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• Discipline is a force that prompts individuals or groups to observe the rules. Regulations and procedure, which are essential for the effective functioning of an



• To gain willing devotion of the rules, regulations and procedure of an organization . • Element of uniformity despite several differences in informal behaviour • Desire among employees to make adjustments • Seek direction and responsibility among employees • Atmosphere of respect for the human relation • Enhance the working efficiency and morale of the employees


• Positive discipline
*positive support and reinforcement for approved actions *molding behavior and developing in a supportive manner *adequate compensation and incentives *appropriate avenues for career growth and advancement, proper evaluation of performance and reinforcement of approved personnel behavior or actions *self control
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Negative discipline
• They do not show the desired standard of behavior • Discipline programmed forces and constraints the employees to obey orders and functions in accordance with set rules and regulations of the organization through warnings ,penalties and other forms of punishment


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• • • • Establishment of specific rules for work Seek employees advice and feedback on rules Mechanism for assessment System of administering punishment and motivates people for change


• • • • Issuing a letter of charge to the employee Consideration of the explanation Show-cause notice Holding of a full-fledged enquiry

• Follow-up



• • • • • • • • Simple and straight forward language Factual details Clearly explained notice Last Date for submitting the show cause Separate annexure Legal aspects of communication Order of punishment Charge sheet may be sent either personally or by post

• Letter must state specifically


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Letter of show cause notice
• Mr. Ajay Kumar Watchman Mohit motors ltd New Delhi Sub: reference to night inspection on 15-11-04


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Reply to show cause letter
• Mr. Rakesh Sharma The assistant personnel manager Mohit motors ltd. New Delhi Sub: Sleeping on duty


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Case Study
• XYZ Company number of Employees:75 number of non-roll employees: 65 and the strength of contract labor: at present (non season) 130 during season it may go up to 900 last week one of our employee working as a labour supervisor who entered in to quarrel and subsequently beaten up a van driver, whom we hired for the labour transportation. though he(van driver) is a contract labour, he was beaten up while returning to factory after dropping the labours but this happen 1 km away from our premises. the van driver is working for our organization more than one year and having the support from our employees(drivers who comes under roll and non-roll as well other employees too) at the same time the employee(labour supervisor) plays a major roll in providing contract labour to the factory and also he is from local.

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Do’s Attractive and give details Accurately Correspondent is supposed to reply Letter looks beautiful and pleasing Envelope must be typed with care Address coincide with the window Be courteous check before signing check enclosures Check dates precise and clear Reply promptly


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• • • • • • • • • • Do not delay a reply but do not also be in a hurry Do not be confused or long winded Never be rude Do not be unfair personal attack or personal criticism Do not miss any relevant points Do not write to a wrong person Do not use jargon Do not use clichés Don’t violate any Do’s


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Did the employee understand what was expected?
Did the employee know in advance? Is the rule that was violated reasonably related to the safe, efficient, and orderly operation of the organization? Is there substantial evidence that the employee actually did violate the rule? Is the disciplinary action you’re planning reasonably related to I. The seriousness of the offense? II. The employee’s record with the organization? III. Actions taken with employees who have committed similar offenses?

IV. V.


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When Discipline Becomes Necessary… Giving Feedback
Describe… Don’t Judge!

Solve the problem Maintain the relationship
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What Would You Do?
Review case studies.

 Identify the key issue(s).
 Discuss with your group how you as a supervisor would handle (solve) the discipline problem.  Record recommendations. Then, brainstorm from the employees point of view and record.  Report your findings to the whole group.
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We can punish into compliance, but We cannot punish into commitment
The Key is to move: From Punishing People To Confronting Problems
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Code Of Discipline In Industry
• To maintain harmonious relations and promote industrial peace, a Code of Discipline has been laid down which applies to both public and private sector enterprises. • It specifies various obligations for the management and the workers with the objective of promoting cooperation between their representatives.

Objectives of Code of Discipline
• Maintain peace and order in industry. • Promote constructive criticism at all levels of management and employment. • Avoid work stoppage in industry • Secure the settlement of disputes and grievances by a mutually agreed procedure • Avoiding litigations • Facilitate a free growth of trade unions • Eliminate all forms of coercion, intimidation and violations of rules and regulations governing industrial relations.

Code is based on the principles:
• There should be no strike or lockout without prior notice.

• No unilateral action should be taken in connection with any industrial
matter • Employees should follow go slow tactics • No deliberate damage should be caused to a plant or property • Acts of violations, intimidation and coercion should not be resorted • The existing machinery for the settlement of disputes should be utilized. • Actions that disturb cordial relationships should be avoided.

Grievance According to Michael Jucius, “ A grievance can be any discontent or
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 unfavorable to him has happened or is going to happen. In an industrial enterprise, an employee may have grievance because of long hours of work, nonfulfillment of terms of service by the management, unfair treatment in promotion, poor working facilities, etc.

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.”

Grievances are symptoms of conflicts in the enterprise. Just like smoke could mean fire, similarly grievances could lead to serious problem if it is not addressed immediately! So they should be handled very promptly and efficiently. While dealing with grievances of subordinates, it is necessary to keep in mind the following points:
– A grievance may or may not be real. – Grievance may arise out of not one cause but multifarious causes. – Every individual does not give expression to his grievances.

Nature of Grievance

Forms of Grievances A grievance may take any of the following forms:
• • Factual: When an employee is dissatisfied with his job, for genuine or factual reasons like a breach of terms of employment or any other reasons that are clearly attributed to the management, he is said to have a factual grievance. Thus, factual grievances arise when the legitimate needs are unfulfilled. The problem that he has is real and not virtual Imaginary: When an employee’s grievance or dissatisfaction is not because of any factual or valid reason but because of wrong perception, wrong attitude or wrong information he has. Such a grievance is called an imaginary grievance. Though it is not the fault of management, the responsibility of dealing with it still rests with the management. So the problem is not real. It is in the mind or just a feeling towards someone or something. So be careful your grievances could be very much imaginary! Disguised: An employee may have dissatisfaction for reasons that are unknown to himself. This may be because of pressures and frustrations that an employee is feeling from other sources like his personal life. I am sure you will agree that if you have fought at home and come to the institute, you cannot concentrate in the class. Similarly if you have had a bad day in the institute, that will reflect in the mood at home. We are all humans and are sensitive to the environment that we operate in!

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Exit interview: Employees usually quit organizations due to dissatisfaction or better prospects elsewhere. Exit interviews, if conducted carefully, can provide important information about employees’ grievances. This can help the management to gather feedback and to genuinely incorporate feedback. The management should carefully act upon the information drawn from such employees .It should be careful that the discontentment is reduced so that no more employees quit the organization because of similar reasons. Gripe Boxes: These are boxes in which the employees can drop their anonymous complaints. They are different from the suggestion boxes in which employees drop their named suggestion with an intention to receive rewards It is normally said that if you want to progress in life, you should be close to critics. These gripe boxes can perform the role of critics for the organisation. The management should carefully act upon the information thus gathered. Now I don’t want to sound repetitive by saying that the internal customers of an organisation should be satisfied if the external customers are to be kept happy. Opinion Survey: The management can be proactive by conducting group meetings, periodical interviews with employees, collective bargaining sessions etc. through which one can get information about employees’ dissatisfaction before it turns into a grievance. Open-door Policy. Some organisation extend a general invitation to their employees to informally drop in the manager’s room any time and talk over their grievances. This can be very effective because it ca n nip the evil in the bud. That is it can take care of the problem before it gets out of hand. In fact the management should hold formal and informal get together with the employees. The management should also remember that the employees might just need a patient hearing at times. They need blow off the steam as we hear it more commonly.

Identifying Grievances

Grievances Classification
(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 Promotional. Transfer. Disciplinary action. Lack of employee development plan. Lack of role clarity.

Grievances Classification
• (3) Grievances resulting from personal maladjustment
• (i) Over – ambition. • (ii) Excessive self-esteem or what we better know as ego.

• (iii) Impractical attitude to life etc.

Effects of Grievances:
– Frustration – Alienation – De-motivation – Slackness – Low Productivity – Increase in Wastage & Costs – Absenteeism – In discipline

– Labour unrest

Establishing a Grievance Procedure
• A grievance should be dealt with in the first instance at the lowest level: that is, an employee should raise his grievance with his immediate superior. It may be simple to settle it on the spot and that will be the end of it. Even if it cannot be settled at that level, the man’s superior will know what is happening. This is necessary not only to maintain his authority, but also to prevent him from being aggrieved, as he will certainly be, if he is by-passed and hears of the complaint from his own superior. It must be made clear to the employee what line of appeal is available. If he cannot get satisfaction from his immediate superior, he should know the next higher authority to which he can go. Since delay causes frustration and tempers may rise and rumors spread around the work, it is essential that grievances should be dealt with speedily. As it is said that a stitch in time saves nine, similarly the problems of the employees should be taken care of by the management least it should become a major for the management. The grievance procedure should be set up with the participation of the employees and it should be applicable to all in the organisation. The policies and rules regarding grievances should be laid down after taking inputs from the employees and it should be uniformly applicable to all in the organisation. It should be agreed that there would be no recourse to the official machinery of conciliation unless the procedure has been carried out and there is still dissatisfaction, and moreover, there must be no direct action on either side, which might prejudice the case or raise tempers while the grievance is being investigated.

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Guidelines for Effective Grievance Handling
• • The complaint should be given a patient hearing by his superior. He should be allowed to express himself completely. The management should be empathetic. The superior should try to get at the root of the problem. It should be remembered that symptoms are not the problems. It should also be noted that if there are symptoms, there would be a problem as well. The management must show it anxiety to remove the grievances of the workers. The workers should feel that the management is genuinely interested in solving its problems. If the grievances are real and their causes located, attempts should be made to remove the causes. If the grievances are imaginary or unfounded, attempts should be made to convince the workers. Every grievance must be handled within the reasonable time limit. I am sure you will agree with this. Imagine you have a genuine problem and you share it with the authorities. You will also expect immediate action taken to take care of your problem.

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Guidelines for Effective Grievance Handling
• All grievances should be put into writing. Some proofs required as well…. • Relevant facts about the grievance must be gathered. The management should not haste! • Decision taken to redress the grievance of the worker must be communicated to him. • Follow up action should be taken to know the response of the forced employee. This is to make sure that he is happy or not! At the end of the day the satisfaction of the aggrieved party is necessary.

A grievance procedure should incorporate the following features: • 1. Conformity with existing legislation: The procedure should be designed in conformity with the existing statutory provisions. Where practicable, the procedure can make use of such machinery as the law might have already provided for. • 2. Acceptability: Everybody must accept the grievance procedure. In order to be generally acceptable, it must ensure the following:
• A sense of fair-play and justice to the worker, • Reasonable exercise of authority to the manager, and • Adequate participation of the union.

• 3. Simplicity: The following points should be noted in this regard: The procedure should be simple enough to be understood.
• • • • 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 the procedure should be thoroughly disseminated among all employees through pictures, charts, diagrams, etc.

• 4. Promptness: Speedy settlement of a grievance is the cornerstone of a sound personnel policy. It should be remembered that justice delayed is justice denied. The procedure should aim at a rapid disposal of the grievance. This can be achieved by incorporating the following feature in the procedure:
– As far as possible, grievances should be settled at the lowest level – No matter should ordinarily be taken up at more than two levels, i.e. normally there should be only one appeal. – Different types of grievances may be referred to appropriate authorities. – Time limit should be placed at each step and it should be rigidly followed at each level.

5. Training: In order to ensure effective working of the grievance procedure, it is necessary that supervisors and the union representatives should be given training in working of the grievance procedure. All the policies should be conveyed to the concerned parties. 6. Follow-up: The personnel department should review the working of the grievance procedure periodically and necessary changes should be introduced to make it more effective. This is generally ignored by the organizations. A regular follow up of the system increase the faith of the people in the system. Therefore it is necessary that the grievance procedure should be reviewed whenever it is so required.


• Arbitration is an alternative dispute resolution method where the disputing parties involved present their disagreement to one arbitrator or a panel of private, independent and qualified third party “arbitrators.” • Arbitration is a formal process similar to litigation but where the hearing is in private in front of a nominated third party, the arbitrator, who makes a binding decision. The arbitrator is not a court judge but rather an industry-specific expert or otherwise a well-qualified individual who both parties agree is suitable for resolving their dispute. • Arbitration is a legally based process that involves much of the procedure and type of argument that occurs in a court trial. However, arbitration is private. Like a court trial, it is concerned much more with fair treatment of the parties involved than achieving a precise legal agreement

Advantages of arbitration:
• The parties can choose who is to be their arbitrator and this means they can choose a person with the particular expertise involved in their dispute • The arbitral process is private and confidential to the parties and the arbitrator • An arbitration may be held anywhere that is convenient, at any suitable time. • Arbitration is flexible. Its procedure can be tailored to a particular dispute to make the best use of time whilst still ensuring a proper consideration of the matters in dispute • An arbitrator's award can be enforced over all other dispute resolution methods (except litigation and arbitration) just like a court judgment, provided it followed from a properly written arbitration agreement. Furthermore, it can be enforced in another country, if that country is one of 140 that have adopted the 1958 New York Convention on the Recognition and Enforcement of Foreign Awards.

• Arbitration can be costly if the parties select a very eminent arbitrator and engage expensive lawyers or other professionals to assist their case • The procedure and process used in an arbitral process can be complex • It is possible to appeal an arbitrator's decision, so delaying finality, particularly if the dispute relates to an important point of law • Legal aid is generally not available for arbitration for arbitration

Suitable Method if:
• • • • the parties want privacy they do not share the same legal jurisdiction the nature of the dispute is specialized one or both parties want swift/Quick resolution of the dispute

• Conciliation is a process by which representatives of both workers and employers are brought together before a third party with a view to persuading them arrive at some sort of settlement. • Conciliation is an extension of collective bargaining with third party assistance. • It is the practice by which the services of a neutral third party are used in a dispute as a means of helping the disputing parties to reduce the extent of their differences and to arrive at an amicable settlement or agreed solution. It is a process of rational and orderly discussions of differences between the parties to a dispute under the guidance of a conciliator.

• Part 3 of the act deals with conciliation.³Conciliation´ means settling of disputes without litigation.´ Conciliation is the process by which discussion between parties is kept going through the participation of the conciliator. The main difference between arbitration and conciliation is that in arbitration proceedings the award is the decision of arbitral tribunal while in the case of conciliation the decision is that of the parties arrived at with the assistance of the conciliator. • The Parties are at liberty to evolve their own procedure of conciliation for negotiating and arriving at settlement of disputes . It is only when no such agreement or procedure has been evolved by the parties that the parties that the provisions of part 3 of the act are invoked and made applicable.

• Conciliation machinery consists of:
– Conciliation officer – Board of conciliations. The conciliator induces the parties to a course of action. He plays the roles of an innovator, protector, discussion leader, stimulator, advisor, face saver. He acts as a safety value and a communication link. The task of conciliation is to offer advice and make suggestions to the parties to the dispute on controversial issues.

Essential qualities of a conciliator
• Independence and impartiality • A conciliator should never allow conciliation proceedings before him to constitute a mere formality or a step on road to arbitration. • Since a conciliator has to deal with different persons and has to preside over their joint meetings in conciliation proceedings, he not only needs tact and ability to guide and control their joint discussions, but must also give an impression of expression, responsibility, clear-headedness and mature judgment. He must be to show others that he possesses enough common sense and practical –mindedness. more at

• A conciliator should have a friendly personality, a sense of humor, especially for releasing tensions of joint discussions. A special alacrity of mind will enable him to grasp quickly and analyze rapidly the main elements of controversy.

• A conciliator should be fully familiar with the law and regulations concerning industrial relations and the settlement of industrial disputes.

Difference between conciliation and Arbitration and Arbitration
• The method of conciliation is generally applicable to existing disputes, while the mode of arbitration is available for existing as well as for the future disputes • The conciliation proceedings start by sending a written invitation and written acceptance thereof in between the parties. The invitation may be accepted or rejected by the other party as it has no binding effect, being an invitation only. The prior written agreement in arbitration commands abiding effect upon the parties and its breach by resorting to court, compels court to refer the matter to the arbitration and parties are bound by the arbitral agreement

• For adopting the method of conciliation, there is no need for a prior agreement for resorting to this method, but in arbitration a prior agreement for arbitration between the parties is required. • The pre-agreement in arbitration must be in writing but since no preagreements are required in conciliation, there is no such binding in the case of conciliation

• While conciliation proceedings are in progress, there is a bar on parties from initiating arbitral or judicial proceedings as per section 77 of the new act 1996.In arbitration, the arbitral agreement itself suggest for redressed of disputes through arbitration and if any party approaches court, the other party may request the court to refer the matter to arbitration and court is bound to refer such matter to the arbitral Tribunal

• A settlement agreement may be made by the parties themselves and the conciliator shall authenticate the same. An arbitration award on other hand, is not merely a settlement agreement but it is judgment duly signed by the arbitrator. • The conciliation proceedings may be unilaterally terminated by a written declaration by a party to the other party and the conciliator, but arbitration proceedings cannot be so terminated.

 JMCs represent a higher form of workers participation in management. The aim is to change the social structure of enterprises from inside. They lead the private sector to fit into the framework of socialist order – the idea that socialist order should be achieved by gradual and peaceful changes.

• It must have 500 or more employees. • It should have a fair record of industrial relations. • It should have a strong and well organized trade union. • Willingness of employers, workers and trade unions. • The union should be affiliated to one of the central federations.

• • • • • • Each organization shall decide about the councils. The tenure of the councils should be 2 years. Chief executive shall be the chairman . A Secretary should be appointed. Meeting at least once in a quarter . Decisions based on consensus not by voting.

• Settlements of matters . • Unit level matters having bearing in/on other branches or on enterprise . • Development of skills ,safety measures. • Improvement of general conditions of work. • Preparation of schedules of working hours and holidays. • Proper recognition and appreciation of useful suggestions of workers . • All matters, such as, wages, bonus etc, which are subjects for collective bargaining are excluded from the scope of the council. Individual grievances are also excluded from its scope.

• Important issues are forbidden. • Weakening of Trade unions . • Absence of representative union.

• A mediation has often been defined as an assisted negotiation. I believe that a better way of analyzing the mediation process is to look at the mediator as a catalyst, who supports the negotiation process at every stage. • Mediation has also become the principal method of dispute resolution in countries like Sri Lanka, where specialized Mediation Boards have been established as well as in countries in the far East, like China and Japan.

Mediation process:
• Convening process and preliminary arrangements • Mediation introduction and laying down the ground rules for mediation • Statements by negotiators, followed by a restatement of the problem by the mediator • Setting the agenda for mediation • Facilitating the mediation, by generating options, if necessary • Reaching a negotiated settlement