Grievance, Discipline & Employee Exit

What is a Grievance? (Concept & Definition)

Grievance is any discontent or dissatisfaction arising out of anything connected with the company that an employee thinks, believes, or feels is unfair, unjust, or inequitable.

It is a feeling of injustice related to one’s employment situation. If not addressed, a grievance turns into a complaint, which can lead to indiscipline and low productivity.

According to the National Commission on Labour:

“Complaints affecting one or more individual workers in respect of their wage payments, overtime, leave, transfer, promotion, seniority, work assignment, and discharges constitute Grievances.”

Causes of Grievance

Grievances usually stem from three main areas:

  1. Working Conditions: Improper job matching, poor conditions, unavailable tools, bad relationships.

  2. Management Policy: Issues with wage payment, leave, overtime, promotion, or transfer.

  3. Personal Reasons: Over-ambition or excessive self-esteem.


Grievance Handling Procedure

An effective procedure is essential for maintaining industrial peace.

Principles of a Good Procedure:

  • Should be dealt with at the lowest level first (immediate superior).

  • Clear line of appeal must be available.

  • Must be resolved speedily.

  • Must be set up with the participation of employees.

The Model Grievance Procedure (India)

Adopted by the Indian Labour Conference (1957), this provides a 5-step time-bound framework:

  1. Step 1: Employee presents grievance verbally to the designated officer. Response required within 48 hours.

  2. Step 2: If unsatisfied, the employee goes to the Department Head. Response required within 3 days.

  3. Step 3: If still unsatisfied, the grievance goes to the Grievance Committee. Recommendation required within 7 days.

  4. Step 4: If the committee is not unanimous, the matter goes to the Manager. Decision required within 3 days.

  5. Step 5: The employee can appeal to the manager for revision (with a union official). Decision within 7 days.

  6. Final Resort: If still unresolved, it may go to Voluntary Arbitration.


What is Discipline? (Meaning & Concept)

Discipline is an approach aimed at instilling orderly behavior and respect for willing obedience to a recognized authority. It is the “employee’s self-control” which motivates them to comply with the organization’s goals and objectives.

In an industrial setting, discipline is crucial for a healthy environment, escalating production, and ensuring smooth functioning.

Key Definitions:

  • Webster’s Dictionary: “Training that corrects, moulds, strengthens or perfects individual behavior.”

  • Dr. Spriegel: “The force that prompts an individual or a group to observe the rules, regulations and procedures which are deemed to be necessary to the attainment of an objective.”

Aspects of Discipline

  1. Negative Aspect: Uses “fear” as a force. If an employee defies rules, strict punishment is levied. This is the traditional concept.

  2. Positive Aspect: Focuses on “self-discipline.” It asserts cooperative efforts and willing approval from employees to abide by the rules. This is the modern, progressive outlook.


Indiscipline and Misconduct

Indiscipline is the non-compliance with formal and informal rules and regulations. It has detrimental effects on morale and the organization.

Misconduct is a specific action or behavior that is prejudicial to the employer’s interests, inconsistent with duties, or unsafe.

Categories of Misconduct:

  1. Minor Contravention: Negligence, minor disobedience (few serious consequences).

  2. Major Contravention: Lying, cheating, stealing (partially hinders work).

  3. Intolerable Offences: Threat to use weapons, drug use, smoking near inflammables (endangers the relationship).

Examples of Misconduct (Model Standing Orders Act, 1946):

  • Willful insubordination or disobedience.

  • Theft, fraud, or dishonesty.

  • Habitual late coming or absence without leave.

  • Taking or giving bribes.

  • Engaging in strikes or inciting others to strike illegally.


McGregor’s Hot Stove Rule

Douglas McGregor gave a model for enforcement of discipline called the “Hot Stove Rule.” It compares disciplinary action to touching a red-hot stove. It has four key characteristics:

  1. Advance Warning: A red-hot stove warns you (“don’t touch me, you will burn”). Similarly, employees must know the rules and the consequences of breaking them beforehand.

  2. Immediate Effect: Touching the stove burns you instantly. Discipline should also be immediate; the penalty must be imposed soon after the violation.

  3. Consistency: Every time you touch the stove, you get burned. Similarly, every time a rule is broken, the penalty must be consistent.

  4. Impersonal Approach: The stove burns everyone who touches it, regardless of who they are. Management should punish the act, not the person, without discrimination or favoritism.


The Disciplinary Action Procedure

Administering discipline requires a fair and systematic process.

  1. Ascertaining the Problem: Look into the violation. Who was involved? What was the gravity of the offence?

  2. Searching for Facts: Thoroughly examine the case and gather evidence. Give the employee a chance to explain (Principles of Natural Justice).

  3. Deciding the Penalty: The punishment should fit the offence and discourage future occurrences.

  4. Application of Penalty: Impose the penalty on the wrongdoer.

  5. Follow-up: Vigilant supervision of the employee to ensure behavior correction.


Code of Discipline in Indian Industry

Adopted by the Indian Labour Conference in 1957, this code lays down principles for maintaining discipline:

  • Voluntary Agreement: It is a state-induced voluntary agreement between unions and management.

  • No Unilateral Action: Both parties must avoid taking action without exploring all avenues of settlement.

  • Existing Machinery: Utilize existing machinery for dispute settlement.

  • No Coercion: Avoid violence, intimidation, or victimization.

  • Recognition: Employers must recognize the majority union.

  • Fairness: Awards and agreements should be implemented promptly.

Objectives of Discipline

  • To obtain willing approval of employees.

  • To ensure uniformity and assurance.

  • To improve quality of production and morale.

  • To generate respect for human relations.


Employee Exit & Exit Interviews

Employee Exit is the separation of an employee from the organization. It can be voluntary or involuntary.

Types of Exit

  1. Resignation: Voluntary termination by the employee.

  2. Retirement: Leaving upon reaching the age of superannuation.

  3. Dismissal: Termination as a punishment for major offences.

  4. Discharge: Permanent separation due to incompetence, health, or redundancy.

  5. Downsizing: Reducing the workforce to cut costs or restructure.

The Exit Interview

This is a meeting between HR and a departing employee.

  • Purpose: To collect honest feedback about the organization’s culture, policies, and reasons for leaving.

  • Benefit: Since there is no pressure, employees reveal true feelings, helping the company improve and reduce future turnover.

For legal dimensions of conflicts, don’t forget to explore Industrial Disputes. Click here to read the full article.