Why is it necessary for organisations to have a grievance procedure?

A grievance procedure provides a framework of presenting and resolving dispute between an employee and management. The procedure will define different type of grievance which include; the responsibility of individuals at different stage, the presentation and documentation of the dispute, and the time limit by which the grievance must be presented and dealt with at each stage.
Any dispute that may arise between an employee and management with respect of the terms and conditions of this Agreement shall be subject to the following Grievance Procedure.

The benefits of setting a grievance procedure are:
• Stabilization of daily employee relations;
In a day- to-day basis the grievance procedure will secure the employee in his relationship with the management, as there is a sense of assurance in resolving issues rather than leaving disputes continue. Failure to manage dispute in an organization can influence other areas such as; people are morally affected, there is a demotivation of employees at all level, higher costs arises in paying for penalties and a decrease in productivity may be felt.

• Democracy in the workplace.
Grievance procedure plays an important role in creating a sense of democracy in the workplace by making employees feel more secured with lower risk in their jobs. Also it encourages them to raise issues without any fear of reprisal by the employer. It is understood that employees feel a sense of justice and rightness in their tasks and are efficient and productive.

• Open discussion of issues and improved communication between employer and employee.
Whenever, there is an issue, employees will voice out their concerns through this process and the employer will be able to focus on the problems and bring out solutions. A two way communication process need to be undertaken in such a way that both parties concern feel at ease and are able to voice out all their dissatisfaction and ambiguity in their jobs.

• Allows for interpretation of the collective agreement.
The Grievance Procedure in a collective agreement, specify disputes arising between two concerns parties, which is mutually supported by employees and the organization. The outcome of the agreement is a consensus between both parties related to their disputes. A well interpretation of the agreement need to be clarified by concern parties in order for them to be on the right track and understands everything clearly, such as to avoid misunderstanding.

• Provides the option to submit the problem to a neutral third party.
The neutral party will have the role of giving the final decision according to norms of equity and fairness. The grievance procedure may facilitate the enhancement of the union solidarity by developing employee loyalty; employees feel more confident and are aware that their union is working in their favor.
Furthermore, in having an established grievance procedure in an organization it will reinforce strong labor relations, improved morale attitude and increase productivity.

Reference:
Doyle, S. C. The Grievance Procedure. The Heart of the Collective Agreement. http://irc.queensu.ca (accessed on September 16, 2009).