Grievance Handling and Discipline

Rai Bahadur Diwai~ Badri Das V. IT, 1962 ILLJ 366(SC), per Gajendragadkar, J. Pu11.jab National Bank V. I.T., 1957 ILLJ 455 (SC), per S.K. Das, J. Rao, E.M. (2004). O.P. Malhotrcr's The Law oflndustrial Disputes, Gth ed. Lexis Nexis Butterwo~fl~s, p. 19. Sinlia G.P. and Sinha, P.R.N. (1 986). Industrial Relatiorrs and Labour Legislution,, 2nd ed. Oxford & IBH, New Delhi.

UNIT 17 DISCIPLINE IN INDUSTRY

Objectives
Afer going througll this unit, you should be able to understand: the nature, scope and prevention of i~idiscipli~ie in an industrial setting; the acts of miscond~~ct relatcd to duty, discipline and morale; and tlie process of disciplinary action against an e~nployee on an act of misconduct.

17.1 17.2 17.3 17.4 17.5

Introduction Indiscipline: Nature, Scope and Prevention The "Red-hot-stove" Rule Indiscipline: Nature and Causes Individual vs Collective Indiscipline

17.6 Misconduct 17.7 17.8 17.9 Strict Eufo~~ceriient of Discipline Acts of Misconduct: Classificatiori Disciplinary Action

17.10 Charge Slieet 17.1 1 Domestic Enquiry 17.12 Penal Disposal ofthe Case 17.13 I-Iiel-arcliyof Punishments 17.14 Summary 17.1 5 Self-Assess~iient Questions 17.1 6 Furtller Readings

The expression 'disciplinary action', in its widest amplitude, means "any conditioning of f~lture behaviour by tlie application of eitlier rewards or punishments. This approacli colnprises botli tlie positive and negative actions geared to ensure that, while with the norms of workon duty, the eliiployees conduct themselves in accordi~ig related behaviour. Positive ~notivational initiatives include praise, participation and incentives, whereas negative tecliniques ilivolve punishments such as warning, censure, suspension, stoppage of increment, reversion and dismissal. Botli the types of actions aim at:co~~clitio~~iilg the elnployee behaviour. However, the expression 'disciplinary action' lias over time acquired a special connotation to meall tlie application of penalties that lead to an inhibition of u~ldesirable behaviour. In this sense, it is ge~ierally uliderstood to be exclusively concerned with negative motivation. Tliougli a ~iiajority of employees do conforln to orders, procedures, rules and regulations, a good nmiiber of them still require the stilnulus generated by punishments. One of the most difficult tasks of supel-visory personnel is tlie effective administration of negative disciplinary action.

Grievs~iceI-landling
and Discipline

Aims and Objectives

The main aims and ob-jectivesof discipline are:

1)

2)

To obtain a willing acceptance ofthe rules, regulations and procedures of an organisation so that organisational objectives can be attained. To develop among the e~nployees a spirit oftolerance and a desire to make adjustments. To give and seek direction and responsibility. To create an atmosphere of respect for human personality and lluman relations. To incrcase the working efficiency and morale of the employees. To impart an elernent of certainty despite several differences in informal behaviour patterns and other related changes in an organisation.

3)

4)

5) 6)

17.2 INDISCIPLINE: NATURE, SCOPE AND PREVENTION

As the saying goes "prevention is better than cure", it is desirable to focus inore on resort to large-scale preventiveaspects of indiscipline than waiting till the e~nployees violation of the norms of behaviour and then initiating disciplinary action against them. It should be clearly understood that preventive and curative aspects do not operate in watertight compai-tments, but co~lstitute tlle obverse and reverse of the same coin. They are closely inte~hvined witli, and influence, each other. Preventive approaches to discipline should, in order to be effective, be supplemented by curative terms of menace. Even Inore measures, which should be laid down in unn~istakable important is thestrict enforcenzent of discipline.

17.3

THE "RED-HOT-STOVE" RULE

The idcal mechanism for enforcement of discip line should remind ofthe red-hot-stove. A red-hot-stove has four important characteristics: (i) advance warning; (ii) immediate effect; (iii) consistency; and (iv) impersonal approach. i) ii)
Advance warning: It tell us in advance "don 't tozich nze, you will sz~ffer". Immediate effect: He, who disregards the warning and ventures to lay his fingers on it, will get the result insta~ltaneously.

iii) Consistency: Every time we touch it, we get the same result without any let-up.

iv) Impersonal approach: It doesn't play favourites; its functioning transcends the
right pairs of love and hatred, friend and foe, etc.; it guarantees tlle fi~ndamental to equality, more dispassionately than any court of law does. Every one who touches it shall get Ilirnself burnt, regardless of his status and position. These four cllaracteristicsshould, of necessity, inform any disciplinary administration. Laxity on the part of management can whittle down the entire process to the ultimate detriment of the organisation. Even the preventive measures initiated with all the good intentions will lose their significance in such a dispensation, because tlle employees about the ineffectiveness of lnanage~nent in enforcing discipline in the are co~lfideilt event of violation.

17.4

INDISCIPLINE: NATURE AND CAUSES

Simply defined, 'discipline' means "adherence to the norms o f behnviour ". It is a state of mind consisting ofboth atlitudinal and bellavioural aspects. The environment
30

in whicl~ an individual was brought up, his childhood experiences, the influence ofthe primary group or groups of which he is a member, his personallfa~nily life, his successes and failures, his expectations and frustrations - all have avital impact on his attitude towards discipline. These coupled with work practices and organisational culture exercise a great deal of influence, one way or the other, 011 his behaviour in the worlcplace. I t is extremely dirficult, if not totally impossible, to capture the entire range and variety of factors that cause indiscipline and is even more difficult to draw generalised inferences of i~niversal validity. The co~nplexity of tlie problem is largely interaction of individual variables with those ofthe due to the i~npredictable environment, Even though it is possible to assert in a general way that certain actions 01. stitni~li fsom management may cause an adverse reaction among workmen, stil I, in avast majority of cases, acts of indisicipline are situation-specific and defy prediction in precise terms.

Discipline in Industry

17.5

INDIVIDUAL VS. COLLECTIVE INDISCIPLINE

lndividi~al indiscipline is ~nanifested in deviant behaviour oremployees acting alone as, for instance, habitual absence, negligence, theft, insubordination, disorderly behaviour, li.aucl, tarcliness and the lilce. In a very general sense, acts of individual indiscipline are relatively simple and are capable of being explained in terms of causation. Collective indiscipline is more complex both in form ant1 substance and is often elusive of rational explanation, posing a serious threat to indilstrial peace, harmony ancl productivity. Cancel-tecl go-slow, illegal strike, militancy and inter-group altercations culminating in violence can be cited as illustrations of collective indiscipline.

1.6

MISCONDUCT

The expression 'niisconduct' has not been defined either in the Industrial Disputes Act, 1947 or in the Industrial Employment (Standing Orden) Act, 1946. The dictionary meaning of the word 'n~iscondiict'is: "itnpt'oper behaviour; intentional wrong doing or deliberate violation of a rule of standard of behaviour". In so far as the industrial employment is concerned, a workman has certain express or implied obligations toward his employer. Any conduct on the part of an employee inconsistent with the faithfit1 discharge of his duties towards his employe^. would be treated as an act of misconcluct. Any breach of the express or implied duties of an e~nployee towards his employer, therefore, unless it be oftrifling nature, would constitute misconduct. In industrial law, the word 'misconcluct' has acquired a specific connotation. It cannot mean inefficiency or slaclcness. It is something far more positive and certainly cleliberate. The charge of 'misconduct', therefore, is the charge ofsome positive act or of conduct, wliich would be quite incompatible with the express andlor impliecl terms of relationship of the employee to the employer. What is 'misconduct' wi I I naturally depend upon the circumstances of each case.' The Labour Appellate Tribunal laid clown the following criteria for determining whether the act woiild be an act of ~nisconduct: (i) it is inconsistent with the fulfil1111entof the express or implied conditions of service, (ii) is directly Iinlced with the general relationship of employer and employee, (iii) has adirecl connection with the contentment or comfort ofthe men at worlc, and (iv) has a material bearing on the smooth and efficient working o f t l ~ concern. e If tlie answer to anyone ofthe above criteria is in the affirmative, the act i l l question would amoimt to an act of misconduct. In any case, the act of misconduct n~ust have some relation with the elnployee's duties to tlie empl~yer.~

Gricvancc Fiantlling slid Discipline

1) Define Acts of Misconduct in Precise Terms

As a first step, the acts and omissions, which constitute misconduct should be defined in as precise terms as possible and incorporated in the standing orders or the service rr~les.Tlie enumerated 'acts of misdemeanour' are only illi~strative, and can by no lneans be exhaustive. Nevertl~eless, they should be as comprehensive as possible. The rules should also lay down detailed procedure for initiating disciplinary action, which sl~ould nor~nally i~lcliide the mode of charge-sheeting, tile time for submitting expla~~ation, suspension pending enquiry, do~nestic enquiry, representation of parties, procedure for examining witnesses/entering evidence and punishments.

2) Communicate
The rules ofdiscipline sl~ould be communicated to all the worlcn~en. It is desirable to si~pply a copy of the Standing Orders (both in English and the vernacular) to each workman at the time of his joining the organisation. T11e objective is to make the workers aware of the norms of behaviour as also the acts of misconduct. Communicatio~~ of the rules of discipline at the tinle of entry serves the important purpose of 'advance warning' of the "red-hot-stove" rule.

3) Strict enforcement of Discipline

The saying that "there is no bad ~ijorker-, but only a bad manager" is not far from truth. In a large ~uajority of instances, it is the managers, by their own o~nissions and coinn~issions, transform an otl~erwise good worker into a bad one. Lack of fairness and justice while dealilig with employees, dubious standards in administering rewards and punishments, leilience towards some and severity towards otl~ers in respect of similar acts of misconduct, and a host of other clumsy practices can foment iudividual indiscipline. If, for instance, in a given case of misconduct, the ~nanage~nent takes a lenierlt view of the matter, not because the delinqi~ent workinan deserves it on merits, but on extraneous considerations, it then becomes a yardstick and a lasting precedent warranting the same measure of leniency in all future cases in"oiving the same or similar misconduct. In addition, si1c11 dilution would reducetl~e overall managerial effectiveness in the long run. If, on the other hand, the management deliberately appIies differential standards in dealing with the same/siinilar misconduct, it can lead to a major turmoil of a collective nature.

I~idividual grievances s h o ~ ~be l d promptly attended to and redressed within a and time-bound procedure for hearing and reasonable time. A formal ~nachine~y redressal of grievances will help in arresting job-related deviant behaviour.

Continuing Education
It is essential that suitable mechanisms are designed and put in place for conti~luous education of workers. The education process should cover all aspects relating to ernploy~nent relatio~lsl~ip, statutory and non-statutory benefits, rights, duties and obligations of the parties toward each other, discipline, technology, production, productivity, safety, quality and the like.

17.8

ACTS OF MISCONDUCT: CLASSIFICATION

-

Misconduct in industrial employment can broadly be dealt with under the following categories, though this classification is by no means exclusive. A few acts of misconduct lnay fall under more than one category.

1) Misconduct relating to duty

a)
Negligence of cloty: An error can be indicative of negligence and the degree of culpabi Iity may irlclicate tlie grossness of negligence. Acts of gross negligence may entail serious damage or consequences to the establishment ofthe e~nployer. Ellgaging in worlc similar to that of the employer: In a suitable case, if an employee is found giiilty of such act of misconduct, it may warrant the penalty of dismissal. Absei~ce withor~t leave: Absence from the specific place of duty without the per~nissio~l of the supervisor would also constitute an act of misconduct relating to duty. Late attenclsnce: Habitual late attendance can be visited with the punish~nent of or ornission ofan act on four occasions dismissal. 'I-labitual' means co~n~nission in a periocl of twelve months. Strike: Resorting to a strilte in contravention of the provisions of the ID Act, 1947 is a misconduct. Go-slow: Deliberate delaying of production by workmen pretending to be engaged in the factory is one of the most pernicious practices that discontented or disgrunlled workmen so~neti~nes resort to. While delaying production and thereby reducing output, the workmen claim to havc remained employed and thus to be entitled to full wages. Apart from this, 'go-slow' is liltely to be much Inore harmh~l than total cessation of work by strilte. For, while during a strike much ol'machinel-y can be fully turned off, tluring 'go-slow' tlle ~l~acl~inery is kept going on at a retluced speed which is oilen extremely damaging to the machinery parts. It is a serious misconduct as it is an insidious method of undermining the stability of a concern. Ghel-ao: It is comparatively a new for111of demonstration. It is the physical b Iocka tle of a target, either by encirclement or forceable occupation. The 'target' may be a place or a person or persons, usually the managerial or supervisory stafforan industrial establishment.

Discipline in Industry

b)

c)

d)

e)
f)

g)

2) Misconduct relating to discipline

Broadly speaking, all acts which tend to clestroy discipline or disturb the peace ant1 good order in the establisl~ment would a~nount to 'acts subvel.sive ofdiscipline'. The following acts can be classil?ed as acts of ~niscondi~ct relatingto 'discipline'. Rowdy contl~~ct in the course of worlting hours; Misbehaviour committed even outside working hours but within the precincts of the concern and directed towards the enlployees of the said concern; C o n d ~ ~proved ct against an employee which would render hi111not wortlly of e~nployrnent; and more speci fically, Writing a letter to the director of the company containing offensive remarks against him; Beliaviour insulting and insubordination to such a degree as to be incompatible with the continuance ofthe relation of employel. and employee; Abusing a superior officer by using vulgar and filthy language; Preferring a false co~nplaint to police against a superior officer knowing it to be false with a view to bringing tlie management into humiliation; The act of wrongfully restraini~lg and confining the manager by workmen with a view to making him concede to their demands;

Grievance Hatidling and Discipline

Preventing a superior officer fro111 discharging his duties toward the management; Constructing a pucca structure in the labour quarters contrary to the directions and the subsequent refusal to dismantle the same in of the tna~lage~ne~lt disobedience to the order of the management;

Riotous or disorderly bellaviour; Damage to the property and/or reputation of the company.

3) Misconduct relating to morality

'Morality' means pal-ticular moral principles or rules of conduct - good and i~prighteous beliaviour as, for instance,justice, honesty, modesty, etc. - conduct conforming to custolns or accepted standards of a civilised society. Acts involving of moral turpitude are such acts which ilivolve grave infringement of moral senti~nents or are acts of base vileness and depravity in tlie private and social tlie com~nunity of a society in general, contrary to the accepted duties whicli a man owes to fel low~lzeii customary rille or riglit and duty between man and man.
o

Theft Dislloliesty and fraud Disloyalty Corruption Moral turpitude:

e
e

A particulal. act is said to involve moral turpitude, (i) if the act leading to a conviction shock the moral conscience of society in general, by acrinlinal court is such as coi~ld ii) if the motive which led to the act is a base one and iii) if on account of the act having been co~nin itted the perpetrator coi~ld be considered to be of a depraved clzaracter or a person who is to be loolted down upon by the society.
Activity A

Make a list of aims and objectives of discipline. Do you think that these aims and discipline in your organisatioli or ally organisation objectives are useful i n maintainil~g you are fa'amiliar with?

17.9

DISCIPLINARY ACTION

On receipt of a colnplaint alleging that an einployee llas committed an act of misconduct, whicll falls in any ofthe categories mentioned above and as provided for in the standing orders of the company, the officer designated as the disciplinary authority may, at his discretioil and subject to his having satisfied that the complaint is worth pursuing, initiate disciplinary action as provided in tlie standing orders ofthe company. Briefly, disciplinary action involves the following steps:

17.10

CHARGE SHEET
-

Discipline in Industry
- - -

Charge sheet is the document, which sets out the alleged acts of omissions and/or commissions on the part of the workman. In other words, it is a statement of allegations. The designated officer, who signs the charge sheet, merely comlnunicates the allegations to the workman. He does not attest to the colnlnission or omission thereof, as the investigation into the allegations is yet to commence. The charge-sheet should be precise as to the nature of the misconduct alleged, the place, date and time at which the act was alleged to have been committed, the consequences ofany such commission, i.e., the extent of damage to the property of the company or the extent of injuries caused to any person in the process, and all the relevant details. It should also make a reference to the corresponding acts of misconduct enumerated in the standing orders under which the alleged omission or colnlnission falls. The workman should be given reasonable opportunity to explain to the charges.

7 . 11 -

DOMESTIC ENQUIRY
-

Where a workman denies the allegations in response to the charge sheet, and the management desires to find out the truth of the matter, no action can be taken against s senquiry is conducted into the charges. The domestic the worl<manuntil and ~ ~ n l ean enquiry should be held by an impartial officer, who has no knowledge of the misconduct and who is not a witness to the misconduct and who is not avictiln of the misconduct. 'The workman should be given sufficient notice of the date, time and venue of the enquiry. I-le should be given every opportunity to conduct his defence at the enquiry by examining his witnesses, if any, including himself and by crossexamining the management's witnesses. He should be permitted to take extracts of a 1I the relevant doc~lments and statements before the comme~~ce~nent ofthe enquiry so that he can prepare and organise his del'encc. He should be permitted to take the assistance of a co-workman or an office-bearer of the bnion to conduct his defence, if he so desires. The enquiry should be conduct in a Fair manner. The enquiry should be conducted in can7er0, i.c., in private and should not be open to the public to view the procceclings.

17.12

FINAL DISPOSAL OF THE CASE

--

Once the enquiry is completed in all respects, the enquiry officer should submit his report to the disciplinary authority indicating therein whether, on tlie material on record and on a consideration ofthe evidence adduced by either side, the charges , alleged against the workmali have been proved or not. Tlie disciplinary authority should apply his mind to the facts ofthe case as borne out by the proceedings ofthe enquiry and tlic findings of the enquiry officer before taking a decision as regards the quantum of punishment. The punishment sl~oulcl in no case be disproportioliate to the act of lnisconduct alleged and proved, Once a decisioli is taken on the quantum of punishment, the disciplinary authority should communicate the same to the worklnan in writing. The punishment takes effect, not when the disciplinary authority took the to the workman concerned. decision, but only when it is co~ii~nunicated

17.13

HIERARCHY OF PUNISHMENTS

The standing orders /service rules provide for the followi~lg punishments i n the ascending orcler of gravity. Warning 2 ) Censurc 3) Suspension without wages for a period not exceeding 15 days. 1)

Grievaricc Handling and Discipline

4)

5) 6) admits the charges unconditionally and seeks pardon of the Where the work~nan management, there is no need to proceed filrther, and the disciplinary aut1101.ity may straightaway impose any punishment other than dismissal on the strength of the However, if the unconditional admission or, at his discretion, exonerate the worlat-~an. misconduct is so grave as to warrant the punisliinent of dismissal, notwithstanding the unconclitional admission, the disciplinary authority has to hold a for~nal enquiry, so that the worlunan does not retract from the written explanation at a later stage.
Activity B

Stoppage of increment for a maximum period of three years, if the employee is in a graded scale of pay. Reversion to the next lower grade Dismissal from service.

J3riefly explain what kind of disciplinedo you think that could enhance the overall performance ofthe organisation and why?

17.14

SUMMARY

Absence of discipline tells upon the f~~nctioning of industries and the society. Importance of discipline has to be realised by all concerned and lnaintenance of of both the workers and management. discipline should be joint respo~lsibility DiscipIine is a two-way traffic and a breach of discipline on the part of either party in an organisation will cause unrest. The approach to managing discipline depends to a great extent upon managerial philosoplly, culture and attitude towards the en~ployees. A negative approach to discipline relies heavily 011 punitive measures and in line with the traditional ~nanagerial attitude of "hire and fire" and obedience to orders. On the other hand, a constructive approach stresses on modifying forbidden behaviour by taking positive steps like: educating, counselling, etc. The concept of positive discipline proitlotion aims at the generation of a sense of self-discipline and disciplined behaviour in all the human beings in a dynamic organisational setting, instead o f discipline imposed by force or punishment. The approach to the disciplina~y action in ~llost cases sl~ould be corrective rather than punitive. Further, the positive discipline . maintenance should form an integral part of huina~l resource development efforts of an organisation.

i.

17.15
I)
2)

SELF-ASSESSMENT QUESTIONS

3)

Define discipline. Explain how discipline should be maintained in an organ isation. Explaiil the process of disciplinary action and its advantages and disadvantages. Explain the procedure of holding domestic enquiry against an erring employee.
-

17.16

FURTHER READINGS
I

W.M. Aganani Vs Badri Das, 1963 ILLJ 684 (691).(SC) per Gajendragadkar, J. Workmen of Shalimar Rope Works Ltd. Vs Management, 1953,584 LAT.

6.-'(3

I ~ ~ ~ ~ ~ , ~ ~i I I ~ :LII~,IC I,I:L
1'11

(.

r<

L;

;~+,I~~I?~I~I~~J :I!L( ,;~B~II

t?,~di;iiw~:~

1. 2. 3.

Concept, Scope and Approaches to Industrial Relations Evolution of Industrial Relations and Current Developoments Constit~~tional and Legal Framework of Industrial Relations : Conventions, ID Act, Trade Union Act
r l ~ ' ~ ~i ~ L J:t w ~i~ L iU ~ ~c fi~,"i~;~~~~

i!
4. 5. 6. 7. 8.
.j

Trade Uilioil Development and Fuilctions Trade Union Structure and Recognition Managing Trade Unions Managerial Unioilism Employers' Organisations
C~anlliln.cUive iE:,rlrg;ainniung

'3

9. 10. 11.

Nature and Content of Collective Bargaining Negotiation Slcills Issues and Trends in Collective Bargaining
~EIIRR nslRoglec U nnu~ollvennneull

-B
12. 13. 14.
5

Evolution, Structure and Process Design and Dynamics of Participative Forums Strategies for In~plementing Participation
Ca.iev;numcc I-Ii~snaiiIliiia~ ;nunel MdiscipBimc

15. 16. 17.

6

Grievance Function in Industrial Relations Conciliation, Arbitration and Adjudication Discipline in Industry
Trcrads iaa EnnpBoyrnneaat Reli~tionns

18. 19.

Strategic Employee Relations : Emerging Trends C~lltural Aspects of Employinent Relations