Why is Employee Grievance Handling Important?

Explore effective employee grievance handling strategies that ensure a healthy work environment. This comprehensive guide covers best practices, features of effective procedures, objectives, and the importance of timely grievance resolution. Learn how to foster open communication, maintain morale, and enhance organizational productivity through proper grievance management.

Employee Grievance Handling: Strategies for Success

What are the Best Practices for Employee Grievance Handling? This article provides a comprehensive overview of employee grievance handling, a critical aspect of maintaining a healthy work environment. Employers frequently face various types of grievances from employees, ranging from real to perceived, valid to baseless. These grievances can be directed at employers, supervisors, or even co-workers.

1. Introduction to Employee Grievance Handling

Employers often receive numerous grievances from employees daily. These complaints, whether real or imaginary, valid or invalid, can target various individuals within the organization. HR managers are responsible for investigating these grievances objectively and unemotionally.

The “Hawthorne Studies” highlighted the importance of allowing employees to express their grievances freely, with management listening patiently and without judgment. Dismissing issues as trivial can lead to larger problems later. Organizations that empower employees to voice concerns effectively foster a healthy work climate.

2. Meaning and Definition of Employee Grievance Handling

Grievances handling are employee complaints against employers concerning issues such as wages, working conditions, promotions, transfers, or unfair treatment. These complaints, if left unaddressed, can escalate. An HR manager’s role is to identify and resolve them to maintain harmonious industrial relations.

Definitions:

• Broadly: Any discontent or dissatisfaction (expressed or unexpressed, valid or invalid) connected with the company that an employee perceives as unfair, unjust, or inequitable, and which affects performance.
• Pigors and Myers: Distinguish between dissatisfaction (anything that disturbs an employee), complaint (dissatisfaction orally communicated to another employee), and grievance (work-related dissatisfaction brought to management’s attention).
• Dale S. Beach: “Any dissatisfaction or feeling of injustice in connection with one’s employment situation that is brought to the attention of management.”
• Richard P. Calhoon: “Anything that an employee thinks or feels is wrong, and is generally accompanied by an actively disturbing feeling.”
• Jucius: “…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.”
• ILO: A complaint of one or more workers regarding wages, allowances, working conditions, or interpretation of service conditions (e.g., overtime, leave, transfer, promotion, termination).
• National Commission on Labour: Complaints affecting one or more individual workers concerning wage payments, overtime, leave, transfer, promotion, seniority, work assignment, and discharges constitute grievances.

Complaint vs. Grievance: A complaint is a minor dissatisfaction, often expressed informally. It becomes a grievance when the employee feels an injustice has occurred and the complaint is ignored. Grievances are always expressed, either verbally or in writing. When grievances become general claims by a union or a large group of workers, they typically fall under collective bargaining rather than individual grievance procedures.

3. Features of Effective Grievance Handling (Torrington & Hall)

According to Torrington & Hall, a good grievance handling procedure possesses four key features:

1. Fairness: The procedure must be perceived as just and impartial to maintain its credibility. It should adhere to principles of natural justice, similar to disciplinary procedures.
2. Facilities for Representation: Employees should have the option of representation, especially if they lack confidence in addressing management alone. However, this can sometimes lead to defensive management attitudes.
3. Procedural Steps: The process should be limited to a maximum of three steps to ensure prompt resolution and prevent delays that can undermine the procedure’s effectiveness.
4. Promptness: Timely action is crucial to avoid employee bitterness and frustration caused by delays.

4. Objectives of Grievance Handling

The main objectives of grievance handling are:

1. To provide an avenue for employees to express their grievances.
2. To clarify the exact nature of the grievance.
3. To investigate the underlying reasons for dissatisfaction.
4. To achieve a swift resolution to the problem whenever possible.
5. To implement appropriate actions and ensure that commitments are honored.
6. To inform employees of their right to escalate the grievance if a satisfactory resolution is not reached.

5. Successful Prerequisites for Grievance Handling

For an effective grievance handling system, the following prerequisites are essential:

1. Conformity with Legislation: The procedure must align with existing labor laws and regulations.
2. Acceptability: It should be developed through mutual consultation and be acceptable to management, workers, and labor unions.
3. Simplicity: The procedure should be straightforward, with limited steps to encourage employee participation.
4. Clarity: Each step must be clear and unambiguous, informing employees about who to approach, the required format, and time limits.
5. Promptness: The procedure should ensure speedy redressal to prevent employee frustration.
6. Fact-Based Approach: Grievance handlers must thoroughly investigate facts and maintain proper records, considering economic, psychological, social, and legal aspects.
7. Training: Supervisors and union representatives require proper training for effective grievance handling.
8. Follow-up: The procedure should be periodically reviewed and improved to enhance its effectiveness.

6. Reasons for Employee Grievances

Grievances can stem from various factors:

• Economic: Wages, overtime, bonuses, etc.
• Work Environment: Poor working conditions, substandard equipment, defective tools.
• Poor Quality of Supervision: Perceived favoritism, nepotism, or bias.
• Work Organization: Rigid rules, lack of recognition.

Grievances often arise from inconsistent, unfair, or inflexible managerial policies and practices. Interpersonal conflicts and union tactics to strengthen bargaining power can also contribute. A lack of proper communication between employees and management is another significant cause.

Consequences of Grievances:

• Low morale and commitment
• Loss of interest in work
• Decreased productivity
• Increased waste and costs
• Higher absenteeism
• High employee turnover
• Indiscipline among employees
• Employee unrest

7. Elements of a Sound Grievance Handling Procedure

A well-structured grievance handling procedure is crucial. It provides clear guidelines for managers to resolve grievances effectively. Key elements include:

• Well-defined communication channels.
• A simple and easy-to-understand procedure.
• Clearly defined steps for redressal.
• A logical sequence of steps.
• A favorable and supportive attitude from concerned authorities.
• A fact-based approach to redressal.
• Proper communication of the procedure to all employees and authorities.
• Respect for the decisions of the redressal authority.
• Periodical review of the procedure.

8. Principles of Grievance Handling (Dos and Don’ts)

For effective grievance handling, certain principles and guidelines should be followed:

General Principles:

• Allocate sufficient time for discussions, data collection, and information sharing with employees.
• Management representatives should foster confidence, loyalty, and cooperation through sincere interest and willingness to help.
• A positive and knowledgeable approach from management representatives proves highly effective.
• Consider the long-term and overall organizational impact of grievances, not just immediate or individual effects.

Dos:

1. Investigate every case thoroughly, as if it might lead to arbitration.
2. Engage in open discussions with the employee, providing a full hearing.
3. Require the union to specify alleged contractual violations.
4. Enforce contractual time limits.
5. Adhere to company time limits for grievance handling.
6. Verify compliance with all procedural requirements.
7. Visit the work area where the grievance originated.
8. Identify any witnesses.
9. Thoroughly review and understand relevant contract provisions.
10. Ensure equal treatment of employees.
11. Examine the grievant’s personal record.
12. Review prior grievance records.
13. Evaluate any political implications of the grievance.
14. Allow a full hearing on all issues.
15. Ascertain the relief sought by the union.
16. Treat the union representative as an equal.
17. Command the respect of the union representative.
18. Conduct grievance discussions privately.
19. Extend the grievance process to non-union members.
20. Satisfy the union’s right to relevant information.
21. Maintain proper productivity levels during incentive grievance processing.
22. Fully inform your superior of grievance matters.

Don’ts:

1. Discuss the case solely with the union steward; the grievant should always be present.
2. Make agreements with individuals that contradict the labor agreement.
3. Apply the grievance remedy to an improper grievance.
4. Withhold the remedy if the company is in the wrong.
5. Admit the binding effect of a past practice.
6. Relinquish management authority to the union.
7. Settle grievances based solely on “fairness”; adhere to the labor agreement.
8. Make mutual consent agreements regarding future actions.
9. Bargain over issues not covered by the contract.
10. Concede implied limitations on management’s rights.
11. Argue grievance issues outside of work premises.
12. Treat claims demanding discipline or discharge of management members as “arbitrable.”
13. Commit the company in areas beyond your responsibility or familiarity.
14. Give away your copy of the written grievance.
15. Discuss grievances of striking employees during an illegal work stoppage.
16. Settle a grievance if you are in doubt.
17. Support another supervisor in a hopeless case.
18. Refer a grievant to a different form of adjudication.
19. Overlook the precedent value of prior grievance settlements.
20. Provide lengthy written grievance answers.
21. Trade a grievance settlement for a withdrawal (or attempt to compensate for a poor decision in one grievance by overly accommodating another).
22. Negate management’s right to establish plant rules.
23. Deny grievances by claiming “your hands have been tied by management.”
24. Agree to informal amendments to the contract.

9. Effects of Grievances

Unresolved grievances lead to employee discontent and dissatisfaction, negatively impacting productivity. An aggrieved employee is unlikely to perform at their best. Therefore, timely grievance redressal is crucial.

Positive Effects of Effective Grievance Handling:

1. Encourages employees to raise concerns without fear.
2. Provides a fair and speedy means of resolving complaints.
3. Prevents minor disagreements from escalating into serious disputes.
4. Saves employers time and money by finding solutions to workplace problems.
5. Helps foster an organizational climate based on openness and trust.
6. Offers a channel for aggrieved employees to express their feelings.
7. Assures impartial handling of grievances.
8. Guarantees the availability of a prompt grievance handling mechanism.
9. Allows employees to release feelings of discontent and dissatisfaction.

10. Importance of Effective Grievance Handling

Any employee discontent or dissatisfaction can significantly harm morale, efficiency, and productivity. Grievances lead to unhappiness, frustration, and indifference, adversely affecting organizational interests. Unaddressed minor grievances can accumulate and erupt into major problems like strikes and lockouts, causing long-term damage.

The Human Resource Manager plays a vital role in grievance redressal, requiring an understanding of the causes of grievances and how to rectify them. Observational skills, attitude surveys, and thorough analysis of grievance patterns help identify and address root causes. HR managers assist top management and line managers in formulating and implementing effective grievance redressal policies and procedures.

The importance of effective grievance handling lies in mitigating its adverse effects: indiscipline, unrest, low productivity, poor quality, increased waste and costs, higher employee turnover, absenteeism, accident-proneness, loss of interest, and lack of morale and commitment. Management must be vigilant for signs of employee dissatisfaction to maintain harmony and productivity.

Benefits of Properly Managed Grievance Handling:

• Relieves employees from mental distress.
• Increases employee satisfaction at work.
• Develops employee interest in their jobs.
• Fosters a sense of belongingness.
• Encourages employee cooperation.
• Prevents numerous labor problems.
• Avoids industrial disputes and accidents.
• Promotes good industrial relations.
• Maintains industrial peace and harmony.
• Improves employee performance.
• Enhances production volume and quality.
• Increases company profitability.
• Boosts the overall effectiveness and market reputation of the company.
• Contributes to employee development, societal well-being, and national economic growth.

11. Merits and Demerits of Grievance Handling

The principles discussed previously for “Do’s and Don’ts” can also be framed as merits and demerits.

Merits (Corresponding to “Dos”):

1. Thorough investigation and handling of each case.
2. Open communication and full hearing for employees.
3. Identification of specific contractual violations by the union.
4. Enforcement of contractual time limits.
5. Compliance with company time limits for grievance handling.
6. Verification of procedural requirement adherence.
7. On-site investigation of the grievance area.
8. Identification of witnesses.
9. Comprehensive examination of relevant contract provisions.
10. Ensuring equal treatment of employees.
11. Review of the grievant’s personal record.
12. Full examination of prior grievance records.
13. Evaluation of political connotations.
14. Permitting a full hearing on issues.
15. Clarifying the relief sought by the union.
16. Treating the union representative as an equal.
17. Commanding respect from the union representative.
18. Holding private grievance discussions.
19. Providing the grievance process to non-union members.
20. Satisfying the union’s right to relevant information.
21. Demanding proper productivity levels during incentive grievance processing.
22. Fully informing superiors about grievance matters.

Demerits (Corresponding to “Don’ts”):

1. Discussing the case with only the union steward.
2. Making agreements with individuals inconsistent with the labor agreement.
3. Applying grievance remedies to improper grievances.
4. Withholding remedies when the company is at fault.
5. Admitting the binding effect of past practices.
6. Relinquishing management authority to the union.
7. Settling grievances based on “fairness” instead of the labor agreement.
8. Making mutual consent agreements for future action.
9. Bargaining over items not covered by the contract.
10. Conceding implied limitations on management’s rights.
11. Arguing grievance issues off work premises.
12. Treating claims demanding discipline or discharge of management as “arbitrable.”
13. Committing the company in areas beyond one’s responsibility or familiarity.
14. Giving away the written grievance copy.
15. Discussing grievances of striking employees during an illegal work stoppage.
16. Settling a grievance when in doubt.
17. Supporting another supervisor in a hopeless case.
18. Referring a grievant to an alternative form of adjudication.
19. Overlooking the precedent value of prior grievance settlements.
20. Giving long written grievance answers.
21. Trading a grievance settlement for a withdrawal (or attempting to compensate for a bad decision).
22. Negating management’s right to promulgate plant rules.
23. Denying grievances by claiming “hands are tied by management.”
24. Agreeing to informal amendments to the contract.

12. Key Points to Remember When Handling a Grievance

1. Treat Every Grievance as Important: Regardless of perceived insignificance, every grievance deserves attention.
2. Avoid Postponement (Unless Necessary): Do not delay addressing grievances in hopes they will resolve themselves. If postponement is necessary due to personal reasons, do so courteously and apologetically, ensuring no distrust or enmity is created.
3. Put Grievances in Writing: To ensure clarity and accuracy, grievances should be documented. As Jucius notes, the roots and future effects of grievances can be complex, and written records aid in effective resolution.
4. Gather Facts and Maintain Records: Management should collect all relevant facts and maintain proper records to demonstrate sincerity and facilitate fair decisions. Records are essential for future reference.
5. Provide Time Off: Workers should be given adequate time to pursue their grievances.
6. Evaluate Solutions Comprehensively: Management should list and evaluate all potential solutions based on their overall impact on the organization, not just immediate or individual effects.
7. Communicate and Act on Decisions: Once a decision is reached, it must be communicated to the employee and acted upon. If the decision is unfavorable, a clear explanation of its legitimate basis should be provided.
8. Follow-Up: Management must follow up to determine if the actions taken have positively impacted the employee’s attitude.

13. Difficulties in Grievance Handling

Common difficulties encountered in grievance handling include:

1. Forming an opinion before gathering all facts.
2. Prematurely stopping the search for facts and drawing conclusions.
3. Failure to maintain proper records, leading to a lack of factual basis.
4. Arbitrary exercise of executive discretion.
5. Incorrectly settling grievances, causing further dissatisfaction.

14. Measures to Improve Grievance Handling

To avoid errors and enhance the grievance procedure, managements should implement the following measures:

1. Foster a helpful attitude and strong management support.
2. Cultivate belief in the procedure’s effectiveness among all stakeholders.
3. Introduce the procedure with the concurrence of employees and trade unions.
4. Maintain simple, fair, and easily understandable procedures.
5. Formulate clear company policies and procedures.
6. Delegate appropriate authority to relevant parties.
7. Ensure the personnel department functions in an advisory capacity.
8. Adopt a fact-oriented and issue-oriented approach, rather than employee-oriented.
9. Respect decisions made at all levels.
10. Provide adequate publicity for the procedure.
11. Periodically evaluate and review the procedure.

15. Legislative Frameworks for Grievance Handling

The Indian Government has established legislative frameworks to ensure grievance settlement in industries:

Prohibits referring disputes to Boards, Courts, or Tribunals unless they have first been referred to the Grievance Settlement Authority and its decision is unacceptable to any party.

The Industrial Employment (Standing Orders) Act, 1946: Mandates that industries employing 100 or more workers frame standing orders, which must include provisions for redressing worker grievances against unfair treatment by employers or their agents.

The Factories Act, 1948: Requires the appointment of welfare officers in factories employing 500 or more workers. These officers are typically responsible for handling grievances and complaints.

The Industrial Disputes Act, 1947: Requires employers in industrial establishments with 50 or more workmen to provide a Grievance Settlement Authority for individual industrial disputes.

Allows a workman or their trade union to refer such disputes to the Grievance Settlement Authority. Stipulates that the Authority must follow prescribed procedures and complete proceedings within a specified period.