Unit 2: Employee Discipline and Grievance Management (30%)

2.1. Discipline – Meaning,

2.2. Types
2.3. Causes of Indiscipline
2.4. Preventive Measures for Discipline
2.5. Disciplinary Action - Guidelines, Hot Stove Rule, Procedure
2.6. Punishment - Types, Progressive Penal System, Employee’s right to challenge
punishment 2.7. Code of Discipline
2.8. Grievance Management: Meaning,
2.9 Causes of Grievance
2.10 Identification of Grievance
2.9. Grievance procedure
2.10. Features of Good Grievance procedure
 Introduction
No man ever grows until he is disciplined. Discipline is an inevitable correlate of organization. To
be organized means to be disciplined and vice versa. The behavior of an employee is at the root
of all discipline in an organization. Every manager wants this behavior to be in conformity with the
required system which he has prescribed in order to achieve the organizational goals. However,
not infrequently we find employees deviating from systems of behavior which they cannot easily
give up when they enter as members of an organization. It is at that many problems of employer-
employee relations and of individual adjustment arise.

2.1 Meaning
Discipline is the orderly conduct by an employee in an expected manner. It is theforce or fear of a
force that determines an individual or a group from doing things that are detrimental( negatively
affecting) to the accomplishment of group objectives. In other words, discipline is the orderly
conduct by the members of an organisation who adhere to its rules and regulations because they
desire to cooperate harmoniously inforwarding the end which the group has in view.

Good discipline means that employees are willing to abide by company rules and executive orders
and behave in the desired fashion. Discipline implies the absence of chaos, irregularity and
confusion in the behaviour of a worker. According to Calhoon , ‘Discipline is a force that prompts
individuals or groups to observe rules, regulations and procedures which are deemed to be
necessary for the effective functioning of an organisation’.

Violation of rules, regulations, procedure and norms is considered as misconduct, that is, any
act which is inconsistent with the fulfilment of the expressed and implied conditions of service—or
is directly linked with the general relationship of the employer and the employee—has a direct
effect on the contentment or comfort of men at work or has a material bearing on the smooth and
efficient working of the organisation concerned.

Every organisation wants its employees’ behaviour to be in conformity with the required system
which it has prescribed in order to achieve the organisational goals. Thus, in brief, discipline is
orderly conduct by the employee in an expected manner. The purpose of discipline is to
encourage employees to behave sensibly at work, that is, adhere to rules and regulations.
Disciplinary action is called for when an employee violates one of the rules.

Richard D. Calhoon- “Discipline is the force that prompts individuals or groups to observe rules,
regulations, standards and procedures deemed necessary for an organization.” Discipline means
 systematically conducting the business by the organizational members who strictly adhere to the
essential rules and regulations.

2.2 Types of Discipline

Discipline may be of two types positive and negative.

1. Negative or punitive discipline

It is one in which management has to exert pressure or hold out threat by imposing penalties on
wrongdoers.
When this pressure becomes increasingly severe each time a man is disciplined, it is called
“progressive” or “corrective” discipline.

Arguments Against Negative Discipline or Punishment. Many people argue that

punishment should be avoided as a means of trying to Influence Behaviour. Their
objections are as follows

(a) For punishment to be at all effective, there must be continued monitoring or surveillance,
which is a very wasteful use of high- priced managerial time.
(b) Punishment never really extinguishes or eliminates undesirable response tendencies, but only
temporarily suppresses them. These tendencies reappear with full force when the threat of
punishment is removed.
(c) Punishment has undesirable side effects. It may cause resentment and hostility awards the
punisher with motive of trying to “get even” later through sabotage, output restriction, or doing
things that make the punisher “look bad” or cause him inconvenience. The fear associated with the
punishing agent may lead the punished person to avoid his very presence; this, in turn, makes it
more difficult for the managerto play the desired role of coach, teacher, or counsellor. Alternatively,
the reaction to punishment may be more extreme, resulting in generalized inhibition and rigidity or
stereotyped behaviour in the punished person; this can make it more difficult for the person to
learn new behaviour, including very desirable behaviour, or to adjust to change.

2. Positive discipline or ‘self-discipline’ is the best discipline.

This refers to an organizational atmosphere in which subordinates willingly abide by rules, which
they consider fair. The techniques followed by the management to achieve this type of discipline
include positive motivational activities such as praise, participation and incentive pay. Alternatives
to Punishment/ Ways of Positive Discipline Alternatives to punishment in eliminating undesired
behaviour include the following

(a) Extinction. Find out what reinforces the undesired behaviour. For example, the unruly
subordinate may be getting praise and recognition from peers. Then get those peers to co-operate
with you by ignoring the unruly behaviour. When such behaviour is not reinforced, it will eventually
lose strength and extinguish.
(b) Environment Engineering.
Rearrange the features of the environment so that the Stimulus situation does not evoke
the undesired response but some other response. Skinner (1953) tells the story of a
manager who had a traffic problem caused by women hurrying down the corridor as soon
as the end of the workday was signalled. The manager solved his problem by placing wall
mirrors along the corridor. The stimulus situation that had evoked stampeding down the
hallway was transformed into one which encouraged a more leisurely and orderly walk-and-
stop sequence.
(c) Reward.
Reward either desirable or natural behaviour, which is physically incompatible with the
undesired behaviour. If children are rewarded for taking exercise or for performing light
outdoor chores before dinner, they are prevented from excessive snacking and television
watching. (d) Adjustment.
Allow adjustment, development, or maturation to take its course. New or inexperienced
employees make many mistakes and do many wrong things that they will learn to avoid,
given a reasonable period of adjustment punishment may not hasten this process, and it
causes undue anxiety, it canactually retard this process.

Indiscipline
Indiscipline means disorderliness, insubordination and not following the rules and regulations
of an organisation.

Forms of Indiscipline
Indiscipline in the workplace can be direct and noticeable, causing discomfort to managers
and co workers because of its sometimes confrontational or aggressive nature. These
behaviors set a bad example to other workers, undermine the authority of supervisors and
create a sometimes-scary work environment.
 1. 1. Direct Types of Indiscipline in the Workplace
Indiscipline in the workplace can be direct and noticeable, causing discomfort to managers and
co workers because of its sometimes confrontational or aggressive nature. Employees may make
loud, disparaging remarks about supervisors, or saunter into work half an hour late. Other
examples include not calling to report an absence ahead of time, using profane language,
behaving unprofessionally with customers or blatantly defying orders from employers.

These behaviors set a bad example to other workers, undermine the authority of supervisors and
create a sometimes-scary work environment. Don’t be drawn into confrontations with aggressive
employees; document behaviors and then dismiss these problematic workers if appropriate.
Chances are, you don’t want them around.

2. 2. Indirect Types of Indiscipline in the Workplace

Indiscipline in the workplace can also be more indirect and less noticeable but still problematic.
Examples of indirect indiscipline might include working sluggishly to avoid taking on new
assignments, encouraging coworker misconduct with laughter, or agreeing with constructive
criticism but then not applying suggestions to work quality or productivity.
Indirect indiscipline can be tricky in that it’s harder to pinpoint and managers may be reluctant to
intervene for seemingly small problems. These can grow into bigger problems, however.
Managers can avoid ungrounded accusations by first asking employees to explain behaviors.

For example, state, “After our conversation last week I was under the impression that you were
going to try another strategy, but I haven’t noticed any changes. Explain how you’ve incorporated
my suggestions.”

3. 3. Unwitting Indiscipline in the Workplace

Workplace indiscipline can also be unwitting in that employees don’t know or haven’t been
informed of expectations and professional standards. For example, perhaps employees routinely
take personal calls or update social networking accounts on company time because other workers
appear to be doing the same thing. Unless the company handbook prohibits such activities, it may
not be clear to workers that you view this as misconduct. Provide employees with detailed
handbooks outlining discipline expectations, including consequences for infractions. Employee
training and workshops can also emphasize expectations.

4. 4. Approved Indiscipline in the Workplace

Another type of workplace indiscipline includes unwanted activities and behaviors that aren’t
commented upon by managers or supervisors, sending mixed messages to employees about
expectations. For example, perhaps the company handbook clearly states that profane language
and discriminatory comments are prohibited in the workplace. But managers may look the other
way or even participate in conversations grounded in foul language, letting employees know that
this type of misconduct is acceptable in the workplace despite stated company rules.

2.3 Causes of Indiscipline

The important causes of indiscipline are analysed under three heads:
1. Organizational Factors
2. Individual Factors
3. Environmental Factors.

1. Organizational Factors
Where the organization, while hiring the employees, fail to assess the traits of individuals like
attitude, obedience, tolerance and inquisitiveness, it may end up hiring employees who challenge
any decision made by the management. This may breed indiscipline.
1. Lack of code of conduct for employees has potential to disorient them thereby sowing
seeds of indiscipline.
2. Where an employee hired for a job for which he has neither aptitude nor positive attitude, he
is sure to develop ill-feelings. He may find the job uninteresting and do everything to evade
responsibility. 3. Ineffective leadership characterised by authoritarianism and incompetency,
and distrustful relations with employees fuel indiscipline among the employees.
4. Indiscriminate use of penal provisions triggers reactionary group indiscipline.
5. Favouritism and nepotism practiced by supervisorsvitiate discipline.
6. Divisive policies pursued by management and instituting unofficial spy network spoils the
work atmosphere thereby engendering indiscipline.
7. Biased performance evaluation on considerations of caste, creed, colour, gender, religion and
region promotes ill-feeling and a sense of injustice among employees which culminate in
indiscipline. 8. Absence of grievance redressal mechanism frustrates employees thereby
breeding indiscipline among them.

2. Individual Factors
Individual differences caused by education, experience, values, attitudes, beliefs, intelligence,
personality, etc., cause employees to behave differently in an organization. Therefore some
individuals conform to rules and standards of behaviour in much wider context than others.
Individual features that lead to indiscipline behaviour are as follows:
1. Individuals with non-conformist values tend to engage in indisciplined behaviour.
2. Every individual perceives reward and punishment differently and react to it
accordingly. When the reward is not commensurate with his expectation, he may feel
frustrated and indulge in indiscipline. 3. Individuals differ in work ethics. Those with
high ethical values tend to be committed and involved in the jobs while those with
low ethical values show alienation to their jobs and exhibit negative behaviour.

3. Environmental Factors
Since an organization is also one of the members of the society, discipline observed
by the society manifests in organizations. Indiscipline prevailing in family, educational
institutions, political system, religious institutions, break down of social control
mechanism, etc., casts its ugly shadow on the organizational climate.

4. Other Reasons
There are several other reasons responsible for creating indiscipline among
employees. They include wrong delegation of authority, faulty ways of fixing
responsibility and host of social and psychological reasons that are responsible for
indiscipline among employees. The indiscipline results among employees
interrelated and interwoven internal and external causes. These causes can be
finished and very well handled by the effective leadership that suits the requirements
of attainment of organisational goals.

2.4 Preventive Measures

To eliminate this type of indiscipline, apply consistency to discipline guidelines so that
managers, supervisors and employers must adhere to the same expectations as
employees. It is very difficult to lay down exhaustively as to what would constitute
misconduct and indiscipline. It would depend upon the examination of facts. Some of
the acts of misconduct are mentioned in the Model Standing Orders as a part of the
rules made under the Industrial Employment (Standing Orders) Act of 1946.
Non-performance of duty is a serious misconduct, because it is basically inconsistent
with the obligations of employment. Under the act of negligence, an employee fails to
give full care and attention on account of which the work becomes defective, and
production suffers both in quantity and quality. It is a misconduct to cause disorder on
the premises, intimidate, threaten or assault other employees and use abusive
language. Preventing the entry and exist of willing employees and movement of
goods to and from the factory, obstructing the work being carried on, damaging the
property of the employer, indulging in mischief or other objectionable activities,
occupying the employer’s premises or property, go slow, etc. are forms of
misconduct.
Insubordination, assault or threat to superior officers, defamation, making false
complaint, are all acts of indiscipline. Non-performance of work during working office

hours, tampering with official records, and misappropriation of accounts is acts of

indiscipline which are considered to be of serious gravity.
The following are some of the measures taken for maintaining discipline at the
workplace: 1. The rules and regulations for maintaining discipline should be framed
in consultation with the employee’s representatives.
2. Employees should be given a chance to improve their behaviour. The past
offences as far as possible be condoned after some time.
3. Rules should be made known to employees and they should be reminded of those
rules after regular intervals.
4. Rules should not be made rigid but they should change with time and changes in
the working conditions.
5. There should be uniformity in application of rules. Everybody should be treated
equally before rules.
6. 6. Breach of rules by any employee should not be allowed and rules breakers
should be dealt with firmly.

7. 7. It should be remembered that the aim of rules is to prevent indiscipline and not to
cause harassment to the employees.

8. The offences of grave concern should be dealt with firmly by appointing a

committee to enquire thoroughly in the matter. The committee should be un-bias in
its dealings.
9. There must be a provision for appeal and disciplinary action taken should be
reviewed if required.

2.5 Disciplinary Action

While punitive discipline or punishment may sometimes be ineffective in changing

behaviour or may produce unwanted by-products, there is nevertheless considerable
evidence that punishment can be an effective tool under certain conditions.

2.5.1 Essentials of a Good Disciplinary System

1. Knowledge of Rules:
The employee must be informed clearly about what constitutes good
behaviour and the rewards that may emanate from it. All instructions should
 be clear and understandable. It is common sense that an employee will obey

an instruction more readily if he understands it. The supervisor himself must know all the
rules. He cannot effectively communicate with his workers if his own knowledge about
rules is half baked. In fact, he needs to know more than the barest minimum that he
wants his workers to know. This reserve of knowledge is essential in order to be able to
answer several unexpected question from workers. In other works, a supervisor’s span
of knowledge and understanding of rules should be greater than that of his workers. If this is not
so, the supervisor will lose personal prestige both beforehis supervisors and subordinates.

2. Prompt Action:
All violations and misconducts-big and small- should be promptly enquired
into. For example, a supervisor is most unwise to wait until lunch break before
rebuking a worker for arriving late. Beat the iron when it is hot. This is
because when the penalty is imposed immediately following the violation of a
rule the person punished tends to identify the punishment with the act he
committed. Accordingly, the subordinate attempts to avoid the violation in
future. This is called the “law of effect”. The greater the delay the more one
forgets and the more one feels that punishment is not deserved.

3. Fair Action
Promptness of disciplinary action at the cost of its fairness is not proper. An
action in order to be fair must possess the following characteristics
 All violations-big and small-should be duly punished. A violation should not be
overlooked or condoned merely because it is small otherwise this will give an
impression that announced rules are meaningless.
 All individuals-big and small-should receive equal punishment for equal
indiscipline. If a rule is applied to one individual but not to another, the
management is bound to be accused of favouritism.

 Discipline should be uniformly enforced at all times. If management soft-pedals

on taking a disciplinary action when there is shortage of labour and toughens
its policy when labor is plentiful it is acting arbitrarily. Similarly, if the
management overlooks a wrong on one occasion and punishes it on another
occasion it is acting inconsistently. Inconsistent behaviour of management
leads to uncertainty in the minds of subordinates. They simply do not know
 where they stand.

 The alleged violation should be fully inquired into. Making a mistake by hastily
administering a penalty which on the basis of facts collected later on is found
to be uncalled for will mean a permanent destruction of the morale of the
punished worker and general loss of face for the supervisor.

 The employee should always be given an opportunity to explain his action. The
common law principle that an offender is innocent until he is proved guilty
beyond doubt should be followed. The burden of proving the violation always
lies on the management.

4. Well Defined Procedure

The procedure to be followed to reach to a penalty decision should be carefully
laid down. It should include the following steps:
(a) The supervisor must assure himself that some violation of the rules has taken
place.
(b) He should state precisely and objectively the nature of the alleged violation.
(c) He should then proceed to gather full facts about the case and maintain
proper records. Facts will have to be gathered concerning the nature of the
event, the participants and the surrounding circumstances. Extenuating
circumstances such as ill-health, family troubles, etc., should be found out. A
critical analysis should be made of the person’s background such as his past
service record, length of service, local practice, etc. Fact gathering is often a
process of fact-sifting. Opinions should not be mistaken for facts. The methods
used for gathering the fact must not smack of spying and statements should not
be prejudged.
(d) After all the facts have been gathered, thought should be given to the various
types of disciplinary action which can be taken in the case in question. It is
advisable to prepare three separate lists of actions. The first list should
include all types of disciplinary action to make certain that no possibility is
overlooked. The second list should classify penalties according to rank in order
to acquaint the executive with those actions which lie within his command and
those for which he should refer the case to his superiors. The third list should
include only those penalties, which the offence in question specifically calls
for.
 (e) The appropriateness of a disciplinary action should be decided in terms of its
effectiveness in correcting the employee. This is very important because the
purpose of a disciplinary action is to mend (change) an employee and not to
punish him, to help him and not to harm him.
(f) (f) The accused employee should have the right to appeal to higher
authority.

5. Constructive Handling of Disciplinary Action

Disciplinary action should be handled in a constructive manner. It should be
carried out by the immediate line supervisor. This employee should be told not
only the reasons for the action taken against him but also how he can avoid
such penalties in future.

Disciplinary action should be taken in private. By exposing an employee to

public ridicule the supervisor attacks his dignity and social standing. This may
produce an opposite effect on the employee. He may react violently or may
become obstinate to preserve his ego.
It is most unwise for a supervisor to take a general disciplinary action against a
group of subordinates. Disciplinary action is a matter for the individual. It is the
individual who should be held responsible for any wrong. A management
which takes disciplinary action against a group is likely to set off a wave of
unrest associated with falling morale and even the possibility of wildcat strike.
After the disciplinary action has been taken the supervisor must assume a
normal attitude towards the employee. He should revert to his role of a helping

hand-as if nothing has happened. This is possible only when the supervisor
uses an impersonal approach in administering a penalty. He should not
engage in personal ridicule, insult or even criticism. He should avoid getting
into an argument. In short, he must play the role of a judge enforcing the law
with impartiality.

2.5.2 Hot-Stove Rule

This rule, so called by Douglas McGregor, draws an analogy between touching a hot
stove and undergoing discipline. When a person touches a hot stove
1. The burn is immediate.
2. He had warning. Particularly if the stove was red hot he knew what would happen if
he touched it.

3. 3. The effect is consistent. Everyone who touches a red-hot stove would be

burned.

4. 4. The effect is impersonal. A person is burned not because of who he is but

because he touched the hot stove.
5. The effect is commensurate with the gravity of misconduct. A person who
repeatedly touches the hot stove is burnt more than one who touched it only one.

The same should be with discipline. The disciplinary process should begin
immediately after the violation is noticed. It must give a clear warning that so many
penalties would be imposed for a given offence. The same kind of punishment
should be consistently imposed for the same offence. Punishment should be
imposing regardless of status difference. In other words, it should be impersonal in
application. Punishment should be commensurate with the gravity of the offence.
An employee found guilty of an act of minor misconduct like unpunctuality or irregular
attendance should not be awarded the same punishment as may justifiably be
awarded to an employee found guilty of an act of major misconduct like the theft of
employer’s property.

2.5.3 Procedure for Taking Disciplinary Action

The Standing Orders of an organization provides the basis for the procedure of the
same. They should be strictly followed for the punishment. These may be held
invalid if there is any deviation from the laid down procedures.

Whether or not there are Standing Orders the procedure for taking disciplinary action
against workers should be based on the following principles of natural justice

(a) The worker charged should be given an opportunity to present witnesses of his
own choice on whom he relies;
 (b) The worker should be given the right to cross examine
management’s evidence;

(c) (c) The evidence of the management should be taken in

worker’s presence;
(d) No material should be used against the worker without giving him an
opportunity to explain;
(e) The enquiry against the worker should be fair and conducted by an
impartial person; and
(f) The punishment awarded should not be out of proportion to the
misconduct committed.

Following should be the steps for taking disciplinary action

1. Preliminary Investigation
The first and primary step should be to hold a preliminary investigation in order to find
out whether a prima facie case of misconduct exists.

(a) The supervisor must assure himself that some violation of the rules has taken
place.
(b) He should state precisely and objectively the nature of the alleged violation.
(c) He should then proceed to gather full facts about the case and maintain
proper records. Facts will have to be gathered concerning the nature of the
event, the participants and the surrounding circumstances. Extenuating
circumstances such as ill-health, family troubles, etc., should be found out. A critical
analysis should be made of the person’s
background such as his past service record, length of service, local practice, etc. Fact
gathering is often a process of fact-sifting. Opinions should not be mistaken for facts.
The methods used for gathering the fact must not smack of spying and statements
should not be prejudged.
(d) After all the facts have been gathered, thought should be given to the various
types of disciplinary action which can be taken in the case in question. It is
advisable to prepare three separate lists of actions. The first list should
include all types of disciplinary action to make certain that no possibility is
overlooked. The second list should classify penalties according to rank in order
to acquaint the executive with those actions which lie within his command and
those for which he should refer the case to his superiors. The third list should
include only those penalties, which the offence in question specifically calls
for.
(e) The appropriateness of a disciplinary action should be decided in terms of its
effectiveness in correcting the employee. This is very important because the
purpose of a disciplinary action is to mend (change) an employee and not to
punish him, to help him and not to harm him.

2. Issue of a Charge-sheet.
On the prima facie case of misconduct being established the management should
proceed to issue a charge-sheet to the worker. Charge-sheet is not a punishment in
itself. It is merely notice of a charge that the worker is responsible for some
misconduct and that the management wants to know what he has to say about it. It
gives the worker an opportunity to explain his conduct. A charge-sheet is, therefore,
also called a ‘show cause notice’. This fact should be explained to the worker also
who may sometimes refuse to accept the charge-sheet on the ground that he has
not done any wrong.

The following guidelines may be followed in framing the charges

 Each charge must be very clear and precise. It should not be vague.
 There should be a separate charge for each allegation.
 There should be no multiplication of charges for the same allegation.
 Charges must not relate to any matter which has already been decided upon.
On the question whether the proposed punishment should or should not be
mentioned in the charge sheet, there is divergence of opinion among various High
Courts. Chennai, Andhra, Kolkata, Punjab and Haryana High Courts hold the view
that if the proposed punishment is mentioned in the charge-sheet then it amounts to
prejudging the issue and the proceedings are vitiated.

Nevertheless, the Mumbai, Rajasthan and Allahabad High Courts seem to hold the
opposite view. They observe that the mere mention of the proposed punishment
mentioned in the charge- sheet does not vitiate the enquiry. It does not mean that the
employer intended to punish the employee irrespective of the result of the enquiry or
that he formed any opinion against the employee. It rather makes the employee
aware of the seriousness of the charges against him so that he can take proper
defense. To be on the safer side, however, the employer should avoid mentioning
proposed punishment in the charge-sheet.

3. Suspension Pending Enquiry, if Needed

If the nature of misconduct is grave and if it is in the interest of discipline and security
in the establishment, the management may suspend a worker even before the
charge-sheet is issued or an order of suspension may be given to the worker along
with the charge-sheet.

[Under Section 10A of the Industrial Employment (S.O) Act, 1946 the suspended worker is to be paid a
subsistence allowance equal to one- half of his wages for the first ninety days of suspension and
three-fourths of the wages for the remaining period of suspension if the delay in the completion of
disciplinary proceedings against him is not due to his conduct. The Second NCL recommends that the
total period of suspension of a worker should in no case exceed one year.]

4. Notice of Enquiry
On receipt of reply to the charge-sheet, three situations may arise
(i) The worker may admit the charge in an unqualified manner. If so, the employer
can go ahead in awarding the punishment without getting the matter enquired
further,
(ii) The worker may not admit the charge and the charge merits only minor
penalty. In this case also the employer can go ahead in awarding the punishment
without holding further enquiry. (iii) The worker may not admit the charge and the
charge merits major penalty. In this case the employer must hold enquiry to
 (iii) investigate into the charge against the worker. This enquiry is classed
domestic enquiry.

5. Conduct of Enquiry
Proper and sufficient advance notice should be given to the worker indicating the
date, time and venue of the enquiry and name of the enquiry officer so that the
worker may prepare his case. It should also be notified that he should be ready with
oral and documentary evidence on the date of enquiry and bring witnesses to prove
his case.

 This step should deal with three points

 deciding as to who should be the enquiry officer;
 deciding as how to proceed;
 deciding about the order of examining witnesses.
 Standing orders may provide as to who should hold the enquiry. Otherwise, an
assistant manager or labour welfare officer or company’s lawyer or some
outsider may be nominated. It should be remembered that for the purpose of
enquiry, the enquiry officer is a judge. Therefore, it is necessary that he must
be impartial and qualified to act in that capacity. An enquiry officer is
disqualified on any of the following grounds:
 If he is involved in the incident which led to the charge-sheet.
 If he has personal knowledge of the incident or himself gives or collects
evidence for the very enquiry conducted by him or helps others in doing
so.
 If he himself has issued the charge-sheet.
 If he is directly subordinate to the person accused.

 If the accused employee requests for another co-worker to represent and

assist him or her in the conduct of his or her defence, the enquiry officer
should allow this. However, it is management’s discretion to allow or not to
allow the accused worker to be defended by a non-employee official of the
union.

 As regards the order of examining witnesses, first the management witnesses

should be examined in the presence of the accused. Then fair opportunity
 should be given to him to cross examine the management witnesses. Next, he
himself and his witnesses should be examined. They can be cross-examined
by the management.

 If a worker does not turn up for the enquiry without notice or reasonable cause
or refuses to participate or walks out then the enquiry officer may proceed to hold
the enquiry exported.  The person who leads evidence from the management
side is called the Presentation Officer.

6. Recording of Findings by the Enquiry Officer

At the conclusion of the enquiry proceedings the enquiry officer should decide as
to whether the charges made are valid or not along with the reasons for his
findings. As far as possible he should refrain from recommending punishment
and leave it to the decision of the appropriate authority.

7. Awarding Punishment
 This is the task of management. The punishment should be awarded on the
basis of findings of the enquiry, past record of the employee and gravity of
misconduct.
 It should be noted that when a dispute is pending in conciliation, arbitration or
adjudication proceedings the employer has no right to punish a workman for
his misconduct which is connected with the pending dispute. For example, a
workman who has taken part in a gherao in furtherance of some demands
covered by the dispute being guilty of misconduct connected with the
pending dispute but cannot be punished by the authority. Only the authority
before which the proceeding is pending can only take action against him or
her (Sec. 33 of the Industrial Disputes Act).
 In case of ‘protected workmen’, prior permission for dismissal and discharge
is essential even when the misconduct is not connected with the pending
dispute. These protected workmen are trade union office bearers who are
declared as such to save them from being victimized for raising or
conducting the dispute. They are nominated by the unions, and their number
is not to exceed one per cent of the total workforce, subject to the minimum
number of five.

8. Communication of Punishment
The punishment awarded to the accused should be communicated to him
expeditiously. The letter communicating the punishment should contain
 reference to the letter of charges issued to the employee;
  reference to the enquiry;
 reference to the findings of the enquiry;
 decision whether to punish or not;
 date from which the punishment is to be effective

2.6 Kinds of Punishment

For various types of misconduct there are various punishments which are set out
below in the ascending order of their severity.

1. Oral Reprimand
This is the mildest form of disciplinary action in which the superior makes it clear to
his subordinate that he does not approve of the subordinate’s behavior. This
punishment is generally given for some minor offences such as failure to obey safety
rules, smoking in a prohibited area, sleeping on the job or giving sub- standard
performance.
Issue of reprimand does not involve loss of status or wages to the employee and,
therefore, though it amounts to disciplinary action, it is not deemed to be a
substantive punishment.

However, as people invariably value the social approval of their superiors and fellow
beings a reprimand is generally effective in correcting subordinates. However, it
should be used carefully, otherwise it will not produce any effect on the subordinate.
A subordinate who is continually criticized tries to cover up his mistakes, becomes
tense, and loss his sense of security. He does not want to accept responsibility and
on account of low morale commits further mistakes.

2. Written Reprimand
An oral reprimand may not be sufficient in case of habitual misconduct or inefficiency.
In such a situation it is desirable that it is issued in writing and brought on record so
that it may support, if necessary, any substantive punishment that may have to be
given to the employee in future. A written reprimand may state that certain privileges
would be withheld or withdrawn if the subordinate continues with his present
conduct. In some enterprises the records of an employee may be marked and the
employee shown a copy of the notation to serve as a warning. A warning serves to
alter the expectations of an individual by making him aware of the exact nature of
punishment that awaits him following further acts of disobedience. It is not fair for a
superior to warn a subordinate and later punish him more severely than was
expected at the time of the warning.

3. Loss of Privileges
For such offences as delay or leaving work without permission, the employee may be
put to loss of various privileges such as good job assignments, right to select
machine or other equipment and freedom of movement about the workplace or
company.

4. Fines
Fine means a deduction from the remuneration of the employee by way of
punishment. Power to make penal deductions from the remuneration of the
employee is not an implied term of ordinary contract between master and servant
and can be exercised only if especially reserved to the employer under the contract
of employment or a statute.

5. Withholding of Increments
Withholding of annual increment of an employee in a graded scale is a major
punishment and, generally speaking, the acts of misconduct for which this
punishment may be awarded are the same as those for which the extreme
punishment of dismissal may be awarded. The cumulative effect of losing an
increment is considerable. It is equal to the amount of increment times twelve
months times the number of the year of service still remaining.

6. Punitive Suspension
Punitive suspension is different from the suspension pending an enquiry.
Punitive suspension is inflicted on the workman as a punishment for some
misconduct whereas suspension pending an enquiry is only an expedient
action which a manager may find necessary to take following commission of a
grave and serious misconduct.
Under punitive suspension an employee is prohibited from performing the
duties assigned to him and his wages are withheld for so long as the
prohibition subsists. Under suspension pending an enquiry, unless the
conditions of service make a contrary provision, a workman is entitled to
wages for the period of suspension.

7. Demotion
Demotion means reduction of an employee to a lower grade from the one
previously enjoyed by him. According to some writers since demotion implies
condemnation of the employee as being unfit for the position occupied by him it
should not be used as a penalty if the employee is properly qualified for the
present assignment. Demotion should be used only in a case when an employee
does not meet present job requirement or in the event of a cutback in the work
force.

8. Discharge
In common law, if both parties to an agreement have performed what they have
agreed to do, the contract is discharged. Thus, in a contract of service if both
parties have agreed to terminate the contract by giving stipulated amount of
notice or by paying money in lieu thereof the contract of service can be
terminated in the agreed manner for reasons which do not imply any act of
misconduct; for example, an employee may be discharged owing to either
redundancy, or

superannuation or infirmity, etc., in accordance with his contract of service,

without any fault on his part.
However, in the field of industrial jurisprudence the term ‘discharge’ is used to
denote removal of an employee from service by way of punishment. However, no
stigma is attached to the expression ‘discharge’. Hence, it is not a disqualification
for future employment. Discharge should be distinguished from discharge
simplicities which is termination of an employee’s service not necessarily for any
misconduct but for loss of confidence.

9. Dismissal
Also referred to as industrial capital punishment, dismissal is the ultimate
penalty which is rarely resorted to now days. Though discharge and dismissal
both have the same result, namely, the termination of service of the employee,
there are some vital differences between the two.

Difference between Dismissal and Discharge

These are as follows:

1. While dismissal is always a punishment, discharge may or may not be a
punishment.

2. A dismissal is more severe punishment than discharge. There is a stigma

attached to the expression “dismissal” which makes dismissal a disqualification for
future employment. This is not so in the case of discharge.
3. A dismissal is usually summary, that is, immediate action is taken to terminate
the employment contract of the employee without notice. However, in case of
a discharge an agreed amount of notice may have to be given.
4. In cases of dismissal the employee is not usually entitled to provident fund or
gratuity benefits but this is not so in the case of a discharge.
5. Dismissal is rarely inflicted compared to discharge.
The supreme punishment of dismissal is inflicted very rarely. Managers generally try
to avoid it. They very often follow several other means of eliminating a person
without an outright dismissal. These are as follows
(a) The flow of work may be altered so that it goes around the particular employee;
thus he may take hint and submit his resignation.
(b) The job may be abolished and duties scattered about among other employees.
Then after the employee has left the organization, the duties can be reassembled
and a new employee hired to fill the job.
(c) Resignation may be demanded by holding out threat of discharge.
(d) In higher positions, the employee may be ‘kicked upstairs’ and promoted out of
the way; he may be made a special consultant and never consulted. The cost of his
salary may be much less than the loss from retention in his present job.
(e) The employee may be transferred to some other department.

2.7 Code of Discipline

To maintain harmonious relations and promote industrial peace, a Code of Discipline
has been laid down which applies to both public and private sector enterprises. It
specifies various obligations for the management and the workers with the objective
of promoting cooperation between their representatives.

This code of discipline guide the employers and workers to settle disputes making
use of the existing machinery and abstaining from taking direct action was evolved at
the Indian Labour Conference in 1958.

The basic objectives of Code of Discipline are to:

1. Maintain peace and order in industry.

2. Promote constructive criticism at all levels of management and
employment.
3. . Avoid work stoppage in industry.
4. Secure the settlement of disputes and grievances by a mutually
agreed procedure.
5. Avoiding litigation.
6. Facilitate a free growth of trade unions.
7. Eliminate all forms of coercion, intimidation and violations of rules and regulations
governing industrial relations.

The Code is based on the following principles:

1. There should be no strike or lockout without prior notice.
2. No unilateral action should be taken in connection with any
industrial matter.

3. Employees should not follow go slow tactic.

4. No deliberate damage should be caused to a plant or property

5. Acts of violations, intimidation and coercion should not be resorted
6. The existing machinery for the settlement of disputes should be utilized.
7. Actions that disturb cordial relationships should be avoided.

Actions having Mutual Agreement of Management and Union:

To ensure better discipline in industry, management and unions agree on not
indulging into various actions. These actions can be summarized as follows:
1. that there should be no strike or lock-out without prior notice.
2. that no unilateral action should be taken in connection with any industrial matter
and that should be settled at appropriate level.
3. that they will avoid litigation, sit-down and stay-in strikes and lock-outs
4. that neither party will have recourse to coercion, intimidation, victimization or go
-slow tactics. 5. that the existing machinery for settlement of disputes should be
utilized with the utmost efficiency. 6. that they will formulate a mutually agreed
grievance procedure which will ensure a speedy, fair and comprehensive
investigation leading to a time bound settlement.
7. that they will abide by the various stages in the grievance procedure and take no
arbitrary action which would by-pass this procedure
8. that they will promote constructive co-operation between their representatives at all
levels and as between workers themselves

Actions Agreed to by the Management:

1. not to increase workloads unless agreed upon or settled otherwise.
2. not to support or encourage any unfair labor practice such as discrimination and
victimization of any employee.
3. to take prompt action for settlement of grievances and implementation of
settlements, awards, decision and orders.
4. to take appropriate disciplinary action against its officers and members in cases
enquiries reveal that they were responsible for precipitate action by workers leading
to indiscipline

Actions Agreed to by the Union:

1. Abstain from resorting to violent demonstrations.
2. Not to engage in any form of physical duress.
3. To discourage unfair labor practices such as negligence of duty, damage to
property and insubordination.

4. To take prompt action to implement awards, agreements, settlements and

decisions. 5. Abstain from instigating the employees to engage in any union
activity during working hours.

Provisions in the Code of Discipline:

All central organizations of employees and workers have voluntarily accepted the
‘Code of Discipline’ applicable in Indian Industry. This code of Discipline applied both
to the public as well as the Private sector.
According to the Code of Discipline, it is Mandatory:
(i) To lay down a regular grievance procedure in every organization.

(ii) Each grievance should be promptly redressed by legal means and through the
normal channels. There should be no direct, arbitrary or unilateral action on either
party.
(iii) To avoid litigation, lock-outs and strikes (sit-down and stay in) intimidation,
victimization or delaying tactics should be avoided.

(iv) Unfair practices like negligence of duty, damage to property and physical stress
should be discouraged.

(v) Management should give workers the freedom to form trade unions.

(vi) Management should promptly implement awards, agreements, settlements and

policy decisions.

(vii) The trade unions should function in a democratic fashion and discourage
(viii) violence, casteism, communalism, provincialism, intimidation or personal
deformation in inter-union dealings.

Machinery for implementation and evaluation has been set up at the centre and state
level to ensure that the obligations outlined in laws, agreements and the code of
Discipline are observed by both management as well as labour.

To download the Complete Code of Discipline document :

https://labour.gov.in/sites/default/files/Code%20of%20Discipline.pdf

2.8 Grievance Management: Meaning

2.8.1 Grievance
To understand what a grievance is, you must clearly be able to distinguish between
dissatisfaction, complaint and grievance.

Torrington (1987) provides us with a useful categorisation in this regard:

1. Dissatisfaction:
Anything disturbs an employee, whether or not the unrest is expressed in words.

2. Complaint:
A spoken or written dissatisfaction brought to the attention of the supervisor or the
shop steward.
 3. Grievance:
A complaint that has been formally presented to a management representative or to a
union official.

In addition, there are other definitions of a grievance that distinguish it from the other
two. Few such definitions are:

“A grievance is a formal dispute between an employee and management on the

conditions of employment.” (Glueck, 1978)

“Grievances are complaints that have been formally registered in accordance with the
grievance procedure.” (Jackson)

“A grievance is any dissatisfaction or feeling of injustice in connection with one’s

employment situation that is brought to the attention of the management.” (Beach
1980).

Therefore, grievance is a formal and a relatively drastic step, compared to

dissatisfactions and complains. However, instances where complaints turn into
grievances are not common, since few employees will question their superior’s
judgement. Further, many people do not initiate grievances because they fear
negative consequence as a result of their attempt.

2.8.2 Features of Grievance

On the basis of definitions of grievance, some noticeable features emerge clearly: a)
A grievance refers to any form of discontent or dissatisfaction with any aspect of the

organisation. b) The dissatisfaction must arise out of employment and not due to

personal or family problems.

c) The discontent can arise out of real or imaginary reasons. When the employee
feels that injustice has been done to him, he has a grievance. The reasons for such
a feeling may be valid or invalid, legitimate or irrational, justifiable or ridiculous.

d) The discontent may be voiced or unvoiced. But it must find expression in some
form. However, discontent per se is not a grievance. Initially, the employee may
complain orally or in writing. If this not looked into promptly, the employee feels a
sense of lack of justice. Now the discontent grows and takes the shape of a
grievance.
e) Broadly speaking, thus, a grievance is traceable to perceived non-fulfillment of
one’s expectations from the organisation.

2.8.3 FORMS OF GRIEVANCES

A grievance may take anyone of the following forms:
 1. Factual:
A factual grievance arises when legitimate needs of employees remain
unfulfilled, e.g., wage hike has been agreed but not implemented citing
various reasons.

2. Imaginary:
When an employee’s dissatisfaction is not because of any valid reason but
because of a wrong perception, wrong attitude or wrong information he has.
Such a situation may create an imaginary grievance. Though management is
not at fault in such instances, still it has to clear the ‘fog’ immediately.

3. Disguised:
An employee may have dissatisfaction for reasons that are unknown to
himself. If he/she is under pressure from family, friends, relatives, neighbours,
he/she may reach the work spot with a heavy heart. If a new recruit gets a
new table and almirah this may become an eyesore to other employees who
have not been treated likewise previously.

2.8.4 Grievance Management

At present, there are three legislations dealing with grievance of
employees working in the organization:
1. The Industrial Employment (Standing Orders) Acts, 1946, requires that
every organisation employing 100 or more workers should frame standing
orders. They contain a provision for redressal of grievance of workers against
unfair treatment by employer or his agents.

2. The Factories Act, 1948 provides for the appointment of a welfare Officer
in every factory employing 500 or more workers. The Welfare Officers look
after complaints and grievance of workers. They also look after proper
implementation of labour legislation.

3. The Industrial Disputes Act, 1947 amended in 1965 looks after issues
related to discharge, dismissal or retrenchment.

2.9 CAUSES OF GRIEVANCES

Grievances may occur for a number of reasons:

1. Economic:
Wage fixation, overtime, bonus, wage revision, etc. Employees may feel
that they are paid less when compared to others.
2. Work Environment:
Poor physical conditions of workplace, tight production norms, defective
tools and equipment, poor quality of materials, unfair rules, lack of
recognition, etc.

3. Supervision:
Relates to the attitudes of the supervisor towards the employee such as
perceived notions of bias, favouritism, nepotism, caste affiliations, regional
feelings, etc.

4. Work group:
Employee is unable to adjust with his colleagues; suffers from feelings of
neglect, victimisation and becomes an object of ridicule and humiliation,
etc.

5. Miscellaneous:
These include issues relating to certain violations in respect of promotions,
safety methods, transfer, disciplinary rules, fines, granting leave, medical
facilities, etc. The following Table describes the classification and causes
of grievances.
2.10Identification of Grievance
Grievances can be uncovered in a number of ways. Gossip and
grapevine offer vital clues about employee grievances. Ripe boxes,

open door policies periodic interviews, exit surveys could also be

undertaken to uncover the mystery surrounding grievances. These

methods are discussed below:

1. Observation:
A manager / supervisor can usually track the behaviours of people working
under him. If a particular employee is not getting along with people, spoiling
materials due to carelessness or recklessness, showing indifference to
commands, reporting late for work or is remaining absent - the signals are
fairly obvious. Since the supervisor is close to the scene of action, he can
always find out such unusual behaviours and report promptly.

2. Grievance procedure:
A systematic grievance procedure is best means to highlight employee
dissatisfaction at various levels. Management, to this end, must encourage
employees to use it whenever they have anything to say. In the absence of
such a procedure, grievances pile up and burst up in violent forms ata future
date. By that time things might have taken an ugly shape altogether, impairing
cordial relations between labour and management. If management fails to
induce employees to express their grievances, unions will take over and
emerge as powerful bargaining representatives.

3. Gripe boxes/ Suggestion box/ Complain box

A gripe box may be kept at prominent locations in the factory for lodging
anonymous complaints pertaining to any aspect relating to work. Since the
complaint need not reveal his identity, he can express his feelings of injustice
or discontent frankly and without any fear of victimisation.

4. Open door policy:

This is a kind of walk-in-meeting with the manager when the employee can
express his feelings openly about any work-related grievance. The manager
can cross-check the details of the complaint through various means at his
disposal.

5. Exit interview:
Employees usually leave their current jobs due to dissatisfaction or better
prospects outside. If the manager tries sincerely through an exit interview, he
might be able to find out the real reasons why ‘X’ is leaving the organisation.
To elicit valuable information, the manager must encourage the employee to
give a correct picture so as to rectify the mistakes promptly. If the employee is
not providing fearless answers, he may given a questionnaire to fill up and
 post the same after getting all his dues cleared from the organisation where
he is currently employed.
6. Opinion surveys:
Surveys may be conducted periodically to elicit the opinions of employees
about the organisation and its policies.

2.11 Grievance Procedure

The grievance procedure is an important component of employee relations in any
organization. A well defined and well-implemented grievance procedure can help to
resolve conflicts and disputes between employees and management, and can
contribute to a positive and productive work environment. Here are some additional
details on the various steps of the grievance procedure in India:

1. Informal discussion:
This is usually the first step in the grievance procedure. Employees are encouraged
to raise their concerns with their immediate supervisor or manager in an informal
setting. This can be done through a face-to-face meeting, a phone call, or an email.
The supervisor or manager will listen to the employee's concerns and try to resolve
the issue as quickly as possible. This step is important as it can often resolve issues
without the need for formal intervention, and can help to build trust and good
communication between the employee and management.

2. Written complaint:
If the issue is not resolved through informal discussion, the employee can submit a
written complaint to the next level of management. This written complaint should
include all the details of the grievance, including the date, time, location, and any
witnesses. The complaint should also clearly state the desired outcome, such as a
change in policy, a correction of the problem, or compensation. The next level of
management may be a department head, a human resources manager, or a
grievance redressal committee.

3. Grievance redressal committee:

If the issue is still not resolved, the complaint is referred to a grievance redressal
committee. This committee is usually made up of representatives from both
management and the employee. The committee will review the complaint and try to
resolve the issue through discussion and negotiation. The committee may also
conduct a formal hearing, where both parties can present their case and any
evidence. The committee's decision is usually final and binding.
 4. Conciliation:
If the grievance redressal committee is unable to resolve the issue, the complaint can
be referred to a conciliation officer appointed by the government. The conciliation
officer will attempt to resolve the issue through mediation and negotiation. This step
is important as it can help to resolve the issue without the need for legal action.

5. Arbitration:
If conciliation fails, the dispute can be referred to an arbitrator appointed by the
government. The arbitrator will hear both sides of the dispute and make a legally
binding decision. This step is the final stage of the grievance procedure, and the
decision is usually final and binding.
It's important to note that the grievance procedure should be clearly communicated to
all employees, and should be easily accessible. Employees should also be
encouraged to use the procedure if they have any grievances or complaints.
Employers should also ensure that the grievance procedure is fair, transparent, and
impartial, and that all parties are given the opportunity to present their case. An
effective grievance procedure can help to prevent disputes from escalating into more
serious issues, and can contribute to a positive and productive work environment.

Level 1 Employee's immediate Within 7 working days of receipt

supervisor of the grievance
Level 2 Higher-level manager Within 7 working days of receipt of the
grievance
Level 3 HR Department Within 10 working days of receipt of the grievance
Level 4 Grievance Redressal grievance Within 15 days of
Committee
(GRC) receipt of the appeal
Level 5 Grievance Redressal Officer
(GRO)
Within 30 days of receipt of the

Level 1 Employee's Within 7 working days of

immediate receipt of the grievance
supervisor
One example of an Indian organization that has a grievance procedure in place is
Tata Consultancy Services (TCS), one of the largest IT services companies in India.
TCS has a formal grievance redressal mechanism that is intended to provide
employees with a fair and impartial process for resolving work related complaints or
concerns.

TCS's grievance procedure consists of four levels, starting with an employee's

immediate supervisor and escalating to a higher-level manager, the HR department,
and finally, the Grievance Redressal Committee (GRC). The GRC is a cross-
functional team that includes members from management, HR, and employee
representatives.

The GRC is responsible for investigating and resolving all grievances that have not
been resolved at the previous levels. Employees can file a written grievance with the
GRC, and the committee is required to acknowledge the receipt of the grievance
within 48 hours. The GRC then has 30 days to investigate and resolve the grievance,
and the employee is informed of the outcome in writing.

If the employee is not satisfied with the outcome, they have the option of appealing to
the Grievance Redressal Officer (GRO), who is a senior executive responsible for
overseeing the grievance redressal process. The GRO is required to review the
grievance and provide a final decision within 15 days.

TCS's grievance procedure is intended to provide employees with a fair and

transparent process for resolving complaints or concerns. It's an example of how
Indian organizations can implement effective

grievance mechanisms that can help to prevent disputes and promote a positive and
productive work environment.