INDUSTRIAL DISCIPLINE

AND CONDUCT
Prof Amaresh C Nayak
 INDISCIPLINE
• Discipline – “Adherence to the norms of behaviour".
• A state of mind consisting of both attitudinal and
behavioural aspects.
• It is extremely difficult to capture the entire range and
variety of factors that cause indiscipline.
• Difficult to draw generalised inferences of universal
validity.
• The complexity of the problem is due to the
unpredictable interaction of individual variables with
those of the environment
INDIVIDUAL VS. COLLECTIVE INDISCIPLINE

• Individual indiscipline is manifested in deviant

behaviour of employees acting alone as
– habitual absence, negligence, theft, insubordination,
disorderly behaviour, fraud, tardiness and the like
• Collective indiscipline is more complex both in form
and substance. Again posing a serious threat to
industrial peace, harmony and productivity.
– Concerted go-slow, illegal strike, militancy and inter-group
altercations culminating in violence can be cited as
illustrations of collective indiscipline.
 CAUSES OF INDISCIPLINE
• A number of social, economic, cultural and political
reasons contribute to indiscipline in an organisation.
• Important among these causes are the following:
– Ineffective leadership, which cannot control, coordinates and
motivates workers.
– Low wages and poor working conditions.
– Lack of promotional opportunities due to which people feel
stagnated
– Absence of any code of conduct to regulate behaviour on both
sides.
– Lack of timely redressal of workers' grievances.
 CAUSES OF INDISCIPLINE
• Important among these causes are the following:
– Unfair management practices.
– Defective communication system.
– Lack of workers' education.
– Uninteresting work.
– Drunkenness and family problems.
– Outside political influences.
– Excessive work pressure.
 MISCONDUCT
• 'Misconduct' is: "Improper behaviour; Intentional wrong
doing or deliberate violation of a rule of standard of
behaviour".
• In so far as the industrial employment is concerned
– An employee inconsistent with the faithful discharge of his
duties towards his employer
– Any breach of the express or implied duties of an employee
towards his employer, therefore, unless it be of negligible
nature
• In industrial law the word 'misconduct‘ mean inefficiency
or slackness.
 MISCONDUCT
• 'Misconduct‘ depends on the circumstances.
• The Labour Appellate Tribunal laid clown the following
criteria for determining whether the act would be an act of
misconduct
– It is inconsistent with the fulfillment of the express or implied
conditions of service
– Is directly linked with the general relationship of employer and
employee
– Has a direct connection with the contentment or comfort of the
men at work
– Has a material bearing on the smooth and efficient working of the
concern
 MISCONDUCT
• The act of misconduct must have some relation with
the employee's duties to the employer.
 ACTS OF MISCONDUCT:
CLASSIFICATION
• Misconduct relating to duty
– Negligence of duty: Acts of gross negligence may entail
serious damage or consequences to the establishment of the
employer.
– Engaging in work similar to that of the employer
– Absence without leave
– Late attendance: Habitual late attendance
– Strike
– Go-slow: Deliberate delaying of production
– Gherao: It is the physical blockade of a target, either by
encirclement or forceable occupation.
 ACTS OF MISCONDUCT:
CLASSIFICATION
• Misconduct relating to discipline: All acts which tend to
destroy discipline or disturb the peace and good order in
the establishment
– Rowdy conduct in the course of working hours;
– Misbehaviour committed even outside working hours but within
the precincts of the concern
– Conduct proved against an employee which would render him not
worthy of employment;
– Writing a letter to the director of the company containing offensive
remarks against him;
– Behaviour insulting and insubordination to such a degree as to be
incompatible
 ACTS OF MISCONDUCT:
CLASSIFICATION
• Misconduct relating to discipline
– Abusing a superior by using vulgar and filthy language;
– Preferring a false complaint to police against a superior with a view
to bringing the management into humiliation;
– The act of wrongfully restraining and confining the manager by
workmen
– Preventing a superior officer from discharging his duties toward
the management;
– Constructing a pucca structure in the labour quarters contrary to
the directions of the management
– Riotous or disorderly behaviour;
– Damage to the property of the company.
 ACTS OF MISCONDUCT:
CLASSIFICATION
• Misconduct relating to morality: 'Morality' means
particular moral principles, good and uprighteous
behaviour - justice, honesty, modesty, etc.
– Theft
– Dishonesty and fraud
– Disloyalty
– Corruption
– Moral turpitude:
• leading to a conviction by a criminal court is such as could shock
the moral conscience of society in general
 DISCIPLINE MANAGEMENT
• 'Disciplinary Action‘ - “Any conditioning of future
behaviour by the application of either rewards or
punishments.”
– Comprises both the positive and negative actions
• Positive motivational initiatives include praise, participation and
incentives
• Negative techniques involve punishments such as warning,
censure, suspension, stoppage of increment, reversion and
dismissal
 DISCIPLINE MANAGEMENT
• 'Disciplinary Action‘ as a special connotation to mean
the application of penalties that lead to an inhibition
of undesirable behaviour.
• It is generally understood to be exclusively concerned
with negative motivation or punishment.
• Administration of negative disciplinary action is one
of the most difficult tasks of supervisory personnel
 DISCIPLINE MANAGEMENT
• Aims and Objectives
– To obtain a willing acceptance of the rules, regulations and
procedures of an organisation.
– To develop a spirit of tolerance and a desire to make
adjustments.
– To give and seek direction and responsibility.
– To create an atmosphere of respect for human personality
and human relations.
– To increase efficiency and morale of the employees.
– To impart an element of certainty despite several differences
in informal behaviour patterns.
 TYPES OF DISCIPLINE
• Discipline may be of two types
– Positive or self-discipline – an organizational atmosphere
in which subordinates willingly abide by rules, which they
consider fair
• Through positive motivational activities such as praise,
participation and incentive pay
– Negative or punitive discipline – management has to exert
pressure or hold out threat by imposing penalties on
wrongdoers.
• When this pressure becomes increasingly severe each time a man
is disciplined, it is called "progressive" or "corrective" discipline.
 TYPES OF DISCIPLINE
• Arguments against Negative Discipline/ Punishment
– For punishment to be at all effective there must be
continued monitoring or surveillance, which is a very
wasteful use of high-priced managerial time.
– Punishment never really extinguishes or eliminates
undesirable response tendencies, but only temporarily
suppresses them.
– Punishment has undesirable side effects.
– The reaction to punishment may be more extreme,
resulting in generalised inhibition and rigidity or
stereotyped behaviour
 TYPES OF DISCIPLINE
• ALTERNATIVES TO PUNISHMENT
– Extinction. Find out what reinforces the undesired
behaviour.
– Environment Engineering. Rearrange the features of the
environment so that the Stimulus situation does not evoke
the undesired response but some other response.
– Reward. Reward the desirable or natural behaviour
– Adjustment. Allow adjustment, development, or
maturation to take its course.
 ESSENTIAL OF A GOOD
DISCIPLINARY SYSTEM
• Knowledge of Rules.
• Prompt Action.
– All violations and misconducts-big and small-should be promptly
enquired into.
• Fair Action.
– All violations-big and small-should be duly punished.
– All individuals-big and small-should receive equal punishment for
equal indiscipline
– Discipline should be uniformly enforced at all times.
– The alleged violation should be fully inquired into.
– The employee should always be given an opportunity to explain his
action
 ESSENTIAL OF A GOOD
DISCIPLINARY SYSTEM
• Well Defined Procedure.
– The supervisor must assure himself that some violation of the
rules has taken place.
– He should state precisely and objectively the nature of the
alleged violation.
– He should then proceed to gather full facts about the case
and maintain proper records.
– Thought should be on the various types of disciplinary action
– The appropriateness of a disciplinary action should be
decided in terms of its effectiveness
– The accused employee should have the right to appeal
 ESSENTIAL OF A GOOD
DISCIPLINARY SYSTEM
• Constructive Handling of Disciplinary Action.
– It should be carried out by the immediate line supervisor.
– Disciplinary action should be taken in private.
– Disciplinary action is a matter for the individual.
– After the disciplinary action He should revert to his role of
a helping hand-as if nothing has happened.
– He should avoid getting into an argument.
 HOT-STOVE RULE
• Douglas McGregor draws an analogy between touching a
hot stove and undergoing discipline.
• When a person touches a hot stove:
– The burn is immediate.
– He had warning. Particularly if the stove was red hot he knew
what would happen if he touched it.
– The effect is consistent. Every one who touches a red-hot stove
would be burned.
– The effect is impersonal. A person is burned not because of
who he is but because he touched the hot stove.
– The effect is commensurate with the gravity of misconduct.
KINDS OF PUNISHMENT
 KINDS OF PUNISHMENT
• Oral Reprimand.
– for some minor offences such as failure to obey
safety rules, smoking in a prohibited area, sleeping on the
job or giving sub-standard performance.
– Issue of reprimand does not involve loss of status or wages
to the employee
– Though it amounts to disciplinary action, it is not deemed
to be a substantive punishment.
 KINDS OF PUNISHMENT
• Written Reprimand.
– Issued in case of habitual misconduct or inefficiency.
– A written reprimand may state that certain
privileges would be withheld or withdrawn if the
subordinate continues with his present conduct.
– A warning serves to alter the expectations of an individual
by making him aware of the exact nature of punishment
that awaits him following further acts of disobedience.
 KINDS OF PUNISHMENT
• Loss of Privileges.
– For such offences as tardiness or leaving work without
permission,
– loss of various privileges such as good job assignments,
right to select machine or other equipment and freedom
of movement about the workplace or company.
• Fines.
– Fine means a deduction from the remuneration of the
employee by way of punishment.
 KINDS OF PUNISHMENT
• Punitive Suspension.
– Punitive suspension is different from the suspension
pending an enquiry.
– Punitive suspension is inflicted on the workman as a
punishment for some misconduct whereas suspension
pending an enquiry is only an expedient action which a
manager may find necessary to take following commission
of a grave and serious misconduct.
 KINDS OF PUNISHMENT
• Withholding of Increments.
– Withholding of annual increment of an employee in a
graded scale is a major punishment
• Demotion.
– Demotion means reduction of an employee to a lower
grade from the one hitherto enjoyed by him.
– Demotion should be used only in a case when an
employee does not meet present job requirement or in
the event of a cutback in the work force.
 KINDS OF PUNISHMENT
• Discharge. (if both parties to an agreement have performed
what they have agreed to do, the contract is discharged.)
– Industrial jurisprudence the term 'discharge' is used to
denote removal of an employee from service by way of
punishment.
– It is not a disqualification for future employment.
– Discharge should be distinguished from discharge
simpliciter which is termination of an employee's service
not necessarily for any misconduct but for loss of
confidence.
 KINDS OF PUNISHMENT
• Dismissal.
– Also referred to as industrial capital punishment,
• Difference between Dismissal and Discharge
– While dismissal is always a punishment, discharge may or may not
be a punishment
– A dismissal is more severe punishment than discharge.
– A dismissal is immediate action taken to terminate the
employment contract of the employee without notice. But
discharge is an agreed amount of notice is to be given.
– In cases of dismissal the employee is not usually entitled to
provident fund or gratuity benefits but this is not so in the case of
a discharge.
 PROCEDURE FOR TAKING
DISCIPLINARY ACTION
• According to the Standing Orders of an organisation
• Based on the principles of natural justice:
– The worker charged should be given an opportunity to present
witnesses of his own choice on whom he relies;
– The worker should be given the right to cross examine
management's evidence;
– The evidence of the management should be taken in worker's
presence;
– No material should be used against the worker without giving him
an opportunity to explain;
– The enquiry against the worker should be fair and conducted by an
impartial person; and
– The punishment awarded should not be out of proportion
 PROCEDURE FOR TAKING
DISCIPLINARY ACTION
• Preliminary Investigation.
– A preliminary investigation in order to find out whether a
prima facie case of misconduct exists.
 PROCEDURE FOR TAKING
DISCIPLINARY ACTION
• Issue of a Charge-sheet.
– Charge-sheet is not a punishment in itself.
– It is merely notice of a charge that the worker is
responsible for some misconduct and that the
management wants to know what he has to say about it.
– It gives the worker an opportunity to explain his conduct.
– A charge-sheet is, therefore, also called a 'show cause
notice.
 PROCEDURE FOR TAKING
DISCIPLINARY ACTION
• Issue of a Charge-sheet.
– Each charge must be very clear and precise. It should not
be vague.
– There should be a separate charge for each allegation.
– There should be no multiplication of charges for the same
allegation.
– Charges must not relate to any matter which has already
been decided upon.
 PROCEDURE FOR TAKING
DISCIPLINARY ACTION
• Suspension Pending Enquiry, if Needed.
– If the nature of misconduct is grave the management may
suspend a worker even before the charge-sheet is issued
or an order of suspension may be given to the worker
along with the charge-sheet.
– Under Section 10A of the Industrial Employment (S.O) Act,
1946 the suspended worker is to be paid a subsistence
allowance .
 PROCEDURE FOR TAKING
DISCIPLINARY ACTION
• Notice of Enquiry.
– On receipt of reply to the charge-sheet, three situations may
arise
– The worker may admit the charge in an unqualified manner.
– The worker may not admit the charge and the charge merits
only minor penalty
– The worker may not admit the charge and the charge merits
major penalty.
• In this case the employer must hold enquiry to investigate into the
charge against the worker. This enquiry is classed domestic enquiry.
 PROCEDURE FOR TAKING
DISCIPLINARY ACTION
• Notice of Enquiry.
– Proper and sufficient advance notice should be given to
the worker indicating
• The date, time and venue of the enquiry
• Name of the enquiry officer
• It should also be notified that he should be ready with oral and
documentary evidence on the date of enquiry
• Bring witnesses to prove his case.
 PROCEDURE FOR TAKING
DISCIPLINARY ACTION
• Conduct of Enquiry. This step should deal with three
points:
– Deciding as to who should be the enquiry officer;
– Deciding as how to proceed;
– Deciding about the order of examining witnesses.
• Standing orders may provide as to who should hold
the enquiry
• Otherwise, an assistant manager or labour welfare
officer or company's lawyer or some outsider may be
nominated.
 PROCEDURE FOR TAKING
DISCIPLINARY ACTION
• Conduct of Enquiry.
– It should be remembered that the enquiry officer is a
judge. He must be impartial.
– An enquiry officer is disqualified on any of the following
grounds:
• If he is involved in the incident which led to the charge-sheet.
• If he has personal knowledge of the incident or himself gives or
collects evidence for the very enquiry conducted by him or helps
others in doing so.
• If he himself has issued the charge-sheet.
• If he is directly subordinate to the person accused.
 PROCEDURE FOR TAKING
DISCIPLINARY ACTION
• Recording of Findings by the Enquiry Officer.
– At the conclusion of the enquiry proceedings the enquiry
officer should decide as to whether the charges made are
valid or not along with the reasons for his findings.
– As far as possible he should refrain from recommending
punishment and leave it to the decision of the appropriate
authority.
 PROCEDURE FOR TAKING
DISCIPLINARY ACTION
• Awarding Punishment.
– This is the task of management.
– The punishment should be awarded on the basis of
findings of the enquiry, past record of the employee and
gravity of misconduct.
 PROCEDURE FOR TAKING
DISCIPLINARY ACTION
• Communication of Punishment.
– The letter communicating the punishment should contain:
• Reference to the letter of charges issued to the employee;
• Reference to the enquiry;
• Reference to the findings of the enquiry;
• Decision whether to punish or not;
• Date from which the punishment is to be effective.
 THE CODE OF DISCIPLINE
• Code of specifies various obligations for the
management and the workers with the
objective of promoting cooperation between
their representatives.
 THE CODE OF DISCIPLINE
• OBJECTIVES:
– Maintain peace and order in industry.
– Promote constructive criticism at all levels of management
and employment.
– Avoid work stoppage in industry
– Secure the settlement of disputes and grievances by a
mutually agreed procedure
– Avoiding litigations
– Facilitate a free growth of trade unions
– Eliminate all forms of coercion, intimidation and violations of
rules and regulations governing industrial relations.
 THE CODE OF DISCIPLINE
• PRINCIPLES:
– There should be no strike or lockout without prior notice.
– No unilateral action should be taken in connection with any
industrial matter.
– Employees should follow go slow tactics
– No deliberate damage caused to a plant or property
– Acts of violations, intimidation and coercion should not be
resorted
– The existing machinery for the settlement of disputes should
be utilized.
– Actions that disturb cordial relationships should be avoided.
 THE CODE OF DISCIPLINE
• To ensure better discipline in industry Management
and Union(s) agree
– No unilateral action should be taken
– The existing machinery for settlement should be utilized
– There should be no strike or lock-out without prior notice
– Neither party will have recourse to coercion, victimization
– They will avoid litigation, sit-down, and lock-outs
– They will promote constructive co-operation
– They will establish a mutually agreed grievance procedure
– They will abide by various stages in the grievance procedure
 THE CODE OF DISCIPLINE
• To ensure better discipline in industry Management
Agrees
– Not to increase work-loads unless agreed upon or settled
otherwise
– Not to support or encourage any unfair labor practice such
as discrimination and victimization of any employee
– To take prompt action for settlement of grievances and
implementation of settlements, awards and decision
 THE CODE OF DISCIPLINE
• To ensure better discipline in industry Union agrees
– Not to engage in any form of physical duress
– Not to permit demonstrations which are not peaceful
– That their members will not engage or cause other
employees to engage in any union activity during working
hours
– To discourage unfair labor practices such as negligence of
duty, damage to property and insubordination
– To take prompt action to implement awards, agreements,
settlements and decisions
 CODE OF CONDUCT
• The code of conduct communicates to the
employees, the expected behavior and the
professional responsibilities.
• The code expects employees to conduct business
with integrity and honesty.
• Moreover, it expects the employer to be an equal
opportunity employer.
 CODE OF CONDUCT
• The Code of Conduct policy of a company is
determined on the basis of following factors:
– Honesty and integrity:
– Disclosure of information:
– Harassment:
– Outside employment:
– Conflict of interest:
– Confidentiality:
– Equal opportunity employer:
– Misusing company resources:
– Health and safety:
– Payment and gifts:
THANK YOU