A STUDY ON EFFECTIVESNESS OF GRIEVANCE HANDLING

MECHANISM

Project Submitted to the ALAGAPPA UNIVERSITY in partial

fulfillment of the requirements for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION

By

Sanchit Sharma
223028670001

DIRECTORATE OF COLLABRATIVE INSTITUTIONS

ALAGAPPA UNIVERSITY

KARAIKUDI – 630 003

JULY – 2022
 DECLARATION

I Sanchit Sharma (223028670001) hereby declare that the project entitled A

STUDY ON EFFECTIVESNESS OF GRIEVANCE HANDLING
MECHANISM submitted for the M.B.A. Degree is my original work and the
dissertation have not formed the basis for the award of any degree, associateship,
fellowship or any other similar titles.

Place: Sanchit Sharma

Date: Signature of the student

 BONAFIDE CERTIFICATE
This is to certify that the project entitled “A STUDY ON EFFECTIVESNESS
OF GRIEVANCE HANDLING MECHANISM ” is the Bonafide research work
carried out by Sanchit Sharma student of M.B.A., Collaborative Programme,
Alagappa University, Karaikudi, during the year 2022- 2024, in partial fulfilment
of the requirements for the award of the Degree of Master of Business
Administration and that the project has not formed the basis for the award
previously of any degree, diploma, associate ship, fellowship or any other similar
title.

Place:

Date: Signature of the Guide

 ABSTRACT
This study focuses on the Effectiveness of Grievance Handling Mechanism at
Lucas-TVS Limited, Puducherry. Grievance is any kind of dissatisfaction
regarding pay, promotion, suspension, working conditions etc. TVS is a company
that takes employee grievances seriously, responding promptly and thoroughly to
any concerns that are raised. The company has a well-established process for
handling complaints, which includes conducting investigations, providing support
to affected employees, and taking appropriate disciplinary or corrective action as
necessary. TVS also takes proactive steps to prevent future incidents by
implementing policies and training to promote a respectful, safe, and inclusive
workplace. As a result, employees feel valued and supported by the company, and
confident that their concerns will be taken seriously and addressed appropriately.
 TABLE OF CONTENTS

CHAPTER TITLE PAGE NO.

I INTRODUCTION
1.1 Profile of the
organization

1.2 Introduction to the

study

II OBJECTIVES OF THE
STUDY

III CASE STUDIES

IV 4.1 FINDINGS OF THE

STUDY
4.2SUGGESTIONS,
RECOMMENDATIONS

V CONCLUSION

VI SCOPE AND
LIMITATIONS OF THE
STUDY
 CHAPTER I

INTRODUCTION
1.1 PROFILE OF THE COMPANY

Lucas - TVS was set up in 1961 as a joint venture of Lucas Industries plc., UK and
T V Sundaram Iyengar & Sons (TVS), India, to manufacture Automotive Electrical
Systems. One of the top ten automotive component suppliers in the world, Lucas
Varity was formed by the merger of Lucas Industries of the UK and the Varity
Corporation of the US in September 1996. The company designs, manufactures
and supplies advanced technology systems, products and services to the world's
automotive, after market, diesel engine and aerospace industries. The combination
of these two well-known groups has resulted in the establishment of a vibrant
company, which has had a successful track record of sustained growth over the last
three decades. TVS is one of India's twenty large industrial houses with twenty-
five manufacturing companies and a turnover more than US $ 3.1 billion. The
turnover of Lucas-TVS and its divisions is US$ 550 million during 2021-2022.
Incorporating the strengths of Lucas UK and the TVS Group, Lucas TVS has
emerged as one of the foremost leaders in the automotive industry today. Lucas
TVS reaches out to all segments of the automotive industry such as passenger cars,
commercial vehicles, tractors, jeeps, two- wheelers and off-highway vehicles as
well as for stationery and marine applications. With the automobile industry in
India currently undergoing phenomenal changes, Lucas-TVS, with its excellent
facilities, is fully equipped to meet the challenges of tomorrow.
PRODUCTS

Lucas-TVS manufactures the most comprehensive range of auto electrical

components in the country. A range which continues to set standards in the
industry. The products are designed to meet the demands of vehicle manufacturers
both in India and worldwide. With the emission standards in India becoming
increasingly stringent, Lucas-TVS has ensured that each of its products is
manufactured to meet global standards

LIST OF PRODUCTS MANUFACTURED

Lucas-TVS Product Range for Indian Lucas-TVS Product Range for

Market US/European Market

Starter Motor Starter Motor

Alternator Alternator

Headlamp Small Motor

14W Wiper Motor
Windshield Wiper Motor (GM Range) LRW
Products

Small Motor Dynamo Regulator

Wiper Motor
Blower Motor
Fan Motor

Dynamo Regulator Dynamo

Dynamo Auto Electricals

Ignition Coil

Distributor

Diesel fuel injection

CLIENTS
CUSTOMER INTERNATIONAL
COLLABORATOR

Cars

Maruti Udyog Suzuki, Japan

Hindustan Motors Isuzu, Japan. Mitsubishi, Japan

TATA Engineering and

Locomotive Company

General Motors, India General Motors, USA

Ford India Ford, UK

Daewoo Motors Co., India Daewoo, Korea

Ind Auto Fiat, Italy

Hyundai Motors, India Hyundai Motors, Korea

Tractors

Mahindra & Mahindra International Harvestor Corporation, UK

Tractors and Farm Equipments (TAFE) Massey Ferguson, UK

Escorts Ursus, Poland. Ford, UK

HMT Zetor, Czechoslovakia

Eicher Tractors Good Earth, Germany

Punjab Tractors

Gujarat Tractors Zetor, Czechoslovakia

L&T Tractors Johndeer, USA

Greaves Tractors Same, Italy

DIVISIONS

Lucas TVS has grown hand in hand with the automobile industry in the country.
The company's policies have recognized the need to respond effectively to
changing customer needs, helping to propel it to a position of leadership. The
company has raised its standards of quality, productivity, reliability and flexibility
by channeling its interests.
At present, there are five divisions:
1. Auto Electricals L-TVS
2. Fuel Injection Equipment (FIE) - DTVS
3. Electronic Ignition Systems (INEL)
4. Automotive Lighting (IJL)
5. After Market Operations (LIS)
ACHIEVEMENTS
Lucas-TVS, a TVS group company, has won the prestigious Deming Application
Award for the year 2004. This was announced by the Deming Prize Committee of
Japanese Union of Scientists and Engineers (JUSE).

1.2 INTRODUCTION FOR THE STUDY

1. The aim of the study is to find whether the grievance handling mechanism
ensures that employee’s problems are recognized and appropriately reviewed in
a prompt and timely manner.
2. The grievance mechanism acts as a foundation for a harmonious and healthy
relationship between employee and employer.
3. The grievance mechanism ensures a fair and just treatment of employee’s
concerns and prompt resolution of grievances without discrimination, coercion,
restraint or reprisal against any employee who may submit or be involved in a
grievance.

GRIEVANCE
Grievance is any discontent or dissatisfaction that affects organizational
performance. As such it can be stated or unvoiced, written or oral, legitimate or
ridiculous. If the dissatisfaction of employees’ goes unattended or the conditions
causing it are not corrected, the irritation is likely to increase and lead to
unfavorable attitude towards the management and unhealthy relations in the
organization. The formal mechanism for dealing with such worker’s dissatisfaction
is called grievance procedurell companies whether unionized or not should have
established and known grievance methods of processing grievances. The primary
value of grievance procedure is that it can assist in minimizing discontent and
dissatisfaction that may have adverse effects upon co-operation and productivity. A
grievance procedure is necessary in large organizations which has numerous
personnel and many levels with the result that the manager is unable to keep a
check on each individualindividual or be involved in every aspect of working of
the small organization.

The usual steps in grievance procedure are

1. Conference among the aggrieved employee, the supervisor, and the union
steward.
2. Conference between middle management and middle union leadership.
3. Conference between top management and top union leadership.
4. Arbitration.
There may be variations in the procedures followed for resolving employee
grievances. Variations may result from such factors as organizational or decision-
making structures or the size of the plant or company. Large organizations do tend
to have formal grievance procedures involving succession of steps.

ARBITRATION
Arbitration is a procedure in which a neutral third-party study the bargaining
situation, listens to both the parties and gathers information, and then makes
recommendations that are binding on the parties. Arbitration has achieved a certain
degree of success in resolving disputes between the labour and the management.
The labour union generally takes the initiative to go for arbitration. When the
union decides, it notifies the management. At this point, the union and company
must select an arbitrator.

GUIDELINES
When processing grievances, there are several important guidelines to
consider:
 Check the grieving's title and employment status to determine if he / she are
included in a union eligible classification.
 Note the supervisor’s respondent obligation under the grievance procedure.
 Review the requested solution to the grievance. Determine if the relief
sought is beyond a supervisor’s authority to grant.
 Review all policies or other information related to the grievance.
 Conduct a thorough investigation of the allegations.
 Prepare a written response including the reason for the decision and provide
a copy to the grievant.
 Grievance materials should be maintained in a separate file from either
personnel files or records.

Benefits of having Grievance procedure:

 The grievance procedure provides a means for identifying practices,
procedures, and administrative policies that are causing employee
complaints so that changes can be considered.
 They reduce costly employment suits.
 A grievance procedure allows managers to establish a uniform labour policy.
 A grievance system can be a reliable mechanism to learn of, and resolve
employee dissatisfaction. It can produce early settlements to disputes or
provide correction of contested employment issues.

CHAPTER II

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE

To study the effectiveness of grievance handling mechanisms.

SECONDARY OBJECTIVE

1. To identify whether the employees are aware of the grievance handling

mechanism.

2. To identify whether the grievance handling system leads to a favorable attitude

towards the management

3. To identify that the grievance handling system leads to a mutual understanding

between workers and the management

4. To know the level of satisfaction towards the grievance handling procedure of

the organization

5. To identify the factors influencing the effectiveness of the grievance handling in

the organization

CHAPTER – III

CASE STUDIES
CASE STUDY 1:

An employee working in one of the factories of TVS had been raising concerns
about the working conditions and the long hours of work. Despite several
discussions with the factory management, no action was taken to address the
concerns. The employee then escalated the issue to the HR department, citing the
violation of the company's policies and procedures. Upon receiving the complaint,
the HR department took prompt action by setting up a meeting with the employee
to discuss the issues raised. During the meeting, the HR team listened attentively to
the employees' concerns and took detailed notes of the issues raised. They also
assured the employees that they would investigate the matter and take appropriate
action.

Following the meeting, the HR team conducted a thorough investigation into the
issues raised. They found that the factory management had indeed violated several
company policies and procedures, including health and safety regulations and
working hours. The HR team then set up a meeting with the factory management to
discuss the issues and take corrective action. At the meeting, the HR team
presented their findings and recommendations for addressing the concerns raised
by the employee. They also reminded the management of their responsibility to
comply with the company's policies and procedures. The factory management was
cooperative and agreed to implement the HR team's recommendations
immediately.

To ensure that the corrective actions were implemented, the HR team conducted
regular follow-up meetings with the employee and the factory management. They
also monitored the situation closely to ensure that the factory management did not
repeat the violations.As a result of the HR team's actions, the employee's concerns
were addressed, and the working conditions in the factory improved significantly.
The employee was satisfied with the outcome, and there were no further grievances
raised.

Conclusion:

In this case study, TVS demonstrated its commitment to addressing employee

grievances promptly and effectively. The HR team's actions ensured that the
employees' concerns were addressed, and the company's policies and procedures
were upheld. By taking swift and decisive action, TVS was able to resolve the
grievance and prevent any further escalation of the issue. This case study
highlights the importance of having a robust grievance redressal mechanism in
place and the critical role played by the HR department in ensuring employee
satisfaction and retention.

CASE STUDY 2:

A TVS employee filed a complaint about a coworker's behavior, claiming that the
coworker was making inappropriate comments and jokes of a sexual nature. The
employee also reported feeling uncomfortable and unsafe in the presence of the
coworker's HR department responded promptly to the complaint by conducting a
thorough investigation, including interviews with the employee, the accused
coworker, and any witnesses to the alleged behavior. The investigation revealed
that the accused coworker had indeed made inappropriate comments and jokes, and
that the employee's concerns were valid. TVS took swift action to address the
issue, starting with a formal warning to the coworker, reminding them of the
company's zero-tolerance policy for harassment and discrimination. The coworker
was also required to attend sensitivity training and counseling to prevent future
incidents. The company also provided support to the affected employees, offering
counseling services and working with them to find a solution that would make
them feel safe and comfortable at work. This included relocating the employee to a
different department or shift, if desired.

Conclusion:

To prevent similar incidents from occurring in the future, TVS implemented

additional training and policies to reinforce its commitment to maintaining a
respectful, safe, and inclusive workplace. The employee was satisfied with the
company's response and continued to work for TVS. They reported feeling valued
and supported by the company, and confident that their concerns would be taken
seriously in the future.

CHAPTER IV
4.1 FINDINGS OF THE STUDY
1. 54.3% of respondents state that they are being provided with temporary relief
until the final decision is taken.

2. 82.9% of the respondents are between the age group 26-30.

3. 91.4% of respondents state that their supervisors are highly skilled, that is the
supervisors possess necessary human relation skills.

4. 100% of respondents are aware of the various committees that are framed for
redressing their grievance.

5. 88.6% of respondents are highly satisfied with the decision given by the
management.

6. 65.7% of respondents communicate to their co-workers. It is their informal

channel.

7. 77.1% of respondents strongly agree that the real basis of their is identified.

8. 97.1% of respondents agree that the mechanism being followed resolves their
grievance.

9. 82.9% of respondents strongly agree that discussion and conference is facilitated

rather than executive authority.

10. 45.7% of respondents immediately redressed their grievance through

committee members.

11. 88.6% of respondents are qualified up to higher secondary.

12. 25.7% of respondents are aware of tie, sag, canteen, transport committees
available.

13. 100% of respondents have agreed that there is regular follow-up to ensure the
right decision is made.

14. 100% of respondents have agreed that supervisors are given authority to take
the action necessary to resolve the problem.
15. When there is deviation in the real basis identification it will be reflected in the
level of satisfaction regarding the decision given.

4.2 SUGGESTIONS AND RECOMMENDATIONS

1. Job descriptions and responsibilities should be as clear as possible. Everyone
should be informed of the company’s goals and expectations, including what is
expected from everyone.
2. Informal counseling helps to address and manage grievances in the workplace.
3. Conflict management in the organization will be helpful to reduce the number of
grievance rates.
4. Open door policy can be used. The barriers that exist between the various
categories are to some extent broken by personal contact and mutual
understanding.
5. Suggestion boxes can be installed. This brings the problem or conflict of interest
to light.
6. Accident rates, Requests for transfers, Resignations, and disciplinary cases
should be analyzed since they reveal the general patterns that are not apparent.
7. Temporary relief can be provided so that the delay does not increase his
frustration and anxiety and thereby does not affect his / her morale and
productivity.

CHAPTER V

CONCLUSION

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 still more benefit the organization.

CHAPTER VI
LIMITATION OF THE STUDY
 The sample size was restricted to 100
 Personal interview was not allowed
 SCOPE OF THE STUDY
 The project throws light on the need for Grievance handling mechanism and
this study facilitates the management for further improvement on the same.

 This study will be useful when a similar kind of research is undertaken.

BIBLIOGRAPHY
1. Aswathappa, K., Human resource and Personnel management, TATA McGraw-
HILL.
2. Arun monappa and Saiyadain, Mirza S., Personnel management, TATA
McGraw- HILL.
3. Flippo, Edwin B., Personnel management, McGRAW-HILL International
Publications.

WEB SITE
1. www.citehr.com
2. www.findatricles.com