Human Resource Management Unit 12

Unit 12 Employee Relations

Structure:
12.1 Introduction
Objectives
12.2 Concept of Employee Relations
Features of employee relations
Strategies to improve employee relations
12.3 Managing Discipline
Types of organisational discipline
Basic ingredients of a disciplinary action
McGregor’s hot stove rule
12.4 Managing Grievance
Causes of grievance
Pre-requisites of a grievance procedure
12.5 Employee Counseling
Objectives of employee counseling
Need for employee counseling
Types of employee counseling
12.6 Summary
12.7 Glossary
12.8 Terminal Questions
12.9 Answers

12.1 Introduction
In unit 10 and 11, we have learnt that for any service done by the employee,
it has to be compensated in terms of monetary and non- monetary benefits.
However, financial benefit is not the only factor that an employee looks for in
the organisation. Any employee would also look out for good relationship
with the people they are working with. They would also need people to talk
to, discuss ideas with each other and share their happiness and sorrows.
The work environment should be cordial and with minimum conflicts. Not
only should employees have good relationship with the fellow workers, they
must also be recognised and appreciated by the management. This is
where employee relations come into the picture.

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Employee relations refer to activities that help in maintaining employer-

employee relationships which contribute to satisfactory productivity,
motivation and morale. Basically, ‘employee relations’ deals with preventing
and solving problems that either originate out of or affect work situations.
Maintaining good employer-employee relationships also include setting out
rules and regulations that help in maintaining discipline and avoiding
misconduct. It is also necessary to be impartial and have a uniform code of
discipline for all the employees so that all of them are aware about the
acceptable behaviour in the organisation. Most of the organisations these
days also focus on helping employees resolve issues. Some organisations
have a full-time employee counsellor who helps the employees resolve
problems by themselves.
The ‘TajMahalPalace’ case below describes how maintaining good
employer-employee relations help an organisation even in the toughest
situation.

Employee relations at the TajMahalPalace, Mumbai.

On 23 September 1983, a few hundred employees of the Taj (Mumbai)
expressed their unhappiness by setting fire to a few sofas in the lobby,
breaking furniture and shouting anti-management slogans. Soon after,
the then chairman of the company, J.R.D. Tata called an emergency
meeting asking for the causes.
Through analysis of the situation it was found that of the 724 striking
employees, over 90percent were from departments such as laundry,
maintenance, kitchen stewarding and housekeeping, who were hardly
ever visited in their work place by the top management. They felt that the
recognised union was pro-management. A non-representative union and
a near absent internal communication channel to express their just
grievances had led to their aggressive outburst.
The HR team, then worked on improving the relation between
management and employees. Face to face interaction with the
management, taking care of employee needs and a prompt grievance
management was soon developed.

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It also incorporated a recruitment system that hired for character and not
for grades; training programmes that not just mentored employees but
also empowered them to take decisions and a reward programme that
recognises employees on a real-time basis.
Within a few years, the TajMahalPalace hotel enjoyed the very best of
employer-employee relations in all of the hotels. Unauthorised
absenteeism reduced to less than 2percent, every hotel had its own
separate union (some with political links), complemented by human
resources (HR) team that provided an effective, internal channel for
grievance anticipation and counselling. Employee attrition reduced and
customer satisfaction improved, with significant impact on both top line
and bottom line.
During the terror attack in November 2008, employees forsook their own
safety, trying to safeguard the guests. Despite knowing the secret routes
and seeing bloodshed everywhere, the sense of responsibility and
ownership among the employees stood out, which was highly exemplary.
[Source:http://www.livemint.com/2011/11/13222937/The-Maruti-strike-
amp-an-old.html (Retrieved on 23rd November, 2011)]
Objectives:
After studying this unit, you should be able to:
 explain the concept of employee relations
 define the concept of discipline
 discuss the concept of grievance
 discuss the concept of counselling

12.2 Concept of Employee Relations

Employees spend maximum time at their workplace. They spend the
maximum number of hours in a day with their fellow workers. No employee
can work alone. It is important for employees to have cordial relationships
with colleagues. Conflicts and misinterpretations increase tensions and in
turn decrease the productivity and satisfaction level of the individual. At
workplace one needs to carry out a number of activities and requires the
guidance and recommendations of other colleagues to arrive at a solution
that would be beneficial for both the individual and the organisation. We all

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need the support of our fellow workers to come out with innovative and
brilliant ideas and to deliver our best.
Employee relations is a broad term used to refer to the general
management and planning of activities related to developing, maintaining
and improving employee relationships by communicating with employees,
processing grievances or disputes etc.
David Farnham defines employee relations as, “that part of managing
people that enable competent managers to balance, within acceptable
limits, the interests of employers as buyers of labour services and those of
employees as suppliers of labour services.” He also further clarifies that the
major responsibility for maintaining good employee relations is to set up
appropriate institutions, policies and rules that also help in preventing
unnecessary conflicts and grievances.
The major players of employee relations are individual employees, individual
employer, employee unions, employers’ associations and also some
voluntary organisations.
Employee relation is a proactive approach, trying to minimise conflicts and
encouraging good employee relationships rather than focusing only on
solving conflicts after it occurs. It requires more management and planning
adequate measures so that there is good communication between employer
and employee, which itself can clear many uncertainties that are in the
minds of the employees.
12.2.1 Features of employee relations
Employee relations in any organisation have certain features. Some of the
important features of employee relations are as follows:
(a) Employee relations refer to the relationship shared among the
employees in an organisation.
(b) Every possible attempt is made to get adjusted with others, easily and
promptly.
(c) It emphasises on communication between employer and employee.
(d) It discourages and tries to minimise conflicts.
(e) It sets rules and regulations related to the right behaviour in the
organisation.
(f) It sets the disciplinary action procedure in case of any misconduct.
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(g) It tries to create positive organisation climate.

(h) It ensures safety at workplace.
(i) It suggests measures that an employee can take in case of any
grievance.
(j) It helps in reducing and preventing organisation problems such as
absenteeism, alcoholism etc.
It is of supreme importance that employees should behave with each other
in a cultured and civilised way, respect one another and learn to trust each
other. An individual, however hardworking cannot do wonders alone. All the
employees must enjoy a cordial relationship with each other; understand
each other’s needs and expectations and also work hand-in-hand to
accomplish the goals and targets of the organisation.
12.2.2 Strategies to improve employee relations
It is rightly said that the success and failure of an organisation is directly
proportional to the relationship shared among the employees. It is important
for employees to maintain cordial relationship with the colleagues; else it will
result in conflicts as well as an unpleasant work atmosphere. However, the
task of maintaining good relations is not easy. It requires careful planning
and good analysis of the organisational situation. Some of the strategies
that the organisations follow to improve their employee relations are given
below:
i. Clarity of organisational principles – Every organisation must
ensure that their vision and values are well communicated to the
employees. The organisational and personal values and principles of
the employees must not be in conflict as this will lead to discontent
among the employees.
ii. Involvement of the team members: Before any decision is made by
the manager, he must let the team members be aware of it and at the
same time, must encourage them to give their opinions. This also
encourages employees to feel responsible and respected.
iii. Fair treatment: All employees want to be treated fairly. Managers and
employers must ensure that personal biases and prejudices should not
influence while making crucial decisions about employees.

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iv. Provision for feedback: Employees must be encouraged to share

their opinions, views and ideas with their superiors. They must also be
encouraged to share their problems and concerns. This helps
employees in developing a sense of belongingness to the
organisation.
v. Written mode of communication: When it comes to formal
communication, it is always better if managers resort to written
communication so that it is clear and transparent to all employees.
Policies, rules and regulations must be communicated through written
documents. This also promotes trust among the employees.
vi. Face- to –face communication: Face-to-face communication with the
employer has the maximum impact on any employee. It is important
that organisations promote direct meetings of the employer with the
employees. It could be a formal or informal meeting.
vii. Fair disciplinary actions: In case any employee has committed an
offence, there must be adequate and fair disciplinary action. Once the
offence is punished for, the organisation must ensure that the
employee is not harassed any further by others.
viii. Recognition of employee associations: When employee unions and
associations are recognised by the organisation, then the chances for
friction between the two parties are lesser. Recognition of employee
associations also encourages their participation and involvement in
management decisions.
ix. Employee support: Employees also wish for support from the
organisation to balance their work and family needs. Sometimes,
family issues, occupational stress can result in poor performance and
poor relationship at workplace. To combat this, organisations provide
various employee services such as in-house yoga and meditation
facilities, gym, counselling services etc.
Self Assessment Questions
State whether the following statements are true or false
1. Employee relations refer only to the relationship between employees in
an organisation.

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2. Employee relations look only at solving employee problems after it has

occurred.
3. Written communication from the management promotes trust among
employees.

12.3 Managing Discipline

Discipline is often looked at as a negative element in dealing with people in
organisations. However, establishing a sound disciplinary process that starts
with education in the appropriate behaviours and performance is one of the
key approaches of creating a culture of self-discipline. Managers must
possess the skills of holding others accountable. This may include taking
corrective actions in the case of continuing performance or behavioural
problems.
According to Dr. Spriegel, “Discipline is the force that prompts an individual
or a group to observe the rules, regulations and procedures which are
deemed to be necessary to the attainment of an objective; it is force or fear
of force which restrains an individual or a group from doing things which are
deemed to be destructive of group objectives. It is also the exercise of
restraint or the enforcement of penalties for the violation of group
regulations.” Ordway Tead defines discipline as, “the orderly conduct of
affairs by the members of an organisation who adhere to its necessary
regulations.”
12.3.1 Types of organizational discipline
Organisations enforce discipline to ensure that the organisational activities
move in a smooth manner without any friction. By enforcing disciplinary
procedures and rules, it tries to create an environment that is conducive to
work. Different organisations follow different types of discipline.
Discipline can be classified on different basis. Based on methods of
implementation of disciplinary measures we can classify organisational
discipline as:
i. Preventive discipline: This form encourages employees to follow rules
and regulations. It emphasises on employee self-discipline. Employees
are educated on policies and rules of the organisation.

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ii. Corrective discipline: In this form of discipline, action is taken to

correct employees who violate rules and procedures. Usually a penalty
is imposed. It aims at discouraging future violations.
Based on rewards and punishments for employee behaviour, we can
classify organisational discipline as:
i. Positive discipline: Positive or self-imposed discipline refers to
rewards, appreciation, incentive payments and promotions to motivate
employees to work willingly and competently by extending their
support to management. Positive discipline emphasises the concept of
self-discipline and self-control.
ii. Negative discipline: Negative or enforced discipline on the other
hand, refers to that system where people are forced to obey the orders
and perform their task according to the rules and regulations of the
organisation. Failing in doing so, the employees face penalties and
punishments.
12.3.2 Basic ingredients of a disciplinary action
A sound disciplinary action procedure is required in every organisation to
ensure that the employees stick to the rules and regulations. At the same
time, it provides clear idea to the managers as to the action that can be
taken for different kinds of offences committed by the employees.
The basic ingredients of a sound disciplinary system are:
a) Location of responsibility – The responsibility for maintaining
discipline should be entrusted to a responsible person i.e., a Line
Executive or directly to the HR Manager. In serious cases where
discharges or suspensions are to be made, the Employee Relations
Officer should be consulted.
b) Proper formulation and communication of rules – To expect
conformation of rules and regulations from employees, management
should properly formulate and communicate the decided rules and
regulations. These guidelines should be given in employees’ handbooks
or should be placed on the notice boards and bulletin boards.
c) Rules and regulations should be reasonable – The rules and
regulations should be logical and reasonable enough to be followed. If
an employee is to be punished for not producing the standard number of

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units then the supervisor should first determine whether such standard
was attainable or not.
d) Equal treatment – The theory of equal justice to all should be practiced
by the management. Irrespective of position or seniority of the
employee, identical punishment should be awarded for identical
offences. If one person is punished for an offence and the other does
not for the same offence just because the person is in the
management’s good books, then this may create a bad impression.
Therefore, supervisors should make sure that rules and penalties are
applied equally to everyone.
e) Disciplinary action should be taken in private – The main objective of
a disciplinary action should be to punish the wrong actions and not the
doer. If a disciplinary action is taken in front of other employees, then the
employee’s sense of dignity may get offended. Such actions may raise
resentment among the employee and his fellow-workers which in turn
disturbs the overall climate of the organisation.
f) Importance of promptness in taking disciplinary action – “Justice
delayed is justice denied” emphasises the importance of timely action. If
the punishment is imposed long after the violation of rule has been
committed, it loses its positive and corrective influence. It may even
induce bitterness which may not have risen if the punishment had been
imposed on time.
g) Gathering the facts – Before taking any disciplinary action and
reaching to a final decision, one should ensure that all the records of
offences have been collected. The concerned employees should be
given a chance to speak about their part and then maybe witnesses
also should present what they had observed. Decision taken after going
across all facts and information will be satisfactory to all the concerned
parties.
h) Action should be taken rationally - Action should never be taken when
a person is angry. Decisions taken emotionally may not be just or right.
Rational and sensible judgement must be made to ensure that the
punishment is only for the offence.
i) During post disciplinary action, superior should treat their
subordinate in a normal manner – The attitude of a supervisor should

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be to ‘forgive and forget’. The employee has already been punished for
his actions; now he should be treated as normally as earlier and as
equally as other employees in the organisation.
12.3.3 McGregor’s‘Hot Stove Rule’
One of the toughest tasks for a manager is to impose a disciplinary action
against an offending employee without generating bitterness from the
offender and other employees. Hence, a question arises as to how to
impose discipline without generating resentment? This is possible through
what Douglas McGregor called the ’Red Hot Stove Rule’, which draws a
comparison between touching a hot stove and undergoing discipline.
According to the Red Hot Stove rule, disciplinary action should have the
following consequences:
(a) Immediacy: Just as the penalty for touching the hot stove is immediate,
i.e., immediately burning of fingers takes place, similarly penalty for the
act of indiscipline should be immediate. Delay in decision making can
harm the organisation and also affect the morale of other employees.
(b) Forewarning: Just as you move closer to hot stove, you are warned by
its heat that you will be burned if you touch it; similarly, it is important for
organisations to keep the employees warned about the punishment that
will follow when there is unacceptable behaviour from them.
(c) Consistency: When you touch a hotstove, it always burns you. It does
not burn you only when you touch it in the morning or evening. Similarly
disciplinary action should also be consistent.
(d) Impersonality: The hot stove will burn the touched part of the body
equally even if it is touched by a small child, beautiful lady or an old
man. Similarly, while carrying out disciplinary action, there should be no
marked difference in the penalty. Personal biases and favouritism
should not influence the action. The disciplinary authority should neither
be happy nor sad after punishing the defaulter in order to maintain
discipline in the organisation and to train for right conducts.

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Activity 1:
Talk to two friends working in different organisations. Ask them about
the procedure for disciplinary actions followed in their organisations.
Prepare a report comparing the disciplinary action procedure followed
in both the organisations.
Refer: Section 12.3

Self Assessment Questions:

Match the following
4. Immediacy a) No discrimination for punishment.
5. Forewarning b) Punishment to be given immediately.
6. Consistency c) Warn employees before punishment.
7. Impersonality d) Same punishment for the same offence.

12.4 Managing Grievance

Personnel experts have distinguished between complaints and grievance.
The state of dissatisfaction which is orally made by one employee to another
is known as a complaint. When this complaint is brought to the notice of
management, it then takes the form of a grievance.
According to Jucius, “a grievance is any discontent or dissatisfaction,
whether expressed or not, whether valid or not, arising out of anything
connected with the company which an employee thinks, believes or even
feels to be unfair, unjust or inequitable.”
Employee grievance must be well managed as most grievances disturb
employees seriously. If it is unresolved, then the feeling of discontent
increases and it directly affects the employee productivity and the
willingness to co-operate.
Having a strong grievance management system ensures that there is a
mechanism whereby employees can let out their frustrations, concerns and
discontent. Employees must be educated on the grievance handling
mechanism at the organisation and at the same time the managers must be
educated on how each issue can be handled.
The Johnson and Johnson India case mentioned describes the best practice
followed in the company to redress grievances among the employees.

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Johnson and Johnson India has a unique employee grievance redressal

system. It provides an anonymous grievance redressal hotline, which allows
employees to highlight any issues or actions that they think are against the
values of the organization. The hotline is managed by a third-party vendor to
ensure that there is no possibility of bias or coercion and a report is
presented to the management each month for suitable action.
[Source:http://economictimes.indiatimes.com/news/news-by-
industry/jobs/best-companies-to-work-for-2011-companies-ranked-from-31-
to-40/articleshow/8964695.cms (Retrieved on 2ndFebruary, 2012) ]
12.4.1 Causes of grievances
There is no single factor that may cause a grievance. Many factors may
combine together to generate a grievance. Employee grievances could be
due to the following reasons:
i. Grievances related to inadequate wages, incentives, increments and
unfair compensation offered to other employees.
ii. Complaints against a particular employee or supervisor or subordinate.
iii. Complaints concerning disciplinary measures and procedures.
iv. Grievances related to unfair promotions, transfers or change of
locations.
v. Unsatisfactory rules and policies of the organisation.
vi. Inadequacy of health, safety and welfare services.
vii. Unsatisfactory conditions of workand inadequate materials and
equipment.
viii. Grievances related to work timing, shifts and schedules.
ix. Grievances related to improper job assignments.
x. Grievances related to employee recognition.
12.4.2 Pre-requisites of a grievance procedure
Grievances can be individual or shared. However, every organisation must
take effort to ensure that the grievance is resolved at the earliest. Any
discontent let to grow in the organisation can damage the organisation in the
forms of accidents, destruction of property or even a downfall in productivity.
While formulating a grievance management procedure, the HR department
must ensure that all aspects are included and the basic requisites are met.

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Let us now see the pre-requisites of a good grievance handling procedure.

They are as follows:
a) Conformity with existing legislation – Wherever possible, attempts
should be made to complete the grievance procedure in the given time
when the order has been issued. The procedure of grievance should be
designed in such a way that it supplements the existing statutory
provisions and should make use of such machinery as is already
provided by the legislation.
b) Clarity – There should be clarity regarding the grievance procedure.
The employees must know how they can express their discontent and
also to whom it has to be addressed. Authorities should be designated
at various levels so that employees know whom to approach at time of
grievance. It needs to be classified whether a grievance is arising from
personal relationships or from conditions of employment.
c) Simple and expeditious – Any grievance procedure framed must be
simple enough for an employee of any level to understand. Attempts
should be made to settle all the disputes at the lowest possible level.
The dispute should be solved at the very first appeal so that it is not
taken up to more than two levels of organisational hierarchy.
d) Promptness – Any discontent expressed by the employee must be
looked into immediately. The trust in the grievance management system
can be ensured only if the concerns of the employees are resolved at
the earliest and in the simplest manner.
e) Training – Employees and supervisors must be trained on the
grievance procedure. This helps in reducing the delay and at the same
time it provides clarity. The Employee Relations Officer may be given
special training on handling complicated employee issues.
f) Feedback – Not only should the concerns of the employee be
addressed, but also a feedback must be taken from the employee. This
helps in finding out if the employee is satisfied with the mechanism. It
also helps out in knowing the shortcomings of the system and
incorporating better actions to resolve issues.

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Self Assessment Questions

State whether the following statements are true or false
8. Grievances arise among employees with issues related to only
inadequate wages and incentives.
9. Employee grievances must be addressed immediately.
10. Employee grievance should always be based on facts.

12.5 Employee Counselling

Employee counselling is a process where a professional counsellor helps
employees sort out problems by themselves. . It is an enabling service.
Counselling is required for employees who are stressed out of problems,
personal or professional. Smith defines counselling as “a process in which
the counsellor assists the counselee to make interpretations of facts relating
to a choice, plan, or adjustments which he needs to make.”
Pepinsky and Pepinsky states that “counselling is that interaction which
occurs between two individuals called counsellor and client, takes place in a
professional setting, and is initiated and maintained to facilitate changes in
behaviour of a client.” Patterson characterises it as the process involving
interpersonal relationships between a therapist and one or more clients by
which the former employs psychological methods in attempting to improve
the mental health of the latter.
In organisations, the HR department looks after only the employee’s
concerns within the organisation. Sometimes, we can also find that the
stress from home or from the routine of work affects not just the individual,
but the workplace too. As per British Association for Counselling,
counselling seeks to assist the individual to make their own decision from
among the choices available to them. A counsellor or a therapist can never
enforce its views on the client. The counsellor can only help the employees
choose their best options and sort out problems that they face by
themselves.
12.5.1 Objectives of employee counselling
Employee counselling helps the employees in coping with their current
problems and helping them to clearly understand the situation and take
necessary action. Some of the objectives of employee counselling are:
i. Better understanding of oneself.

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ii. Enabling the employee to ventilate frustrations and discontent.

iii. Identification of the actual cause for the problem.
iv. Enabling control over emotions.
v. Creating better clarity of situations.
vi. Generate solutions for the problems faced.
vii. Assist in choosing the most appropriate solution for the problem.
viii. Assisting in setting practical goals.
ix. Developing a sense of self- worth and self-belief.
x. Helping the employee to accept the situation and take corrective
action.
12.5.2 Need for employee counselling
We have learnt that employee counselling helps the employee to solve the
personal and professional problems. Let us now look into the kinds of
problems for which employees seek counselling. Some of them are:
i. Occupational stress.
ii. Reduced performance.
iii. Workplace conflict.
iv. Work over load.
v. Conflicts with superior, subordinate and peers.
vi. Family problems.
vii. Career problems
viii. Health problems and increased accidents.
ix. Inability to meet job demands.
x. Irritability and inability to control emotions.
xi. Alcoholism, substance abuse etc.
12.5.3 Types of employee counselling
There are three types of counselling methods, (a) Directive counselling (b)
Non-directive counselling and (c) Participative counselling. Let us now
discuss them.
i. Directive counselling – It is known to be a full counselling. It provides
the function of giving advice, reassurance and communication. In this
type of counselling, the employee’s problem is heard carefully,
decisions taken along with the employees consent regarding what

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needs to be done and then the employee is motivated to implement

the decision into action.
ii. Non-directive counselling – This is entirely opposite to directive
counselling. In this type of counselling the employee is psychologically
independent as a person. The counsellor acts very skilfully and
inspires the counselee to share the problems and to come out with
own solutions. It is the employee who controls the direction of
counselling in this type of method.
iii. Participative counselling – The most preferred and acceptable type
of counselling is the participative counselling. In this kind of
counselling, the counsellor and counselee mutually establish a
relationship among themselves by exchanging their views, ideas,
information etc. The technique is neither counsellor centred nor
counselee-centred. Both the counsellor and the counselee apply their
different knowledge, skills and perspectives into the problem and find
solutions to it.
The choice of method depends upon the nature of problem, employee, type
of situation, availability of and ability of the professional counsellors.
Activity 2:
Suppose you are the HR Manager of an organisation. You find an
employee who regularly comes late to office and also seems to be
disinterested in work. List out the questions you would ask while
counselling the employee.
Refer: Section 12.5.1

Self Assessment Questions

Fill in the blanks
11. Full counselling is also known as ___________________ counselling.
12. In _____________ counseling,counsellor and the counselee apply
their different knowledge, skills, and perspectives into the problem and
find solutions to it.

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12.6 Summary
Let us recapitulate the important concepts discussed in this unit:
 Employee relations refers to the general management and planning of
activities related to developing, maintaining and improving employee
relationships by communicating with employees, processing grievances
or disputes etc.
 The key stakeholders of employee relations are individual employees,
individual employer, employee unions, employers’ associations and also
some voluntary organisations.
 Features of employee relations are that it refers to the relationship
shared among the employees in an organisation, emphasises on
communication between employer and employee, sets rules and
regulations, minimises conflicts, sets the disciplinary action procedure,
creates positive organisational climate, ensures employee safety,
suggests grievance addressing measures, reduces and prevents
organisations problems and helps employees get adjusted with others.
 Strategies that the organisations follow to improve their employee
relations are creating clarity of organisational principles, involving team
members, treating employees equally, encouraging employee feedback,
facilitating written mode of communication, encouraging face to face
communication, conducting fair disciplinary actions, recognising
associations of employees and also providing support for employees.
 Discipline is “the orderly conduct of affairs by the members of an
organization who adhere to its necessary regulations.”
 Discipline can be classified on different basis. Based on methods of
implementation of disciplinary measures, it is divided into preventive and
corrective discipline. Based on rewards and punishments for employee
behaviour, it is divided into positive and negative discipline.
 A sound disciplinary system must have proper formulation and
communication of rules, reasonable rules and regulations, treat
employees equally, location of responsibility, prompt and private
disciplinary action, based on facts, rational action and must treat an
employee normally after the punishment.

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 According to Douglas McGregor Red Hot Stove rule, disciplinary action

should have the following consequences: immediacy, forewarning,
consistency and impersonality.
 According to Jucius, “a grievance is any discontent or dissatisfaction,
whether expressed or not, whether valid or not, arising out of anything
connected with the company which an employee thinks, believes or
even feels to be unfair, unjust or inequitable.”
 Grievance can be caused by inadequate wages, incentives, increments
and unfair compensation offered to other employees; disciplinary
measures and procedures; unfair promotions, transfers, change of
locations; unsatisfactory rules and policies; inadequate health, safety
and welfare services; unsatisfactory conditions of work; improper job
assignments; inadequate employee recognition etc.
 The pre-requisites for a grievance handling procedure are conformity
with existing legislation, clarity, simple and expeditious, promptness,
training and feedback.
 Employee counselling is a process where a professional counsellor
helps employees sort out problems by themselves. It is an enabling
service.
 Objectives of employee counselling are to help in better understanding
of oneself, enabling the employee to ventilate the frustrations and
discontent, identify the actual cause for the problem, enable control
over emotions, create better clarity of situations, generate solutions for
the problems faced, choose the most appropriate solution for the
problem, assist in setting practical goals, develop a sense of self- worth
and self-belief, help the employee to accept the situation and take
corrective action.
 Employees seek counselling to overcome problems related to
occupational stress, reduced performance, workplace conflict, work over
load, conflicts with superior, subordinate and peers, family problems,
career problems, health problems and increased accidents, inability to
meet job demands, irritability and inability to control emotions,
alcoholism, substance abuse etc.
 Counselling can be directive, non-directive or participatory.

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12.7 Glossary
 Disciplinary action: Disciplinary action refers to the steps taken against
a misconduct or disobedience from an employee and with an aim of
preventing such misconducts in future.
 Employee counselling: Employee counselling refers to the process by
which a professional counsellor provides help and support to the
employees who face problems either in their work or personal life which
affects their performance and increases the stress levels. Counselling is
guiding, consoling, advising, sharing and helping to resolve their
problems whenever the need arises.
 Employee recognition: Employee recognition is the timely, informal or
formal acknowledgement of a person’s or team’s behaviour, effort or
business result that supports the organisation’s goals and values and
which has clearly been beyond normal expectations.
 Employee relations: Employee relations involve the body of work
concerned with maintaining employer-employee relationships that
contribute to satisfactory productivity, motivation and morale.
Essentially, employee relations are concerned with preventing and
resolving problems involving individuals which arise out of or affect work
situations.
 Expeditious: Expeditious refers to acting or doing something with
speed and efficiency.
 Grievance: Grievance refers to any discontent or dissatisfaction arising
out of employment related matters of an employee. It could be valid or
invalid, imaginary or factual.
 Industrial dispute: Section 2(k) of Industrial Disputes Act, 1947, defines
industrial dispute as any dispute or difference between employers and
employers, or between employers and workmen, or between workmen
and which is connected with the employment or non-employment or the
terms of employment or with the conditions of labour, of any person.
 Occupational stress: Occupational stress refers to physical or
psychological disorder associated with an occupational environment and
manifested in symptoms such as extreme anxiety, or tension, or cramps,
headaches, or digestion problems.

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 Organisational climate: Organizational climate refers to a set of

properties of the work environment, perceived directly or indirectly by the
employees, that is assumed to be a major force in influencing employee
behaviour.
 Substance abuse: Substance abuse refers to the harmful or hazardous
use of psychoactive substances, including alcohol and illicit drugs.

12.8 Terminal Questions

1. Explain the concept of employee relations.
2. What are the factors to be considered in managing discipline?
3. What are the factors to be considered in managing employee
grievance?
4. Explain the concept of employee counseling.

12.9 Answers
Self Assessment Questions
1. False
2. False
3. True
4. (b) Punishment to be given immediately
5. (c) Warn employees before punishment
6. (d) Same punishment for the same offence
7. (a) No discrimination for punishment
8. False
9. True
10. False
11. Directive
12. Participative

Terminal Questions
1. Employee Relations refers to the general management and planning of
activities related to developing, maintaining and improving employee
relationships by communicating with employees, processing grievances
or disputes etc. For more details refer section 12.2.
2. A sound disciplinary system must have proper formulation and
communication of rules, reasonable rules and regulations, treat

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employees equally, location of responsibility, prompt and private

disciplinary action, based on facts, rational action and must treat an
employee normally after the punishment. According to Douglas
McGregor Red Hot Stove rule, disciplinary action should have the
following consequences: immediacy, forewarning, consistency and
impersonality. For more details refer section 12.3.
3. The factors to be considered are conformity with existing legislation,
clarity, simple and expeditious, promptness, training and feedback. For
more details refer section 12.4.2.
4. Employee counseling is a process where a professional counselor helps
employees sort out problems by themselves. It is an enabling service.
For more details refer section 12.5 and 12.5.1.

References:
 C. B., Mamoria and S. V, Gankar., (2010). Human Resource
Management. Mumbai: Himalaya Publishing House.
 D'Cenzo, David A. & Robbins, P. Stephen., (2001). Human Resource
Management. New Jersey: Prentice Hall.
 Deb, T., (2009). Human Resources and Industrial Relations. New Delhi:
Excel Books.
 Dessler, Gary., (2010) Human Resource Management .New Jersey:
Prentice Hall .
 K, Aswathappa., (2006). Human Resource and Personnel Management.
New Delhi: Tata McGraw Hill.
 Rao, V.S.P., (2009). Human Resource Management. New Delhi: Excel
Books.

E- References:
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employee-heroism/ (Retrieved on 23 November, 2011)
 http://books.google.co.in/books?id=FuUmIixUldwC&printsec=frontcover
&dq=employee+relations&hl=en&ei=qgXTTpnuBIGrAfO7fWtBw&sa=X&
oi=book_result&ct=result&resnum=1&ved=0CDIQ6AEwAA#v=onepage
&q=employee%20relations&f=false (Retrieved on 23 November, 2011)

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 http://books.google.co.in/books?id=vOn_m6E4Xe8C&pg=PA201&dq=
define+employee+relations&hl=en&ei=tQbTTvHbKsmrrAfoi_ncDA&sa=
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