Grievance is any discontent or dissatisfaction that affects organizational

performance. As such it can be stated or unvoiced, written or oral, legitimate or

ridiculous. If the dissatisfaction of employees goes unattended or the
conditions causing it are not corrected, the irritation is likely to increase and
lead to unfavorable attitude towards the management and unhealthy relations
in the organization.
The formal mechanism for dealing with such workers dissatisfaction is
called grievance procedure. All companies whether unionized or not should
have established and known grievance methods of processing grievances. The
primary value of grievance procedure is that it can assist in minimizing
discontent and dissatisfaction that may have adverse effects upon co-operation
and productivity. A grievance procedure is necessary in large organization
which has numerous personnel and many levels with the result that the
manager is unable to keep a check on each individual, or be involved in every
aspect of working of the small organization.
The usual steps in grievance procedure are
1. Conference among the aggrieved employee, the supervisor, and the union
steward.
2. Conference between middle management and middle union leadership.
3. Conference between top management and top union leadership.
4. Arbitration.
There may be variations in the procedures followed for resolving employee
grievances. Variations may result from such factors as organizational or
decision-making structures or size of the plant or company. Large organizations
do tend to have formal grievance procedures involving succession of steps.

Causes for Grievance

Grievance may arise due to the following reasons :
1. Grievance arising out of working condition:

Poor physical work of work place.

Very tight production standards.
Non availability of proper tools and machines.
Unplanned changes in schedules and procedures.
Failure to maintain proper discipline.
Mismatch of the worker with the job.
Poor relationship with the supervisor.

2. Grievance arising from Management policy:

Wages rate and method of wage payment.

Overtime and incentive schemes.
Seniority.
Transfers.
Promotion, demotion and discharge.
Lack of opportunities for career growth.
Penalties imposed for misconduct.
Leave.
Hostility towards trade unions.

3. Grievance arising from Alleged Violation of:

The collective bargaining agreement.

Company rules and regulations.

Past practice.

Central or State Laws.

Responsibility of management.
4.

Grievance arising out of Personal Maladjustment.

Over-ambition.
Excessive self esteem.
Impractical attitude to life.

EMPLOYEE GRIEVANCE

Every employee has certain expectations, which he thinks must be

fulfilled by the organization he is working for. When the organization fails to do
this, he develops a feeling of discontent or dissatisfaction. When an employee
feels that something is unfair in the organization, he is said to have a
grievance.
According to Julius,
a grievance is any discontent or dissatisfaction, whether expressed or
not, whether valid or not, arising out of anything connected with the
company which an employee thinks, believes or, even feels to be unfair,
unjust or inequitable.

The best approach towards grievance is to anticipate them and take steps to
tackle them before the grievances assume dangerous proportions. Any

ordinary manager redresses grievances as and when they arise. An excellent

manager

anticipates

and

prevents

them.

Managers

can

know

and

understand grievance with the help of the following methods:

1. Exit

Interview.

An interview of every employee who quits the

organization can reveal employee grievances. Most of the employees quit

the company due to some dissatisfaction. Great amount of care and
empathy is necessary for a successful exist interview.
2. Opinion Surveys. A survey may be conducted to elicit the opinion of
employees regarding the organisation and its management. Group
meetings, periodical interviews with workers and collective bargaining
sessions are also helpful in knowing employee discontent before it
becomes a grievance.

3. Gripe Boxes.

In these boxes employees can drop there anonymous

complaints. There are different from the suggestions boxes in which

employees drop their suggestion with their names written on them.
4. Open Door Policy. It implies a general invitation to the employees to
informally drop in the managers room any time and talk over their
grievances. This policy is useful in keeping touch with employees
feelings. But it suffers from the following limitations:
(a) This policy is workable only in very small organizations. In big
organizations, top managers do not have the time to meet the large
numbers of employees daily.
(b) Under this policy the front line superior is bypassed. He should first of
all know the grievance of his subordinate.

(c) This policy does not permit the top management to assess a superiors
skill in handling grievance.
(d) Top management is not familiar with the work situation in which the
grievance

developed.

It

cannot,

therefore,

correctly

evaluate

the

information provided by the aggrieved employee.

(e) Lower level employees hesitate to enter the room of a top manager and
speak freely.
In large organization, management by, walking around might be preferable
to open door policy. In this system the managers walks through the
employees, observes them and if necessary listen to their problems.

How to handle a grievance?

Do

Investigate and handle each and every case as though it may

eventually result in an arbitration hearing.

Talk with the employee about his or her grievance; give the person a

good and full hearing.

Require the union to identify specific contractual provisions allegedly

violated.
Comply with the contractual time limits of the company for handling

the grievance.
Visit the work area of the grievance.
Determine whether there were any witnesses.
Examine the grievants personnel records.
Treat the union representative as your equal.
Hold your grievance discussion privately.
Fully inform your own supervisor of grievance matters.

Dont

Discuss the case with the union steward alone- the grievant should

definitely by there.
Make arrangements with individual employees that are inconsistent with

the labour agreement.

Hold back the remedy if the company is wrong.
Admit to the binding effect of a past practice.
Relinquish to the union your rights as a manager.
Settle grievance in the basis of what is fair. Instead, stick of the labour

agreement, which should be your only standard.

Bargain over items not covered by the contract.
Treat as subject to arbitration claims demanding the discipline or

discharge of managers.
Give long, written grievance answers.
Trade a grievance settlement for a grievance withdrawl.
Deny grievances on the premise that your hands have been tied by

management.
Agree to informal amendments in the contract.

PROCEDURE OF REDRESSAL OF GRIEVANCE

Arbitration

Top Management

Top Union Leaders

Middle Management

Middle level Union

Leaders

Front-Line Supervisors

Union Representative

Aggrieved
Employee

Grievance Redressal Procedure

Every organization requires a permanent procedure for handling employee

grievance. Grievance handling procedure is a formal process of settling
grievance and it usually consists of a number of steps arranged in a hierarchy.
The number of these steps may vary with size of the organization. In small
organizations, grievance procedure may consist of only two steps while in big
organizations there may be five or six steps.
As shown in the figure, the front line supervisor is given the first opportunity to
handle grievances. If the company is unionized, a representative of the trade
union also joins the supervisor in handling the grievance. This step is essential
for preserving the supervisors authority. But all grievances cannot be settled
here because they may be beyond the authority and competence of the
supervisor. In the second step, the human resource officer or some middle level
executive along with a high level union officer attempt to tackle the grievance.
In the third step, the top management and top union leader sit together to
settle grievances involving companywide issues. If the grievance remains
unsettled it is referred to an outside arbitrator for redressal.
Advantage of a Grievance Procedure
Grievances are natural in any organization. These should be solved as early as
possible; otherwise they can create serious problems for the organizations, the

industry and society. A systematic procedure should, therefore, be developed to

settle all grievances. Such a procedure provides the following benefits:

It brings grievances into the open so that management can know them

and take necessary action to settle them.

It helps in preventing grievances from assuming dangerous proportion.
Management can solve a grievance before it becomes a dispute. It is an

orderly and expeditious means for redressal of grievances.

It enables the management to know the attitudes and feelings of

employee concerning the policies, rules and practices of the organization.

It provides the workers a formal opportunity for expressing their fears,

anxiety and dissatisfaction.

Such release of emotions helps to improve the morale and productivity of

employees.
It helps to maintain cordial relations in the industry. It brings uniformity

in the handling of grievances.

It also stimulates confidence in employees and builds a sense of security

among them.
It enables both the parties to settle the grievances to their mutual

satisfaction.
It serves as a check upon arbitrary and biased action on the part of

management.
Managers know that their actions can be reviewed and challenged and,
therefore, become more careful.

Essentials of a Sound Grievance Procedure

1. Legal Sanctity. The procedure should be in conformity with the existing

law. It should be designed to supplement the statutory provisions.
Wherever possible, the procedure should make use of the machinery
provided under legislation. The procedure may be incorporated in the
standing orders or collective bargaining agreement of the organization.
2. Acceptability. The grievance procedure must be acceptable to all and
should, therefore

be developed with mutual consultation among

management, workers and the union. In order to be generally acceptable,

the procedure must ensure:
(a) A sense of fair play and justice to workers;
(b) Reasonable exercise of authority to managers; and
(c) Reasonable participation to the union.

3. Promptness. The grievance procedure must aim at speedy redressal of

grievances. This can be ensured in the following ways:
(a) As far as possible the grievance should be settled at the lowest level;
(b) There should be only one appeal;
(c) Time limits should be prescribed and rigidly enforced at each level;
(d) Different

types

of grievances may be referred

to appropriate

authorities.

4. Simplicity. The procedure should consist of as few steps as possible.

Channels for handling grievances should be carefully developed.

Employees must know the officers to be contacted at each level.

Information about the procedure should be communicated to the
employees.

5. Training. Supervisors and unions representatives should be given

training in grievance handling. This will help to ensure effective working
of the grievance procedure.

6. Follow-up. The working of the grievance procedure should be reviewed at

periodical intervals. Necessary improvements should be made to make
the procedure more effective.

Grievance Redressal in Indian Industry

In Indian industry, adequate attention has not been paid to the settlement of
grievances, legislative framework only indirectly deals with the redressal of
individual grievances. It consist of:

1. The Industrial Employment (Standing Orders) Act, 1946. It provides

that every establishment employing 100 or more workers should frame
standing orders which should contain, among other matters, provisions
for means of redressing the workers against unfair treatment or wrongful
exactions by the employer or his agents or servants.
2. The Factories Act, 1948. It provides for the appointment of welfare
officers in every factory wherein 500 or more workers are ordinary
employed. These officers are generally entrusted with the task of dealing
with grievances and complaints.
3. The Industrial dispute Act, 1947. This law provides:

(i)

The employer in relation to every industrial establishment in which

fifty or more workmen employed shall provide for a Grievance
settlement Authority for the settlement
connected

with

an

industrial

of industrial disputes

workman

employed

in

the

establishment. The provision of this Authority shall be in accordance

with rules made in that behalf.
(ii)

Where an industrial dispute connected with an individual

workman arises in an establishment referred to above, a workman or
any trade union of workmen of which such workmen is a member may
refer such dispute to the Grievance settlement Authority for
settlement.

(iii)

The Grievance settlement Authority shall follow such procedure and

complete its proceedings within such period as may be prescribed.

(iv)

No reference shall be made to Boards, Courts or Tribunals of any

dispute referred in this section unless such dispute has been referred
to the Grievance settlement Authority concerned and the decision of
the authority is not acceptable to any of the parties to dispute.

Guidelines

When processing grievances, there are several important guidelines to

consider:

Check the grievants title and employment status to determine if he / she

are included in a union eligible classification.

Note the supervisors respondent

obligation under the grievance

procedure.

Review the requested solution to the grievance. Determine if the relief

sought is beyond a supervisors authority to grant.

Review all policies or other information related to the grievance.

Conduct a thorough investigation of the allegations.

Prepare a written response including the reason for the decision and
provide a copy to the grievant.

Grievance materials should be maintained in a separate file from either

personnel files or records.

Precautions and Prescriptions

The management should take care of following aspects to develop a culture of
trust and confidence upon the employees.

Always ensure that the managers involved in the grievance handling

procedures have a quiet place to meet with the complainant.

Always ensure that managers have adequate time to be devoted to the

complainant.

Explain manager's role, the policy and the procedures clearly in the
grievance handling procedure.

Fully explaining the situation to the employee to eliminate any

misunderstanding and promote better acceptance of the situation
complained of.

Try to let employee present their issues without prejudging or

commenting.

Do use a positive, friendly ways to resolve the crisis than punitive steps,
which disturb the system.

Do remain calm, cool, collected during the course of the meeting.

Always focus on the subject of the grievance than allied issues.

Don't make threats manage the grievances.

Never make use of allegations against personalities.

Be aware of the staff member's potential concerns to the possible

repercussions of raising a grievance.

Don't become angry, belligerent, or hostile during grievance handling

procedure.

Do listen for the main point of arguments and any possible avenue to
resolve the grievance.

Listen and respond sensitively to any distress exhibited by the employees.

Eliminating the source of the irritation or discomfort being complained

of.

Reassure them that the managers will be acting impartially and that
your hope is to resolve the matter if possible.

Don't "horse trade" or swap one grievance for another (where the union
wins one, management wins one). Each case should be decided on its
merits.

Ensure effective, sensitive and confidential communication between all

involved.

Take all possible steps to ensure that no victimization occurs as a result

of the grievance being raised.

The investigator or decision maker acts impartially, which means they

must exclude themselves if there is any bias or conflict of interest.

All parties are heard and those who have had complaints made against
others are given an opportunity to respond.

Try to look upon the problem on different angles for appropriate

understanding.

Ensuring that there is proper investigation of the facts and figures

related the problem under concern.

Ask the staff member their preferred resolution option, although it is

important to make it clear that this may not be a possible outcome.

Be aware of the limits of authority of the person who involved in the

grievance handling procedures.

OBJECTIVES OF THE STUDY

SCOPE OF THE STUDY

OBJECTIVES OF THE STUDY

To identify whether the employees are aware of the grievance handling

mechanism.
To identify whether the grievance handling system leads to a favorable
attitude towards the management
To identify that the grievance handling system leads to a mutual
understanding between workers and the management
To know the level of satisfaction towards the grievance handling
procedure of the organization
To identify the factors influencing the effectiveness of
handling in the organization

the grievance

SCOPE OF THE STUDY

The project throws light on need for Grievance handling mechanism and
this study facilitates the management for further improvement on the
same.

This study will be useful when similar kind of research is undertaken.

RESEARCH METHODOLOGY

Research

M et h o d o l o g y,

fo r

st u d y

l i ke

this

r e s e a r ch

p r o j e c t i s a m o st i mp o r t a n t p a r t . T h e m et h o d o f st u d y a d o pt e d
by m e i s t ot a l l y i s t o i n c r e a s e & t o ga t h e r t h e m o r e i n fo r m a t i o n
r e ga r d i n g t h i s r e s e a r ch .

T h e m a j o r e mp h a s i s i n s u ch st u d i e s i s o n t h e d i s c o ve r y o f
t h e i d e a s & f r u i t f u l r e l e va n t i n fo r m a t i o n . A s s u c h t h e r e s e a r ch
d e s i g n a p p r o p r i a t e fo r s u ch st u d i e s m u st b e fl e x i b l e e n o u g h t o
p r ov i d e

oppor tunity

fo r

considering

d i ff e r e n t

aspects

of

because

it

p r o b l e m u n d e r st u d y.

METHODS OF DATA COLLECTION:

(A) PRIMARY DATA:

S u r vey

m et h o d

- - T h i s m et h o d

was

a d o pt e d

h e l p e d i n s e c u r i n g d et a i l i n fo r m a t i o n f r o m a s a mp l e o f
respondents.

The

i n fo r m a t i o n

r e c e i ve d

from

the

r e s p o n d e n t s i s r e c o r d e d o n a fo r m c a l l e d t h e q u e st i o n n a i r e .
This

is

only

m et h o d

to

measure

attitude

&

m ot i va t i o n

d i r e c t l y.
O p e n f r a m e d d i s c u s s i o n w i t h e mp l oye e s .
B ) S E C O N D A R Y D ATA :
I h ave a l s o u s e d t h e s e c o n d a r y d a t a , w h i ch i n c l u d e d t h e
w r i t t e n d o c u m e n t o f t h e m a ny b a n k s .
INTERNET
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BOOKS
T h e d a t a c o l l e c t e d f r o m t h e a b ove m e n t i o n e d s o u r c e s
helped

me

in

g et t i n g

G R I E VA N C E H A N D L I N G .

i n fo r m a t i o n

about

the

E M P L OY E E

SAMPLING PL AN:
Sample Design
Sample Element

: Employees at SYNDICATE BANK.

Sample Size

: 35 samples

Sample Test

: Percentage Method

Sample Media

: Questionnaire

Sampling Method

: Simple Random Sampling