In companies there must exist a formal grievance procedure. In most non-unionized organizations there is frequently no provisions dealing with the grievances. This makes in uncomfortable when a dispute arises within the company. A typical grievance system consists of 3 steps. Firstly the aggrieved individual discusses the problem with the immediate supervisor. Even if there is no basis for a complaint made it should still be given adequate attention. A settlement must be presented. Secondly, if no settlement is presented by the supervisor the individual must without fear bring the problem to the next stage of management. Thirdly, if needed the problem should be brought to the human resource manager, the general manager or another highly placed executive. Fourthly, if there hasn’t been an agreement at this point of the problem being stated the management; the individual can submit the grievance to a third psrty for arbitration. Arbitration is a better alternative than legal action in cases where failure to resolve a grievance might lead to litigation. The arbitrator’s decision could then become the final.  This is how the grievance procedures are established.