2011

Human Resource Management-III 1

Assignment on Grievance Procedure

Introduction
There is no organization where employees do not have grievances against their
different authorities. These grievances may be real or imaginary, valid or
invalid. A disconnected workforce is sure sign of potential turmoil affecting
adversely the interests of the organizations. It may also be known as
dissatisfaction or complaint.

In practice there is hardly a company where the employees do not have

Grievance of one kind or the other. A grievance produces low morale,
unhappiness, frustration and discontent in the employees which ultimately
affects the concentration, efficiency and productivity of the employees.
Therefore prompt redressal of grievances is a must for creating good labour
management relations and promoting efficiency among employees.

The organizations that do not provides such complaint processing mechanisms

for the employees may suffer from poor work, employee resentment, poor
customer service, resistance to changes and poor labour management relations.

Grievance may not be allowed to accumulate because grievance breeds

grievances. It will ultimately lead to increase d absenteeism, go slow, and work
to rule, demonstrations, gheraos and strikes. Thus grievance is rust on human
relations.

In labour management relations, grievance is a complaint or representation

made in writing as regard to a company related matter arising from employment
or service conditions or from conditions involving unfair treatment by the
employer or from violation of any agreement or standing instructions.

Grievance is defined as real or imaginary feeling of personal injustice which an

employee has concerning his employment relations. Grievance implies
dissatisfaction or distress or suffering grief caused unnecessarily or illegally.

A grievance handling system like counseling is a process of employee’s

emotional release of their dissatisfaction. It provides a means by which a
frustrated and aggrieved employee can become aggressive and strike back at the
various controls which any group imposes on him. Grievance procedures help to
establish and maintain a work culture or way of life.

Abhi Sarkar (BBA/08/13) BBA 6th Semester JIS College of Engineering (CMS)
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Assignment on Grievance Procedure

A manager lends to deal each problem with more human touch when he knows
that some of these actions are subject to challenges and review in a grievance
system. Every worker has an equal right to present his grievances so are well
settled to the satisfaction of the workers.

Meaning of Grievance
Employees have got certain expectations which he thinks must be fulfilled by
the employer for which is working. But when his organization fails to do this,
he develops a feeling of discontent or dissatisfaction. An employ feels that
something is unfair in the organization he is said to have a “Grievance”. If an
individual’s grievances are unattended and unresolved they will become
Collective Disputes.

In fact grievance is caused due to the difference between the employee

expectations and management practice. It is more formal in character than a
complaint. It can be valid or ridiculous and grow out of something connected
with company operations and policies. A well defined grievance procedure is an
important element of a sound industrial relations machinery and industrial
peace. Prompt and effective disposal of workers grievance is the key to
industrial peace.

Personnel management in social science which relates to the study of human

behavior in factory and industrial organization. Whatever philosophy of
management is adopted in managing the, the birth of complaints and
dissatisfaction is but natural.

Hence, manager should try to reach causes and then try to reach causes and then
try to resolve the grievance as they come to their knowledge. The detection of
grievances and their proper handling is must for a healthy organizational
atmosphere.

Definitions
In employment law, a grievance is a formal, itemized complaint to management
that it has treated one or more employees unfairly or has violated the contract or
collective bargaining agreement.

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Assignment on Grievance Procedure

Use of the grievance system is a protected activity. Restraint, interference,

coercion, discrimination, or reprisal against an employee or an employee's
designated representative because of the filing of a grievance is legally
prohibited. Employees who provide information concerning matters related to
grievances are similarly protected. An individual who engages in restrictive
activities may be committing a prohibited personnel practice which could
warrant serious disciplinary act.

Different authors have different concept of grievance in own ways:

“A grievance is defined as anything that an employee thinks or feels is wrong

generally accompanied by an activity disturbing his peace of mind. It does not
have to be justified.”

—R. P. Calhoon

Grievance can be defined as, “any discontent or dissatisfaction whether

expressed or not, weather valid or not, arising out of anything connected with
the company that an employee thinks, believes or even feels is unfair, unjust or
inequitable.”

—Prof. M. J. Jucius

“A grievance can be any discontentment or dissatisfaction and is a written

complaint filed by employee and claiming unfair treatment”

—Dale Yoder

“Any dissatisfaction or feeling of injustice in connection with one’s employment

situation that is brought to the notice of the management”

—Breach

“The grievance is a type of discontent which must always be expressed. A

grievance is usually more formal in character than a complaint. It can be valid
or ridiculous, and must grow out of something connected with company
operations or policy. It must involve an interpretation or application of the
provisions of the labour contract.”

—Edwin B Flippo

Features of Grievances

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Assignment on Grievance Procedure

Pigros and Myers observe that the three terms “dissatisfaction” and analysis of
various definitions covered above reveal that:

Grievance is a word which covers dissatisfaction and which has one or more of
the following characteristics:

 It may be unvoiced or expressly stated by an employee.

 It may be written or oral.
 It may be valid and legitimate, untrue or completely false or ridiculous.
 It may arise out of something connected with the organization or work
like wages, work assignments ect.
 An employee feels that an injustice has been done to him.

Whenever there is any discontent among employees, it is bound to result in

unhappiness, frustration, indifference to work.

The Causes of Grievances

The causes of employee grievances includes—
 Demands for individual wage adjustments,
 Complaints about the incentive systems
 Complaints about the job classifications,
 Complaints against a particular foreman
 Complaints concerning disciplinary measures and procedures.
 Objections to the general methods of supervision,
 Loose calculation and interpretation of seniority rules, and
 Unsatisfactory interpretation of agreements.
 Promotions
 Disciplinary discharge or lay-off,
 Transfer for another department or another shift,
 Inadequacy of safety and health services / devices
 Non-availability of material in time
 Violation of contracts relating to collective bargaining
 Improper job assignment, and
 Undesirable or unsatisfactory conditions of work.

Effects of Grievances

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Assignment on Grievance Procedure

Grievances, if they are not identified and redressed, may affect adversely the
workers,
managers and their organisation. The effects include:
 On Production :
 Low quality of production
 Low quality of production and productivity
 Increase in the wastage of material, spoilage/leakage of machinery.
 Increase in the cost of production per unit.

 On Employees:
 Increase in the rate of absenteeism and turnover
 Reduces the level of commitment, sincerity and punctuality.
 Increases the incidence of accidents.
 Reduces the level of employee morale.

 On managers:
 Strains the superior-subordinate relations.
 Increases the degree of supervision, control and follow up.
 Increases in disciplinary action cases.
 Increases in unrest and, thereby, machinery to maintain industrial
peace.

Breach also refers to several reasons why there should be a formal procedure to
handle grievances:

All employee complaints and grievances are in actual practice not settled
satisfactorily by the first level supervisor, due to lack of necessary human
relations skills or authority to act.

It serves as a medium of upward communication, whereby the management

becomes aware of employee frustrations, problems and expectations.
It operates like a pressure-release valve on a steam boiler, providing the
employees with an outlet to vent their frustrations, discontents and gripes.
It also reduces the likelihood of arbitrary action by supervisors, since the
supervisors know that the employees are able to protect such behavior and make
their protests heard by higher manager.

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Assignment on Grievance Procedure

The very fact that employees have a right to be heard-and actually are heard-
helps to improve morale.
The benefits of a Grievance
Handling Procedure

According to Jackson, further benefits that will accrue to both the employer and
employees are—

o It encourages employees to raise concerns without fear of reprisal.

o It provides a fair and speedy means of dealing with complaints.
o It prevents minor disagreements developing into serious disputes.
o It saves employer’s time and money as solutions are found for workplace
problems.
o It helps to build an organisational climate, based on openness and trust.

Objective of a Grievance Handling Procedure

Jackson lays down the objectives of a grievance-handling procedure as follows:

 To enable the employees to air his/her grievance.
 To clarify the nature of the grievance.
 To investigate the reasons for dissatisfaction.
 To obtain, where possible, a speedy resolution to the problem.
 To take appropriate actions and ensure that promises are kept.
 To inform the employee of his or her right to take the grievance to next
stage of the procedure, in the event of an unsuccessful resolution.

Key Features of a Good Grievance Handling Procedure

Torrington and hall refer to four key features of a grievance-handling procedure

—

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Assignment on Grievance Procedure

Fairness
Fairness is needed not only to be just but also to keep the procedure viable, for
if employees develop the belief that the procedure is only a sham, then its value
will be lost, and the other means sought to deal with the grievances. This also
involves following the principles of natural justice, as in the case of a
disciplinary procedure.

Facilities for Representation

Representation, e.g. by a shop steward; can be of help to the individual
employee who lacks the confidence or experience to take on the management
single-handedly. However, there is also the risk that the presence of the
representative produces a defensive management attitude, affected by a number
of other issues on which the manager and shop steward may be at loggerheads.

Procedural Steps
Steps should be limited to three. There no value in having more just because
there are more levels in management hierarchy. This will only lengthen the time
taken to deal with matters and will soon bring the procedure into disrepute.

Promptness
Promptness is needed to avoid the bitterness and frustration that can come from
delay. When an employee goes into procedure, it is like pulling the
communication cord in the train. The action is not taken lightly and it is in
anticipation of a swift resolution. Furthermore, the manager whose decision is
being questioned will have a difficult time until the matter is settled.
Discovery of Grievances
Grievances can be uncovered in a number of ways. Gossip and grapevine offer
vital clues about employee grievances. Gripe boxes, open door policies,
periodic interviews, exit surveys could also be undertaken to cover the mystery
surrounding grievances. These methods are discussed below;

Observation: A manager/ supervisor can usually track the behaviors of people

working under him. If a particular employee is not getting along with people,
spoiling materials due to carelessness or recklessness, showing indifference to
commands, reporting late for work or is remaining absent- the signals are fairly
obvious. Since the supervisor is close to the scene of action, he can always spot
such unusual behaviors and report promptly.

Abhi Sarkar (BBA/08/13) BBA 6th Semester JIS College of Engineering (CMS)
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Assignment on Grievance Procedure

Grievance Procedure: A systematic grievance procedure is best means to

highlight employee dissatisfaction at various levels. Management, to this end,
must encourage employees to use it whenever they have anything to say. In the
absence of such a procedure, grievances pile up and erupt in violent forms at a
future date. By that time things might have taken an ugly shape, impairing
cordial relations between labour and management. If management fails to
induce employees to express their grievances, unions will take over and emerge
as powerful bargaining representatives.

Gripe boxes: A gripe box may be kept at prominent locations in the factory for
lodging anonymous complaints pertaining to any aspect relating to work. Since
the complainant need not reveal his identity, he can express his feelings of
injustice or discontent frankly and without any fear of victimization.

Open door policy: This is a kind of walk-in-meeting with the manager when
the employee can express his feelings openly about any work-related grievance.
The Manager can cross-check the details of the complaint through various
means at his disposal.

Exit interview: Employees usually leave their current jobs due to

dissatisfaction or better prospects outside. If the manager tries sincerely through
an exit interview, he might be able to find out the real reasons why “X” is
leaving the organisation. To elicit valuable information, the manager must
encourage the employees to give a correct picture so as to rectify the mistakes
promptly. If the employee is not providing fearless answers, he may be given a
questionnaire to fill up and post the same after all his dues are cleared from the
organisation where he is currently employed.

Opinion Surveys: Surveys may be conducted periodically to elicit the opinions

of employees about the organisation and its politics.

Essential Prerequisites of a Grievance Procedure

Every organisation should have a systematic grievance procedure in order to
redress the grievances effectively. As explained above, unattended grievances
may culminate in the form of violent conflicts later on. The grievance
procedure, to be sound and effective, should possess certain prerequisites—

Conformity with statutory provisions: Due consideration must be given to the

prevailing legislation while designing the grievance handling procedure.

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Assignment on Grievance Procedure

 Unambiguity: Every aspect of the grievance handling procedure should be

clear and unambiguous. All employees should know whom to approach first
when they have a grievance, whether the complaint should be written or oral,
the minimum time in which the redressal is assured, etc. The redressing official
should also know the limits within which he can take the required action.

Simplicity: The grievance handling procedure should be simple and short. If

the procedure is complicated it may discourage employees and they may fail to
make use of it in a proper manner.

Promptness: The grievance of the employee should be promptly handled and

necessary action must be taken immediately. This is good for both the employer
and management, because if the wrong doer is punished late, it may affect the
morale of other employees as well.

Training: The supervisors and the union representatives should be properly

trained in all aspects of grievance-handling beforehand, or else it will
complicate the problem.

Follow up: The Personnel Department should keep track of the effectiveness
and the functioning of grievance handling procedure and make necessary
changes to improve it from time to time.

Steps in the Grievance Procedure

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.

Define correctly: The management has to define the problem properly and
accurately after it is identified/ acknowledged.

Collect Data: Complete information should be collected from all the parties
relating to the grievance. Information should be classified as facts, data,
opinions, etc.

Prompt redressal: The grievance should redress by implementing the solution.

Implement and follow up: The Implementation of the solution must be followed
up at every stage in order to ensure effective and speedy implementation.

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Assignment on Grievance Procedure

Model Grievance Procedure

The Model grievance procedure suggested by the National Commission of
Labour involves six successive time bound steps each leading to the next, in
case of dissatisfaction. The aggrieved worker in the first instance will approach
the foreman and tell him of his grievances orally. The foreman has to redress his
grievance and if the worker is not satisfied with this redressal, he can approach
the supervisor. The Supervisor has to provide an answer within 48 hours. In the
event of the supervisor not giving an answer or the answer not being acceptable
to the worker, the worker goes to the next step. At this stage, the worker either
alone or accompanied with his departmental representative approaches the Head
of the Department who has to give an answer within three days. If the
Department fails to give answer or if the worker is not satisfied with his answer,
the worker may appeal to the Grievance Committee, consisting of the
representatives of the employer and the employees. The recommendation of this
Committee should be communicated to the Manager within seven days from the
date of the grievance reaching it. Unanimous decisions, if any, of the
Committee shall be implemented by the Management. If there is no unanimity,
the views of the members of the Committee shall be placed before the Manager
for decision. The Manager has to take a decision and the worker within three
days.

The worker can make an appeal against the manager’s decision and such an
appeal has to be decided within a week. A Union official may accompany the
worker to the manager for discussion and if no decision is arrived at this stage,
both the union and management may refer the grievance to voluntary arbitration
within a week of receipt of the management’s decision. The worker in actual
practice may not resort to all the above mentioned steps. For example, if the
grievance is piqued because of his dismissal or discharge he can resort to the
second step directly and he can make an appeal against dismissal or discharge.

Abhi Sarkar (BBA/08/13) BBA 6th Semester JIS College of Engineering (CMS)
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Assignment on Grievance Procedure

Diagrammatic representation of model Grievance

Procedure:

U
Work with Grievance
N
S
Verbal Referring
A
T Immediate Superior
I
S Time limit for
F answering 48 hrs
I Department Head
E
D Time limit for
answering 3days
Grievance Committee

W Time limit for

answering 7 days
O Higher Management for Revision
R
K
E Union may ask for
voluntary
R
Voluntary Arbitration arbitration

Decision binding on both parties

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Assignment on Grievance Procedure

Redressal of Grievances (ROG)

Nair and Nair state that in the Indian context, certain guidelines were evolved in
formulating grievances-handling procedures in different types of organizations
–small, big, unionized, non-unionized.

According to Nair and Nair, grievance-handling procedures can be broadly

classified as 3-step, 4-step or 5-step. One of the prominent features of the
procedure suggested by Nair and Nair is the intervention of Grievance
Committees in the 5-step procedure, which works in the Indian context. This
committee consists of:

In unionized context, two nominees each from the management and the union
(union representative should be from the same department as the aggrieved
employee)

In a non-unionized set up, two representatives from the management,

representative in the Works secretary/vice president of the ‘Works Committee.”

Grievance Management in Indian Industry

At present, there are three legislations dealing with the grievances of employees
working in industries. The Industrial Employment (Standing Orders) ACT,
1946, REQUIRES THAT EVERY ESTABLISHMENT EMPLOYING 100 OR
MORE WORKERS SHOULD FRAME STANDING ORDERS. These should
contain, among other things, a provision for redressal of grievances of workers
against unfair treatment and wrongfu7l actions by employer or his agents. The
Factories Act, 1948, provides for the appointment of a Welfare Officer in every
factory ordinarily employing 500 or more workers. These Welfare Officers also
look after complaints and grievances of workers. They will look after proper
implementation of existing labour legislation. Besides, individual disputes
relating to discharge, dismissal or retrenchment can be taken up for relief under
the Industrial Disputes Act, 1947, as amended in 1965.

However, the existing labour legislation is not being implemented properly by

employers. There is a lack of fairness on their part. Welfare Officers have also
not been keen on protecting the interests of workers in the organised sector. In
certain cases, they are playing a dual role. It is unfortunate that the public

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Assignment on Grievance Procedure

sector, which should set up an example for the private sector, has not been
implementing labour laws properly.

In India, a Model Grievance Procedure was adopted by the Indian Labour

Conference in its 16th session held in 1958. At present, Indian Industries are
adopting either the Model Grievance Procedure or procedures formulated by
themselves with modifications in Model Grievance Procedure. In other words,
the grievance procedures are mostly voluntary in nature.

Guidelines for Handling Grievances

The following guidelines may help a supervisor while dealing with grievances.
He need not follow all these steps in every case. It is sufficient to keep these
views in mind while handling grievances.

 Treat every case as i8mportant and get the grievance in writing.

 Talk to the employee directly. Encourage him to speak the truth.
 Give him a patient hearing.
 Discuss in a private place. Ensure confidentiality, if necessary.
 Handle each case within a time frame.
 Examine company provisions in each case. Identify violations, if any. Do
not hold back the remedy if company is wrong. Inform your superior
about all grievances.
 Get all relevant facts about the grievance. Examine the personal record of
the aggrieved worker.

Sources:
 Human Resource Management-III by Sahni & Bharara
 citeHR.com
 scribed.com

_______________________
ABHI SARKAR
ID: BBA/08/13

Abhi Sarkar (BBA/08/13) BBA 6th Semester JIS College of Engineering (CMS)
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Assignment on Grievance Procedure

Date: ____/____/2011

________________________
Teachers Sign

Abhi Sarkar (BBA/08/13) BBA 6th Semester JIS College of Engineering (CMS)