DISCIPLINE

• “Discipline is the force that prompts individual or groups to observe rules, regulations, standards
& procedures deemed necessary for an organization.”

- Richard D. Calhoon

• Self discipline is the highest form of discipline & management efforts should be directed to
encourage this.

Causes of Indiscipline

1. Unfair management practices-

• Like wage discrimination ,discrimination in promotional policies , transfer policies, allotment of

work, defective handling of grievance, payment of low wages, delay in payment of wages etc.
Thus it results in indiscipline.

2. Absence of effective leadership-

• Absence of effective leadership results in poor management in direction , guidance, instructions

etc. this results in indiscipline.

3. Communication barriers-

• Improper communication results in indiscipline.

4. Non- uniform disciplinary action-

• Management has to impose same punishment for the same type of indisciplinary action.

5. Inadequate attention to personnel problems –

• Delay in solving personnel problems creates frustration among the workers which results in
indiscipline.

6. Absence of code of conduct-

• Code of conduct are certain rules & regulations & in the absence of code of conduct it creates
confusion & provides chance for discrimination while taking any disciplinary action.

7. Unequal treatment-

• Discrimination on the basis of caste , color, creed, age , language etc. leads to Indiscipline and
matters in selection, promotion, transfer, discrimination in imposing penalties & giving rewards
etc.

DISCIPLINARY PROCEDURE
STEP 1: Framing & Issue of charge sheet-

• Once any case of misconduct is identified a Charge sheet is issued to the employee.

• A charge sheet is simply a notice & provides an opportunity to the employee to explain his
conduct . It is also known as show-cause notice.

• In a charge sheet each charge should be clearly specified.

STEP 2: Consideration of Explanation

• After issuing a charge sheet an explanation is considered by the employee.

• If the explanation is satisfactory ,no disciplinary action need to be taken.

STEP 3: Suspension pending enquiry

• A suspension order is given to the employee along the charge sheet.

• According to the Industrial employment act, 1946, a suspended worker is paid an allowance
equal to one half of his wages for the first 90 days of suspension & 3/4 th of wages for the
remaining period of suspension if the delay in disciplinary completion proceedings exceeds not
due to the workers conduct.

STEP 4: Holding of Enquiry-

• An enquiry officer is appointed for holding an enquiry & a notice to this effect should be given to
the concerned worker so that he may prepare submission in his defence.

• The enquiry officer proceeds the enquiry in a proper manner& examine witnesses.

• A fair opportunity is also given to the worker to cross examine the management witnesses.

• An enquiry officer submits his findings & their reasons & leave it to the decision of the
appropriate authority.

STEP 5: Order of punishment

• Appropriate authority decides the Order of punishment when the misconduct of the employee
is proved.

GRIEVANCE

• “Grievance is any dissatisfaction or feeling injustice in connection to the employment situation”.

• “A written complaint filed by an employee & claiming an unfair treatment”

- Dale Y Yoder
Any type of dissatisfaction that an employee feels in an organization relating to the job is called
Grievance.

Causes of Grievance

1. Grievance resulting from management policy:

i) Transfer

ii) promotion

iii) demotion

iv) overtime

v) wage payment

vi) seniority

vii) lack of employee development programme

2. Grievance resulting from working conditions:

i) Changes in schedules & procedure

ii) bad physical condition at work place

iii) non availability of proper tools, machines & equipments for doing jobs

3.Grievance resulting from personnel maladjustment:

i) over ambition

ii) excessive self esteem

iii) impractical attitude & behavior towards life etc.

Fig: Model for Grievance Handling Procedure

Industrial Relations

• The understanding of employees & management in an industrial organization is known as

Industrial Relations. It is also known as “Men-management relationship” or “Employee –
Employer relationship”.

• A good industrial relations helps to retain the employees on one hand & to run the organization
successfully on the other hand.
 • Higher the satisfaction, healthier will be the relationship.

• Industrial relation can be defined as a coin which has two faces:- “co-operation & conflict”.

Nature/Features of Industrial Relations

1. IR is like a coin which has two faces-”co-operation & conflict”.

2. It enhances the economics status of workers.

3. It provides an opportunity to the employees to have a say in management decision making.

4. It avoids Industrial conflicts & their consequences.

5. It encourages & develops trade union in order to improve the workers collective strength.

6. It raises the productivity by minimizing industrial conflict through state control.

Importance of Good Industrial relations in India

1. Contribution to economic growth-

• Good Industrial relations helps to increase the efficiency & economy which leads to higher
productivity & income.

• This results in the economic growth of the economy.

2. Establishment of Industrial democracy-

• An enterprise with good industrial relations settles industrial disputes & solves various problems
of employees through mutual negotiations , mutual agreement, mutual co-operation among the
parties etc.

• This helps in establishment of industrial democracy in the organization which motivates

employees to contribute their best to the success of the organization.

3. High morale of workforce-

• Good industrial relations means existence of mutual co-operation , confidence & respect within
the enterprise which motivate all the members of the organization to contribute their best to
the situation.

• This results in higher productivity , higher income , increased job satisfaction & overall high
morale of the workforce.

4. Enactment of sound labor legislation-

• Good Industrial relations help government in making laws forbidding unfair practices .
 • In such a climate both the parties leave their confrontational attitude & work for the
achievement of common goals.

5. Facilitation of change-

• Good industrial relations create a climate of co-operation & confidence & make the process of
change easy.

• The workforce easily adjust themselves according to the changes for betterment without
resistance.

6. Optimum use of scarce resources-

• Harmonious industrial relations create a sense of belongingness & a favorable environment by

the absence of grievances & disputes which ensure optimum use of human as well as non-
human resources.

Approaches of IR

• The popular approaches to IR are :

1. Unitary approach

2. Pluralistic approach

3. Marxist approach

Unitary Approach

 It is based on the assumption that every one-be it employee, employer or government benefits
the main emphasis is on common interest.

• Under this approach, IR is founded on mutual co-operation, team work, shared goal & so conflict
at the work place if any arises is temporary due to the poor management or mismanagement of
employees.

Pluralistic approach

• This approach perceives that organization is a coalition of competing interest group mediated by
the management.

• At many times it may happen that management in its mediating role, may pay improper
attention to the needs & claims of employees.

Generally the employees join trade unions to negotiate with management on equal terms to protect
their interest.

Marxist approach
 • According to Marxist, conflict arises because of division within society that is capitalists & labor.

• The main objective of capitalists is to improve productivity by paying minimum wages to labor.
Labour views this as their exploitation by the capitalists.

• The labor – capitalists conflict can’t be solved by bargaining, participation & co-operation. For
this, coercive powers such as strikes etc are exercised by labor against capitalists.

Promotion

Promotion refers to the upward movement of an employee from one job to another higher one, with
increase in salary, status and responsibilities.

Purpose of Promotion

The following are the important purpose of promotion:

1. To recognize an employee skill and knowledge & utilize it to improve the organizational
effectiveness.

2. To reward and motivate employees to higher productivity.

3. To promote employees satisfaction & boost their morale.

4. To promote good human relations

5. To increase sense of belongingness.

6. To retain skilled & talented people.

7. To attract trained ,competent and hard working people.

Types of Promotion

Promotion given to employees in an organization can be classified into three types.

1. Horizontal promotion-

 When an employee is shifted in the same category, it is called “Horizontal Promotion.”

 Such promotion may take place when an employee shifts within the same department from one
department to other or from one plant to another plant.

A junior clerk promoted to senior clerk is such an example.

2. Vertical Promotion: This is the kind of promotion when an employee is promoted from a lower
category to higher category involving increase in salary, status, authority & responsibility. Generally,
promotion means vertical promotion.
3.Dry Promotion:

 When promotion is made without increase in salary, it is called “Dry Promotion”.

 Such promotion is made either if there is scarce of resources in the organization or if some
employees give more importance for status or authority than money.

Policy/Principles

1. It must provide equal opportunities for promotion policy as sound and good policy.

2. It must be applied uniformity to all employees irrespective of their background.

3. It must be fair and impartial.

4. The basis of promotion must be clearly specified and made known to the employees.

5. It must be correlated with career planning.

TRANSFER

 Transfer is defined as a lateral shift causing movement of individuals from one position to
another usually without involving any marked change in duties, responsibilities, skills needed or
compensation.

 “A Transfer is a change in the job(accompanied by a change in the place of the job) of an

employee without a change in responsibilities or remuneration. -Flippo

 The company may transfer the employee to the place where he/she can prove more useful and
effective.

 Transfer differs from promotion in the sense that the latter involves a change of job involving
increase in salary, authority, status & responsibility. While all these remain unchanged in the
case of former.

Purpose/need of Transfer

1. To meet organizational needs: It helps an organization to reassign job among employees so that
right employee is placed for right job.

2. To satisfy employee needs: Personal problem of employee like health, family, circumstances ,
interpersonal conflicts also necessitate transfer.

3. To better utilize Employee: When an employee is not performing satisfactory & his/her
capabilities would be utilized better elsewhere ,he/she may be transferred to other job.
 4. To make the employee more versatile: In some organizations like bank, employees after
working for a specified period are transferred to other job with a view to widen their knowledge
and skill.

5. To adjust the workforce: Workforce can be transferred from the departments/plants where
there is less works to the departments/plants where is more work.

6. To provide relief: Transfer may be made to give relief to the employees who are overburdened
or doing hazardous work for long period.

7. To punish employee: Management may use transfer as an instrument to penalize employees

who are indulged in undesirable activities as a disciplinary action. e.g. Employees are transferred
to remote and far-flung areas.

Policy/Principles

A good transfer policy should satisfy the following requirements:-

1. Specify the circumstances under which transfer will be made. These should be in writing and
should be communicated to the employees.

e.g. Defence personnel and Government employees are subjected to transfer once in three
years.

2. Specify the basis for transfer i.e. whether transfer will be made on the basis of seniority or skill and
competency or on any other basis.

3. Decide the authority which would handle transfer.

4. Specify the jobs to which transfer will be made and duties and salary on assumption of new jobs
should also be communicated.

5. Clarify whether transfer is permanent or temporary.

Transfer policy is subject to vary from organization to organization depending on the

type, kind and size of the organization.

Types of Transfer

Employee Transfers may be classified into following types;-

1.Production Transfer:-

 Such Transfer are made when labor requirement in one division or Branch is declining.

 The surplus employees from such division are transferred to those division or branches where
there is shortage of employees.
2. Remedial Transfer:

 Such Transfer are affected to correct the wrong selection & placement of employees.

 A wrongly placed employees is transferred to more suitable job.

 Such Transfers protect the interest of the employees.

3. Versatility Transfer:-

 These transfer are also known as job rotation , in which employees move from one job to
another to gain experience of work in all the related field.

 It benefits both the employees & organization.

4. Shift Transfer:-

 Such transfer are made in the organization where the work continues for 24 hours or in shift.

 Employees are transferred to one shift to another shift on the basis of mutual understanding
and convenience.

5. Penalty Transfer:-

 Management use this transfer as an instrument to penalize employees involved in undesirable

activities in the organization.

 Employees transfer from one’s place of convenience to a far-flung areas and remote areas is
considered as a penalty to the employee.

SEPARATIONS

• Separation is a situation when the service agreement of an employee with his/her organization
comes to an end and employee leaves the organization.

• Employees may be separated from an organization due to many reasons like retrenchment
,resignation, discharge ,dismissal etc.

Retirement

Retirement is the major cause of separation of employees from the organization. It can be defined as
the termination of service of an employee on reaching the age of superannuation.

Retirement may be of two types :-

(i) Compulsory Retirement (Iron Handshake):-

 This is the retirement when employees compulsorily retire from service on attaining the age of
superannuation.
  Some organization like Universities may have a policy to reappoint professionals and others who
posses rare skills and expertise for a limited time even after attaining superannuation.

(ii) Voluntary Retirement (Golden Handshake):-

 When organization give option to its employees to retire even before superannuation, it is called
Voluntary Retirement. This scheme is termed as “Voluntary Retirement scheme(VRS).”

 To downsize the employees, organizations by providing certain incentive , are trying to

encourage their employee to opt for voluntary retirement.

 Employee in return of voluntary retirement are given lumpsum payment.

Resignation

• Resignation is Termination of service by an employee by serving a notice called ‘Resignation’ on

the employer.

• Resignation may be voluntary or involuntary.

• A voluntary resignation is when an employee himself/herself decides to resign on the grounds of

all health, marriage, better job prospects in the other organization etc.

• Resignation is considered involuntary or compulsory when the employer directs the employee
to resign on grounds of duty and indiscipline action.

• However, in case of involuntary resignation, a domestic enquiry should be conducted before

asking the employee to resign. This is because otherwise the affected employee can go to the
union or court of law and complain that he was asked to resign forcefully.

Layoff

• Layoff implies denial of employment to the employers for reasons beyond the control of
employer. Breakdown of machinery, seasonal fluctuation in demand, shortage of power, raw
material etc are the examples of reasons leading to lay off.

• It is important to note that the employee-employer relationship does not come to an end but is
suspended for some time.

• In seasonal Industries like mines, sugar etc layoff occurs routinely.

• Layoff may occur for an indefinite time. “when layoff becomes a permanent one it is called
retrenchment.”

Retrenchment

• It means permanent termination of an employee service for economic reasons such as surplus
staff, poor demand for products, general economic slowdown etc.
 • Termination of services on account of retirement, winding up of business, illness on disciplinary
grounds does not constitutes retrenchment.

• It is mainly seen in agricultural services, food products, manufacture of machinery & cotton
textiles.

• The reasons pointed out behind retrenchment are financial shortage & lack of demand for their
product.

• The organization must give one month prior notice to the employee in writing indicating the
reasons for retrenchment.

Dismissal

• Dismissal is termination of service of an employee as a punitive measure. This may occur either
due to unsatisfactory performance or misconduct.

• Before an employee is dismissed he must be served advance notice to explain a position. The
reasons for dismissal must be clearly made known to the employee.