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PROJECT REPORT ON

STUDY OF
HUMAN RESOURCE PLANNING
RECRUITMENT
SELECTION
GRIEVANCE REDRESSAL

PREPARED BY-
AVILASH PATTNAIK
ROLL NO-20PMIR013

BJB AUTONOMOUS COLLEGE

BHUBANESWAR
ACKNOWLEDGEMENT
I would like to express my special thanks of gratitude to my teacher
miss minarva dash for their guidance and support in completing my
project. No amount of written expression is sufficient to show my
deepest sense of attitude to her. Her suggestion and instruction has
served as major contributor towards the completion of the project.

I am also extremely thankful to head of department mam Mrs soma


biswas who gave me opportunity to prepare my subject. Which help
me doing a lot of research. the author is responsible for purely
unintentional oversights and error, which could be traced herein.
INTRODUCTION
Human beings are social being and hardly ever live and work
isolation. We always plan, develop, and manage our relation
both consciously and unconsciously. The relation are
outcome of our action and depend to a great extend upon
our ability to manage our action from childhood each and
every individual acquire knowledge and experience on
understanding others and how to behave in each and every
situation in life later we carry forward this learning and
understanding in carrying and manging relation in our
workplace.
CONTENTS-
Human resource planning
 Concept of hrp
 Definition
 Process of hrp
 Importance of hrp
 Problem faced by hrp
Recruitment
 Concept
 Meaning
 Importance
 Source
Selection
 Meaning
 Advantages
 Process
Case study

Grievance
Human resource planning
Introduction -
Human resources undoubtedly play the most important part in the
functioning of an organization. The term ‘resource’ or ‘human
resource’ signifies potentials, abilities, capacities, and skills, which
can be developed through continuous interaction in an
organizational setting.
The interactions, interrelationships, and activities performed all
contribute in some way or other to the development of human
potential. Organizational productivity, growth of companies, and
economic development are to a large extent contingent upon the
effective utilization of human capacities.
Hence, it is essential for an organization to take steps for effective
utilization of these resources. In the various stages in the growth of
an organization, effective planning of human resources plays a key
role. Matching the requirements of the job with the individual is
important at all stages, including the recruitment procedures, in this
endeavour
When organizations contemplate diversification or expansion, or
when employees have to be promoted, human resource planning
plays an important role. Further, the organizational plans, goals, and
strategies also require effective human resource planning.
Concept of human resource planning-
 Human resource planning or manpower planning is the process
of systematically reviewing hr requirements to ensure that the
required number of employees with the required skill is
available when they are needed.
 In other words, Human Resource Planning is responsible for
arranging the right people for the right job from all the
available sources. And not only this, it also anticipates the
vacancy arising due to the promotion, transfer, retirement,
termination, of an employee and thus, plans for the manpower
accordingly.

Definition
According to E.W. Vetter, human resource planning is “the
process by which a management determines how an
organisation should make from its current manpower position
to its desired manpower position”.

Process of HRP-
1. Analysing organisation objectives-
The human resources
planning process starts with the identification of the objectives
of the different departments in the organization. each
department such as management, marketing, production,
finance, and sales, etc. can have different objectives and they
have specific expectations related to human resources. The
objectives can include recruiting new employees for the
process, reducing the number of employees by automating
processes, or improving the knowledge and skill levels of
existing employees.
2. Inventory of current manpower-
Once the necessary changes are
identified, the Human resources planning team should create
an inventory of the current human resources available in the
organization. This should include the current number of
employees available in the organization, their capacities,
capabilities, and performance abilities. This helps the human
resources team to identify the methods of filling the upcoming
job requirements and to create estimates to internal and
external recruitments that will be necessary.
3. Forecasting demand and supply of human resources-
Based on the objectives of
the different departments of the organization and the
inventory of the available resources, the Human resources
planning team can forecast the demand of the employees.
Apart from that, based on the availability in the organization
and the employee market, the supply of the employees should
be forecasted.
A. Demand forecasting techniques –
Judgemental method-
Under this method manger sit down and forecast the estimate need
of human resources for various departments and for the organisation
.
Judgemental method

Bottom -up Top down


approach approach

Participative approach

Under this method, firstly experienced managers estimate the


manpower requirements for their respective departments. This is done
on the basis of their knowledge of expected future workload and
employee efficiency. At last, the top management then aggregates and
approves the departmental estimates. This is a very easy and time-
saving method.

bottom up approach
under this approach line worker are estimates and inform their hr
requirements to tahe mangers .managers takes all data from each
departments and finally forecast the requirements for all over the
organisations.
Top bottom approach
Under this approach top level estimates the hr requirements for
each department and forward these data to the respective
departments for their review and approval.
Participative approach-
It is one efficient way where both top level and departmental heads
discuss and forecasts the hr requirement.

B. Work study method- This method uses time and motion


study to analyze and measure work. Such studies help the
managers to decide the standard time for per unit work.
The following method shows this method

Planned Output for next years  50,000 units

Standard hours per unit  2

Planned hours required  50,000 X 2

Productive hours per workers in


 2,000
the year

Number of workers required  1,00,000/2,000 = 50


If the span of control is ten, five (50/10) supervisor will supervise the
work. When it is possible to measure work and set standards, the
work-study method is more suitable for repetitive and manual jobs.
Job method should not change frequently.
C. Ratio trend analysis- This is one of quickest method of
forecasting techniques in which manpower resources are
estimated on basic of production level and worker
available .This techniques study past ratio ,between no of
worker available and productivity of organisation at that
time .

According to trend analysis


Man:productivity

If organisation need -1,40,000 unit


200 units produce by 1 men
So that 1,40,000 unit is produced by=1\200*1400000=700 worker
D. Mathematical Models
A mathematical model shows the relationship between independent
variables and the dependent variables. These models express various
factors influencing manpower needs in the form of a formula.
There are several types of models, e.g., regression, optimization
models, probabilistic models, etc. These are complex and suitable
only for large organizations.
Supply forecasting-
Supply forecasting is done by comparing current manpower available
and future demand of labour.
There is 2 way of supply of mapower
 External supply
 Internal supply

Internal supply- external supply-

Transfer  Availability of labour


Promotion force
Termination  Unemployment rate
Succession planning  Agency

Markov Analysis
Markov Analysis—transition probability matrix is developed to
determine the probabilities of job incumbents remaining in their jobs
for the forecasting period.
The technique is named after Russian mathematician Andrei
Andreyevich Markov,

transition matrix, or Markov matrix, can be used to model the


internal flow of human resources. These matrices simply show as
probabilities the average rate of historical movement from one job
to another and review whether one person in a particular job remain
or transfer or terminated.
4. Analyzing the manpower gaps
After forecasting demand and supply ,the manpower gaps can
be easily evaluated.

5. Employment plan or action plan


he human resource plan depends on whether there is deficit
or surplus in the organization. Accordingly, the plan may be
finalized either for new recruitment, training, interdepartmental
transfer in case of deficit of termination, or voluntary retirement
schemes and redeployment in case of surplus.
If demand is more than the supply of human resources new
candidate need to be hired

If demand of manpower is less than supply of manpower then


surplus manpower have to be removed either in the form of
termination, retirement, layoff, transfer ,etc .

6. Contolling and evaluation –


It mainly involves implementation of the human resource
action plan. Human resources are allocated according to the
requirements, and inventories are updated over a period. The
plan is monitored strictly to identify the deficiencies and
remove it. Comparison between the human resource plan and
its actual implementation is done to ensure the appropriate
action and the availability of the required number of employees
for various jobs.
IMPORTANCE OF HRP –
I. Assessing Future Personnel Needs:
Whether it is surplus labour or labour shortage, it gives a picture of
defective planning or absence of planning in an organization. A
number of organizations, especially public sector units (PSUs) in India
are facing the problem of surplus labour.
It is the result of surplus labour that the companies later on offer
schemes like Voluntary Retirement Scheme (VRS) to eliminate
surplus staff. Thus, it is better to plan well about employees in
advance. Through HRP, one can ensure the employment of proper
number and type of personnel.
II. Foundation for Other HRM Functions:
HRP is the first step in all HRM functions. So, HRP provides the
essential information needed for the other HRM functions like
recruitment, selection, training and development, promotion,etc.
III. Coping with Change:
Changes in the business environment like competition, technology,
government guidelines, global market, etc. bring changes in the
nature of the job. This means changes in the demand of personnel,
content of job, qualification and experience needed. HRP helps the
organization in adjusting to new changes.
IV. Employee Turnover:
Every organization suffers from the small turnover of labour,
sometime or the other. This is high among young graduates in the
private sector. This necessitates again doing manpower planning for
further recruiting and hiring.
Human Resource Planning – Problems:
1. Uncertainties:
Uncertainties are quite prominent in human resource practices in
India due to absenteeism, seasonal employment, labour turnover,
etc. Further, the uncertainties in industrial scene like technological
change, marketing conditions also cause uncertainties in human
resource management. The uncertainties make the HRP less
reliable.

3. Inadequacies of Information System:


Information system regarding human resources has not yet fully
developed in Indian industries due to low status given to personnel
department and less importance attached to HRP. Further, reliable
data and information about the economy, other industries, labour
market, trends in human resources, etc., are not available.
Recruitment-

Concept
Recruitment in HRM is a systematic process for Hiring
Talent.  It start from identifying, attracting, screening, short
listing interviewing, selecting and finally hiring the most
potential candidate for filling up the vacant job vacancies in an
organization.
In any business organization, employees are always considered
to be their biggest asset and People Management is the most
important function managed by their HRM Department. The
primary job of Human Resource Management (HRM) Team is to
keep building the pool of Human Capital for the organization
which can result into selection of right candidate for right job.
Recruitment aims for choosing and hiring the right the person
for the right Job at the right time. The Human Resource
Management Department often considers two major sources of
recruitment namely internal and external source of
recruitment. The purpose of recruitment process is to gather
information about the talented and qualified individuals who
might be interested to work for the organization in an effective
way.

Recruitment Meaning:
Recruitment actually means a way to search the future
employees of the organization and stimulate qualified people
to apply for the job. It helps to create a pool of job seekers and
improve the scope of recruitment of better employee.
Recruitment activity brings together the people who are
qualified and looking for job and the organizations which are
searching for prospect employees. The properly executed
recruitment process leads to joining and selection of suitable
manpower in the organization.
Definition-
Edwin Flippo  - Recruitment is the process of searching for
prospective employees and stimulating them to apply for jobs
in the organization.
Kempner - Recruitment is identified as a first step of the
process which persists with selection and ends with the joining
of the suitable candidate in the organization.

Importance of Recruitment

1. The process is important to encourage and attract candidates


and get ample amount of application for the job vacancies.
2. It is an effective way to create information pool about the
prospective candidates who are suitable for the talent needs of
the organization.
3. It is very important step of planning and analysis about the
present and future manpower requirement of the
organization. 
4. It bridges the gap between employers and their future
employee.
5. It is a less expensive way of gathering information about the
talented manpower in the industry.
6. It helps to improve the selection process by proper sorting of
suitable candidate for the job.
7. It reduces the turnover of employees due to correct matching
of candidate expectations and the rewards offered by the
organization.
8. It also helps the organization to meet the social and legal
obligation of maintaining the manpower composition.
9. It determines the appropriate candidates through the different
channels of recruitment.
10. It helps the organization to create different sources of
attracting the right candidate for the job profile

source of recruitment

Internal Sources of Recruitment 


Internal sources of recruitment consist of employees who are
already on the payroll of a firm. It also includes former employees
who have returned to work for the organization. Recruitment from
internal sources is done to fill up vacancies through promotion, re-
hiring and transferring employees within the company.
Advantages of Internal Sources of Recruitment 
 Selecting and transferring existing employees is a simpler
process.
 The managers are aware of the talents and abilities of already
existing employees.
 Internal recruitment serves as a tool to boost the morale of
employees as internal hiring creates job and promotion
opportunities for existing employees.
 Internal hiring promotes a feeling of loyalty amongst the
employees.
 Existing employees are already aware of the company’s
working methods and don’t take a long time to adjust to new
positions.

External Sources of Recruitment


External sources of recruitment refer to the sources that lie outside
or exist external to the organization.
Sources of external recruitment include:
1. People joining an organization, specifically through
recommendations.
2. Employment agencies( e.g. naukri.com) or employment
exchanges.
3. Advertising
4. Institutes like colleges and vocational schools (e.g. campus
selection)
5. Contractors
6. Hiring unskilled labour
7.  List of applications
8. Temporary workers.
Selection
Selection is the process of picking or choosing the right candidate,
who is most suitable for a vacant job position in an organization. In
others words, selection can also be explained as the process of
interviewing the candidates and evaluating their qualities, which are
required for a specific job and then choosing the suitable candidate
for the position.

The selection of a right applicant for a vacant position will be an


asset to the organization, which will be helping the organization in
reaching its objectives.

Advantages of Selection

A good selection process offers the following advantages−


 It is cost-effective and reduces a lot of time and effort.
 It helps avoid any biasing while recruiting the right candidate.
 It helps eliminate the candidates who are lacking in knowledge,
ability, and proficiency.
 It provides a guideline to evaluate the candidates further
through strict verification and reference-checking.
 It helps in comparing the different candidates in terms of their
capabilities, knowledge, skills, experience, work attitude, etc.

Selection Process and Steps

 Employment Interview − Employment interview is a process


in which one-on-one session in conducted with the applicant to
know a candidate better. It helps the interviewer to discover
the inner qualities of the applicant and helps in taking a right
decision.
 Checking References − Reference checking is a process of
verifying the applicant’s qualifications and experiences with the
references provided by him. These reference checks help the
interviewer understand the conduct, the attitude, and the
behavior of the candidate as an individual and also as a
professional.
 Medical Examination − Medical examination is a process, in
which the physical and the mental fitness of the applicants are
checked to ensure that the candidates are capable of
performing a job or not. This examination helps the
organization in choosing the right candidates who are
physically and mentally fit.
 Final Selection − The final selection is the final process which
proves that the applicant has qualified in all the rounds of the
selection process and will be
Case Study:
Google’s Recruitment and
Selection Process
COMPANY PROFILE-
Google Inc., the world’s largest and most popular search engine company, is also one
of the most sought after companies in the world. Due to the popularity of the
company caused by its highly attractive compensation and benefits packages for its
employees, millions of job applications are constantly received by Google on an
annual basis. While other companies envy Google for attracting and acquiring such
highly-talented and highly-skilled individuals from all over the world, the company
finds it as a serious cause of dilemma.

When Google Inc. topped the ranks for the most popular companies in the world, it
could no longer contain the number of applications it receives from thousands of job
hunters from all over the globe. And since the company aims to hire only the best
employees that fit the organizational culture and standards of Google, the company
started thinking of ways to better improve its recruitment and selection process for
its would-be employees.

In an article released in New York Times in 2007, Google Inc shared its non-
traditional, highly creative and unconventional approach of selecting and hiring
employees. Initially, the Google management sought the aid of its highly-competent
and well-skilled technical staff in order to find ways to quickly go through and review
the millions of applications it stored in its recruitment database.

The Google Inc management also decided to focus on the distinct behavioral
characteristics and personality that separates Google employees from any other
employees in other known companies. It shifted its focus from academic
qualifications and technical experiences to the
applicant’s personality, creativity, leadership capacities, innovative and non-
conventional ways of thinking and the applicant’s overall exposure to the world. The
academic qualifications and the intensive job experience just came in as second
priorities of the company in choosing the best candidates for any open positions.

Since then, the Google Inc company not only became known for its outstanding and
“luxurious” job compensation and benefits packages it offers its employees, but also
in making use of some of the most powerful recruitment assessment tools capable of
picking the best employees in the world that fit the standards set by Google.
The Google Recruitment Process
One of the most notable statements of Eric Schmidt, the CEO of
Google Inc. is that “Google invests in people.” The main reason why
people from different cultures, have been dreaming of being
recruited and hired by Google is that the company offers possibly the
most outstanding job compensation packages any normal employee
could ever enjoy.
In order to attract the best employees, Google draws them by the
promise of wealth and luxury, providing their employees with almost
everything an employee could possibly need, from absurdly high
compensations to extravagant and luxurious benefits like gourmet
food, carwash, gym, snacks, exercise classes, dry cleaning services,
car services, haircuts, oil changes, massages, checkups and many
more, all for free.
Nevertheless, the recruitment process was also far beyond ordinary.
Several people who have had experience in the Google recruitment
process narrates that the experience was totally nerve-wracking.
One applicant who underwent interviews for Google has had five to
seven interviews in one day for two to three straight days. That
applicant claims that the interviews were really tough with some of
the brightest people in the world, conducting the interviews filled
with brain teasers, algorithmic problems, and IQ tests.
Another applicant who also have had experiences in the recruitment
process of Google claims that his Google experience was one of the
most nerve-wracking adventures of his life. The interviewers were
looking for extremely bright individuals and so the recruitment
method was filled with IQ tests, brain teasers, algorithms, data
structures, and a lot of mathematics involved in it.
The Google Selection Process
Google is no doubt the world’s best recruitment leader. Google is
known for various unique approaches that it has utilized in order to
attract the cream of the crop or the best of the bests. One way is
through employment branding. Google has so successfully utilized
their brand in order to attract the most talented and highly-
competent individuals in the world. Because of their claim of
providing the best employee-employer experience supported by the
many perks, benefits and high salaries that Google employees get to
enjoy, Google became the most desired companies for men and
women in the world.
While the work and job responsibilities in Google are not that easy,
the stock options benefit is one of the key drivers of retention and
continuous acquisition of the best employees for this company. In
2007, employee turn-over at Google was reportedly less than 5%
which was simply phenomenal. People didn’t want to leave the
company because the amazing provisions and benefits that the
company offers its employees. Moreover, the creative approaches of
Google when it comes to hiring and retaining employees were simply
exceptional. Employees claim that money was never an issue for
Google in terms of utilizing it to take care of its employees.
One notable recruitment technique that Google utilized in 2006 was
the targeted and unobtrusive approach to sending recruitment
messages. Google crafted a simple technique to recruit the best
students in certain schools and universities to work for them. They
allowed people from these schools to access the search portal of
Google wherein the students’ IP address would be identified to see
from what organization the person belongs into. The technique was
successfully executed using a minimalist and unobtrusive style of
recruitment wherein below the search box, the Google system would
know whether the targeted student is graduating or not and whether
or not they intend to work for Google after graduation. The approach
was definitely a successful micro-targeted approach. It was also in
the same year when Google opened up to the idea of an Employee
Referral Program. In putting up this program, Google made sure that
it would deliver them a world-class employee whose personality,
qualifications and work ethics reflect the Google standards.
A year passed by and Google’s attempts for recruitment innovations
continued to improve. In 2007, Google developed a simple and
effective assessment tool to screen its millions of applicants all over
the world via an algorithm assessment tool. The algorithm technique
effectively separated the top and the best performers from
thousands of candidates vying for a position. Moreover, the
assessment tool was made sure to successfully predict the best
possible candidates from the least and the average and has managed
to resolve the issue on the usual assessment tools being used by
most companies, relying mainly on the academic qualifications and
intensive industry and job experience.
Truly, what separates the Google recruitment process from the
typical and the usual recruitment methodologies that other
companies employ is its ability to accurately identify the best
candidates for the position using a more data-based and scientific
approach to the recruitment process. Also, it has significantly
reduced the reliability of interviews, which for most companies,
serves as the final indicator of how well an employee will perform at
work. Furthermore, the algorithm approach which is a
common business model that the company employs was effectively
used to assess whether potential candidates can indeed perform
given the high performance standards of Google.
The secret to be selected as a Google employee is that one has to
think a lot like an “engineer”. Apparently, Google expects their
employees to be highly quantitative and highly analytical as well as
highly capable of dealing with too many data all at the same time.
During the interviews, an applicant must also be able to demonstrate
his skill or capacity by writing codes, intelligently analyzing case
studies and brain teasers and solving algorithmic problems on the
spot. Also, Google is searching for applicants who are highly practical
and are capable of making something out of nothing that people can
make use of.
The Google Interview Process
Since Google is known to be the ultimate recruitment and selection
machine, its interview processes are also the most grueling
experiences an applicant could ever have. Usually, the interviews
begin using the telephone. Once the phone interviews conducted
have been successful, the applicant would be scheduled by the
recruitment officer and be invited for a series of five to ten
interviews in one day with ten different people. For some people
who have successfully undergone this process, they described it as
the most excruciating employment experience of their lives as a lot
of mental gymnastics were necessary to prove your skills.
There were many instances when the applicants were asked to write
codes, brain storm, role play or solve mathematical equations on the
spot just to prove that they are highly-skilled and competent. In
other instances, the applicants are even tested of their marketing
skills even though the position an applicant is applying for is highly
technical. The interviewers seem to have control and power over the
applicants letting them do everything just to prove that they are
worthy for the position. Common questions involved computer
network problems, Java programming and algorithms by which
Google is known for.
Moreover, other applicants can rate and share comments on another
applicant which Google can track and use as another basis for hiring
or not hiring an applicant. Overall, the process was a lengthy, tedious
and nerve-wracking experience which can possibly traumatize
anyone whose dream is to work for one of the most prestigious
companies in the world. Nevertheless, the perks and benefits are
limitless and are more than enough to compensate for such a tough
employment experience.
Introduction and Definition of Grievance:
A grievance is any dissatisfaction or feeling of injustice having
connection with one’s employment situation which is brought to the
attention of management. Speaking broadly, a grievance is any
dissatisfaction that adversely affects organizational relations and
productivity.
To understand what a grievance is, it is necessary to distinguish
between dissatisfaction, complaint, and grievance.
1. Dissatisfaction is anything that disturbs an employee,
whether or not the unrest is expressed in words.
2. Complaint is a spoken or written dissatisfaction brought to
the attention of the supervisor or the shop steward
3. Grievance is a complaint that has been formally presented
to a management representative or to a union official.

Definition –
According to Michael Jucious, ‘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’.

Features of Grievance:
1. A grievance refers to any form of discontent or
dissatisfaction with any aspect of the organization.
2. The dissatisfaction must arise out of employment and not
due to personal or family problems
3. The discontent can arise out of real or imaginary reasons.
When employees feel that injustice has been done to them,
they have a grievance. The reason for such a feeling may be
valid or invalid, legitimate or irrational, justifiable or
ridiculous.
4. The discontent may be voiced or unvoiced, but it must
find expression in some form. However, discontent per se is
not a grievance. Initially, the employee may complain orally
or in writing. If this is not looked into promptly, the
employee feels a sense of lack of justice. Now, the
discontent grows and takes the shape of a grievance.
5. Broadly speaking, thus, a grievance is traceable to be
perceived as non-fulfillment of one’s expectations from the
organization.

Causes of Grievances:

Grievances may occur due to a number of reasons:


1. Economic: Employees may demand for individual wage
adjustments. They may feel that they are paid less when
compared to others. For example, late bonus, payments,
adjustments to overtime pay, perceived inequalities in
treatment, claims for equal pay, and appeals against
performance related pay awards.
2. Work environment: It may be undesirable or
unsatisfactory conditions of work. For example, light, space,
heat, or poor physical conditions of workplace, defective
tools and equipment, poor quality of material, unfair rules,
and lack of recognition.
3. Supervision: It may be objections to the general methods
of supervision related to the attitudes of the supervisor
towards the employee such as perceived notions of bias,
favouritism, nepotism, caste affiliations and regional
feelings.
4. Organizational change: Any change in the organizational
policies can result in grievances. For example, the
implementation of revised company policies or new working
practices.
5. Employee relations: Employees are unable to adjust with
their colleagues, suffer from feelings of neglect and
victimization and become an object of ridicule and
humiliation, or other inter- employee disputes.
6. Miscellaneous: These may be issues relating to certain
violations in respect of promotions, safety methods,
transfer, disciplinary rules, fines, granting leaves, medical
facilities, etc.

Effects of Grievance:
Grievances, if not identified and redressed, may adversely
affect workers, managers, and the organization. The effects
are the following:
1. On the production:
a. Low quality of production
b. Low productivity
c. Increase in the wastage of material, spoilage/leakage of
machinery
d. Increase in the cost of production per unit
2. On the employees:
a. Increase in the rate of absenteeism and turnover
b. Reduction in the level of commitment, sincerity and
punctuality
c. Increase in the incidence of accidents
d. Reduction in the level of employee morale
3. On the managers:
a. Strained superior-subordinate relations.
b. Increase in the degree of supervision and control.
c. Increase in indiscipline cases
d. Increase in unrest and thereby machinery to maintain
industrial peace.

"Setting up of Grievance Redressal Machinery"


9C. (1) Every industrial establishment employing twenty or
more workmen shall have one or more Grievance Redressal
Committee for the resolution of disputes arising out of
individual grievances.

(2) The Grievance Redressal Committee shall consist of equal


number of members from the employer and the workmen.

(3) The chairperson of the Grievance Redressal Committee


shall be selected from the employer and from among the
workmen alternatively on rotation basis every year.

(4) The total number of members of the Grievance Redressal


Committee shall not exceed more than six:

Provided that there shall be, as far as practicable one


woman member if the Grievance Redressal Committee has
two members and in case the number of members are more
than two, the number of women members may be increased
proportionately.
(5) Notwithstanding anything contained in this section, the
setting up of Grievance Redressal Committee shall not affect
the right of the workman to raise industrial dispute on the
same matter under the provisions of this Act.

(6) The Grievance Redressal Committee may complete its


proceedings within thirty days on receipt of a written
application by or on behalf of the aggrieved party.

(7) The workman who is aggrieved of the decision of the


Grievance Redressal Committee may prefer an appeal to the
employer against the decision of Grievance Redressal
Committee and the employer shall, within one month from
the date of receipt of such appeal, dispose off the same and
send a copy of his decision to the workman concerned.

(8) Nothing contained in this section shall apply to the


workmen for whom there is an established Grievance
Redressal Mechanism in the establishment concerned.

"Setting up of Grievance Redressal Machinery"


9C. (1) Every industrial establishment employing twenty or
more workmen shall have one or more Grievance Redressal
Committee for the resolution of disputes arising out of
individual grievances.
(2) The Grievance Redressal Committee shall consist of equal
number of members from the employer and the workmen.
 
(3) The chairperson of the Grievance Redressal Committee
shall be selected from the employer and from among the
workmen alternatively on rotation basis every year.
(4) The total number of members of the Grievance Redressal
Committee shall not exceed more than six:
Provided that there shall be, as far as practicable one
woman member if the Grievance Redressal Committee has
two members and in case the number of members are more
than two, the number of women members may be increased
proportionately.
(5) Notwithstanding anything contained in this section, the
setting up of Grievance Redressal Committee shall not affect
the right of the workman to raise industrial dispute on the
same matter under the provisions of this Act.
(6) The Grievance Redressal Committee may complete its
proceedings within thirty days on receipt of a written
application by or on behalf of the aggrieved party.
(7) The workman who is aggrieved of the decision of the
Grievance Redressal Committee may prefer an appeal to the
employer against the decision of Grievance Redressal
Committee and the employer shall, within one month from
the date of receipt of such appeal, dispose off the same and
send a copy of his decision to the workman concerned.
(8) Nothing contained in this section shall apply to the
workmen for whom there is an established Grievance
Redressal Mechanism in the establishment concerned.
Authorities under the Act for settlement of disputes
In total there are six to eight various authorities set up as a
part of dispute settlement machinery, which are mainly
divided into three stages – Conciliation, Arbitration and
Adjudication. Let’s discuss them one by one.

Employee Grievance Handling Procedure:


Steps involved in grievance handling procedure are:

. Stage I:
Firstly, the aggrieved employee shall convey his grievance verbally in
person to the officer designated by the management for this
purpose. The officer has to answer within 48 hours of the
presentation of the complaint.
Stage II:
If the worker is not satisfied with the decision of this officer or he
fails to receive the answer within the stipulated time, then, he shall
along with his departmental representative, present his grievance to
the head of the department. Usually, a fixed time is specified during
which an aggrieved employee could meet the departmental head.
The head of the department shall give his answer within three days
of the presentation of the grievance.
Stage III:
If the decision of the head of department is unsatisfactory, then the
aggrieved employee along with the departmental representative
may forward his grievance to the grievance committee. The
grievance committee shall make its recommendations to the
manager within 7 days of the employee’s request. If the
recommendations of the committee are unanimous then the
management shall implement it.
If there are differences of opinion among the members of the
committee then the views of all the members shall be placed before
the manager for the final decision. In either case, the final decision of
the management shall be communicated to the employee within
three days from the receipt of the recommendations of the
grievance committee.
Stage IV:
If the decision of the management is not in time or unsatisfactory
then the worker may appeal to the management for revision. The
management shall communicate its decision on appeal within a
week.
Stage V:
If still no agreement is reached, then the union and the management
may refer the grievance to voluntary arbitration within a week after
the decision of the management. In the model grievance procedure
there is a time limit within which an appeal shall be taken from one
stage to the other.
The aggrieved worker shall, within 72 hours of the receipt of the
decision at one stage (in case no decision is received then on the
expiry of the stipulated period), file his appeal with the authority at
the next higher stage.

 Works Committee – Section 3 of the ID act provides for setting


up of such committees mainly in factories with 100 or more
workers. The formation of the committee is bi-partite with
equal representation from employers and employees. Worker
representatives should be elected departmentally from various
groups and categories of workmen in consultation with the
registered trade unions. The main objectives of such
committees are to secure and promote healthy relations
between the employer and workmen, have a say in matters of
common interest and to cool down any material difference
arising from such matters.
 Grievance Redressal Committee – As per amended provisions of
the ID Act in 2010 and Section 9C, it is mandatory for every
industrial establishment to have such a committee internally
for resolution of disputes. Total members of such a committee
to be restricted at six (with an equal number of members from
the employer and workmen) while the position of the
chairperson to be rotated alternatively on yearly basis between
the committee members. Any proceedings to be completed by
the committee within a month. Workman aggrieved by the
decision of the committee can appeal to the employer, who
upon receiving such a complaint need to dispose of it within a
month from its receipt and send the copy of his decision to the
workman. However, it is important to note that the provisions
of this section do not affect the right of a workmen to raise an
industrial dispute as per the act.
 Conciliation Officer – He is basically a mediator appointed by
the appropriate government, i.e. either central or state, usually
an officer of the rank of assistant labour commissioner in every
district. They call both parties to the dispute to a table to
discuss and come to a common consensus to resolve the issue.
The aim is to come to an amicable “settlement” of dispute. His
duties include, 
– To investigate and settle the dispute in a fair and amicable
way without delay
– Prepare a memorandum of settlement with signs from
both the parties and send it to the government along with
his report.
 Board of Conciliation – Any matter not resolved at the above
stage can be referred to the board. It includes an independent
chairman (mostly a conciliation officer), two to four members
representing both the disputed parties in equal numbers.
Duties of the board are similar to the conciliation officer. Board
requires to submit its report to the government maximum
within two months from the date the matter refer to them.
Upon failure to solve the dispute, the appropriate government
may refer the matter for adjudication.
 Arbitrator – Although the ID act does not define arbitrator, but
it includes umpires. There is a separate act called “The
Arbitration Act, 1940” in India. An arbitrator is an independent
person appointed by both parties to dispute, usually well in
advance for amicable settlement of disputes. The award is
recognised as per the act and binding on both the parties.
Appointing an arbitrator is a voluntary act and not binding to
the parties as per Section 10A of the ID act. Arbitrators are
required to submit a signed copy of the arbitration award to
the government post their investigation.
 Court of Inquiry – Not in every case court orders an enquiry,
unless it feels it necessary to do so. In exceptional cases, if
there is an enquiry, then a report of enquiry (usually held by
the senior judge of court) to be submitted within a period of six
months from the date of enquiry.
 Labour Court (LC)– Matters mentioned in Schedule II of the ID
act are generally notified to the labour courts by the
government. Labour courts are run by the presiding officer
equivalent to the senior level district judge. Matters such as
strikes & lay-off, dismissal or discharge of workmen, validating
standing orders etc. are referred and heard by the labour court.
“Award” given by the labour court is final and binding to the
parties of the dispute.
 Industrial Tribunal (IT) – Even though industrial tribunals have
more power as compared to labour courts. Schedule II and
Schedule III are the subject matters of industrial tribunals. Its
presiding officer is equivalent to a high court judge. Subject
matters of industrial tribunals are retrenchment, any closure of
the establishment, profit sharing, wage-related matters
including those related to PF & gratuity etc. 
 National Tribunal (NT) – Even though matters heard at the
National tribunal are of the same subjects as those of labour
courts and industrial tribunals, they are being adjudicated at
the national tribunal when the impact of the matter is on a
large number of population as well as matters impacting more
than one state. The judge of a national tribunal is a “presiding
officer” equivalent to a Chief Justice of High Court judge.
Dispute Settlement Mechanism
 The Board of adjudicating authorities have the right to force
the attendance of any person, examine witnesses and compel
to produce documents and proofs related to the dispute.
 Every authority at the adjudication stage is deemed to be a civil
court.
 Be it labour court or any tribunal, their judgement is known as
“award” is final decision binding on the parties to the dispute.
 Award given by the authorities has to be in writing and signed
by the presiding officer before its submission to the
government.

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