Impact of Employee Grievance Management on Organizational Performance

Abstract

Purpose: This paper examined the impact of employees' grievance management on organizational performance. The paper derives from conceptual points of view in available literatures that there is a coefficient relationship between the variables: employees' grievances, and organizational performance; hence, effective management of employee grievance is essential for harmonious workplace relationship, team spirit, employees' loyalty and commitment, as well as improved organizational productivity and performance. In the face of this necessity, there is still a relative lack of, or poor employee grievance management in organizations thereby giving rise to negative organizational outcomes such as reduced productivity, absenteeism, violation of orders, indiscipline and reduced quality of work. The study thus aims to show how employees' grievances directly impact on performance. Methodology: In doing this, the study is designed using secondary data, analyzed in line with content analysis model and developed on the theoretical foundation of Rahim and Bonoma’s grievance management model. The analysis is anchored on two research objectives and research questions, developed to test recurrent hypotheses. Findings: From the findings, the study concludes that effective employee grievance management is vital for effective harmonious management-labour relationship which helps to enhance organizational performance. Recommendations: It is recommended among others that grievances should be handled routinely through set-up structures designed exclusively for that purpose in order to drastically reduce employees' grievances in the workplace.