Abstract

A grievance is a sign of an employee’s discontentment with his job or his relationship with
his colleagues. A grievance arises when an employee feels that something has happened or
is happening to him which he thinks is unfair, unjust or inequitable.Grievances generally
arise out of the day to day working relations in an organization. One of the effective ways of
minimizing and eliminating the source of an employee’s grievance is by having an ‘open
door policy’. An ‘open door policy’ facilitates upward communication in the organization
where employees can walk in to a superiors’ cabin at any time and express their grievances
freely.
Contents
1. Employee Grievance......................................................................................................................5
1.1 Definition and Concept of Grievance.....................................................................................5
1.2 Causes of Grievance...............................................................................................................5
1.3 Need for Grievance Redressal Procedure..............................................................................6
1.4 Steps in Grievance Redressal Procedure................................................................................6
1.5 Grievance Redressal in Unionised Organisations...................................................................8
1.6 Legislative aspects of Grievance Redressal Procedure in India..............................................9
2. Employee Discipline.....................................................................................................................10
2.1 Definition and Concept of Discipline....................................................................................10
2.2 Aims and Objectives of Discipline........................................................................................10
2.3 Forms and Types of Discipline..............................................................................................11
2.4 Acts of Indiscipline and causes for Misconduct/Indiscipline................................................12
2.5 Approaches to Dealing with Indiscipline..............................................................................15
2.5.1 Traditional Approaches................................................................................................15
2.5.2 Alternative Approaches...............................................................................................18
2.6 Disciplinary Procedure.........................................................................................................20
2.7 Types of Disciplinary Actions...............................................................................................21
2.8 Code of Discipline in the Indian Industry.............................................................................24
3. Industry Examples for Employee Grievance and Disciplinary Procedures...................................27
3.1 Punjab National Bank Employee Grievance Redressal System- ‘PNB SAMADHAN’.............27
3.2 Steel Authority Of India Limited(SAIL).................................................................................28
3.3 Infosys Technologies Limited...............................................................................................29

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1. Employee Grievance
1.1 Definition and Concept of Grievance
Grievance According to Michael Jucius, “ A grievance can be any discontent or
dissatisfaction, whether expressed or not, whether valid or not, and arising out of
anything connected with the company that an employee thinks, believes, or even
feels as unfair, unjust, or inequitable.” A grievance means any discontentment or
dissatisfaction in an employee arising out of anything related to the enterprise where
he is working. It may not be expressed and even may not be valid. It arises when an
employee feels that something has happened or is going to happen which is unfair,
unjust or inequitable. Thus, a grievance represents a situation in which an employee
feels that something unfavourable to him has happened or is going to happen. In an
industrial enterprise, an employee may have grievance because of long hours of
work, non-fulfilment of terms of service by the management, unfair treatment in
promotion, poor working facilities, etc.

1.2 Causes of Grievance

The causes of employee grievances differ from person to person and these are
broadly classified as the following.

(1) Grievances resulting from working conditions, improper matching of the worker
with the job, changes in schedules or procedures, non-availability of proper tools,
machines and equipment for doing the job, unreasonably high production
standards ,poor working conditions, bad employer – employee relationship, etc.

(2) Grievances resulting from management policy wage payment and job rates,
leave, overtime, seniority and promotion, transfer, disciplinary action, lack of
employee development plan, lack of role clarity.

(3) Grievances resulting from personal maladjustment (i) Over- ambition. (ii)
Excessive self-esteem or what better known as ego. (iii) Impractical attitude to life
etc.

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1.3 Need for Grievance Redressal Procedure
The employee grievances, if left unaddressed can have various ramifications. It
would spoil the organizational atmosphere, taking a toll on the productivity of its
people and finally affecting the bottom line hence its stake holders as well. The
effects of grievances could influence the peaceful functioning of the company.

Effects of Grievances:

Frustration – This would worsen the interpersonal relationship between employees

and will suppress their creativity.

Alienation –They may feel isolated or insecure and may develop a thought that they
are not important for the organization.

De-motivation –The employee gets de-motivated and loses enthusiasm. This would
often produce substandard quality performance.

Slackness –The employee feels unrecognized and feels to shirk work. He lacks
seriousness and sincerity to work and say, pending works may increase.

Low Productivity –All the above factors finally leads to low productivity which further
paves the way for the following practices.

E.g.: Increase in Wastage & Costs

Absenteeism -

Indiscipline

Labour unrest etc.

Hence the grievances should be addressed timely and sincerely.

1.4 Steps in Grievance Redressal Procedure

These are the steps in Grievance Redressal Procedure:

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1. Identify Grievances: Employee dissatisfaction or grievance should be identified by
the management if they are not expressed. If they are ventilated, management
has to promptly acknowledge them.
2. Define correctly: The management has to define the problem properly and
accurately after it is identified/ acknowledged.
3. Collect Data: Complete information should be collected from all the parties
relating to the grievance. Information should be classified as facts, data,
opinions, etc.
4. Prompt Redressal: The grievance should be redressed by implementing the
solution.
5. Implement and follow up: The implementation of the solution must be followed
up at stage in order to ensure effective and speedy implementation.

FIRST STAGE (DEPARTMENT LEVEL): The aggrieved employee shall represent his
grievance either in person or in writing to the Welfare Officer or any other Officer in
the Dept, which should be acknowledged. A written reply should be sent to the
worker under the signature of the Manager within 10 days.

SECOND STAGE (AREA LEVEL): If the employee is not satisfied, he may request the
Manager to forward his Grievance to the Grievance Committee constituted at Area
level which consists of:

MANAGEMENT REPRESENTATIVES WORKMEN REPRESENTATIVES

a) General Manager of the Area

b) Manager/HOD

c) Area Personnel Dept. Head (Member Secretary)

a) One permanent member nominated by the Recognised Trade Union of the Area
OR in his absence, a representative duly authorised by the said Union.
b) A representative of the Registered Trade Union OR a co-worker of the worker’s
choice.

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 The recommendations of the Grievance Committee shall be communicated to the
concerned workmen within 10 days. A copy of the minutes of the Grievance
Committee meeting may be supplied to the Representative of the Recognised Union.

THIRD STAGE (APPELLATE AUTHORITY – CORPORATE LEVEL): If the employee is not

satisfied with the reply given by the Grievance Committee at Area level, he can
represent the matter to the Director (P, A&W) at Corporate level.

The representation will be disposed of within 15 days.

All the officers are requested to put in their best efforts to examine and redress the
genuine grievance submitted by workmen at different stages expeditiously.

Response Time for Complaints:

Deliverables From the date of receipt of complaint

Acknowledgement slips /letter Within 3 days
Complaint redressal Within 30 days
a) Normal redressal Within 30 days
Time to be intimated to the complainant
b) Specific cases where
and interim reply to be given within 30
redressal may take longer
days
Transfer of complaint Within 7 days
Rejection of complaint Within 30 days
Appeal by complainant Within 12 months
Disposal of Appeal Within 2 months

1.5 Grievance Redressal in Unionised Organizations

The union plays a very important role in settling employee grievances.

The following steps represent the procedure of redressal in unionized organization.

1. The employee with grievance first approaches his supervisor and conveys his
problem orally. The grievance can be settled at this stage if the supervisor has
requisite people-management and problem solving skills.

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 2. If the employee is not satisfied with the settlement, the supervisor forwards this
grievance to the higher manager with a note mentioning the grievance of the
employee and the failure in the first stage of redressal.

3. If the decision at this level is also not acceptable to the employee, then the grievance
is referred to the grievance committee, which consists of members from the union
and the management. The committee can ask the employee to accept the proposed
settlement of the employer. In some cases however, based on the severity of the
issue the committee ask the employee to submit the grievance for arbitration

4. The final step is when the grievance is referred to the arbitrator. The arbitrator
should be acceptable to both the management and the employee.

1.6 Legislative aspects of Grievance Redressal Procedure in India

In India, until the enactment of the Industrial Employment Act, 1946, the settlement
of the day-to-day grievances of the workers did not receive much attention. It is
important to lay down detailed grievance procedure with mutual consent.

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2. Employee Discipline
2.1 Definition and Concept of Discipline
According to Earl R Bremblett discipline in its broadest sense means “orderliness, the
opposite of confusion. It does not mean a strict and technical observance of rigid
rules and regulations. It simply means working, cooperating and behaving in a
normal and orderly way, as any responsible person would expect an employee to
do.”

According to Nirmal Singh, ”discipline is employee self control which prompts him to
willingly cooperate with the organizational standards, rules, objectives, etc.”

Employees should adhere to the rules and regulations laid out by the organization to
ensure order and discipline. But not all employees accept the responsibility of
disciplining themselves. When employees indulge in acts of indiscipline, the
organization is forced to take action against them to discourage such behavior. In
such cases, merely trying to motivate these employees so that they adhere to the
accepted norms of responsible employee behavior may not be enough. Such
employees may require some degree of external disciplinary action like punishment.

An employee is subjected to disciplinary action when he fails to meet some

obligations towards his job or the organization. The primary objective of disciplinary
action is to make an employee conform to the organization’s rules and regulations.

2.2 Aims and Objectives of Discipline

The aims and objectives of discipline are:

1. To ensure and enable employees to work in accordance with the rules and
regulations of the organization.
2. To ensure the employees follow the organizational process and procedures in
spite of their different personalities and behaviour.
3. To provide direction to the employees and fix the responsibilities.
4. To improve organizational performance by improving the efficiency of each
employee.

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 5. To maintain a sense of orderliness and conformity to organizational rules in the
employees.
6. To maintain common feelings of trust and confidence in the employees towards
each other and towards the management.

It is essential to have capable and knowledgeable supervisors for a smooth and

disciplines working of an organization. It is the responsibility of the supervisors to
ensure that all employees are aware of the need to maintain organizational
discipline and the implications of indiscipline. However they should take care not to
use force as this might result in resistance and rebellion from the employees. The
success of any disciplinary procedure depends on the cooperation of both the
employer and the employee and the faith and trust they have in each other. This will
eventually lead them towards accomplishing the organizational goals.

2.3 Forms and Types of Discipline

Discipline among employees can be achieved in two ways, either through rewards or
through penalties. Based on this, discipline can be classified in to two types:

1. Self imposed or positive discipline

2. Enforced or negative discipline

Self imposed or positive discipline:

If employees are motivated through rewards, appreciation, constructive support,

reinforcement or approved personnel actions to conform to organizational rules and
regulations, it is termed as positive discipline. The attitude and mindset of the
employees is developed to ensure that they willingly conform to the rules and
regulations of the organization. Positive discipline requires an efficient leader who
can motivate employees and make them work together towards implementing
discipline in the organization. The concept of self discipline and self control is
emphasized through positive discipline, as employees willingly cooperate to ensure
discipline in the organization. They develop mutual respect for each other and the
organizational rules and procedures. This happens when they understand and
believe that these rules and procedures will contribute to the achievement of the

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 organizational goals as well as their personal goals. Hence positive discipline is also
known as cooperative discipline or determinative discipline.

If employees are forced to follow the rules and regulations of the organization by
inducing fear in them, then it is referred to as negative discipline. In this type of
discipline, the employees fear loss of promotion, an increment or a job and therefore
reluctantly or unwillingly try to conform to the organizational rules. Negative or
enforced discipline involves the use of techniques like reprimands, fines, lay-offs,
demotions and transfers. Using these kinds of techniques will result in only partial
success in meeting the standards of performance.

Organizations should use negative discipline only when it is extremely essential. All
efforts should be made to ensure discipline through a positive approach, so that
employees are motivated to perform as per the disciplinary standards laid out by the
organization.

2.4 Acts of Indiscipline and causes for Misconduct/Indiscipline

Misconduct or an act of indiscipline impairs the organization, tarnishes its reputation
and leads to employee unrest. If not tackled immediately, these acts can lead to
disciplinary problems. Disciplinary problems can be classifies in to three types. They
are:

Minor infractions

Major infractions

Intolerable offences

Minor infractions are acts of misconduct that cause very little harm but if neglected,
can accumulate and result in serious problems for the organization. They may relate
to coming late to work, negligence etc. major infractions interfere with the orderly
operations of the organization and affect the morale of the employees. They relate
to cheating, stealing, violating safety regulations etc. Intolerable offences are those
that can cause serious harm and damage to the organization. These include use of

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alcohol/drug while at work, smoking at the workplace where inflammables are
stored and instigating co-workers in a situation of conflict.

The basic acts of misconduct or indiscipline in an organization can be categorized as

follows:

 Attendance

Attendance is one of the major problems that managers encounter in the

organization. It relates to misuse of leave facilities, tardiness and absenteeism. This is
more prevalent among unskilled/semi skilled workers and junior management level
employees. The reasons for attendance problem could be:

Incongruence in employees and organizational goals

Personality characteristics like attitude toward work

Unpleasant relationship with supervisors and co-workers

Ensured job security leading to a relaxed and uninterested approach

 On the job behaviour

An employee’s behaviour should be in accordance with the rules and regulations laid
out by the organization any behaviour that hampers the work of the individual or
disturbs the performance of other employees demands disciplinary actions. These
violations are very easy to identify and need immediate corrective actions.

Reason for such acts of indiscipline can be:

Lack of proper upbringing and education

Work related pressures and strained relationships

General attitude and personality of the individual

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 Dishonesty

Dishonesty is not only stealing or misusing organizational resources. It also involve

claiming a colleague’s work, cheating, spying, working below potential etc. The
reason for dishonesty could be:

Social and economic pressures

Lack of proper upbringing and education

Personality characteristics of the employees

Biased and subjective performance evaluation systems.

 Activities That Are Harmful For The Organization

This category involves all those categories that employees engage in, which affect
either their on the job performances or the organization’s reputation. Unauthorized
strikes, criminal activities, and working for a competitor are some of these activities.
Bad mouthing the organization or questioning the organization’s key values in public,
also contribute unacceptable behaviour.

An organization has the right to enforce discipline when employee behaviour off the
job becomes an embarrassing issue. Therefore their off the job behaviour must be in
congruence with the image of the organization.

 Causes of indiscipline and misconduct

When an employee has to perform a job that does not suit his qualifications,
experience or aptitude, it can lead to employee frustration. This can lead to acts of
misconduct like irregular attendance, work etc.

Strained relations with the supervisors or with the co workers can force an employee
to indulge in acts of indiscipline similar to ones stated above.

Improper or biased evaluation of individuals and their performance can result in

demotivated employees, who might resort to misconduct to express their
dissatisfaction and distress

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 An inefficient, ineffective and closed door grievance redressal procedure in an
organization can result in indiscipline of employees who are dejected and frustrated.

Loss of trust or confidence in each other, or in the management, can make

employees behave in an indisciplined manner.

Lack of proper education and upbringing of the workers can also lead to indiscipline
at work

Improper or inconvenient working conditions can lead to acts of indiscipline by

workers

Ambiguous working responsibilities, organizational policies and procedures also lead

to frustration among employees and result in misconduct.

Social and economic pressures or compulsions, outside the purview of the

organization, may also lead to indiscipline and misconduct of employees.

All these causes indicate that most of the reasons of indiscipline are internal to the
organization. Some reasons are personality specific and a few are due to external
factors like social and economic pressures. Therefore, having the right organizational
culture and a good manager is important to guide and help employees towards
fulfilling their tasks in a disciplined manner. At the same time employees should also
be cooperative and should show an equal sense of responsibilities to maintain
discipline

2.5 Approaches to Dealing with Indiscipline

2.5.1 Traditional Approaches
Traditionally, discipline has been viewed as punitive: managers use their
positions of authority to coerce employees into changing conduct or job
performance. "Progressive" discipline meant that employees typically were
treated with increasingly severe punishments until they altered their
behaviour, or else they were discharged. Traditional ways of disciplining
employees for infraction of policies and procedures have been found to be

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 ineffective in many situations, possibly because they are usually punitive in
nature.

 Progressive Discipline Approach:

A progressive discipline model is typical of this approach to discipline.

Developed in the 1930s in response to the National Labour Relations Act
(NLRA) of 1935, the progressive discipline model features a four-step
progression (an oral warning, a written warning, suspension and dismissal) for
addressing transgressions committed by workers.

The concept of progressive discipline states that penalties must be appropriate

to the violation. In this approach discipline is imposed in a progressive manner,
giving an opportunity to the employee to correct his or her misconduct
voluntarily. The steps in progressive discipline approach can be illustrated as
follows:

Step 1: Coaching

• Discuss performance expectations

• Manager offers necessary support for employee success

Step 2: Provide a Verbal Warning

• Address specific unacceptable behaviour

• Explore causes of problem and possible solutions

• Communicate specific change expected

• Express confidence that the problem will be solved

Step 3: Provide a Written Warning

• Meet to outline recurrent unacceptable behaviour

• Avoid threats

• Gain employee’s agreement to change

• Document the meeting in writing

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 Step 4: Terminate Employment

• Be brief

• Give specific reasons for termination

• Provide information on employee rights or procedures

• Collect keys and other golf course property

 The Red Hot Stove Rule:

Without the continual support of the subordinates, no manager can get things
done. But, disciplinary action against a delinquent employee is painful and
generates resentment on his part. Hence, a question arises as to how to
impose discipline without generating resentment? This is possible through
what Douglas McGregor called the “Red Hot Stove Rule”, which draws an
analogy between touching a hot stove and undergoing discipline.

According to the Red Hot Stove rule, disciplinary action should have the
following consequences:

(a)   Burns immediately: If disciplinary action is to be taken, it must occur

immediately so the individual will understand the reason for it. With the
passage of time, people have the tendency to convince themselves that they
are not at fault.

(b)  Provides warning: It is very important to provide advance warning that

punishment will follow unacceptable behaviour. As you move closer to hot
stove, you are warned by its heat that you will be burned if you touch it.

(c)  Gives consistent punishment: Disciplinary action should also be consistent

in that everyone who performs the same act will be punished accordingly. As
with a hot stove, each person who touches it is burned the same.

(d)  Burns impersonally: Disciplinary action should be impersonal. There are no

favourites when this approach is followed.

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  Judicial Approach to Discipline:

The Industrial Employment Act passed in 1946 requires that all establishments
must define the service rules and prepare standing orders. The term ‘Standing
orders’ refer to the rules and regulations, which govern the conditions of
employment of workers. They indicate the duties and responsibilities on the
part of both the employer and the employees. The standing orders contain
rules relating to: classification of employees, working hours, holidays, shift
working, attendance, leave, suspension, termination, stoppage of work,
redressal of grievances against unfair treatment, etc. Any violation or
infringement of these terms and conditions may lead to misconduct or
indiscipline.

2.5.2 Alternative Approaches

Non-punitive ways of motivating employees to change their behaviour and
improve performance have been experimented with since the 1980s.

 Positive Discipline Approach:

This approach is based on the premise that role of a discipline approach should
not always be to punish; rather, it should try to regulate the negative
behaviour of employees to make them better workers. Positive discipline is a
corrective action which results in improved performance, more productivity
and effective workforce. Harsh and negative punishment might work in the
short term, but the end result will eventually be employee dissatisfaction, low
productivity, higher rate of absenteeism and high turnover. This approach tries
to mend the negative behaviour of employees by first providing them
counselling in terms of what is expected out of them and then giving oral and
written warnings to them. Termination or discharge in extreme cases may also
take place.

Steps of positive discipline approach

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1. Counselling: 
Counselling is an important part of the discipline process, because it
gives a supervisor the opportunity to identify employee work
behaviour problems and discuss possible solutions with him. The goal
of this phase is to make employee aware of organizational policies and
rules. Counselling by a supervisor in the work unit can have positive
effects also. Often, employees simply need to be made aware of rules.
An oral warning can also be given to employee during counselling.
Confrontation helps to understand the employee point of view as well.
However, proper training should be given to the supervisors regarding
counselling skills to make this process successful.

2. Written warning: 
If employee behaviour has not been improved by counselling sessions,
then a second conference is held between the supervisor and the
employee. This stage is documented in written form. As part of this
phase, the employee and the supervisor develop written solutions to
prevent further problems from occurring.

3. Final warning: 
When the employee does not follow the written solutions, a final
warning conference is held. In that conference the supervisor
emphasizes to the employee the importance of correcting the
inappropriate actions. Some firms incorporate a decision-day off, in
which the employee is given a day off with pay to develop a firm,
written action plan to remedy the problem behaviours. The idea is to
impress on the offender the seriousness of the problem and the
manager’s determination to see that the behaviour is changed.

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 4. Discharge: 
If the employee fails to follow the action plan that was developed and
further problem behaviours exist, then the supervisor will discharge
the employee.

The positive aspect of this approach is that it focuses on problem solving

rather than punishing and penalizing. This approach involves positive
confrontation with the problem employee and thus gives him an opportunity
to justify himself. The supervisor makes him aware of the company policies.
The greatest difficulty with this is the extensive amount of training required
for supervisors and managers to become effective counsellors. Also, the
process often takes more supervisory time than the progressive discipline
approach.

2.6 Disciplinary Procedure

Though there is no rigid and specific procedure for taking a disciplinary action,
the disciplinary procedure followed in Indian industries usually consists of the
following steps:

(a) Issuing a letter of charge: When an employee commits an act of

misconduct that requires disciplinary action, the employee concerned should be
issued a charge sheet. Charges of misconduct or indiscipline should be clearly and
precisely stated in the charge sheet. The charge sheet should also ask for an
explanation for the said delinquent act and the employee should be given
sufficient time for answering this.

(b) Consideration of explanation: On getting the answer for the letter of

charge served, the explanation furnished be considered and if it is satisfactory, no
disciplinary action need be taken. On the contrary when the management is not
satisfied with the employee’s explanation there is a need for serving a show-
cause notice.

(c) Show-cause notice: Show-cause notice is issued by the manager when he

believes that there is sufficient prima facie evidence of employee’s misconduct.
However, this gives the employee another chance to account for his misconduct
and rebut the charges made against him. Enquiry should also be initiated by first

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 serving him a notice of enquiry indicating clearly the name of the enquiring
officer, time, date and place of enquiry, etc.

(d) Holding of a full-fledge enquiry: This must be in conformity with the

principle of natural justice, that is, the employee concerned must be given an
opportunity, of being heard. When the process of enquiry is over and the findings
of the same are recorded, the Enquiry Officer should suggest the nature of
disciplinary action to be taken.

(e) Making a final order of punishment: Disciplinary action is to be taken

when the misconduct of the employee is proved. While deciding the nature of
disciplinary action, the employee’s previous record, precedents, effects of
disciplinary action on other employees, etc., have to be considered.
 When the employee feels that the enquiry conducted was not proper and the
action taken is unjustified, he must be given a chance to make an appeal.

(f) Follow up: After taking the disciplinary action, a proper follow up action has
to be taken and the consequences of the implementation of disciplinary action
should be noted and taken care of. 

2.7 Types of Disciplinary Actions

Different acts of indiscipline deserve different kinds of disciplinary action based on
their severity and gravity. The various disciplinary actions that are administered in
response to noticed acts of indiscipline by employees are verbal warning, first
written warning, final written warning, suspension, pay cut, demotion and dismissal.

Verbal warning:

Verbal warning is an informal warning given to an employee. It is one of the mildest

actions taken against an employee for an act of indiscipline. Such warnings are given
in an informal and private environment. The supervisor should explain to the
employee, the rule that has been violated and the implications for violating it. For
example, if an employee reports late to the office frequently, then the manager
might call the employee to his cabin and explain that employees should report to the
office on time. The manager should make efforts to find out the reason for the
employee being late and ask for possible alternate solutions to the problem. If the

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solutions offered by the employee are not suitable, then the manager can help him
to find the ways to avoid problems in future. The employee should also be made
aware of the consequences of not reporting to office on time. It is good practice to
keep a temporary record of this reprimand in the employee’s file. If the verbal
warning is effective, further disciplinary action can be avoided. However, if the
employee fails to improve his performance, the manager has to resort to more
severe action.

Written Warning:

If the oral warning fails, then the next step is to give a written warning to the
employee. This is the second step in progressive disciplinary procedure and the first
formal stage of the disciplinary procedure. This is a formal stage as the written
warning is placed in the employee’s file and a copy given to the employee and one
send to the personnel department. The procedure followed before a written warning
is issued, is almost the same as that of the verbal warning. The employee is informed
of the violation, its effects, and potential consequences of future violations. The only
difference between the two actions is that the manager tells the employees that a
written warning will be issued. The manager writes down the rule that has been
violated, any assurances given by the employee that he will correct his behavior, and
the future action that will be administered if the deviant behavior is repeated.

Suspension:

If the employee does not adhere to the rules and regulations of the organization in
spite of being given a verbal and written warning, then the next step is ‘suspension’
of the employee. However, if the act of discipline is quite serious, then the employee
may be suspended without any prior verbal or written warning.

In suspension, the employee is laid-off from work for a short period of time and he is
not paid during this time. This kind of action helps in making the employee realize his
fault and inconvenience that his behavior has caused to others in workplace.

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Demotion:

If no improvement is noticed in the performance of the employee even after

suspension, and if the management wants to strongly avoid dismissing the
employee, demotion may be an alternative. Very few organizations use this step as a
disciplinary action, the reason being its tendency to demoralize not only the
employee but his coworkers as well. This kind of punishment is not temporary, as
the employee has to continue in the demoted job for an unspecified period until the
management finds his performance improved. This may add the employee’s distress
and he may fail to perform up to the mark even in this job.

Demotion is administered only when

i. The employee clearly does not have the ability to perform the job.

ii. Management perceives itself legally or ethically constrained from dismissing the
employee, and

iii. It is believed that this action will awaken the employee to change his behavior.

Pay cut:

Cutting the undisciplined employee’s pay is another alternative used in administering

disciplinary action. This approach has a demoralizing effect on the employees, but is
considered a rational action by management if the only alternative is dismissal. If the
employee alters his behavior, the pay cut can always be cancelled.

Dismissal:

The ultimate disciplinary punishment is dismissing the erring employee. This action
must be used only for the most serious offense or after all earlier steps have failed.
The decision to dismiss an employee should be given long and hard consideration
before being implemented. Being sacked from a job causes emotional trauma to an
individual. This is especially true of employees who have been with the organization
for a long period and for those past their prime age in the job market. In addition,
the management must consider the possibility that a dismissed employee might
resort to legal action to fight the decision.

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 Before discharging the employee of his duties for gross indiscipline, the following
condition must be satisfied:

 The nature of the misconduct should indicate that discharge or dismissal is an

appropriate punishment and this kind of punishment should have been mentioned in
the standing orders.

 After a charge sheet has been filed against the employee, an enquiry should be
conducted regarding the miss conduct and prior notice of the time, place and the
date of enquiry should be given to the employee.

 The enquiry conducted should be fair and the employee should be given a chance to
defend himself and to prevent witness from support of his contention or case.

 At the end of the enquiry, the enquiry officer should record the findings based on
recorded evidence.

 The findings must be based on recorded evidence and should not be biased.

 The order of dismissal or discharge of the employee must be passed in good faith.

 The order must ne duly communicated to the employees against whom it has been
passed.

2.8 Code of Discipline in the Indian Industry

The code of Discipline in the Indian industry was formulated on the
recommendations of the Indian Labor conference held in New Delhi in the year
1957.The code was made applicable to the industry from 1 st June 1958. The main
aim of the code was to lay down certain principles of discipline that govern the
Indian industry. The basic feature of the code of discipline is as follows:

 Both the management and the employees should abide by certain self-imposed rules
in order to avoid disputes. In case disputes arise, they should be settled through
negotiation, conciliation and voluntary arbitration.

 Each party should acknowledge and respect each other’s rights and responsibilities.

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 No party should take any unilateral decision regarding any disputes. The existing
machinery for settlement should be utilized.

 The code discourages litigation and lays emphasis on settlement of disputes through
negotiation, conciliation and voluntary arbitration rather than through adjudication.

 Acts of violence, coercion, intimidation or incitement should not be indulged in.

 There should be precision and speedy implementation of disciplinary action and any
agreements reached.

 Employees and trade unions can take appropriate actions in case they find officers
and supervisors indulging in activities which are against the code.

 The trade union must be recognized in accordance with the criteria laid down for this
purpose. Only unions that observe the code of Discipline are entitled to recognition.

To conclude, the objectives of the code are to promote a healthy working

environment and maintain discipline in the industry. It aims to eliminate all forms of
coercion, intimidation and violation of rules, regulations and procedures and
procedures governing industrial relations. It also highlights to the management and
the employees, the importance of the recognition of each other’s rights.

Industrial Employment (Standing Orders) Act, 1946

The primary objective of the industrial employment (Standing Orders) Act, 1946 is to
ensure protection of labor by providing uniform and stable conditions of service.
Prior to this act, the terms and conditions of employment were changed and
misused frequently. They were the source of constant friction and disputes in courts
leading bad industrial relations. This act was enacted to address these problems.

The industrial Employment (Standing Orders) Act, 1946 requires employees of

certain industrial establishments to define clearly, and with adequate precision, the
conditions of employment, i.e. standing order or service rules, and to make them
known to the workmen employed by them.

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Every industrial establishment covered by the Act must have a set of certified
standing orders which shall be binding on the employer and the employees. The
central and state governments have prescribed MODEL STANDING ORDERS that
serve as the basic foundation of the rules of the conduct. Industrial establishments
can either draft their own standing orders on the basis of the MODEL STANDING
ORDERS, and get them certified by the concerned authorities, or simply adopt the
MODEL STANDING ORDERS.

The employer has to fulfill certain obligations concerning the standing orders. He has
to prepare the draft of the standing orders covering all the matters specified in the
schedule and conforming to the MODEL STANDING ORDERS. The employer should
give five copies of the draft to the certifying officer, along with an application in the
prescribed form. Particulars like details of the employees in the establishments, and
the trade union, if any, to which they belong have to be submitted in the prescribed
format. The application has to be submitted within six months from the date the act
becomes applicable in the establishment. Employees of the establishment are bound
by the certified standing orders and should adhere to the laid down rules.

If a question arises about the application or interpretation of any certified standing

order, it may be referred by the employer, employee or the trade union to a labor
court established for the administration of such procedures. The labor court, after
listening to the concerned parties, make a decision which is final and binding on all
the parties involved.

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3. Industry Examples for Employee Grievance and
Disciplinary Procedures
3.1 Punjab National Bank Employee Grievance Redressal System- ‘PNB
SAMADHAN’
‘PNB SAMADHAAN’ – the employee grievance redressal system, is being introduced
with a view to lend an ear to the genuine work-related and personal problems faced
by the staff members which have a bearing on their work, so that the same can be
considered for resolution.
‘PNB SAMADHAAN’ purports to provide an open, fair and fast channel for the staff
members to bring forth their genuine grievances/issues to the notice of the
Management. Through this structured mechanism, staff members may address such
issues directly to the Chairman and Managing Director of the Bank by e-mailing at his
e-mail address which is: cmd@pnb.co.in. Alternatively, they may send their
representations to CMD’s Secretariat:

On receipt of the representation, a written acknowledgement will be sent to the

concerned staff member and appropriate action will be initiated on the same. The
details of the action thus initiated will also be informed to the staff member.

In order to implement ‘PNB SAMADHAAN’ in its true spirit, the following are
observed:
1. By Staff members:
a) In respect of staff members posted in branches/Circle Offices, the aggrieved staff
member should first send his representation to his controlling Circle Office. It is only
when he does not receive an acknowledgement of the same from the Circle Head
within 7 days of his sending the representation or when he is not satisfied with the
decision taken at the CO level, that he can send his representation to the Chairman
and Managing Director of the Bank.
b) In respect of staff members posted in HO Divisions, the aggrieved staff member
should first send his representation to his Divisional Head. It is only when he does
not receive an acknowledgement of the same from the concerned Division within 7

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 days of his sending the representation or when he is not satisfied with the decision
taken at the HO Division level, that he can send his representation to the Chairman
and Managing Director of the Bank.

2. By all Circle Offices and Head Office Divisions:

a) On receipt of representation from the aggrieved staff member under ‘PNB
SAMADHAAN’, a written acknowledgement should be sent to the staff member by
the Circle Head within 7 days of receipt of representation at CO. On examination of
the matter at CO level an appropriate action should be taken to look into the
grievance(s) of the staff member and the details of the action taken should be
informed to the staff member within 15 days of having acknowledged receipt of the
representation.
b) Similar time-frame should be followed at HO Division level in respect of
representations received at HO Division respectively.

3.2 Steel Authority Of India Limited(SAIL)

Ministry of Steel has a well laid out three-tier grievance redressal mechanism which
ensures fast disposal of grievances. In the Ministry, there are very few cases of
grievances redressal and these are settled within a period of 3 months.

Computerization of grievance redressal has been done. One of the Joint Secretary
functions as a Director of Public & Staff Grievances in respect of the entire Ministry
of Steel, the only attached office and the various PSU’s functioning under the
Ministry of Steel.
The overview of status of the public grievance redressal machinery in PSUs is as
under:-

Effective internal grievances redressal machinery exists in SAIL plants and units,
separately for executives and non- executives. The grievance procedure has evolved
after sustained deliberations and consent of employees, trade unions and
associations. In fact, at Rourkela Steel Plant, the grievance redressal machinery bears

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 its origin and draws strength from a tripartite settlement between RSP management
and the then recognized trade union under the Industrial Act, which has laid down
the constitution of bipartite grievance redressal committees and the modalities of
resolving the grievances raised by the workers through these committees.
The grievances in SAIL plants/units are dealt in 3 stages and employees are given an
opportunity at every stage to raise grievances relating to irregularities, working
conditions, transfers, leave, work assignments and welfare amenities etc. Such issues
are effectively settled through the time-tested system of grievance management.
However, majority of the grievances are redressed informally in view of the
participative nature of the environment existing in the steel plants. The system is
comprehensive, simple and flexible and has proved effective in promoting
harmonious relationships between employees and management.

3.3 Infosys Technologies Limited

About Infosys:

Infosys Technologies Ltd. was started in 1981 by seven people with US$ 250. Today,
Infosys is a global leader in the IT and consulting domain with revenues of over US$ 4
billion.

Infosys defines, designs and delivers technology-enabled business solutions that help
Global 2000 companies win in a Flat World. Infosys also provides a complete range
of services by leveraging our domain and business expertise and strategic alliances
with leading technology providers.

Infosys pioneered the Global Delivery Model (GDM), which emerged as a disruptive
force in the industry leading to the rise of offshore outsourcing. The GDM is based on
the principle of taking work to the location where the best talent is available, where
it makes the best economic sense, with the least amount of acceptable risk.

Infosys has a global footprint with over 50 offices and development centers in India,
China, Australia, the Czech Republic, Poland, the UK, Canada and Japan. Infosys and
its subsidiaries have 105,453 employees as on September 30, 2009.

Infosys Vision:

To be a globally respected corporation that provides best of breed business

solutions, leveraging technology, delivered by best-in-class people.

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Values at Infosys:

Infosys has always followed the highest standards of corporate governance and has
set new levels in transparency and integrity. Infosys has adopted a code of business
conduct and ethics, which is based on what are called the Infosys Core Values. These
core values in short are called C-LIFE; Customer Delight, Leadership by Example,
Integrity and Transparency, Fairness and Pursuit of Excellence.

The vision and values at Infosys can be summarized by the following pictorial
diagram:

Grievance Redressal System in Infosys:

There are various mechanisms for raising the grievances by the employees in Infosys.

 ASHI (Anti Sexual Harassment Policy in Infosys)

This policy was introduced in the early 2000’s after a case was reported in Infosys.
According to this policy if a person (male/female) feels that he has been harassed in
the organization he/she can raise a complain to his or her superiors. The superior will
forward the issue to the committee which will be formed and the issue will be taken
up. All the parties involved in the case are called for hearing and necessary action is
taken. The strength of the penalty depends on the extent to which the harassment

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has been done. It may extent from warnings to termination from the company and
legal action thereafter. Infosys educates the employees about the importance of
ASHI during training period and deviation from above is considered to be very
serious. All the employees are expected to strictly adhere to the anti-harassment
policy. Various training and education programs are conducted from time to time for
the employees.

 HEAR

HEAR initiative is one of the newest initiatives to be inducted in to Infosys grievance

redressal System. It is for the employees to raise their grievances when they think
that they are not given proper ratings during appraisals. The employee can raise a
complaint against his/her immediate boss to a committee. The committee will
investigate about the issue and necessary action will be taken. Normally the
committee will consist of three independent managers, so that transparency will be
there.

In addition to the above mentioned initiatives there are other systems like Grievance
Redressal Board. In this the employees can send a mail (GRB@infosys.com) to the
board and the complaint will be registered and necessary action will be taken. There
is a concept called Brown Bag Snacks in Infosys which is also a forum in which the
employees can raise their grievances. It is a meeting which is headed by the head of
the business unit and select number of employees will participate. It normally
happens outside the office and the employees can raise their concerns in the
meeting. There will be an HR executive present who will take note of the issues
raised by the employees and he will give the necessary clarifications required. The
above meetings happen in an interval of 45 days.

Skip Level meetings are those which are held every 30 days. In this meeting the
manager’s manager will be present and employees can raise their concerns to him.
After that the HR executive will intimate the employees about the status of their
issue. Various issues are solved through the use of the above mentioned
mechanisms in Infosys. Thus it can be seen as why Infosys was voted as one of the
best companies to work for in India.

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Employee Discipline at Infosys:

Infosys has established a code of conduct for all its employees based on the core
values and it believes that compliance to the code of conduct is “Everybody’s
business”.

The code of conduct encompasses major aspects of an employee’s day to day

activities like:

a. Conduct at the workplace

Infosys firmly believes in providing a harassment free work environment to its
employees and hence has in place a anti-harassment policy and any violation of
this policy would be very strictly dealt by the company and many a times would
lead to termination of the job.
Apart from this the code of conduct also includes an anti-sexual harassment
policy to help curb any sexual harassment and harassment based on pregnancy.
Needless to say, this policy is very strict on employees and any violation to this
policy would lead to termination. The company has also established a Grievance
Redress Body to address to such issues of harassment.

The company also has a policy to curb the drug/alcohol abuse. This policy
requires that employees are not in possession of or being under the influence of
illegal drugs and alcohol on the job.

Dress code:
Employees at Infosys are expected to dress neatly and in a manner consistent
with the nature of work performed. The dress code for Infoscions is as follows:

Men:
Monday & Tuesday – Formals with tie
Wednesday & Thursday – Formals (Can wear slack/half-arm shirts)
Friday – Casuals (No torn jeans, flashy T-shirts, sandals)

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 Women:
Monday to Thursday – Business formals / Saree / Selwar kameez
Friday – Casuals (No torn jeans, flashy T-shirts, short-skirts, sandals)

Any violation to the dress-code would attract a fine of Rs. 200/- which would
deduct from the employee’s salary.

b. Protecting Company’s confidential information

Infosys’s confidential information includes architecture, source code, product
plans, road maps, names and lists of customers, dealers, employees and financial
information. This information is the property of the company and may be
protected by patent, trademark, copyright and trade secret laws and all such
information has to be used by employees for business purposes only. Thus an
employee at Infosys has the responsibility of safeguarding, securing and proper
disposal of confidential information in accordance with the Company’s policy on
Maintaining and Managing Records set forth in the Code of Business Conduct and
Ethics.

All employees, at the time of joining the company are required to sign a
Proprietary Information and Invention Agreement. Under this agreement, the
employees are required to abide the agreement and not disclose the Company’s
confidential information to anyone or use it to benefit anyone other than the
Company without prior written consent of authorized Company Officer.

c. Safety at workplace
All Infoscions are required to comply with all applicable health and safety policies
which are again in compliance with the local laws to maintain a secure and
healthy work environment.

d. Use of Company’s assets

Infosys believes that it is the responsibility of each and every employee to
protect the Company’s assets and hence the Company lays stress on the usage

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and handling of its assets and resources. This policy not just includes the
employees but the agents/contractors as well.

According to this policy, all company employees, agents or contractors are

responsible for the proper usage of Company assets, and must safeguard such
assets against loss, damage, misuse or theft. Employees, agents or contractors
who violate any aspect of this policy or who demonstrate poor judgment in the
manner in which they use any Company asset may be subject to disciplinary
action, up to and including termination of employment or business relationship
at the Company’s sole discretion.

The Company’s assets or resources include the brand and logo, Company’s funds,
computers and other equipment, software and electronic usage.

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