A grievance is a compact that the employee is serious enough to justify some types of formal submission and action. A grievance refers to toa any form of discount or dissatisfaction with any aspect of the organization. It is a sign of employees’ discontent with the job or its nature.
An effective grievance system is an important and integral part of human resources management.
Importance of Grievance Handling System in Industrial Relations
The importance of the existence of a grievance system in an organization is discussed below:
1. Provides Useful Data
Grievances provide useful data on the basis of which the management can diagnose the problem and can initiate corrective action.
2. Expression of Dissatisfaction
There are several ways in which employees express their dissatisfaction ranging from apathy tona more aggressive reaction of hostility or even violence.
In fact, grievance provides a channel to release the employee’s discontent.
Without the system of grievance, unexpressed dissatisfaction may lead to harmful effects and destructive activities.
Due to the grievance system, managers can take corrective action before discontent gets expressed undesirable behavior.
3. Index of Organization Health
DIsstisfactions felt by employees, if they were all made known to management, might be the most significant index of organizational health.
4. Improve Mutual Understanding
A complaint and grievance procedure may provide an opportunity for mutual understanding and solution of genuine complaints, or it may worsen existing relationships.
The way in which it is used is often a reflection of the philosophies of management and union representatives.
5. Affects Morale
A suppressed grievance may be more damaging to morale and productivity than one which has been aired through an orderly procedure.
The purpose of both a line manager and a personnel administrator in analyzing complaints and grievances is to help raise employee morale and to increase operating efficiency.
6. Vehicle for Administering the Contract
It is the vehicle for administering the contract on day by day basis.
The grievance process allows both parties to interpret and give meaning to various clauses and transform the contract into a living organism.
7. Other Benefits
- It brings grievances into the open so that management can learn about them and try corrective action.
- It helps in preventing grievances from assuming big proportions. The management cates and solves a grievance before it becomes a dispute.
- It helps in establishing and maintaining a work culture or way of life.
- It acts as a check upon arbitrary and capricious management action.
- It serves as an outlet for employee groups, discounts, and frustrations. It acts as a pressure valve on a steam boiler.
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