Abstract:
This study empirically investigates the effectiveness of grievance
handling and its impact on perceived industrial relations climate in
ceramic tile manufacturing industry in Sri Lanka. The objectives of this
study are first to identify the level of perceived trust among
organizational members when grievance handling is effective and
secondly to examine the level of perception of employees towards
industrial relations climate when trust is built and thirdly to test the
relationship between grievance handling and industrial relations climate and finally to identify the mediation effect of trust between
grievance handling and industrial relations climate.
The study was cross sectional in time horizon and unit of analysis was
individual: executive level employees. The survey method was used in
data collection and 7-point Likert type scale questionnaire was
administered. The study population was limited to majorfirms in
ceramic tile manufacturing industry in Sri Lanka and two major firms
have been selected as the sample of the study using nonrandom sample
techniques. The sample consisted of 48 executives of two firms.
Industrial relations climate was assessed using 03 dimensions:
employee –management understanding, cooperation and partnership.
The effectiveness of grievance handling was analyzed using 04
characteristics: grievance policy, procedure, practice and perceived
justice whereas mediating variable trust was assessed using 03 sub
constructs: ability, benevolence and integrity.
Findings revealed from multivariate analysis that grievance handling
was positively related to perceived industrial relations climate and it
was found to be significant predictor of IR Climate. Also grievance
handling was positively related to trust among employees, unions and
management and it was found to be significant predictor of trust. Trust
was too found to be significant predictor of IR climate and there was a
positive relationship between trust and IR climate.
