Commonwealth of Learning Executive MBA/MPA

C3 Human Resource Management

Block 9

Grievance Handling
Course Developer: Lalith Weeratunga
Senior Consultant
Postgraduate Institute of Management
University of Sri Jayewardenepura
Columbo, Sri Lanka

Copyright Commonwealth of Learning, 2003

All rights reserved. No part of this course may be reproduced in any form by any means
without prior permission in writing from:
The Commonwealth of Learning
1285 West Broadway
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Vancouver, BC V6H 3X8
CANADA
e-mail: [email protected]
 Contents
1 Objectives.................................................................................................................. 4
2 Grievance Handling .................................................................................................. 4
2.1 Introduction......................................................................................................... 4
2.2 Forms of Dissatisfaction ..................................................................................... 4
2.3 Dissatisfaction, Complaint and Grievance.......................................................... 5
2.4 Effect of Complaints and Grievances on Organisational Effectiveness ............. 6
3 Types and Causes of Grievances ............................................................................. 7
3.1 Types of Grievances ........................................................................................... 7
3.1.1 Customs and Practice ..................................................................................... 7
3.1.2 Rule Violations................................................................................................ 7
3.1.3 Insubordination............................................................................................... 7
3.1.4 Absenteeism..................................................................................................... 7
3.1.5 Dishonesty....................................................................................................... 8
3.1.6 Substance Abuse.............................................................................................. 8
3.2 Other Classifications of Grievances.................................................................... 8
3.3 Analysis of the Causes of Grievances................................................................. 9
4 Handling Grievances Formally.............................................................................. 11
4.1 Need for a Formal Grievance Handling Procedure........................................... 11
4.2 The Benefits of a Grievance Handling Procedure ............................................ 12
4.3 The Grievance Handling Procedure–The Process ............................................ 12
4.3.1 Objectives of a Grievance Handling Procedure........................................... 12
4.3.2 Key Features of a Good Grievance Handling Procedure ............................ 13
4.3.3 The Steps in the Grievance Handling Procedure ......................................... 14
4.3.4 Some Guidelines: Do’s and Don’ts............................................................... 15
4.4 Redressing of Grievances (ROG) ..................................................................... 17
4.5 Grievance in the Public Sector.......................................................................... 18
4.6 Grievance in the Non-unionised Enterprise...................................................... 18
4.7 Reducing Grievances and Improving the Process ............................................ 19
5 Summary.................................................................................................................. 19
6 References and Further Reading........................................................................... 20
1 Objectives
When you have studied Block 9 of this course, you will be able to:

• give an objective definition of grievances and describe their effect on

organisations

• name and account for some types and causes of grievances

• recount different ways in which grievances can be handled effectively in

organisations.

2 Grievance Handling

2.1 Introduction
It is an inevitable fact that, from time to time, employees will feel dissatisfied about
various aspects of their working lives. This may be due to the attitude of managers, the
operation of a company policy, the behaviour of work colleagues, thwarted ambitions and
a whole lot of other reasons. For example, an employee may feel that his foreman assigns
him to do all the dirty and heavy jobs. A clerk-typist may discover that a new girl – also a
clerk-typist – has just been hired at a salary higher than she is getting after a full year on
the job. An hourly production worker may feel that his supervisor’s decision to deal with
him disciplinarily on his refusal to do overtime work on a Sunday was unfair. These are
examples of the myriad situations that can give rise to employee anxiety and complaint.
If the culture within the organisation is such that employees feel that there is no means of
raising their concerns, then these issues are unlikely ever to be resolved. There are a
variety of likely outcomes, one of which is that employees become more and more
discontented and ultimately may decide to leave. Therefore, for the sake of justice to the
individual and smooth functioning of the whole organisation, it is important for the
management to get at the root of employee dissatisfaction and to take corrective action
wherever possible.

2.2 Forms of Dissatisfaction

If some problem or condition bothers or annoys an employee, or if he thinks someone has
unfairly treated him, he may express his discontent to someone else. When he expresses
his dissatisfaction, you can then designate such action as a complaint. Usually, but not
always, when a person ‘sounds off’ about something that bothers him, he hopes that the
listener (a fellow employee or his supervisor) will do something to correct his difficulty.
It is much more important for management to know about dissatisfaction. An
unexpressed dissatisfaction is as worthy of consideration by the supervisor as the spoken

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complaint. Just as an untreated wound, a festering discontent would also likely lead to
dire consequences.
Much dissatisfaction never turns into a complaint, as something happens to make it
unnecessary. Dissatisfaction may evaporate with a night’s sleep, after a cup of coffee
with a colleague, or when the cause of the dissatisfaction is in some other way removed.
The few dissatisfactions that do produce complaints are also most likely to resolve
themselves at that stage. However, such a complaint is still not considered as a grievance.

Self-Assessment Question
Reflect upon your current place of work/former place(s) of work and write a brief
summary of grievance handling procedures prevailing therein.

2.3 Dissatisfaction, Complaint and 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:

• Dissatisfaction: anything that disturbs an employee, whether or not the unrest is

expressed in words.

• Complaint: a spoken or written dissatisfaction brought to the attention of the

supervisor or the shop steward.

• 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. Some such definitions are:

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

conditions of employment. (Glueck 1978, 680)

• Grievances are complaints that have been formally registered in accordance with
the grievance procedure. (Jackson, 2000, p.4)

• 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, 538)
Therefore, you will see that a grievance is a formal and a relatively drastic step,
compared to dissatisfactions and complaints. 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.

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Self-Assessment Question
What grievances have you had in your work settings? Explain.

2.4 Effect of Complaints and Grievances

on Organisational Effectiveness
There are many reasons why employees keep their problems ‘bottled up’ inside
themselves. Firstly, let us see why they might do so. A person may simply have a high
tolerance limit for frustration; feel that the condition may soon change in such a way that
the problem will then be corrected; have found from past experience that it does no good
to complain to his/her supervisor. Sometimes a person may even feel that others will
criticise or condemn him if he complains.
Suppressing grievances would not be conducive to the smooth functioning of an
organisation. Unheard and unattended grievances generally lead to unhappiness,
frustration, discontentment, inefficiency and low productivity. Jackson (p. 12) refers to
several potential outcomes when the employees feel that managers have failed to respond
to their grievances or handled them badly:
Discontent and demotivation

• Poor performance

• Reduced productivity

• Disciplinary issues

• Increased labour turnover

• Withdrawal of goodwill

• Industrial action (in unionised environment)

• Employment tribunal applications

• Damage to the organisation’s reputation

• Resistance to change
According to Heneman et al (2000, 633), from the standpoint of an employer, there is a
correlation between grievance filing and higher absenteeism and fewer production hours.
High grievance levels are also associated with a conflictual labour relations climate. In
this regard, Heneman et al refer to a 1976-77 study by Gandz and Whitehead (1981)
involving 118 bargaining units followed up by a study of 18 units in 1979-80 in which it
was found that high grievance rates were associated with conflictual rather than
cooperative labour relations. Further, a well publicised employment tribunal case can
have a detrimental impact on the reputation of an employing organisation,

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notwithstanding the merits of the case and its outcome. Further, as Jackson (p. 12) opines,
nowadays, employers should be even more concerned about the effect on their public
image as technology, particularly the internet, allows employees and ex-employees to
disseminate information about organisations speedily and very publicly, regardless of its
validity. Furthermore, if employees feel that they have been badly treated, they are more
likely to be resistant to proposed changes.

3 Types and Causes of Grievances

3.1 Types of Grievances

Grievances arise from various issues. Different authors take different approaches in
describing the types of grievances. Heneman et al. (p.632) suggest the following
categories to flag the most prevalent issues.

3.1.1 Customs and Practice

Many practices are not explicitly spelled out in the contract, but have grown up over
time. For example, it may be customary to allow wash-up time at the end of the shift. If
management changes procedures, a grievance may result. Practice, even though not
spelled out, may take on the form of a contract clause, particularly if management has
cited it as a reason not to grant other concessions during negotiations. The whole issue of
past practice is extremely complex and occupies a great deal of attention from arbitrators.

3.1.2 Rule Violations

Work rules are often spelled out in contracts or supplementary materials. When an
employee violates one, he is subject to discipline. There may be a dispute regarding
whether the violation occurred and if so, whether the discipline is excessive for the
violation.

3.1.3 Insubordination
Violations of orders or refusal to perform assigned work leads to insubordination charges.
Generally, employees are expected to perform the required work and then grieve its
assignment rather than refuse to do it. There may be instances, such as safety situations,
where employees may rightfully refuse to perform the work under the contract.

3.1.4 Absenteeism
Excessive absenteeism is frequently a cause for discipline. Grievances generally occur
where employees are not treated consistently or where the discipline is seen as being
excessive for the level of absences.

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3.1.5 Dishonesty
Cases of theft usually result in discharge. Most grievances here relate to searches and
seizures and other alleged violations of evidentiary procedures.

3.1.6 Substance Abuse

Employees may be disciplined and/or discharged for drug use on company premises or
where their performance is negatively influenced by prior acute or chronic use of
intoxicants. Substance abuse is frequently involved with absence behaviour.

Activity
Collect information on how organisations in your country deal with absenteeism and
insubordination. Write a summary of the procedures.

3.2 Other Classifications of Grievances

Torrington (p. 531) referred to a classification under the basis of content.

1. The first kind referred to tangible objects in terms of what could be defined by
any competent worker and could be easily tested. E.g., machine was out of order,
this tool is too dull, the stock we are getting now is not up to standard, our cement
is too thin and won’t make the rubber stick.
2. The second were those ones based partly on sensory experience, but primarily on
the accompanying, subjective reactions. E.g., work is too messy, it is too hot in
here, the job is too hard, etc. These statements include terms where the meaning is
biologically or socially determined and therefore can not be understood unless the
background of the grievance is known; seldom can their accuracy be objectively
determined. A temperature of 108 degrees F may be too hot for one person, but
manageable for another.
3. The third type were those involving the hopes and fears of employees. E.g., the
supervisor plays favourites, the pay rates are too low, seniority does not count as
much as it should. These proved the most revealing to the investigators as they
showed the importance of determining not only what employees felt but also why
they felt as they did; not only verifying the facts, (‘the manifest content’), but also
determining the feelings behind the facts (‘latent content’).
4. The writers concluded, for instance, that one employee who complained of his
supervisor being a bully was actually saying something rather different, especially
when the reason given was the fact that the supervisor did not say ‘good
morning.’ Later, it was revealed that the root of his dissatisfaction was in his
attitude to any authority figure, not simply the supervisor about whom he had
complained.

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Thus, you will note that grievances arise for a variety of issues. However, the range of
issues and types included within the scope of grievance procedures varies from one
workplace to another. Whatever the basis of categorisation, each of the types of
dissatisfaction manifested in the above analyses are important for management to
uncover and act upon, both effectively and speedily.

3.3 Analysis of the Causes of Grievances

Nair and Nair (1999) refer to a US study and 2 Indian studies identifying typical
grievances and common causes for the same. Despite differences in culture, industrial
climate and per capita income levels between the US and India, the authors found that the
findings were almost equally applicable to both countries.
Following is a broad classification of grievances and their causes identified by the US
study undertaken by the US Dept. of Labour, as quoted by the authors.
Classification Causes
1. wage grievances - demand for individual wage adjustment
- complaint about job classification
- complaint about incentive system
- miscellaneous
2. supervision - complaint against discipline/ administration
- complaint against behaviour of supervisor
- objection to the method of supervision
3. working conditions - safety and health
- violation of rules and regulations
- miscellaneous
4. seniority and promotion
and transfers - loss of seniority
- calculation/ interpretation of seniority
- promotion – denial or delay
- transfer or change of shifts
5. discipline - discharge/ dismissal/ layoffs
- alcoholism, absenteeism and accidents
- harshness of punishment and penalty
6. collective bargaining - violation of contract /award/ agreement
- interpretation of contract/award/ agreement
- settlement of grievances

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 7. union management relations - recognition of union
- harassment of union bearers
- soldiering / go-slow tactics
Nair & Nair (p. 258), while stressing the need to identify the root causes, also suggest
that such causes be identified under 3 dimensions:
1. Organisational aspects: organisational structure, policy plans and procedure.
2. Informational aspects: ignorance about company rules, regulations, promotion
policies, career prospects, transferability etc.
3. Human aspects: a variety of reasons, the major ones being poor mental health and
alienation.
Jackson (p. 5) traces the causes of grievances as arising from the following issues:

• working environment, e.g., light, space, heat

• use of equipment, e.g., tools that have not been properly maintained

• supervisory practices, e.g., workload allocation

• personality clashes and other inter-employee disputes (work-related or otherwise)

• behaviours exhibited by managers or other employees, e.g., allocation of ‘perks’

such as Sunday overtime working, and harassment, victimisation, and bullying
incidents

• refused requests, e.g., annual leave, shift changes

• problems with pay: e.g., late bonus payments, adjustments to overtime pay

• perceived inequalities in treatment: e.g., claims for equal pay, appeals against
performance related pay awards

• organisational change, e.g., the implementation of revised company policies or

new working practices.
The authors stress that all these causes should be investigated to achieve the following
twin objectives:

• redress the grievances of the complainant

• initiate remedial steps to prevent recurrence of similar grievances in the future.

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4 Handling Grievances Formally

4.1 Need for a Formal Grievance Handling Procedure

You will have by now realised that handling complaints and grievances in a fair and
efficient manner in the workplace, can significantly contribute to good employee-
employer relations. Admittedly, this can be achieved by good management practices
alone, but it is generally preferable to adopt a formal written policy and procedure, to
ensure consistency and a coordinated approach. Managers, who believe that it introduces
unnecessary rigidity into the working relationship, however often resent the formality of
the grievance handling procedure. ‘ I see my people all the time. We work side by side
and they can raise with me any issue they want, at any time they want..,...’ The problem
is that many people will not raise issues with the immediate supervisor that could be
regarded as contentious, in just the same way that managers, as seen frequently, tend to
shirk the rebuke as a form of disciplinary penalty. Formality in procedure provides a
framework within which individuals can reasonably air their grievances and avoid the
likelihood of managers dodging the issue when it is difficult. It avoids the risk of
inconsistent ad hoc decisions and the employee knows at the outset that the matter will be
heard and where it will be heard.
Some employers, especially in non-union companies, take the view that there is really no
need for establishing a formalised grievance handling procedure. Their view is that all
their first line supervisors are trained to hear employee complaints and to take prompt
action to settle them. They also state that the company is well managed, it has an
enlightened human relations programme in operation, and employees generally are well
satisfied; very little evidence of dissatisfaction or complaint ever reaches the ears of top
management. However, the danger of such an approach is that any suppressed feelings
once it bottles up could suddenly flare up, proving disastrous to the organisation.
Ultimately, they may decide to leave. Exit interviews may reveal the real reasons for their
departure, though this is not always the case. Even where employees do ‘tell all’ at the
exit interview, it is usually too late to do anything about their complaint or grievance and
ask them to reverse their decision.
Beach (p.539) also refers to several reasons why there should be a formal procedure to
handle grievances:

• All employee complaints and grievances are in actual practice not settled
satisfactorily by the first level supervisor, due to lack of necessary human
relations skills or authority to act.

• It serves as a medium of upward communication, whereby the management

becomes aware of employee frustrations, problems and expectations.

• It operates like a pressure release valve on a steam boiler, providing the

employees with an outlet to send out their frustrations, discontents and gripes.

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 • It also reduces the likelihood of arbitrary action by supervision, since the
supervisors know that the employees are able to protest such behaviour and make
their protests heard by higher management.

• The very fact that employees have a right to be heard and actually heard helps to
improve morale.

4.2 The Benefits of a Grievance Handling Procedure

According to Jackson (2000,10), further benefits that will accrue to both the employer
and employees are:

• It encourages employees to raise concerns without fear of reprisal.

• It provides a fair and speedy means of dealing with complaints.

• It prevents minor disagreements developing into more serious disputes.

• It saves employers time and money as solutions are found for workplace
problems.

• It helps to build an organisational climate based on openness and trust.

4.3 The Grievance Handling Procedure–The Process

Grievance handling procedures involve a systematic set of steps for handling an
employee complaint/grievance. Most union contracts provide the channels and
mechanisms for processing these grievances.

4.3.1 Objectives of a Grievance Handling Procedure

Jackson (2000, 11) lays down the objectives of a grievance handling procedure as
follows:

• To enable the employee to air his/her grievance

• To clarify the nature of the grievance

• To investigate the reasons for dissatisfaction

• To obtain, where possible, a speedy resolution to the problem

• To take appropriate actions and ensure that promises are kept.

• To inform the employee of his or her right to take the grievance to the next stage
of the procedure, in the event of an unsuccessful resolution
A grievance filer should not subsequently be disadvantaged in any way.

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4.3.2 Key Features of a Good Grievance Handling Procedure
Torrington & Hall (p.539) refer to four key features of a grievance handling procedure.
Fairness
Fairness is needed not only to be just but also to keep the procedure viable, for if
employees develop the belief that the procedure is only a sham, then its value will
be lost, and other means sought to deal with the grievances. This also involves
following the principles of natural justice, as in the case of a disciplinary
procedure.
Facilities for representation
Representation, e.g., by a shop steward, can be of help to the individual employee
who lacks the confidence or experience to take on the management single-
handedly. However, there is also the risk that the presence of the representative
produces a defensive management attitude, affected by a number of other issues on
which the manager and shop steward may be at loggerheads.
Procedural steps
Steps should be limited to three. There is no value in having more just because
there are more levels in the management hierarchy. This will only lengthen the
time taken to deal with matters and will soon bring the procedure into disrepute.
Promptness
Promptness is needed to avoid the bitterness and frustration that can come from
delay. When an employee ‘goes into procedure,’ it is like pulling the
communication cord in the train. The action is not taken lightly and it is in
anticipation of a swift resolution. Furthermore, the manager whose decision is
being questioned will have a difficult time until the matter is settled.
Jackson (p.30) states that good practice dictates that procedures should be:

• set down in writing;

• aimed at settling matters as closely as possible to the point of origin;

• equitable in the way in which all workers are treated;

• simple to understand;

• rapid in their operation to ensure that grievances are processed in a timely

manner.
Further, they should ensure that, if a grievance is not settled at the informal or first formal
stage, workers have the right to have their grievances heard at further levels, i.e., the right
of appeal should be built into each stage. Furthermore, it is also important for the
procedure to have credibility. All parties need to be satisfied that it is both fair in

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conception and application. It certainly should not be seen as a device for simply going
through the motions. Neither should managers fear that it provides a stick to a disgruntled
employee to beat them with. If a grievance is raised, then it is crucial that all parties have
a desire to ensure that there is a fair hearing of the complaint and that, ultimately, justice
is done. {Jackson ( p 4)}.

4.3.3 The Steps in the Grievance Handling Procedure

The method by which formal grievances are processed varies with the labour contract.
Glueck (p.681) refers to 3 steps that apply to many, if not smaller enterprises.
1. Initiation of formal grievance
2. Department head or unit manager
3. Arbitration
Figure 1: The steps in the grievance handling procedure
Smaller enterprise Larger enterprise
1st Employee and steward meet with supervisor and employee files a grievance orally or
step in writing
If not selected, go to 2nd step
2nd
Employee files grievance in writing. It is reviewed by:
step

Head of local work unit and shop Personnel office and chief steward or
committee business agent
If not settled, go to last step If not settled, go to intervening steps
Reviewed by personnel director or plant
manager; union represented by plant
committee
If not settled, go to next step
Top corporate management and national
union representatives review it.
If not settled, go to last step

Last step Arbitration Arbitration

(Source: Glueck, p. 682)

1. Initiation of formal grievance: This step refers to the filing of the grievance. An
aggrieved employee can file his grievance with the supervisor in the first instance,
preferably in writing or at least initially orally, formulated if he wishes with the

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 help and support of his union steward. Most grievances are usually settled at this
level between the steward, the employee and the supervisor.
2. At this stage, the supervisor should make sure that the grievance is attended to
and the problem solved, as soon as possible, without trying to assess the blame or
find excuses. Joint attempt by him along with the union steward and the employee
would be the most useful way of solving at this stage. Several organisations train
their supervisory level staff to handle and solve grievances at this level by using
effective counselling techniques.
3. Department Head or Unit Manager: If the grievance cannot be solved at the level
of the supervisor, it goes to the other level in the hierarchy. At this point, the
grievance must be presented in writing and both sides must document their cases.
What this level consists of depends on the size of the organisation. Most
grievances that go beyond the first stage are settled at this step.
4. Arbitration: If the grievance cannot be solved at this intervening step or steps, an
independent arbitrator may be called in to settle the issue. In larger organisations,
one or possibly two steps can be inserted between the 2nd and 3rd step, as shown in
the diagram. Depending on the way the contract is written, the parties may use a
permanent umpire or appoint an ad hoc arbitrator. Most agreements using a
permanent umpire are with larger organisations having mature bargaining
relationships. The arbitrator is generally experienced in labour management
relations and often it is a labour lawyer, university professor of industrial relations
or a former labour or management official now arbitrating full time. Arbitration
provides a method for settling contractual disputes without having to resort to
work stoppages.
Glueck (p.682) states that most studies of grievances show that more than 75% are settled
at the first step and another 20% at the next level. The rest, primarily in larger enterprises,
are taken care of in the intervening steps. Relatively few studies have been done on
grievances.

4.3.4 Some Guidelines: Do’s and Don’ts

Dessler (2001, 576) presents a set of guidelines to the managers in handling grievances.
He says, ‘As a manager, your behaviour in handling grievances is crucial. You are on the
firing line and must, therefore, steer a course between treating employees fairly and
maintaining management’s rights and prerogatives.’ He quotes Walter Baer (1970) who
has developed a list of do’s and don’ts as useful guides in handling grievances. Some of
the most critical ones are presented below.

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Do
Investigate and handle each and every case as though it may eventually result
in an arbitration hearing.
Talk with the employee about his or her grievance; give the person a good and
full hearing.
Require the union to identify specific contractual provisions allegedly
violated.
Comply with the contractual time limits of the company for handling the
grievance.
Visit the work area of the grievance.
Determine whether there were any witnesses.
Examine the grievant’s personnel record.
Fully examine prior grievance records.
Treat the union representative as your equal.
Hold your grievance discussions privately.
Fully inform your own supervisor of grievance matters.
Don’t
Discuss the case with the union steward alone – the grievant should definitely
be there.
Make arrangements with individual employees that are inconsistent with the
labour agreement.
Hold back the remedy if the company is wrong.
Admit to the binding effect of a past practice.
Relinquish to the union your rights as a manager.
Settle grievances on the basis of what is ‘fair.’ Instead stick to the labour
agreement, which should be your only standard.
Bargain over items not covered by the contract.
Treat as subject to arbitration claims demanding the discipline or discharge of
managers.
Give long written grievance answers.

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 Trade a grievance settlement for a grievance withdrawal (or try to make up for
a bad decision in one grievance by bending over backward in another).
Deny grievances on the premise that your ‘hands have been tied by
management.’
Agree to informal amendments in the contract.

4.4 Redressing of Grievances (ROG)

Nair & Nair (p. 259) state that in the Indian context, certain guidelines were evolved in
formulating grievance handling procedures in different types of organisations - small,
big, unionised, non-unionised.
According to Nair & Nair, grievance handling procedures can be broadly classified as 3-
step, 4-step or 5-step. The details are tabulated in Table 1. One of the prominent features
of the procedure suggested by Nair & Nair is the intervention of Grievance Committees
in the 5-step procedure, which works in the Indian context. This committee consists of:
1. in unionised context, two nominees each from the management and the union (1
union representative should be from the same department as the aggrieved
employee);
2. in a non unionised set up, two representatives from the management,
representative in the ‘ Works Committee’ who belong to the same department as
that of the aggrieved employee and secretary/vice president of the ‘Works
Committee.’
Table 1: Comparison of ROG Procedure
Steps 3-Steps 4-Steps 5-Steps
Procedure Procedure Procedure
Step No. 1 Worker with shop Worker with shop Worker with shop
Rep. of union Rep. of union Rep. Of union
vs. vs. Vs.
Shop Supervisor Shop Supervisor Shop Supervisor
Step No. 2 Union Rep. of Plant Work Committee Union Rep. Of Plant
vs. vs. vs.
G.M. or Owner Manager Manager – I.R.
Step No. 3 Arbitration by Local Union Grievances
Independent Leaders Committee
Authority vs. vs.
Chief Executive Director (P & A)
Step No. 4 Arbitration Regional Rep. Union
vs.
Chief Executive
Step No. 5 Arbitration

(Source: Nair & Nair, 260 )

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4.5 Grievance in the Public Sector
Glueck (1978,683) refers to the US context and opines that the first two steps are similar
to what happens in the private sector, as earlier referred; then conciliation and mediation
are tried. If no solution is tried, the grievance goes to the Federal Service Impasses Panel
and finally to arbitration. In the public sector in different countries, the first two steps
remain the same, but there are intervening steps between the 2nd and the 3rd step.

4.6 Grievance in the Non-unionised Enterprise

Employee relations procedures in non-unionised organisations are developed to ensure
opportunities for due process for employees who believe that management has acted
unfairly. Employers frequently establish procedures that allow employees access to
superiors. In many instances, however, the ultimate authority in deciding the merit of the
complaint is a high level management official. This procedure will have little credibility
if management excessively controls it.
Several methods to reduce the possibility of employee cynicism about management’s
commitment to neutral grievance handling procedures have been devised in non-
unionised organisations.
Heneman et al (p.637) gives an example of IBM, which has operated a system that allows
employees direct anonymous access to high level management on complaints. It is also
reported that when complaints are received, investigations are carried out, remedial
action is taken and communicated to the aggrieved employee. Follow up is also said to be
monitored by high level management.
Beach (p.548) refers to various approaches that have been or can be instituted in non-
unionised organisations.
1. Open door policy - any aggrieved employee has a right to go to the office of the
CEO and discuss his complaint or grievance.
2. The Inspector General Method - a high level official is appointed to visit each
unit at least once a year or more often as necessary to investigate and remedy
injustices.
3. Ombudsman - an independent and a neutral officer who directly reports to the
President or the CEO. Xerox experiences indicate that only someone outside the
corporate chain of command could ensure fair treatment for employees.
4. Multi step procedure - under this procedure, the last avenue of appeal is
generally the CEO.
5. Grievance committee - this is a committee consisting of management and non-
management members to hear employee grievances on appeal from lower levels.
Nair also referred to such committees in the Indian context.

C3: Human Resource Management, Block 9 page 18 of 20

For a grievance system to work successfully in a non-unionised set up, the employees
should be assured that there will be no retaliation against them for submitting and
pushing their case up. Employees naturally tend to have deep-seated fear of retaliation by
the superiors or other members of the management, because of the imbalance of power
between the management and the worker. This is one prime reason why the grievance
handling procedure is seldom used. This may in turn give a false sense of confidence to
the top management that the employees are happy and contented.

4.7 Reducing Grievances and Improving the Process

It is impossible to remove grievances altogether from organisations. However, in view of
the adverse effects grievances have on organisational effectiveness, measures should be
taken to reduce them by adopting various approaches. Glueck (p.683) refers to the
following in this regard.
1. Reduce the causes of grievances such as bad working conditions or adopt a less
employer-oriented supervisory style.
2. Educate managers on contract provisions and effective human relations oriented
grievance processing.
3. Quickly and efficiently process all grievances
4. Encourage supervisors to consult personnel and other supervisors before
processing grievances to get the best advice and improve effectiveness in the
grievance process.

Activity
How do (a) public sector institutions, (b) private sector institutions and (c) non-profit
organisations in your country attempt to reduce grievances? What is the efficacy of each
such procedure?

5 Summary
Grievances are inevitable in organisations. If the culture of an organisation does not
permit the employees to raise their concerns, they become more and more discontented,
and may ultimately decide to leave the organisation. Discontentment per se does not
mean that a grievance occurs; rather, firstly, this takes the form of a mere dissatisfaction,
which in turn gives rise to a complaint. A grievance is a formal and relatively drastic step
compared to both dissatisfaction and a complaint. Studies have proved that lack of a
system to enable the employees to air their grievances has had several adverse effects on
organisational effectiveness, including low productivity, absenteeism and demotivation.

C3: Human Resource Management, Block 9 page 19 of 20

Most unionised organisations have a formal grievance handling procedure. This is a step-
wise approach in handling grievances at different levels. This primarily improves upward
communication and gives people an outlet to express their discontentment with regard to
various aspects of organisational life. In non-unionised enterprises too, there are
alternative mechanisms for this purpose, although it has been found that people do not
seek to make use of them due to fear that such action may be viewed unfavourably.
Thus, modern organisations have generally realised the gravity of allowing all forms of
employee dissatisfaction to go unattended, and measures are therefore being taken to
provide a mechanism to identify them systematically, and reduce the possibility of such
grievances emerging.

6 References and Further Reading

Baer, W. 1970. Grievance handling: 101guides for supervisors, New York: American
Management Association.
Beach, D. S. 1980. Personnel –the management of people at work. 4th Ed. New York:
Macmillan Publishing Co. Inc.
Dessler, G. 2001. Human resource management, 7th Ed. New Delhi: Prentice-Hall of
India Private Ltd.
Glueck, W. F. 1978. Personnel: a diagnostic approach Revised Ed.. Dallas: Business
Publications Inc.
Heneman III, H. G., Schwab D. P., Fossum, J. A. & Dyer, L. D. 2000. Personnel/human
resource management. 4th Ed. New Delhi: Universal Book Stall.
Jackson, T. 2000. Handling grievances. London Chartered Institute of Personnel and
Development.
Nair N.G. & Nair, L. 1999. Personnel management and industrial relations. New Delhi:
S. Chand & Co.
Torrington D. & Hall L. 1987. Personnel management, HRM in action. London: Prentice
Hall.

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