ppt on grievance handling

1. GRIEVANCE HANDLING

2. GRIEVANCE HANDLING
• Employee grievances are CONCERNS,
COMPLAINTS, or DISSATISFACTIONS about
one’s employment, working conditions, or treatment
at work.
• A grievance is any dissatisfaction or feeling of
injustice having connection with one’s employment
situation which is brought to the attention of
management.

3. • An employee may file a grievance relating to salary, work environment,
workload, performance evaluation, disciplinary action, harassment at
work, or discrimination in any other way that affects their employment
According to Michael Jucious,
• ‘Grievance is any discontent or dissatisfaction whether
expressed or not, whether valid or not, arising out of
anything connected with the company which an employee
thinks, believes or even feels to be unfair, unjust or
inequitable’.

4. According to Dale Yoder “A grievance is a written complaint filed by
an employee and claiming unfair treatment.”
Keith Davis defines it as “any real or imagined feeling of personal
injustice which an employee has concerning his employment
relationship.”

6. FEATURES :
1. The dissatisfaction must arise out of employment and not due to personal or
family problems.
2. The discontent can arise out of real or imaginary reasons. When employees
feel that injustice has been done to them, they have a grievance. The reason for
such a feeling may be valid or invalid, legitimate or irrational, justifiable or
ridiculous.
3. The discontent may be voiced or unvoiced, but it must find expression in
some form. However, discontent per se is not a grievance. Initially, the employee
may complain orally or in writing. If this is not looked into promptly, the
employee feels a sense of lack of justice. Now, the discontent grows and takes
the shape of a grievance.
4. A grievance is traceable to be perceived as non-fulfillment of one’s expec-
tations from the organization.

7. Causes/ Sources of Grievances
• When employees complain, grieve, or disagree with their working
conditions, treatments, or opportunities within an organization, they
are referred to as grievances.
• It is possible for grievances to arise from a variety of sources.
• It may be from both employee and management perspectives.
• ie. The sources of grievances can be grouped in to
A) Employee Point of View
B) Management Point of View:

9. i. Concerning Wages:
Employees may be dissatisfied when they feel that their wages are not being paid fairly or
equitably according to their job duties, experience, and industry standards.
ii. Concerning Supervision:
Employees need clear job instructions, regular feedback, and recognition for good performance
from supervisors in order to be successful in their jobs. Supervisors play a vital role in
managing and guiding them in their job responsibilities. In the absence of proper supervision
they may become demotivated and less productive
iii. Concerning Individual Advancement:
A company’s employees want to feel that they are given opportunities for career advancement
and career development. It is possible for them to become demotivated and feel unappreciated
if they perceive that these opportunities are not available or they are being denied unfairly
iv. General Working Conditions:
In order to fulfill their job responsibilities effectively, employees must have a healthy and safe
work environment. Generally, employees may experience grievances based on general working
conditions if they feel that their workplace is too crowded, unsafe, or unhealthy.

10. v. Collective Bargaining:
In collective bargaining, trade unions act as the collective voice of employees and
negotiate their interests with management. Employees can file grievances related to
collective bargaining if they believe their union isn’t effectively negotiating on their behalf
with management, or if they don’t see their concerns addressed.
vi. Management Practices:
A management practice may also be the source of employee grievances. For example,
employees may feel unfairly treated if management practices are perceived as arbitrary or
inconsistent. Grievance arises if management practices are not transparent.
vii. Union Practices:
When employees feel their union is not effectively representing their interests or is
favoritizing them, they may file a grievance regarding union practices. Employees may feel
kept in the dark about important decisions affecting their work if union practices are not
transparent.

12. i. Indiscipline:
It is common for employees to complain about their lack of discipline. Employees who do not follow established
procedures and rules may cause disruptions or conflict in the workplace. Employees who act unethically or
illegally may also put the organization at risk.
ii. Go-slow tactics:
A go-slow tactic refers to employees slowing down their work as a way to protest management policies or
practices. This tactic can cause disruptions in the workplace and diminish employee morale and productivity.
iii. Failure of trade unions:
When trade unions do not effectively represent members’ interests or engage in unethical or illegal behavior,
employees may feel as though they are not being adequately represented by their unions.
iv. Lack of recognition and feedback:
Employees who feel that their efforts are not rewarded or appreciated by their managers are more likely to
disengage from their jobs and become dissatisfied with them. Manager may also lose motivation or feel unsure
about their performance if they do not provide regular feedback to their employees.

13. v. Poor working conditions:
Employee grievances can be attributed to poor working conditions, such as unsafe or
unhealthy working environments. Employees may become frustrated or disengaged if they are
not provided with the tools, equipment, or resources they need to do their jobs effectively.
vi. Lack of career growth opportunities:
The lack of career growth opportunities may cause employees to become frustrated or
dissatisfied with their work if they feel that they have limited opportunities to advance their
careers. Employees may also become bored or disengaged if they do not have the opportunity
to learn new skills or take on new challenges.
vii. Unfair treatment or discrimination:
An employee who feels that he or she is being treated unfairly or discriminated against on the
basis of race, gender, age, or other factors may become upset or angry and file a grievance.

14. NEED / OBJECTIVES of GRIEVANCE PROCEDURE:
(i) Identification and analysis of grievances- It encourages employees to raise
concerns without fear of reprisal.
(ii) Help in formulating and implementing the policies and programmes.
(iii)To have problem solving, dispute-settling mechanism. It provides a fair
and speedy means of dealing with complaints
(iv) Strengthen good industrial relationship- It saves employer’s time
and money as solutions are found for workplace problems.
(v) To detects the limitations in working conditions and helps to take
corrective measures.
(vi) Build good morale, maintains code of discipline.
(vii) Brings uniformity in handling grievances.
(viii) To develops faith of employees.
(ix) Reduces personality conflicts.
(x) Act as a pressure valve for employee problem
(xi) Provides judicial protection to the employees.
(xii) It prevents minor disagreements developing into more serious
disputes.

15. IMPORTANCE/ ADVANTGES of Grievance Handling
1. Provides Useful Data
Grievances provide useful data on the basis of which the
management can diagnose the problem and can initiate
corrective action.
2. Expression of Dissatisfaction
There are several ways in which employees express their
dissatisfaction

16. 3. Index of Organization Health
Dissatisfactions felt by employees, if they were all made known to
management, might be the most significant index of organizational
health.
4. Improve Mutual Understanding
A complaint and grievance procedure may provide an opportunity for
mutual understanding and solution of genuine complaints, or it may
worsen existing relationships.
5. Affects Morale
A suppressed grievance may be more damaging to morale and
productivity than one which has been aired through an orderly
procedure.

17. 6. Vehicle for Administering the Contract
It is the vehicle for administering the contract on day by day basis.
The grievance process allows both parties to interpret and give
meaning to various clauses and transform the contract into a living
organism.
7. Other Benefits
1. It brings grievances into the open so that management can learn about them
and try corrective action.
2. It helps in preventing grievances from assuming big proportions. The
management cates and solves a grievance before it becomes a dispute.
3. It helps in establishing and maintaining a work culture or way of life.
4. It acts as a check upon arbitrary and deviating management action.
5. It serves as an outlet for employee groups, discounts, and frustrations. It acts
as a pressure valve on a steam boiler.

18. Methods of Understanding employee grievances
 Exit interview Interviewing employees who have decided to quit the company could reveal a lot about
what is not visible to the naked eye. These are very useful as the company can come to know what problems
are been faced by the employees.
 Opinion surveys A survey could be undertaken to find out how employees feel about the company
about the work, their colleagues.
 Gripe boxes Gripe boxes may be kept at prominent locations in the factory for. lodging anonymous
complaints pertaining to any aspect relating to work. Since the person lodging the complaint need not reveal his
identity he can reveal his feelings of injustice or discontent fairly and without any fear of victimization.
 Open door policy This is a kind of walk in interview or meeting with the manager when the
employees can express his feelings about any work related grievance. The manager can cross check the details
of the complaint through various means at his disposal.
 Observation In this grievance identification technique grievances are not heard from the aggrieved
employee directly, rather the manager or the immediate supervisor constantly tracks the behaviour of the
employees working under him.

19. The steps in dealing with grievances:
1. Acknowledge dissatisfaction:
Managerial/supervisory attitude to grievances is important. They should focus attention on grievances, and not turn
away from them.. Arrogant attitude on the part of supervisors and managers aggravates the problem.
2. Define the problem:
Instead of trying to deal with a vague feeling of discontent, the problem should be defined properly. Sometime the
wrong complaint is given. By effective listening, one can make sure that a true complaint is voiced.
3. Get the facts:
Facts should be separated from fiction. Although grievances result in hurt feelings, the effort should be to get the facts
behind the feelings. There is need for a proper record of each grievance.
4. Analyse and decide:
On the basis of collected data appropriate solution is to be sought. Decisions on each grievance will have a precedent
effect. While no time should be lost in dealing with them, it is no excuse to be slipshod about it. Grievance
settlements provide opportunities for managements to correct themselves, and thereby come closer to the
employees. i
5. Follow up:
Decisions taken must be followed up earnestly. They should be promptly communicated to the concerned employee. If
a decision is favourable to the employee, their immediate boss should have the privilege of communicating the
same.

21. The stages of grievance handling
1. Initial level at which grievance occurs:
The greatest opportunity to redress a grievance is to resolve it at the initial level at which it
occurs. A worker’s grievance should be resolved by their immediate boss, the first-line
supervisor. The first stage of the procedure usually involves three persons—the aggrieved
employee, his immediate boss and the union representative.
2. Intermediate stage:
If the dispute is not redressed at the initial state at supervisor’s level, it is usually referred to
the head of the concerned department. It is important that the management assumes
prime responsibility for the settlement of a grievance. At the intermediate level, grievance
can be settled with or without union involvement.

22. 3. Organization level:
If a grievance is not settled at the intermediate level also, it can be referred to the top
management. Usually, a person of a level not less than the general manager designated
for the purpose directly handles the issue. At this level, it is very difficult to reconcile the
conflicting interests.
4. Third-party mediation:
If the grievance has not been settled bilaterally within the organization, it goes to a third party
for mediation. Arbitration or adjudication or the matter may even be referred to a labour
court. At this stage, the parties concerned lose control over the way the grievance is
settled.

23. STATUTORY PROVISIONS CONCERNING THE GRIEVANCE
REDDRESAL PROCEDURE IN INDIA
There are three important legal provisions that specify the rules relating to the grievance
Reddresal procedure in Indian industrial organizations.
The Industrial employment (standing order) Act, 1946
Clause 15 of the model standing orders in schedule 1 of the industrial employment act makes it
mandatory for every establishment employing 100 or more workers to have appropriate
officers to deal with the complaints of the employees.
The industrial disputes act, 1947
There shall be a grievance settlement authority in every industrial organization that employs 50 or
more workers. Whenever an industrial dispute arises in these organizations, the concerned
worker or his union may refer such a dispute to the grievance settlement authority for
settlement.
The Factories Act, 1948
Section 49 of the factories act makes it necessary the appointment of a welfare officer in every
factory that employs 500 or more workers. These officers are actually responsible for settling
the grievances of employees

24. The National Commission on labour has suggested a model grievance procedure which would
ensure a speedy settlement of grievance.
 The aggrieved employee shall convey his or her grievance orally to the officer designated by
the management to deal with grievance, the officer will have to reply to the complaints within
48 hours of its presentation to him or her.
 If the grievant is not satisfied with the answer or does not receive the answer within 48 hours he
shall then present the grievance to the departmental head nominated for this purpose .The
head must give his or her reply within three days of the presentation of the grievance.
 If the aggrieved employee is still not satisfied with the decision of the departmental head or
does not receive any reply within the stipulated period he can approach the grievance
committee for the settlement of his grievance. The grievance committee has to give its
recommendation in seven days and report it to management .The management must
communicate the decision to the grievant within three days.
 If the employee is still not satisfied with the decision made by the grievance committee or does
not receive the decision from it, he can make an appeal to the management for a revision of
the decision taken. The management can take a week for appeal to be considered and the
revised decision is to be informed to the grievant
 If the employee is still not satisfied with the decision of the management, the grievance may be
referred to voluntary arbitration within a week after the decision taken by the management
in stage4.
 The decision of the arbitrator is final and binding on both the parties ie the management and the
union.

26. The "Hot-Stove Rule

27.  Douglas McGregor has given 'Red Hot Stove Rule'.
 This rule states how to impose disciplinary action
without generating resentment among employees.
 The central idea of the principle is that rational and
effective employee discipline can be maintained by
punishing employees for breach of discipline in ways
similar to touching a hot stove

28. According to Hot Stove Rule –
“ Administering discipline is more like touching a
hot stove”
According to this rule corrective action should
be immediate, impartial and consistent and
with a warning like result of touching a hot stove.

29. The "Hot-Stove Rule
The "Hot-Stove Rule" of Douglas McGregor gives a good illustration
of how to impose disciplinary action without generating
resentment (neerasam). This rule draws an analogy between
touching a hot stove, and undergoing discipline. When you touch a
hot stove, your discipline is immediate, with warning, consistent,
and impersonal.

30. Hot stove rule draws parallels to feelings we get after touching a hot
stove.
When we see that the stove is red, we immediately know it is
burning hot, and if we reach it, we will get hurt.
we had a fair warning.
Let’s say we touch it anyway. The result is instant; we feel pain. we
get angry, but only for a second. Obviously, it is not the stove’s
fault – it’s not intentionally trying to hurt.
But we understand that what we did was not wise. If we repeat this
action, everything is going to happen in the same way as before,
with no exceptions.
The same goes for disciplinary action against an employee.

32.  Warning – all of the employees are informed about company
policies, so they can’t say they didn’t know they were doing
something forbidden.
 Immediate disciplinary action – consequences can never be
delayed; the reaction is swift.
 Impersonality – the punishment is directed towards the act, not
the employee themself. Also, it doesn’t matter who of the
employees broke the rule. Everyone gets the same treatment,
those who are in high positions, and those who are not are all
treated equally.
 Consistency – it is imperative to stay consistent. Disciplinary
actions can’t be skipped now and then; they must always be
implemented. This way, the employees will know what to expect if
they break the rules.

33. How to Apply Hot Stove Rule?
 Every company has its policies and regulations that define the appropriate worker’s behavior. To apply the
hot stove rule, an employer must first give a detailed explanation of the rules to all of the employees,
and at the same time, needs to make sure they understood and accepted them.
 Every time there is a change in the rules or something new is added, employees must be updated.
That should be done in a way that ensures everybody indeed saw the update, so nobody can complain
later and claim they didn’t know. Penalties should also be defined in the code of conduct.
 Managers and HR personnel are obligated to inform the employees about all regulations and
sanctions. It would be best if all members of the staff had a copy of the code of conduct.
 When an offence occurs, the company (HR or the supervisor) must react swiftly. Establish the facts
(make sure nobody gets falsely accused!), and sanction the employee accordingly. The manager should
act professional and impersonal, no matter what his relationship to the employee is usually like. Everyone
is treated the same.
 This kind of treatment should imply that the punishment is not directed to the person who did the
act, but to the act itself.
 Employees won’t be angry with their supervisors, and they will understand their mistakes.
Hopefully, after this experience, they would be reluctant to repeat the offence. In the long term, this leads
to more productivity in the workplace. The understanding between an employee and a manager will not be
compromised.
 How severe the penalty is will depend on how serious the offense was, but also on the frequency of
the said offense. After everything is said and done, the work continues as usual, and things get back to
the way they were. The manager treats an employee as they did before the offense and must never let this
brief episode affect their opinion of the employee.

34. Code of discipline
Backdrops
“while the observance of stricter discipline, both on the part of labour and
management, is a matter which cannot be imposed by legislation alone, it
has to be achieved by organizations of employers and workers by
evolving suitable sanctions on their own. . .”
………………………..2nd Five Year Plan

35.  In 1957 the 15th "session of Indian labour conference evolved a code of
discipline, which voluntarily bind the employer and workers to settle all disputes
and grievances by mutual negotiations, conciliation and voluntary arbitration.
 In march 1958 the code of discipline was accepted by all the major central
organizations of labour
 It has been laid down to maintain harmonious relations and promote industrial
peace.
 It applies to both public and private sector enterprises and aims to secure the
settlement of disputes and grievances by a mutually agreed procedure.
 It specifies various obligations for the management and the workers with the
objective of promoting cooperation between their representatives.
 requiring the employers and workers to settle disputes making use of the
existing machinery and abstaining from taking direct action

36. Objectives
1. Maintain peace and order in industry.
2. Facilitate a free growth of trade unions
3. Promote constructive criticism at all levels of management and
employment
4. Eliminate all forms of coercion, intimidation and violations of rules
and regulations governing industrial relations.
5. Avoid stoppage of work in industry.
6. Avoiding litigations /legal procedures

37. The Code of Discipline Ensures that:
1. There should be no strike or lock-out without prior notice.
2. No deliberate damage should be caused to a plant or property
3. Acts of violations, intimidation and coercion should not be resorted to.
4. Actions that disturb cordial relationships should be avoided
5. No unilateral action should be taken in connection with any industrial
matter.
6. The existing machinery for the settlement of disputes should be
utilized.
To ensure better discipline in industry, management and unions agree to
abstain from indulging in violation of rules and regulations.

38. Management and Union Agree that
 No unilateral action should be taken in connection with any industrial matter
 Existing machinery for settlement of disputes should be utilized
 There should be no strike or lock-out without notice
 Affirming their faith in democratic principles, they bind themselves to settle all future
differences, disputes and grievances by mutual negotiation, conciliation and voluntary
arbitration
 Neither party will have recourse to coercion, intimidation, victimization, go<slow, etc
 They will avoid litigation, sit-down and stay-in strikes, lock-outs
 They will establish upon a mutually agreed basis, a grievance procedure which will ensure a
speedy and full investigation leading to settlement
 They will abide by various stages in the grievance procedure and take no arbitrary action
which would by-pass this procedure
 They will educate the management personnel and workers regarding their obligations to each
other

39. Management Agrees to
 Not to increase work-loads unless agreed upon or settled otherwise
 Not to support or encourage any unfair labour practice
 To take prompt action for (a) settlement of grievances and (b) implementation of
settlements, awards, decision and orders
 To display in conspicuous places in the undertaking the provisions of this code
in the local language(s)
 To distinguish between actions Justifying immediate discharge and those where
discharge must be preceded by warning, reprimand, suspension or some other
form of disciplinary action and to arrange that all such disciplinary action should
be subject to an appeal through normal grievance procedure
 To take appropriate disciplinary action against its o4cers and members in cases
where enquiries reveal that they were responsible for precipitate action by
workers leading to indiscipline
 To recognize the union activities

40. Union Agrees to
 Not to engage in any form of physical duress
 Not to permit demonstrations which are not peaceful
 Members will not engage or cause other employees to engage in any union activity during
working hours
 To discourage unfair labour practices such as (a) negligence of duty, (b) careless
operation, (c) damage to property, (d) interference with or disturbance to normal work and
(e) insubordination..
 To take prompt action to implement awards, agreements, settlements and decisions
 To display in conspicuous places in the union offices, the provisions of this code in the
local languages
 To express disapproval and to take appropriate action against office-bearers and
members for indulging in action against the spirit of this code

41. According to the Code of Discipline, it is Mandatory:
(i) To lay down a regular grievance procedure in every organization.
(ii) Each grievance should be promptly redressed by legal means and through the normal
channels. There should be no direct, arbitrary or unilateral action on either party.
(iii) To avoid litigation, lock-outs and strikes (sit-down and stay in) intimidation, victimization or
delaying tactics should be avoided.
(iv) Unfair practices like negligence of duty, damage to property and physical stress should be
discouraged.
(v) Management should give workers the freedom to form trade unions.
(vi) Management should promptly implement awards, agreements, settlements and policy
decisions.
(vii) The trade unions should function in a democratic fashion and discourage violence,
casteism, communalism, provincialism, intimidation or personal deformation in inter-union
dealings.
A machinery for implementation and evaluation has been set up at the centre and state level to ensure
that the obligations outlined in laws, agreements and the code of Discipline are observed by both
management as well as labor.

42. Legal Sanctity of the Code
 It is only a gentleman's agreement between employers and employees to maintain a
standard of discipline in dealings with each other with the main object of securing better
discipline in industry and to facilitate peaceful settlement of disputes
 There is no legal binding on code of discipline
 However, the organizations of employers and workers are required to apply sanctions
against their members for violating the code
 These sanctions have been laid down by "standing labour committee in Indian labour
conference
 They are reformative in character and not punitive.

43. Suggestion Schemes
 A suggestion scheme is a formal system by which workers are
encouraged to offer ideas for improving the organization.
 The objective of introducing a suggestion scheme is to have a
means for channelling workers’ ideas on how to improve the work.
 The purpose of having suggestion schemes can be both economic
and motivational.
 Good ideas can improve the competitive position of the
organization through increasing efficiency of production and higher
quality products and services.

44. Benefits /Importance of Employee Suggestion Programs
 Improve Employee Morale
A well-designed employee suggestion program enables employees to improve their own work processes. This
improves employee morale.
 Increase Job Satisfaction
Participating in employee suggestion programs increases employee job satisfaction as employees feel they
are positively influencing their organization.
 Create Ownership & Engagement
By enabling employees to play an active role in the future direction of their organization, employee suggestion
programs create a sense of ownership and increase employee engagement.
 Build Team Spirit
Well-designed employee suggestion programs enable employees to collaborate together on fleshing out
suggestions as well as implementing them. This builds team spirit.
 Reduce Costs – Increase Profitability
Organizations such as Toyota have achieved substantial cost savings by asking employees to suggest ideas
to reduce costs. This leads to increased profitability for your organization.
 Increase Revenue
Organizations such as GE and P&G have introduced new product lines as a result of their employee
suggestion programs. This leads to increased revenue for your organization.
 Improve Customer Satisfaction
Organizations such as Starbucks leverage their employee suggestion program to identify ways to serve their
customers better, this leads to improved customer satisfaction.

45. Process of employee suggestion .
Step 1: Worker writes down an idea
Workers who have good ideas are required to put them in writing. suggestions can cover improvements on:
work methods, health and safety, general environment, layout or facilities , job structure or contents, product
and materials, machines, tools, fittings and their installation.
Step 2: Submitting the idea
Once the idea has been put in writing, it must be submitted for evaluation. In some organizations, there is no
need for an employee to contact or inform his supervisor at all when he has an idea for submission. The
written suggestions can be placed in a special box
Step 3: Evaluating the idea
Once the idea has been received and an acknowledgement or receipt issued, it should be passed to an
evaluation committee as soon as possible. The chairperson should be the officer-in-charge of the scheme,
who will normally be from either the Human Resource or Administration Departments.
Step 4: Inform the worker and reward good ideas
As soon as the evaluation committee have come to a decision, the employee submitting the idea should
be informed as to whether his suggestion is usable or not. When the idea is to be implemented, the worker
must be rewarded. The reward system is the key to successful suggestion schemes
Stage 5: Implement and Celebrate
It will be a company-wide achievement and celebrating its success will have a powerful impact on
engagement levels.

46. Implementation of Employee Suggestion Scheme in the
Organization
1. Determine if a formal employee suggestion program is actually needed.
2. If an informal program doesn’t seem like the right way to go or our
brainstorming sessions don’t seem to be working, then it is time to develop a
formal program.
3. Obtain leadership buy-in. Leadership buying in refers to the support which the
subordinates receive from mangers within the organizations.
4. Develop formal plan.
5. Have some type of formal guidelines for employees to fill out with their
suggestions.
6. Develop a rewards program.
7. Promote, promote, promote.
8. Review the suggestions regularly.
9. Follow through and create urgency.