GRIEVANCE PROCEDURE

Presented by:
Kirti Khalkho
MBA 4534/08
INTRODUCTION
A well defined grievance procedure is an important element of
a sound industrial relations machinery. Prompt and effective
disposal of workers grievance is the key to industrial peace. The
grievance procedure set up by agreement with a union provides
a medium for the workers to transmit his grievance to
management in an orderly manner and get the answers.
MEANING OF GRIEVANCE
According to Michael.J.Jucius- “any discontent or
dissatisfaction, whether expressed or not and 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.”

Keith Davis has defined grievance as “ any real or imagined

feeling of personal injustice which an employee has concerning
his employment relationship.”
CAUSES OF GRIEVANCES:
Grievances resulting from mgmt policies:
Ø Wage rates or scale of pay.
Ø Overtime.
Ø Leave.
Ø Transfers.
Ø Seniority, promotions and discharges.
Ø Lack of career planning and employee development plan.
Ø Lack of role clarity.
Ø Hostility towards a labour union.
Grievances resulting from working conditions:
Ø Non availability of proper tools, machines and equipments.
Ø Tight production standards.
Ø Bad physical conditions of workplace.
Ø Poor relationship with the supervisor.
Ø Negative approach to discipline.

Grievances resulting from the personal factors:

Ø Narrow attitude.
Ø Over ambition.
Ø Egoistic personality.
Effects of grievances:
On production:
Ø Low quality of production.
Ø Increase in the wastage of material, spoilage and leakage.
Ø Increase in the cost of production per unit.

On employees:
Ø Increase in the rate of absenteeism and turnover.
Ø Reduce the level of commitment and punctuality.
Ø Reduces the level of employee morale.

On managers:
Ø Strains the superior subordinate relations.
.
Need of grievance procedure:
 It helps to redress the grievances arising among employees.
 All complaints cannot be settled by first time supervisors.
 Checks the arbitrary action of the management.
 Serves as an outlet for employee’s discontent and frustration.
 Trade union and employees can raise their voice against
management.
Objective of grievance procedure:
 To enable the employees to air his or her grievance.
 To clarify the nature of grievance.
 To investigate the reasons for dissatisfaction.
 To obtain 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 the next stage of the procedure, in the event of an
unsuccessful resolution.
GRIEVANCE PROCEDURE:
 OPEN DOOR POLICY:
Ø Employees are free to meet the top executives.
Ø Works well only in small organizations.
Ø Suitable for executives but not for operative level employees.

 STEP LADDER POLICY:

Ø In this the aggrieved employee has to proceed step by step in
getting his grievance heard and redressed.
Key features of good grievance
procedure:
 A grievance should be dealt with in the first instance at the
lowest level.
 The employee should be made aware of what line of appeal is.
 Promptness.
 Should be set up with the participation of the employees.
 Fairness.
 Simplicity.
 Training.
 Follow up.
 Time limit.
 Limited number of steps.
Grievance procedure in INDIA
 Industrial Employment Act, 1946.
 Section 49 of The Factories Act.
 16th session of Indian Labour Conference (1958) approved the
principles of industrial discipline evolved by the committee. A
Model Grievance Procedure which is a part of Code Of
Discipline was drawn up.
Steps of model grievance procedure
 First step: submitted to supervisor or foreman. Must reply
within 48 hours.
 Second step: approach head of the department who has to give
decision within three days.
 Third step: approach the Grievance Committee which must
make recommendations to the manager within seven days. The
final decision of the mgmt must be communicated to the worker
within three days of the receipt of the report.
 An appeal for revision of final decision can be made which
must be answered within seven days.
 If unsettled referred to voluntary arbitration.
Benefits of grievance procedure:

 Encourages employees to raise concerns without fear.

 Provides a fair and speedy means of dealing with complaints.
 Prevents minor disagreements turning into serious disputes.
 Saves employer’s time and money.
 Build an organizational climate based on openness and trust.
Limitations

 Employee has problem with the manager itself.

 Personal element involved.
 Hesitation of employees.
Conclusion
A good grievance procedure saves time, money and the
relationship between the parties. Many discontent or
dissatisfaction among employees can be resolved through the
grievance procedure. This not only redresses grievances but
also increases the employees’ satisfaction , morale and trust in
the organization.