IMPACT OF THE GRIEVANCE HANDLING ON INDUSTRIAL RELATIONS CLIMATE: A CASE STUDY OF CERAMIC TILE MANUFACTURING INDUSTRY IN SRI LANKA

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.