Labor Relationship:

Grievances and Dispute

Settlement
Unit 5

Concept of Labor Relation:

Labor relation is the understanding between employees
and management in an industrial setting, labor relation
is the outgrowth of industrializing. Traditional concept of
labor relation deals particularly with union and
management issue but, modern sense of labor relation
deals with managing inter-relations between employees,
employers and government. Employees are represented
by trade unions, employers are represented by
employers association and government represented
various political parties and pressure group.

Labor relations are multi dimensional. They are

affected by economic, socio-cultural, political, legal,
technological
and
occupational
force.
Employee
management relationships are strongly affected by the
presence of unions. The scope of labor relation covers
unionism, collective bargaining, resolution of industrial
disputes, grievance procedure, and discipline and labor
legislation.

Purpose of Labor Relation:

Harmonious relationship:
Labor relation aims to develop and promote
harmonious inter-relation between labor and
government. This leads to industrial peace
and helps to achieve the goals.
Industrial peace:
Labor relation faster industrial peace and
stability.
Since,
both
managers
and
employees discuss and consult before
initiating any action. Disputes, grievances
and disruptions are minimizes through
collective bargaining. Misunderstanding and
confusion disappear where as co-operation is
established.

Purpose of Labor Relation:

Open communication:
Labor relation provides opportunity for free flow of
communication between workers and management. It
promotes favorable work climate and participative
culture.
Power
balance
is
achieved
between
management and labor. It helps to increase cooperation,
confident
and
respect
within
the
organization. Labor turnover and absetism is minimized
whereas quality of woke life improves.
Change management:
Labor relation facilitated change management, since, it
creates an environment of co-operation, trust and
confident which reduce the resistance to change,
hence, innovation and other technological advancement
can be easily implemented by an organization.

Purpose of Labor Relation:

Institutional relationship:
Labor relationships are institutionalized through legal
frame works. All actors have to work according to lows,
rules and regulation, e.g. trade union act describe the
rules and responsibility of worker.
Minimizes industrial conflicts:
Labor relation minimizes industrial conflicts like
disputes, grievances, strike lock outs etc, in the
organization.
Productivity:
Labor
relation
maintain
inter-relation
between
management
and employees
which
foster the
employees to do their work more efficiently which
increase productivity harmonious labor relationship
motivate employees to put more which will increase
profit of an organizatnal

Actors in labor Relation /

Actor of industrial relation
The key actors in labor relation are
system
workers, employees and society. These
all actors play different role which can be
shown by the help of following diagram.

Employee Grievances
Concept:

In simple word, grievance means employees perceptions

for unfair treatment on the job by management. It is feeling
of dissatisfaction or discontent. Grievances are caused due to
difference
between
the
employees
expectation
and
management. Hus, when employees complaint is brought to
the notice of management, it becomes grievances.

Employee grievances are one of the important matters of

concern for HRM. Since, when the people are dissatisfied with
the management they usually complain labor relation.
Organization must manage employee grievances effectively
with the legal provision.

Grievances may be factual, imaginary or disguised.

Factual grievances are best on facts. They arise from non
fulfillment of service condts. And faulty implementations of
HR policies imaginary grievances are based on expectations
of employee. They arise from their own imagination which
management cant fulfill. Disguised grievances arise from
hidden reasons which are ignored by organization. They are
usually based on false information which management may
not take seriously.

Causes of Employee
According to Churdin and Sherman following are the
Grievances
causes of grievances.
Interpretation differences:

This
is
concerned
with
how
employee
and
management interpret the term and conditions of empt
contract. Interpretation differences may arise due to use
of such types of words in the contract which gives various
and different meaning. Collective bargaining contract may
be violated by management.

Management practices:

This is concerned with the employee perception of

unfair management practices such as poor communication,
faculty implementation of HRM practices and decision,
violations of estd procedure supervisory styles hat
practice in consistency in application of rules and decision
and finally amaguities in HRM policies and practices.

Causes of Employee
Grievances
Organizatnal culture:

Employee grievance caused due to the poor

and strict culture of the organization as well as
practices of autocratic leadership style. These
types
of
organization
culture
create
misunderstanding among employees.

Working condition :

Poor working condition unsystematic physical

facility cause grievance. If there is Un-alternative
surrounding, poor lighting and ventilation and laud
noise than employee grievance ultimately increase
since, this type of poor working condition creates
problem to perform day-by-day activities.

Employee Discipline
Concept:

In simple word, discipline means to follow rules,

regulation, procedures and stander of organization in order
to achieve all over goals. Discipline is essential for
maintenance
of
organizational
peace.
Harmonious
organizational relation demands on self discipline of
management as well as employees. Employees discipline is
needed for effective HRM.

Employee should know about self-discipline since

self-discipline is the best discipline which maintains self
control.
But,
not
all
employees
will
accept
the
responsibilities of self-discipline. Some do not accept the
norms of responsible employees behavior. For such
undisciplined employee disciplinary action should be taken
to maintain their orderly behaviors.
Thus every employee should maintain discipline in an
organization. Hey should follow rules and sanders of
acceptable behavior willingly and obey them. Otherwise, if
hey dis-obey and break down he rules and regulations then
they may be punished by the management.

Types of Disciplinary Problems

Attendance-related problems:

A serious disciplinary problem faced by the managers

is an attendance related problem. Attendance related
problem arise due to absentees of sick level, leaving work
without permission, habitual tardiness, arriving late at
work and other aspect of attendance. The problems also
arise due to change in attitude towards empt when there
is a great support from union and lack of harmony
between individuals goals and organizational goals.

Job behavior related problem:

When employees do not obey the organization rules

and accept he standard of job than job related
disciplinary Problem arise. job behavior arise due to
refusal to obey, orders, fighting, gambling, failure to use
safely devices, carelessness, failure to report accident
and injury, arriving drunk on the job, use of drugs on the
jobs, destruction of ppt and carrying fire arms at work.

General Guideline in
Administrating
Discipline
Discipline should be corrective:
The main objective of discipline is to correct the
undesirable behavior of the employees. It is concerned
with regulating the employee behavior through follow
up of rules and regulation of an organization.
Management should not emphasize on punishment
rather than try to correct them. Since, self discipline is
the best discipline. It should be promoted in order to
overcome disciplinary problems.

Disciplinary action should be progressive:

What ever the action management takes in order to

maintain discipline in the organization that should be
based on the frequency of the disciplinary problem
Disciplinary action should generally be progressive.
Progressive disciplinary action should oral warning,
written warning, suspension, pay-cut, demotion and
dismissal. The dismissal action should be taken when
the problem is serious.

Types of Disciplinary Problems

Dishonestly Related Problem:

Dishonestly related problem arise due to theft,

falsification of empt records, punching time, cards of
other employee, cancelling defective work and
subversive activity. It is an assumed rightly or wrongly
than an employee who lies or seals once cant be
trusted by the management and must be separated
from the organization. The survey shows that 90%
would discharge an employee for falsification of
information. Dishonestly directly inflects on the
human character than any other types of behavior.

Outside activity related problems:

The employees who are engaged in outside

activities either effect on the job performance or
reflect negatively on the image of the organization.
They arise due to unauthorized strikes activities for a
competiting organization etc.

General Guideline in
Administrating
Discipline should followDiscipline
the Hot-Stove rules:

The Hot-Stove rules were profounded by Mc

Gregar. This rule should be implemented immediacy to
control violence and defense in the organization.
Employee should be given advance warning prior to
imitating disciplinary action. He should be aware
about the rules. The organization should use HotStove rules since when 1 touches it the burn is
immediate, it produce sense of warning and the effect
is consistence and impersonal. The rules for
disciplinary action should be consistent for the same
types of offence to make it fair.

Allow employees to give explanation:

According to this principal, before implementing

the final disciplinary action, employee should be given
an opportunity to explain. The concern authority
should also hear it patiently before taking an action.

Disciplinary Action/Process of handling

discipline:

Every organization has its own rules and

regulation. If he employees follow it and obey
it than heir behavior is accepted by an
organization. So, discipline implies the follow
up of rules and regulation. The person who
disobeys the rules and regulation requires the
disciplinary action. It is the punishment to the
employees when they violent the rules and
standers.
Disciplining
action
should
be
corrective
progressive
consistent
and
impersonal. But, generally disciplinary action
follows progressive sequence of 6 steps. It can
be show by the help of following figure.

Disciplinary Action/Process of handling

discipline:

What is industrial dispute?

Industrial disputes may be said
to be disagreement or controversy
between management and labour
with respect to wages, working
conditions,
other
employment
matters or union recognition.

Industrial Conflict: Forms And

Causes
Industrial conflicts constitute militant
and
organized
protests
against
existing industrial conditions. They are
symptoms of industrial unrest. The
term industrial dispute as described
in the Industrial Disputes Act, 1947 is
characterized by the following features

Features of the term industrial dispute

There should be a difference or dispute

The dispute could be between employeremployer, employee-employee or

employer-employee

The dispute must pertain to some workrelated issue

The dispute must be raised by a group or

class of workers. For example the
dispute between one or two workers and
the
respective employer is not an
industrial dispute

Methods of settling industrial

disputes
Without state intervention
1.Collective bargaining
I. Without conciliation
II.With conciliation
2. voluntary arbitration

Methods of settling industrial

disputes
With state intervention
1. Compulsory establishment of bipartite
committees
2. Establishment of Compulsory collective
bargaining
3. Compulsory investigation
4. Compulsory conciliation and mediation
5. Compulsory arbitration or adjudication