handling of grievances, payment of low wages, delay in payment of wages, creating low quality work life etc. These unfair management practices gradually result in indiscipline. 10.5 PRINCIPLES AND PROCEDURE FOR DISCIPLINARY ACTION Despite best efforts, acts of indiscipline occur and it becomes necessary to take a disciplinary action. While taking disciplinary action the following principles of natural justice should be followed: Disciplinary procedures apply to all staff and will be applied in a nondiscriminatory manner No action other than suspension where necessary will be taken until the allegations have been fully investigated. It is important to ensure national labour law and best practice is followed.98 Human Resources The staff member will be advised in writing of the nature of the complaint and the possible sanctions. He/she will be given the opportunity to state his/her case before any decision regarding disciplinary action is made. At all stages the staff member will have the right to be accompanied by a work colleague or Trade Union representative. No staff member will be dismissed for a first breach of discipline except in the case of gross misconduct.

 The staff member will have the right to appeal misconduct and gross misconduct in accordance with the appeals procedure The main purpose of the disciplinary process is to encourage a staff member, whose standard of work or conduct is unsatisfactory, to improve. The aim is to ensure fair and consistent treatment for all. 1. Issue of Charge Sheet: Management issues a charge sheet to the employee after the prima facie case of misconduct is established. Charge sheet is merely a notice of the charge and provides the employee an opportunity to explain his/her conduct. Charge sheet is generally known as a show cause notice. The charge sheeted employee is expected to show the reasons for such conduct of behaviour. Each charge should be clearly specified in the charge sheet. There should be a separate charge for each allegation. 2. Consideration of Explanation. The explanation of the charge sheeted employee should be considered. If it is found satisfactory, no disciplinary action needs to be taken. On the contrary, when the management is not satisfied with the employees explanation, the management may initiate a full-fledged enquiry. 3. Suspension Pending Enquiry. If the charge is major and serious, a suspension order may be served on the employee along with the charge sheet. According to the Industrial Employment (Standing Order) Act, 1946, the suspended worker is to be paid a subsistence allowance equal to one-half of his wages for the first ninety days of suspension. The three-fourths of wages for the remaining period of suspension is paid if the delay in the completion of disciplinary proceedings is not due to the workers conduct. In accordance with the Code of Discipline, the management decides whether the charge is grave or serious. 4. Holding of Enquiry. An enquiry officer should be appointed to hold the enquiry. The concerned employee will be served notice to this effect. The employee should

not be denied the chance of explaining his / her point of view on the issue. The enquiry officer should give sufficient advance notice to the employee to provide an opportunity to prepare and present the case and make submission in his /her defense. The enquiry officer should proceed in a proper manner and examine witnesses. Fair opportunity should be given to the employee to cross-examine the management witnesses. On the conclusion of the enquiry, the enquiry officer should record the findings and the reasons thereof. The enquiry officer should refrain from recommending punishment and leave it to the decision of the appropriate authority. 5. Order of Punishment. Disciplinary action can be taken when the misconduct of the employee is proved. While deciding the nature of disciplinary action, the employees previous record and precedents,, etc, should be considered. When the employee repots that the enquiry conducted was not proper and the action taken was unjustified, the employee must be given a chance to make appeal.99 Employee Grievance 10.6 EMPLOYEE EXIT and Discipline In the previous section we have studied about different concepts like discipline, indiscipline and disciplinary action procedure. Now let us learn about employee exit. A person joins an Organization to achieve his/ her career goals. While performing various jobs in the Organization, the employee gains learning experience and develop skills and abilities over the years. All employees may not like to continue longer years in a particular Organization. They may prefer leaving the Organization for better pay and benefits, better experience, and for better career. In some occasions the management of the company may ask the employee to exit from the Organization,

may be due to indiscipline, superannuation, policy of downsizing employment and so on. There may be many causes of employee exit. These causes can be classified into two categories: avoidable causes and non-avoidable causes. A brief account of each is given blow. Avoidable Causes: Avoidable causes can be on personal reasons like incompatibility with peers or superiors, lack of interest or aptitude of the given job, perceived fears and apprehensions about ones own career prospects, change of technology, change of product mix, production volume, poor working conditions, etc. Non-avoidable Causes: Employees preferences or incompetence or poor health could be considered as unavoidable causes. Types of Employee Exit Employee exit takes place in many ways. The following are the ways followed in business Organizations. Resignation: Resignation refers to the termination of employment at the instance of the employees. This is a manner of separation taken up by the employee. Retirement: organizations generally have clear-cut rules for retirement. Employees retire from services as per the rules laid down in the Organizations. Retirement is generally connected with age. Employees retire on attainment of superannuation. Dismissal: Dismissal is the termination of services as a punishment for some major offences done by the employee. Such punishment is awarded through a judicial or quasi-judicial process. Ample opportunity is given to the accused employee to defend himself, call witnesses in defending his case, etc. Discharge: Discharge is permanent separation of an employee from payroll. The

reasons for discharge may be personal or Organizational. The personal reasons, such as incompetence, indiscipline and poor health etc. and Organizational reasons such as reduction in volume of business, technological obsolescence, etc., may lead to the discharge of an employee. Downsizing: Downsizing means reducing the number of employees in an Organization. It refers to the process of reducing the number of employees on the operating payroll by way of terminations, retirements or spin-offs. Exit Interview An exit interview is typically a meeting between at least one representative from a companys human resources (HR) department and a departing employee. (The departing employee usually has voluntarily resigned vs. getting laid off or fired.) The100 Human Resources HR representative might ask the employee questions while taking notes, asks the employee to complete a questionnaire, or both. Exit interviews are widely used methods to collect feedback from employees leaving the Organization. Such employees are expected to reveal true feelings, opinions and facts as there is no psychological pressure on them. It provides vital clues to sense emerging problems and facilities and take preventive measures. The management can take measures to reduce employee turnover based on the feedback from exit interview. Check Your Progress B 1. What do you mean by the term Discipline? .................................................................................................................. .................................................................................................................. ..................................................................................................................

2. What is meant by Indiscipline? .................................................................................................................. .................................................................................................................. .................................................................................................................. 3. Define the term Employee Exit. .................................................................................................................. .................................................................................................................. .................................................................................................................. 4. What is Exit Interview? .................................................................................................................. .................................................................................................................. .................................................................................................................. 5. Which of the following statements are True or False? i) When grievances are not addressed by the Management, it leads to indiscipline. ii) Poor working conditions do not lead to grievance. iii) The main objective of discipline is to gain willing acceptance of the rules, regulations, standards and procedures of the Organization from the employees. iv) Exit interviews are widely used methods to collect feedback from employees leaving the Organization. v) Disciplinary procedure applies to lower staff people only. 10.7 LET US SUM UP 1. In every Organization, employees do get dissatisfied with various aspects of working which may be with the attitude of the manager, policy of the Company, working conditions, or behaviour of colleagues. When an employee feels that

something is unfair in the Organization, he/ he is said to have a grievance. When grievances are not addressed by the Management, it leads to indiscipline which101 Employee Grievance and Discipline ultimately affects the efficiency of the employees and productivity of the Organization. Grievance procedures provide a clear and transparent framework to deal with difficulties which may arise as part of working relationship from either the employers or employees perspective. Model grievance procedure in India provides for five successive time bound steps, each leading to the next in case the aggrieved employee prefers an appeal. Therefore, sound grievance procedure assumes greater importance and it must contain the following features: legal sanctity, acceptability, simplicity, promptness, training and followup. Presence of discipline in any organisation is must. It is the orderly conduct of affairs by the members of an Organisation who adhere to its necessary regulations because they desire to cooperate harmoniously. Discipline is of two type- positive discipline and negative discipline. On the other hand indiscipline refers to the nonconformity to formal and informal rules and regulations. It often leads to strikes, go-slows, and absenteeism, resulting in loss of production, profits and wages. The common causes of indiscipline are: wage discrimination, defective handlings of grievances, payment of low wages, creating low quality work life etc. Therefore, it is necessary to develop a disciplinary process to address these issues amicably. Disciplinary process includes - issue of charge sheet, consideration of explanation, suspension pending enquiry, holding of enquiry and order of punishment. Employee exit is yet another issue that demands special attention. When employees leave the Organization for better pay, benefits, better experience, and for better career, it is called employee exit. Whatever be the reason for the exit, the employee leaving the Organization

should move out with positive feelings on the company. Managers should plan for conducting exit interviews to get feedback from these employees who may provide useful information for correcting the policies and processes and also for the growth and development of the Organization. Exit interview is a meeting between at least one representative from a companys human resources department and a departing employee 10.8 KEY WORDS 2. Grievance: Discontent or dissatisfaction arising out of anything connected with the company that an employee thinks, believes, or even feels as unfair, unjust, or inequitable 3. Grievance procedure: A mechanism devised by an Organization to handle and settle employees grievances 4. Exit interview: a meeting between at least one representative from a companys human resources department and a departing employee 5. Discipline: the regulation and modulation of human activities to produce a controlled performance 6. Indiscipline: the absence of discipline that indicates the existence of nonconformity to formal and informal rules and regulations 10.9 ANSWERS TO CHECK YOUR PROGRESS (B) 5) i) True ii) False iii) True iv) True v) False102 Human Resources 10.10 TERMINAL QUESTIONS 1. What is meant by discipline? Explain the procedure for taking disciplinary action. 2. Define grievance. Why do grievances arise? 3. Explain the procedure for redressal of grievances. 4. A sound grievance procedure must contain some essentials features. Explain.

5. Describe the grievance redressal procedure prescribed by law in India. 6. Write a short note on the following: i) Employee Exit ii) Exit Interview iii) Discipline 7. Discuss the principles to be followed to maintain discipline.

BY SHREYA FROM PAPERCAMP.COM

Abstract A grievance is a sign of an employees discontentment with his job or his relationship with his colleagues. A grievance arises when an employee feels that something has happened or is happening to him which he thinks is unfair, unjust or inequitable.Grievances generally arise out of the day to day working relations in an organization. One of the effective ways of minimizing and eliminating the source of an employees grievance is by having an open door policy. An open door policy facilitates upward communication in the organization where employees can walk in to a superiors cabin at any time and express their grievances freely.

Contents 1. 1.1 1.2 1.3 1.4 1.5 1.6 9 2. 2.1 2.2 2.3 2.4 2.5 Employee Discipline 10 10 10 Employee Grievance 5 5

Definition and Concept of Grievance Causes of Grievance 5

Need for Grievance Redressal Procedure Steps in Grievance Redressal Procedure

6 6 8

Grievance Redressal in Unionised Organisations

Legislative aspects of Grievance Redressal Procedure in India

Definition and Concept of Discipline Aims and Objectives of Discipline Forms and Types of Discipline 11

Acts of Indiscipline and causes for Misconduct/Indiscipline 12 Approaches to Dealing with Indiscipline 15 15

2.5.1 Traditional Approaches

2.5.2 Alternative Approaches 2.6 2.7 2.8 3. Procedures 27 3.1 PNB SAMADHAN 3.2 3.3 Disciplinary Procedure

18 20 21 24

Types of Disciplinary Actions

Code of Discipline in the Indian Industry

Industry Examples for Employee Grievance and Disciplinary Punjab National Bank Employee Grievance Redressal System27 Steel Authority Of India Limited(SAIL) 28 Infosys Technologies Limited 29

1. Employee Grievance 2.1 Definition and Concept of Grievance

Grievance According to Michael Jucius, A grievance can be any discontent or dissatisfaction, whether expressed or not, whether valid or not, and arising out of anything connected with the company that an employee thinks, believes, or even feels as unfair, unjust, or inequitable. A grievance means any discontentment or dissatisfaction in an employee arising out of anything related to the enterprise where he is working. It may not be expressed and even may not be valid. It arises when an employee feels that something has happened or is going to happen which is unfair, unjust or inequitable. Thus, a grievance represents a situation in which an employee feels that something unfavourable to him has happened or is going to happen. In an industrial enterprise, an employee may have grievance because of long hours of work, non-fulfilment of terms of service by the management, unfair treatment in promotion, poor working facilities, etc. 2.2 Causes of Grievance The causes of employee grievances differ from person to person and these are broadly classified as the following. (1) Grievances resulting from working conditions, improper matching of the worker with the job, changes in schedules or procedures, non-availability of proper tools, machines and equipment for doing the job, unreasonably high production standards ,poor working conditions, bad employer employee relationship, etc.

(2) Grievances resulting from management policy wage payment and job rates, leave, overtime, seniority and promotion, transfer, disciplinary action, lack of employee development plan, lack of role clarity. (3) Grievances resulting from personal maladjustment (i) Over- ambition. (ii) Excessive self-esteem or what better known as ego. (iii) Impractical attitude to life etc. 2.3 Need for Grievance Redressal Procedure The employee grievances, if left unaddressed can have various ramifications. It would spoil the organizational atmosphere, taking a toll on the productivity of its people and finally affecting the bottom line hence its stake holders as well. The effects of grievances could influence the peaceful functioning of the company. Effects of Grievances: Frustration This would worsen the interpersonal relationship between employees and will suppress their creativity. Alienation They may feel isolated or insecure and may develop a thought that they are not important for the organization. De-motivation The employee gets de-motivated and loses enthusiasm. This would often produce substandard quality performance. Slackness The employee feels unrecognized and feels to shirk work. He lacks seriousness and sincerity to work and say, pending works may increase. Low Productivity All the above factors finally leads to low productivity which further paves the way for the following practices. E.g.: Increase in Wastage & Costs Absenteeism Indiscipline Labour unrest etc. Hence the grievances should be addressed timely and sincerely. 2.4 Steps in Grievance Redressal Procedure These are the steps in Grievance Redressal Procedure: 1. Identify Grievances: Employee dissatisfaction or grievance should be identified by the management if they are not expressed. If they are ventilated, management has to promptly acknowledge them.

2. Define correctly: The management has to define the problem properly and accurately after it is identified/ acknowledged. 3. Collect Data: Complete information should be collected from all the parties relating to the grievance. Information should be classified as facts, data, opinions, etc. 4. Prompt Redressal: The grievance should be redressed by implementing the solution. 5. Implement and follow up: The implementation of the solution must be followed up at stage in order to ensure effective and speedy implementation. FIRST STAGE (DEPARTMENT LEVEL): The aggrieved employee shall represent his grievance either in person or in writing to the Welfare Officer or any other Officer in the Dept, which should be acknowledged. A written reply should be sent to the worker under the signature of the Manager within 10 days. SECOND STAGE (AREA LEVEL): If the employee is not satisfied, he may request the Manager to forward his Grievance to the Grievance Committee constituted at Area level which consists of: MANAGEMENT REPRESENTATIVES WORKMEN REPRESENTATIVES a) General Manager of the Area b) Manager/HOD c) Area Personnel Dept. Head (Member Secretary) a) One permanent member nominated by the Recognised Trade Union of the Area OR in his absence, a representative duly authorised by the said Union. b) A representative of the Registered Trade Union OR a co-worker of the workers choice.

The recommendations of the Grievance Committee shall be communicated to the concerned workmen within 10 days. A copy of the minutes of the Grievance Committee meeting may be supplied to the Representative of the Recognised Union.

THIRD STAGE (APPELLATE AUTHORITY CORPORATE LEVEL): If the employee is not satisfied with the reply given by the Grievance Committee at Area level, he can represent the matter to the Director (P, A&W) at Corporate level.

The representation will be disposed of within 15 days. All the officers are requested to put in their best efforts to examine and redress the genuine grievance submitted by workmen at different stages expeditiously. Response Time for Complaints: Deliverables| From the date of receipt of complaint | Acknowledgement slips /letter | Within 3 days Complaint redressal a) Normal redressal | Within 30 days | Within 30 days | | |

b) Specific cases whereredressal may take longer | Time to be intimated to the complainantand interim reply to be given within 30days | Transfer of complaint | Within 7 days | | Within 30 daysWithin 12

Rejection of complaintAppeal by complainant months | Disposal of Appeal | Within 2 months |

2.5 Grievance Redressal in Unionised Organizations The union plays a very important role in settling employee grievances. The following steps represent the procedure of redressal in unionized organization. 1. The employee with grievance first approaches his supervisor and conveys his problem orally. The grievance can be settled at this stage if the supervisor has requisite people-management and problem solving skills. 2. If the employee is not satisfied with the settlement, the supervisor forwards this grievance to the higher manager with a note mentioning the grievance of the employee and the failure in the first stage of redressal. 3. If the decision at this level is also not acceptable to the employee, then the grievance is referred to the grievance committee, which consists of members from the union and the management. The committee can ask the employee to accept the proposed settlement of the employer. In some cases however, based on the severity of the issue the committee ask the employee to submit the grievance for arbitration

4. The final step is when the grievance is referred to the arbitrator. The arbitrator should be acceptable to both the management and the employee.

2.6 Legislative aspects of Grievance Redressal Procedure in India In India, until the enactment of the Industrial Employment Act, 1946, the settlement of the day-to-day grievances of the workers did not receive much attention. It is important to lay down detailed grievance procedure with mutual consent.

2. Employee Discipline 3.7 Definition and Concept of Discipline

According to Earl R Bremblett discipline in its broadest sense means orderliness, the opposite of confusion. It does not mean a strict and technical observance of rigid rules and regulations. It simply means working, cooperating and behaving in a normal and orderly way, as any responsible person would expect an employee to do. According to Nirmal Singh, discipline is employee self control which prompts him to willingly cooperate with the organizational standards, rules, objectives, etc. Employees should adhere to the rules and regulations laid out by the organization to ensure order and discipline. But not all employees accept the responsibility of disciplining themselves. When employees indulge in acts of indiscipline, the organization is forced to take action against them to discourage such behavior. In such cases, merely trying to motivate these employees so that they adhere to the accepted norms of responsible employee behavior may not be enough. Such employees may require some degree of external disciplinary action like punishment. An employee is subjected to disciplinary action when he fails to meet some obligations towards his job or the organization. The primary objective of disciplinary action is to make an employee conform to the organizations rules and regulations. 3.8 Aims and Objectives of Discipline

The aims and objectives of discipline are: 1. To ensure and enable employees to work in accordance with the rules and regulations of the organization. 2. To ensure the employees follow the organizational process and procedures in spite of their different personalities and behaviour.

3. To provide direction to the employees and fix the responsibilities. 4. To improve organizational performance by improving the efficiency of each employee. 5. To maintain a sense of orderliness and conformity to organizational rules in the employees. 6. To maintain common feelings of trust and confidence in the employees towards each other and towards the management. It is essential to have capable and knowledgeable supervisors for a smooth and disciplines working of an organization. It is the responsibility of the supervisors to ensure that all employees are aware of the need to maintain organizational discipline and the implications of indiscipline. However they should take care not to use force as this might result in resistance and rebellion from the employees. The success of any disciplinary procedure depends on the cooperation of both the employer and the employee and the faith and trust they have in each other. This will eventually lead them towards accomplishing the organizational goals. 3.9 Forms and Types of Discipline

Discipline among employees can be achieved in two ways, either through rewards or through penalties. Based on this, discipline can be classified in to two types: 1. Self imposed or positive discipline 2. Enforced or negative discipline Self imposed or positive discipline: If employees are motivated through rewards, appreciation, constructive support, reinforcement or approved personnel actions to conform to organizational rules and regulations, it is termed as positive discipline. The attitude and mindset of the employees is developed to ensure that they willingly conform to the rules and regulations of the organization. Positive discipline requires an efficient leader who can motivate employees and make them work together towards implementing discipline in the organization. The concept of self discipline and self control is emphasized through positive discipline, as employees willingly cooperate to ensure discipline in the organization. They develop mutual respect for each other and the organizational rules and procedures. This happens when they understand and believe that these rules and procedures will contribute to the achievement of the organizational goals as well as their personal goals. Hence positive discipline is also known as cooperative discipline or determinative discipline. If employees are forced to follow the rules and regulations of the organization by inducing fear in them, then it is referred to as negative discipline. In this type of

discipline, the employees fear loss of promotion, an increment or a job and therefore reluctantly or unwillingly try to conform to the organizational rules. Negative or enforced discipline involves the use of techniques like reprimands, fines, lay-offs, demotions and transfers. Using these kinds of techniques will result in only partial success in meeting the standards of performance. Organizations should use negative discipline only when it is extremely essential. All efforts should be made to ensure discipline through a positive approach, so that employees are motivated to perform as per the disciplinary standards laid out by the organization. 3.10 Acts of Indiscipline and causes for Misconduct/Indiscipline

Misconduct or an act of indiscipline impairs the organization, tarnishes its reputation and leads to employee unrest. If not tackled immediately, these acts can lead to disciplinary problems. Disciplinary problems can be classifies in to three types. They are: Minor infractions Major infractions Intolerable offences Minor infractions are acts of misconduct that cause very little harm but if neglected, can accumulate and result in serious problems for the organization. They may relate to coming late to work, negligence etc. major infractions interfere with the orderly operations of the organization and affect the morale of the employees. They relate to cheating, stealing, violating safety regulations etc. Intolerable offences are those that can cause serious harm and damage to the organization. These include use of alcohol/drug while at work, smoking at the workplace where inflammables are stored and instigating co-workers in a situation of conflict. The basic acts of misconduct or indiscipline in an organization can be categorized as follows: * Attendance Attendance is one of the major problems that managers encounter in the organization. It relates to misuse of leave facilities, tardiness and absenteeism. This is more prevalent among unskilled/semi skilled workers and junior management level employees. The reasons for attendance problem could be: Incongruence in employees and organizational goals Personality characteristics like attitude toward work Unpleasant relationship with supervisors and co-workers

Ensured job security leading to a relaxed and uninterested approach * On the job behaviour An employees behaviour should be in accordance with the rules and regulations laid out by the organization any behaviour that hampers the work of the individual or disturbs the performance of other employees demands disciplinary actions. These violations are very easy to identify and need immediate corrective actions. Reason for such acts of indiscipline can be: Lack of proper upbringing and education Work related pressures and strained relationships General attitude and personality of the individual

* Dishonesty Dishonesty is not only stealing or misusing organizational resources. It also involve claiming a colleagues work, cheating, spying, working below potential etc. The reason for dishonesty could be: Social and economic pressures Lack of proper upbringing and education Personality characteristics of the employees Biased and subjective performance evaluation systems. * Activities That Are Harmful For The Organization This category involves all those categories that employees engage in, which affect either their on the job performances or the organizations reputation. Unauthorized strikes, criminal activities, and working for a competitor are some of these activities. Bad mouthing the organization or questioning the organizations key values in public, also contribute unacceptable behaviour. An organization has the right to enforce discipline when employee behaviour off the job becomes an embarrassing issue. Therefore their off the job behaviour must be in congruence with the image of the organization. * Causes of indiscipline and misconduct

When an employee has to perform a job that does not suit his qualifications, experience or aptitude, it can lead to employee frustration. This can lead to acts of misconduct like irregular attendance, work etc. Strained relations with the supervisors or with the co workers can force an employee to indulge in acts of indiscipline similar to ones stated above. Improper or biased evaluation of individuals and their performance can result in demotivated employees, who might resort to misconduct to express their dissatisfaction and distress An inefficient, ineffective and closed door grievance redressal procedure in an organization can result in indiscipline of employees who are dejected and frustrated. Loss of trust or confidence in each other, or in the management, can make employees behave in an indisciplined manner. Lack of proper education and upbringing of the workers can also lead to indiscipline at work Improper or inconvenient working conditions can lead to acts of indiscipline by workers Ambiguous working responsibilities, organizational policies and procedures also lead to frustration among employees and result in misconduct. Social and economic pressures or compulsions, outside the purview of the organization, may also lead to indiscipline and misconduct of employees. All these causes indicate that most of the reasons of indiscipline are internal to the organization. Some reasons are personality specific and a few are due to external factors like social and economic pressures. Therefore, having the right organizational culture and a good manager is important to guide and help employees towards fulfilling their tasks in a disciplined manner. At the same time employees should also be cooperative and should show an equal sense of responsibilities to maintain discipline 3.11 Approaches to Dealing with Indiscipline

3.12.1 Traditional Approaches Traditionally, discipline has been viewed as punitive: managers use their positions of authority to coerce employees into changing conduct or job performance. "Progressive" discipline meant that employees typically were treated with increasingly severe punishments until they altered their behaviour, or else they were discharged. Traditional ways of disciplining employees for infraction of policies

and procedures have been found to be ineffective in many situations, possibly because they are usually punitive in nature. * Progressive Discipline Approach: A progressive discipline model is typical of this approach to discipline. Developed in the 1930s in response to the National Labour Relations Act (NLRA) of 1935, the progressive discipline model features a four-step progression (an oral warning, a written warning, suspension and dismissal) for addressing transgressions committed by workers. The concept of progressive discipline states that penalties must be appropriate to the violation. In this approach discipline is imposed in a progressive manner, giving an opportunity to the employee to correct his or her misconduct voluntarily. The steps in progressive discipline approach can be illustrated as follows: Step 1: Coaching Discuss performance expectations Manager offers necessary support for employee success Step 2: Provide a Verbal Warning Address specific unacceptable behaviour Explore causes of problem and possible solutions Communicate specific change expected Express confidence that the problem will be solved

Step 3: Provide a Written Warning Meet to outline recurrent unacceptable behaviour Avoid threats Gain employees agreement to change Document the meeting in writing Step 4: Terminate Employment Be brief Give specific reasons for termination

 Provide information on employee rights or procedures Collect keys and other golf course property * The Red Hot Stove Rule: Without the continual support of the subordinates, no manager can get things done. But, disciplinary action against a delinquent employee is painful and generates resentment on his part. Hence, a question arises as to how to impose discipline without generating resentment? This is possible through what Douglas McGregor called the Red Hot Stove Rule, which draws an analogy between touching a hot stove and undergoing discipline. According to the Red Hot Stove rule, disciplinary action should have the following consequences: (a) Burns immediately: If disciplinary action is to be taken, it must occur immediately so the individual will understand the reason for it. With the passage of time, people have the tendency to convince themselves that they are not at fault. (b) Provides warning: It is very important to provide advance warning that punishment will follow unacceptable behaviour. As you move closer to hot stove, you are warned by its heat that you will be burned if you touch it. (c) Gives consistent punishment: Disciplinary action should also be consistent in that everyone who performs the same act will be punished accordingly. As with a hot stove, each person who touches it is burned the same. (d) Burns impersonally: Disciplinary action should be impersonal. There are no favourites when this approach is followed.

* Judicial Approach to Discipline: The Industrial Employment Act passed in 1946 requires that all establishments must define the service rules and prepare standing orders. The term Standing orders refer to the rules and regulations, which govern the conditions of employment of workers. They indicate the duties and responsibilities on the part of both the employer and the employees. The standing orders contain rules relating to: classification of employees, working hours, holidays, shift working, attendance, leave, suspension, termination, stoppage of work, redressal of grievances against unfair treatment, etc. Any violation or infringement of these terms and conditions may lead to misconduct or indiscipline. 3.12.2 Alternative Approaches

Non-punitive ways of motivating employees to change their behaviour and improve performance have been experimented with since the 1980s. * Positive Discipline Approach:

This approach is based on the premise that role of a discipline approach should not always be to punish; rather, it should try to regulate the negative behaviour of employees to make them better workers. Positive discipline is a corrective action which results in improved performance, more productivity and effective workforce. Harsh and negative punishment might work in the short term, but the end result will eventually be employee dissatisfaction, low productivity, higher rate of absenteeism and high turnover. This approach tries to mend the negative behaviour of employees by first providing them counselling in terms of what is expected out of them and then giving oral and written warnings to them. Termination or discharge in extreme cases may also take place.

Steps of positive discipline approach 1. Counselling: Counselling is an important part of the discipline process, because it gives a supervisor the opportunity to identify employee work behaviour problems and discuss possible solutions with him. The goal of this phase is to make employee aware of organizational policies and rules. Counselling by a supervisor in the work unit can have positive effects also. Often, employees simply need to be made aware of rules. An oral warning can also be given to employee during counselling. Confrontation helps to understand the employee point of view as well. However, proper training should be given to the supervisors regarding counselling skills to make this process successful. 2. Written warning: If employee behaviour has not been improved by counselling sessions, then a second conference is held between the supervisor and the employee. This stage is documented in written form. As part of this phase, the employee and the supervisor develop written solutions to prevent further problems from occurring. 3. Final warning: When the employee does not follow the written solutions, a final warning conference is held. In that conference the supervisor emphasizes to the employee the importance of correcting the inappropriate actions. Some firms incorporate a decision-day off, in which the employee is given a day off with pay to develop a firm, written action plan to remedy the problem behaviours. The idea is to impress on the offender the seriousness of the problem and the managers determination to see that the behaviour is changed. 4.

Discharge: If the employee fails to follow the action plan that was developed and further problem behaviours exist, then the supervisor will discharge the employee. The positive aspect of this approach is that it focuses on problem solving rather than punishing and penalizing. This approach involves positive confrontation with the problem employee and thus gives him an opportunity to justify himself. The supervisor makes him aware of the company policies. The greatest difficulty with this is the extensive amount of training required for supervisors and managers to become effective counsellors. Also, the process often takes more supervisory time than the progressive discipline approach. | 3.12 Disciplinary Procedure

Though there is no rigid and specific procedure for taking a disciplinary action, the disciplinary procedure followed in Indian industries usually consists of the following steps:

(a) Issuing a letter of charge: When an employee commits an act of misconduct that requires disciplinary action, the employee concerned should be issued a charge sheet. Charges of misconduct or indiscipline should be clearly and precisely stated in the charge sheet. The charge sheet should also ask for an explanation for the said delinquent act and the employee should be given sufficient time for answering this.

(b) Consideration of explanation: On getting the answer for the letter of charge served, the explanation furnished be considered and if it is satisfactory, no disciplinary action need be taken. On the contrary when the management is not satisfied with the employees explanation there is a need for serving a show-cause notice.

(c) Show-cause notice: Show-cause notice is issued by the manager when he believes that there is sufficient prima facie evidence of employees misconduct. However, this gives the employee another chance to account for his misconduct and rebut the charges made against him. Enquiry should also be initiated by first serving him a notice of enquiry indicating clearly the name of the enquiring officer, time, date and place of enquiry, etc.

(d) Holding of a full-fledge enquiry: This must be in conformity with the principle of natural justice, that is, the employee concerned must be given an opportunity, of being heard. When the process of enquiry is over and the findings of the same are

recorded, the Enquiry Officer should suggest the nature of disciplinary action to be taken.

(e) Making a final order of punishment: Disciplinary action is to be taken when the misconduct of the employee is proved. While deciding the nature of disciplinary action, the employees previous record, precedents, effects of disciplinary action on other employees, etc., have to be considered. When the employee feels that the enquiry conducted was not proper and the action taken is unjustified, he must be given a chance to make an appeal.

(f) Follow up: After taking the disciplinary action, a proper follow up action has to be taken and the consequences of the implementation of disciplinary action should be noted and taken care of.

3.13

Types of Disciplinary Actions

Different acts of indiscipline deserve different kinds of disciplinary action based on their severity and gravity. The various disciplinary actions that are administered in response to noticed acts of indiscipline by employees are verbal warning, first written warning, final written warning, suspension, pay cut, demotion and dismissal. Verbal warning: Verbal warning is an informal warning given to an employee. It is one of the mildest actions taken against an employee for an act of indiscipline. Such warnings are given in an informal and private environment. The supervisor should explain to the employee, the rule that has been violated and the implications for violating it. For example, if an employee reports late to the office frequently, then the manager might call the employee to his cabin and explain that employees should report to the office on time. The manager should make efforts to find out the reason for the employee being late and ask for possible alternate solutions to the problem. If the solutions offered by the employee are not suitable, then the manager can help him to find the ways to avoid problems in future. The employee should also be made aware of the consequences of not reporting to office on time. It is good practice to keep a temporary record of this reprimand in the employees file. If the verbal warning is effective, further disciplinary action can be avoided. However, if the employee fails to improve his performance, the manager has to resort to more severe action. Written Warning:

If the oral warning fails, then the next step is to give a written warning to the employee. This is the second step in progressive disciplinary procedure and the first formal stage of the disciplinary procedure. This is a formal stage as the written warning is placed in the employees file and a copy given to the employee and one send to the personnel department. The procedure followed before a written warning is issued, is almost the same as that of the verbal warning. The employee is informed of the violation, its effects, and potential consequences of future violations. The only difference between the two actions is that the manager tells the employees that a written warning will be issued. The manager writes down the rule that has been violated, any assurances given by the employee that he will correct his behavior, and the future action that will be administered if the deviant behavior is repeated. Suspension: If the employee does not adhere to the rules and regulations of the organization in spite of being given a verbal and written warning, then the next step is suspension of the employee. However, if the act of discipline is quite serious, then the employee may be suspended without any prior verbal or written warning. In suspension, the employee is laid-off from work for a short period of time and he is not paid during this time. This kind of action helps in making the employee realize his fault and inconvenience that his behavior has caused to others in workplace.

Demotion: If no improvement is noticed in the performance of the employee even after suspension, and if the management wants to strongly avoid dismissing the employee, demotion may be an alternative. Very few organizations use this step as a disciplinary action, the reason being its tendency to demoralize not only the employee but his coworkers as well. This kind of punishment is not temporary, as the employee has to continue in the demoted job for an unspecified period until the management finds his performance improved. This may add the employees distress and he may fail to perform up to the mark even in this job. Demotion is administered only when i. The employee clearly does not have the ability to perform the job. ii. Management perceives itself legally or ethically constrained from dismissing the employee, and iii. It is believed that this action will awaken the employee to change his behavior. Pay cut:

Cutting the undisciplined employees pay is another alternative used in administering disciplinary action. This approach has a demoralizing effect on the employees, but is considered a rational action by management if the only alternative is dismissal. If the employee alters his behavior, the pay cut can always be cancelled. Dismissal: The ultimate disciplinary punishment is dismissing the erring employee. This action must be used only for the most serious offense or after all earlier steps have failed. The decision to dismiss an employee should be given long and hard consideration before being implemented. Being sacked from a job causes emotional trauma to an individual. This is especially true of employees who have been with the organization for a long period and for those past their prime age in the job market. In addition, the management must consider the possibility that a dismissed employee might resort to legal action to fight the decision. Before discharging the employee of his duties for gross indiscipline, the following condition must be satisfied: * The nature of the misconduct should indicate that discharge or dismissal is an appropriate punishment and this kind of punishment should have been mentioned in the standing orders. * After a charge sheet has been filed against the employee, an enquiry should be conducted regarding the miss conduct and prior notice of the time, place and the date of enquiry should be given to the employee. * The enquiry conducted should be fair and the employee should be given a chance to defend himself and to prevent witness from support of his contention or case. * At the end of the enquiry, the enquiry officer should record the findings based on recorded evidence. * The findings must be based on recorded evidence and should not be biased. * The order of dismissal or discharge of the employee must be passed in good faith. * The order must ne duly communicated to the employees against whom it has been passed. 3.14 Code of Discipline in the Indian Industry

The code of Discipline in the Indian industry was formulated on the recommendations of the Indian Labor conference held in New Delhi in the year 1957.The code was made applicable to the industry from 1st June 1958. The main

aim of the code was to lay down certain principles of discipline that govern the Indian industry. The basic feature of the code of discipline is as follows: * Both the management and the employees should abide by certain self-imposed rules in order to avoid disputes. In case disputes arise, they should be settled through negotiation, conciliation and voluntary arbitration. * Each party should acknowledge and respect each others rights and responsibilities. * No party should take any unilateral decision regarding any disputes. The existing machinery for settlement should be utilized. * The code discourages litigation and lays emphasis on settlement of disputes through negotiation, conciliation and voluntary arbitration rather than through adjudication. * Acts of violence, coercion, intimidation or incitement should not be indulged in. * There should be precision and speedy implementation of disciplinary action and any agreements reached. * Employees and trade unions can take appropriate actions in case they find officers and supervisors indulging in activities which are against the code. * The trade union must be recognized in accordance with the criteria laid down for this purpose. Only unions that observe the code of Discipline are entitled to recognition. To conclude, the objectives of the code are to promote a healthy working environment and maintain discipline in the industry. It aims to eliminate all forms of coercion, intimidation and violation of rules, regulations and procedures and procedures governing industrial relations. It also highlights to the management and the employees, the importance of the recognition of each others rights. Industrial Employment (Standing Orders) Act, 1946 The primary objective of the industrial employment (Standing Orders) Act, 1946 is to ensure protection of labor by providing uniform and stable conditions of service. Prior to this act, the terms and conditions of employment were changed and misused frequently. They were the source of constant friction and disputes in courts leading bad industrial relations. This act was enacted to address these problems. The industrial Employment (Standing Orders) Act, 1946 requires employees of certain industrial establishments to define clearly, and with adequate precision, the conditions of employment, i.e. standing order or service rules, and to make them known to the workmen employed by them.

Every industrial establishment covered by the Act must have a set of certified standing orders which shall be binding on the employer and the employees. The central and state governments have prescribed MODEL STANDING ORDERS that serve as the basic foundation of the rules of the conduct. Industrial establishments can either draft their own standing orders on the basis of the MODEL STANDING ORDERS, and get them certified by the concerned authorities, or simply adopt the MODEL STANDING ORDERS. The employer has to fulfill certain obligations concerning the standing orders. He has to prepare the draft of the standing orders covering all the matters specified in the schedule and conforming to the MODEL STANDING ORDERS. The employer should give five copies of the draft to the certifying officer, along with an application in the prescribed form. Particulars like details of the employees in the establishments, and the trade union, if any, to which they belong have to be submitted in the prescribed format. The application has to be submitted within six months from the date the act becomes applicable in the establishment. Employees of the establishment are bound by the certified standing orders and should adhere to the laid down rules. If a question arises about the application or interpretation of any certified standing order, it may be referred by the employer, employee or the trade union to a labor court established for the administration of such procedures. The labor court, after listening to the concerned parties, make a decision which is final and binding on all the parties involved.

3. Industry Examples for Employee Grievance and Disciplinary Procedures 4.15 Punjab National Bank Employee Grievance Redressal System- PNB SAMADHAN PNB SAMADHAAN the employee grievance redressal system, is being introduced with a view to lend an ear to the genuine work-related and personal problems faced by the staff members which have a bearing on their work, so that the same can be considered for resolution. PNB SAMADHAAN purports to provide an open, fair and fast channel for the staff members to bring forth their genuine grievances/issues to the notice of the Management. Through this structured mechanism, staff members may address such issues directly to the Chairman and Managing Director of the Bank by e-mailing at his e-mail address which is: cmd@pnb.co.in. Alternatively, they may send their representations to CMDs Secretariat:

On receipt of the representation, a written acknowledgement will be sent to the

concerned staff member and appropriate action will be initiated on the same. The details of the action thus initiated will also be informed to the staff member.

In order to implement PNB SAMADHAAN in its true spirit, the following are observed: 1. By Staff members: a) In respect of staff members posted in branches/Circle Offices, the aggrieved staff member should first send his representation to his controlling Circle Office. It is only when he does not receive an acknowledgement of the same from the Circle Head within 7 days of his sending the representation or when he is not satisfied with the decision taken at the CO level, that he can send his representation to the Chairman and Managing Director of the Bank. b) In respect of staff members posted in HO Divisions, the aggrieved staff member should first send his representation to his Divisional Head. It is only when he does not receive an acknowledgement of the same from the concerned Division within 7 days of his sending the representation or when he is not satisfied with the decision taken at the HO Division level, that he can send his representation to the Chairman and Managing Director of the Bank.

2. By all Circle Offices and Head Office Divisions: a) On receipt of representation from the aggrieved staff member under PNB SAMADHAAN, a written acknowledgement should be sent to the staff member by the Circle Head within 7 days of receipt of representation at CO. On examination of the matter at CO level an appropriate action should be taken to look into the grievance(s) of the staff member and the details of the action taken should be informed to the staff member within 15 days of having acknowledged receipt of the representation. b) Similar time-frame should be followed at HO Division level in respect of representations received at HO Division respectively.

4.16

Steel Authority Of India Limited(SAIL)

Ministry of Steel has a well laid out three-tier grievance redressal mechanism which ensures fast disposal of grievances. In the Ministry, there are very few cases of grievances redressal and these are settled within a period of 3 months.

Computerization of grievance redressal has been done. One of the Joint Secretary functions as a Director of Public & Staff Grievances in respect of the entire Ministry of Steel, the only attached office and the various PSUs functioning under the Ministry of Steel. The overview of status of the public grievance redressal machinery in PSUs is as under:-

Effective internal grievances redressal machinery exists in SAIL plants and units, separately for executives and non- executives. The grievance procedure has evolved after sustained deliberations and consent of employees, trade unions and associations. In fact, at Rourkela Steel Plant, the grievance redressal machinery bears its origin and draws strength from a tripartite settlement between RSP management and the then recognized trade union under the Industrial Act, which has laid down the constitution of bipartite grievance redressal committees and the modalities of resolving the grievances raised by the workers through these committees. The grievances in SAIL plants/units are dealt in 3 stages and employees are given an opportunity at every stage to raise grievances relating to irregularities, working conditions, transfers, leave, work assignments and welfare amenities etc. Such issues are effectively settled through the time-tested system of grievance management. However, majority of the grievances are redressed informally in view of the participative nature of the environment existing in the steel plants. The system is comprehensive, simple and flexible and has proved effective in promoting harmonious relationships between employees and management. 4.17 Infosys Technologies Limited

About Infosys: Infosys Technologies Ltd. was started in 1981 by seven people with US$ 250. Today, Infosys is a global leader in the IT and consulting domain with revenues of over US$ 4 billion. Infosys defines, designs and delivers technology-enabled business solutions that help Global 2000 companies win in a Flat World. Infosys also provides a complete range of services by leveraging our domain and business expertise and strategic alliances with leading technology providers. Infosys pioneered the Global Delivery Model (GDM), which emerged as a disruptive force in the industry leading to the rise of offshore outsourcing. The GDM is based

on the principle of taking work to the location where the best talent is available, where it makes the best economic sense, with the least amount of acceptable risk. Infosys has a global footprint with over 50 offices and development centers in India, China, Australia, the Czech Republic, Poland, the UK, Canada and Japan. Infosys and its subsidiaries have 105,453 employees as on September 30, 2009. Infosys Vision: To be a globally respected corporation that provides best of breed business solutions, leveraging technology, delivered by best-in-class people.

Values at Infosys: Infosys has always followed the highest standards of corporate governance and has set new levels in transparency and integrity. Infosys has adopted a code of business conduct and ethics, which is based on what are called the Infosys Core Values. These core values in short are called C-LIFE; Customer Delight, Leadership by Example, Integrity and Transparency, Fairness and Pursuit of Excellence. The vision and values at Infosys can be summarized by the following pictorial diagram:

Grievance Redressal System in Infosys: There are various mechanisms for raising the grievances by the employees in Infosys. * ASHI (Anti Sexual Harassment Policy in Infosys) This policy was introduced in the early 2000s after a case was reported in Infosys. According to this policy if a person (male/female) feels that he has been harassed in the organization he/she can raise a complain to his or her superiors. The superior will forward the issue to the committee which will be formed and the issue will be taken up. All the parties involved in the case are called for hearing and necessary action is taken. The strength of the penalty depends on the extent to which the harassment has been done. It may extent from warnings to termination from the company and legal action thereafter. Infosys educates the employees about the importance of ASHI during training period and deviation from above is considered to be very serious. All the employees are expected to strictly adhere to the anti-harassment policy. Various training and education programs are conducted from time to time for the employees. * HEAR

HEAR initiative is one of the newest initiatives to be inducted in to Infosys grievance redressal System. It is for the employees to raise their grievances when they think that they are not given proper ratings during appraisals. The employee can raise a complaint against his/her immediate boss to a committee. The committee will investigate about the issue and necessary action will be taken. Normally the committee will consist of three independent managers, so that transparency will be there. In addition to the above mentioned initiatives there are other systems like Grievance Redressal Board. In this the employees can send a mail (GRB@infosys.com) to the board and the complaint will be registered and necessary action will be taken. There is a concept called Brown Bag Snacks in Infosys which is also a forum in which the employees can raise their grievances. It is a meeting which is headed by the head of the business unit and select number of employees will participate. It normally happens outside the office and the employees can raise their concerns in the meeting. There will be an HR executive present who will take note of the issues raised by the employees and he will give the necessary clarifications required. The above meetings happen in an interval of 45 days. Skip Level meetings are those which are held every 30 days. In this meeting the managers manager will be present and employees can raise their concerns to him. After that the HR executive will intimate the employees about the status of their issue. Various issues are solved through the use of the above mentioned mechanisms in Infosys. Thus it can be seen as why Infosys was voted as one of the best companies to work for in India. Employee Discipline at Infosys: Infosys has established a code of conduct for all its employees based on the core values and it believes that compliance to the code of conduct is Everybodys business. The code of conduct encompasses major aspects of an employees day to day activities like: a. Conduct at the workplace Infosys firmly believes in providing a harassment free work environment to its employees and hence has in place a anti-harassment policy and any violation of this policy would be very strictly dealt by the company and many a times would lead to termination of the job. Apart from this the code of conduct also includes an anti-sexual harassment policy to help curb any sexual harassment and harassment based on pregnancy. Needless to say, this policy is very strict on employees and any violation to this policy would

lead to termination. The company has also established a Grievance Redress Body to address to such issues of harassment.

The company also has a policy to curb the drug/alcohol abuse. This policy requires that employees are not in possession of or being under the influence of illegal drugs and alcohol on the job.

Dress code: Employees at Infosys are expected to dress neatly and in a manner consistent with the nature of work performed. The dress code for Infoscions is as follows:

Men: Monday & Tuesday Formals with tie Wednesday & Thursday Formals (Can wear slack/half-arm shirts) Friday Casuals (No torn jeans, flashy T-shirts, sandals)

Women: Monday to Thursday Business formals / Saree / Selwar kameez Friday Casuals (No torn jeans, flashy T-shirts, short-skirts, sandals)

Any violation to the dress-code would attract a fine of Rs. 200/- which would deduct from the employees salary.

b. Protecting Companys confidential information Infosyss confidential information includes architecture, source code, product plans, road maps, names and lists of customers, dealers, employees and financial information. This information is the property of the company and may be protected by patent, trademark, copyright and trade secret laws and all such information has to be used by employees for business purposes only. Thus an employee at Infosys has the responsibility of safeguarding, securing and proper disposal of confidential

information in accordance with the Companys policy on Maintaining and Managing Records set forth in the Code of Business Conduct and Ethics.

All employees, at the time of joining the company are required to sign a Proprietary Information and Invention Agreement. Under this agreement, the employees are required to abide the agreement and not disclose the Companys confidential information to anyone or use it to benefit anyone other than the Company without prior written consent of authorized Company Officer.

c. Safety at workplace All Infoscions are required to comply with all applicable health and safety policies which are again in compliance with the local laws to maintain a secure and healthy work environment.

d. Use of Companys assets Infosys believes that it is the responsibility of each and every employee to protect the Companys assets and hence the Company lays stress on the usage and handling of its assets and resources. This policy not just includes the employees but the agents/contractors as well.

According to this policy, all company employees, agents or contractors are responsible for the proper usage of Company assets, and must safeguard such assets against loss, damage, misuse or theft. Employees, agents or contractors who violate any aspect of this policy or who demonstrate poor judgment in the manner in which they use any Company asset may be subject to disciplinary action, up to and including termination of employment or business relationship at the Companys sole discretion.

The Companys assets or resources include the brand and logo, Companys funds, computers and other equipment, software and electronic usage.

Abstract A grievance is a sign of an employees discontentment with his job or his relationship with his colleagues. A grievance arises when an employee feels that something has happened or is happening to him which he thinks is unfair, unjust or inequitable.Grievances generally arise out of the day to day working relations in an organization. One of the effective ways of minimizing and eliminating the source of an employees grievance is by having an open door policy. An open door policy facilitates upward communication in the organization where employees can walk in to a superiors cabin at any time and express their grievances freely.

Contents 1. 1.1 1.2 1.3 1.4 1.5 1.6 9 2. 2.1 2.2 2.3 2.4 2.5 Employee Discipline 10 10 10 Employee Grievance 5 5

Definition and Concept of Grievance Causes of Grievance 5

Need for Grievance Redressal Procedure Steps in Grievance Redressal Procedure

6 6 8

Grievance Redressal in Unionised Organisations

Legislative aspects of Grievance Redressal Procedure in India

Definition and Concept of Discipline Aims and Objectives of Discipline Forms and Types of Discipline 11

Acts of Indiscipline and causes for Misconduct/Indiscipline 12 Approaches to Dealing with Indiscipline 15 15

2.5.1 Traditional Approaches

2.5.2 Alternative Approaches 2.6 2.7 2.8 3. Procedures 27 3.1 PNB SAMADHAN 3.2 3.3 Disciplinary Procedure

18 20 21 24

Types of Disciplinary Actions

Code of Discipline in the Indian Industry

Industry Examples for Employee Grievance and Disciplinary Punjab National Bank Employee Grievance Redressal System27 Steel Authority Of India Limited(SAIL) 28 Infosys Technologies Limited 29

1. Employee Grievance 2.1 Definition and Concept of Grievance

Grievance According to Michael Jucius, A grievance can be any discontent or dissatisfaction, whether expressed or not, whether valid or not, and arising out of anything connected with the company that an employee thinks, believes, or even feels as unfair, unjust, or inequitable. A grievance means any discontentment or dissatisfaction in an employee arising out of anything related to the enterprise where he is working. It may not be expressed and even may not be valid. It arises when an employee feels that something has happened or is going to happen which is unfair, unjust or inequitable. Thus, a grievance represents a situation in which an employee feels that something unfavourable to him has happened or is going to happen. In an industrial enterprise, an employee may have grievance because of long hours of work, non-fulfilment of terms of service by the management, unfair treatment in promotion, poor working facilities, etc. 2.2 Causes of Grievance The causes of employee grievances differ from person to person and these are broadly classified as the following. (1) Grievances resulting from working conditions, improper matching of the worker with the job, changes in schedules or procedures, non-availability of proper tools, machines and equipment for doing the job, unreasonably high production standards ,poor working conditions, bad employer employee relationship, etc.

(2) Grievances resulting from management policy wage payment and job rates, leave, overtime, seniority and promotion, transfer, disciplinary action, lack of employee development plan, lack of role clarity. (3) Grievances resulting from personal maladjustment (i) Over- ambition. (ii) Excessive self-esteem or what better known as ego. (iii) Impractical attitude to life etc. 2.3 Need for Grievance Redressal Procedure The employee grievances, if left unaddressed can have various ramifications. It would spoil the organizational atmosphere, taking a toll on the productivity of its people and finally affecting the bottom line hence its stake holders as well. The effects of grievances could influence the peaceful functioning of the company. Effects of Grievances: Frustration This would worsen the interpersonal relationship between employees and will suppress their creativity. Alienation They may feel isolated or insecure and may develop a thought that they are not important for the organization. De-motivation The employee gets de-motivated and loses enthusiasm. This would often produce substandard quality performance. Slackness The employee feels unrecognized and feels to shirk work. He lacks seriousness and sincerity to work and say, pending works may increase. Low Productivity All the above factors finally leads to low productivity which further paves the way for the following practices. E.g.: Increase in Wastage & Costs Absenteeism Indiscipline Labour unrest etc. Hence the grievances should be addressed timely and sincerely. 2.4 Steps in Grievance Redressal Procedure These are the steps in Grievance Redressal Procedure: 1. Identify Grievances: Employee dissatisfaction or grievance should be identified by the management if they are not expressed. If they are ventilated, management has to promptly acknowledge them.

2. Define correctly: The management has to define the problem properly and accurately after it is identified/ acknowledged. 3. Collect Data: Complete information should be collected from all the parties relating to the grievance. Information should be classified as facts, data, opinions, etc. 4. Prompt Redressal: The grievance should be redressed by implementing the solution. 5. Implement and follow up: The implementation of the solution must be followed up at stage in order to ensure effective and speedy implementation. FIRST STAGE (DEPARTMENT LEVEL): The aggrieved employee shall represent his grievance either in person or in writing to the Welfare Officer or any other Officer in the Dept, which should be acknowledged. A written reply should be sent to the worker under the signature of the Manager within 10 days. SECOND STAGE (AREA LEVEL): If the employee is not satisfied, he may request the Manager to forward his Grievance to the Grievance Committee constituted at Area level which consists of: MANAGEMENT REPRESENTATIVES WORKMEN REPRESENTATIVES a) General Manager of the Area b) Manager/HOD c) Area Personnel Dept. Head (Member Secretary) a) One permanent member nominated by the Recognised Trade Union of the Area OR in his absence, a representative duly authorised by the said Union. b) A representative of the Registered Trade Union OR a co-worker of the workers choice.

The recommendations of the Grievance Committee shall be communicated to the concerned workmen within 10 days. A copy of the minutes of the Grievance Committee meeting may be supplied to the Representative of the Recognised Union.

THIRD STAGE (APPELLATE AUTHORITY CORPORATE LEVEL): If the employee is not satisfied with the reply given by the Grievance Committee at Area level, he can represent the matter to the Director (P, A&W) at Corporate level.

The representation will be disposed of within 15 days. All the officers are requested to put in their best efforts to examine and redress the genuine grievance submitted by workmen at different stages expeditiously. Response Time for Complaints: Deliverables| From the date of receipt of complaint | Acknowledgement slips /letter | Within 3 days Complaint redressal a) Normal redressal | Within 30 days | Within 30 days | | |

b) Specific cases whereredressal may take longer | Time to be intimated to the complainantand interim reply to be given within 30days | Transfer of complaint | Within 7 days | | Within 30 daysWithin 12

Rejection of complaintAppeal by complainant months | Disposal of Appeal | Within 2 months |

2.5 Grievance Redressal in Unionised Organizations The union plays a very important role in settling employee grievances. The following steps represent the procedure of redressal in unionized organization. 1. The employee with grievance first approaches his supervisor and conveys his problem orally. The grievance can be settled at this stage if the supervisor has requisite people-management and problem solving skills. 2. If the employee is not satisfied with the settlement, the supervisor forwards this grievance to the higher manager with a note mentioning the grievance of the employee and the failure in the first stage of redressal. 3. If the decision at this level is also not acceptable to the employee, then the grievance is referred to the grievance committee, which consists of members from the union and the management. The committee can ask the employee to accept the proposed settlement of the employer. In some cases however, based on the severity of the issue the committee ask the employee to submit the grievance for arbitration

4. The final step is when the grievance is referred to the arbitrator. The arbitrator should be acceptable to both the management and the employee.

2.6 Legislative aspects of Grievance Redressal Procedure in India In India, until the enactment of the Industrial Employment Act, 1946, the settlement of the day-to-day grievances of the workers did not receive much attention. It is important to lay down detailed grievance procedure with mutual consent.

2. Employee Discipline 3.7 Definition and Concept of Discipline

According to Earl R Bremblett discipline in its broadest sense means orderliness, the opposite of confusion. It does not mean a strict and technical observance of rigid rules and regulations. It simply means working, cooperating and behaving in a normal and orderly way, as any responsible person would expect an employee to do. According to Nirmal Singh, discipline is employee self control which prompts him to willingly cooperate with the organizational standards, rules, objectives, etc. Employees should adhere to the rules and regulations laid out by the organization to ensure order and discipline. But not all employees accept the responsibility of disciplining themselves. When employees indulge in acts of indiscipline, the organization is forced to take action against them to discourage such behavior. In such cases, merely trying to motivate these employees so that they adhere to the accepted norms of responsible employee behavior may not be enough. Such employees may require some degree of external disciplinary action like punishment. An employee is subjected to disciplinary action when he fails to meet some obligations towards his job or the organization. The primary objective of disciplinary action is to make an employee conform to the organizations rules and regulations. 3.8 Aims and Objectives of Discipline

The aims and objectives of discipline are: 1. To ensure and enable employees to work in accordance with the rules and regulations of the organization. 2. To ensure the employees follow the organizational process and procedures in spite of their different personalities and behaviour.

3. To provide direction to the employees and fix the responsibilities. 4. To improve organizational performance by improving the efficiency of each employee. 5. To maintain a sense of orderliness and conformity to organizational rules in the employees. 6. To maintain common feelings of trust and confidence in the employees towards each other and towards the management. It is essential to have capable and knowledgeable supervisors for a smooth and disciplines working of an organization. It is the responsibility of the supervisors to ensure that all employees are aware of the need to maintain organizational discipline and the implications of indiscipline. However they should take care not to use force as this might result in resistance and rebellion from the employees. The success of any disciplinary procedure depends on the cooperation of both the employer and the employee and the faith and trust they have in each other. This will eventually lead them towards accomplishing the organizational goals. 3.9 Forms and Types of Discipline

Discipline among employees can be achieved in two ways, either through rewards or through penalties. Based on this, discipline can be classified in to two types: 1. Self imposed or positive discipline 2. Enforced or negative discipline Self imposed or positive discipline: If employees are motivated through rewards, appreciation, constructive support, reinforcement or approved personnel actions to conform to organizational rules and regulations, it is termed as positive discipline. The attitude and mindset of the employees is developed to ensure that they willingly conform to the rules and regulations of the organization. Positive discipline requires an efficient leader who can motivate employees and make them work together towards implementing discipline in the organization. The concept of self discipline and self control is emphasized through positive discipline, as employees willingly cooperate to ensure discipline in the organization. They develop mutual respect for each other and the organizational rules and procedures. This happens when they understand and believe that these rules and procedures will contribute to the achievement of the organizational goals as well as their personal goals. Hence positive discipline is also known as cooperative discipline or determinative discipline. If employees are forced to follow the rules and regulations of the organization by inducing fear in them, then it is referred to as negative discipline. In this type of

discipline, the employees fear loss of promotion, an increment or a job and therefore reluctantly or unwillingly try to conform to the organizational rules. Negative or enforced discipline involves the use of techniques like reprimands, fines, lay-offs, demotions and transfers. Using these kinds of techniques will result in only partial success in meeting the standards of performance. Organizations should use negative discipline only when it is extremely essential. All efforts should be made to ensure discipline through a positive approach, so that employees are motivated to perform as per the disciplinary standards laid out by the organization. 3.10 Acts of Indiscipline and causes for Misconduct/Indiscipline

Misconduct or an act of indiscipline impairs the organization, tarnishes its reputation and leads to employee unrest. If not tackled immediately, these acts can lead to disciplinary problems. Disciplinary problems can be classifies in to three types. They are: Minor infractions Major infractions Intolerable offences Minor infractions are acts of misconduct that cause very little harm but if neglected, can accumulate and result in serious problems for the organization. They may relate to coming late to work, negligence etc. major infractions interfere with the orderly operations of the organization and affect the morale of the employees. They relate to cheating, stealing, violating safety regulations etc. Intolerable offences are those that can cause serious harm and damage to the organization. These include use of alcohol/drug while at work, smoking at the workplace where inflammables are stored and instigating co-workers in a situation of conflict. The basic acts of misconduct or indiscipline in an organization can be categorized as follows: * Attendance Attendance is one of the major problems that managers encounter in the organization. It relates to misuse of leave facilities, tardiness and absenteeism. This is more prevalent among unskilled/semi skilled workers and junior management level employees. The reasons for attendance problem could be: Incongruence in employees and organizational goals Personality characteristics like attitude toward work Unpleasant relationship with supervisors and co-workers

Ensured job security leading to a relaxed and uninterested approach * On the job behaviour An employees behaviour should be in accordance with the rules and regulations laid out by the organization any behaviour that hampers the work of the individual or disturbs the performance of other employees demands disciplinary actions. These violations are very easy to identify and need immediate corrective actions. Reason for such acts of indiscipline can be: Lack of proper upbringing and education Work related pressures and strained relationships General attitude and personality of the individual

* Dishonesty Dishonesty is not only stealing or misusing organizational resources. It also involve claiming a colleagues work, cheating, spying, working below potential etc. The reason for dishonesty could be: Social and economic pressures Lack of proper upbringing and education Personality characteristics of the employees Biased and subjective performance evaluation systems. * Activities That Are Harmful For The Organization This category involves all those categories that employees engage in, which affect either their on the job performances or the organizations reputation. Unauthorized strikes, criminal activities, and working for a competitor are some of these activities. Bad mouthing the organization or questioning the organizations key values in public, also contribute unacceptable behaviour. An organization has the right to enforce discipline when employee behaviour off the job becomes an embarrassing issue. Therefore their off the job behaviour must be in congruence with the image of the organization. * Causes of indiscipline and misconduct

When an employee has to perform a job that does not suit his qualifications, experience or aptitude, it can lead to employee frustration. This can lead to acts of misconduct like irregular attendance, work etc. Strained relations with the supervisors or with the co workers can force an employee to indulge in acts of indiscipline similar to ones stated above. Improper or biased evaluation of individuals and their performance can result in demotivated employees, who might resort to misconduct to express their dissatisfaction and distress An inefficient, ineffective and closed door grievance redressal procedure in an organization can result in indiscipline of employees who are dejected and frustrated. Loss of trust or confidence in each other, or in the management, can make employees behave in an indisciplined manner. Lack of proper education and upbringing of the workers can also lead to indiscipline at work Improper or inconvenient working conditions can lead to acts of indiscipline by workers Ambiguous working responsibilities, organizational policies and procedures also lead to frustration among employees and result in misconduct. Social and economic pressures or compulsions, outside the purview of the organization, may also lead to indiscipline and misconduct of employees. All these causes indicate that most of the reasons of indiscipline are internal to the organization. Some reasons are personality specific and a few are due to external factors like social and economic pressures. Therefore, having the right organizational culture and a good manager is important to guide and help employees towards fulfilling their tasks in a disciplined manner. At the same time employees should also be cooperative and should show an equal sense of responsibilities to maintain discipline 3.11 Approaches to Dealing with Indiscipline

3.12.1 Traditional Approaches Traditionally, discipline has been viewed as punitive: managers use their positions of authority to coerce employees into changing conduct or job performance. "Progressive" discipline meant that employees typically were treated with increasingly severe punishments until they altered their behaviour, or else they were discharged. Traditional ways of disciplining employees for infraction of policies

and procedures have been found to be ineffective in many situations, possibly because they are usually punitive in nature. * Progressive Discipline Approach: A progressive discipline model is typical of this approach to discipline. Developed in the 1930s in response to the National Labour Relations Act (NLRA) of 1935, the progressive discipline model features a four-step progression (an oral warning, a written warning, suspension and dismissal) for addressing transgressions committed by workers. The concept of progressive discipline states that penalties must be appropriate to the violation. In this approach discipline is imposed in a progressive manner, giving an opportunity to the employee to correct his or her misconduct voluntarily. The steps in progressive discipline approach can be illustrated as follows: Step 1: Coaching Discuss performance expectations Manager offers necessary support for employee success Step 2: Provide a Verbal Warning Address specific unacceptable behaviour Explore causes of problem and possible solutions Communicate specific change expected Express confidence that the problem will be solved

Step 3: Provide a Written Warning Meet to outline recurrent unacceptable behaviour Avoid threats Gain employees agreement to change Document the meeting in writing Step 4: Terminate Employment Be brief Give specific reasons for termination

 Provide information on employee rights or procedures Collect keys and other golf course property * The Red Hot Stove Rule: Without the continual support of the subordinates, no manager can get things done. But, disciplinary action against a delinquent employee is painful and generates resentment on his part. Hence, a question arises as to how to impose discipline without generating resentment? This is possible through what Douglas McGregor called the Red Hot Stove Rule, which draws an analogy between touching a hot stove and undergoing discipline. According to the Red Hot Stove rule, disciplinary action should have the following consequences: (a) Burns immediately: If disciplinary action is to be taken, it must occur immediately so the individual will understand the reason for it. With the passage of time, people have the tendency to convince themselves that they are not at fault. (b) Provides warning: It is very important to provide advance warning that punishment will follow unacceptable behaviour. As you move closer to hot stove, you are warned by its heat that you will be burned if you touch it. (c) Gives consistent punishment: Disciplinary action should also be consistent in that everyone who performs the same act will be punished accordingly. As with a hot stove, each person who touches it is burned the same. (d) Burns impersonally: Disciplinary action should be impersonal. There are no favourites when this approach is followed.

* Judicial Approach to Discipline: The Industrial Employment Act passed in 1946 requires that all establishments must define the service rules and prepare standing orders. The term Standing orders refer to the rules and regulations, which govern the conditions of employment of workers. They indicate the duties and responsibilities on the part of both the employer and the employees. The standing orders contain rules relating to: classification of employees, working hours, holidays, shift working, attendance, leave, suspension, termination, stoppage of work, redressal of grievances against unfair treatment, etc. Any violation or infringement of these terms and conditions may lead to misconduct or indiscipline. 3.12.2 Alternative Approaches

Non-punitive ways of motivating employees to change their behaviour and improve performance have been experimented with since the 1980s. * Positive Discipline Approach:

This approach is based on the premise that role of a discipline approach should not always be to punish; rather, it should try to regulate the negative behaviour of employees to make them better workers. Positive discipline is a corrective action which results in improved performance, more productivity and effective workforce. Harsh and negative punishment might work in the short term, but the end result will eventually be employee dissatisfaction, low productivity, higher rate of absenteeism and high turnover. This approach tries to mend the negative behaviour of employees by first providing them counselling in terms of what is expected out of them and then giving oral and written warnings to them. Termination or discharge in extreme cases may also take place.

Steps of positive discipline approach 1. Counselling: Counselling is an important part of the discipline process, because it gives a supervisor the opportunity to identify employee work behaviour problems and discuss possible solutions with him. The goal of this phase is to make employee aware of organizational policies and rules. Counselling by a supervisor in the work unit can have positive effects also. Often, employees simply need to be made aware of rules. An oral warning can also be given to employee during counselling. Confrontation helps to understand the employee point of view as well. However, proper training should be given to the supervisors regarding counselling skills to make this process successful. 2. Written warning: If employee behaviour has not been improved by counselling sessions, then a second conference is held between the supervisor and the employee. This stage is documented in written form. As part of this phase, the employee and the supervisor develop written solutions to prevent further problems from occurring. 3. Final warning: When the employee does not follow the written solutions, a final warning conference is held. In that conference the supervisor emphasizes to the employee the importance of correcting the inappropriate actions. Some firms incorporate a decision-day off, in which the employee is given a day off with pay to develop a firm, written action plan to remedy the problem behaviours. The idea is to impress on the offender the seriousness of the problem and the managers determination to see that the behaviour is changed. 4.

Discharge: If the employee fails to follow the action plan that was developed and further problem behaviours exist, then the supervisor will discharge the employee. The positive aspect of this approach is that it focuses on problem solving rather than punishing and penalizing. This approach involves positive confrontation with the problem employee and thus gives him an opportunity to justify himself. The supervisor makes him aware of the company policies. The greatest difficulty with this is the extensive amount of training required for supervisors and managers to become effective counsellors. Also, the process often takes more supervisory time than the progressive discipline approach. | 3.12 Disciplinary Procedure

Though there is no rigid and specific procedure for taking a disciplinary action, the disciplinary procedure followed in Indian industries usually consists of the following steps:

(a) Issuing a letter of charge: When an employee commits an act of misconduct that requires disciplinary action, the employee concerned should be issued a charge sheet. Charges of misconduct or indiscipline should be clearly and precisely stated in the charge sheet. The charge sheet should also ask for an explanation for the said delinquent act and the employee should be given sufficient time for answering this.

(b) Consideration of explanation: On getting the answer for the letter of charge served, the explanation furnished be considered and if it is satisfactory, no disciplinary action need be taken. On the contrary when the management is not satisfied with the employees explanation there is a need for serving a show-cause notice.

(c) Show-cause notice: Show-cause notice is issued by the manager when he believes that there is sufficient prima facie evidence of employees misconduct. However, this gives the employee another chance to account for his misconduct and rebut the charges made against him. Enquiry should also be initiated by first serving him a notice of enquiry indicating clearly the name of the enquiring officer, time, date and place of enquiry, etc.

(d) Holding of a full-fledge enquiry: This must be in conformity with the principle of natural justice, that is, the employee concerned must be given an opportunity, of being heard. When the process of enquiry is over and the findings of the same are

recorded, the Enquiry Officer should suggest the nature of disciplinary action to be taken.

(e) Making a final order of punishment: Disciplinary action is to be taken when the misconduct of the employee is proved. While deciding the nature of disciplinary action, the employees previous record, precedents, effects of disciplinary action on other employees, etc., have to be considered. When the employee feels that the enquiry conducted was not proper and the action taken is unjustified, he must be given a chance to make an appeal.

(f) Follow up: After taking the disciplinary action, a proper follow up action has to be taken and the consequences of the implementation of disciplinary action should be noted and taken care of.

3.13

Types of Disciplinary Actions

Different acts of indiscipline deserve different kinds of disciplinary action based on their severity and gravity. The various disciplinary actions that are administered in response to noticed acts of indiscipline by employees are verbal warning, first written warning, final written warning, suspension, pay cut, demotion and dismissal. Verbal warning: Verbal warning is an informal warning given to an employee. It is one of the mildest actions taken against an employee for an act of indiscipline. Such warnings are given in an informal and private environment. The supervisor should explain to the employee, the rule that has been violated and the implications for violating it. For example, if an employee reports late to the office frequently, then the manager might call the employee to his cabin and explain that employees should report to the office on time. The manager should make efforts to find out the reason for the employee being late and ask for possible alternate solutions to the problem. If the solutions offered by the employee are not suitable, then the manager can help him to find the ways to avoid problems in future. The employee should also be made aware of the consequences of not reporting to office on time. It is good practice to keep a temporary record of this reprimand in the employees file. If the verbal warning is effective, further disciplinary action can be avoided. However, if the employee fails to improve his performance, the manager has to resort to more severe action. Written Warning:

If the oral warning fails, then the next step is to give a written warning to the employee. This is the second step in progressive disciplinary procedure and the first formal stage of the disciplinary procedure. This is a formal stage as the written warning is placed in the employees file and a copy given to the employee and one send to the personnel department. The procedure followed before a written warning is issued, is almost the same as that of the verbal warning. The employee is informed of the violation, its effects, and potential consequences of future violations. The only difference between the two actions is that the manager tells the employees that a written warning will be issued. The manager writes down the rule that has been violated, any assurances given by the employee that he will correct his behavior, and the future action that will be administered if the deviant behavior is repeated. Suspension: If the employee does not adhere to the rules and regulations of the organization in spite of being given a verbal and written warning, then the next step is suspension of the employee. However, if the act of discipline is quite serious, then the employee may be suspended without any prior verbal or written warning. In suspension, the employee is laid-off from work for a short period of time and he is not paid during this time. This kind of action helps in making the employee realize his fault and inconvenience that his behavior has caused to others in workplace.

Demotion: If no improvement is noticed in the performance of the employee even after suspension, and if the management wants to strongly avoid dismissing the employee, demotion may be an alternative. Very few organizations use this step as a disciplinary action, the reason being its tendency to demoralize not only the employee but his coworkers as well. This kind of punishment is not temporary, as the employee has to continue in the demoted job for an unspecified period until the management finds his performance improved. This may add the employees distress and he may fail to perform up to the mark even in this job. Demotion is administered only when i. The employee clearly does not have the ability to perform the job. ii. Management perceives itself legally or ethically constrained from dismissing the employee, and iii. It is believed that this action will awaken the employee to change his behavior. Pay cut:

Cutting the undisciplined employees pay is another alternative used in administering disciplinary action. This approach has a demoralizing effect on the employees, but is considered a rational action by management if the only alternative is dismissal. If the employee alters his behavior, the pay cut can always be cancelled. Dismissal: The ultimate disciplinary punishment is dismissing the erring employee. This action must be used only for the most serious offense or after all earlier steps have failed. The decision to dismiss an employee should be given long and hard consideration before being implemented. Being sacked from a job causes emotional trauma to an individual. This is especially true of employees who have been with the organization for a long period and for those past their prime age in the job market. In addition, the management must consider the possibility that a dismissed employee might resort to legal action to fight the decision. Before discharging the employee of his duties for gross indiscipline, the following condition must be satisfied: * The nature of the misconduct should indicate that discharge or dismissal is an appropriate punishment and this kind of punishment should have been mentioned in the standing orders. * After a charge sheet has been filed against the employee, an enquiry should be conducted regarding the miss conduct and prior notice of the time, place and the date of enquiry should be given to the employee. * The enquiry conducted should be fair and the employee should be given a chance to defend himself and to prevent witness from support of his contention or case. * At the end of the enquiry, the enquiry officer should record the findings based on recorded evidence. * The findings must be based on recorded evidence and should not be biased. * The order of dismissal or discharge of the employee must be passed in good faith. * The order must ne duly communicated to the employees against whom it has been passed. 3.14 Code of Discipline in the Indian Industry

The code of Discipline in the Indian industry was formulated on the recommendations of the Indian Labor conference held in New Delhi in the year 1957.The code was made applicable to the industry from 1st June 1958. The main

aim of the code was to lay down certain principles of discipline that govern the Indian industry. The basic feature of the code of discipline is as follows: * Both the management and the employees should abide by certain self-imposed rules in order to avoid disputes. In case disputes arise, they should be settled through negotiation, conciliation and voluntary arbitration. * Each party should acknowledge and respect each others rights and responsibilities. * No party should take any unilateral decision regarding any disputes. The existing machinery for settlement should be utilized. * The code discourages litigation and lays emphasis on settlement of disputes through negotiation, conciliation and voluntary arbitration rather than through adjudication. * Acts of violence, coercion, intimidation or incitement should not be indulged in. * There should be precision and speedy implementation of disciplinary action and any agreements reached. * Employees and trade unions can take appropriate actions in case they find officers and supervisors indulging in activities which are against the code. * The trade union must be recognized in accordance with the criteria laid down for this purpose. Only unions that observe the code of Discipline are entitled to recognition. To conclude, the objectives of the code are to promote a healthy working environment and maintain discipline in the industry. It aims to eliminate all forms of coercion, intimidation and violation of rules, regulations and procedures and procedures governing industrial relations. It also highlights to the management and the employees, the importance of the recognition of each others rights. Industrial Employment (Standing Orders) Act, 1946 The primary objective of the industrial employment (Standing Orders) Act, 1946 is to ensure protection of labor by providing uniform and stable conditions of service. Prior to this act, the terms and conditions of employment were changed and misused frequently. They were the source of constant friction and disputes in courts leading bad industrial relations. This act was enacted to address these problems. The industrial Employment (Standing Orders) Act, 1946 requires employees of certain industrial establishments to define clearly, and with adequate precision, the conditions of employment, i.e. standing order or service rules, and to make them known to the workmen employed by them.

Every industrial establishment covered by the Act must have a set of certified standing orders which shall be binding on the employer and the employees. The central and state governments have prescribed MODEL STANDING ORDERS that serve as the basic foundation of the rules of the conduct. Industrial establishments can either draft their own standing orders on the basis of the MODEL STANDING ORDERS, and get them certified by the concerned authorities, or simply adopt the MODEL STANDING ORDERS. The employer has to fulfill certain obligations concerning the standing orders. He has to prepare the draft of the standing orders covering all the matters specified in the schedule and conforming to the MODEL STANDING ORDERS. The employer should give five copies of the draft to the certifying officer, along with an application in the prescribed form. Particulars like details of the employees in the establishments, and the trade union, if any, to which they belong have to be submitted in the prescribed format. The application has to be submitted within six months from the date the act becomes applicable in the establishment. Employees of the establishment are bound by the certified standing orders and should adhere to the laid down rules. If a question arises about the application or interpretation of any certified standing order, it may be referred by the employer, employee or the trade union to a labor court established for the administration of such procedures. The labor court, after listening to the concerned parties, make a decision which is final and binding on all the parties involved.

3. Industry Examples for Employee Grievance and Disciplinary Procedures 4.15 Punjab National Bank Employee Grievance Redressal System- PNB SAMADHAN PNB SAMADHAAN the employee grievance redressal system, is being introduced with a view to lend an ear to the genuine work-related and personal problems faced by the staff members which have a bearing on their work, so that the same can be considered for resolution. PNB SAMADHAAN purports to provide an open, fair and fast channel for the staff members to bring forth their genuine grievances/issues to the notice of the Management. Through this structured mechanism, staff members may address such issues directly to the Chairman and Managing Director of the Bank by e-mailing at his e-mail address which is: cmd@pnb.co.in. Alternatively, they may send their representations to CMDs Secretariat:

On receipt of the representation, a written acknowledgement will be sent to the

concerned staff member and appropriate action will be initiated on the same. The details of the action thus initiated will also be informed to the staff member.

In order to implement PNB SAMADHAAN in its true spirit, the following are observed: 1. By Staff members: a) In respect of staff members posted in branches/Circle Offices, the aggrieved staff member should first send his representation to his controlling Circle Office. It is only when he does not receive an acknowledgement of the same from the Circle Head within 7 days of his sending the representation or when he is not satisfied with the decision taken at the CO level, that he can send his representation to the Chairman and Managing Director of the Bank. b) In respect of staff members posted in HO Divisions, the aggrieved staff member should first send his representation to his Divisional Head. It is only when he does not receive an acknowledgement of the same from the concerned Division within 7 days of his sending the representation or when he is not satisfied with the decision taken at the HO Division level, that he can send his representation to the Chairman and Managing Director of the Bank.

2. By all Circle Offices and Head Office Divisions: a) On receipt of representation from the aggrieved staff member under PNB SAMADHAAN, a written acknowledgement should be sent to the staff member by the Circle Head within 7 days of receipt of representation at CO. On examination of the matter at CO level an appropriate action should be taken to look into the grievance(s) of the staff member and the details of the action taken should be informed to the staff member within 15 days of having acknowledged receipt of the representation. b) Similar time-frame should be followed at HO Division level in respect of representations received at HO Division respectively.

4.16

Steel Authority Of India Limited(SAIL)

Ministry of Steel has a well laid out three-tier grievance redressal mechanism which ensures fast disposal of grievances. In the Ministry, there are very few cases of grievances redressal and these are settled within a period of 3 months.

Computerization of grievance redressal has been done. One of the Joint Secretary functions as a Director of Public & Staff Grievances in respect of the entire Ministry of Steel, the only attached office and the various PSUs functioning under the Ministry of Steel. The overview of status of the public grievance redressal machinery in PSUs is as under:-

Effective internal grievances redressal machinery exists in SAIL plants and units, separately for executives and non- executives. The grievance procedure has evolved after sustained deliberations and consent of employees, trade unions and associations. In fact, at Rourkela Steel Plant, the grievance redressal machinery bears its origin and draws strength from a tripartite settlement between RSP management and the then recognized trade union under the Industrial Act, which has laid down the constitution of bipartite grievance redressal committees and the modalities of resolving the grievances raised by the workers through these committees. The grievances in SAIL plants/units are dealt in 3 stages and employees are given an opportunity at every stage to raise grievances relating to irregularities, working conditions, transfers, leave, work assignments and welfare amenities etc. Such issues are effectively settled through the time-tested system of grievance management. However, majority of the grievances are redressed informally in view of the participative nature of the environment existing in the steel plants. The system is comprehensive, simple and flexible and has proved effective in promoting harmonious relationships between employees and management. 4.17 Infosys Technologies Limited

About Infosys: Infosys Technologies Ltd. was started in 1981 by seven people with US$ 250. Today, Infosys is a global leader in the IT and consulting domain with revenues of over US$ 4 billion. Infosys defines, designs and delivers technology-enabled business solutions that help Global 2000 companies win in a Flat World. Infosys also provides a complete range of services by leveraging our domain and business expertise and strategic alliances with leading technology providers. Infosys pioneered the Global Delivery Model (GDM), which emerged as a disruptive force in the industry leading to the rise of offshore outsourcing. The GDM is based

on the principle of taking work to the location where the best talent is available, where it makes the best economic sense, with the least amount of acceptable risk. Infosys has a global footprint with over 50 offices and development centers in India, China, Australia, the Czech Republic, Poland, the UK, Canada and Japan. Infosys and its subsidiaries have 105,453 employees as on September 30, 2009. Infosys Vision: To be a globally respected corporation that provides best of breed business solutions, leveraging technology, delivered by best-in-class people.

Values at Infosys: Infosys has always followed the highest standards of corporate governance and has set new levels in transparency and integrity. Infosys has adopted a code of business conduct and ethics, which is based on what are called the Infosys Core Values. These core values in short are called C-LIFE; Customer Delight, Leadership by Example, Integrity and Transparency, Fairness and Pursuit of Excellence. The vision and values at Infosys can be summarized by the following pictorial diagram:

Grievance Redressal System in Infosys: There are various mechanisms for raising the grievances by the employees in Infosys. * ASHI (Anti Sexual Harassment Policy in Infosys) This policy was introduced in the early 2000s after a case was reported in Infosys. According to this policy if a person (male/female) feels that he has been harassed in the organization he/she can raise a complain to his or her superiors. The superior will forward the issue to the committee which will be formed and the issue will be taken up. All the parties involved in the case are called for hearing and necessary action is taken. The strength of the penalty depends on the extent to which the harassment has been done. It may extent from warnings to termination from the company and legal action thereafter. Infosys educates the employees about the importance of ASHI during training period and deviation from above is considered to be very serious. All the employees are expected to strictly adhere to the anti-harassment policy. Various training and education programs are conducted from time to time for the employees. * HEAR

HEAR initiative is one of the newest initiatives to be inducted in to Infosys grievance redressal System. It is for the employees to raise their grievances when they think that they are not given proper ratings during appraisals. The employee can raise a complaint against his/her immediate boss to a committee. The committee will investigate about the issue and necessary action will be taken. Normally the committee will consist of three independent managers, so that transparency will be there. In addition to the above mentioned initiatives there are other systems like Grievance Redressal Board. In this the employees can send a mail (GRB@infosys.com) to the board and the complaint will be registered and necessary action will be taken. There is a concept called Brown Bag Snacks in Infosys which is also a forum in which the employees can raise their grievances. It is a meeting which is headed by the head of the business unit and select number of employees will participate. It normally happens outside the office and the employees can raise their concerns in the meeting. There will be an HR executive present who will take note of the issues raised by the employees and he will give the necessary clarifications required. The above meetings happen in an interval of 45 days. Skip Level meetings are those which are held every 30 days. In this meeting the managers manager will be present and employees can raise their concerns to him. After that the HR executive will intimate the employees about the status of their issue. Various issues are solved through the use of the above mentioned mechanisms in Infosys. Thus it can be seen as why Infosys was voted as one of the best companies to work for in India. Employee Discipline at Infosys: Infosys has established a code of conduct for all its employees based on the core values and it believes that compliance to the code of conduct is Everybodys business. The code of conduct encompasses major aspects of an employees day to day activities like: a. Conduct at the workplace Infosys firmly believes in providing a harassment free work environment to its employees and hence has in place a anti-harassment policy and any violation of this policy would be very strictly dealt by the company and many a times would lead to termination of the job. Apart from this the code of conduct also includes an anti-sexual harassment policy to help curb any sexual harassment and harassment based on pregnancy. Needless to say, this policy is very strict on employees and any violation to this policy would

lead to termination. The company has also established a Grievance Redress Body to address to such issues of harassment.

The company also has a policy to curb the drug/alcohol abuse. This policy requires that employees are not in possession of or being under the influence of illegal drugs and alcohol on the job.

Dress code: Employees at Infosys are expected to dress neatly and in a manner consistent with the nature of work performed. The dress code for Infoscions is as follows:

Men: Monday & Tuesday Formals with tie Wednesday & Thursday Formals (Can wear slack/half-arm shirts) Friday Casuals (No torn jeans, flashy T-shirts, sandals)

Women: Monday to Thursday Business formals / Saree / Selwar kameez Friday Casuals (No torn jeans, flashy T-shirts, short-skirts, sandals)

Any violation to the dress-code would attract a fine of Rs. 200/- which would deduct from the employees salary.

b. Protecting Companys confidential information Infosyss confidential information includes architecture, source code, product plans, road maps, names and lists of customers, dealers, employees and financial information. This information is the property of the company and may be protected by patent, trademark, copyright and trade secret laws and all such information has to be used by employees for business purposes only. Thus an employee at Infosys has the responsibility of safeguarding, securing and proper disposal of confidential

information in accordance with the Companys policy on Maintaining and Managing Records set forth in the Code of Business Conduct and Ethics.

All employees, at the time of joining the company are required to sign a Proprietary Information and Invention Agreement. Under this agreement, the employees are required to abide the agreement and not disclose the Companys confidential information to anyone or use it to benefit anyone other than the Company without prior written consent of authorized Company Officer.

c. Safety at workplace All Infoscions are required to comply with all applicable health and safety policies which are again in compliance with the local laws to maintain a secure and healthy work environment.

d. Use of Companys assets Infosys believes that it is the responsibility of each and every employee to protect the Companys assets and hence the Company lays stress on the usage and handling of its assets and resources. This policy not just includes the employees but the agents/contractors as well.

According to this policy, all company employees, agents or contractors are responsible for the proper usage of Company assets, and must safeguard such assets against loss, damage, misuse or theft. Employees, agents or contractors who violate any aspect of this policy or who demonstrate poor judgment in the manner in which they use any Company asset may be subject to disciplinary action, up to and including termination of employment or business relationship at the Companys sole discretion.

The Companys assets or resources include the brand and logo, Companys funds, computers and other equipment, software and electronic usage.