Labour Disputes - Prevention and Settlements | Human Resource Management Notes

Human Resource Management

Labour Disputes - Prevention and Settlements

Labour Disputes:

Dispute is an argument. In other words, labour disputes are defined as the disagreement on issues or problems of workers with management.

In organizations disputes occur on the interest and rights of workers with the management. The major causes of disputes are, wage and salary, other fringe benefits, personal cause, indiscipline etc.

Prevention of disputes:

Following are the ways of preventing disputes in organizations:

  1. Open communication: There must be open communication between workers and management. Effective communication helps both the parties to understand each other and helps in analyzing the issues for constructive solutions.
  2. Regular monitoring: Regular monitoring of work helps to fine out the discrepancies in the behavior of workers. If the superior find any such changes, then s/he acts effectively to solve it which helps on preventing disputes.
  3. Participation: Employee participation on decision making helps on preventing disputes in an organization. Effective participation builds trust and enhances motivation which is major factors for preventing disputes.
  4. Equity: Equitable treatment on salary, participation, career development etc to the employees is helpful in preventing disputes in an organization.
  5. Feedback: Feedback helps the employee to know what they are doing and correct if there is any deviation between actual and standard performance. It also helps in enhancing confidence level of an employee. Thus, feedback also consider as a major tool in preventing disputes.
  6. Collective bargaining: It is a process through which representative of management and the union meets to negotiate a labour agreement. So, contract resulting from collective bargaining helps in preventing disputes in an organization.
  7. Counseling: Counseling is also an effective tool to prevent labour disputes. It helps to understand the problem of employees and take effective solutions.

Settlements of Disputes:

Methods for disputes settlements are as follows:

  1. Grievance procedure (Individual decision): It is a upward communication process through which a worker can take his/her grievance to successively higher levels of management.
  2. Collective bargaining (Group/Joint Decision): This method is widely used for the settlement of labour disputes. Under this, the labour union negotiates with management for the settlement of disputes which benefits mutually.
  3. Adjudication method (Third party decision): It is a process of settling disputes by ordinary courts, labour courts or a tribunal. The decision under this method is final and binds both the parties to follow.

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