A

TRAINING REPORT
ON
“Impact Of Industrial Relations And Grievance Management On Company”
( Champo Carpets PVT. LTD., Panipat)

SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE REQUIREMENT OF AWARD OF DEGREE

OF
BACHELOR OF BUSINESS ADMINISTRATION
(SESSION 2023-2024)

SUBMITTED TO : SUBMITTED BY:

KURUKSHETRA UNIVERSITY, NAME: NAVJOT KAUR
KURUKSHETRA CLASS : BBA: III YEAR 5th SEM
CLASS ROLL NO: 1212193010027
UNIVERSITY ROLL NO .: 210003738

I.B. (PG) COLLEGE, PANIPAT

(AFFILIATED TO KURUKSHETRA UNIVERSITY, KURUKSHETRA)
 ACKNOWLEDGEMENT

The success and final outcome of this training report required a lot of guidance and assistance
from many people and extremely privileged to have got this all along the completion of my
training report. All that I have done due to such supervision and assistance and I would not forget
to forget them.

I respect and thank CHAMPO CARPETS for providing me an opportunity to do training work
under the guidance of Mr.Arun. I thank him for giving me all support which made me complete
project duly.

I am extremely grateful to my parents, the staff, respondents and all my friends for their
unconditionally support and ready assistance.

Navjot Kaur
 DECLARATION

I, NAVJOT KAUR here by declared that the training report entitled “A STUDY ON
INDUSTRIAL RELATIONS AND GRIEVANCE MANAGEMENT ” submitted by me in the
partial fulfillment of the degree of Bachelor of Business Administration from Kurukshetra
University, Kurukshetra is the original work presented by me under the guidance of Ms. Nisha,
Assistant Professor in Department of Commerce and Management. The data and the facts
provided in the report are authentic to the best of my knowledge.

I have not submitted this Training report to another university for the award of any degree.

Principal’s Signature Verified by : Candidate’s

Ms. Nisha Mam Navjot Kaur

(Assistant Proffessor )
 PREFACE

In today's era of cut throat competition Bachelor of Business Administration (BBA) is sure to
have an edge over their counter part. BBA education bring sits students in direct contact with the
real corporate world through industrial training. I have under gone my comprehensive training at
Champo Carpets PVT LTD.I feel great pleasure to present this report work after my training at
Champo Carpets that produced to golden opportunity for me by enriching my knowledge by
comparing my the oretical knowledge with the managerial skill & opportunity.

Grievance procedure, in industrial relations, process through which disagreements between

individual workers and management may be settled. Typical grievances may include the
promotion of one worker over another who has seniority, disputes over holiday pay, and
problems related to worker discipline.

An effective grievance procedure provides employees with a mechanism to resolve issues of

concern. The grievance procedure may also help employers correct issues before they become
serious issues or result in litigation.

Three Types of Grievances

· Individual grievance. One person grieves that a management action has violated their rights
under the collective agreement.
· Group grievance. A group grievance complains that management action has hurt a group of
individuals in the same way.
· Policy or Union grievance.
 TABLE OF CONTENT

CHAPTER NO.: PARTICULARS

1 INDUSTRY PROFILE

2 COMPANY PROFILE

3 INTRODUCTION TO THE TOPIC

4 RESEARCH METHODOLOGY

5 DATA ANALYSIS &INTERPRETATION

6 FINDINDS

7 CONCLUSION

8 LIMITATIONS OF THE STUDUY

9 SUGGESTIONS

10 BIBLIOGRAPHY
 CHAPTER 1
INDUSTRY PROFILE
Introduction:
The manufacturing and export of handmade carpets and rugs is a dynamic sector that merges
traditional craftsmanship with contemporary market demands. This industry involves the
creation of intricately designed carpets and rugs using age-old techniques, often passed down
through generations. Handmade carpets and rugs are prized for their artistic beauty, quality, and
cultural significance, making them a sought-after commodity in both domestic and international
markets.

Market Overview:
The handmade carpets and rugs industry is a significant contributor to the global home decor and
interior design markets. It offers a wide variety of styles, patterns, and materials, catering to
diverse consumer preferences. The industry's appeal lies in its ability to produce unique,
customizable, and high-quality products that reflect cultural heritage and artistic expression.

Manufacturing Process:
Crafting handmade carpets and rugs is a labor-intensive process that requires skilled artisans.
The process involves several stages, including:
1. Designing: Artisans create intricate designs based on traditional motifs or contemporary
trends.
2. Dyeing: Natural or synthetic dyes are used to color the yarn, ensuring vibrant and long-lasting
shades.
3. Weaving: Skilled weavers use traditional looms to hand-knot the yarn, creating intricate
patterns and designs.
4. Trimming and Finishing: After weaving, the carpets are carefully trimmed and finished to
achieve the desired texture and appearance.
5. Washing and Drying: The carpets are washed to remove any residual dye or impurities,
followed by thorough drying.
Export Opportunities
The export of handmade carpets and rugs presents significant opportunities for revenue
generation and cultural exchange. Key markets for these products include
· North America: The United States and Canada have a growing demand for handcrafted carpets
due to their appreciation of unique home decor items.
· Europe: Countries like the United Kingdom, Germany, and France value handmade carpets as
luxury pieces that enhance interior aesthetics. · Middle East: Traditional Middle Eastern designs
align with the region's cultural preferences, creating a strong market for handmade carpets.
· Asia-Pacific: Growing economies like China, Japan, and Australia also exhibit a rising interest
in high-quality home furnishings.

Challenges:
While the handmade carpets and rugs industry offers numerous opportunities, it also faces
challenges such as:
· Competition from Machine-made Carpets: The rise of machine-made carpets with lower
production costs poses a challenge to handmade products.
· Skills Preservation: Ensuring the transmission of traditional weaving skills to the next
generation of artisans is crucial for maintaining product authenticity.
· Market Trends: Adapting designs to suit evolving consumer preferences and market trends can
be challenging for artisans rooted in tradition.

Sustainability and Ethical Considerations:

Increasingly, consumers and industry stakeholders are advocating for sustainability and ethical
practices. Handmade carpets and rugs can address these concerns through:

· Use of Natural Materials: Employing eco-friendly and natural materials in the production
process.
· Fair Trade Practices: Ensuring fair wages and working conditions for artisans and weavers.
· Cultural Preservation: Supporting artisans who create pieces that preserve cultural heritage and
traditional techniques.
Handmade Carpets & Rugs Industry Overview
· Market Significance: Handmade carpets and rugs industry combines traditional craftsmanship
with modern demands, offering unique and artistic products for home decor and interior design
markets.
· Manufacturing Process: Craftsmanship-intensive process involving design, dyeing, weaving,
trimming, washing, and drying stages, resulting in intricate and high-quality pieces.
· Export Potential: Export opportunities abound in North America, Europe, Middle East, and
Asia-Pacific, driven by cultural appreciation and growing demand for luxury interior items.
· Challenges: Competition from machine-made carpets, skill preservation, and adapting to
changing market trends pose industry challenges.
· Sustainability Focus: Industry addresses sustainability through the use of natural materials, fair
trade practices, and cultural preservation, aligning with consumer and industry demands.
· Cultural Significance: Handmade carpets and rugs preserve cultural heritage while catering to
diverse consumer preferences worldwide.

INDIAN HANDMADE CARPETS INDUSTRY AN OVERVIEW

Exquisite Indian Handmade Carpets are not only part of luxurious lifestyle in modern times but
also reflect timeless amalgamation of nature, culture and art from the world over. The art of
carpet weaving in India was introduced by Sultan Zain-ui-Abadin, who brought some Persian
carpet weavers into Kashmir in the fifteenth century to train the local inhabitants. It however,
flourished here only after 1,535, during the reign of Mughal emperor Humayun and his
successors.
Today, the exquisite masterpieces created by over 2 mn Indian Carpet Weavers and Craftsmen,
mostly expert artisans, continue to enchant the consumers the world over. Indian carpets are
known for their magnificent designs, intricate patterns, vivid colours and matchless
craftsmanship. No wonder, India has emerged as the largest exporter of handmade carpets in the
world with a 34 per cent share of the global markets, reflecting their immense popularity and
acceptability.
ABOUT CARPET EXPORT PROMOTION COUNCIL
The Carpet Export Promotion Council (CEPC) was set-up by Ministry of Textiles in the year
1982 under Companies Act to Support, Protect, Maintain, increase and promotes the export of
handmade Carpets and other floor covering from India. There is 2,600 member – exporters
registered with this Council under the Import Export Policy. The main functions and objectives
of this Council are to organize participation in trade fairs, exhibitions and Buyer Seller Meets in
India and abroad.

To work for total eradication of illegal Child Labour from Handmade Carpet Industry and for the
Welfare of the weavers. To advise Govt. and other appropriate authorities on the Policies
adopted by the issues related to exports of Handmade Carpets and other floor coverings. To build
a statistical base and provide data on the exports and imports of the country, as well as other
relevant international trade data. To conduct publicity campaign for branding Indian Carpets.

INSIDE OF INDIAN HANDMADE CARPET INDUSTRY

Highly Labour intensive, provides employment to 2 (Two) mn weavers/person directly or
indirectly. 85-90 per cent is exported out of the total production. Exports increased from Rs. 4.42
cr in 1961-62 to Rs. 9,336.59 cr in 2017-18. Gained No.1 Status in terms of Value and Quantity
in Exports of Handmade carpets.
India is a world leader in export of handmade carpets and other floor coverings. Ranked No. 1 as
a producer and exporter of Handmade Carpets and other Floor Coverings both in terms of
volume and value. It provides extra and alternate occupation to the farmers and others at their
homes especially women.
Artisans can make handmade carpets in any design, colour and quality as per the needs of
overseas buyers and also caters to the requirement of every segment of the society. India
produces wide range of handmade carpets and other floor covering in low, medium and high
qualities for all the segments of consumers.
Product delivery time is the fastest. Raw-materials used are diverse and bending & mixing of
different yarns is its speciality. It produces wide range of designs based on its rich cultural
heritage, traditions, history and develops modern designs on country based requirements

MAJOR CARPET PRODUCING CENTRES IN INDIA

Uttar Pradesh (UP) – Major Craft Centres – Bhadohi, Mirzapur, Varanasi, Agra Other Craft
Centres – Sonbhadra, Saharanpur, Sahajanpur Jaunpur, Hathras, Ghaziabad etc. Jammu &
Kashmir (J&K) – Major Craft Centres – Srinagar, Baramullah, Pulwama, Anantnag Other craft
Centres – Pandipura, Badgam, Leh Kupwara, Pattan, Kanihama etc. Rajasthan – Major Craft
Centres – Jaipur Other craft Centres – Tonk, Bikaner, Jodhpur and surrounding areas, Alwar etc.
Haryana – Major Craft Centres – Panipat Other craft Centres – Sonepat, Karnal Punjab – Major
Craft Centres – Amritsar Other craft Centres – Ambala, Pathankot Himachal Padresh (HP) –
Major Craft Centres – Dharamshala Other craft Centres – Manali, Mandi etc. Gujarat – Major
Craft Centres – Baruch Other craft Centres – Surat Kerala – Major Craft Centres – Karur Sikkim
– Major Craft Centres – Gangtok Other craft centres – Ranipool, Tadong, Lachen & Lachung
Manipur – Major Craft Centres – Imphal Arunachal Pradesh – Major Craft Centres – Bomdila &
Tawang Mizoram – Major Craft Centres – Aizwal Andhra Pradesh – Major Craft Centres –
Eluru Other craft centres – Kurnool Orissa – Major Craft Centres – Puri Other craft centres –
Khurda, Nayagarh, Cuttack, Jagatsinghpur, Dhenkanal, Bolangir Telengana – Major Craft
Centres – Warrangal Bihar – Major Craft Centres – Madhubani Other craft centres – Gaya,
Nawada, Banka Jharkhand – Major Craft Centres – Ranchi Other craft centres – Daltonganj,
Lohardaga, Garwa Maharashtra – Major Craft Centres – Pune Other craft centres – Sangli
Chattisgarh – Major Craft Centres – Rajnand Gaon.

A GLOBAL LEADER IN HANDMADE CARPET

India is today a clear leader in the international handmade carpet market. India’s heritage of
handmade carpet has been recognized worldwide with a commending share in global exports, for
its subtle elegance, eco friendliness and exquisite vibrant colour craftsmanship with a human
touch a human touch
Indian Handmade Carpet Industry is concentrating strongly on Skill Development and has
undertaking big marketing initiatives. Carpet Industry has initiated and opened 120 Carpet
Weaving Training Centres till date in Jayapura, Bhadoshi & Mirzapur, imparted training to
around 1956 artisans especially women. In Jauapur Village 8 training batches have been
completed where 96 artisans were trained. Council has also ran 6 Centres in Rajasthan, 3 Centre
in UP, 3 Centres in Haryana, 2 Centres in Jharkhand, 2 Centres in Orissa, 2 Centres in
Chattisgarh to train 360 weavers. Council is further going to open 8 Training Centres in Bihar,
Jharkhand, Andhra Pradesh, Sikkim & Manipur to train 160 weavers. Council is also opening
five Design Training Centers in different craft areas. Handmade Carpet Industry undertakes
various domestic and international marketing initiatives for helping small and medium
manufacturers/exporters for showcasing their products to the overseas buyers.

Under the “Sab Ka Saath Sab Ka Vikas” initiative of Ministry of Textiles, Government of India,
CEPC also provides carpet weaving looms and work sheds to these trained artisans offirst three
batches of Jayapur Village, to make them selfsufficient entrepreneurs. Share

TRAINING AND SKILL DEVELOPMENT

With high socioeconomic importance, the hand-made carpets is constantly developing and
sustaining its human and material sources, necessary for its long term survival. Foresighted
lyrealising this, CEPC, with Indian Government ensures and supports every effort towards an
eco-friendly and sustainable the support of the production process.
This includes, several skill development programmes for working artisans and craftsmen,
attracting managerial talent and educate them in modern production techniques, bringing in
modern designing concepts on CAD, initiating efforts to set up regional common effluent
treatment plants, improving quality and consistency management infrastructure to name a few.
CEPC trains women artisans in Jayapur village and its surrounding areas for carpet weaving.
Apart from providing a free trainer, necessary training infrastructure and required raw material,
every trainee also gets a monthly stipend from CEPC. Trained weavers are then linked with
major carpet export houses, who provide them weaving assignment on job work basis. These
women take yarn home and weave at home in their spare time, thus adding to their incomes. This
initiative is helping the industry make-up, at least partially, for the shortage of skilled weavers,
which has been its major worry in recent years. Initiatives on skill development and marketing:
Indian Handmade Carpet Industry is concentrating strongly on Skill Development and has
undertaking big marketing initiatives. Carpet Industry has initiated and opened 120 Carpet
Weaving Training Centres till date in Jayapura, Bhadoshi & Mirzapur, imparted training to
around 1956 artisans especially women. In Jauapur Village 8 training batches have been
completed where 96 artisans were trained. Council has also ran 6 Centres in Rajasthan, 3 Centre
in UP, 3 Centres in Haryana, 2 Centres in Jharkhand, 2 Centres in Orissa, 2 Centres in
Chattisgarh to train 360 weavers. Council is further going to open 8 Training Centres in Bihar,
Jharkhand, Andhra Pradesh, Sikkim & Manipur to train 160 weavers. Council is also opening
five Design Training Centers in different craft areas. Handmade Carpet Industry undertakes
various domestic and international marketing initiatives for helping small and medium
manufacturers/exporters for showcasing their products to the overseas buyers.
Under the “Sab Ka Saath Sab Ka Vikas” initiative of Ministry of Textiles, Government of India,
CEPC also provides carpet weaving looms and work sheds to these trained artisans offirst three
batches of Jayapur Village, to make them selfsufficient entrepreneurs.
 CHAPTER 2
COMPANY PROFILE
INTRODUCTION
Legacy

The art of carpet flourishes in BHADOHI, a small rustic town in eastern UP, known as the carpet
city. Carpet weaving here dates back to the 16th century. In present day it is one of the biggest
carpet manufacturing centers in India. The intricacy and art of carpets made in Bhadohi is
unmatched by any part of the world and this legacy has been maintained by CHAMPO

The desire to create is one of the deepest yearnings of the human soul. Every carpet here is
woven with a distinct grace and an unmatched style that speaks volume about the carpet weaving
tradition of India. CHAMPO CARPETS began its journey from basic infrastructure where
carpets were woven by hands. With the passing years they have developed the best infrastructure
having both handwoven and mechanized craftsmanship.
About
Champo Carpets Pvt Ltd (CCPL) is Strike Off company established on 14 Jul 1987 with its
office registered at and has been running since 36 years 30 days with a paid up capital of 2.00
Lakh. According to MCA records, 0 Directors are linked to this company as of 30 Sep 2022.

· Authorised Capital-₹5.00 Lakh

· Paid Up Capital-₹2.00 Lakh
· Sum of Charges-___

Industry
Textile Textile Manufacturing Rugs Carpet
CIN/LLPIN/FCRN U17226WB1987PTC042688
Company No 042688
Company Classification Private Limited Indian Non-Government
Company
Incorporation Date 14 Jul 1987
Date of AGM ___
Date of Balance Sheet ___
Listing Status Unlisted
ROC Code Roc-Kolkata

Process of carpet weaving

PREPARING THE YARN
The story of each carpets starts from its yarn. The best quality yarns from India and other parts of
the world are imported here. The process of yarn opening is performed both by hands and
machine. At champo there are stockrooms for both colored and undyed yarns arranged in a
 manner that the quantity of yarn used or taken by any craftsman can be monitored with ease.

DYEING THE YARN

The dyeing of the yarn is the most difficult and important thing in carpet making. The various
techniques are used by CHAMPO for dyeing is TIE AND DYE, space or Gabeh dye. This
process consists of folding , twisting , pleating or crumpling yarn. The yarns are dyed in multi-
colors and matching a shade is an integral part of this process.

DESIGNING THE CARPET, HAND-PUNCHING, TRACING

Every act of weaving involves choosing a particular yarn , deciding on colors , imagining an
abstract or a traditional design and all this is precisely done by the designers. Each design begins
with an inspiration. From a hand-made design to a computer aided designs everything is done
precisely. To obtain the perfect design champo uses both technology and the skill of hands. After
the design is ready it is scaled into stensils ready for tracing on the loom. The next step towards
carpet making is hand punching. Hand punching is performed using hands in which the holes are
made through stentils using needle. This requires lot of focus. Now its time for the final tracing
in this the whole stensils is colored which ultimately gives the dotted design on the loom. Now
the design is ready for tufting.

Weaving
The main types of carpet weaving techniques are as follows. Hand-knotted carpets are produced
by one of the most customary and fascinating techniques of weaving Indian carpets. Hand tufted
carpets. Handloom / Loom knotted weaving. Flat weave/pile Kilims/hand woven. Power Loomed
Carpets.
FINISHING THE CARPET

The finishing of the carpet is completed in two steps clipping & edge-cutting and embossing &
carving. Clipping is performed mechanically but edge cutting is something performed by skilled
hands. Now its time for the final embossing and carving which enhances the detailing of carpet.

Scanning
Making good use of technology, scanners are used by Champo to keep track of carpets as they
move through different manufacturing process. The scanner eliminates the difficulty of
maintaining huge records. From the very first step of carpet making i.e. framing, the bar code is
tagged and this scanners keep the account of every step, eliminating the use of computers and
laptops.
Product Categories

PILLOW/POUF
We carry a range of pillows and pouf which are made in different techniques and material.

TUFTED
This weaving technique involves a tufting gun with needles on its front. This tool facilitates and
speeds up the weaving process by saving time and money.

HAND KNOTTED
These rugs are made on specially designed looms. Weavers make knot on the wraps and then
cuts it before moving on subsequent knot creating a pile effect.

CHAPTER 3
INTRODUCTION TO TOPIC
Industrial Relations

“Industrial Relations” refers to all types of relations between employers and workers, be they at
national, regional or company level; and to all dealings with social and economic issues, such as
wage setting, working time and working conditions.”

“Industrial Relations” refers to all types of relations between employers and workers, be they at
national, regional or company level; and to all dealings with social and economic issues, such as
wage setting, working time and working conditions. Each industrial relations system is grounded
in the national historical, economic, and political context and therefore differs from country to
country. As part of industrial relations, social dialogue is key for communication and information
sharing; for conflict prevention and resolution; and for helping overcome work-related
challenges. Social dialogue has demonstrated its potential as an instrument for democratic
governance and participation; a driver for economic stability and growth; and a tool for
maintaining or encouraging peaceful workplace relations.
Industrial relations are key for businesses because of their repercussions on the working
environment and the production of goods and delivery of services. Given the differences between
systems, prior to getting established in a given country, businesses have to properly study and
understand the way in which industrial relations work there. For instance, they may want to
know if collective bargaining occurs in a multi-employer context, or if collective agreements are
extended to cover all workers and employers (even if they are not members of a trade union or an
employers’ organisation); whether multiple trade unions are allowed in a given company and if
all of them have a right to sign a collective agreement; or if unions tend to be highly conflictual
and engage in collective disputes. Moreover, because of globalisation, new strategies to broaden
industrial relations at the international level have emerged, such as through International
Framework Agreements (IFAs) between a global union and a multinational company.
GRIEVANCE MANAGEMENT
Broadly speaking grievance means any real or imaginary feeling of dissatisfaction and injustice
which an employee has about his employment relationship. A well defined grievance procedure
is an important element of a sound industrial relations machinery.

Grievance handling is the management of employee dissatisfaction or complaints (e.g.

favouritism, workplace harassment, or wage cuts). By establishing formal grievance handling
procedures, you provide a safe environment for your employees to raise their concerns. You also
create a channel to explain your policies and rationale for actions or decisions.

As an employer, it is best to handle grievances in an amicable and supportive way to avoid

unnecessary escalation and negative feelings. Grievance handling procedures also allow you to
identify and address unacceptable or unlawful practices quickly.

Keith Davis defines a grievance as, “any real or imagined feeling of personal injustice which an
employee has concerning his employment relationship”.

The term “grievance” denotes any discontent or dissatisfaction whether expressed or not and
whether valid or not, arising out of anything connected with the company that an employee
thinks, believes or even feels is unfair, unjust or inequitable.

Pigors and Myers observe that the three terms, dissatisfaction, complaint, and grievance indicate
various forms and stages of employee dissatisfaction. According to them, dissatisfaction is
“anything that disturbs an employee, whether or not he expresses his unrest in words… A
complaint is a spoken or written dissatisfaction, brought to the attention of the supervisor and the
shop steward… A grievance is simply a complaint that has been ignored, overridden, or
dismissed without due consideration”.

Based on the above definitions, we may derive that:

1. Grievance is a feeling of an employee that an injustice has been done to him.
2. The feeling may be valid and legitimate, or untrue; and may arise out of something connected
with the work or the organization.
When employees have grievances and these are not redressed properly, these result in frustration,
discontent, and indifference to work, poor morale, and low productivity. Accumulated
grievances among employees may lead to turmoil in the organization.

Grievance Management – Nature

Grievances are symptoms of conflicts in the enterprise. So they should be handled very promptly
and efficiently. Coping with grievances forms an important part of any manager’s job. The
manner in which he deals with grievances determines his efficiency of dealing with subordinates.
A manager is successful if he able to build a team of satisfied workers removing their grievances.
While dealing with grievances of subordinates, it is necessary to understand the nature of
grievances.

(i) Expressed or Implied:

Expressed grievances are comparatively easy to recognize and are manifested in several ways,
e.g., gossiping, jealousy, active criticism, argumentation, increased labor turnover, carelessness
in the use of tools and materials, untidy housekeeping, poor workmanship, etc.
Indifference to work, day-dreaming, absenteeism and tardiness are indicators of unexpressed
grievances. The executive must recognize not only expressed grievances but also notice
unexpressed ones. In fact, unexpressed or implied grievances are more serious than the expressed
ones because it is not known when they may explode.
(ii) Valid Legitimate and Rational or Untrue and Irrational or Completely Ludicrous:
When a grievance of an employee comes to the notice of the management it cannot usually
dismiss it as irrational or untrue. Such grievances also have to be attended to by the management
in the same way as rational grievances.
We should know that a large part of our behavior is irrational. This may be largely due to our
distorted perception. Emotional grievances are based upon sentiments (like love, hatred,
resentment, anger, envy, fear etc.), misconceptions and lack of thinking are examples of our
irrational behavior. These grievances are the most difficult to handle.
One advantage of giving a widest possible meaning to the term “grievance” is that the possibility
of the manager overlooking any complaint is very much reduced. Even those discontents that
have not yet assumed great importance for the complainant and have therefore not moved into
formal procedural channels – such as casual remarks or grumbling-technically called complaints,
come within the purview of the grievance handling machinery of the organization and are
removed in the course.
Grievance Management – Forms of Grievances: Factual, Imaginary and
Disguised

A grievance may take any one of the following forms:

(i) Factual,
(ii) Imaginary, and
(iii) Disguised.

(i) Factual:
Factual grievances arise when legitimate needs of employees remain unfulfilled, e.g., wage hike
has been agreed but not implemented.

(ii) Imaginary:
When an employee’s grievance is because of wrong perception, wrong attitude or wrong
information. Though it is not the fault of management, the responsibility for their redressal still
rents with the management.

(iii) Disguised:
An employee may have dissatisfaction for reasons that are unknown to himself. If he or she is
under pressure from family, friends, relatives, neighbours, he or she may reach the work spot
with a heavy heart. If a new recruit gets a new table and cupboard, this may become an eye shore
to other employees who have not been treated like wise previously.

Grievance Management – Identification of Grievance: 5 Proactive Methods of

Addressing Grievances

Grievance should be redressed by adopting proactive approach rather than reactive approach.
The proactive approach addresses the factors responsible for emergence of grievance. In other
words, management does not allow grievance causing situation to emerge.

The following are the proactive methods of addressing grievances:

1. Exit Interview
Information collected from the exiting employee on various aspects of working conditions
forcing him to quit is supposed to be more credible than those expressed by the existing workers.

2. Gripe Box System:

Employees may be encouraged to drop anonymous complaints as they may fear that their
identity may invite victimisation especially when they complain against the management. This
method is more appropriate when there is lack of trust and understanding between employees
and their supervisors.

3. Opinion Survey:
Various surveys line morale survey, attitude survey, job satisfaction survey, grievance survey or
comprehensive survey comprising all the above aspects, reveal vital inputs about the negative
aspects of functioning of the organization. Since the survey is conducted by persons other than
the supervisor and the respondent’s identify is not insisted upon, information collected is likely
to be reliable.

4. Meetings:
Group meeting, periodical interviews, collective bargaining sessions, informal get-togethers may
be used to collect information about grievances.

5. Open-Door Policy:
Under this policy any employee can lodge complaint or file his grievance with the manager
designated for this purpose. The very objective of this policy is to encourage upward
communication.

Grievance Management – Grievance Handling Procedures: 4 Step

Process
A grievance handling machinery is the method by which a grievance is filed and carried through
different steps to an ultimate decision. Therefore, every organisation needs a permanent
procedure for handling grievances. There are many common features in the procedures through
which disputes involving aggrieved employees may be resolved.

However, variations may result from such factor as differences in an organisational policies or
decision making structures or the size of the organisation. Larger organisation tends to have
more formal procedure involving a succession of steps.

Some general principles which have gained wide spread support and which can serve as
guidelines in establishing a system of positive grievance administration are:
1. Grievances should be adjusted promptly

2. Procedures and forms arriving grievances must be easy to utilize and well understood by
employees and their supervisors.

3. Direct and timely avenues of appeal from ruling of live supervision must exist.

The most common grievance procedure is in four steps which is explained

below:

Ist Step:

The first step involves a presentation of the employee’s grievance to the immediate supervisor
because he is the first step of the ladder. If the organisation is unionized, a representation of the
union may also join him. This step offers the greatest potential for improved labour relations.
The large number of grievances are settled at this stage but grievance, which are related to the
issue of policies of the organisation are beyond the limit of supervisor, then the aggrieved moves
to next step.

IInd Step:

If the employee is not satisfied with decision of 1st step or fails to receive an answer within the
stipulated period, he shall, either in person or accompanied by his departmental representative if
required, present his grievance to the head of department designated by the management for the
purpose of handling grievance. (A fixed time shall be specified during which of any working
day, aggrieved employee could meet the departmental head for presentation of grievances).
The departmental head shall give his answer within three days of presentation of his grievance. If
the action cannot be taken within that period, the reason for the delay should be recorded.

IIIrd Step:

If the decision of the departmental head is unsatisfactory the aggrieved employee may request for
forwarding of his grievance to the Grievance Committee which shall make its recommendations
to the manager within seven days of the employee’s request. If the recommendations cannot be
made within the time limit, the reason for such delay should be recorded. The unanimous
recommendations of the grievance committee, the views of the members and the relevant papers
shall be placed before the manager for final decision.

In either case, the final decision of the management shall be communicated to the concerned
employee by the personnel officer within three days from the receipt of the Grievance
Committee recommendations.

IVth Step:

If the decision of the management is not communicated to the employee within stipulated period
or if it is unsatisfactory for him, he shall have right to appeal to the management for revision., if
he so desires,he shall have the right to take a union official along with him to facilitate
discussion with management. Management shall communicate its decision to him within a week
of the presentation of the employee’s revised petition.

Vth Step:

If no agreement is possible, the union and the management may refer the grievance to voluntary
arbitration within a week from the date of the receipt by the employee of the management’s
decision.

The formal conciliation machinery shall not intervene till all the steps in the model grievance
procedure have been exhausted. A grievance shall be presumed to assume the form of a dispute
only when the final decision of the top management in this respect is not acceptable to the
employee.

Grievance Management – Grievance Procedure (Features and Benefits of

Grievance Procedure)
Desirable Features of a Grievance Procedure:

i. Conformity with Existing Legislation:

The procedure should be designed to supplement the existing statutory provisions. Where
practicable the procedure can make use of such machinery as the law might have already
provided for.

ii. Acceptability:

Everybody must accept the grievance procedure. In order to be generally acceptable it must
ensure (a) a sense of fair-play and justice to the worker, (b) Reasonable exercise of authority to
manager, (c) Adequate participation of the union.

iii. Simplicity:

The procedure should be simple enough to be understood by every employee. The steps should
be as few as possible. Channels for handling grievances should be carefully developed.
Employees must know the authorities to be contacted at various levels. Information about
procedure can be thoroughly disseminated among all employees through pictures.

iv. Promptness:

The grievance should be speedily settled. Justice delayed is justice denied. The procedure should
aim at a rapid disposal of the grievance.

v. Training:

In order to ensure effective working of the grievance procedure it is necessary that supervisors
and the union representatives be given training in grievance handling.

vi. Follow-up:

The working of the procedure should be reviewed periodically by the personnel department and
necessary structural changes introduced to make it more effective.

Grievance Management – In Indian Industries

On the legal front, it is usually the Industrial Employments (Standing Orders) Act, 1946; the
Factories Act, 1948; and the Industrial Disputes Act, 1947, which deal with the grievances of
industrial employees. However, these Acts have not been able to tackle the problem and the
progress made in this regard is far from satisfactory.

In addition to these Acts, the Model Grievance Procedure or the Grievance Procedures evolved
by different organisations at their own which are usually based on the Model Grievance
Procedure formulated in pursuance of the Code of Discipline adopted by the 16th Session of the
ILC are in vogue to handle grievances.

As per the findings of a study of 12 textile mills located in Coimbatore which was jointly
sponsored by the South India Textile Research Association and the National Productivity
Council, no systematic and formal grievance procedure exists in any of the sample mills. There
is a sort of informal procedure based on traditions and conventions that is operative in most
organisations. However, some large-scale units do not have any procedure worth mentioning.

In most organisations in our industries, there is no systematic procedure of maintaining records

of grievances. Union representatives play an important role in the settlement of grievances where
there is only one majority union. In many organisations, it is the labour officers or the labour
welfare officers who deal with some of the grievances in their respective organisations.

In some cases, the Works Committees constituted under the provisions of the Industrial Disputes
Act, 1947, also play some role in this direction, but it is not significant. Most of the grievances in
Indian industries are related to wages and allied issues. The number of levels dealing with
grievance differ from organisation to organisation and vary between two and six.

It may be suggested that while in small organisations employing less than 500 employees, the
grievance procedure may have 3 stages only, in medium-sized units employing 501 and above
but up to 2,000 employees, it may have 5 stages and in rest of the organisations, the grievance
procedures may have 6 stages.

All said and done, there is no denying the fact that a formal grievance handling procedure can
play a highly significant role in redressing the grievances of employees, which, in turn, may give
a boost to the morale of employees and be effective in increasing their productivity and
subsequently the overall growth of an organisation.

Grievance Management – Settlement of Grievances in Indian Industry

Settlement of grievances has not received adequate attention in our legislative framework.
Present enactments that only indirectly deal with the redressal of individual grievances are the
Industrial Employment (Standing Orders) Act 1946; the Factories Act 1948; and the Industrial
Disputes Act, 1947.

The Industrial Employment Act provides that every establishment employing 100 or more
workers should frame Standing Orders which should contain, among other matters, provision for
means of redress for workmen against unfair treatment or wrongful exactions by the employer or
his agents or servants.

Similarly, Section 49 of the Factories Act provides for the appointment of Welfare Officers in
every factory wherein 500 or more workers are ordinarily employed. These Officers are
generally entrusted with the task of dealing with complaints and grievances.

Under Section 2-A of the Industrial Disputes Act (which was added to the Act by an amendment
made in 1965), the term “industrial dispute” includes all differences between an individual
workman and his employer connected with, or arising out of his discharge, dismissal,
retrenchment or termination notwithstanding that no other workman nor any union or workmen
is a party to dispute.

The effect of this provision is that the individual grievances of a worker can in future pass
through the settlement machinery that has been provided for under the Act.

It should be noted, however, that in none of the above Acts there exists a provision for some
specific procedure to be followed by the employer for handling day-to-day grievances of his
workers. In the absence of a statutory grievance procedure several managements allow their
workers’ daily discontent to pile up which finally culminates into cases of indiscipline and
strikes.

In order to meet the shortcoming, the Industrial Disputes (Amendment) act, 1982, which has not
yet been enforced, provides for the setting up of Grievance Settlement Authorities and reference
of certain individual disputes to such authorities.

Section 9-C of the Amended Act provides:

(i) The employer in relation to every industrial establishment in which fifty or more workmen are
employed or have been employed on any day in the preceding twelve months, shall provide for,
in accordance with the rules made on that behalf under this Act, a Grievance Settlement
Authority for the settlement of industrial disputes connected with an individual workman
employed in the establishment.

(ii) Where an industrial dispute connected with individual workmen arises in an establishment
referred to in sub-section (1), a workman or any trade union of workmen of which such workman
is a member, refer in such manner as may be prescribed such dispute to the Grievance Settlement
Authority provided for by the employer under that sub-section for settlement.
(iii) The Grievance Settlement Authority referred to in sub-section (1) shall follow such
procedure and complete its proceedings within such period as may be prescribed.

(iv) No reference shall be made under Chapter III with respect to any dispute referred to in this
section unless such dispute has been referred to the Grievance Settlement Authority concerned
and the decision of the Grievance Settlement Authority is not acceptable to any of the parties to
the dispute.