The aim of the study is to find whether the grievance handling mechanism ensures that employee’s problems are recognized and appropriately reviewed in a prompt and timely manner. The grievance mechanism acts as a foundation for a harmonious and healthy relationship between employee and employer. The grievance mechanism ensures a fair and just treatment of employee’s concerns and prompt resolution of grievances without discrimination, coercion, restraint or reprisal against any employee who may submit or be involved in a grievance. Grievance is any discontent or dissatisfaction that affects organizational performance. As such it can be stated or unvoiced, written or oral, legitimate or ridiculous. If the dissatisfaction of employees’ goes unattended or the conditions causing it are not corrected, the irritation is likely to increase and lead to unfavorable attitude towards the management and unhealthy relations in the organization. The formal mechanism for dealing with such worker’s dissatisfaction is called grievance procedure. All companies whether unionized or not should have established and known grievance methods of processing grievances. The primary value of grievance procedure is that it can assist in minimizing discontent and dissatisfaction that may have adverse effects upon co-operation and productivity. A grievance procedure is necessary in large organization which has numerous personnel and many levels with the result that the manager is unable to keep a check on each individual, or be involved in every aspect of working of the small organization.