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Grievance Handling
A
PROJECT REPORT
ON
GRIEVANCE HANDLING AT
“ULTRATECH CEMENT LTD”
TADIPATRI, ANANTHAPUR DIST.
Submitted in partial fulfillment of the Requirement for the Award of Master’s Degree In Business Administration.
By
VENKAT RAOROLL.NO: 098-06-139
ST. PAUL’S P.G COLLEGE
(Affiliated to Osmania University)Thurkyamjal (V),Hayathnagar(M),
R.R. District.2006 – 2008
DECLARATION
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Grievance Handling
I hereby declare that this Project Report titled GRIEVANCE
HANDLING submitted by me to the Department of Business
Management, O.U., Hyderabad, is a bonfied work undertaken by me and
it is not submitted to any other University or Institution for the award of
any degree diploma / certificate or published any time before.
Name and Address of the Student Signature of the Student
ACKNOWLEDGEMENT
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Firstly, I would like to express my sincere my gratitude to Mr. P.Vasantha Rao, General Manager
(P&A) and Mr. C.Punniah of personnel and Administration Department. (Ultra Tech Cements
Ltd), Tadpatri, for giving us an opportunity to carry out the project work.
It’s our primary duty to express my humble thanks and deep gratitude to the staff and our
project guide Mr. Sreenivas of P&A, for his valuable guidance and co-operation in the completion
of my work.
In getting my professional career, I never forget the help and scholarly values, which I
received from the faculty of my department. I am extremely grateful to them for their valuable
suggestions and giving advice, co-operation and support in the completion of project work
successfully.
I am thankful to my parents, family members and friends for their encouragement and
support in the completion of project work successfully.
P.VENKAT RAO
CONTENTS
Chapter No Chapter Name pageno
I Introduction 1-5
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Grievance Handling
Objectives of the Study
About the topic
Need for the Study
Scope of the Study
Conceptual Frame Work
Methodology
Limitations
II INDUSTRY PROFILE. 6-13
III COMPANY PROFILE 14-25
IV PRESENTATION OF DATA 26-39
V ANALYSIS & INTERPRETATION 40-51
VI CONCLUSIONS 52
VII SUGGESTIONS 54
VIII FINDINGS 56
IX QUESTIONNAIRE 59
X BIBILIOGRAPHY 63
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5
Grievance Handling
CHAPTER 1
INTRODUCTION
6
Grievance Handling
INTRODUCTION
In the present day social context, especially in democratic systems, it is accepted that
employees should be able to express their dissatisfaction, whether it be a minor irritation, a serious
problem, or a difference of opinion with the superior over terms and conditions of employment.
In their working lives, employees occasionally have a cause to be uncomfortable,
disappointed or aggrieved either about certain managerial decisions, practices or service
conditions. It the dissatisfaction of the employees goes unattended or the conditions causing it are
not corrected, the irritation is likely to increase and lead to unfavorable attitudes towards the
management and unhealthy relations in the organization. The question ten is whether this
particular symptom or feeling is given any attention or its ignored altogether.
Putting forward grievances and discussing, even if they are not ultimately settled in the
employees favor, gives a worker the satisfaction of having communicated with, and been heard by
the management. The grievance procedure is one of the more important means available or the
employees to express their dissatisfaction. It is also a means available to management to keep a
check on relevant diagnostic data on the state of the organization’s health.
It is therefore essential for the management to allow individual employees to empress
dissatisfaction concerning their jobs or working conditions to an immediate superior. Is each
grievance seen as battle to be won, or is a problem-solving atmosphere cultivated. Only when an
atmosphere of give and take prevails-making possible a compromise solution-will the grievance
machinery be of value.
This project study, grievance handling at Ultra Tech Cement Co. Ltd, Tadpatri has evolved
to asses about the present way of handling the grievance and find whether there is need for a
7
Grievance Handling
grievance handling forum. The questionnaire has been designed in such a way kept in view, the
top management policies and various areas pertaining to HRD.
As such the study is neither highly derivative nor holding innovative in its nature and
scope. It also throws light on various light on various comments by the respondents and
suggestions recommendations made by me on the data collected. It is hoped that its limitations
will munificently appreciated.
The present study is divided into seven chapters.
The first chapter deals with introduction to Grievance handling at Ultra Tech Cement Co. Ltd,
Tadipatri.
The second chapter deals with contextual framework, which includes the need for the study,
objectives, and scope, theoretical framework, methodology, and limitations of the study.
The third chapter deals with the profile of the company.
The fourth chapter deals with the presentation of data, which includes my inferences and fining in
the unit along with data interpretation.
The sixth chapter deals with the necessary suggestions, conclusion drawn based on the data
collected on Grievance handling.
While the seventh chapter deals with the Appendix, which carry Questionnaire and Bibliography.
Thus, the present project work is an earnest attempt made to study the Grievance handling at Ultra
Tech Cement Co. Ltd, Tadipatri, I believe that this study, in its humble way, would certainly make
a mark of its own in the existing literature in the areas of management studies of its kind.
ABOUT THE TOPIC
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Grievance Handling
The given topic for the study is ‘Grievance handling’ at Andhra Pradesh Cement Works,
Tadipatri. The study has been conducted with an intention to assess the grievance handling
procedure in the organization.
NEED FOR THE STUDY
In the present corporate world the most important resources are human resource. There is
hardly a company where the employees do not have grievances of one kind or the other. These
grievances seriously disturb the employees. This may affect their morale. Productivity and their
willingness to co-operate with the organization. Ultimately, it affects employee’s concentration,
efficiency and productivity. A large number of work stoppages, shop floor incidents and strikes
could be attributed to the faulty handling or grievances.
The cost of a Grievance can be high in terms of time lost, poor work, damages to costly
machines by neglect, employee rese3ntment, poor customer service resistance to change, union
management conflict and so on. The organizations that do not provide such compliant processing
mechanisms for their employees may suffer from consequences, which could enfeeble the
organization process.
Effective grievance administration helps the management to shift from purely
preventive and maintenance needs to the developmental needs of employees such as
improving communication, job re-designing. Integration which corporate goals, etc.
Grievances must be settled as near as possible to the point of origin. Hasty actions, without
properly ascertaining facts, only help to aggravate the situation. Hence, it is better to have a
systematic grievance redressed procedure for redressal of day-to-day grievances is an essential pre-
requisite.
Objective of the Study:
To know how the present grievances are handled by the organization.
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Grievance Handling
To know w4hether the employees are satisfied with the present method of handling
grievances.
To know whether there is a need for a grievance procedure in the organization.
Scope of the study:
The scope of the study has been confined to the APCW, Tadpatri. A sample of 95
employees is studied.
The study was conducted for a period of 1 month during 1 jan to 31 jan 2007.
The study was made to know how the grievances are handled in the organization and
whether there is a need for a grievance procedure in the organization.
Limitations of the Study:
More employees could not be covered through personal interviews because they were
very busy with their work.
Some employees hesitated to give response to some questions, which are mentioned in
the questionnaire.
The study was confined to a restricted sample of employees. Hence, this analysis will
not reflect the entire of APCW.
The primary data inference through personal interaction with the employees may have
an element bias form the point of view of individual employees perspective.
10
Grievance Handling
CHAPTER 2
INDUSTRIAL PROFILE
Cement Industry has been decontrolled from price and distribution on 1st March 1989 and
de – licensed on 25th July 1991. However, the performance of the industry and prices of cement
are monitored regularly. Being a key infrastructure industry, the constraints faced by the industry
are reviewed in the Infrastructure Coordination Committee meetings held in the Cabinet
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Grievance Handling
Secretariat under the Chairmanship of Secretary (Coordination). The Committee on Infrastructure
also reviews its performance. The industry is subject to quality control order issued on 17.2.2003
to ensure quality standards.
Capacity, Production and Exports:s
India today boasts 129 large plants and over 300 mini cement plants with a capacity of 165
million tones and production of 134 million tones (2004-05).
It ranks second in the world among cement producing countries, with per capita
consumption at 118Kg compared to the world avg. Of around 317. Per capita consumption is 366
Kg in Thailand, 626 Kg in China, 606 Kg in Malaysia and 1216 Kg in South Korea. This indicates
a huge potential for increase in consumption.
The Cement Corporation of India, which is a central public sector undertaking, has 10
units. Besides, there are 10 large cement plants owned by various state Governments. Keeping in
view the past trends, a production target of 133 million tons has been set for the year 2006 – 07.
During the Tenth Plan, the Industry is expected to grow at the rate of 10% per annum and is
expected to add capacity of 40 – 52 million tons, mainly through expansion of existing plants and
use of more fly ash in the production of cement. A part from meeting the domestic demand, the
cement Industry also contributes towards exports. The export of cement and clinker during the last
three years is as under:-
Export of Cement
(In million tons)
Year Cement Clinker Total
2003 – 04 3.38 1.76 5.14
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Grievance Handling
2004 – 05 3.47 3.45 6.92
2005 – 06 3.36 5.64 9.00
2006 – 07
(Apr – Jan)3.31 4.82 8.13
Overview of the performance of the Cement Sector:
The Indian Cement Industry not only ranks second in the production of cement in the world
but also produces quality cement, which meets global standards. However, the Industry faces a
number of constraints in terms of high cost of power, high railway tariff; high incidence of state
and central levies and duties; lack of private and public investment in infrastructure projects; poor
quality coal and inadequate growth of related infrastructure like sea and rail transport, ports and
bulk terminals. In order to utilize excess capacity available with the cement Industry, the
Government has identified the following thrust areas for increasing demand for cement:
(i) Housing development programs;
(ii) Promotion of concrete highways and roads;
(iii) Use of ready – mix concrete in large infrastructure projects; and
(iv) Construction of concrete roads in rural areas under Prime Ministers
Gram Sadak Yolanda.
Technological advancements:
Indian cement industry is modern and uses latest technology. Only a small segment
of industry is using old technology based on wet and semi-dry process. Efforts are being made to
recover waste heat and success in this area has been significant.
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Grievance Handling
India is also producing different varieties of cement like Ordinary Portland
Portland_Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement
(PBFS), Oil Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland
Cement, White Cement, etc. Production of these varieties of cement conforms to the BIS
Specifications. It is worth mentioning that some cement plants have set up dedicated jetties for
promoting bulk transportation and export.
Infrastructure – driven demand push:
The bulk of cement demand is from housing and commercial
development of which metros account for a significant amount. It is estimated
that Mumbai, which consumes almost six million tones, along with Pune,
accounts for 45 percent of Maharastra’s cement consumption, Bangalore
consumes four million tones and Chennai around 3 million tones, “these are
really the growth clusters. Today bulk of the demand is driven by housing and
commercial construction and as infrastructure picks up, for example,
Bangalore International Airport, Hyderabad Airport and modernization of
Mumbai and Delhi Airports.
Another large consumer has been the roads sector. The off take was
good when the NHDP program was launched but there was a lull last year.
“Once again new orders have been placed and in 2008, the industry will pick
up. The estimate is that from roads, demand is not more than 4-5 million
tones but it makes a difference in the growth numbers”.
Narrowing demand-supply gap:
14
Grievance Handling
The industry has a capacity of 165 million tons and in Jan 2008,
dispatches were at almost 100%. On an overall basis, the industry does not do
more than 90-92% because of constraints such as transport and raw material.
The industry has been adding capacity of 6-7 million per annum by
Brownfield expansion and de-bottlenecking which is expected to partly cater
to the requirement because it is growing by around 20 million tons per annum.
Challenges before the industry:
Energy costs account for half of the cost of production of cement. Last
year saw a 15-16% increase in coal prices and then diesel prices went up
pushing up transportation costs.
Freight problems:
The importance of freight for the cement industry cannot be emphasized
enough. While in the last few months’ railways have been steadily losing
freight to road sector they have been confined cement to market-is around
Rs.350-400 a ton or Rs.20 and bag that could go as high a Rs.800 for long
leads. This would only easy the first level of sale and additional costs are
involved to take it further.
Another issue, which will hit the industry hard, is that of logistics and a
Supreme Court judgment on carrying capacity for trucks. Accordingly, a state
govt. has been directed to enforce the discipline that trucks only carry a
specified load. “Many states and already implementing this and there is
already an increase in freight rates and in some cases, it has gone up by 50%.
15
Grievance Handling
Also, the requirement for trucks to carry the same freight has nearly doubled
and in many places the industry is being forced to move to railways.”
High taxes :
While the railways have had capacity to meet the requirement, it is expected that in March
the commencement of peak season for the procurement of food grains, the railways would be
constrained to provide adequate number of wagons. “So fright rates are up, railways cannot
provide wagons and tucks are unlikely to be viable so there could be a serious dislocation of
supplies going forward.
According to the cement manufactures association total taxes and duties on cement come to
around Rs.900 a ton or Rs.45 a bag. “So at a price of Rs.150 a bag in the market, taxes and duties
account for one third: which is high for such a basic product? This includes excise duty, sales tax
and royalty on limestone.
The importance of limestone can only be underscored as for every ton of cement produced.
1.5tons of limestone is required. “For limestone, royalty is on a per ton basis at Rs. 40 whereas for
most minerals it is a percentage of the pithead cost. Effectively we are paying Rs.70 a ton for
limestone as royalty. VAT is at 12.5% without any justification and it should be in 4% category,
excise is at Rs.408 per ton when it should be around Rs.200.
Export Advantages:
From a modest beginning if 1.6 lakh tons in 1989-90, Indian exports of cement/clinker
have grown rapidly at about 30-40% and this year exports will cross 10 million tons.
Major cement producers – market shares
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Grievance Handling
Acc -12.8%
Abuja -10.7%
Grasim-10.4%
Ultra tech-9.5%
India cement-6.0%
Jaypee-4.1%
Lafarge-3.2%
Madras-3.2%
Overall, the industry is in a better state today than 2 years ago. “Cement prices even today are way
below global levels. So setting up Greenfield capacities is not attractive, as prices will not give
attractive returns on investment. That is a minor reason why there is no Greenfield capacity
coming up. It has to be born in mind that one third of the prices is accounted for by taxes and
duties and nearly 20-25% by the freight component. So what produces earn at the factory gate is
among the lowest in the world.”
This year 2008 has commenced on a good note and in fact, December was a very good
month wit dispatches at 12.5 million tons and January dispatches were in excess of 13 million tons.
“This means capacity utilization is in the nineties which is healthy and will actually lead to firming
up of prices. It looks like sales could be 137 million a ton for 2007-08(125 million tons in 2005-
06) and so far growth has been 10%. There are enough reasons to believe it will sustain.”
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Grievance Handling
CHAPTER 3
COMPANY PROFILE
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Grievance Handling
Company Profile
UltraTech Cement Limited was formed effective July 2004, with the demerger of Cement
Division from Larsen & Toubro Limited, and was taken over by the Aditya Birla Group and got
merged into A.V.Birla Group of Industries.
UltraTech Cement Limited:
UltraTech Cement Limited is a technology driven company with leading edge capabilities
in fields related to infrastructure and basic industries. In terms of main stream criteria viz., sales,
profit, assets and market capitalization, UltraTech Cement Limited ranks among top ten in India's
private sector. The company is also ranked high by less tangible yardsticks such as intellectual
capital and brand-worth.
UltraTech Cement Limited & its subsidiaries, has manufacturing facilities at 10 locations in
India and 3 Terminals including one at Srilanka. Almost all the factories have secured ISO-9001,
14001, 18001 (OHSAS) and other certificates of the highest order. UltraTech Cement Limited's
distribution and services out-reach underlines its strong customer orientation. The network
extends to virtually every district in the country. A concern for the environment is an integral part
of the company's vision. UltraTech Cement Limited is committed to growth in consonance with
the ecology and the needs of the communities it serves.
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Grievance Handling
UltraTech Cement Limited is India's largest cement producer, with a manufacturing capacity of
over 16 million tones per year. UltraTech Cement Limited manufactures and markets
Ordinary Portland Cement – 43 grade / 53 grade
Portland Blast Furnace Slag Cement
Portland Pozzolana Cement
Rapid hardening Portland cement
Sulfate resistant cement
UltraTech Cement plants are located at:
1. Awarpur cement works. Awarpur, Maharashtra
2. Hirmi cement works. Hirmi , Madhya Pradesh
3. Gujarat cement works. Kovaya, Gujarat
4. Andhra Pradesh cement works. Tadpatri, Andhra Pradesh
UltraTech Cement grinding units are located at:
1. Jarsuguda Orissa
2. Arakkonam Tamilnadu
3. Durgapur West Bengal
UltraTech Cement Limited Subsidiaries:
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Grievance Handling
Cement Plants:
1. Narmada Cement Company Limited Gujarat
Grinding Units:
1. Magdalla Gujarat
2. Ratnagiri Maharashtra
UltraTech Cement Terminals are located at:
1. Navi Mumbai Mumbai
2. Mangalore Terminal Karnataka
3. UltraTech-Ceylinco Srilanka
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Grievance Handling
Andhra Pradesh Cement works
The UltraTech Cement Limited, Andhra Pradesh Cement Works is located at 360 kms. South of
Hyderabad in the state of Andhra Pradesh in South India. Along with the grinding unit at
Arakkonam it has a capacity of 3.6 million tones of cement per annum. The plant is ideally suited
to cater to the markets in Andhra Pradesh, Karnataka, Tamilnadu and Kerala.
UltraTech Cement Limited selected TADIPATRI for setting up its Andhra Pradesh Cement Works
(APCW) because there is a huge limestone deposit and the quality of limestone is considered to be
extremely good. Also, other corrective/additive materials such as iron ore, latrite and gypsum
required in cement production are available nearby. In addition, Tadpatri is well connected by
22
Grievance Handling
railway line and roads. The Chennai-Mumbai railway lines run close to UltraTech Cement
Limited's plant.
A peculiarity of UltraTech Cement Limited's APCW is that its mines fall in Kurnool district while
the plant is in Anantapur District.
The cement plant's installed capacity is 2 million tones per annum (Mtpa). APCW project started
with a prospecting license in March 1992 followed by a mining lease in June 1993. When various
formalities were completed, action shifted from the drawing board to the project site with the first
association commencing in November, 1995.Due to excellent co-operation from the Government
of AP. APCW did not face much problems while setting up the plant.
This Plant has been set up with the coordinated efforts of all its business groups, which
minimized the problems during the execution stage.
Even the acute shortage of power in the state did not hamper the construction activities. The
construction was completed totally with the help of diesel generating sets. In view of the expected
power shortage, APCW is provided with two diesel generator sets of 24.6 MW (i.e., 2x12.3 MW)
which is around 60% of total power requirement of the plant.
Plant Capacity:
Even though the plant has started with an installed capacity of 6,000 TPD, later on the capacity has
been enhanced to 8000 TPD
APCW caters to the cement users in the southern part of India. It is ideally located as far as the
market is concerned.
23
Grievance Handling
Unique features of APCW:
1. Only cement plant in UltraTech Cement Limited, with a split location of entire main plant on top
of a hillock and the packing plant down the hill.
2. One of the plants using minimum energy for cement manufacturing.
3. Only plant where the entire cement-loading rake of 40 wagons can be placed
on one stretch constructed on engine on load concept.
3. The RCC chimney at the plant is the tallest in the Indian cement Industry.
4. It has two vertical raw mills (Atox 50) having a roller diameter of 5 M - these are the
biggest mills in the country.
1. First unit to implement computerized billing for cement loading.
Cement Machinery:
Complete range – from crushing to packing plants are supplied by Larsen & Toubro’s
Machinery Division, in Collaboration with F.L.Smitdth & co., Denmark.
Presently the largest capacity of 8000 TPD in a single line production in India.
Vertical roller mills for raw materials and cement grinding
Fuel-efficient pyro-processing systems
High pressure roller presses for cement mill for cement grinding
Modern Duoflex burner for efficient flame control.
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Grievance Handling
Hydraulic drive coolax cooler with new generation CIS cooler inlet.
Efficient Pollution control equipments like ESPs, Bag Houses and Reverse air Bag house at
appropriate locations
CEM scanner for kiln refractory management
QCX for meal blending and quality control
Fuzzy logic system for plant optimization
Cool scanner for monitoring coolax cooler
The plant is certified by DNV of Netherlands as an ISO 9001, ISO 14001 and OHSAS 18001
company. APCW manufactures Ordinary Portland Cement,
Portland Pozzolana Cement and Portland Blast Furnace Slag Cement, which is distributed through
a wide network of Authorized Stockists.
Man power
25
Grievance Handling
Based on requirement of individual departments, Head of that department is asked to give
information to man power planning department regarding the number of persons required. The
departmental heads assess their requirements based on the available departmental job description
to ensure role clarity and to avoid role ambiguity. The Central Personnel Dept. carries out the
recruitment process.
The total employees in APCW are 370 covering all departments. There are nearly 500 contract
labour working every day on casual basis.
Grades of Employees
Employees Grades
Wage Board Employees
Monthly Rated I to VII
Daily Rated E to A
Supervisory (S) S1 to M1
Officers M2 to M4
Deputy Manager, Senior Managers M5 to M7
AGM-Sr.DGM M8 to M10
JGM,GM,VP M11 to M13
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Grievance Handling
Details of Manpower Department- wise (updated upto 01.12.2007)
Sl.No. Department Total
1 Vice President's office 04
2 Personnel & Administration 29
3 Accounts & EDP 25
4 Mechanical 64
5 E&I 53
6 Captive Power Plant 18
7 Packing & Dispatch 19
8 Infrastructure 05
9 Mines 84
10 Materials 19
11 Production Analysis & Process Control 47
Total 367
Human Resources (HR)
UltraTech Cement Limited probably is the first organisation in India to introduce an integrated
HRD system in the year 1975 with the introduction of "Performance Appraisal Feedback &
Counseling System".
PA includes sub-systems like:
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Grievance Handling
٭ Potential appraisal
٭ Training &Development
٭ Employee counseling and
٭ Career Planning and Development.
People Management at UltraTech Cement Limited
"Employee Delight is the key to Customer Delight" is the conviction of UltraTech Cement
Limited.
UltraTech Cement Limited's residential management development center offers employees the
opportunities for Knowledge enhancement and learning through self-study and introspection. The
faculty is drawn from India's premier management institutes. UltraTech Cement Limited has also
found a place for itself as the only "Asian member of benchmarking forum for American Society
for Training & Development (ASTD). Self-learning facility comprising of programs on CD-
ROMS enables employees to work at their own place.
Recruitment & Selection
Recruitment sources include, advertisements given in newspapers and data banks, depending upon
the manpower requirements as stated by departmental heads, depending upon the number of
applications received, the qualification may be generalized (in case of very few applications).
Then, the persons with required qualification are interviewed. The interviewing panel comprises of
personnel officials in the department. If the applications are in large number they will be short-
listed according to the norms of the organisation.
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Grievance Handling
The wage board employees are assessed on factors like:
Technical Aptitude
English and
Critical Reasoning
All employees are kept under probation for a period of 6 months after joining and before their
services are confirmed on rolls.
The O&S cadre employees will be assessed on factors like:
Management Aptitude
Leadership Behavior
The recruitment of Diploma Engineering Trainees (DET) and Graduate Engineering Trainees
(GET) are done at Central Personnel Department once in a year through Campus Selections /
advertisements in famous newspapers. The recruited candidates are kept under probation for a
period of 2 years and then are absorbed to suitable cadre in the organisation. During the probation
period the absorbed candidates are sent to each department to get acquainted with the departmental
activities and then they are sent to the other units of UltraTech Cement Limited for proper
orientation in the respective fields.
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Grievance Handling
30
StackerCrusher
RM AdditivesBag
house
Raw Mill
CF Silo Coal Mill
CementSilo
CementMill
ClinkerStorage
CoolerKiln
6-StagePreheater
Packer
Truck Loading
Wagon Loading WagonTippler
Coal Stacker
Reclaimer
Process flow
Grievance Handling
CHAPTER 4
PRESENTATION OF DATA
31
Grievance Handling
Grievance handling through different committees at Ultra Tech Cement Co. Ltd, Tadpatri.
In their working lives, employees occasionally have cause to be uncomfortable,
disappointed or aggrieved about certain managerial decisions, either practices or service
conditions, the question then is where this particular symptom or feeling is given attention or is
ignored altogether.
An organization is like a family with strong bonds of giving. In addition, sharing. At Ultra
Tech, they are conscious of the fact that the employees who are dedicated lot contribute more to
organization success. In return, they feel that they must recognize and redress their grievances.
Therefore, they have a responsibility towards their employees and it was seen that grievances are
settled. Workers rights particularly with regard to grievance are protected through intervention of
different committees not only facilitate the employee involvement but also to solve the grievances.
Grievances are solved through three different committees.
Seva Committee
Safety Committee
Canteen Committee
Seva Committee: The objective of Seva Committee is two fold:
Speedy redressel of grievance complaints pertaining to employee welfare.
To create simple but authoritative routes for disposing o employee complaints i.e.
redress in the shortest possible time.
The functioning of the Committee will be on the following lines:
32
Grievance Handling
The committee shall meet at regular intervals and shall take necessary steps for
satisfactory redressal grievance.
Members cutting across hierarchical boundaries function within the scope, freely
airing their views in an atmosphere of harmony.
Canteen Committee: Canteen Committee is constituted as part of various participatory foray,
that exist in the organizanation. This committee has a statutory obligation under Factories Act.
The committee again consists of members representing all the hierarchical levels. The committee
meets at regular intervals to discuss inter-alia.
The quality of the tea and snacks served in the canteen.
Timings of supply of tea and snacks
Hygiene aspect in the canteen
Considering any dissatisfaction of the employees regarding canteen.
Some of the major initiatives taken by the canteen Committee are:
Introduction of new items as menu
Rotation of Menu
Providing Aprons, Sheaf Caps etc
5S implementation.
Safety Committee: Safety Committee is constituted to provide any safety steps at the working
environment. Safety committee will be continuously providing safety measures and training the
employees regarding safety. The grievances regarding any safety problem can be addressed
through safety committee.
The committee again consists of members representing all the hierarchical levels. The
committee meets at regular intervals to discuss about safety steps and the problems regarding
safety.
33
Grievance Handling
GRIEVANCE HANDLING
INTRODUCTION
When the employee’s expectations in the organization are not fulfilled, he would have a
grouse against employer, which is called grievance. A grievance can be defined as any discontent
or dissatisfaction with any aspect of the organization. It may be real or imaginary, legitimate or
not, said or unsaid, written or oral. However, it must find expression in some foreign or the other.
When a compliant, because of dissatisfaction remains unattended and the employee
concerned feels a sense of lack of justice and fair play, the dissatisfaction grows and assumes the
statues of grievance.
The International Labour Organization (ILO) defines a grievance as a complaint of one of
more workers with respect to wages and allowance, conditions of work and interpretation of
service conditions covering such areas as overtime, leave, transfer, promotion, seniority, job
assignment and termination of service. Grievance can be individual group grievances. If the issue
involved relate of one or a few individual employees it needs to be handled as grievance
procedure, on the other hand it general issued with policy implications and wider interests are
involved, they become subject matter fore collective bargaining.
CAUSES FOR GRIEVANCES:
Economic:
Wage fixation, wage computation, overtime, bonus, etc. Employees feel they are feelings
less that what they ought to get.
Work Environment:
Poor working conditions, defective equipment and machinery, tools, materials, etc.
Supervision.
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Grievance Handling
Disposition of the boss towards the employees, perceived notions of favoritism, nepotism,
bias, etc.
Work Group:
Strained relations or incompatibly with peers, feeling of neglect, ostrcisation and
victimization.
Work Organization:
Rigid and unfair rules: too much or too less work responsibility; lack of recognition, etc.
The following are some of the main causes for employee grievances.
1. Amenities
2. Compensation
3. Conditions of Work
4. Continuity of Service
5. Disciplinary action
6. Leave
7. Fines
8. Medical benefits
9. Nature of job
10. Payments
11. Promotions
12. Safety environment.
13. Superannuation.
14. Super session
15. Transfers
16. Victimization.
The above list is indicative and not comprehensive.
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Grievance Handling
The apparent cause, sources, or grievances may not always be the real ones.
EFFECTS OF GRIEVANCES:
Grievance can have several effects, which are essentially adverse and counterproductive to
organizational purposes. The adverse effects include.
Loss of interest in work and consequent lack of male an commitment
Poor quality of production
Low productivity
Increase wastage and costs
Increase in absenteeism
Indiscipline
Unrest, etc.
AWARNESS OF GRIEVANCES:
A good management redresses grievances as they rise, excellent management anticipates
them and prevents them form arising. A manager can know about the simmering even before they
turn into actual grievances through several means. Knowing about the levels of grievances is very
important to handle such grievance. Some of the important ways of discovering grievances are
discussed as hereunder.
DIRECT OBSERVATION:
A good manager must know how his subordinates behave in ordinary circumstances when
significant changes in the behavior occur, it is sure to affect performance. Absenteeism, lateness,
indifference, etc., are some of the forms in which discontent and dissatisfaction find expression. A
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Grievance Handling
careful analysis of grievance rates, accident rates, requests for transfer indiscipline, etc. may reveal
general patterns there are not easily discernible in the first instance.
GIRPE BOXES:
The gripe box is facility to file anonymous complaints about the various causes of
discontent and dissatisfaction in the organization. It is different from the suggestion seheme that
may be in vogue in a company. In this case, anonymity is assured and there is no reward of
punishment. The limited purpose is to let the management know what the employees feel without
fear of victimization.
OPEN DOOR POLICY:
Most organization preach open-door policy, but do not practice it. The policy is good and
democratic, but usually ineffective and at times counter-productive. Organizations would do well
to have a grievance procudere. If a grievance producer exists, open-door policy becomes
redundant.
EXIT INTERVIEW:
Employees usually quit organizations due to dissatisfaction or better prospects elsewhere.
It requires certain skill to know the real reasons for leaving the job. Exit interviews, if conducted
effectively, can provide vital information. Some organizations mail an exit questionnaire three
months after an employee leaves so that he need not fear about a poor reference and give the truth
without fear or favor.
OTHER CHANNELS:
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Grievance Handling
Group meetings, periodical interviews with employees, collective bargaining sessions are
some of the other channel through which one can have information about employee discontent and
dissatisfaction before they become grievance or disputes.
A grievances procedure can be voluntarily established by the management or installed
because of a collective agreement to that effect. Whether unionized or not, organization should not
wait for unions to raise their voice and use the strength in establishing a grievance procedure.
The purpose of grievance procedure is to let aggrieved employees know what to do if they
have a grievance and where to look for or appeal to check on arbitrary management decision by
providing for appeals in at least three levels above the level at which such grievances occurs.
However, the less frequently the high levels are used, the more effective they become promoter
fair and equitable treatment and personnel practices having regard to the rights of the employee.
The superiors will be more careful in their arbitrary use of our and authority assist in minimizing
discontent and dissatisfaction that they have adverse effects upon cooperation and productivity.
The details of a grievance procedure machinery may vary form organization to
organization, here; a four-stage model is suggested. The first and the last stages have universal
relevance, irrespective of the differences in the procedure at the intermediate stages. The four
stages of the machinery are briefly discussed here.
The level oat which grievance occurs; the best opportunity to redress a grievance is to
resolve it at the level at which it occurs. His immediate boss, the first-line supervisor, should
resolve a worker’s grievance. The higher the discontent rises through the hierarchy, the more
difficulty it is to resolve. By passing the supervisor would erode his authority. When the process
moves to a higher stage, the aggrieved employee and the supervisor concerned may shift their
focus to save face by proving the other wrong. The substantive aspect of any of the grievances
may this be relegated and dysfunctional aspects come to the fore thus making it more difficult to
settle the issue.
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Grievance Handling
In a unionized concern, the first stage of the procedure usually involves three people the
aggrieved employee, his immediate boss and the union representative in the shop department.
Supervisory role needs to be strengthened, with appropriate training in problem solving
sills grievance handling and counseling so that he can do mush in reducing the number of
grievance that are passed to higher stages in the machinery.
GRIEVANCE PROCEDURE;
The most important channel through which discontent and dissatisfaction can be
communicated is through grievance procedure. A grievance procedure provides an avenue and an
opportunity to give vent to his grievenees. The dilemma most managers face is whether and how
far they should encourage or discourage grievances. If management does not induce employees to
express their grievance, inions will dos so. Discouraging employees from expressing grievances,
inions will dos so. Discouraging employees from expressing grievances means ignoring
grievances. When they simmer and burst, management’s find it beyond their capacity to deal with
them adequately. Thus, it is important to have a grievance procedure to process grievance.
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Grievance Handling
A Model Grievance Procedure Suggested By National Commission on Labour
40
Voluntary Arbitration
Committee of Union and Management
Representatives
Manager
Grievance Committee
Foremen
Grievance Employee
Departmental Representatives
Head of the Department
Departmental Representatives
Supervisor
VI Stage within 7 days
V Stage Appeal to Management for revision
IV Stage communicates the decision within 7 days
II stage decision within 3 days
I stage answer to be given with in 48 hours
Grievance Handling
STEPS IN GRIEVANCE HANDLING:
At may stage of the grievance machinery, some members of the management must handle
the dispute. In grievance redressal, responsibility lies largely with the management. In addition,
as already discussed, grievances should be settled promptly at the first stage itself. The following
steps will provide a measure of guidance to the manager dealing with grievance.
Acknowledge Dissatisfaction: Managerial Supervisory attitude to grievances is important. They
should focus attention on grievances, not turn away from them, Ignorance is not bliss; It is the
bane of industrial conflict. Condescending attitude on the part of supervisors and managers would
aggravate the problem.
Define the problem: Instead of trying to deal with a vague felling of discontent, the problem
should be defined properly. Sometime the wrong complaint is given. By effective listening, one
can make sure that a true complaint is voices. Get the facts. Facts should be separated from
fiction. Though grievances result in hurt feelings, the effort should be go get the facts behind the
feelings. There is need for a proper record of each grievance.
Analyze and Decide: Decisions on each of the grievances will have a precedent effect. While no
time should be lost in dealing with them, it is no excuse to be slipshod about it. Grievance
settlements provide opportunities for management have to correct themselves, and thereby come
closer to the employees. Horse-trading in grievance redressal due to union pressures may
temporarily bring union leadership closer to the management, but it will surely alienate the
workforce away form the management.
Follow up: Decisions taken must be followed up earnestly. They should be promptly
communicated to the employee concerned. If a decision is favorable to the employee, his
immediate boss should have the privilege of communicating the same.
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Grievance Handling
PRINCIPLES GRIEVANCE HEANDLING: The fundamental principle of grievance handling
found in UTS policies and procedures reflect best practice in grievance handling. These principles
are:
Procedural and substantive fairness (rules of natural justice)
Confidentiality
Timeliness
Record-keeping
Transparency
1. Principles of Procedural Fairness Include:
A fair and impartial process.
The grievant should be informed of the process and the implications of making a formal
written complaint before proceeding.
The person against whom a complaint is made (the respondent) has the right to know
details of the complaint against them.
The respondent has the right to put their side.
Before they respond, the respondent has a right to know the implications for them in terms
of disciplinary action if the complaint is proven.
The grievance handler should be fair, impartial and unbiased in their investigation. If there
is a conflict of interest, the matter should be refereed to another grievance handler or
internal unit.
Principle of substantive fairness include:
The grievance handler should not assume guilt. They should determined that the complaint
is substantiated only after hearing form both all sides, checking other relevant evidence,
and taking into account any mitigating circumstances.
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Grievance Handling
2. Principles of confidentiality include:
Grievance should be able to raise a complaint and get advice in confidence.
A complaint should not be referred elsewhere, formally investigated or discussed with
others without the grievance consent.
You cannot act on an anonymous grievance (expect in relation to anegations of child abuse
or corruption)
Generally, procedural fairness requires that the respondent knows who was lodged the
grievance.
You must ensure confidentiality or records.
3. Principles of timeliness include:
Delays at any stage of the grievance procedure and result in a denial of procedural fairness.
Delays determined in the grievance can be critical in any appeal.
Delay in addressing issuers in a compliant can lead to the exacerbation of the situation a
continuation of the problem, a worsening of the relationship between the parties involved,
an increased distress for all parties.
Delays can also result in more time being expended in dealing with a grievance once action
is taken because the situation has escalated.
4. Principles of record keeping include:
You must keep records to avoid relaying on your memory about details of allegations,
responses and actions.
Records can be used for statistical purposes to identify systemic problems.
Records can substantiate procedural fairness in the event of an appeal against process or
outcome of grievance investigation.
If the allegations are complex or serious, record the complaint, the response, and the
evidence of witnesses and ask the parties to sign.
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Grievance Handling
5. Principles of transparency are related to procedural fairness, and include:
Effective implementation of UTS policies and procedures.
Effective communication to all parties about relevant polices and procedures.
Effective communication to all arties of the outcome, of reasons for the outcome and,
where appropriate, the evidence which was relied upon.
Principle of openness, honestly and fair dealing.
Fair and accurate reporting if the case is referred to internal units or mangers that are more
senior.
Fair and accurate reporting particularly where disciplinary action is likely to result.
Role of Personnel Department:
Grievance handling is not a monopoly of a specialist or of a functional department. The
role of personnel department in this regard should be:
To devise a sound grievance procedure which can serve as an effective upward
communication in the organization.
To advice the line people about the importance of a sound grievance handling system and
its implementation.
To train the staff peoples especially the front line superiors, in effective grievance handling
and consoling skills.
To maintain records to the activities of the grievance committee such as meetings held,
actions taken and implemented.
To take necessary follow up action, review the procedure, and it necessa4y, modify the
existing procedure to suit the changing circumstances; and
To follow up individual cases of grievance settled and identify its effect on the concerned
individual worker and its impact on other employees of the organization.
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Grievance Handling
CHAPTER 5
ANALYSIS & INTERPRETATION
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Grievance Handling
T. 1. Since how many years you are working in this company.
Years 0-3 4-6 6-9 10 and above
Respondent 10 15 20 5
Percentage 20 30 40 10
Interpretation:
The above diagram reveals that 20% of the employees are working from last 0-3 years and
30% of the employees are working last 4-6 years 40% of employees are working from 6-9 year
and 10% of the employees are working above 10 years
This shows that the highest employees working 4-6 years
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Grievance Handling
T.2. Weather any time –frame is set for the resolution of grievance handled to .
ResponseYes No
Respondents50 0
Percentage100 0
Interpretation:
The employees are told that ,there are specific time-frame for the resolution of grievance
handling .100% of employees are told that the specific time for grievance handling
This is shows that the most of the employees of organization follow by the time frame
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Grievance Handling
T.3.Together your superiors are aware of different grievance.
Response Yes No
Respondents 30 20
Percentage 60 40
Interpretation:
The above diagram shows that there 60% of employees are told that, superiors are aware to us when
arise of different grievance. Handling and 40% of the employees are told that superiors are do not aware
when the different grievance are arise
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Grievance Handling
T.4.Does all the committees in your organization participate in grievance procedure activity.
ResponseYes No
Respondents35 15
Percentage 7030
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Grievance Handling
Interpretation:
The above graph shows that shows that there are 70% of the respondents told that, different
comities of organization participate in grievance handling procedure activity. And 40 of responds
told that different committee of organization do not participate in grievance handling procedure.
This is shows that most of the employees participate activity.
T.5 Tick the area in which grievance are effectively handled in your organization.
Reponses EconomicWork
EnvironmentSupervision Work Group
Respondents 10 17 13 10
Percentage 20 34 26 20
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Grievance Handling
Interpretation :
The above chart reveals that there are 20% of the employees agreed that the economic process is
effectively work in handling a grievance and 34% of the respondents are agreed that , work
environment place a crucial rule in handling a grievance and 26% of the respondents are told that
the good supervisions also place are major role in effective grievance handling process and 20% of
the respondents are agree that in handling grievance effectively, the work also play’s a major role.
This is shows that main point of grievance handling are effectively work environment in
the organization.
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Grievance Handling
T.6 What proceger follow by the organization for famishment.
Response Issuing
Charge sheet
Notice of
enquiry
Finding and
disiplnaryauthority
If any other
Respondents 13 15 12 9
Percentage 26 30 24 18
Interpretation :
The above information reveals that 26% of the employees are agreed that the organization
follow a process for punishment of employees by issuing of charge sheet and 30% of employees
told that the organization follow a process for punishment by notice of enquiry. 24% of employees
reveals that the organization follow a process for punishment by findings & disciplinary authority
and 18% of the employees agree that the organization follow a process for punishment by any
other ways.
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Grievance Handling
T.7 Tick the following ways of discovery of grievances .
Response Direct
observation
Open door
polocy
gripebox Other
chanels
Exit
interview
Respondents 16 9 11 7 8
Percentage 32 18 22 14 16
Interpretation :
The above information reveals 32% of employees agreed that the grievance is discovered
by direct observation and 18% of respondents agreed that the grievance is discovered by open door
policy. 22% of employees are reveals that the grievance is discovered by gripe box and 14% of
employees agreed that the grievance is discovered by using of exist interviews and 14% of
employees said that the grievance is discovered by using of various channels.
This is show that most of the discovery of grievance by the direct observation.
T.8 Are all the grievanceput in writting.
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Grievance Handling
Response Yes No
Respondents 20 30
Percentage 40 60
Interpretation :
From the above diagram, there are 40% of the employees are told that the grievance is put
in writing and 60% of the employees are told that the grievance is do not put in writing.
This is show that the most of employees not writing.
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Grievance Handling
9. Does the employers is given free time to pursue his grivence .
Response Yes No
Respondents 28 22
Percentage 56 44
Interpretation :
The employees are given their answer for the above question. There are 56% of the
employees are having a free time to pursue his grievance and 44% of the employees are does not
have a free time pursue his grievance.
This is show that the most of the employees taken free time.
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Grievance Handling
T.10 Most of the grievance are solved by..
Response Management Union Leaders Arbitrator Any other
Respondents 28 11 5 6
Percentage 56 22 10 12
Interpretation :
The above chart reveals that 56% of the employees agreed that the management play’s a
major role in handling a grievance and 22% of the employees are said that the union leaders also
play’s a major role in handling in grievance and 10% & 12% of the employees are agreed that
sequentially arbitrator & any other.
This is show that the most of the grievances solved by the management.
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Grievance Handling
CHAPTER 6
CONCLUSION
Conclusion:
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Grievance Handling
Overall the present way of “Grievance Handling” a Ultratech Cement Limited, A.P.
Cement Works, is satisfactory. However, there are certain grievances, which cannot be addressed
through the present procedure so a need for a grievance handling forum in the organization is
required , 88% of the employees agree the above statement and only 22% of the employees
disagree to it, By comparing these percentages, I can conclude that there is need for a grievance
handling forum in the organization.
Feedback on Project Work:
During the project work I got a good response from all the employees of Ultratec
Cements Ltd.,
Due to time constraint, some employee’s opinions in the mines are missed.
I got good response form all the employees of packing and distribution section. I got
good industrial experience from this curriculum project work.
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Grievance Handling
CHAPTER 7
SUGGESTIONS
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Grievance Handling
SUGGESTIONS:
Management should consider introduction of unit level grievance handling system.
Superiors should be trained to handle the grievances effectively.
There should be feed back system on grievance redressal.
Seva Committees are considered to be the best grievance handling system in the
organization. More focus should be drawn to improve its efficiency and effectiveness.
Grievances are to be solved whenever they are at the budding stage.
Management should handle the grievances with out delay.
The employees in the organization felt the need for a separate structured grievance
handling system.
Grievance can amicably solved through mutual dialogue with the employees with an open
mind and transparent in dealing certain issues
All segments of the employees should be equally represented to take part in the grievance
handling committee.
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Grievance Handling
CHAPTER VIII
FINDINGS
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Grievance Handling
FINDINGS;
Most of the employees of the employees feel that there are grievance handling forum in
the organization, but at the same time half of the employees agree that there are no
suitable grievance handling forums in the organization.
Employees feel that there are certain grievances, which cannot be addressed through the
existing committees.
It should be seen that grievances are handled without making any delay as of the
employees feel that at present grievances are handled with delay.
It should be seen that Grievances should be settled as near as possible to the point of
origin before they turn up into serious disputes.
As the employees feel that grievances are being postponed on kept pending it should be
seen that it might not happen as this intern may turn up into another grievance.
The employees feel that the present system of redressing grievance is simple but some
of the employees are feeling inconvenient with the present redressal procedure.
Most of the employees are satisfied with the current frequency of redressal of
grievances.
Only Max of the employee feel that the present redressal procedure to flexible in nature
and half of them are not satisfied.
Care should be taken that grievances should be reduced at work place and welfare
activities at most of them agree that they arise from the above areas.
It is observed that there does not exist any feed back on grievance redressal in the
organization. As half of the employees agrees.
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Grievance Handling
Most of the employees agree that there are grievances regarding individual career
advancements.
Most of the employees fee that there is a need for grievance redressal forum.
Maximum number of the employees feel that supervisors are to be trained to handle the
grievance.
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Grievance Handling
QUESTIONNAIRE
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Grievance Handling
QUESTIONNAIRE
GRIEVANCE HANDLING
Name :
Department :
Date :
1. Since how many years you are working in this company
1. 0-3 years 2. 4-6 years 3. 6-9 years 4. 10 and above years
2. Whether any time –frame is set for the resolution of grievance handled to
Yes or No
3. Together your superiors are aware of different grievance
Yes or No
4. Does all the committees in your organization participate in grievance
procedure actively?
Yes or No
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Grievance Handling
5. Tick the area in which grievance are effectively handled in your organigation
1.Economic 2.Work environment 3.Supervision 4.Work group
6. What procedure follow by the organigation for punishment.
1.Issuing chargesheet 2. Notice of enquiry 3.Finding / disiplanary authority
4.If any other
7. Tick the following ways of discovery of grievances.
1.Direct observation 2. Open door policy 3. Gripe box 4.Exit interview
5. Other channels
8. Are all the grievance put in writing.
Yes / No
9. Does the employee is given free time to pursue his grievance .
Yes / No
10. Most of the grievances are solved by
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Grievance Handling
1. Management 2. Union leaders 3. Arbitrator 4. Any other
BIBLIOGRAPHY
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Grievance Handling
BIBLIOGRAPHY
Personnel Management by Arun Monappa and Mirza S. Saiyadain
Industrial relations – conceptual and legal frame work by A.M.Sarma
Dynamics of Industrial Relations in India by C.B. Mamaoria and S. Mamoria
Human resource development by P.C. Tripathi
Management and Organization Behaviour by P. Subba Rao.
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