INDUSTRIAL DISCIPLINE AND

MISCONDUCT

Dr. Itishree Gita Kumari

Assistant Professor
Berhampur University
 OBJECTIVES

 After reading this unit you should be able to:

 define and explain the concept of industrial discipline

 explain the meaning of misconduct

 identify the steps to be taken when exercising the power to take disciplinary action against erring
workman
 INDUSTRIAL DISCIPLINE

 Meaning

 Industrial discipline means working by employees according to rules, regulation and code of conduct in
the industry.
 Industrial discipline signifies orderliness.

 It is the opposite to disorder in employees behaviors and action.

 It is said to be good when the members of organisation willingly follow the rules and regulation within
the standards of acceptable behaviors and willingly follow the rules and regulations of the enterprise.
 It is said to be bad when subordinates either do this reluctantly and unwillingly or actually disobey
regulations and standards of acceptable behaviour as promulgated by the need of enterprises.
 DEFINITION
 Industrial discipline can thus be defined as “the orderly conduct of affairs by the members
of an industrial organization who adhere to its necessary regulations because they desire
to co-operate harmoniously in forwarding the end which the group has in view and
willingly recognize that to do this, their wishes must be brought into a reasonable union
with requirements of the group in action.”

 Discipline is definitely something which is opposite of chaos, irregularity and disorder in

human behaviour and action. Mary C. Niles traces the origin of the word discipline to root
meaning “to learn”. According to her, the purpose of discipline is not to punish the workers
but to help them learn proper conduct.
 MAINTENANCE OF INDUSTRIAL
DISCIPLINE:
 Varied are the ways that can be adopted, but a few of them are outlined below:

 1) Workers are to be consulted while framing rules and regulations.

 2) Rules and regulations should be properly framed.

 3) There should not be any communication gap between the management and the workers.

 4) New workers should be given proper orientation.

 5) Where necessary, charts, graphs and other methods should be used so that the workers may understand them.

 6) Penalty for breaking rules should be used only where it is absolutely necessary.

 7) Victimization should not be the aim of punishment.

 8) Favoritism, nepotism and casteism should be avoided.

 9) Managerial staff should never be breakers of law which they themselves have framed for enforcing discipline.

 10) Code of conduct or discipline should be framed and followed.

 11) A disciplinary committee should be formed.

 12) A suitable machinery should be set up to listen to the appeals made by the aggrieved party.
 CODE OF DISCIPLINE IN INDIAN INDUSTRY:

 The 15th session of the Indian Labour Conference held in July 1957, discussed the problem of discipline in industry
and formulated certain principles for removing employee grievances and settling industrial disputes by mutual
negotiation, conciliation and voluntary arbitration.
 The Code of Discipline has come into force from June 1958. The Code of Discipline can be described as a truce
between organised labour and management.
 The following principles were discussed:

 1) There should be no lockout or strike without notice.

 2) No unilateral action should be taken.

 3) No recourse to go-slow tactics.

 4) No deliberate damage to plant or property.

 5) No acts of violence, intimidation, coercion or instigation.

 6) Existing machinery for settlement of disputes should be utilized.

 7) Awards and agreements should be speedily implemented.

 8) No agreement violating cordial industrial relations should be entered into.

 EMPLOYEE DISCIPLINE – NATURE AND
CHARACTERISTICS

 Nature of Discipline:

 According to Megginson; discipline involves the following three things:

 1. Self-discipline implies that a person brings the discipline in himself with a determination to achieve
the goals that he has set for himself in life.
 2. Orderly behavior refers to discipline as a condition that must exist for orderly behaviors in the
organization.
 3. Punishment is used to prevent indiscipline. When a worker goes astray in his conduct, he has to be
punished for the same and the recurrences of it must be prevented.
 5 IMPORTANT OBJECTIVES
 Employee Discipline –
 (a) To obtain a willing acceptance of the rules and regulations or procedures of an organisation
so that organisational goals may be attained.
 (b) To develop among the employee a spirit of tolerance and a desire to make adjustments.
 (c) To give direction or responsibility.
 (d) To increase the working efficiency or morale of the employees so that their productivity is stepped up
and the cost of production brought down and the quality of production improved.
 (e) To create an atmosphere of respect for the human personality or human relations.

 Discipline is essential for the smooth running of an organisation for the maintenance of industrial peace
which is the foundation of industrial democracy. Without discipline, no enterprise would prosper
 EMPLOYEE DISCIPLINE – 7 IMPORTANT
PRINCIPLES FOR MAINTENANCE OF DISCIPLINE

 Disciplinary measures have serious repercussions on employees; they should therefore, be based on certain
principles so that they may be fair just and acceptable to employees or their unions.
 (a) As far as is possible, all the rules should be formed in cooperation or collaboration with the representatives
of employees.
 (b) All the rules should be appraised at frequent or regular intervals to ensure that they are and continue to be,
appropriate, sensible and useful.
 (c) Rules should be uniformly enforced if they are to be effective. They must be applied without exception.

 (d) Penalties for any violation of any rule should be clearly stated inadvance.

 (e) Extreme caution should be exercised to ensure that infringements are not encouraged.

 (f) If violations of a particular rule are fairly frequent; the circumstances surrounding them should be carefully
investigated and studied in order to discover the cause or causes of such violation.
 (g) Define or precise provisions for appeal or review of all disciplinary actions should be expressly mentioned
in the employee’s handbook.
THE SIGNIFICANCE OF DISCIPLINE
CAN BE EXPLAINED AS UNDER:
 1. From the Point of View of an Individual:

 (i) Discipline provides self-safety to an individual.

 (ii) It enhances an individual’s progress.

 (iii) An individual needs it for his own satisfaction.

 2. From the Point of View of a Work Group:

 (i) Discipline ensures better teamwork and cohesive.

 (ii) A disciplined atmosphere is the key to the progress of the group.

 (iii) Discipline ensures higher productivity.

 (iv) Discipline enhances morale and motivation of employees.

CONT…
 3. From the Point of View of an Organization:
 (i) Discipline ensures higher productivity and quality.
 (ii) Discipline helps an organisation in attaining maximum profit.
 (iii) It is essential better all-round benefits.
 (iv) It helps in keeping a check on wastage and costs.
 (v) It helps in developing a sense of belonging.
 MAJOR FACTORS TO CONSIDER IN DISCIPLINE: SERIOUSNESS OF THE
PROBLEM, DURATION OF THE PROBLEM, NATURE OF THE PROBLEM
AND A FEW OTHERS

 When all the employees follow the rules and regulations of the company, the question of indiscipline does not arise. Some
employees fail to accept the norms of responsible-employee behavior, thus calling for disciplinary action.
 To be fair and equitable the following factors need to be analyzed:

 1. Seriousness of the Problem:

 The manager must assess how serious is the indiscipline. For example, sexual harassment is more serious than late coming.

 2. Duration of the Problem:

 It must be known for how long the problem continues or how often this happens. First time offence may be less serious than
subsequent offences of longer duration.
 3. Nature of the Problem:

 The pattern of the problem calls for more attention. It must be known whether it is a part of emerging problem or a continual
problem. Continual problem is a serious one.
 4. External Influence:

 Sometimes a disciplinary problem may arise which is external to the employee. For example, an employee may fail to appear
for an important meeting or performance appraisal due to some accident.
CONT…
 5. Degree of Familiarity:
 The organization with formal written rules governing the employee conduct is more justified
in strictly enforcing disciplinary action taken than the organization where the rules of conduct
are informal or vague.
 6. Disciplinary Practices:
 There must be well laid out procedure in assessing disciplinary problems. Equitable treatment
must take into consideration the previous actions taken against the employees for similar type
of disciplinary violations.
 7. Management Support:
 When the affected employee takes the issue to higher authorities, the manager must be having adequate
reasons/data to defend his actions. The disciplinary action is not likely to carry weight if the violators
believe that they can challenge the manager’s decisions.
 MAJOR TYPES:

 Type # 1. Positive Discipline:

 Positive discipline in a business is an atmosphere of mutual trust and common purpose in which all
employees understand the company rules as well as the objectives and do everything possible to support
them.
 Any disciplinary program has, as its base, that all of employees have a clear understanding of exactly
what is expected of them. This is why a concise set of rules and standards must exist that is fair, clear,
realistic and communicated.
 Discipline takes the form of positive support and reinforcement for approved actions and its aim is to
help the individual in moulding his behaviour and developing him in a corrective and supportive manner.
Once the standards and rules are known by all employees, discipline can be enforced equitably and fairly.
A FEW GUIDELINES FOR ESTABLISHING A CLIMATE OF POSITIVE
DISCIPLINE ARE GIVEN BELOW:

 i. There must be rules and standards, which are communicated clearly and administered fairly.

 ii. Rules and standards must be reasonable and should be communicated so that they are known and understood by all
employees. An employee manual can help with communicating rules.
 iii. While a rule or a standard is in force, employees are expected to adhere to it.

 iv. Even though rules exist, people should know that if a personal problem or a unique situation makes the rule
exceptionally harsh, the rule may be modified or an exception be granted.
 v. There should no favourites and privileges be granted only when they can also be granted to other employees in similar
circumstances.
 vi. Employees must be aware that they can and should voice dissatisfaction with any rules or standards they consider
unreasonable as well as with working conditions they feel hazardous, discomforting or burdensome.
 vii. Employees should understand the consequences of breaking a rule without permission.

 viii. Employees should be consulted when rules are set.

 ix. There should be recognition for good performance, reliability and loyalty. Negative comments, when they are
necessary, will be accepted as helpful if employees also receive feedback when things go well.
 TYPE # 2. NEGATIVE DISCIPLINE:

 Generally, negative discipline is interpreted as a sort of check or restraint on the freedom of a person.
Discipline is used to refer to the act of imposing penalties for wrong behaviour.
 If employees fail to observe rules, they are punished. The fear of punishment puts the employee back on
track.
 “Discipline is the force that prompts an individual or a group to observe the rules, regulations and
procedures which are deemed to be necessary to the attainment of an objective”.
 TYPE # 3. SELF DISCIPLINE AND CONTROL:

 Behavioural scientists view discipline as self-control to meet organizational objectives.

 Megginson clarified the term thus- “By self-discipline we mean the training that corrects moulds and
strengthens.
 It refers to one’s efforts at self-control for the purpose of adjusting oneself to certain needs and demands.

 This form of discipline is raised on two psychological principles.

 First, punishment seldom produces the desired results. Often, it produces undesirable results.

 Second, a self-respecting person tends to be a better worker than one who is not”.
 TYPE # 4. PROGRESSIVE DISCIPLINE:

 The concept of progressive discipline states that penalties must be appropriate to the violation.

 If inappropriate behaviour is minor in nature and has not previously occurred, an oral warning may be
sufficient.
 If the violation requires a written warning, it must be done according to a procedure. After written
warnings, if the conduct of the employee is still not along desired lines, serious punitive steps could be
initiated.
 In case of major violations such as hitting a supervisor may justify the termination of an employee
immediately.
 In order to assist a manager to recognize the proper level of disciplinary action, some firms have
formalized the procedure.
 THE RED HOT STOVE RULE:

 Without the continual support of the subordinates, no manager can get things done. But, disciplinary action against a
delinquent employee is painful and generates resentment on his part. Hence, a question arises as to how to impose discipline
without generating resentment? This is possible through what Douglas McGregor called the “Red Hot Stove Rule”, which
draws an analogy between touching a hot stove and undergoing discipline.
 According to the Red Hot Stove rule, disciplinary action should have the following consequences:

 (i) Burns Immediately:

 If disciplinary action is to be taken, it must occur immediately so the individual will understand the reason for it. With the
passage of time, people have the tendency to convince themselves that they are not at fault.
 (ii) Provides Warning:

 It is very important to provide advance warning that punishment will follow unacceptable behaviour. As you move closer to
hot stove, you are warned by its heat that you will be burned if you touch it.
 (iii) Gives Consistent Punishment:

 Disciplinary action should also be consistent in that everyone who performs the same act will be punished accordingly. As
with a hot stove, each person who touches it is burned the same way.
 (iv) Burns Impersonally:

 Disciplinary action should be impersonal. There are no favourites when this approach is followed.

 (v) Commensurate with the gravity of misconduct.

 EMPLOYEE DISCIPLINE – CAUSES OF INDISCIPLINE:
ORGANIZATIONAL, INDIVIDUAL AND ENVIRONMENTAL
FACTORS

 The important causes of indiscipline are analyzed under three heads:

 1. Organizational Factors

 2. Individual Factors

 3. Environmental Factors.

 1. Organizational Factors:

 i. Where the organization, while hiring the employees, fail to assess the traits of individuals like attitude,
obedience, tolerance and inquisitiveness, it may end up hiring employees who challenge any decision
made by the management. This may breed indiscipline.
 ii. Lack of code of conduct for employees has potential to disorient them thereby sowing seeds of
indiscipline.
 iii. Where an employee hired for a job for which he has neither aptitude nor attitude, he is sure to develop
ill-feelings. He may find the job uninteresting and do everything to evade responsibility.
CONT…
 iv. Ineffective leadership characterised by authoritarianism and incompetency, and distrustful
relations with employees fuel indiscipline among the employees.
 v. Indiscriminate use of penal provisions triggers reactionary group indiscipline.
 vi. Favouritism and nepotism practiced by supervisors vitiate discipline.
 vii. Divisive policies pursued by management and instituting unofficial spy network spoils the
work atmosphere thereby engendering indiscipline.
 viii. Biased performance evaluation on considerations of caste, creed, colour, gender, religion
and region promotes ill-feeling and a sense of injustice among employees which culminate in
indiscipline
 ix. Absence of grievance redressal mechanism frustrates employees thereby breeding indiscipline among
them.
 2. INDIVIDUAL FACTORS:

 Individual differences caused by education, experience, values, attitudes, beliefs, intelligence,

personality, etc., cause employees to behave differently in an organization. Therefore some individuals
conform to rules and standards of behaviour in much wider context than others.
 Individual features that lead to indiscipline behaviour are as follows:

 i. Individuals with non-conformist values tend to engage in indisciplined behaviour.

 ii. Every individual perceives reward and punishment differently and react to it accordingly. When the
reward is not commensurate with his expectation, he may feel frustrated and indulge in indiscipline.
 iii. Individuals differ in work ethics. Those with high ethical values tend to be committed and involved in
the jobs while those with low ethical values show alienation to their jobs and exhibit negative behaviour.
 3. ENVIRONMENTAL FACTORS:

 Since an organization is also one of the members of the society, discipline observed by the society
manifests in organizations. Indiscipline prevailing in family, educational institutions, political system,
religious institutions, break down of social control mechanism, etc., casts its ugly shadow on the
organizational climate.
KINDS OF PUNISHMENT: MINOR AND
MAJOR PUNISHMENT
 I. Minor Punishment:

 1. Oral Reprimand – When a superior officer verbally warns the employee committing the offence, he expresses that
he does not approve of his behaviour. For example, employee sleeping during working hours or found smoking in the
workplace.
 2. Written Reprimand – Manager writes up the warnings and mails it to the employee concerned. The employee is
called for explanation. A copy of his reply is sent to HR Department.
 3. Punitive Suspension – It is awarded for minor offenses. It may extend for a few days. Employee gets subsistence
allowance during the suspension period.
 4. Loss of Privilege – Some of the privileges like assigning interesting work, shift preferences, leave, flexi hours,
choice of machine etc., may be withdrawn for a given period.
 5. Fine – A deduction may be made from the pay for certain offences like damage to the goods, machines and property
of the company or for loss of money he has to account for.
 6. Transfer – An employee may be transferred to a far off place or to a different department for the offence committed.
It is usually awarded by companies or institutions operating with a network of branches. Government institutions
practise this type of punishment.
 II. MAJOR PUNISHMENT:

 1. Pay cut – Cutting employee’s pay for offences relating to damage or loss of property. The loss is
recovered from the pay of the employee.
 2. Demotion – When the employee proves himself to be unfit for the present job he is holding, he is
downgraded to a lower job carrying lower pay and responsibilities. It has a serious implication on the
employee’s morale and motivation.
 3. Suspension pending enquiry – It is awarded for serious offence. His regular wages are withheld during
the period. The punitive suspension may extend for a longer period say several months till the enquiry is
completed. Employee gets subsistence allowance during the suspension period.
 4. Discharge – It is awarded for the gravest offence involving integrity, moral turpitude, etc. There is a
stigma attached to the dismissal and he may find it difficult to get employment elsewhere.
 THERE ARE FOUR GENERAL TYPES OF DISCIPLINARY ACTIONS AVAILABLE
WHEN EMPLOYEES FAIL TO MEET EXPECTED LEVELS OF PERFORMANCE OR
CONDUCT:

 1. Verbal Counseling:

 This is generally the first step of the disciplinary actions taken against an erring employee. An employee
might receive several verbal warnings before progressing to the next step of the disciplinary procedure.
However, for a serious problem, managers might skip this step. Verbal warnings should always be done
calmly, objectively and privately.
 It is a good idea to have a second manager or officer present during the verbal counseling as a witness.
Verbal counseling sessions should be documented by a formal memo or informal note in the employee’s
personnel file.
 WRITTEN WARNING:

 This step is generally preceded by a verbal warning.

 The manager or supervisor should meet with the employee and his representative (if applicable) as in a
verbal counseling session, but the employee should be given and allowed to review a formal written
warning. As with verbal counseling, a second manager can be present as a witness.
 The written warning should have a place for the employee to sign, acknowledging that he or she has
received the warning, regardless of whether he or she agrees with the contents of the warning.
 If the employee refuses to sign, another manager or supervisor should be called as a witness to observe
that the employee has been presented with the warning and refused to sign it, and that witness should
sign the warning.
 AN ADEQUATE WRITTEN WARNING SHOULD INCLUDE, AT A
MINIMUM, THE FOLLOWING ELEMENTS:

 1. The date of the warning

 2. The employee’s name

 3. The name of the manager or s

 4. A statement depicting the details of the misconduct or inadequate performance of the employee

 5. The date of the misconduct or poor performance (if appropriate)

 6. A signature line for the manager or supervisor

 7. A signature line for the employee

 8. A signature line for a witness, if the employee refuses to sign

 9. A formal “action plan,” depending upon the nature and severity of the offense. upervisor administering
the warning
 A FORMAL DISCIPLINARY ACTION PLAN MAY INCLUDE THE
FOLLOWING ADDITIONAL ELEMENTS, NAMELY:

 i. A statement of the policy, rule, or practice that was violated.

 ii. The steps which the employee agrees to follow in order to correct the problem or meet the desired
level of performance, attendance, or behaviour.
 iii. Any commitments of assistance or support that the manager or supervisor has made.

 iv. The time frame to be followed in achieving the goal of improved performance, attendance, or
behaviour.
 v. The consequences that will occur if the performance, attendance, or behaviour is not improved within
the specified time frame.
 3. SUSPENSION:

 This may range from one day to two weeks or more, depending upon the circumstances, and is almost
always unpaid. In unusual circumstances, some employers will place employees on one day of paid
“decision-making” leave, as a way of encouraging the employee to think about the future of his
employment.
 Paid suspensions, however, can be perceived as a “reward” for poor behaviour, and may therefore have
an adverse effect. For this reason, most employers prefer unpaid suspensions.
 Some employers will progress immediately from the first suspension to termination for the next offense,
while others will attempt to correct the employee’s performance or behaviour with multiple suspensions
of increasing length (e.g., 1-day, 3-day, 5-day, 10-day, etc.). As a general rule, each suspension should be
longer than the last, with termination as the final result.
 4. TERMINATION:
 Before terminating an employee, a manager should review the personnel file and all relevant documents
in order to determine if the termination is appropriate — and defensible in a subsequent lawsuit — given
the facts and circumstances. In addition, he should also ensure that similarly situated employees have
been treated similarly in the past. Some behaviour warrants automatic dismissal.
 These include those of:

 i. Violent behaviour or threats of violence

 ii. Drug and alcohol use on duty

 iii. Carrying a weapon on company property

 iv. Disregarding safety rules and regulations

 v. Theft, destruction of company property, or falsifying documents

 vi. Insubordination

 vii. Abandonment of job (no call, no show for three consecutive days).
 MISCONDUCT

 The concept of misconduct is a general concept and is not confined to labour-management relations
only.
 Misconduct is a specific word with specific connotation and it is difficult to lay down any general
rule in respect of this problem.
 Under the Indian Penal Code and other special and local laws, some acts or omissions are offences
for which a person can be punished by the sovereign power of state. These offences or acts are
considered to be prejudicial to the interests of the society in general and, therefore, they are
prohibited by law.
 There ',re however, various other organisations such as professional bodies, clubs and corporations,
and anyone who wants to be a member of such body, for availing of the advantages and facilities
provided by such body, is also required to act under certain rules and subject to certain discipline.
 If he does anything in violation of rules or any act inconsistent with his position, he is liable to lose
the advantages and facilities of the association with that society or organisation. Any such act is,
therefore, generally called a "Misconduct". (B.R. Ghaiye, "Misconduct in Employment", Eastern
Book Company, 1982 P. 59).