CHAPTER 1

INTRODUCTION

An organization enjoys competitive advantage when it is the only one which can offer
a product at a price and at quality while its competitors cannot do so. In order to enjoy
such competitive advantage an organization needs work force with mature knowledge
and skill. Human Resource management is the most happening function as of now.
This is so because people offer competitive advantage to a firm and managing people
is the domain of HRM. Human Resource Management is the process of recruitment,
selection of employee, providing proper orientation and induction, providing proper
training and the developing skills, assessment of employee (performance of
appraisal), providing proper compensation and benefits, motivating, School of
Distance Education Human Resource Management maintaining proper relations with
labor and with trade unions, maintaining employee’s safety, welfare and health by
complying with labor laws of concern state or country.

The problem of industrial relations is more prominent than any other HRM problems
that have emerged at the corporate levels in record times. It constitutes most delicate
and complex problem, which is characterized by rapid change, industrial unrest and
conflicting ideologies in the national and international spheres. Industrial relations
comprises of a network of trade unions, employers, their collective bargaining, the
laws and the governments.

The fact that employee relation has far reaching irriplications on unorganized,
organized workers and economy as whole. Hence there is a great deal of importance
for the study of industrial relations as is realized from the following points. (1)
Industrial relation patterns, organized sector and its impact on unorganized sector. (2)
Unions are important force in the Indian political system. (3) Varying patterns of
industrial relation. (4) Different status of workers in public and private sector.

Factors contributing for harmonious industrial relations

(1) There is a full acceptance by management of the collective bargaining process

and of unionism as an institution. The company considers a strong union as an asset to
the management
(2) The union fully accepts private ownership and operations of the industry. It
recognizes that the welfare of its member depends upon the successful operations
ofthe business.

(3) The union is strong, responsible and democratic.

(4) The company stays out ofthe internal affairs ofthe union; if does not seek to
alienate the worker’s allegiance to their union.

(5) Mutual trust and confidence exists between the parties. There has been no
ideological incompatibility.

(6) Neither party to bargaining adopts legalistic approach to the solution ofproblems
ofrelationship.

(7) Negotiations are problem centered. More time is spent on the day-today problems
than on abstract principles.

(8) There are wide spread union management consultations and highly developed
information sharing.

(9) Grievances are settled within the plant. There is flexibility and informality within
the procedure.

(10) The attitude and the policies of the parties, the personality and technique ofthe
leaders bring about good relations.

A well-defined grievance procedure is an important element of sound industrial

relation machinery. Prompt and effective disposal of worker’s grievance is the key to
industrial peace. A dissatisfaction, which is orally made known by one employee to
another, is known as a complaint. A complaint becomes a grievance when this
dissatisfaction related to work is brought to the notice ofthe management. Grievances
are feelings, something real, sometime imagined, which an employee may have in
regard to his employment situations. Grievances give rise to unhappiness, frustration,
discontent, indifference to work; poor morale and they ultimately lead to the
inefficiency and low productivity of workers. The cost of grievance can be high in
terms of time lost, poor work, damage, poor customer services and goodwill ofthe
organization.

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1.2 Statement of the Problem

Employee complaints are inevitable even in the most work-friendly companies. Some
complaints are quickly and easily resolved, while others take more time, energy and
patience. Complaints can cover everything from cleanliness of restrooms to job
flexibility. Grievance on the other hand, is any discontent or feeling of unfairness and
in the workplace, it should be pertaining to work. Grievance procedures are a means
of dispute resolution that can be used by a company to address complaints by
employees, suppliers, customers, and/or competitors.

A grievance procedure provides a hierarchical structure for presenting and settling

workplace disputes. The General Grievance is a grievance that affects a group of
employees. Although the HR Practitioner has a part to play, the handling of employee
grievances is a job function of any person authorized and empowered by the
employer. It is a complaint when the employee merely expresses his thoughts and
opinions verbally, talking about it to anyone who cares to listen.

There are three important legal provisions that specify the rules relating to the
grievance redressal procedure in Indian industrial organizations. Clause 15 of the
model standing orders in schedule 1 of the industrial employment act makes it
mandatory for every establishment employing 100 or more workers to have
appropriate officers to deal with the complaints of the employees . The project is
based on 'Study on Grievance Handling Procedures in KERALA FEEDS Ltd,
Karunagappally'. The study aimed to enquire about the effectiveness of the grivence
resdressal mechanism of kerala feeds LTD.

1.3 Review of Literature

A number of materials were reviewed as part of the project work to get acquaint with
the subject. The views of some well-known authors were given below

According to Dale Yoder, author of book Personnel 'Management and industrial

relation,1997, “A grievance is a written complaint filed by an employee and claiming
unfair treatment.”

Keith Davis, 19th President (1964) of Arizona State University defines it as “any real
or imagined feeling of personal injustice which an employee has concerning his
employment relationship.”

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'Grievance resolution, Perceived goal interdependence and interaction patterns' by
Dean Tjosvold, a famous author in 1999, identifies behaviors and perceptions of the
individuals involved that affect the grievance resolutions. Based on the conflict
research the study proposes that cooperative goals promote the direct, open-minded
consideration of opposing views which leads to quality solutions efficiently
developed.

The article on Research on unionized grievance procedures: Management issues and

recommendations by Peterson, in the year of 2000. Richard B, Lewin & David
describes Human Resource Management involves critically reviews research on
unionized grievance procedure to identify key issues for human resource or labor
relations executives and to provide recommendations for dealing with these issues.

Remedy-seeking responses to wrongful dismissal-Comparing the similarity-attraction

and similarity-betrayal paradigms by Cynthia L. Gramm, John F. Schnell and
Elizabeth W. Weatherly University of Alabama in Huntsville, Huntsville, Alabama,
USA, tells that this study’s purpose is to investigate the antecedents of an employee’s
remedy-seeking behavioral intentions in response to wrongful dismissal.

1.4 Objectives of the Study

 To make an assessment of grievance handling procedure in the organization

 To study about effectiveness of grievance handling mechanism in
organization.
 .To study the employees satisfaction about the grievance handling in the
organization
 To identify the benefits grievance mechanism to the organization.

1.5 Scope of the study

The organization selected to conduct the study is Kerala feeds Ltd, Karunagappally.
The study was conducted to know about the grievance handling mechanism and its
effectiveness. The study is limited to the Karunagappally units of Kerala feeds Ltd.

1.6 Significance of Study

The grievances of the employees are related to the contract, work rule or regulation,
policy or procedure, health and safety regulation, past practice, changing the cultural
norms unilaterally, individual victimization, wage, bonus, etc. Here, the attitude on

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the part of management in their effort to understand the problems of employees and
resolve the issues have better probability to maintain a culture of high performance.
Thus, grievance redressal system play a vital role in a company administration, hence
the study is important

1.7 Research Methodology

The study is descriptive in nature. Both primary and secondary data were used for the
study

Primary data

The primary data has been collected from the employees of Kerala feed LTD. The
data collected from 50 employees belonging to various departments of Kerala Feeds
Ltd.

Secondary data

The secondary data relevant to the present study were collected from annual
publication of the company, from research journals and from various unpublished
sources.

Data collection tool

A structured interview schedule were prepared and executed to collect data from
employees.

Sampling

The sample unit of the study comprises of 50 employees. The sample respondents
were selected from among the employees of Kerala feed ltd using simple random
sampling technique.

1.8 Data analysis and interpretation

The data collected from the employees of Kerala Feed Ltd were edited and presented
in the tabular format. A pictorial representation of data was also provided for easy
understanding of the data.

Tools used for Analysis of data

The data were presented both in absolute figure and in percentage. Simple
mathematical tool such as average, percentage were used to analysis the data.

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1.10 Limitations of the Study

To following limitations were faced during the research study:

 Availability of secondary data from the companies was difficult.
 Some employees were reluctant or hesitant to share data due to personal
reasons.
 Management may not like to share their views on the topic.
 Due to lack of time more number of workers is not consulted.
 The field study has to restrict with in in30 days.
However, sincere efforts have been taken to overcome the limitations and to reach at
meaningful culmination of study.

1.11 Report presentation

The study report is presented in four chapters

Chapter: One Introduction

Chapter: Two Theoretical review, industry profile and company profile
Chapter: Three Data Analysis and Interpretation
Chapter: Four Findings, Suggestions and Conclusion