Need for a grievance procedure: grievance procedure is necessary for any organization due to the following reasons:

1. Most grievances seriously disturb the employees. This may affect their morale, productivity and their willingness to cooperate with the organization. If an explosive situation develops, this can be promptly attended to if a grievance procedure handling procedure is already in the existence.

2. It is not possible that all the complaints of the employees would be settled by first time supervisors, for these supervisors may not have had a proper training for the purpose, and they may lack authority. Moreover, there may be presently conflicts and other causes as well.

3. It serves as a check on the arbitrary actions of the management because the supervisors know that employees are likely to see to it that their protest does reach the higher management.

4. It serves as an outlet for employee gripes, discontent and frustrations.

5. The management has complete authority to operate the business as it sees fit subject, of course, to its legal and moral obligations and the contracts it has entered into with its workers or their representative trade union. But if the trade union or the employees do not like the way the management functions, they can submit their grievance procedure in accordance with the procedure laid down for that purpose.