INDUSTRIAL RELATIONS

MEANING AND DEFINITION

• Dale Yoder has defined it as, “a relationship between management and employees or among
employees and their organisation, that characteristic and grow out of employment”.

• According to the International Labour Organisation (ILO), “Industrial Relations deal with
either the relationship between the state and employers’ and workers’ organisations or the
relation between the occupational organisations themselves.”

• In Edwin B. Flippo’s view the term’ Industrial relations’ refers to all types of relations that exist
in an industrial enterprise, and they are constituted by employer and employees. The term
denotes all types of intra-group relations within and inter- group relation between these
constituent groups.
• In other words industrial relations is that part of management which is related with the
human resources of the enterprise.

• It is, thus, the relationship created at different levels of the organization by the diverse,
complex and composite needs and aspirations and attitudes and approaches among the
participants.

• It is highly complex and dynamic process of relationships involving not only employees and
managements, but also their collective forums and the State.
ORIGIN
• Colonial-
the country controlled by the British and the industrial relations were only means to maintain
the colonies, the role of the state in that time was used to keep the peaceful industrial relations so
as to have continued production.

• Post colonial-
the state started to build its industrial relations structure on the pre-existing colonial law. The main
purpose of doing that was again to achieve industrial peace. The Indian state was tolerant of unions
and recognized the value of labor management cooperation in the context of planned economic
development

• Emergency
the power of the unions has been restricted, but because this period was very short, it did not have
a long term influence on the industrial relations.
• the last era of globalization and liberalization,
• the state recognized that the policies should be flexible in the workplace practices to keep
the industry competitive.

• Today the India employers facing the stress of fierce competition which come from the
globalization and they wish to maintain the competitiveness.

• The role of the India state runs through the whole industrial relations. There have always
been detailed laws on collective bargaining, dispute resolution, employee participation and
employment security.

• Three important pieces of legislation have played a very important role in shaping Indian
industrial relation, they are: Trade Unions Act, 1926 (TUA), The Industrial Employment
Act, 1946(IEA) and the Industrial Disputes Act, 1947(IDA). These three legislations
influence each other to produce the clear Indian system
SCOPE

• It is highly complex and dynamic process of relationships involving not only employees and
managements, but also their collective forums and the State.

• Scope of industrial relations cannot be restricted to common labour-management relations or

employer-employee relations. It is a comprehensive and total concept embracing the sum
total of relations at different levels of the organization structure

• it denotes relations
i) among workers themselves within the class of employees,
ii) relations among the managements within the managerial class
iii) relations between two distinct classes of workers and management.
iv) It denotes all types of inter-group and intra-group relations within industry.
PARTIES

• The five main parties associated with any industrial relations system are
• the workers,
• the managements,
• the organizations of workers and managements,
• the State.
• The consumer
And the term industrial relations denote an organized relationship between organized parties
representing employers and employees regarding issues of collective interest.
FEATURES
• Industrial relations is the relation between manage­ment and employees.
• The relationship may be positive, negative or mixed.
• Pattern of IRs is influenced by people’s value, belief, perception, aptitude, personality,
attitudes, ethical value etc.
• The relationship is based on economic, non-economic issues arising out of terms and
conditions of employment as also practices not covered under the terms.
• Means of IRs are HR/IR policies, procedures, rules, regulations, legislations etc.
• Collective bargaining is the effective mechanism of shaping the pattern of industrial
relations.
• Changing economic scenario, technological advances, organization mission, strategic
approach, trade unions’ role contribute a lot to influence IRs pattern.
• State acts as regulator, facilitator in shaping IRs pattern in industry.
 STATE PERFORMS THE FOLLOWING FUNCTIONS IN INDUSTRIAL RELATIONS:

• It is the single largest employer of labour;

• It makes legislations in the area employment relations;

• It mediates conflicts between the different parties in an industrial dispute by way of arbitration and
conciliation - for instance, by instituting industrial courts (emphasis added) and; conciliation boards,
officers, labour courts, tribunals, adjudication etc

• State policies also have implications for industrial relations.

• The role of the India state runs through the whole industrial relations. There have always been
detailed laws on collective bargaining, dispute resolution, employee participation and employment
security , wellbeing, working conditions, , discipline
• Three important pieces of legislation have played a very important role in shaping Indian
industrial relation, they are: Trade Unions Act, 1926 (TUA), The Industrial Employment
Act, 1946(IEA) and the Industrial Disputes Act, 1947(IDA). These three legislations
influence each other to produce the clear Indian system As the situation in china, the India
government plays a major role in regulating the industrial relations. After the year 1947, the
country become independent and many trade union leaders have the important positions in
the government too

• The government forces employers to recognize labor unions and negotiate with them in a
process called "mandatory collective bargaining." Unions are recognized by law as
"exclusive bargaining representatives" who may prohibit individual workers in their
bargaining units from negotiating individual working arrangements ..
INDUSTRIAL RELATIONS – OBJECTIVES
• The primary objective of industrial relations is to bring about sound and healthy relations between employers
and employees.
• In addition to the primary objective, industrial relations aim:
• (i) To facilitate increased production and productivity;

• (ii) To safeguard the rights and interests of both labor and management by enlisting their co-operation;

• (iii) To avoid unhealthy atmosphere in the industry, especially work stoppages, go-slows, gheraos, strikes,
lockouts; and

• (iv) To establish and maintain industrial democracy;

• (v) To achieve a sound, harmonious and mutually beneficial labor management relations.
CONT…..

• (vi) To control and discipline parties concerned and adjust their conflicting interests.

• (vii) Improvement in the economic conditions of workers in the existing state of industrial
management and political government;

• (viii) To regulate production and promoting harmonious industrial relations;

• (ix) Socialization or rationalization of industries by making the state itself a major employer;
and

• (x) Vesting of a proprietary interest of the workers in the industries in which they are
employed
INDUSTRIAL RELATIONS – FUNCTIONS

• i. Communication is to be established between workers and the management in order to

bridge the traditional gulf between the two.

• ii. To establish a rapport between managers and the managed.

• iii. To ensure creative contribution of trade unions to avoid industrial conflicts, to safeguard
the interests of workers on the one hand and the management on the other hand, to avoid
unhealthy, unethical atmosphere in an industry.

• iv. To lay down such considerations that may promote understanding, creativity and co-
operativeness to raise industrial productivity, to ensure better workers’ participation.
 HOW DOES “INDUSTRIAL RELATIONS” BENEFIT THE EMPLOYEE?
• Union Representatives
• Trade and/or labour unions resist the exploitation of employees by employers through equal bargaining
power, and represent workers’ interests in the employment relationship.

• It is the union (rep), on behalf of the worker, who ensures that the employee benefits from Industrial
Relations and aim to secure the workers by helping them to have:

Better wages that is sustainable for the future of the employee.

Improved working conditions so that the employee can be productive, safe and happy.
Mutual respect by ongoing conversation between the employer and their employees to keep the work
relationship healthy.
The proper Training and Skills Development to keep up with trends in the workplace so the employee will
be able to progress within their career.
Union reps then ensure that the process of Industrial Relations benefits the employee, and protects the
interests of the employee during negotiations and similar relations with the employer.
HOW DOES “INDUSTRIAL RELATIONS” BENEFIT THE EMPLOYER?

• Union Reps
• Trade and/or labour unions represent the employees in negotiations with the employer.

• Because the union rep represents the multitudinous voices of the employees, it allows the employer to
hear only one clear and concise argument on behalf of the workers instead of having to field the same
comments/concerns from hundreds of employees who are all saying the same thing.

• Union reps save the employer time and thus money in this way.

• It also saves the employer man-hours and communication struggles by creating a platform for two-way
communication between a large group of employees and a usually smaller group of employers.
NEED FOR GOOD INDUSTRIAL RELATIONS :
• Good industrial relations are necessary for the following reasons:
• 1. To help in the economic progress of a country. The problem of an increase in productivity is
essentially the problem of maintaining good industrial relations. That is why they form an important
plank of the economic development plan of every civilized nation
• 2. To help establish and maintain true industrial democracy which is a prerequisite for the
establishment of a socialist society.
• 3. To help management both in the formulation of informed labour relations policies and in their
translation into action.
• 4. To encourage collective bargaining as a means of self-regulation. They consider the negotiation
process as an educational opportunity, a chance both to learn and to teach.
• 5. To help government in making laws forbidding unfair practices of unions and employers. In a
climate of good industrial relations, every party works for the solidarity of workers’ movement.
Unions gain more strength and vitality.

• 6. To boost the discipline and morale of workers. Maintenance of discipline ensures orderliness,
effectiveness, and economy in the use of resources. On the other hand, lack of discipline means waste,
accidents, and confusion. It also means insubordination and non-cooperation.
THE IMPORTANCE OF GOOD INDUSTRIAL RELATIONS

(a) Develops good working environment.

(b) Develops sense of cooperation.
(c) Creates sense of commitment.
(d) Workers work sincerely.
(e) Avoids labour problems.
(f) Controls industrial disputes and maintains industrial peace.
(g) Accidents and wastes are reduced.
(h) Production and productivity improves.
(i) Quality of work improves,
(j) Profit of the firm goes high.
(k) Contributes to national economy.
CHANGING DIMENSIONS OF IR
• The institution of Trade union is becoming weaker

• Collective bargaining is being decentralised- individual, unit, collaborative

• Dis-investment, privatisation, VRS are accepted facts of IR

• Changing pattern of compensation/reward management- performance related

• Social security and employment guarantee schemes are provided for un-organised /agriculture
workers

• Attitude of judiciary is changing

• Pro-labor attitude of government is being diluted

ISSUES AND CHALLENGES OF INDUSTRIAL RELATIONS IN INDIA
• Job security a thing of past

• Economic agenda uppermost in the minds of management

• Judiciary playing an active role

• VRS schemes could be a double edged weapon

• Need to provide a democratic forum to workers

• Consolidation of bargaining strength

• Keep the dialogue open

FACTORS AFFECTING INDUSTRIAL RELATIONS ARE:-

 1. Internal Factors
• 2. External Factors
• 3. Institutional Factors
• 4. Economic Factors
• 5. Social Factors and cultural
• 6. Technological Factors
• 7. Psychological Factors
• 8. Political Factors
• 9. Enterprise-Related Factors
• 10. Global Factors
• 11. Market Condition
• 12. Ideological Factors
• 13. Conditions for Congenial Industrial Relations.
• INDUSTRIAL DISPUTES – MODULE II
MEANING AND DIFINATION

• The Industrial Disputes Act, 1947 defines an industrial dispute as, “any dispute or difference
between employers and employers, or between employers and employees, or between
employees and employees, which is connected with the employment, or non employment, or
the terms of employment or with the conditions of work of any person.”

• Industrial dispute must be raised by a group or class of workmen

• It is the cause of employee dissatisfaction.
• It is the sign of industrial unrest.
• When the relations between management and employees are not smooth there is bound to be
a confrontation leading to industrial dispute.
• It may take any form, organized or unorganized.
 CAUSES

EECONOMIC Non economic

Wages & perks RsPoor leadership

Bonus Non recognition of TU
Working conditions No grievance redressal
Automation Partial treatment by
Facilities supervisors
Working hours Political environment
Tech changes
Partial Treatmentpart
FORMS OF DISPUTES
• Strike:
• Non acceptance of employees’ demand leads them to stop the work and proceed on strike. Strike is
the last and important weapon with the employee which is used when all hopes of fulfillment of their
demand are shattered and there is no way left to them but to resort to strike. Strike is initiated and
supported by the employee union. It is stopping of work by the employees or a group of employees
undertaken to pressurize the management to accept their demands. It can continue for any number of
days. It is a complete cessation of work by the employees. Strikes can be of following types.

• (a) Economic Strike:

• (b) General Strike:
• (c) Sympathetic Strike:
• (d) Sit Down Strike:
• (e) Go slow Strike:
• Gherao: Gherao means to surround. The members of the union surround the Chief
executive and do not allow him to leave the place where he is surrounded or gheraoed.

• Lock out Lock out is resorted to by the employers to put pressure on their employees. Lock
out is undertaken by the employers to force the employees to resume work on the terms and
conditions of employers.

• Picketing:Picketing is a method resorted to by the employees to attract attention of

common men to the fact that there exists a dispute between the management and employees..
Picketing is legal activity to exhibit protest. It is not violent activity.

• 5. Boycott:The workers may boycott use of company’s product. They may request the
general public also to do so. This adversely affects the sale of company’s product.
TYPES OF INDUSTRIAL DISPUTES:

The ILO’ has classified the industrial disputes into two main types

• 1. Interest Disputes:
• These disputes are also called ‘economic disputes’. Such types of disputes arise out of terms
and conditions of employment either out of the claims made by the employees or offers
given by the employers. Such demands or offers are generally made with a view to arrive at
a collective agreement. Examples of interest disputes are lay-offs, claims for wages and
bonus, job security, fringe benefits, etc.

• 2. Grievance or Right Disputes:

• As the name itself suggests, grievance or right disputes arise out of application or
interpretation of existing agreements or contracts between the employees and the manage­
ment. They relate either to individual worker or a group of workers in the same group.
CONSEQUENCES

• The common consequences of industrial disputes are loss of production, income, and employ­ment
and increase in inflation and cost of living. Alternatively speaking, industrial disputes injure
economic welfare of the nation broadly in two ways.

• Firstly, work-stoppages impoverish the workers actually involved in the disputes and, thus, lessens,
their demand for the goods manufactured by other industries.
• Secondly, if the industry under work-stoppage manufactures items that are used in the conduct of
other industries, it lessens the supply of raw materials for their production.

• This ultimately results in loss of output and, in turn, reduces the national income. To quote the value
of production loss, which was Rs. 537.8 lakhs in 1961, has increased to Rs. 4,545.9 lakhs in 1995,
i.e., an eight-time increase in the production loss.
METHODS OF SETTLING INDUSTRIAL DISPUTES
COLLECTIVE BARGAINING

•  A technique by which dispute as to conditions of employment, are

resolved amicably, by agreement, rather than by coercion

•  The dispute is settled peacefully and voluntarily, although

• reluctantly, between labor and management.

•  The final outcome of bargaining may also depend upon the art, skill
and dexterity of displaying the strength by the
representatives of one party to the other.
CONCILIATION

•  Conciliation is a process by which the representatives of workers and employers

are brought together before a third party with a view to persuading them to arrive at
an agreement by mutual discussion between them. The third party may be an
individual or a group of people.

• The third party may also be called as mediators.

•  The ID Act, 1947and other state enactments authorize the governments to appoint
conciliators charged with duty of mediating in and promoting the settlement of
industrial disputes.
 CONCILIATION

•  Conciliation officer: an authority appointed by the government to

mediate disputes between parties brought to his notice; enjoying the
powers of a civil court. He is supposed to give judgment within 14 days
of the commencement of the conciliation proceedings.

•  Board of conciliation: The Board is an adhoc, tripartite body having the

powers of a civil court created for a specific dispute(when the conciliation
officer fails to resolve disputes within a time frame, the board isappointed)

•  Court of enquiry: In case the conciliation proceedings fail to resolve a

dispute, a court of enquiry is constituted by the government to investigate
the dispute and submit the report within six months.
ARBITRATION

•  Arbitration is a procedure in which a neutral third party studies the

• bargaining situation, listens to both the parties, gathers information and then makes
recommendations that are binding on both the parties.

•  Arbitration is effective means of resolving disputes because it is :

• 1. Established by the parties themselves and the decision is acceptable to them.
• 2. Relatively expeditious when compared to courts and tribunals
ADJUDICATION

•  Adjudication means a mandatory settlement of an industrial dispute by a

labor court or a tribunal. Generally, the government deems a dispute for
adjudication depending on the failure of conciliation proceedings.

•  Section 10 of the Industrial Act, 1947, provides for reference of a dispute

to labor court or tribunal.

•  Disputes are generally referred to adjudication on the recommendation of

the conciliation officer who had dealt with them earlier. The government
has a discretionary powers to accept or reject recommendations of the
conciliation officer. It is obvious that once is referred for adjudication ,
the verdict of a labor court or tribunal is binding on both the parties.

•  This is the most significant instrument of resolving disputes. But, it has

been criticized because of the delay involved in resolving conflicts.
CONSULTATIVE MACHINERY

•  Consultative machinery is set by the government to resolve conflicts. The

• main function is to bring the parties together for mutual settlement of
• differences in the spirit of co-operation and goodwill.
•  A consultative machinery operates at plant , industry , state and national
• levels. At plant level, there are works committee and joint management
• councils. Being bipartite in character, works committee are constituted as
• per the provisions of industrial Disputes Act, 1947 and joint management
• councils are set up following the trust laid down in the Industrial Policy
• Resolution,1956. At the industry level, there are wage boards and
• industrial committee.
•  Labor advisory boards operate at the state and at the all India level
• there are Indian labor conference and the Standing labor committee.
• The bodies operating at state and national level, are tripartite in character
• , representing government, labor and management.
INDUSTRIAL DISCIPLINE

Definition of Industrial Discipline

• Industrial discipline refers to orderly working of the employees of an industrial

undertaking in accordance with established rules, regulations and conventions .

• Industrial discipline can thus be defined as “the orderly conduct of affairs by the members of an
in­dustrial organisation who adhere to its necessary regulations because they desire to co-operate
har­moniously in forwarding the end which the group has in view and willingly recognise that to
do this, their wishes must be brought into a reasona­ble union with requirements of the group in
ac­tion”.
 TYPES OF INDUSTRIAL DISCIPLINES

• Discipline may be self-imposed or enforced. In the case of self-imposed discipline,

employees regulate themselves and their conduct but, in en­forced discipline, regulation
comes from the top.

• Industrial Discipline is of two types:

• 1. Positive
• 2. Negative

• Disciplinary problems may be classified on the basis of the severity of the consequences which flow
from them. They are generally divided into three categories. They are:
• Minor Infractions,
• Major Infractions, and
• Intolerable Offenses.
 7 IMPORTANT PRINCIPLES FOR MAINTENANCE OF DISCIPLINE

• (a) As far as is possible, all the rules should be formed in cooperation or collaboration with the representatives of
employees.

• (b) All the rules should be appraised at frequent or regular intervals to ensure that they are and continue to be, appropri ­ate,
sensible and useful.

• (c) Rules should be uniformly enforced if they are to be effective. They must be applied without exception.

• (d) Penalties for any violation of any rule should be clearly stated in advance.

• (e) Extreme caution should be exercised to ensure that infringe­ments are not encouraged.

• (f) If violations of a particular rule are fairly frequent; the circumstances surrounding them should be carefully investi ­gated
and studied in order to discover the cause or causes of such violation.

• (g) Define or precise provisions for appeal or review of all disci­plinary actions should be expressly mentioned in the
employee’s handbook.
DETERMINANTS OF INDUSTRIAL DISCIPLINE

• Rules and performance criterion

• Documentation of the facts
• Centralisation of the discipline
• Impersonal and progressive discipline
• Should be fair and fast action
• Flexible and consistent
• Review and follow up
• Understanding of rules
• Documentation of misconduct
• Properly defined procedure
• Action to be taken tactfully
• (a) Issuing a letter or a charge sheet incorporating charges of misconduct or indiscipline
and asking for explanation.

• (b) getting the answer for the letter of charge served there is consideration of explanation

• (c) Issue of show cause Notice – is done by the manager when he / she believe that there is
sufficient prima facie evidence of employee’s misconduct.

• (d) Notice of Enquiry is served when sufficient misconduct is observed. This notice is
served, indicating the name of the enquiry officer / time date and place of enquiry etc.
• (e) Holding Enquiry – This is in conformity with natural justice i.e. the employee must be given
an opportunity of being heard. When this enquiry process is over, the findings of the same are
recorded, the enquiry officer suggests, the nature of disciplinary action to be taken.

• (f) Making final order of punishment – When the misconduct is proved then on deciding the
nature of disciplinary action, employee’s previous record / presents / effect of disciplinary action
on other employees etc. have to be considered.

• (g) Appeal against the order of the Enquiry Officer. Where the employee feels that the enquiry
conducted was not proper and action taken is unjustified he / she is given the chance to make
appeal

• (h) Follow up-After taking the disciplinary action, a proper follow up action has to be taken.
 INDUSTRIAL DISCIPLINE – CAUSES OF INDISCIPLINE IN INDUSTRIES

• Indiscipline breeds mainly amidst managerial faults and lapses.

• The lapses are:

• (1) Arbitrary disciplinary measures taken by the managerial staff

• (2) Deferring or neglecting the settlement of employee grievances
• (3) Favouritism and nepotism in promotions and placements
• (4) Too much bossing temperament of the management staff
• (5) Commu­nication gap between the management and the or­dinary staff
• (6) Lack of appropriate supervision at the operating level
• (7) Use of ‘secret police’ meth­od to collect information
• (8) Provocation by union leaders
• (9) Factionalism
• (10) Personal animosity and jealousy, and
• (11) Policy of ‘divide and rule’.
THE MAINTENANCE OF INDUSTRIAL DISCIPLINE
• Varied are the ways that can be adopted, but a few of them are outlined below:

• 1) Workers are to be consulted while framing rules and regulations.

• 2) Rules and regulations should be properly framed.
• 3) There should not be any communication gap between the man­agement and the workers.
• 4) New workers should be given proper orientation.
• 5) Where necessary, charts, graphs and other methods should be used so that the workers may
understand them.
• 6) Penalty for breaking rules should be used only where it is abso­lutely necessary.
• 7) Victimization should not be the aim of punishment.
• 8) Favoritism, nepotism and casteism should be avoided.
• 9) Managerial staff should never be breakers of law which they themselves have framed for
enforcing discipline.
• 10) Code of conduct or discipline should be framed and followed
• 11) A disciplinary committee should be formed.
• 12) A suitable machinery should be set up to listen to the appeals made by the aggrieved party.
STEPS MAY BE TAKEN FOR DISCIPLINARY ACTION:

• steps may be taken for disciplinary action:

• (a) Preliminary investigation,

• (b) An informal, friendly talk,
• (c) An oral warning or reprimand,
• (d) A written or official warning, and
• (e) A graduated series of penalties such as disciplinary lay-off, demotional
downgrading or transfer and — as a last resort — discharge.
INDUSTRIAL GRIEVANCE

• According to Michael J. Jucius, Grievance may be defined as “any discontent or dissatisfaction,

whether expressed or not, 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.”

• According to ILO (The International Labor Organization), grievance may be defined as “a

complaint of one or more workers in respect of wages, allowances, conditions of work and
interpretation of service stipulation, covering such areas as overtime, leave, transfer, promotion,
seniority, job assignment and termination of service.”

• According to Kerth Davis, grievance may be defined as “any real or imagined feeling of
personal injustice which an employee has concerning his employment relationship.”
1) Factual : When the employee is dis-satisfied due to some legitimate or genuine reason like not
fulfilling any factual needs. The grievance is regarded as factual.

• 2. Imaginary: When an employee is dissatisfied with his employment because

of a wrong perception, wrong attitude or wrong information, it gives rise to
imaginary grievance. Though for such case the management is not liable but
still the responsibility to resolve the problem rests with it.

• 3. Disguised: The dissatisfaction among employees in such case may be due to

the reasons that are not known to the employees themselves. This
dissatisfaction may be due to the pressure from other directions like family,
friends, neighbors etc. The manager himself has to detect such grievances and
resolve them through counseling the related employee.
CAUSES OF INDUSTRIAL GRIEVANCE
• (i) Promotion, demotion and discharge policies.
• (ii) Leave, overtime policies.
• (iii) Improper placements or wage payments.
• (iv) Unscheduled changes.
• (v) Lack or excess of discipline.
• (v) Seniority or transfer policies.
• (vi) Unfavourable working conditions (insufficient ventilation, non-availability of tools,
machines or equipment etc.).
• (vii) Violation of organization’s rules.
• (viii) Management’s hostility towards labor union.
• (ix) Dissatisfactory supervision style (victimization or favoritism).
• (x) Violation of Central or State Laws. Past practices of the organization.
• ( (xi) Inadequate safety, health and welfare amenities.
THERE ARE FOUR MAIN WAYS OF DISCOVERING GRIEVANCES IN ORDER TO
NIP THE EVIL IN THE BUD:

• i) Suggestion Boxes:
• Employees are encouraged to bring to the mind of management, their complaints and
suggestions. They are directed to do so without signing their complaints in order to reduce
their insecurity or fear of being ridiculed or punished.

• (ii) Exit Interviews:

• The employees quitting the organization due to better prospects elsewhere or any grievance
are interviewed in order to gain information about their reasons for leaving the organization.

• (iii) Opinion Surveys:

• Through periodical interviews and group discussions, vital information can be gathered
about employee dissatisfaction.
• (i)Step ladder policy:
• Under this policy, the aggrieved employee has to follow a step by step procedure for getting his grievance
redressed. In this procedure, whenever an employee is confronted with a grievance, he presents his problem to
his immediate supervisor. If the employee is not satisfied with superior’s decision, then he discusses his
grievance with the departmental head. The departmental head discusses the problem with joint grievance
committees to find a solution. However, if the committee also fails to redress the grievance, then it may be
referred to chief executive. If the chief executive also fails to redress the grievance, then such a grievance is
referred to voluntary arbitration where the award of arbitrator is binding on both the parties.

• (ii) Open Door Policy:

• Mostly practical only in case of small organization this policy encourages the employees to approach the
management directly in case they have a grievance. Due to lack of time for such hearings, this method is not
very practical for the large organizations.
 GRIEVANCE PROCEDURE IN INDIAN INDUSTRY

• The 15th session of Indian Labor Conference held in 1957 emphasized the need of an established
grievance procedure for the country which would be acceptable to unions as well as to management.

• In the 16th session of Indian Labor Conference, a model for grievance procedure was drawn up.
This model helps in creation of grievance machinery. According to it, workers’ representatives are to
be elected for a department or their union is to nominate them. Management has to specify the
persons in each department who are to be approached first and the departmental heads who are
supposed to be approached in the second step.

• The Model Grievance Procedure specifies the details of all the steps that are to be followed while
redressing grievances. These steps are:
 HOW SHOULD I HANDLE A GRIEVANCE? : PRACTICAL TIPS FOR MEDIATION

• 1. Deal with the grievance promptly:

• If it looks like you are avoiding discussing the matter, unnecessary anxieties can occur. Initiate
discussion quickly and investigate all the facts. Double-check them.

• 2. Be accessible:
• Make sure your employees know how to use the procedures. Encourage complaints! Seeing the
grievance procedure working effectively is the best advertisement you can have for resolving
workplace grievances.

• 3. Informality:
• Discussions should be held in a non-threatening atmosphere. Verbal is better than written. No one
should receive a printed form letter in response to a problem. Remember, when such a letter is
perceived as “legal”, your employee may feel they need “legal” assistance.
• 4. Be consistent: Having policies and procedures in place means that all employees are
treated in the same way.

• 5. Admit errors: If you have acted incorrectly or inappropriately – say so! Then fix the
problem.

• 6. Closure: Decide your response/action and give a full explanation. This allows the matter
to be finalised.

• 7. Learn from it: The resolution of this grievance should give you practical insight in how
to deal with this situation (and possibly others) in the future.