Accounting-Finance

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Monday, March 11, 2013

Causes Of Labor Disputes

HRM ,
Main causes of labor disputes are as follows:

1. Economic Causes

Economics causes of labor disputes are related to the variables consisting of interest disputes which are concerned with the economic condition of workers and management. The variables under it are as follows:
- Bonus
- Working conditions
- Industrial problem

2. Managerial Causes

The unfair labor practice by the management too lead to labor disputes. Sometimes, management performs insufficient and unfair policies and procedures to raise organizational profit. But such unfair practices enrage the workers and lead to labor disputes. They are reflected by:
- Non-recognition of unions
- Selection and development
- Job security
- Leadership style
- Communication

3. Political And Legal Causes

This refers to all political and legal forces that affect labor dispute in the organization. Political instability and poor legal procedures affect industrial peace to a large extent. Some of its components are:
- Political interference
- Union conflict
- Political change

4. Psychological Forces

Everyone has his/her own psychological feelings, attitudes and beliefs. This difference in beliefs and psychological aspects of individuals may bring some labor disputes in the organization. Some of the psychological causes are:
- Appreciation
- Authority and responsibility
- Unfair treatment 
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Concept And Meaning Of Labor Disputes

HRM ,
Poor industrial relations culminate labor disputes in an organization which are manifested in the form of strikes, lock-outs and other industrial actions. The common consequences of labor disputes are loss of production, loss of profit, and even the closure of the organization. Disputes are common in industries; so their nature and causes are inevitable for the organization to study.

Labor disputes can be defined as conflicts or disagreements over the rights and interests of employees with the management. It means, disputes  are the disagreements between employees and the employers in matter relating to organizational procedures.The contradiction can be in ideas and views of workers and managers. In a broader sense, labor dispute can occur not only between workers and managers, but also between workers and workers, or between employers and employers. Hence, such disputes are symptoms of industrial unrest in which both workers and managers try to pressurize each other. Therefore, an attempt should be given towards the settlement of disputes whenever they occur.
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Concequences Of Employee Grievance

HRM ,
Employee grievance may be resulted either from management policies, or working conditions of the organization or personality traits of employees. These are the primary forces that give impetus to the emergence of grievance in the actual work floor. A firm can hardly operate without the influence of grievance. Hence, handling grievance through appropriate procedures play a key role in the settlement of management's mistakes and weakness. If grievances are handled with a proper care and attention, they will introduce positive changes in the organization, thereby enhancing organizational productivity and employee satisfaction.

But if the grievance are not managed properly, they will create some negative impacts. Such impacts reduce organization's output as well as productivity. The negative consequences of employee grievance are:

- Reduced Productivity
- Absenteeism Problem
- Disobeying of orders
- Indisciplined behavior
- Reduced quality of work
- Reduced co-operation among the employees
- Discouragement in employees
- Disharmonious relation between management and employees

Therefore, a due consideration should be given towards the proper settlement of employee grievance instantly when they occur.
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Causes Or Sources Of Grievance

HRM ,
Grievance is a feeling of unfair treatment at work. It can be resulted from dissatisfaction of work. In this regard, sources or causes of grievance can be anything that results dissatisfaction or involving wages, working hours, or conditions of employment are the basis of grievance. The causes or sources of grievance are classified into three categories as follows:

1. Management Policies

The policies and procedures adopted by management give rise to grievance. The autocratic or bureaucratic style of management, for instance, is hardly liked by educated masses. But they favor rather a participative style of management. Similarly, management practices also lead to employee grievance at work as the want to exploit employees through reduction in pays and other benefits. Grievances resulting from management policies are:

- Wages rates or scale of pay
- Overtime
- Leave
- Transfer improper matching of the worker with the job
- Seniority, promotion and discharge
- Lack of career planning and employee development
- Lack of regard for collective agreement
- Hostility towards a labor union
- Autocratic leadership style of supervisors.

2. Working Conditions

Working conditions are relative to the work environment of the organization. If the working environment of company is good, employees will get less place for grievance. Grievance resulting from working conditions are:

- Unrealistic environment
- Non-availability of proper tools, machines and equipment for doing the jobs
- Tight production standards
- Bad physical conditions of workplace
- Poor relationship with the supervisor
- Negative approach to discipline

3. Personal Factors

Personal factors are related to the personality traits of individuals. Sometimes, these personality traits also cause the emergence of grievances at work. Some important personality traits that result into grievance are:

- Over ambition
- Narrow attitudes
- Excessive self esteem
- Gambling and fault finding attitude
- Mental tension 
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Features Of Employee Grievance

HRM ,
Following are the features of employee grievance in an organization:

1. Employee grievance is reflected in terms of dissatisfaction and dishonest behavior.

2. Employee grievance is a feeling of unfair treatment by and individual/group in the work floor.

3. A grievance may be written or verbal.

4. A grievance may be expressed or implied.

5. Grievance will be arisen from the differences between employees expectation and managerial practices.

6. Grievance, if not settled, gives rise to discontent behavior, frustration and low productivity.
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Concept And Meaning Of Employee Grievance

HRM ,
Employee grievance is the perception of unfair treatment on the job. There are many factors that make employees unhappy. For instance, non cooperation from fellow members or a harsh remark relating to domestic affairs, may create unhappy situation at work. Finally such feelings of dissatisfaction or discontent result in employee grievance. There is hardly an organization that runs smoothly at all times.

In most of the organizations, employees have complaint against their employers which is termed as employee grievance. Hence, a complaint affecting one or more employees at a time does constitute a grievance. The complaint may be related to wages, working hours or conditions of employment. The dissatisfaction which is expressed by an employee is regarded as a complaint. When the complaint is filed and brought to the notice of management, it will then be grievance. Hence, employee grievance is resulted from the perception of unfair treatment and differences in employee's expectations and managerial practices. A well defined grievance procedure is an important constitute of employee relation as it provides a medium for the transmission of complaints to the table of management.

Therefore, employee grievance is a formal complaint affecting one or more individuals at a time with respect to wages, working hours, condition of work environment, transfers, promotion and so on and formally informed to the management.
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Purposes OF Labor Relations

HRM ,
A brief description of  purposes of labor relation is as follows:

1. Harmonious Relations

Labor relation brings an efficient relationship between industrial actors employees, employers and the government/society. It aims to develop and promote a good working relationship within and outside organizational sphere.

2. Legal Representation

Labor relations brings about a legal representation of the society or that state in organizational affairs. This means, labor relation brings all actors in a negotiation regarding the implementation of labor laws, rules and regulations.

3. Industrial Peace

Through the institutionalization of organizational rules and regulations, an efficient relationship between and among the industrial actors is obtained. This ultimately results into high degree of industrial peace in the organization. Hence, an effective maintenance of labor relations ensures industrial peace and organizational stability.

                           Also read: Concept And Meaning Of Labor Relations

4. Physical Facility

A good maintenance of labor relations in the organization introduces a good working environment thereby increasing organizational facilities in the work station. Moreover, the workers get sufficient financial and non-financial benefits/incentives to lead a quality life. 

5. Effective Communication

Another purpose of labor relation is to introduce an effective communication system in the organization. The communication system will be effective when it allows two-way flow of messages and information between all levels of employees. For effective communication, the actors should also be effectively involved in the system.

                     Also read: Process Of Labor Relation

6. Change Management

An effective implementation of labor laws, rules and regulations by introducing a creative work environment, cooperation and confidence makes the process of change easy. This helps to initiate organizational and environmental changes in today's Topsy-curvy environment.

7. Productivity And Organizational Effectiveness

A good labor relation aims to increase the productivity of the workers as well as organization. Due to cordial labor relations, employees take interest in their jobs and work effectively and efficiently. This leads to higher production output thereby enhancing the existing level of productivity at a higher point. This ultimately results the enhancement of organizational effectiveness.

8. Reduce Industrial Actions

An efficient relationship between industrial actors helps to reduce industrial actions such as strikes, lock-outs, sits-in, demonstration and other protestive activities.

9. Organizational Stability

Labor relation aims to establish an efficient and friendly work environment in the organization. The introduction of industrial peace provides an important pre-condition for organizational stability and goal achievement.
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