Module – 4

Grievance
“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”.

Characteristics:

I. It may be unvoiced or expressly stated by an employee;

II. It may be written or verbal;
III. It may be valid and legitimate, untrue or completely false, or
ridiculous; and
IV. It may arise out of something that is connected with the
organisation in some way or the other.
Tools which help in discovering the grievances:

1. Exit Interview:
Employees generally quit the organizations due to
dissatisfaction or better prospectors elsewhere. Exit interview,
if conducted effectively, can provide vital information about
employee’s grievances.

2. Gripe Boxes:
These are boxes in which the employees can drop their
anonymous complaints in the organisations about the causes
of dissatisfaction. It is different from the suggestion scheme
system in which employees drop their named suggestions with
an intention to receive rewards.
3. Opinion Surveys:
Group meetings, periodical interviews with employees,
collective bargaining sessions are some other means through
which one can get information about employee’s
dissatisfaction before it turns into a grievance.

4. Open Door Policy:

In this policy no employee is prevented from going to
management directly with his grievance. It is useful in the
case of small organisation but in a large organisation this
would not be possible because the top management may not
have the time to attend to each grievance at a personal level.
5. Grievance Procedure:
It is one of the most important means for employee to express
their dissatisfaction. It also helps to management to keep a
check on relevant diagnostic data on the state of the
organization's health. Thus it is important to have a grievance
procedure to process grievances.
Grievance – Types:

Type # 1. Visible Grievances or Hidden Grievances:

When the grievances are clearly visible to the others is called
visible grievances. But it is not necessary that all times these
are visible then these are called hidden one. It is called hidden
grievances.

Type # 2. Real or Imaginary:

The grievances may be real or imaginary also. These may be
called genuine or imaginary too. When a grievance is due to a
valid reason and related to the terms of employment only. The
management or concerned party responsible for redressing of
grievance is called real, genuine or factual grievance. Second,
imaginary grievance is that when it is there not for any valid
reason. The management is not at fault. It is called imaginary
only.
Type # 3. Expressed or Implied:
There may be expressed or implied grievances. When an
employee felt the grievance and expressed or reports to the
management in written or oral forms, is called express because
it has been made clear. When it is not made clear but from the
situation it can be inferred or judged that there is a grievance.
That type of grievance is called implied grievance.

Type # 4. Oral or Written:

According to the way of expression, the grievances can be oral
or written. When orally it is reported or expressed then it is
called oral grievance. An employee makes a written complaint
then it becomes written grievance. Entirely according to their
expression the grievances are classified.
Type # 5. Disguised Grievances:
Sometime the grievances take place but the employees do not
know the reasons of grievances. The causes of grievances are
unknown. These are called disguised grievances. This type of
grievances take place due to mental pressure or frustration due
to other factors and not related to work.

Type # 6. Individual or Group Grievances:

The grievances may be related to individual employee or a
group of employees. In group we may include team,
department, etc. When an individual is affected then it is called
individual grievance. When a group is affected due to the
grievances and reported then it becomes a group grievance.
Other factors for formation of types are not considered other
than party affected.
Type # 7. Union Grievances:
The union presents the grievances to the management on behalf
of member employees then it becomes union grievance. It is
presented in the interest of everyone in the union and not for
individual employee. When the employees felt that the terms of
employment are violated then union takes the initiative in
reporting of the grievances. The union presents the case for
collective agreements in this case.

Type # 8. Policy Grievances:

When a grievance is related to policy of the company relating to
terms of employment is called policy grievance. The terms of
employment may include appointment, training, compensation,
promotion and transfer, rewards and incentives, bonus,
allowances, etc. When these are violated by the management
and reported by employees’ union then it becomes a policy
grievance.
Grievance – Points to be Kept in Mind while Handling a
Grievance

1. Every grievance must be given due respect and considered

important.
2. A grievance should not be postponed with hope that people
will “see the light” themselves.
3. A grievance should be put in writing.
4. A relevant facts about a grievance should be gathered by
management and their proper records should be maintained.
5. The employee should be given free time off to pursue his
grievance.
6. Management should take a list of all solutions and later
evaluate them one by one in term of their total effect on the
organization.
7. Decision once reached should be communicated to the
employee and acted upon by the management.
8. Follow-up must be done by the management to determine
whether action taken by it has favorably changed the
employee’s attitude or not.
Grievance – Essentials of a Good Grievance
Redressal System: 7 Key Points

A good grievance Redressal system should accommodate the

following essentials:

1. Timely Action – Management should ventilate the grievances

as and when they arise. They should be nipped in the bud. For
this purpose, supervisors should be trained in recognizing and
handling the grievances promptly.
2. Acknowledgement of Grievance – Once the grievance is
filed, management should register it and grievant should be
assured that it would be attended to.
3. Identifying the Problem – The supervisor has to diagnose
the problem.
4. Collecting Facts – Once the problem is figured out, the
supervisor should collect all relevant facts and profile relating
to the grievance.
5. Analyzing the Cause – Supervisor has to get to the root of
the problem. It involves studying various aspects of grievance
like employee’s past history, frequencies of occurrence,
management practices, union practices etc. Thus,
identification of the cause helps the management to take
remedial actions.
6. Taking Decision – Various alternative courses of action are
worked out. These are evaluated in view of their
consequences on the aggrieved employee, the union and the
management. Final decision suited to a given situation is
arrived at.
7. Implementing the Decision – The decision taken should be
communicated to the grievant and implemented by the
authority.
Grievance – Need for a Grievance Procedure

1. Most grievances seriously disturb the employees. This may

affect their morale, productivity and their willingness to
cooperate with the organisation. If an explosive situation
develops, this can be promptly attended to if a grievance
handling procedure is already in existence.

2. It is not possible that all the complaints of the employees

would be settled by first-time supervisors, for these
supervisors may not have had a proper training for the
purpose, and they may lack authority, Moreover, there may
be personality conflicts and other causes as well.
3. It serves as a check on the arbitrary actions of the management
because supervisors know that employees are likely to see to it
that their protest does reach the higher management.

4. It serves as an outlet for employee gripes, discontent and

frustrations. It acts like a pressure valve on a steam boiler. The
employees are entitled to legislative, executive and judicial
protection and they get this protection from the grievance
Redressal procedure, which also acts as a means of upward
communication. The top management becomes increasingly
aware of employee problems, expectations and frustrations. It
becomes sensitive to their needs, and cares for their well-being.
This is why the management, while formulating plans that
might affect the employees for
example, plant expansion or modification, the installation of
labour-saving devices, etc., should take into consideration the
impact that such plans might have on the employees.
5. The management has complete authority to operate the
business as it sees fit – subject, of course, to its legal and
moral obligations and the contracts it has entered into with its
workers or their representative trade union. But if the trade
union or the employees do not like the way the management
functions, they can submit their grievance in accordance with
the procedure laid down for that purpose.
Grievance – Benefits of Grievance Procedure

1. It brings grievance into the open.

2. It encourage solution of problems before they take serious
turn in nature.
3. It helps in preventing future problems.
4. It gives employee’s emotional release for their dissatisfaction.
5. It helps in establishing and maintaining a working relationship
in group.
6. It provides a check and balance on arbitrary management
action.
7. It helps in establishing and maintaining a work culture or way
of life.
Grievance – 3 Major Effects: On Production, Employees and
the Managers
Grievances may assume formidable form if they are not
identified and redressed and may affect adversely the workers,
managers and the organisation.

The effects are following:

Effect # 1. On Production:
Production may be affected as under:
(i) Increase in the cost of production per unit.
(ii) Low quality of productivity.
(iii) Increase in the wastage of material, spoilage/leakage of
machinery.
(iv) Low quality of production.
Effect # 2. On the Employees:
The Grievance if unaddressed tend to affect the employees
in the following conditions:
(i) Reduction in the level of employee morale.
(ii) Reduction the level of commitment, sincerity and
punctuality.
(iii) Increased in the number of accidents.
(iv) Increased rate of absenteeism and turnover.

Effect # 3. On the Managers:

Grievances when unaddressed affect the managers as
under:
(i) Stain in the superior-subordinate relations.
(ii) Rise in indiscipline cases.
(iii) Rise in unrest and thereby machinery to maintain
industrial peace.
(iv) Rise in the degree of supervision, control and follow-up.
Employee Welfare

Employee welfare means anything done for the comfort and

(intellectual or social) improvement of the employees, over and
above the wages paid.
In simple words, it means “the efforts to make life worth living
for workmen.” It includes various services, facilities and
amenities provided to employees for their betterment.

International Labour Organization (ILO) defines welfare as:

’employees’ welfare should be understood to mean such
services, facilities, and amenities which may be estab­lished in or
in the vicinity of undertakings to enable the persons employed in
them to perform their work in healthy and congenial
surroundings, and provided with amenities conducive to the
good health and morale.’
The basic features of employees’ or labour welfare are as
follows:

1. Labour welfare includes various facilities, services and

amenities provided to workers for improving their health,
efficiency, economic betterment and social status.
2. Welfare measures are in addition to regular wages and other
economic benefits available to workers due to legal provisions
and collective bargaining.
3. Labour welfare measures are flexible and ever-changing. New
welfare measures are added to the existing ones from time to
time.
4. Welfare measures may be introduced by the employers,
government, employees or by any social or charitable agency.
5. The purpose of labour welfare is to bring about the
development of the whole personality of the worker to make
him a good worker and a good citizen.
Employee Welfare – Objectives

1. To enhance the level of morale of employees.

2. To create a loyal, contented workforce in organization.
3. To develop a better image of the company in the minds of the
employees.
4. To enable the workers to live comfortably and happily.
5. To develop efficiency of the workers.
6. To reduce influence of trade unions over the workers.
7. To expose philanthropic and benevolent activities of the
company.
8. To make the workers know that the company takes care of
them.
9. To develop positive attitude towards job, company and
management.
10. To reduce tax burden.
11. To develop a feeling of satisfaction of employees with the
company.
12. To develop a sense of belonging to the company.
13. To retain skilled and talented workers.
14. To develop better human relation.
15. To prevent social evils like drinking, gambling through
improvement of working conditions, cultural activities and
social conditions.
Employee Welfare – 2 Types: Statutory and Voluntary
Employee welfare can be divided into two categories, namely:
(1) Statutory, and (2) Voluntary

Type # 1. Statutory:
The government has passed a number of legislations in order
to set minimum stan­dards of safety and welfare for the
employees at their workplace. Provisions have been made for
the welfare facilities such as washing, storing, first-aid
appliances, hours of work, sanitation, etc.

Type # 2. Voluntary:
The employers voluntarily have provided welfare amenities
to the employees besides the statutory facilities. They are
more concerned with the welfare of their employees.
Organizations
such as Godrej and L & T provide adequate transport and similar
other facilities to their employ­ees. Facilities for recreation,
medical treatment, free meals or subsidized meals, schooling
facilities for children, and sports and games are provided by
many organizations.

Organizations have given opportunities to work with flexible

working schedules. It helps to meet business commitments while
at the same time supporting one’s personal life needs.
Organizations also provide medi-claim insurance coverage to
employees for expenses relating to hospitalization due to illness,
disease, and injury. Harassment policies are also made to protect
harassment of any kind to employees.
The voluntary welfare facilities may also classified into those
provided within and outside the factory premises.
A. Welfare and amenities within the factory premises.
B. Welfare and facilities outside the factory premises.

Welfare and amenities within the factory premises include –

1. provision for latrine and urinals,
2. wash­ing and bathing,
3. crèches
4. rest shelters and canteens,
5. arrangement of drinking water,
6. arrangement for prevention of fatigue,
7. administrative arrangement within the plant to look after
welfare,
8. uniforms and protective clothing, and
9. shift allowance.
Welfare and amenities outside the factory premises include –
1. maternity benefit,
2. social insurance,
3. benevolent fund,
4. medical facilities,
5. education facilities,
6. housing facilities,
7. recre­ational facilities,
8. holiday/leave and travel facilities,
9. workers’ cooperatives,
10. other programme for the welfare of women, youth, and
children, and
11. transport to and from the place of work.
Employee Welfare – Benefits

1. Employees would start working sincerely and honestly.

2. It would improve the productivity and efficiency of the
employees.
3. The attachment and belongingness among the employees
would be developed.
4. Employees would be healthy and they would be mentally and
physically fit to perform in the best manner. Thus; it promotes
a healthy work environment.
5. Employees can enjoy stable, developed, dedicated employees,
moreover, employees will work with interest and with full
involvement.
6. Higher Productivity, higher efficiency, promotes health
industrial relations, ultimately in­dustrial peace can be
achieved.
7. Absenteeism, labour turnover such problems of the employees
would not arise in the organisation.
8. Employees would come forward to share additional
responsibilities of the company.
9. It will improve the standard of living of the employees.
10. Work environment, work culture will be developed in the
organisation.
11. It enhances the goodwill and reputation and thereby image of
the company.
12. No chance for industrial dispute in the company. Healthy,
harmonious relation between employer and employees will be
developed.
Number of Welfare Officers:- The occupier of every factory
where 500 or more workers, are employed, shall appoint at least
one Welfare Officer up to 2000 workers and one additional per
every 1000. A Lady Welfare Officer, wherein 500 women
workers are employed.
RESPONSIBILITIES OF WELFARE OFFICERS

1. to establish contacts and hold consultations with a view to

maintaining harmonious relations between the factory
management and workers.

2. to bring to the notice of factory management, the grievances

of workers, individual as well as collective, with a view to
securing their expeditious redress and to act as a Liaison
Officer between the management and labour

3. to study and understand the point of view of labour in order to

help the factory management to shape and formulate labour
policies and to interpret these policies to the workers in
language they can understand
4. to advise on the fulfillment by the concerned departments of the
factory management of obligations statutory or otherwise
concerning the application of the provisions of the Factories
Act, 1948 and the rules made there under and to establish
liaison with the Inspector of Factories, and the medical services
concerning medical examination of employees, health records,
supervision of hazardous jobs, sick visiting and convalescence,
accident prevention and supervision of safety committees,
systematic plant inspection, safety education, investigation of
accidents, maternity benefits and workmen’s compensation;

5. to advise on fulfillment by the management and the concerned

departments of the factory of their obligations, statutory or
otherwise, concerning regulation of working hours, maternity
benefit, compensation for injuries and sickness and other
welfare and social benefit measures ;
6. to advise and assist the management in the fulfillment of its
obligations, statutory or otherwise concerning prevention of
personal injuries and maintaining a safe work environment, in
such factories where a Safety Officer is not required to be
appointed under the enabling provisions under Section 40-B

7. to encourage the foundation of works and joint production

committees, co-operative societies, and welfare committees
and to supervise their work

8. to encourage provision of amenities such as canteens, shelters

for rest, crèches, adequate latrine facilities, water, sickness
and benevolent scheme payments, pension and
superannuation funds, gratuity, payments, granting of loans
and legal advice to workers
9. to help the factory management in regulating the grant of leave
with wages and explain to workers the provisions relating to
leave with wages and other leave privileges and to guide the
workers in the matter of submission of applications for
regulating authorized absence;

10. to advise on provision of welfare facilities such as housing

facilities food-stuffs, social and recreational facilities and
sanitation and on individual personal problems and on the
education of children;

11. to advise the factory management on questions relating to

training of new starters, apprentices, workers on transfer and
promotion, instructors and supervisors; supervision and control
of notice board and information bulletins; to further the
education of workers and encourage their attendance at
technical institutes;
12. to suggest measures which will serve to raise the standard of
living of workers and in general, promote their well being;

13. Welfare Officers not to deal with disciplinary cases or appear

on behalf of the management against workers: – No Welfare
Officer shall deal with any disciplinary case against a worker
or appear before a conciliation office or in a Court or Tribunal
on behalf of the Factory management against any worker or
workers.
THANK YOU