AMITY SCHOOL OF BUSINESS

GRIEVANCE HANDLING IN FMCG COMPANIES IN INDIA

SHIVANI CHAUHANBBA+MBA(DUAL)2014-2019

SEMISTER-3

Submitted to:Miss. Somya pandey

ASB,AUUP

• State the desired goal.

• State the desired objective.

• Use multiple points if necessary.

Goal and Objective

• Summary of the current situation.

• Use brief bullets, discuss details verbally.

Today’s Situation

• Any relevant historical information.

• Original assumptions that are no longer valid.

How Did We Get Here?

• State the alternative strategies.

• List advantages & disadvantages of each.

• State cost of each option.

Available Options

• Recommend one or more of the strategies.

• Summarize the results if things go as proposed.

• What to do next.

• Identify action items.

Recommendation

Discovery /Knowing of Grievances• Grievances can be uncovered in a number of ways .The methods are discussed below:• Observation: A manager can judge by change of behavior of his subordinates. E.g.:

• Not getting along with people• Spoiling materials due to carelessness• Reporting late to work

• Grievance procedure: Companies having a proper grievance procedure should motivate the employees to use it otherwise the grievance will keep accumulating and explode in a violent forms in future.

• Gripe Boxes: By lodging anonymous complaints in the gripe box, the employee will not have fear of his name getting disclosed while sharing his grievance. So he would be able to express his feelings of injustice frankly.

• Open door policy: Employees can openly share any work related grievance with the manager. The manager in turn has the full authority to cross-check the details of the complaint through various means at his disposal.

• Exit interview: Managers should encourage employees to give a correct picture of their tenure in the company so as to rectify the mistakes properly.

• Opinion surveys: Surveys must be conducted periodically about the organisation and its policies.

MODEL GRIEVANCE PROCEDURE

• “The Model Grievance Procedure suggested by the National Commission on Labour involves six successive time-bound steps each leading to the next, in case of dissatisfaction. “

• The best way to handle a grievance is to prevent it from arising in the first instance by creating a positive work environment, the next best way is to have an effective mechanism to handle reported grievance in a mutually satisfactory and expeditious manner.

• Grievance procedures are the keystones of industrial relations because of their ability to resolve disputed issues while work continues without litigation, strikes and other radical disputes.

• It was first formulated by the 16th session of Indian labour Conference in 1958.

 STAGE 1: • In the first stage, aggrieved employee makes a written/ oral submission of his

grievance to his immediate supervisor. Union representative may or may not accompany the grievant.

• After ascertaining the facts of the complaint, supervisor takes the necessary action to settle the issue and informs the employee of his decision, When the

employee is satisfied, the matter ends otherwise the aggrieved employee proceeds with the next course of action. The issue has to be solved within 48

hours of the presentation of his complain • STAGE 2:

• Aggrieved employee goes to higher authorities like the sectional/ departmental head for the settlement of his grievance. At this point the employee is normally accompanied by the middle-level union leaders.

• The supervisor observes and arrives at a decision and communicates it to the aggrieved employees, If the employee is not satisfied, he would request his union to process the grievance and adopt it as a union grievance. He will get

the answer within 3 days of the presentation of his grievance• STAGE 3: 

• At this stage, the employee grievance becomes the union grievance and it is referred to the grievance committee consisting of members representing both

the management and the labor union.• The committee would discuss the issue in detail and reach a decision for settling the grievance. It is also possible that the committee may refer the

matter to a higher level, if it could not resolve it. Here the time limit is 7 days. 

• STAGE 4:•  IF THE GRIEVANCE STILL DEFIES SOLUTION, THE STAGE IS SET FOR

REFERRING THE ISSUE TO THE COMMITTEE OF UNION AND MANAGEMENT .

• NOW, THE CONCERNED SUPERVISORS IN CONSULTATION WITH THE HIGHER-LEVEL UNION LEADERS WRITE THE ISSUES TO BE ARBITRATED, TIME : 7 DAYS

• STAGE 5:•  GRIEVANCE ARBITRATION IS THE FINAL STAGE OF THE GRIEVANCE

PROCEDURE.• THE ARBITRATION HEARINGS ARE QUASI-JUDICIAL PROCEEDINGS,

THE ARBITRATOR’S DECISION IS FINAL, COMPULSORY AND BINDING ON BOTH THE MANAGEMENT AND THE UNION. 

F.M.C.G

Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, Over-the-counter drugs, processed foods and many other consumables. Though the profit margin made on FMCG products is relatively small (more so for retailers than the producers/suppliers), they are generally sold in large quantities; thus, the cumulative profit on such products can be substantial. FMCG is probably the most classic case of low margin and high volume business.

Nestle LimitedNestlé is the world's leading Nutrition, Health and Wellness Company. Its mission of "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and

beverage . The Company was founded in 1866 by Henri Nestlé

AMUL INDIA 

It all began when milk became a symbol of protest. Founded in 1946 to stop the exploitation by middlemen.

Inspired by the freedom movement. The seeds of this unusual saga were sown more than 65 years back in Anand,

a small town in the state of Gujarat in western India. The exploitative trade practices followed by the local trade

cartel triggered off the cooperative movement. This co-operative, the Kaira District Co-operative Milk Producers

Union Ltd. began with just two village dairy co-operative societies and 247 liters of milk and is today better known

as Amul Dairy.

CAUSES OF GRIEVANCES IN NESTLE Economic: Nestle is a big organization, so employees of different branch are paid differently. So, employees may feel they are paid less than the others. Issue related to wage, overtime, bonus can lead to grievances. This is the most common cause of Grievance in Nestle.Supervision: Relate to the attitude of the supervisor towards the employee including biasness, favoritism, nepotism, regional and caste differences.Miscellaneous: In Nestle there might be other causes too which remains Miscellaneous.It may include issue relating to certain violations in respect of promotions, transfer, fines, medical facilities etc. 

TECHNIQUES ADOPTED BY NESTLE TO IDENTIFY EMPLOYEES’ GRIEVANCES Open-door Policy:Gripe Box System:Exit Interview:

GRIEVANCE HANDLING PROCEDURE IN NESTLE

- Step 1: The employee must tell the employer in writing that they have a grievance. The legislation does not set out how the employee must set out the letter.

- Step2: The employer must invite the employee to a meeting to discuss the grievance as soon as possible. The employee must attend this meeting. After the meeting the employer must inform the employee about their decision in response to the grievance within a reasonable time and notify the employee their right to appeal against the decision, if they are not satisfied with it.

- Step 3: If the grievance is likely to involve possibilities of major cost, then the industrial relations representative may deny it. Typical arrangements would include the following parties:

Firstly, the grievance may be settled locally with the local negotiating committee and management. In more complex cases the grievance is settled by industrial relation director.

Step 4: when the grievance is unresolved at the third step, the parties submit the dispute to a neutral arbitrator who hears evidence from both sides and renders a decision.

CAUSES OF GRIEVANCES IN AMUL• In AMUL, there are day-to-day problem of workers. Some of the

basic causes of grievances in Amul are:1. Requirement for new skills for advanced technology. After the company adopt updated technology, the employees

are asked to go through a training and development programme. Some employees feels irritated due to the change in schedule.

2. Training is the theoretical and practical education being given to employees for getting proficiency in a particular field. While, development is the method of developing all round personality, so that mental abilities and inherent qualities are developed.

3. Promotion of employees are based on performance. Sometimes a more experienced or newly recruited employee get promotion to a higher post rather than the old or existing employees. So, the existing employee, who has been working since a long time generated negative feelings/ grievances.

GRIEVANCE HANDLING PROCEDURE IN AMUL.

• First of all, employee is given opportunity to express his/her problem to their supervisor. • If the grievance remains unsolved, the problem will be taken care by the above committee, say Head of

Department.• If the HOD fails to settle the grievance within 7 days, the grievance is sent to the grievance committee, who

tries to solve the grievance within a period of 10 to 15 days. • In few cases, if the grievance remains unsolved it is sent to the voluntary arbitration.

CONCLUSION AND FINDINGS

• Grievance Handling is the basic activity of human resource management in which the company try to eliminate or reduce the employee’s dissatisfaction, in order to get better results from them and also to retain their employees for a long period of time.

• The study reveals that the Grievance handling mechanism is satisfactory.

• The organization is recognizing the importance of satisfying the employees and retaining them. Further improvements can be made so that all members are highly satisfied with the procedure. The suggestions and recommendations when implemented will benefit the organization.