z
Grievance
Handling
By : Dr Utkarsha Soni
z
Narmada Agro ‘food processing
industry
Junior HR
number of Employees:75
number of non-roll employees: 65
and the strength of contract labour: at present (non season) 130 during season
it may go upto 900
last week one of our employee working as a labour supervisor who entered in
to quarrel and subsequently beaten up a van driver, whom we hired for the
labour transportation.
though he(van driver) is a contract labour, he was beaten up while returning to
factory after dropping the labours but this happen 1 km away from our
premises.
the van driver is working for our organization more than one year and having
the support from our employes(drivers who comes under roll and non-roll as
well other employees too) at the same time the employee(labour supervisor)
plays a major roll in providing contract labour to the factory and also he is from
local.
in this case i need your advice and inputs.
z
Grievances
 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 treatment.”
z
Forms of Grievance
• Factual: A factual grievance arises when the legitimate needs of
employees remain unfulfilled, e.g., wage hike has been agreed but not
implemented citing various reasons.
• Imaginary: When an employee’s dissatisfaction is not because of any
valid reason but because of wrong perception, wrong attitude, or wrong
information he has. Such a situation may create an imaginary grievance.
• Disguised: An employee may have dissatisfaction for reasons that are
unknown to himself. If he/she is under pressure from family, friends,
relatives, neighbors, he/she may reach the work spot with a heavy heart.
z
Causes of Grievances
•Economic: Wage fixation, overtime, bonus,
wage revision, etc. Employees may feel that
they are paid less when compared to others.
•Work Environment: Poor physical conditions
of the workplace, tight production norms,
defective tools and equipment, poor quality of
materials, unfair rules, lack of recognition, etc.
•Supervision: Relates to the attitudes of the
supervisor towards the employee such as
perceived notions of bias, favoritism, nepotism,
caste affiliations, regional feelings, etc.
•Work group: Employee is unable to adjust with
his colleagues; suffers from feelings of neglect,
victimization and becomes an object of ridicule
and humiliation, etc.
•Miscellaneous: These include issues relating to
certain violations in respect of promotions,
safety methods, transfer, disciplinary rules,
fines, granting leave, medical facilities, etc.
z
Grievances lead to:
z
Grievances lead to:
• Low morale and commitment
• Loss of interest in work
• Low productivity
• Increase in wastages and costs
• Increase in absenteeism
• High employee turnover
• Indiscipline among employees
• Employee unrest
z
Methods of Understanding employee
grievances
 Exit interview Interviewing employees who have decided to quit
the company . 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
z
 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
 Observation In this grievance identification technique grievances are not
heard from the aggrieved employee directly, rather the manager or the
immediate supervisor
z
Grievance redressal machinery
 A grievance procedure is a formal process which is preliminary to an
arbitration,
 It enables the company and the trade union to investigate and discuss
the problem at issues without in any way interrupting the peaceful and
orderly conduct of business.
 When the grievance redressal machinery works effectively, it
satisfactorily resolves most of the disputes between labour and
management.
 The grievance procedure may be of an open door type or of step
ladder type.

z
Grievance redressal procedure
z
 1 The aggrieved employee verbally explains his grievance to his immediate
supervisor or in a conference or a discussion specifically arranged for the
purpose.
 2 The second step begins when the grievance is not settled by the supervisor. In
this case it is sent to a Personnel manager with a note in which are mentioned the
time, place and nature of the action to which the employee objects. The manager is
generally a superintendent or an industrial relations officer.
 3 Now the grievance is to be submitted to the Top level manager. Later to
grievance committee since the decisions of the supervisor and of the higher level
manager have not solved the problem. The committee which is composed of some
fellow employees, management representatives, considers the record and may
suggest some possible solution.
 4 If the decision or suggestion of the grievance committee is not accepted by the
grievant he may approach the management or the corporate executive.
 5 The final step is taken when the grievance is referred to an arbitrator who is
acceptable to the employee as well as the management.
z
Model of Grievance Procedure
z
Benefits of a grievance redressal procedure
 Enables the management to know the pulse of its employees by learning
about their feelings and opinions and about the policies and practices of
the organization.
 Provides a channel to the aggrieved employees to express their
grievances about various aspects of their jobs .
 Provides clues about the behavior and attitude of the managers and
supervisors towards their subordinates.
 Gives an assurance to the employees about the existence of a
mechanism for the prompt redressal of their grievance.
 Boosts up the morale of the employees by ensuring that the grievance will
be handled in a fair and transparent manner.
z
Statutory provisions concerning the
Grievance Redressal Procedure in India
 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
 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.
z
Essentials of a Good Grievance
Procedure
 Legally Sustainable: The procedure cannot violate any of the
rights of the employees guaranteed by the law
 Mutually Acceptable: The procedure must ensure equity, justice
and openness in its operation to inculcate confidence in the
minds of all the parties
 Easily understandable: The grievance procedure must be
reasonably simple and easily understandable.
 Highly flexible The grievance procedure should be flexible
enough to respond to the reported grievance.
z
Study Of Grievance Procedure In Bharat
Gears Limited
 BGL is India’s largest gear manufacturer.
 BGL also manufactures a wide range of hypoid/spiral gears, differential gears and
shafts, complete automotive transmissions, gearbox sub-assemblies and
differential assemblies.
 The Annual Sales Turnover of the organization for the year ending 31st March,
2009 was Rs.2670.61 millions and Profit for the same period was Rs.230 millions.
 The Organization has 1,259 employees spread over two plants and the corporate
office.
z
GRIEVANCE PROCEDURE
 OPEN DOOR POLICY
 Under this policy, the aggrieved employee is free to meet the top executives of the organization and get his
grievances redressed. Such a policy works well only in small organizations. However, in bigger organizations,
top management executives are usually busy with other concerned matters of the company. Moreover, it is
believed that open door policy is suitable for executives, operational employees may feel shy to go to top
management.
 STEP LADDER POLICY
 Under this policy, the aggrieved employee has to follow a step by step procedure for getting his grievance
redressed. In this procedure, whenever an employee is confronted with a grievance, he presents his problem
to his immediate supervisor. If the employee is not satisfied with superior’s decision, then he discusses his
grievance with the departmental head. The departmental head discusses the problem with joint grievance
committees to find a solution. However, if the committee also fails to redress the grievance, then it may be
referred to chief executive. If the chief executive also fails to redress the grievance, then such a grievance is
referred to voluntary arbitration where the award of arbitrator is binding on both the parties.
z
 An aggrieved employee shall first present his grievance verbally in person to the officer
designated by the management for this purpose, in BGL this appointed person is the line
manager. An answer shall be given within 48 hours of the presentation of the complaint.
 If the worker is not satisfied with the decision of this officer, or fails to receive an answer within
the stipulated period, he shall present his grievance to the head of the department designated by
the management for the purpose of handling grievances. The departmental head shall give his
answer within 2 days
 If the decision of the department head is unsatisfactory, the aggrieved worker may request that
his grievance be forwarded to the grievance committee, which shall make its recommendations
to the manager within 5 days of the worker’s request.
 In the event of a difference of opinion among the members of grievance committee, the matter
shall be placed before the manager for the final decision. The final decision of the management
shall be communicated within 2 days
 In case the decision of the management be not forthcoming within the stipulated period, or it is
found unsatisfactory, the worker shall have the right to appeal to the management for a revision.
The management shall communicate its decision within a week.
 If no agreement is still possible, the union and the management may refer the grievance to
voluntary arbitration* within a week of the receipt by the worker of the management’s ·decision.

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Grievance Handling.pptx

  • 2. z Narmada Agro ‘food processing industry Junior HR number of Employees:75 number of non-roll employees: 65 and the strength of contract labour: at present (non season) 130 during season it may go upto 900 last week one of our employee working as a labour supervisor who entered in to quarrel and subsequently beaten up a van driver, whom we hired for the labour transportation. though he(van driver) is a contract labour, he was beaten up while returning to factory after dropping the labours but this happen 1 km away from our premises. the van driver is working for our organization more than one year and having the support from our employes(drivers who comes under roll and non-roll as well other employees too) at the same time the employee(labour supervisor) plays a major roll in providing contract labour to the factory and also he is from local. in this case i need your advice and inputs.
  • 3. z Grievances  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 treatment.”
  • 4. z Forms of Grievance • Factual: A factual grievance arises when the legitimate needs of employees remain unfulfilled, e.g., wage hike has been agreed but not implemented citing various reasons. • Imaginary: When an employee’s dissatisfaction is not because of any valid reason but because of wrong perception, wrong attitude, or wrong information he has. Such a situation may create an imaginary grievance. • Disguised: An employee may have dissatisfaction for reasons that are unknown to himself. If he/she is under pressure from family, friends, relatives, neighbors, he/she may reach the work spot with a heavy heart.
  • 5. z Causes of Grievances •Economic: Wage fixation, overtime, bonus, wage revision, etc. Employees may feel that they are paid less when compared to others. •Work Environment: Poor physical conditions of the workplace, tight production norms, defective tools and equipment, poor quality of materials, unfair rules, lack of recognition, etc. •Supervision: Relates to the attitudes of the supervisor towards the employee such as perceived notions of bias, favoritism, nepotism, caste affiliations, regional feelings, etc. •Work group: Employee is unable to adjust with his colleagues; suffers from feelings of neglect, victimization and becomes an object of ridicule and humiliation, etc. •Miscellaneous: These include issues relating to certain violations in respect of promotions, safety methods, transfer, disciplinary rules, fines, granting leave, medical facilities, etc.
  • 7. z Grievances lead to: • Low morale and commitment • Loss of interest in work • Low productivity • Increase in wastages and costs • Increase in absenteeism • High employee turnover • Indiscipline among employees • Employee unrest
  • 8. z Methods of Understanding employee grievances  Exit interview Interviewing employees who have decided to quit the company . 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
  • 9. z  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  Observation In this grievance identification technique grievances are not heard from the aggrieved employee directly, rather the manager or the immediate supervisor
  • 10. z Grievance redressal machinery  A grievance procedure is a formal process which is preliminary to an arbitration,  It enables the company and the trade union to investigate and discuss the problem at issues without in any way interrupting the peaceful and orderly conduct of business.  When the grievance redressal machinery works effectively, it satisfactorily resolves most of the disputes between labour and management.  The grievance procedure may be of an open door type or of step ladder type. 
  • 12. z  1 The aggrieved employee verbally explains his grievance to his immediate supervisor or in a conference or a discussion specifically arranged for the purpose.  2 The second step begins when the grievance is not settled by the supervisor. In this case it is sent to a Personnel manager with a note in which are mentioned the time, place and nature of the action to which the employee objects. The manager is generally a superintendent or an industrial relations officer.  3 Now the grievance is to be submitted to the Top level manager. Later to grievance committee since the decisions of the supervisor and of the higher level manager have not solved the problem. The committee which is composed of some fellow employees, management representatives, considers the record and may suggest some possible solution.  4 If the decision or suggestion of the grievance committee is not accepted by the grievant he may approach the management or the corporate executive.  5 The final step is taken when the grievance is referred to an arbitrator who is acceptable to the employee as well as the management.
  • 13. z Model of Grievance Procedure
  • 14. z Benefits of a grievance redressal procedure  Enables the management to know the pulse of its employees by learning about their feelings and opinions and about the policies and practices of the organization.  Provides a channel to the aggrieved employees to express their grievances about various aspects of their jobs .  Provides clues about the behavior and attitude of the managers and supervisors towards their subordinates.  Gives an assurance to the employees about the existence of a mechanism for the prompt redressal of their grievance.  Boosts up the morale of the employees by ensuring that the grievance will be handled in a fair and transparent manner.
  • 15. z Statutory provisions concerning the Grievance Redressal Procedure in India  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  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.
  • 16. z Essentials of a Good Grievance Procedure  Legally Sustainable: The procedure cannot violate any of the rights of the employees guaranteed by the law  Mutually Acceptable: The procedure must ensure equity, justice and openness in its operation to inculcate confidence in the minds of all the parties  Easily understandable: The grievance procedure must be reasonably simple and easily understandable.  Highly flexible The grievance procedure should be flexible enough to respond to the reported grievance.
  • 17. z Study Of Grievance Procedure In Bharat Gears Limited  BGL is India’s largest gear manufacturer.  BGL also manufactures a wide range of hypoid/spiral gears, differential gears and shafts, complete automotive transmissions, gearbox sub-assemblies and differential assemblies.  The Annual Sales Turnover of the organization for the year ending 31st March, 2009 was Rs.2670.61 millions and Profit for the same period was Rs.230 millions.  The Organization has 1,259 employees spread over two plants and the corporate office.
  • 18. z GRIEVANCE PROCEDURE  OPEN DOOR POLICY  Under this policy, the aggrieved employee is free to meet the top executives of the organization and get his grievances redressed. Such a policy works well only in small organizations. However, in bigger organizations, top management executives are usually busy with other concerned matters of the company. Moreover, it is believed that open door policy is suitable for executives, operational employees may feel shy to go to top management.  STEP LADDER POLICY  Under this policy, the aggrieved employee has to follow a step by step procedure for getting his grievance redressed. In this procedure, whenever an employee is confronted with a grievance, he presents his problem to his immediate supervisor. If the employee is not satisfied with superior’s decision, then he discusses his grievance with the departmental head. The departmental head discusses the problem with joint grievance committees to find a solution. However, if the committee also fails to redress the grievance, then it may be referred to chief executive. If the chief executive also fails to redress the grievance, then such a grievance is referred to voluntary arbitration where the award of arbitrator is binding on both the parties.
  • 19. z  An aggrieved employee shall first present his grievance verbally in person to the officer designated by the management for this purpose, in BGL this appointed person is the line manager. An answer shall be given within 48 hours of the presentation of the complaint.  If the worker is not satisfied with the decision of this officer, or fails to receive an answer within the stipulated period, he shall present his grievance to the head of the department designated by the management for the purpose of handling grievances. The departmental head shall give his answer within 2 days  If the decision of the department head is unsatisfactory, the aggrieved worker may request that his grievance be forwarded to the grievance committee, which shall make its recommendations to the manager within 5 days of the worker’s request.  In the event of a difference of opinion among the members of grievance committee, the matter shall be placed before the manager for the final decision. The final decision of the management shall be communicated within 2 days  In case the decision of the management be not forthcoming within the stipulated period, or it is found unsatisfactory, the worker shall have the right to appeal to the management for a revision. The management shall communicate its decision within a week.  If no agreement is still possible, the union and the management may refer the grievance to voluntary arbitration* within a week of the receipt by the worker of the management’s ·decision.